HIGH-GRADE GOLD DISCOVERY IN MOZAMBIQUE CHIFUNDE GOLD PROVINCE - - PowerPoint PPT Presentation

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HIGH-GRADE GOLD DISCOVERY IN MOZAMBIQUE CHIFUNDE GOLD PROVINCE - - PowerPoint PPT Presentation

1 1 HIGH-GRADE GOLD DISCOVERY IN MOZAMBIQUE CHIFUNDE GOLD PROVINCE DISCOVERY: Potentially one of the most exciting African Gold deposit discoveries in recent years KOBUS BADENHORST INDEPENDENT CONSULTANT GEOLOGIST 2 DISCLAIMER -


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SLIDE 1

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HIGH-GRADE GOLD DISCOVERY IN MOZAMBIQUE

CHIFUNDE GOLD PROVINCE DISCOVERY: “Potentially one of the most exciting African Gold deposit discoveries in recent years” KOBUS BADENHORST – INDEPENDENT CONSULTANT GEOLOGIST

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SLIDE 2

DISCLAIMER - IMPORTANT NOTICE

By accepting this confidential presentation (the “Presentation Materials”), and in consideration of it being made available to the you, you agree to keep strictly confidential the information contained in it and any information otherwise made available to you by African Lion Resources Ltd (the “Company” or “ALR“)), whether orally or in writing, in connection with the proposed issue of convertible loan notes by the Company to a limited number of qualified investors. If you receive this Presentation on behalf of a corporation, the information contained herein may only be disclosed to such of the recipient corporation’s directors, officers

  • r employees as are required to review it for the purpose of deciding on investigating further the possibility of investing in the Company. This Presentation has been provided to each recipient at their request, solely

for their information, and may not be reproduced, copied, published, distributed or circulated, to any third party, in whole or in part, or published in whole or in part for any purpose, without the express prior consent of the Company. This Presentation is a presentation of information about the Company’s activities as the date of the Presentation. It is information in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate. The information has not been independently verified and is subject to material updating, revision and further amendment. The sole purpose of this Presentation is to provide information on the Company to those parties who have expressed an interest in investigating the possibility of investing in the Company, in order that they may assess whether or not they wish to proceed with a more detailed review of the matters discussed in this Presentation. This Presentation and its contents do not, and are not intended to, constitute, or form any part of, an offer for sale, prospectus, invitation to subscribe for or purchase or otherwise acquire transferable securities in the Company within the meaning of sections 85 and 102B of the Financial Services and Markets Act 2000, as amended (“FSMA”), nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract or commitment to acquire any securities. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of the Company, or any of its respective affiliates, any of their respective directors, officers, employees, agents, advisers or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation No reliance should be placed on the accuracy, completeness or fairness of the information or opinions in this Presentation, and no responsibility or liability is accepted for any such information or opinions, or for any errors or omissions. No person has been authorized to give any information or make any representations other than those contained in this Presentation and, if given and/or made, such information or representations must not be relied upon as having been so authorized. The contents of this Presentation are not to be construed as legal, financial or tax advice. Each prospective investor should contact his, her or its own legal adviser, independent financial adviser

  • r tax adviser for legal, financial or tax advice.

The information contained in this Presentation is being supplied as a guide only, and prospective investors must make their own investigations and satisfy themselves as to the condition of the Company and the accuracy and completeness of the statements contained herein. This Presentation should not be considered a recommendation by the Company or any of its respective directors, officers, employees, agents, advisers

  • r any other person in connection with any purchase of, or subscription for, securities of the Company. No liability is or will be accepted for such information by the Company or any of its respective directors,
  • fficers, employees, agents or advisers or any other person.

This Presentation contains forward-looking statements and has been based upon a number of assumptions, forecasts and projections which by their nature are forward-looking. These statements relate to the future prospects, developments and business strategies of the Company. Forward-looking statements may be identified by the use of such terms as "anticipate", "assume", “believe”, “could”, “envisage”, “estimate”, "expect", "forecast", “potential”, “intend”, “may”, “plan”, "should", “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and beliefs, and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If

  • ne or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Company’s actual results may vary materially from those expected, estimated or projected. Given these risks

and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements speak only as at, and on the basis of information known at, the date of this Presentation. Forward looking information in this Presentation includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward- looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this Presentation are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this Presentation, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. Neither this Presentation nor any copy of it may be taken or transmitted into the United States of America or distributed directly or indirectly, in the United States of America or to any resident thereof except in compliance with U.S. securities laws. The technical and scientific information in this document was reviewed and approved by Andy Friese, P.Geo PhD, Competent Person under the Canadian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and a Qualified Person under National Instrument 43-101.

