Metallon Corporation An African Gold Mining and Exploration Company - - PowerPoint PPT Presentation

An African Gold Mining and Exploration Company – June 2015

Metallon Corporation

2

Disclaimer

Disclaimer This presentation has been created to provide general information, solely for the reader’s general knowledge, about Metallon Corporation (“Metallon”), its subsidiaries, properties and activities, as well as the countries it operates in. Although Metallon believes that the information included in this presentation is accurate and current, such information is not intended to be a comprehensive review

• f all matters and developments concerning Metallon and Metallon does not warrant or make any representations or claims as to the authenticity, validity, accuracy,

completeness or currency of the information provided in this presentation. Moreover, Metallon, its directors and officers assume no responsibility for the information or representations contained in this presentation and shall not be liable or responsible for any claim or damage, direct or indirect, arising out of the interpretation, reliance upon or other use of the information provided herein. No information in this presentation constitutes a solicitation, offer or recommendation to engage in any investment activity, to effect any transactions, or to conclude any legal act of any kind whatsoever. Forward-looking statements Certain statements included in this presentation constitute “forward-looking statements” which, based on numerous assumptions, involve known and unknown risks, uncertainties and other factors which are beyond Metallon’s control that may affect the results, performance or achievements of Metallon. In certain cases, forward-looking information can be identified by the use of words such as "aim", "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "continues", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" and include the negative variation of such phrases. With respect to forward-looking information contained in this presentation, Metallon has made assumptions regarding, among other things, Metallon’s ability to generate sufficient cash flow from operations and access to existing credit facilities and capital markets to meet its future obligations, the regulatory framework in its countries of operation with respect to, among other things, permits, licenses, authorizations, royalties, taxes and environmental matters, and Metallon's ability to

• btain qualified staff and equipment in a timely and cost-efficient manner to meet Metallon's demand.

Although Metallon believes that its expectations reflected in forward-looking information are reasonable, such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Metallon or Metallon's projects in its countries of

• perations, or any of them, to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information.

Such factors include, but are not limited to, risks related to failure to convert estimated mineral resources to reserves, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, unexpected increases in capital or operating costs, possible variations in mineral resources, grade or recovery rates, failure of equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, labour risks, delays in obtaining governmental consents, permits, licences and registrations or financing or in the completion of development or construction activities, risks of title to properties, partner risks, legal and litigation risks, political risks arising from operating in Africa, risks relating to changes in governmental regulations and in operating internationally, risks relating to the infrastructures, uncertainties relating to the availability and costs and availability of financing needed in the future, indebtedness risks, changes in equity markets, inflation, changes in exchange rates, exchange control and export restriction risks, fluctuations in commodity prices and uninsured risks. Although Metallon has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward- looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Past performance of Metallon or its shares cannot be relied on as a guide to future performance. Accordingly, readers should not place undue reliance on forward-looking

• information. The forward-looking information contained herein, unless stated otherwise, is made as of the date of this presentation and Metallon makes no

responsibility to update them or to revise them to reflect new events or circumstances, except as required by law.

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A Private African Gold Mining and Exploration Company

• Five underground mines in Zimbabwe, with exploration assets in Zimbabwe,

Tanzania & DRC

• Globally significant Mineral Resource of 9.7Moz of gold (JORC compliant) and

exploration targets of between 4-6Moz

• Gold production of 99,000oz in 2014 and target of 130,000 - 150,000oz in 2015
• Low cost producer – AISC of US$942/oz in 2014 and approx. US$973/oz

expected in 2015

• Revenue of US$115m and net profit of US$10m in 2014
• Rising free cashflows from ramp- up expansion plans to become a 500,000oz

pa producer by 2019

• Run by an experienced Zimbabwean management team with an ability to
• perate in Africa

Corporate overview

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Operations: Zimbabwe

Operating mines

• How Mine
• Shamva Mine
• Mazowe Mine
• Arcturus Mine

Mine under development

• Redwing Mine

Development potential

• Motapa

Metallon’s assets are considered to be the best gold mines in Zimbabwe – high grade, low cost operations

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Zimbabwe – a golden opportunity

• Quality operations and world class mineral resources – efficient, professionally run mines
• High-grade, shallow underground gold mines

