Investor update May 2018 Pallinghurst Resources Limited t/a - PowerPoint PPT Presentation

GEMF IELDS 1 Investor update May 2018

Pallinghurst Resources Limited t/a Gemfields Group IMPORTANT NOTICE & DISCLAIMER This document, which has been compiled by Pallinghurst Resources Limited (the “Company”), comprises the written materials/slides for a presentation concerning the Company, including its business, results of operations and prospects. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company, its shareholders or affiliates, in the United Kingdom, the United States nor any other country, nor may it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto, nor does it constitute a recommendation regarding the shares of any Group member No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness, or lack thereof. In particular, any data or figures presented in this document may not have been audited and should therefore be treated with due caution. No representation or warranty, express or implied, is given by or on behalf of the Company, the Group their respective advisors or representatives as to the accuracy or completeness of the information or opinions contained in this presentation. None of the Company, the Group, their advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this document, or its contents, or otherwise arising in connection with this document. This document and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. Certain statements in this presentation, or given in response to questions, may constitute forward-looking statements. These statements relate to future events or future performance and reflect the Company’s assumptions regarding the growth, results of operations, performance and business prospects and opportunities of the Company. In particular, statements regarding the Company’s objectives, plans and goals involve forward-looking statements. We caution you that any forward-looking statements are just estimates. They are not guarantees of future performance and involve manifold risks and uncertainties. A number of factors could cause actual events, performance or results to differ materially from what is indicated in the forward-looking statements. There can be no assurance that actual events, performance or results will be consistent with these forward-looking statements, and the Company’s assumptions may prove to be incorrect. The Company does not intend, and, subject to any legal or regulatory requirements, does not assume any obligation, to update or revise forward-looking statements to reflect new events or circumstances. 2

Pallinghurst Resources Limited t/a Gemfields Group The Transition From Pallinghurst Resources Limited To The New ‘Gemfields Group’ Structure 3

Pallinghurst Resources Limited t/a Gemfields Group GEMFIELDS The world’s leading miner of responsibly sourced precious coloured gemstones. Africa-focussed, with three principal activities: mining, grading and marketing. 100% owned by Pallinghurst Resources Ltd (JSE:PGL) 75 % 75 % 75 % 75 % 100 % 75-100% Kagem Mining Web Gemstone Montepuez Ruby Megaruma Mining Other Gem Ltd Mining plc Mining Lda Lda Licences for FABERGÉ (EMERALD) (EMERALD) (RUBY) (RUBY) Exploration & ZAMBIA ETHIOPIA MOZAMBIQUE Development MOZAMBIQUE • >USD 3 million • • World’s largest World’s largest ruby • Bulk sampling to • Exploration licences • World-famous brand invested at 31 emerald mine. mine. commence calendar in Madagascar, first founded in 1842. December 2017. • Acquired by • Licence granted • Q2 2018. Mozambique and Promotes the • Initial exploration Gemfields in 2008. 2012. First ruby • USD 4 million Zambia . positioning and (pits, trenches and • Zambian auction June 2014. invested to 31 perception of drilling) completed. • Government, a 25% Mozambican December 2017. precious coloured • Bulk sampling shareholder, has Government’s • Adjacent to gemstones by commenced August received more than royalties and Montepuez Ruby producing jewellery, 2017. USD 100 million corporation tax Mining Licences. timepieces and • Key infrastructure in since 2008 . exceed USD 80 objects. place. million to 31 December 2017 4

G E M F I E L D S / P A L L I N G H U R S T S H A R E P R I C E P E R F O R M A N C E Pallinghurst Resources Limited t/a Gemfields Group Rebased to 100 at 1 June 2014 100 120 140 160 20 40 60 80 0 01-Jun-14 01-Jul-14 01-Aug-14 01-Sep-14 01-Oct-14 01-Nov-14 01-Dec-14 Pallinghurst Resources Limited Share Price vs Gemfields Share Price 01-Jan-15 01-Feb-15 01-Mar-15 01-Apr-15 01-May-15 01-Jun-15 01-Jul-15 01-Aug-15 01-Sep-15 Pallinghurst Resources Limited 01-Oct-15 01-Nov-15 01-Dec-15 01-Jan-16 01-Feb-16 01-Mar-16 01-Apr-16 01-May-16 01-Jun-16 01-Jul-16 01-Aug-16 01-Sep-16 Gemfields plc 01-Oct-16 01-Nov-16 01-Dec-16 01-Jan-17 01-Feb-17 01-Mar-17 01-Apr-17 Gemfields delisted from AIM 28 July 01-May-17 01-Jun-17 01-Jul-17 01-Aug-17 01-Sep-17 01-Oct-17 01-Nov-17 01-Dec-17 01-Jan-18 01-Feb-18 01-Mar-18 01-Apr-18 5