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SLIDE 3

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African Lion Resources Management Team

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  • MR. COBUS VAN WYK – Chairman
  • Mr. van Wyk is an extensively experienced exploration and mining entrepreneur active in Mozambique since
  • 2004. He directly contributed to securing the current project’s concessions via extensive contacts in the

Mozambique government and business community. Mr. van Wyk has personally identified prospective areas and done due diligence on 1,800 concessions. His mining development experience in Mozambique includes Tantalite, Coal, Diamonds, Gold, Rubies, Graphite and Heavy Mineral Sands. Mr. van Wyk completed his MBA from the University Of Wales. He has over 20 years of experience in the financial markets and corporate finance and 20 years of experience as director of listed and unlisted companies.

  • MR. FRANCO JORDAAN - Chief Executive Officer
  • Mr. Franco Jordaan is an expert in all aspects of financial accounting, management reporting, systems, corporate

governance, treasury, marketing and projects. He has worked for major players including Impala Platinum, Eastplats, Trafigura and Vedanta, and has experience with multiple commodities (Platinum group metals, Iron ore, Chrome, Copper Zinc, Lead, Silver). He has been involved in mining, exploration processing and refining since 2001, and has first-hand experience of doing business in Mozambique, Angola, DRC, Namibia and South Africa.

  • Mr. Jordaan completed his BCom hons. degree, CIMA advanced diploma, PMP and CCP

.

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SLIDE 4

Overview

  • Private Canadian company raising US$ 3.5 million at a pre-money value of US$ 5 million

(US$0.35/share)

  • Chifunde Gold Project in Mozambique with a total area of 189 km2 (18,900 hectares)
  • High Grade Shear Zone hosted Lode Gold Deposit with grades of up to 63 g/t Au
  • Hard rock mineralization with at least 2.5 km strike and open at depth
  • Shear Zone and associated ramp structures over 60 m wide
  • 4 artisanal pits on the property currently producing an estimated 25-30 kg (800 oz) Au per

month combined (rate of 9,600 oz per year)

  • Additional unexploited thrust zone-hosted deposit with grades of up to 55 g/t Au
  • Exploration target of 2 to 5 million ounces Au resource
  • Undertaking a 7,690 m drilling program to delineate an initial resource and prove mineralisation

in additional to blue-sky targets

  • Potential production from bulk samples expected within one to three years with annualized

rate of more than 25,000 oz per annum

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SLIDE 5

Capitalization Structure

  • To date, ALR has been financed via a US$ 2 million interest free shareholder loan
  • The shareholder will convert US$ 1.5 million of the loan into equity concurrent with the current

fundraising, and included in the US$ 5 million pre-money valuation

  • The remaining US$ 0.5 million will only be repaid following completion of the Phase 2 exploration

program and a subsequent equity financing (no funds from the current financing will be used to repay any loan amounts)

5 Current Post USD 3,5m Placement Post USD 5m Placement Shares Outstanding: 10,000,000 20,000,000 24,285,714 Options Warrants Outstanding: Debt Outstanding: US$ 2,000,000 US$ 500,000 US$ 500,000 Debts to be Converted at Placing Price: US$ 1,500,000 Pro-Forma Debt: US$ 500,000 Share Issued for Debt Conversion: 4,285,715 4,285,715 Shares Outstanding post Debt Conversion: 24,285,715 28,571,429 Post-Conversion Valuation: US$ 5,000,000 US$ 8,500,000 US$ 10,000,000 Placing Price per Share: US$ 0,35 US$0,35 US$0,35

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SLIDE 6

Potential Share Price (Post-IPO and Deployment of Funds)

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Implied Share Price (US$/Share) Assuming Subsequent US$ 20m IPO Fundraise

Note: Based on Average ex Hi/Lo multiples. Assumes (i) current financing raises $3.5m at a pre-money value of $5m (post $1.5m loan conversions), (ii) $20 m is raised at IPO at a 40% uplift to fund bulk sample mining capex and initial exploration phase 3 requirements, (iii) all funds are deployed (no cash value remaining in the Company), and (iv) ALR’s interest in the Chifunde project remains at 80%. 0.34 0.68 1.02 1.36 1.70 2.04 0.65 1.31 1.96 2.62 3.27 3.93 1.50 2.99 4.49 5.98 7.48 8.98 2.36 4.71 7.07 9.42 11.78 14.14 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00