– group average mined grade of 4.5g/t & reserve grade of 3.7g/t

• Low cost production – AISC of US$942/oz in 2014
• Massive upside with additional on- and near- mine mining, tailings retreatment and highly

prospective exploration targets

• Good infrastructure and skilled experienced labour force
• On grid power – ring-fenced electricity at 12c kw/h
• Supportive local communities
• Security of tenure provided by the Zimbabwe Mine and Minerals Act Chapter 21.05
• Indigenisation plan submitted to the Zimbabwe Government
• Government understands that mining is essential to economic growth

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11.83 4.74 4.57 3.74 3.67 3.60 3.58 3.38 2.81 2.67 2.24 2.24 2.01 1.65 1.62 1.56 1.35 1.35 1.20 1.11 0.89 0.85 0.40

• 4

8 12 Reserve grade (g/t) 38.89 32.18 30.28 28.63 21.61 14.62 12.01 11.21 10.26 9.80 9.66 8.64 8.49 6.49 5.57 5.01 4.48 2.88 2.53 1.09 1.07

• 10

20 30 40 Resource Moz

Leading assets amongst our peers

High reserve grade of 3.7g/t World class resource of 9.7Moz

Source: CapitalIQ, SNL Metals & Mining, Broker research, Company estimates

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Targeting low cost production

One of the lowest C1 cost African gold producers

Source: CapitalIQ, SNL Metals & Mining, Broker research, Company estimates Caledonia Randgold Acacia Shanta Avocet Mwana Centamin Pan African Metallon IAMGOLD SEMAFO Endeavour Golden Star Teranga Harmony DRDGold Sibanye Perseus Resolute Aureus 500 600 700 800 900 1,000 1,100 1 2 3 4 5 6 2015E C1 (US$/oz) Reserves grade (g/t Au)

Company Reserve grade (g/t) 2015E Prod (koz) 2015E AISC ($/oz) 2015E C1 ($/oz)

SEMAFO 2.81 262 730 605

Metallon 3.74 150 970 658

Pan African 3.58 190 1,019 696 Randgold 3.60 1,055 756 700 Teranga 1.35 210 923 700 Centamin 1.11 445 947 700 Shanta 4.57 75 875 711 Aureus 3.38 55 844 724 Acacia 4.74 768 1,073 725 Caledonia 3.67 42 949 760 Endeavour 2.24 423 956 813 Sibanye 1.65 1,653 1,014 875 Resolute 1.56 312 944 890 Perseus 1.20 205 1,100 892 Harmony 0.85 1,116 1,189 895 IAMGOLD 1.35 846 1,189 900 Golden Star 2.24 260 1,307 980 DRDGold 0.40 155 1,250 1,000 Avocet 2.01 129 1,291 1,011 Mwana 2.67 65 1,304 1,025

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Gold production

• Gold production of 130,000 - 150,000oz expected in 2015 – approx. 30% of Zimbabwe’s total

production1

• All gold bullion produced is sold to Fidelity Printers, a subsidiary of the Reserve Bank of Zimbabwe
• 100% of the spot gold price is paid on delivery, minus the 5% Government royalty

– royalty reduction from 7%, effective 1st October 2014. Added incentive for gold sector growth

Gold pour at Mazowe Mine – April 2014

Note (1) As per estimates from the Zimbabwe Chamber of Mines

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Gold production in Q1 2015

• 200

400 600 800 1,000 1,200

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

Jan-15 Feb-15 Mar-15 Cost per oz UUS$) Gold Production (oz)

Gold production per mine & cost per oz in Q1 2015

How Shamva Mazowe Arcturus C1 cost per oz (US$) AISC per oz (US$)

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Future gold production growth & costs

Targeting gold production of >500,000oz pa by 2019

200 300 400 500 600 700 800 900 1000 1100

• 100,000

200,000 300,000 400,000 500,000 600,000

2014 2015 2016 2017 2018 2019

Costs (US$) Gold Production (oz)

Estimated future gold production & costs 2014 - 2019

How Arcturus Shamva Redwing Mazowe C1 cost (US$) AISC (US$)

98,845oz 150,242oz 238,857oz 473,145oz 556,082oz 336,422oz

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Growth strategy 2015 – 2019

HOW

• 16NY shaft deepening
• How South raise-bore sliping
• How South Exploration
• Plant expansion to 80ktpm

1.475Moz US$69m Increase production to 100,000oz/an

SHAMVA

• Shaft upgrade
• Sands retreatment project
• Surface exploration - Shamva Hill
• Plant expansion to 140,000tpm

