Mining Investment Opportunity March 2014 Forward Looking - - PowerPoint PPT Presentation

Mining Investment Opportunity March 2014

Forward Looking Information

DISCLAIMER: Any numbers contained herein are preliminary and may be subject to change or amendment without notice. Certain statements made herein may contain information or statements about expected future events and financial and operating results of Octéa Limited and/or any of its subsidiaries (herein: “Octéa” or the “Octéa Group”), that are forward‐looking and subject to risks and uncertainties, and have not been reviewed by the auditors of Octéa or of any company within the Octéa Group. Accordingly, Octéa’s actual results, performance, or achievements could differ materially from those expressed or implied by such statements and such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. No undue reliance shall be placed on such forward looking statements. Factors that could cause actual results to differ materially may include items discussed in this document, but could also include other factors such as general business and economic conditions, competition, technological change, taxation, political risk and other risk factors that are identified from time to time. Furthermore, historical results stated herein may not be indicative of the Group’s or any of its member’s future performance. The Octéa Group disclaims any intention or obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.

Contents

• 1. Objective
• 2. Overview - Octéa Ltd
• 3. Koidu Ltd – Operating mine
• 4. Tonguma Ltd – Secondary growth
• 5. Boroma Ltd – Tertiary growth
• 6. Investment Opportunity
• 7. Summary

To present an overview of Octéa Limited’s larger business, with an aim of attracting an appropriate equity partner in Octéa Mining Limited, who will enable the Company to maximize value in its late/mid stage exploration assets: Tonguma Limited and Boroma Limited, with a view to advancing development towards production in the near term.

Objective

100% 100% 100% 100% 100% 100% 100% 100% 100%

The Company

Mining Lease Producing Mine Mining Lease Pre-feasibility Exploration Licence Evaluation (extension of Koidu production) Purchase of the business at the Octéa Limited level, giving the investor exposure to the current operating company of Koidu Limited (in addition to the “blue sky upside”

• f the late stage and early stage exploration

projects of Tonguma Limited and Boroma Limited), in addition to the supporting marketing and administrative services. Marketing Company C.S.R. Initiatives Expatriate Management

Mineral Properties

Koidu & Boroma Tonguma FREETOWN Koidu Diamond Mine

• Operating mine since 2004
• Mining lease valid until July 2030
• 4.9 km2 lease area
• Contains 2 kimberlite pipes, 4 kimberlite

dyke zones and 3 blows – all high grade, high diamond value

Tonguma

• Pre-feasibility study in progress
• Mining Lease valid until 2036
• 142 km2 lease area
• Contains at least 4 kimberlite dyke zones,

each with multiple, high grade but narrow, dyke units

Boroma

• Exploration Licence valid for 4 years until July 2016

(with conversion to mining licence)

• 67.1 km2 licence area
• Contains one kimberlite pipe and numerous dyke

zones of combined strike length of at least 25 km

Regional Geology

• The Koidu and Tongo

kimberlite clusters of pipes and dyke zones are part of a Jurassic age province of kimberlites within the Man Craton

• Location of kimberlites

is structurally controlled

• Age of Kimberlites: ±

145 – 140 Ma

Koidu & Boroma

Boroma Koidu

• Koidu dykes extend into

Boroma

• Additional 4 dyke zones

north of Koidu

Location

Koidu

K2 K1 Camp Slimes dam 180 tph plant 50 tph plant Resettlement Village Workshop Stores Entrance, clinic & change house Perimeter wall

Workforce

Permanent employees: 950 Casuals: apx. 100 89 % Sierra Leonean 66% from neighbouring communities Over half (59%) of management positions at Koidu are filled by Sierra Leoneans Average monthly salary of US$180 which is 473% in excess of the national minimum wage in Sierra Leone of US$38 (SLL150,000) per month 45 permanent female employees, accounting for 5% of our national permanent workforce.

Mineral Resource

View looking north

DZA K1 K2 DZC DZB-West

1 km N

DZD-1 DZB-East Blow B3 Blow B2 Blow B1 Blow A

K1 internal geology

K1 - Resource Statement (as at December 31, 2013)

0.928 2.386

K1 Resources - Carats (millions)

Indicated Inferred

Koidu Limited – K1 Resource Statement

Kimb1 Kimb2 Kimb3

K1 Pipe shell

Body Domain Volume (Mm3) Bulk Density (t/m3) Tonnage (Mt) Carats (Mct) Grade (cpt) Revenue ($/ct) Value ($/t) Indicated Resource K1