1M oz Resource 2M oz Resource 3M oz Resource 4M oz Resource 5M oz Resource 6M oz Resource Implied Share Price (US$)

Explorer / Developer: M&I + Inf Resources Explorer / Developer: M&I Resources Producer: M&I + Inf Resources Producer: M&I Resources

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SLIDE 7

2020 Gold Update

  • The gold price rose by 18% in 2019, its best annual performance since 2010, and is up another

14% in 2020 (to 22/05/2020)

  • Uncertainty around short and long-term economic impacts of COVID-19 has led to sharp volatility

across many assets while safe-havens such as US treasuries and gold have seen strong inflows

  • Market uncertainty, the improved opportunity cost of holding gold as yields move lower, the Fed’s

easing cycle and potentially inflationary fiscal stimulus policies are expected to provide continued support for gold

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600 800 1,000 1,200 1,400 1,600 1,800 2,000 2008 2010 2012 2014 2016 2018 2020

USD/oz

Gold spot price in US dollars, London PM fix

Source: Reuters Datastream, LBMA, World Gold Council (Data to 22/05/2020)

40% 60% 80% 100% 120% 140% 160% Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20

Gold price vs major stock indices

FTSE 100 S&P 500 DJI Gold

Source: Reuters Datastream, LBMA, World Gold Council, Yahoo! Finance (Data to 22/05/2020)

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SLIDE 8

Mozambique Overview

  • Politically stable & multi-party democracy
  • Resilient GDP growth, currently estimated at 2.2% in 2020 and

4.7% in 2021(1)

  • US$ 1.34 billion of World Bank MIGA guarantees issued in

Mozambique

  • Good Infrastructure: Roads, Rail Ways and Ports
  • Multi-billion-dollar investments in mining, oil and gas.
  • IMF has indicated that Mozambique will be the biggest

economy in Africa within the next 15-20 years

  • Just the royalties on the gas will be 3-4 times the current GDP
  • Mozambican Mineral Resources governed by Mining Law 2014
  • Transparent Mining Licensing System (Cadastre System)
  • Prospecting and Exploration Licenses valid up to 5 years and

can be extended for 3 more years

  • 6% Production Tax
  • Mining concessions valid for 25 years and can be extended for

a further 25 years ALR Gold Project

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(1) International Monetary Fund, World Economic Outlook Database, April 2020

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SLIDE 9

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  • Significant mineral discoveries: Graphite, Rubies, Gold,

Coal, Heavy Mineral Sands, Titanium, Tantalite, Vanadium, Lithium, Uranium, Phosphate, Iron Ore, Marble, Kaolin, Copper

  • Second largest gas discovery in the world
  • Financial Times, June 2018: “Mozambique to become a

gas supplier to world”

  • Estimated 5 trillion cubic metres of natural gas in the

Rovuma Basin

  • Multi-billion dollar investments from various

companies

Mozambique – Favourable Resources Investment Environment

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SLIDE 10

Chifunde Gold Project

  • Concession 7113L/9664C, with a total area of

189 km2 (18,900 hectares)

  • ROFR on three adjacent concessions
  • License held through joint venture company

with 80% ALR / 20% Mozambique partner

  • High grade prolific shear zone hosted lode gold

Primary Deposit in the southeast section of the license yielding grades of up to 63 g/t Au

  • Additional unexploited deposit (Nkantha)

discovered in the northern section of the project with samples yielding up to 55 g/t Au

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  • 37 target zones identified, including 11 major target zones
  • Exploration target of 2-5 million ounces Au
  • Five drill holes were completed prior to pausing the drill program in late November due to the

intensifying seasonal rains ➢ Results delayed due to large sample requirement (to ensure accuracy given large nugget effect) and Covid-19 related delays

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SLIDE 11

Chifunde Primary Deposit – Shear-Hosted Lode Gold

  • High Grade Shear Zone hosted Lode Gold Deposit located in the south east section of the license
  • Grab samples have yielded grades of up to 63 g/t Au (confirmed with test work at SGS Laboratories)
  • Hard rock mineralization is open at depth and continuous >2,500 m strike
  • Shear Zone and associated ramp structures are over 60 m wide
  • Artisanal miners currently active in 4 large pits, producing an estimated total of 25-30 kg Au per

month (rate of 9,600-12,000 oz per year)