2.788Moz US$54m Increase production to 96,000oz/an

MAZOWE

• Shaft upgrade and deepening
• Sands retreatment project with 60ktpm plant*
• Underground development & exploration
• Plant expansion

1.975Moz US$52m Increase production to 141,000oz/an

REDWING

• Mine decline to 6 Level
• Shaft sinking & mechanised mining
• Development & exploration

2.471Moz US$73m Increase production to 111,000oz/an

ARCTURUS

• Shaft upgrade
• Shaft sinking
• Development & exploration

1.046Moz US$46m Increase production to 108,000oz/an

TOTAL

9.755Moz

US$294m

~556,000oz/an

MINE ACTIVITY RESOURCE CAPEX IMPACT BY 2019

*Project has commenced, for more information see slide 13

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Financial information modelled on expansion plans 2015 - 2019

For the year ended 31 Dec

Unaudited 2014 2015E 2016E 2017E 2018E 2019E Total gold production (oz) 98,845 150,242 238,857 336,422 473,145 556,082 Capital expenditure approx. (US$m) 5 78 82 64 42 31 Revenue (US$m) 115 178 283 399 561 659 EBITDA (US$m) 26 53 101 164 282 339 Net profits (US$m) 10 22 59 109 233 277 Free cash flow (US$m) 12 (36) (6) 45 203 262 C1 cost (US$/oz) 776 658 641 584 487 479 AISC (US$/oz) 942 973 804 736 614 605

• All expansion plans and CAPEX requirements still require detailed feasibility studies
• Most capital expenditure will be funded by operating profit. 2015 – 2019 total capital expenditure is US$297m
• The gold price used in forward-looking assumptions is US$1,200/oz

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Mazowe Sands Retreatment Project

Item Units Quantity

Tonnage treated t/mth 60,000 Grade (average) g/t 1.3 Recovery % 83 Ounces

• z/mth

2,081

Total Capex $ 9,686,805

Operating Cost $/oz 348 Revenue $/mth 2,497,765 Profit $/mth 1,773,162

Profit $/yr 21,277,947

Nominal payback mths 5.5 Gold price used $/oz 1,200

Impressive Project Economics…

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Mazowe Sands Retreatment Project

Project work has commenced with commissioning expected October 2015

Baldmin Projects Board, Mazowe Mine Civils, Site Levelling, Mazowe Mine Sands Plant, 80m3 Leach Tanks, Baldmin Yard, SA Sands Plant, Ball Mill Sections, Baldmin Yard, SA

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World class gold resources & further potential

• Globally significant Mineral Resource of 9.8Moz of gold (JORC compliant June 2014)
• Exploration results category contains about 4-6Moz from satellite ore bodies to operating

mines (SRK 2013)

• All five mines have open-ended depth and are under-explored across strike extensions
• Historic drilling records were used to compute 3.5Mt @ 2.5-3.5g/t at Redwing, at shallow

depth (120m to 180m) in 2013

• Conceptual target sizes of:

− Mazowe Mine: 2.5 - 3Moz − Redwing Mine: 5 - 8Moz

• Rich quartz veins offer

exploration upside potential

• Metallon is focused on increasing

production to mine these resources

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Additional gold exploration projects

• Zimbabwe – Motapa

− Brownfield project with sands & sulphide-gold resources (in-house estimate of 2.4Moz is not included in the 9.7Moz Group Resource Statement) − Successful ultrafine grinding metallurgical processing tested (the Albion process) − Contains the richer Motapa camp deposits (3-10g/t) of Club, B&S, Fossicker, Pluvius and Jupiter

• Democratic Republic of Congo

− 4 exploration properties secured in the Maniema province near Bukavu

• Tanzania

− Currently securing mineral rights located near the Lake Victoria gold fields

Building an African footprint

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Indigenisation – working with local communities

• Indigenisation

− Indigenisation proposal submitted to the Zimbabwe Government − Suggested structure includes 10% employee share schemes, 10% local communities, 10% National Indigenisation & Empowerment Board − Liaising further with the Zimbabwe Government and awaiting approval in 2015

• Supportive local communities

− Metallon is a good corporate citizen and is committed to maintaining its social licence to operate − Long-established track record of social delivery to employees & local communities: education, health, housing, other services − Platform for further, sustained socio-economic development through community trust model

