Melior Resources Mark McCauley, President & CEO TSX-V: MLR - - PowerPoint PPT Presentation

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Melior Resources Mark McCauley, President & CEO TSX-V: MLR - - PowerPoint PPT Presentation

Melior Resources Mark McCauley, President & CEO TSX-V: MLR INVESTOR PRESENTATION | MAY 2017 1 Forward-looking statements This presentation contains information about Melior Resources Inc. (Melior) and should be read in


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INVESTOR PRESENTATION | MAY 2017

Melior Resources

Mark McCauley, President & CEO

TSX-V: MLR

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Forward-looking statements

  • This presentation contains information about Melior Resources Inc. (“Melior”) and should be read in conjunction with Melior’s public filings available at www.sedar.com and at

www.meliorresources.com. The content of this presentation is not to be construed as legal, financial or tax advice. Any reader should contact his, her or its own professional advisors for legal, financial, tax or other advice.

  • Certain information contained in this presentation, including the information contained in the Preliminary Economic Assessment (PEA), constitutes forward looking information under the

provisions of Canadian securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", “projects”, “potential”, "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", “should”, "might" or "will be taken", "occur" or "be achieved" or the negative connotation. Such statements and information include, without limitation, statements regarding the possible restart of operations at the Goondicum mine, the potential for resource expansion at the Goondicum mine, and other aspects relating to the Goondicum mine. In addition, all of the results of the PEA represent forward looking information and statements. Statements in this presentation that constitute forward looking statements or information, include but are not limited to: commodities and price assumption, cash flow forecasts, projected capital and

  • perating costs, recoveries, mine life and production rates, the financial results of the PEA including IRR and NPVs, as well as other assumptions used in the PEA.

This forward looking information is subject to numerous risks, uncertainties and assumptions, certain of which are beyond the control of Melior including the impact of general economic conditions; industry conditions; volatility of minerals prices; volatility of commodity prices; currency fluctuations; mining risks; risks associated with foreign operations; governmental and environmental regulation; competition from other industry participants; the lack of availability of qualified personnel or management; stock market volatility. Readers are cautioned that the material assumptions used in the preparation of such information, although considered reasonable by management at the time of preparation, may prove to be imprecise. Actual results, future events, performance or achievement could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any

  • f the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits Melior will derive therefrom. Melior disclaims any intention or
  • bligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise except as required by applicable securities laws.

Information in this presentation is necessarily summarized and may not contain all available material information.

  • For more information on the risks, uncertainties and assumptions that could cause Melior’s results, performance or achievement to differ from current expectations, please refer to the

“Risk Factors” section of Melior’s Annual Information Form dated November 19, 2014, Melior’s second quarter Management’s Discussion and Analysis of Financial Condition and Results of Operations dated March 01, 2017, as well as Melior’s other public filings, available at www.sedar.com and at www.meliorresources.com. These factors should be considered carefully and prospective investors should not place undue reliance of the forward looking statement.

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Resource category & preliminary economic assessment disclaimer

The expectations outlined in this presentation regarding Goondicum represent the information contained in the Preliminary Economic Assessment (PEA) prepared independently by TZ Minerals International Pty Ltd for the purposes of National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and relies in part on inferred resources. As a result, the PEA is subject to increased uncertainty and technical and economic risks of mine failure and there can be no assurance that the report’s expectations will be achieved. The PEA is preliminary in nature and includes Inferred Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral Reserves, and there is no certainty the PEA will be realized. Shareholders are strongly encouraged to refer to the complete updated technical report prepared in accordance with NI 43-101 in respect of the Goondicum mine, which includes the results of the PEA described in this news release, which has been filed on SEDAR at www.sedar.com under the Company’s profile. The Qualified Persons for the PEA are: Mark Dufty, BSc Hons (Geology), FAusIMM (106196), MAIG (6643), employed by TZMI as Principal Consultant, was responsible for Sections 1,2,13,15,16,17,18,19,21,22,24,25,26,27. Mineral Resources estimates were completed by H&S Consultants Pty Ltd (“H&SC”), a geological consultancy based in Sydney, NSW, Australia and are reported in accordance with Canadian Securities Administrators National Instrument 43-101.The effective date of the mineral resources estimates disclosed in this news release is October 5, 2016. Simon Tear, BSc Hons (Mining Geology), P.Geo (Institute of Geologists of Ireland 17), EurGeol (26), employed by H&SC as a director and Consultant Geologist, was responsible (or partly responsible) for Sections 3,4,5,7,10,11,12,14,20,23,25,26,27. Graham Lee, BSc (Geology), FAusIMM CP(Geo) (101602), MAIG (1990, employed by Graham Lee and Associates Pty Ltd as a Director and Consultant Geologist, was responsible (or partly responsible) for sections 6,8,9,10,11,25,26.