  • Three holes were drilled in the Chifunde Pit 1 artisanal mining area in late 2019
  • Main Prolific Shear Zone hosted gold deposits include: Ashanti Belt (Ghana),Blanket – Vubachikwe

(Zimbabwe), Kalgoorlie (Australia), Kirkland Lake (Canada)

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5 - 8 m Shear Zone 60 m Ramp

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SLIDE 12

Chifunde Gold Project – Primary Deposit

Main Hard Rock Deposit Artisanals are mining hard-rock along a strike length of over 2,500m

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150m in length & 80m in width 70m deep into the hard rock Ore is carried out by hand

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SLIDE 13

Chifunde – Nkantha Deposit

  • Located 7,5 kilometers to the North west of

the primary Deposit

  • Unexploited thrust zone-hosted gold

deposit (Nkantha) discovered in the northern section of the project

  • The thrust zone is exposed on the western

banks of a prominent N/S-trending river, draining across the central sector of the project area from north to south and attains a true width of 48.5 m

  • Grab sample taken from the main

metasomatic vein in the centre of the thrust zone yielded 55.1 g/t Au

  • Thrust zone consists of 5 major metasomatic

sub-units up to 1m thick

  • Two exploratory holes were drilled in late

2019 ➢ Results are delayed due to the size required by the lab and Covid-19 related delays

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Thrust Zone outcrop

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SLIDE 14

Strong Relationship with Local Community and Miners

  • ALR has actively engaged directly with the

local community and the local mining association, representing the interests of the artisanal miners

  • Discussions include plans for the project,

potential social or community requirements and mutually beneficial collaboration

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SLIDE 15

What Don’t We Know? What Do We Want to Prove?

  • What is the potential size of the primary

deposit resource?

  • Are all 37 identified target zones mineralized?
  • Is there more significant mineralization within

the 11 major target zones compared to the minor ones?

  • To what depth are the shear zones mineralized?
  • What is the average grade of the deposit, that

can be mined – Taking dilution into account?

  • What is the overall size of the deposit across

the entire concession?

  • So far only the N/S and E/W Shear Zones have

been explored. Is there mineralization within the NW/SE Shear Zones?

  • What is the full extent of the Thrust Zone in the

northern section of the Concession?

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SLIDE 16

What We Already Know!

  • The deposit is characterized as a nugget gold lode deposit with no refractory gold
  • Geophysics for the area indicates the multitude of shear zones across the 18,000 hectares
  • Using a structural interpretation model we identified 37 target zones – with minor and major

targets

  • Target zone 1 extends ~2,5 km along the N/S and E/W Shear Zone cluster
  • Currently, all the N/S and E/W shear zones are mineralized
  • Shear Zones are mineralized from surface and are open at depth
  • Pit 1 is exposed at surface with a length of 150 m and a width of 80 m
  • Local miners have mined the pit 1 area to a current depth of 70 m below surface with 30 m long

lateral shafts

  • Grades within the pit 1 area range up to 63 g/t at 50m depth
  • The width of a Shear Zone is between 5-10 m with associated ramp structures of 30 m on both

sides

  • Local miners produce 25-30 kg gold per month

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SLIDE 17

Exploration Phase 1 - Completed

1. Community Protocol and Consultation 2. Environmental License 3. Field Mapping 4. Soil Sampling and Pitting 5. Lineament Analysis 6. Satellite Interpretation 7. Helicopter Aeromagnetic and Radiometric Survey 8. Geophysical Analysis 9. Drilling Target Report

  • 10. Recognisance Drilling (877 meters)
  • 11. Applied for Mining Concession (25 yrs

+ 25 yrs)

  • 12. NI43-101 Report

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SLIDE 18

Exploration Phase 2 (Commenced)

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  • 1. Drilling – 7,690 m
  • 70% focused on primary deposit target

zone to delineate an initial resource (target of 200k to 500k Au)

  • 30% focused on other 10 identified target

zones to prove mineralization and identify possible grades for additional resource upside, outside of main deposit pit area

  • 2. Lab. Analysis – 2,105 samples (21 tonnes)
  • Large samples to be provided to ensure

accuracy given large nugget effect

  • Samples to be processed through Knelson

concentrator and pulp leaching

  • 3. NI43-101 Report update with programme

results and initial resource

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SLIDE 19

Exploration Phase 2 – Budget (15 Months)

Activity UOM Total Project

Geologists US$ 199 120 Drilling US$ 1 044 714 Laboratory Analysis US$ 1 752 944 Camp and Corporate Overhead US$ 274 250 Professional Fees US$ 228 972