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Track record of delivery

Increasing Production Financial Discipline Improved Delivery

• Reopened four mines

successfully

• Production increasing to

130,000 - 150,000 ounces in 2015

• Redwing to recommence

production in 2015

• Sands treatment to

commence at Mazowe in 2015

• Expansion plans being

undertaken

• Targeting production of

500,000 ounces by 2019

• Low cost mining with AISC
• f US$942/oz in 2014
• Expected AISC of

US$973/oz in 2015

• Major expansion plans in

Zimbabwe paid for by cash flow & bank debt

• Delivering free cash flow
• Planning to be a consistent

dividend player by 2016

• Increased mineral

resource from 8.6Moz to 9.8Moz in 2015

• Geographic

diversification by acquiring assets in DRC & Tanzania

• Focused exploration

programme

• Looking at further M&A
• pportunities

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Positioning for growth

• A golden opportunity

– 9.7Moz world class resource – established infrastructure – skilled labour

Expansion projects at existing operations

More investment in Zimbabwe More jobs, revenue

Future exploration projects Focused M&A activities GOLD PRODUCER

+500,000oz/pa

Appendix

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Biographies: Board of Directors

Sir Nicholas Bonsor

Independent Non-Executive Chairman

Sir Nicholas Bonsor joined Metallon as Independent Non-Executive Chairman in March 2011 and is Chairman of the Nominations Committee. He serves on the Boards of several listed companies and is currently Chairman of Tomco Energy Plc. He started his career as a barrister, practising in a Common Law Chambers from 1967 to 1975 and as a specialist in regulatory and commercial law from 2003 to 2011. He was a member of British Parliament from 1979 to 1997. He holds a MA in Jurisprudence from Oxford University.

Robert Robertson

Senior Independent Non-Executive Director

Robert Robertson joined the Board of Metallon in March 2011. He is a Senior Independent Non-Executive Director and Chairman of the Audit, SHE and Remuneration Committees. He is a Director of BlackRock Smaller Companies Trust plc and Lowland Investment Company plc. He was previously chairman of West China Cement, a Director at Avocet Mining plc and Buro Happold Engineers, and Chief Executive of Tarmac Group and Anglo American's Industrial Minerals division. His early career was in finance, working in London, Paris, Johannesburg, New York and Rio de

• Janeiro. He holds a MA in History from Oxford University.

Dr Tomaz A. Salomão

Non-Executive Director

Dr Tomaz Salomão joined the Board of Metallon in December 2014. He is the former Executive Secretary of the Southern African Development Community (SADC) and served from 2005 - 2013. Dr Salomão has made significant contributions to the development of Mozambique and the Region in senior positions for 22 years. During this period, he also served as Governor for Mozambique at the African Development Bank, IMF and World Bank. Dr Salomão is qualified as Certified Public Accountant, has Bachelor of Arts and Master of Arts Degrees in Economics. He is currently the Chairman of the Board of Directors of the Standard Bank, Mozambique (non executive), and a visiting Research Fellow at the Wits School of Governance at the University of Witwatersrand in Johannesburg.

Mzilikazi Khumalo

Non-Executive Deputy Chairman

Mzilikazi Khumalo founded Metallon in 2001 and is the main shareholder

• f the Company. He purchased the assets in Zimbabwe from Lonmin in
• 2002. He has held the position of chairman at various companies

including JCI Limited, Capital Alliance Holdings Limited and Point Waterfront Corporation, as well as having been Non-Executive Director at Mintek, Telkom, McCarthy Retail Limited, Ridge Mining and Anglo American Corporation. He holds a Bachelor of Commerce degree from UNISA.

Andile Reve

Non-Executive Director

Andile Reve joined Metallon in 2002 as Chief Executive and became a Non-Executive Director in August 2010. He was an analyst at Kwazulu Finance and Investment Corporation from 1987 to 1991 and a Commercial Manager at Eskom from 1991 to 1996. He joined the Rennies Group as an Executive Director in 1996 and in 1998 he moved to the Industrial Development Corporation as Executive Vice President – industrial finance. He holds an MBA from Rutgers University, State of New Jersey, USA, B .Com (Hons), UNISA and B.Com, Kwazulu-Natal.