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Investment highlights

Melior is poised to capitalize on strong ilmenite prices

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  • Melior’s Goondicum mine is a past producer of ilmenite
  • Management believes re-start of operations is low risk and low cost

and the mine has upside potential for resource expansion

  • Location in Australia gives direct access to Asian markets
  • Recent PEA demonstrates robust economics
  • Melior is testing a new metallurgical process with significant potential
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Ilmenite –

an industrial mineral with lifestyle applications

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What is ilmenite?

  • Cars
  • Houses
  • Electronics
  • Paints
  • Coatings
  • Plastics
  • Paper

Makes colors bright, opaque and UV-resistant

A feedstock for titanium dioxide pigment Used as a whitening pigment for:

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Market fundamentals are strong

Demand driven by GDP growth in emerging countries

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50 100 150 200 250 300 350 2009 2010 2011 2012 2013 2014 2015 H1 2016 NOV 2016 2017 2018 2019 2020 2021 2022

US$/t FOB

Historical/Forecast Sulphate Ilmenite Price

TZMI Forecast

+ %

Price/tonne increase in 12 months

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Our core focus

Goondicum

  • Past producing ilmenite mine
  • High grade deposit; low cost production
  • Strategically located in Queensland
  • Currently in care & maintenance

Production ready with low capital requirement

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Recent progress

  • Completed PEA with strong economics
  • Strengthened leadership team
  • Updated & optimised Goondicum re-start strategy
  • Initiated discussions with off-take partners

Supported by favorable market outlook

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Low risk, low cost re-start

  • AUD$120M of previous investments
  • Fully-permitted mine
  • Access to skilled labour
  • Conventional mineral sands mining
  • Opportunity to extend mine life

USD$6M

CAPEX Required

Poised to capitalize on strong market fundamentals

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Established infrastructure

tph

Processing facility

  • 260 km to Gladstone port
  • 37km of water pipeline
  • 26km of grid-connected power line
  • New mine access road partially

constructed

Goondicum is production ready

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Queensland – an ideal location

  • Mining-friendly jurisdiction
  • Ranked #10 by Frasier Institute
  • Multi-commodity world-class port
  • Long history of mining

In close proximity to Asian markets

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Goondicum production profile & process

  • Simple mining process
  • Low strip ratio
  • Standard equipment
  • Conventional processing
  • Low operational risk
  • Low product contaminants

Tonnes ilmenite per annum

Ilmenite product is highly reactive, ideal as base feedstock

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PEA highlights*

NPV10 USD$52.8M IRR 178% Project Payback Period 1.2 years Re-start Capital Costs USD$5.96M Annual cash flow USD$11.2M OPEX Costs/tonne USD$111.80 FOB TZMI long-term ilmenite price/tonne USD$189 FOB

*Preliminary Economic Assessment announced December 2016. All amounts are after tax and in $US

Robust economics

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Operating metrics*

Average annual production - ilmenite 181,000 tonnes Average annual production – apatite 31,000 tonnes Mine life 9 years Resource processed over LOM 22 million tonnes Average ilmenite grade 9.7%

*Preliminary Economic Assessment announced December 2016. All amounts in $US

Economics strengthened with by-product revenue

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Apatite is a valuable by-product

  • Rich in phosphate
  • Low contaminants
  • Slow release refractory rock is ideal

for organic fertilizer production

  • No competing domestic supplier in

Australia

  • Potential for sales in New Zealand

Tonnes produced to date

Provides significant cash flow upside potential

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Upside exploration potential