Total US$ 3 500 000

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SLIDE 20

Exploration Phase 3

1. Drilling – 20,020 m 2. Laboratory Analysis – 5,577 samples (55 tonnes) 3. NI43-101 Resource 4. Scoping Study 5. Environmental Impact Study 6. Plant and Pit Design

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SLIDE 21

Bulk Sampling Phase 1

  • Bulk samples processed through 80 tph processing plant
  • Annualized production of more than 25k oz per annum (US$ 28 million of revenue at a US$ 1,400

Au price)

  • Estimating annual operating expenses (including royalty) of US$ 8 million (US$ 316/oz)
  • Modest US$ 13 million capex and 4-month construction
  • Based on conservative estimates of 4 g/t Au grade and 70% recovery
  • Potential to fast-track with a 40 tph plant and estimated capex of US$ 7,8 million with operating

expenses (including royalty) (US$ 437/oz)

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Knelson Concentrator Cone Crusher Ball Mill Gemini Table

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SLIDE 22

Estimated Timeline

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Activities H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023

Phase 2 Drilling 7,690 m Update Technical Report Maiden Resource Statement IPO & Listing Phase 3 Drilling 20,020 m Update Resource Statement Scoping Study Procurement of Plant & Equipment Plant Construction & Commissioning Production Gold Sales

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SLIDE 23

African Gold Comparables

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  • The Company is targeting resources of 2 to 5 million oz Au and initial production within three years

EV Reserves M&I Resources M&I + Inf Resources Grade Production Reserves M&I Resources M&I + Inf Resources Production

(US$ millions) (M oz) (M oz) (M oz) (g/t) (k oz) (US$/oz) (US$/oz) (US$/oz) (US$/oz)

Producers Median 300 1.3 2.4 3.1 2.0 154.0 303.1 176.5 140.7 2,310.9 Average 468 2.3 4.6 7.1 2.4 154.5 339.4 179.3 114.6 2,838.9 Average ex Hi/Lo 372 1.7 3.1 4.9 2.3 154.8 327.2 181.0 114.9 2,598.3 Explorers and Developers Median 45 0.0 0.6 2.2 1.9

  • 64.1

58.2 20.4

  • Average

55 0.7 1.5 2.3 3.3

  • 94.6

51.0 28.2

  • Average ex Hi/Lo

51 0.4 1.1 2.1 2.7

  • 69.8

50.3 26.1

  • Notes:

Reserves, resources and production on a net basis Currency Rate Assumptions: CAD1 = USD0.71; GBP1 = USD1.2; AUD1 = USD 0.4 Share Prices as of 25/05/2020 Producers (12 companies): Explorers & Developers (13 companies): Sources: Company filings, presentations and websites, Morningstar

Enterprise Value /

Avesoro Resources Inc, Caledonia Mining Corp PLC, Galiano Gold Inc., Golden Star Resources, Hummingbird Resources PLC, Pan African Resources PLC, Perseus Mining Ltd, Robex Resources Inc, Roxgold Inc, Shanta Gold Ltd, Teranga Gold Corp, West African Resources Ltd. African Gold Group Inc, AXMIN Inc, Cardinal Resources Ltd, Komet Resources Inc, Loncor Resources Inc, Oklo Resources Ltd, Orezone Gold Corp, Sarama Resources, Shanta acq. of Barrick Kenya Assets, Tanzanian Gold Corp, Thor Explorations Ltd, Tietto Minerals Ltd, Xtra-Gold Resources Corp.

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SLIDE 24

Potential Enterprise Value

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Implied Enterprise Value (US$M)

Note: Based on Average ex Hi/Lo multiples

21 42 63 84 105 125 40 80 121 161 201 241 92 184 276 368 460 552 145 290 434 579 724 869 300 600 900 1M oz Resource 2M oz Resource 3M oz Resource 4M oz Resource 5M oz Resource 6M oz Resource Implied EV (US$M) Explorer / Developer: M&I + Inf Resources Explorer / Developer: M&I Resources Producer: M&I + Inf Resources Producer: M&I Resources

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SLIDE 25

Potential Share Price (Post-IPO and Deployment of Funds)

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Implied Share Price (US$/Share) Assuming Subsequent US$ 20m IPO Fundraise