Kwaku Akosah-Bempah

Non–Executive Director

Kwaku Akosah-Bempah joined the Board of Metallon in August 2010. He was previously the chief financial officer of AngloGold Ashanti Limited’s West Africa Region, having previously served as general manager: corporate finance at Ashanti Goldfields Company Limited. He has also held several senior roles as finance director at Freda-Rebecca mine in

• Zimbabwe. He holds a Bachelor of Commerce (Hons) Degree and a

Diploma in Education from the University of Cape Coast, Ghana, and an MBA from the Columbia Business School, USA. He is also a chartered accountant and member of the Institute of Taxation, Ghana.

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Biographies: Executive Management

Ken Mekani

Chief Executive Officer

Ken Mekani has been with Metallon for 27 years after joining the then Lonrho Mining as Graduate Trainee Metallurgist in June 1987. After completing the Graduate Trainee Programme, Ken was appointed Plant

• Metallurgist. He spent several years in the group’s various operations

where he worked his way up the ranks and was involved in major Metallurgical projects. In December 2012, he was appointed Acting COO for Metallon Gold Zimbabwe and in June 2013 was appointed General Manager for the group’s flagship operation, How Mine. From August 2010 to August 2013, Ken was non-Executive Director and Chairman of the Technical Committee of Sabi Gold Mine, a wholly owned subsidiary of the Zimbabwe Mining Development Corporation. Ken holds a BSc. Metallurgical Engineering (1987) from New Mexico Institute of Mining and Technology (USA) and a Masters in Business Administration (MBA) from the University Of Zimbabwe Graduate School Of Management (2006).

Mark Tsomondo

Director, Exploration and New Business

Mark Tsomondo joined Metallon in 2010 as Group Exploration Manager. In that capacity, he undertook an in-depth review of Mineral Resource estimation for the Company. In January 2014 Mark became Chief Operating Officer and in September 2014 he was made Director - Geology and New Business. Mark’s experience spans over 30 years and covers mining and exploration for gold, platinum, chrome and copper. Joining Union Carbide Zimbabwe in Kwe Kwe in 1981, he worked on the Great Dyke deposits and gold in greenstone belts rising through the ranks from Junior to Chief Geologist. Mark formed Midlands Geological Services in 1992, a consultancy that lasted for over a decade. He also worked as Mine Manager for an open pit operation for 4 years, including a recent stint as Non-Executive Director of ZMDC. He holds a BSc (Hons) from University of Rhodesia and an MSc and D.I.C. in Mineral Exploration from Royal School of Mines, London (1985).

Dr Isadore Matunhire

Technical Director

Dr Isadore Matunhire joined Metallon in November 2013 as Head of Technical Services and in April 2014 became Technical Director. He is responsible for leading the expansion programmes, bankable feasibility studies and business integration. He has advised Metallon as an Independent Consultant since January 2013. He has over 20 years

• perational mining experience and 5 years in the mining consultancy field.

He has worked for Zimbabwe Mining Development Corp and Bindura Nickel Corp in senior roles. He worked for TWP Projects as Lead Mining Engineer/ Project Manager where he completed feasibility and due diligence studies for Lonmin Platinum, African Consolidate Resources, Metallon, Anglo Platinum, Zimasco Chrome, Wesizwe Platinum, and BCL Selebi-Phikwe. He has also lectured in the Mining Engineering Department at the University of Pretoria and worked as Corporate Affairs Director for Mwana Africa. He graduated with a PhD in Mineral Economics from University of Nottingham, England and MSc in Management from City University, London.

Tulani Sikwila

Finance Director

Tulani Sikwila joined Metallon in 2005 and became Group Finance Director in March 2012. He has a decade of operational, accounting and finance expertise in the mining industry having started his career at Ernst & Young in 2001, where he spent 4 years as an Audit Supervisor. A chartered accountant by trade, he holds a B.Com in Accounting from Rhodes University, B. Compt (Honours) from UNISA, and a Diploma in Management Accounting (CIMA).