*Preliminary Economic Assessment announced December 2016. All amounts in $US

  • Mining lease occupies 20% of

Goondicum crater

  • Exploration licenses encompass

28 km2

  • Area demonstrates consistent

geology and mineralization

  • Potential to recover vanadium

and related by-products

Provides opportunity to extend mine life

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Business upside through innovative process

Browne Processing Technology

  • Upgrades ilmenite
  • Reduces energy costs
  • Reduces consumable and

maintenance costs

  • Potential to attract premium pricing
  • Applicable to other ore types

Potential upgrade of ilmenite Ti02 content at lower temperatures

Potential game-changing technology

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Experienced leadership team

Charles Entrekin, Chairman Over 40 years of industry experience. Formerly served as President and Chief Operating Officer of Titanium Metals Corporation, a NYSE listed producer

  • f primary titanium and its alloys as well as President and Chief Executive Officer of Timminco Ltd., a TSX listed magnesium, silicon, and aluminum

company. Martyn Buttenshaw, Director

  • Mr. Buttenshaw is currently Senior Manager with Pala Investments Limited. Mr Buttenshaw has over twelve years of direct mining experience and is a

former Senior Mining Engineer at Rio Tinto Mineral’s borax operations, overseeing all aspects of mine planning at its US and international mining

  • perations. Mr. Buttenshaw is currently a director of Sierra Rutile Ltd and has extensive experience advising Sierra Rutile (a UK listed rutile and ilmenite

producer) on strategic mine planning, business improvement and project feasibility studies. Mr. Buttenshaw holds an MBA (with distinction) from the London Business School and a MEng (First Class) in Mining Engineering from the Royal School of Mines, Imperial College, and London. Rishi Tibriwal, Director

  • Mr. Tibriwal has more than 20 years of accounting and finance experience as well as broad experience in the resources sector. Mr. Tibriwal is a chartered

accountant and earned an MBA in Finance from Newport University. Mr. Tibriwal is also a graduate from Mumbai University and spent 10 years at Ernst & Young, with the last four years as a partner before setting up his own financial consulting services group. Mr. Tibriwal was also formerly the chief financial

  • fficer of Carpathian Gold Inc. and Gravitas Financial Inc.

Mark McCauley, Director & CEO Formerly Managing Director of Belridge Enterprises Pty Ltd, the former owner of the Goondicum Project. Mr. McCauley has substantial mining experience and has been involved in the development of several major mining projects in Australia and Argentina, including turnaround and organizational restructuring. Jonathan Mattiske, CFO Over 15 years of financial experience working for private and public companies in the mining, engineering and technology industries. Extensive knowledge and understanding of the business and assets of the Company having been involved with the Goondicum project since 2012. 19

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Capital Structure

Pala Investments 45% Takota Asset Management 13% Belmont Park Investments 9% Panorama Ridge 9% Others 24%

Strong shareholder support

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Shares Outstanding: ~271 million 52 week range: $0.02 - $0.08 Recent price: $0.05 Market Cap: $14 million Cash position: $1.7 million Debt $4.5 million

NTD: to be updated with info from latest MD&A

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Upcoming catalysts

Multiple opportunities to unlock shareholder value

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1. 2. 3. 4.

Sign agreements with off-take partners and raise funding Re-start operations at Goondicum Continue exploration program Prove-up Browne Process

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Contact Information

Joe Racanelli NATIONAL Equicom 416.586.1943 jracanelli@national.ca

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Appendix

INVESTOR PRESENTATION | MAY 2017

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Resource base

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ML80044 Category Tonnes (Mt) Ilmnite (%) Apatite (%) Slimes (%) Ilmenite (Mt) Apatite (Mt) Slimes (Mt) Indicated 31.3 6.1 1.8 22.9 1.90 0.55 7.17 Inferred 30.9 6.3 1.6 24.3 1.93 0.49 7.51 Note: (minor rounding errors) ML80141 Category Tonnes (Mt) Ilmenite (%) Slimes (%) Ilmenite (Mt) Slimes (Mt) Indicated 15.6 5.1 29.5 0.79 4.60 Inferred 12.3 5.2 27.3 0.64 3.37

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Flow sheet

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