K1-IND 0.067 2.72 0.183 0.123 0.67 350 234 TK-IND 0.255 2.56 0.654 0.438 0.67 350 234

Total K1 Indicated 0.323 2.593 0.837 0.561 0.67 350 234 Inferred Resource K1

K1-IND 0.731 2.720 1.987 1.331 0.67 350 235 TK-IND 0.615 2.560 1.573 1.054 0.67 350 234

Total K1 Inferred 1.345 2.647 3.561 2.386 0.67 350 235 K1 Blows

Blow A 0.005 2.50 0.013 0.007 0.53 350 186 Blow B 0.117 2.63 0.308 0.111 0.36 350 126

Total Blows 0.122 5.130 0.321 0.118 0.37 350 128

K1-UHG K1-MLG K1-LMG K1Bb K1Bgm Indicated Geological Potential K1-GP

K2 Geological Model

K2 Resource Statement (as at December 31, 2013)

0.950 0.515

K2 Resources - Carats (millions)

Indicated Inferred 0.950 0.515 0.894

K2 Resources - Carats (millions)

Indicated Inferred Geological Potential

Koidu Limited – K2 Resource Statement

Body Domain Volume (Mm3) Bulk Density (t/m3) Tonnage (Mt) Carats (Mct) Grade (cpt) Revenue ($/ct) Value ($/t) Indicated Resource K2

K1-UHG 0.000 2.45 0.001 0.000 0.48 270 130 K1-MLG 0.233 2.41 0.562 0.135 0.24 270 65 K1-LMG 0.585 2.43 1.423 0.484 0.34 270 92

Total K1 Indicated 0.819 2.42 1.985 0.619 0.31 270

84

Inferred Resource K2

MZ-U 0.337 2.43 0.819 0.287 0.35 270 95 K4-U 0.103 2.43 0.250 0.075 0.30 270 81 K1Bgm 0.060 2.31 0.140 0.021 0.15 270 40

Total K1 Inferred 0.501 2.42 1.209 0.383 0.32 270

85

Dykes and Blows Geological Model Dykes and Blows Resource Statement (December 31, 2013)

Koidu Limited – Dykes and Blows Resource Statement

View looking north DZA K1 K2 DZC DZB-West 1 km N DZD-1 DZB-East Blow B3 Blow B2 Blow B1 Blow A

Body Domain Volume (Mm3) Bulk Density (t/m3) Tonnage (Mt) Carats (Mct) Grade (cpt) Revenue ($/ct) Value ($/t) K1 Blow B3

0.015 2.64 0.040 0.030 0.76 350 266

Dykes DZA-1 0.316 2.92 0.924 0.597 0.54 270 189 DZA-2 0.088 2.92 0.256 0.083 0.54 270 189 DZB-W 0.553 2.79 1.543 0.860 0.55 350 193 DZB-E 0.525 2.79 1.465 0.780 0.55 350 193 Total Inferred 2.350

Production Metrics

• 50

100 150 200 250 300 350 400 450 500

• 50,000

100,000 150,000 200,000 250,000 300,000 350,000 400,000

2007 2008 2009 2010 2011 2012 2013

US$/ct Carats

Diamond Sales 2007 - 2013 - Carats and Average Value per Carat

Carats Average Value per Carat (US$)

Mixed K1 and K2 material All K1 material All K2 material

• 50.00

100.00 150.00 200.00 250.00 300.00 350.00

• 10,000

20,000 30,000 40,000 50,000 60,000

Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Nov 13 Dec 13 Jan 14

US$/ct Carats

Diamond Sales 2007 - 2013 - Carats and Average Value per Carat

Carats Average Value per Carat (US$)

Production Metrics

180 tph plant 50 tph plant

Processing Plant Configuration

180 tph processing plant

• 100,000 tpm, 1.2 Mt per annum processing capacity
• 60,000 carats per month
• Designed processing cost - $10/t
• 2013 Actual - $12.35/t
• 2014 Budget - $12/t

Mining Configuration

1.8 Mt per month designed / installed mining capacity – November 2013 – 1.705 Mt

• 28 Volvo A40 ADTs
• 11 Volvo EC700 excavators
• 13 Sandvik DP1500 drill rigs
• 3 CAT D9 bulldozers

Mining Configuration

Mining targets - 2014

• Drilling:

50,000 - 75,000 m per month

• Blasting:

400,000 - 550,000 m3 per month

• Loading & Hauling: 1.5 – 2.0 Mt per month, 50,000 – 68,000 tpd
• Note: metres and tonnages dependent on where operations are located in the pit

Associated Infrastructure

• Mess & change house
• Training facility
• Main stores
• Fuel depot (550,000L)
• Emulsion factory and store (1,000 tonnes of

explosives per month)

Infrastructure and Support Services

• Workshop (mining fleet – 56 units)
• Slimes and return water dam
• Tailings dumps
• Water processing plant
• Power plant (10 MW)
• Expatriate accommodation
• Security control rooms