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World class mineral resource – 9.7Moz

Proved Probable Total Ton (kt) Grade (g/t) Ounce s (oz) Ton (kt) Grade (g/t) Ounce s (oz) Ton (kt) Grade (g/t) Ounce s (oz) How – U/g 763 5.6 136 2,311 3.5 261 3,074 4.0 397 Surface 817 1.1 30 817 1.1 30 763 5.6 136 3,128 2.9 291 3,891 3.4 427 Arcturus – U/g 296 6.19 59 854 5.1 140 1,150 5.4 199 296 6.19 59 854 5.1 140 1,150 5.4 199 Shamva – U/g 863 2.85 79 3452 2.93 325 4,315 2.9 404 863 2.85 79 3452 2.93 325 4,315 2.9 404 Redwing – U/g 24 2.9 2 108 2.8 10 132 2.8 12 24 2.9 2 108 2.8 10 132 2.8 12 Mazowe – U/g 336 5.67 61 273 5.56 49 609 5.6 110 336 5.67 61 273 5.56 49 609 5.6 110 TOTAL 2,282 4.6 337 7,815 3.2 815 10,097 3.5 1,152 Measured Indicated Total Ton (kt) Grade (g/t) Ounce s (oz) Ton (kt) Grade (g/t) Ounce s (oz) Ton (kt) Grade (g/t) Ounce s (oz) How – U/g 1,855 5.5 326 2,745 3.9 342 4,600 4.5 668 Surface 817 1.1 30 817 1.1 30 1,855 5.5 326 3,562 3.3 372 5,417 4.0 698 Arcturus – U/g 359 6.7 77 2,471 5.2 413 2,830 5.4 490 Surface 1,272 1.1 45 1,272 1.1 45 1,631 2.3 122 2,471 5.2 413 4,102 4.0 535 Shamva – U/g 1,936 2.6 160 8,601 3.0 817 10,537 2.9 977 Surface 2,401 0.8 61 2,401 0.8 61 Surface 2 167 1.2 6 167 1.2 6 1,936 2.6 160 11,169 2.5 885 13,105 2.5 1,045 Redwing – U/g 1,534 2.5 127 7,989 4.0 1,020 9,523 3.8 1,147 Surface Sands 9,906 0.3 105 9,906 0.3 105 1,534 2.5 127 17,895 2.0 1,125 19,429 2.0 1,252 Mazowe – U/g 517 9.5 159 794 7.4 189 1,311 8.2 348 Surface 4,967 0.8 125 4,967 0.8 125 5,484 1.6 284 794 7.4 189 6,278 2.3 473 TOTAL 12,441 2.5 1,019 35,891 2.6 2,984 48,331 2.6 4,003 Inferred Measured & Indicated Total Ton (kt) Grade (g/t) Ounces (oz) Ton (kt) Grade (g/t) Ounces (oz) Ton (kt) Grade (g/t) Ounces (oz) How – U/g 3,774 3.4 418 4,600 4.5 668 8,374 4.0 1,086 Surface 10,393 1.1 359 817 1.1 30 11,210 1.1 389 14,167 1.7 777 5,417 4.0 698 19,584 2.3 1,475 Arcturus – U/g 3,229 4.9 511 2,830 5.4 490 6,059 5.1 1,001 Surface 1,272 1.1 45 1,272 1.1 45 3,229 4.9 511 4,102 4.0 535 7,331 4.4 1,046 Shamva – U/g 12,122 2.4 917 10,537 2.9 977 22,659 2.6 1,894 9,227 0.5 153 2,401 0.8 61 11,628 0.6 214 Surface 9,353 2.2 674 167 1.2 6 9,520 2.2 680 30,702 1.8 1,744 13,105 2.5 1,045 43,807 2.0 2,788 Redwing – U/g 14,457 2.6 1,219 9,523 3.8 1,147 23,980 3.1 2,366 Surface Sands 9,906 0.3 105 9,906 0.3 105 14,457 2.6 1,219 19,429 2.0 1,252 33,886 2.3 2,471 Mazowe – U/g 5,546 7.3 1,293 1,311 8.2 348 6,857 7.4 1,641 Surface 1,300 5.0 209 4,967 0.8 125 6,267 1.7 334 6,846 6.8 1,502 6,278 2.3 473 13,124 4.7 1,975 TOTAL 69,401 2.6 5,753 48,331 2.6 4,003 117,732 2.6 9,756

Proved and Probable Reserves as at 30th June 2014 Measured and Indicated Resources as at 30th June 2014 Inferred, Measured and Indicated Resource as at 30th June 2014 Note (1) Redwing Mineral Reserves were reclassified as a Resource due to mine flooding below 6 level