Note: Based on Average ex Hi/Lo multiples. Assumes (i) current financing raises $3.5m at a pre-money value of $5m (post $1.5m loan conversions), (ii) $20m is raised at IPO at a 40% uplift to fund bulk sample mining capex and initial exploration phase 3 requirements, (iii) all funds are deployed (no cash value remaining in the Company), and (iv) ALR’s interest in the Chifunde project remains at 80%. 0.34 0.68 1.02 1.36 1.70 2.04 0.65 1.31 1.96 2.62 3.27 3.93 1.50 2.99 4.49 5.98 7.48 8.98 2.36 4.71 7.07 9.42 11.78 14.14 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00

1M oz Resource 2M oz Resource 3M oz Resource 4M oz Resource 5M oz Resource 6M oz Resource Implied Share Price (US$)

Explorer / Developer: M&I + Inf Resources Explorer / Developer: M&I Resources Producer: M&I + Inf Resources Producer: M&I Resources

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SLIDE 26

Summary

  • Exciting high-grade gold prospect with 11 major targets identified,

including primary pit areas

  • Conducting maiden drilling program to delineate an initial primary pit

resource and prove additional blue-sky potential

  • Exploration target of 2 to 5 million ounces Au resource, within initial

resource target of 200k to 500k Au ounces following current Phase 2 drilling program

  • Planned production from primary pit within three years
  • Strong engagement and support from local community
  • Attractive entry point with large valuation upside

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SLIDE 27

Contact

Cobus van Wyk Phone: (Mobile): +27 (0) 82 490 1015 Email: cobus@africanlionresources.com

African Lion Resources Inc 82 Richmond Street East 1st Floor Toronto, ON M5C 1P1

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SLIDE 28

Additional Information

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SLIDE 29

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African Lion Resources Team

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  • DR. ANDREAS FRIESE – Non-Executive Technical Director (Geologist and Qualified Professional)

Dr Friese has been involved in the mining and exploration industry for the past 27 years. In 2006, he founded Terra Explora Consulting, based in Johannesburg, and has since been working as an independent consulting geologist on a wide range of mining and exploration projects across Africa and Southeast Asia. Dr Friese’s primary expertise and experience include a variety of geoscience disciplines, with main fields of interest and research being applied structural geology, economic geology, global palaeo/neotectonics and geodynamics of the Earth and their practical applications to mineral and groundwater exploration and target generation, in-mine geotechnical hazard assessment of open cast and underground mines, and project evaluation.

  • MR. FELICIO ZACARIAS - Chairman of the Board in Mozambique

Mr Zacarias is a highly respected and prominent figure in the Mozambican business arena. Mr Zacarias was a Governor of two different provinces with the highlight of his career being appointed as Minister of Public Works in Mozambique. Following his tenure as Minister, Mr Zacarias allocated all his time to the private sector. Mr Zacarias has more than 30 years experience in doing business in Mozambique and is an invaluable asset.

  • MR. GERHARD BURGER - Mine Manager
  • Mr. Gerhard Burger a highly experienced site manager. Practical, hands on experience on plant installation, knowledge and

proficiency of all machinery on a processing plant and mining site. Hands on participation with the training of locals. General supervision and overseeing of the onsite team to ensure the staff adhere to strict controls and procedures to ensure the project runs smoothly.

  • MR. KYLE LUSTED – Head of Geological Department

Mr Kyle Lusted has been the in-house Geologist for Regius Resources since April 2019. He obtained his Honours Degree in 2017 and Master’s Degree in 2019 from the University of Pretoria, both within the field of geology. Mr Kyle Lusted overseas all geological aspects of the projects run by Regius Resources Group and has experience in various commodities including gold, graphite and heavy mineral sands. Mr Lusted’s main field of interest and research is igneous and metamorphic petrology with a special focus on the formation and alteration of supracrustal ore bodies.

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SLIDE 30

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African Lion Resources Team (cont’d)

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  • MR. PAULO CINTRA - Mining Engineer
  • Mr. Paulo Cintra holds a degree in Mining Engineering with more than 25 years’ experience in production with a diverse mixture of

products and technologies, bringing valuable hands-on operations management. Experienced primarily in prospecting mineral processing and quarry exploration operations having worked in Portugal, Spain, Angola and Mozambique.