Open Pit Operations

K1 K2

Cut 1 (220L) – Completed Cut 2 (160L) – Completed (Jan 2014), ore 760,000t, waste 11.5 Mt Cut 3 (100L) – From Jan 2014 to Dec 2015, ore 1 Mt, waste 19 Mt Cut 4 (40L) – From Sep 2015 to Dec 2016), ore 1.1 Mt, waste 20 Mt

Cut 1 (260L) – Completed Cut 2 (200L) – Completed (Dec 2013),

• re 713,000t waste 3 Mt

Cut 3 (140L) – Currently being studied: From Dec 2013 to Jun 2016, ore 590,000t, waste 11 Mt

K1 Total

2.9Mt ore 39 Mt waste 3.065M carats

K2 Total

1.3 Mt ore 14 Mt waste 1.002M carats Dykes and Blows: 2.350M carats

Underground Development

Annual Waste development

• Tonnes: 2.6 Mt
• From Jan 2016 to Dec 2024

Annual Ore development

• K1 tonnes: 42,554 t
• From Jan 2017 to Dec 2021
• K2 tonnes: 147,464 t
• From Sept 2015 to Dec 2024
• DZB tonnes: 209,085 t
• From Dec 2014 to Dec 2019
• DZA tonnes: 409,669 t
• From Jan 2015 to Dec 2020
• Total ore tonnes: 808,772 t

Main decline to K2 ore zone = 2.2km / 12 months to develop

Underground Production

LOM Ore Production

• K1 - 1.6MT @ 0.625 c/t
• K2 - 5.3MT @ 0.310 c/t
• DZB - 1.5MT @0.453 c/t
• DZA - 1.4MT @0.368 c/t
• Total ore tonnes - 10 Mt

LOM Carats (included in previous numbers stated on slide 21)

• Total carats both open pit and

underground– 6,417M ct.

Kimbadu

• Resettlement village named Kimbadu by
• ur local community
• First resettlement programme (2004 to

2011) – all those living within lease area

• Second resettlement programme (2012 to

2015) – those living beyond lease boundary but within 500m blast

LOM Forecast

2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Tonnes

Mining - Ore & Waste Tonnes over LOM

Total Waste Mined Total Ore Mined

Drop in waste tonnes mined due to the transition to underground mining

LOM Forecast

0.00 0.10 0.20 0.30 0.40 0.50 0.60 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Tonnes & Carats

Processing – Tonnes, Carats & Grade over LOM

Total Tonnes Processed Total Carats Recovered Recovered Grade Grade (ct/t)

LOM Forecast

• 100,000,000
• 50,000,000

50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 350,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 US Dollrs (US$)

Financial – Revenue, Opex, Capex, Overhead & Operating Cash over LOM

Revenue Total Opex Cost (Incl Royalties) Total Capex Cost Total Overheads Cost Operating Cash

Significant Annual Operating Cash Flow

LOM Forecast

0% 10% 20% 30% 40% 50% 60% 70% 50 100 150 200 250 300 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Operating Margin US$/t

Profitability over LOM

Revenue Total Opex Cost (Incl Royalties) Operating Margin

Location

Tonguma

Tonguma Licence

• 68 km directly south of Koidu
• Mining Lease valid until 2036
• 142 km2 lease area
• Contains at least 4 kimberlite dyke zones,

each with multiple, high grade but narrow, dyke units Koidu Freetown Currently in Pre-Feasibility Stage Drilling Sampling – 2014 Feasibility Study and Small Scale Production – 2015 EPCM and Commissioning – 2016 Full Scale Production - 2017

Regional Geology

Conceptual Development Plan

Cell 1 Cell 3 Cell 4 Cell 2 Focused activities on Cell 1 and Cell 2 during phase 1 exploration programme Drill metres: 57 362 m

Indicated Inferred Geological Potential Anticipated Resource Categories

Bulk sampling Philosophy

Lando A Lando B Kundu Average width (cm) 21.1 15 22 Strike sampled (m) 97.90 92.40 195 Kimberlite density (g/cm3) 2.92 2.87 2.87 Granite density (g/cm3) 2.68 2.68 2.73 Hauled to Koidu (t)/ processed by plant 2,264.19 2,733.57 5,762.31 Kimberlite (t) 241.41 199.72 441.71 Percentage kimberlite 7.43% 5.65% 6.34% ROM grade (ct/t) 0.24 0.21 0.22 Kimberlite grade (ct/t) 2.24 2.82 2.81

Bulk Sampling Results

Tonguma Conceptual Development Plan

Pre-Feasibility Study Feasibility Study Mine Financing Permitting and Licencing / Pre- Construction Mining Development Construction Current Stage of Development Production 2014 2015 2016 2017 2015 2015