24

How Mine – Flagship Mining Operation

Headgear at How Mine – April 2014 Underground at How Mine – April 2014

Key information

History Underground mine in production since 1942 Processing Central facility, using a combination of conventional milling, gravity recovery & carbon-in-leach process JORC Resource 1.475Moz (JORC resource June 2014) Current hoisting capacity 32 ktpm Current milling capacity 30 ktpm 2014 production 55,008oz 2014 all-in-cost $562/oz 2015 production 60,850oz (expected) 2015 AISC $798/oz (expected)

• Av. mined grade

5g/t Exploration upside How South extension New orebody 350N discovered by exploration drilling

25

Shamva Mine

Shamva mine and plant – April 2014 Workers at Shamva Mine – April 2014

Key information

History Underground mining since 1893. 2.45Moz mined to date Processing Conventional crushing, milling, gravity recovery and combination of carbon-in- solution & -pulp processes JORC Resource 2.78Moz (JORC Resource June 2014) Current hoisting capacity 45 ktpm Current milling capacity 33 ktpm 2014 production 24,037oz 2014 all-in-cost US$940/oz 2015 production 31,796oz (expected) 2015 AISC US$1,149/oz (expected)

• Av. mined grade

3g/t Exploration upside Additional potential of 19Mt grading 1.7g/t scoped as open-pittable by SRK in 1999

26

Mazowe Mine

Headframe at Mazowe Mine – April 2014 Conveyor at Mazowe Mine – April 2014

Key information

History Historic underground mining since 1890 Processing Conventional crushing, milling, free gold recovery and carbon-in-leach facility JORC Resource 1.975Moz (JORC Resource June 2014) Current hoisting capacity 19 ktpm Current milling capacity 10.5 ktpm 2014 production 11,380oz 2014 all-in-cost US$1,100/oz 2015 production 27,813oz (expected) 2015 AISC US$999/oz (expected)

• Av. mined grade

5g/t Exploration upside Conceptual target size of 2.5 - 3Moz in up to 25 high-grade quartz reefs in BSV sections and down to 1000m depth

27

Arcturus Mine

Working at Arcturus Mine – May 2012 Miners at Arcturus Mine – May 2012

Key information

History Underground mine production since

• 1907. Mine reopened in October 2013

Processing Ore is processed through conventional crushing, milling, gravity recovery and a combination of carbon-in-solution & - pulp processes JORC Resource 1.046Moz (JORC Resource June 2014) Current hoisting capacity 15 ktpm Current milling capacity 15 ktpm 2014 production 8,316oz 2014 all-in-cost US$1,567/oz 2015 production 19,749oz (expected) 2015 AISC $1,102/oz (expected)

• Av. mined grade

4.2g/t Future upside Production ramp up to capacity

28

Redwing Mine

Shaft headframe at Redwing – April 2014 Mine planning and development– April 2014

Key information

History Historic underground mining since 1889. Mine flooded in recent years. Dewatering to be completed Q1 2015 & production to commence in 2015 Processing Combined underground and sand retreatment operation JORC Resource 2.471Moz (JORC Resource June 2014) 2015 production 10,034oz (estimate) Ramp up of plant capacity 23000tpm by December 2015 83000tpm by April 2017 193,000tpm by October 2018

• Av. quartz grade

5.5g/t Exploration upside Conceptual exploration targets in multiple quartz-veins is 5 - 8 million

• unces

29

Historical financial summary

FINANCIALS (US$m) FY 2011 FY 2012 15 Months FY 2013 6 Months HY 2014 Unaudited FY 2014

Revenues 138.6 147.2 148.6 69.3 115.1 Operating Cost (94.1) (107.6) (123.2) (49.1) (76.7) Operating Profit 44.5 39.5 25.4 20.1 38.4 EBITDA 31.8 21.5 10.2 13.8 26.2 Net Profit 23.7 9.0 4.0 5.1 10

Current debt position: US$19m Treasury Bills: US$25m Current cash position: US$5m

30

Company group structure

Bulawayo Mining

Company Limited

Goldfields of Shamva

Limited

Shamva Mine Goldfields

• f Mazowe

Limited

Mazowe Mine & Arcturus Mine King’s Daughter

Company Limited

Metallon Gold Zimbabwe (Private) Limited Orla Mining

Company Limited

Motapa Mining Lease Metallon Corporation Limited (UK) How Mine Redwing Mine Metallon Management Services

Metallon Corporation

Address: 78 Pall Mall, London, SW1Y 5ES Tel No: +44 (0) 203 178 7431 www.metcorp.co.uk