G E M F I E L D S / P A L L I N G H U R S T S H A R E P R I C E P E R F O R M A N C E Pallinghurst Resources Limited t/a Gemfields Group USD cents 100 10 20 30 40 50 60 70 80 90 0 01-Jun-14 01-Jul-14 01-Aug-14 Pallinghurst Resources Limited Share Price vs Gemfields Share Price (converted to 01-Sep-14 01-Oct-14 01-Nov-14 01-Dec-14 01-Jan-15 01-Feb-15 01-Mar-15 01-Apr-15 01-May-15 01-Jun-15 01-Jul-15 01-Aug-15 01-Sep-15 Pallinghurst Resources Limited 01-Oct-15 USD cents at 30 April 18) 01-Nov-15 01-Dec-15 01-Jan-16 01-Feb-16 01-Mar-16 01-Apr-16 01-May-16 01-Jun-16 01-Jul-16 01-Aug-16 Gemfields plc 01-Sep-16 01-Oct-16 01-Nov-16 01-Dec-16 01-Jan-17 01-Feb-17 01-Mar-17 01-Apr-17 01-May-17 2017 Gemfields delisted from AIM 28 July 01-Jun-17 01-Jul-17 01-Aug-17 01-Sep-17 01-Oct-17 01-Nov-17 01-Dec-17 01-Jan-18 01-Feb-18 01-Mar-18 01-Apr-18 6

Pallinghurst Resources Limited t/a Gemfields Group C O N S O L I D A T E D I N C O M E S T A T E M E N T F O R T H E Y E A R E N D E D 3 1 D e c e m b e r 2 0 1 7 7

Pallinghurst Resources Limited t/a Gemfields Group G R O U P F R E E C A S H F L O W P E R F O R M A N C E Group Free Cashflow 50,000 40,000 30,000 25,786 23,182 19,641 18,494 20,000 14,243 8,591 10,000 4,340 3,640 USD ('000) - (4,590) (10,000) (13,969) (20,000) (21,326) (30,000) (29,340) (34,199) (40,000) (44,621) (50,000) Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Free Cashflow is calculated as cashflows from operations less taxation, capital expenditure, stripping activity costs and includes proceeds from share-buys and disposals at Pallinghurst level. December 2017 includes $5.0m contribution from the Jupiter buy-back programme. GEMFIELDS 8

Pallinghurst Resources Limited t/a Gemfields Group G R O S S D E B T A N A L Y S I S Gemfields Group - Gross Debt Analysis to 31 December 2017 80,000 70,000 12,483 60,000 2,229 10,493 7,038 50,000 14,702 4,103 19,788 17,977 19,812 40,000 10,002 10,000 4,916 24,699 30,000 6,662 15,000 20,000 35,000 35,000 30,000 30,000 11,595 25,000 9,936 10,000 8,881 20,000 7,870 15,256 3,506 2,917 6,762 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Barclays - Kagem Pallinghurst - Limited Macquarie - Limited Gordon Brothers - Faberge BCI Leasing - MRM BCI overdraft - MRM Barclays overdraft - MRM Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Barclays - Kagem 3,506 2,917 7,870 11,595 8,881 6,762 15,256 20,000 30,000 25,000 30,000 35,000 35,000 Pallinghurst - Limited 9,936 15,000 10,000 6,662 4,916 Macquarie - Limited 24,699 14,702 19,812 10,002 Gordon Brothers - Faberge 19,788 17,977 BCI Leasing - MRM 4,103 12,483 10,493 BCI overdraft - MRM 7,038 Barclays overdraft - MRM 2,229 Total 3,506 2,917 7,870 11,595 8,881 16,698 30,256 44,699 54,702 51,474 58,288 67,271 63,470 9

Pallinghurst Resources Limited t/a Gemfields Group K A G E M E M E R A L D P E R F O R M A N C E Kagem Rough Emerald and Beryl Total Auction Sales (USD million) 40.0 36.5 34.7 34.9 35.0 33.1 31.5 31.6 30.0 26.8 26.2 25.0 22.3 21.5 19.6 19.2 20.0 16.4 15.5 15.2 14.5 14.5 14.3 15.0 11.0 10.0 10.7 9.0 7.5 10.0 7.2 5.9 5.6 5.0 - High Grade Low Grade 10

Pallinghurst Resources Limited t/a Gemfields Group K A G E M E M E R A L D P E R F O R M A N C E 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Kagem Unit Operating Costs (Actual Cash Cost Basis) Jul 10 Oct 10 Jan 11 Apr 11 USD/carat (Emerald+Beryl) Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jul 13 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17 Jul 17 Oct 17 11