  • MR. KOBUS BADENHORST – Independent Geologist

Mr Kobus Badenhorst obtained his BSC (Geology) in 1992 and BSC (Hons) (Geology) in 1993, both from the University of the Free State, South Africa. He has more than 20 years’ experience in the Exploration and Mining industry. Mr Badenhorst has been the Managing Director of GeoActiv (Pty) Ltd since 2007. He is involved in various projects for different commodities. Greenstone Stella Platinum; various Bushveld PGM projects; heavy mineral sands projects in South Africa West coast, Sri Lanka and Bangladesh; Postmansburg Iron Ore Projects; Zimbabwe Great Dyke PGM and Greenstone Gold; Zambia Cu; Mali Au etc.

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SLIDE 31

Chifunde Geology

  • Located within a geological environment

dominated by Mesoproterozoic, metamorphic rocks

  • Amphibolite gneiss of Mualadzi Group

(P2Dvl) traversed by N-S Shear Zone as well as interlinking NNE-SSW striking Shear Zone

  • Shear Zone system represents a ca. 200 km

wide structural corridor that runs parallel to the N-S striking Pan African Suture Zone between East and West Gondwana

  • Hard rock artisanal mining focussed on

quartz-sulphide veins associated with shear zones and sinistral strike-slip faults

  • Prolific Shear Zone hosted gold deposits

include:

  • Ashanti Belt (Ghana)
  • Blanket – Vubachikwe (Zimbabwe)

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  • Kalgoorlie (Australia)
  • Kirkland Lake (Canada)
slide-32
SLIDE 32

Geophysical Interpretation Map and Drill Targets

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slide-33
SLIDE 33

Planned Mining Extensions of Pit 1 – 600,000 Tonnes

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Length – 500 m, Width 35 m, Depth 20 m

slide-34
SLIDE 34

Bulk Sampling Phase 1 – Estimated Funding Requirement

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Knelson Concentrator

ITEM DESCRIPTION TOTAL COST US$

Total Capital Expenditure $13 114 406,49 Total site capital expenditure $12 766 441,45 Total camp capital expenditure $347 965,03 First 6 Month Operational Expenditure $1 466 496,12 Operational expenditure -Month 1 $168 071,67 Operational expenditure -Month 2 $168 071,67 Operational expenditure -Month 3 $186 843,33 Operational expenditure -Month 4 $189 783,33 Operational expenditure -Month 5 $346 505,46 Operational expenditure -Month 6 $407 220,66

PEAK FUNDING $14 580 902,61

slide-35
SLIDE 35

Total Capex: Bulk Sampling Phase 1

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CAPITAL EXPENDITURE ITEM DESCRIPTION TOTAL COST US$

Site Capital Expenditure $12 141 945,90 Plant $8 867 233,33 Yellow Machinery & Vehicles $2 453 408,60 Civils $149 206,45 Safety & Security $67 183,33 Site Office $36 213,33 Tools $22 166,67 Transport & Duties $546 534,18 Camp Capital Expenditure $317 965,03 Kitchen $9 800,00 Accommodation $46 800,00 Living area, boma and boardroom $26 993,33 Laundry area $5 500,00 Police and operator tented camps $59 810,00 General camp equipment $80 719,78 Transport and duties $88 341,92 Other $30 000,00 Share transfer, legal and tax expense $30 000,00 Contingency (5%) $624 495,55

TOTAL $13 114 406,49

slide-36
SLIDE 36

Bulk Sampling Phase 1 – Projected Income (US$1,400 /oz Au)

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ITEM DESCRIPTION YEAR 1 US$ YEAR 2 US$ YEAR 3 US$ TOTAL US$

Revenue $18 583 989,39 $37 167 978,77 $37 167 978,77 $92 919 946,94 Less: Royalties (6%) $1 115 039,36 $2 230 078,73 $2 230 078,73 $5 575 196,82 Less: Import VAT (16.5%) $3 066 358,25 $6 132 716,50 $6 132 716,50 $15 331 791,24 Plus: VAT Recovery (15%) $2 787 598,41 $5 575 196,82 $5 575 196,82 $13 937 992,04 Less: Operational expenditure $4 744 236,30 $5 962 993,35 $5 962 993,35 $16 670 223,00 Corporate Expenditure $591 350,97 $591 350,97 $591 350,97 $1 774 052,90 Corporate Salaries $415 800,00 $415 800,00 $415 800,00 $1 247 400,00 Office Expenditure $175 550,97 $175 550,97 $175 550,97 $526 652,90 Operational Expenditure $3 902 337,89 $5 038 427,46 $5 038 427,46 $13 979 192,81 Operational Salaries $766 150,00 $909 600,00 $909 600,00 $2 585 350,00 Operational Expenditure $3 136 187,89 $4 128 827,46 $4 128 827,46 $11 393 842,81 Sales Expenditure $24 631,43 $49 262,86 $49 262,86 $123 157,14 Gold refinery $9 631,43 $19 262,86 $19 262,86 $48 157,14 Gold transport cost to Rand Gold Refinery $15 000,00 $30 000,00 $30 000,00 $75 000,00 Contingency (5%) $225 916,01 $283 952,06 $283 952,06 $793 820,14

PROJECTED INCOME $12 445 953,88 $28 417 387,02 $28 417 387,02 $69 280 727,92

slide-37
SLIDE 37

Bulk Sampling Phase 1 – Projected Income (US$1,700 /oz Au)

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ITEM DESCRIPTION YEAR 1 US$ YEAR 2 US$ YEAR 3 US$ TOTAL US$

Revenue $22 566 272,83 $45 132 545,65 $45 132 545,65 $112 831 364,14 Less: Royalties (6%) $1 353 976,37 $2 707 952,74 $2 707 952,74 $6 769 881,85 Less: Import VAT (16.5%) $3 723 435,02 $7 446 870,03 $7 446 870,03 $18 617 175,08 Plus: VAT Recovery (15%) $3 384 940,92 $6 769 881,85 $6 769 881,85 $16 924 704,62 Less: Operational expenditure $4 744 236,30 $5 962 993,35 $5 962 993,35 $16 670 223,00 Corporate Expenditure $591 350,97 $591 350,97 $591 350,97 $1 774 052,90 Corporate Salaries $415 800,00 $415 800,00 $415 800,00 $1 247 400,00 Office Expenditure $175 550,97 $175 550,97 $175 550,97 $526 652,90 Operational Expenditure $3 902 337,89 $5 038 427,46 $5 038 427,46 $13 979 192,81 Operational Salaries $766 150,00 $909 600,00 $909 600,00 $2 585 350,00 Operational Expenditure $3 136 187,89 $4 128 827,46 $4 128 827,46 $11 393 842,81 Sales Expenditure $24 631,43 $49 262,86 $49 262,86 $123 157,14 Gold refinery $9 631,43 $19 262,86 $19 262,86 $48 157,14 Gold transport cost to Rand Gold Refinery $15 000,00 $30 000,00 $30 000,00 $75 000,00 Contingency (5%) $225 916,01 $283 952,06 $283 952,06 $793 820,14

PROJECTED INCOME $16 129 566,07 $35 784 611,38 $35 784 611,38 $87 698 788,83

slide-38
SLIDE 38

Mining Phase 1 – Flow Diagram: 80 tph Processing Plant

Grizzly Feeder Unit FDR-01 Grizzly Underflow Conveyor CON-01 Cone Crusher CHR-02 Jaw Crusher CRH-01 Primary Ball Mill BAL-02 Cluster Cyclones CYC-03 Knelson ConcentratorKNC- 02 Tails to Stockpile STP-05 Classifying Screen SCR-01 Under Pan UPN- 01 Classifying Screen Oversize Conveyor CON-04 Cone Crusher Surge Feed Hopper HPR-01 Jaw and Cone Crushers Return Conveyor CON-03 Jaw Crusher Feed Conveyor CON-02 Pan Feeder FDR- 02 Stockpile Conveyor CON-05 Live Stockpile STP-01 Gold Smelt House AUS-01 Primary Ball Mill BAL-01 Cluster Cyclones CYC-04 Knelson Concentrator KNC-01 Ball Mill Feed Conveyor CON-08 Ball Mill Feed Conveyor CON-07 Live Stockpile Withdraw Conveyor CON-06 Ball Mill 1 Feed Hopper HPR-03 Ball Mill 2 Feed Hopper HPR-02 Pan Feeder FDR- 07 Pan Feeder FDR- 06 Pan Feeders FDR-03; FDR-04; FDR-05 Knelson 2 Feed Pump PMP-03 Knelson 1 Feed Pump PMP-01 Cluster Cyclones CYC-01 Cluster Cyclones CYC-02 Mill Return Pump PMP-04 Mill Return Pump PMP-01 Clean water Dam DAM-01 Clean water Dam DAM-02 Clean water Dam DAM-03 Clean Water Pump PMP-07 Sump B SMP-02 Sump B SMP-01 Mill Section B Sump and Pump PMP-06 Mill Section B Sump and Pump PMP-05 Slimes Dam SDAM-01 Clean Water Return Pump PMP-07

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