Tonguma Conceptual Development Plan

Tonguma Exploration Strategy

• Pre-feasibility study in progress
• Mining Lease valid until 2036
• 142 km2 lease area
• Contains at least 4 kimberlite dyke zones, each with multiple, high grade but narrow, dyke units
• The strategy on Tonguma development is to isolate the current kimberlite-bearing

dyke system from which the majority of the historical information has been derived, and formulate a conceptual engineering study that addresses the commerciality of

• ne dyke zone
• This information will form the basis of a Feasibility Study, with a known resource –

this can then be extrapolated in scale to the remaining dyke zones identified within the mining lease area

Tonguma Conceptual Development Plan

Tonguma Development Plan

Individual Activity Total Scope of Work Approximate Timing Approximate Cost Approximate Cost 1.0 Exploration Development Work 12 months USD $2.5 million

• exploration geophysics

USD $50,000

• delineation drilling

completed

• geological modeling

USD $200,000

• conceptual mine plan designing

USD $250,000

• infill drilling and bulk sampling

USD $750,000

• analysis and interpretation

USD $250,000

• preliminary geostatistical estimation

USD $250,000

• formulation of designs, PFD and administration

USD $750,000 2.0 Pre-Feasibility Study 6 months USD $1.5 million

• conceptual engineering - mining operations

USD $100,000

• conceptual engineering - metallurgical testing

USD $250,000

• preliminary ESIA and permitting review

USD $500,000

• preliminary costings - mining operations

USD $50,000

• preliminary costings - processing and recovery

USD $100,000

• preliminary costings - infrastructure

USD $50,000

• infill drilling and bulk sampling

USD $250,000

• final micro-diamond analysis

USD $100,000

• detailed geostatistical estimation

USD $100,000

Tonguma Conceptual Development Plan

Tonguma Development Plan

Individual Activity Total Scope of Work Approximate Timing Approximate Cost Approximate Cost 3.0 Feasibility Study 6 months USD $3.0 million

• final engineering

USD $750,000

• final costings

USD $250,000

• final ESIA

USD $500,000

• government permitting applications

USD $1,500,000 Total USD $7.0 million Total Spent To Date USD $30.0 million

Conceptual Mine Plan – Cell 1

Kundu Decline Lando Decline

500 m 1,200 m 1,600 m Dyke Width > 0.4 m Mining Method

• Long-hole mechanised stoping
• Decentralised declines

Conceptual Mine Plan

16 m Inter-level Access Tunnel in Waste every 32 m Single Decline @ 14% Cell 1 Mining

• Total underground waste development: 150,000 m
• 1,250m per month, 41.5m per day
• Total development tonnes: 3 Mt waste, 2.6 Mt ore
• From May 2014 to Dec 2024
• Ore Production: 1.5 Mt
• Waste dilution: 1 Mt
• Total Production: 2.5 Mt

Total ore: 5 Mt Cell 1 Processing

• Mine configuration: 80 tph processing plant
• Total tonnes processed: 5 Mt

Total carats: 3.5 million

Cell 1 Forecast

• 100,000

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

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Tonnes

Mining - Ore & Waste Tonnes over LOM

Waste Ore

Cell 1 Forecast

• 0.50

1.00 1.50 2.00 2.50 3.00

100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Grade (ct/t) Tonnes

Processing – Tonnes, Carats & Grade over LOM

Total Tonnes Processed (t) Total Carats Recovered (ct) Grade

Cell 1 Forecast

• 50,000,000

50,000,000 100,000,000 150,000,000 200,000,000 250,000,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

US Dollars (US$)

Financial - Revenue, Opex, Capex, Overheads and Operating Cash over LOM

Revenue Total Opex Cost (incl Royalties) Total Capex Cost Total Overheads Cost Operating Cash

Significant Annual Operating Cash Flow

Cell 1 Forecast

0% 10% 20% 30% 40% 50% 60%

• 50.00

100.00 150.00 200.00 250.00

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Percentage (%)

$/Tonne Processed

Profitability over LOM

Revenue Operating Cost (incl Royalties) Operating Margin

Location

Boroma Koidu

Geological Map of Koidu Area

(Geological Survey of Sierra Leone, 2004)

Kimberlite dykes plotted by King (1973) with dykes shown on Geological Map (2004) of the GSSL overlain

• The Boroma exploration licence contains

Pipe 3 kimberlite and at least 8 parallel kimberlite dykes zones

• Total strike length of historically mapped

exposures is 16.7 km, but extrapolation of strikes to link mapped segments measures

• approx. 37 km
• Geological Map of Sierra Leone (2004) shows

additional dykes to the north of the Moinde River

Boroma Exploration Licence 67.1 km2

Location

• Satellite imagery indicates numerous
• ther parallel, linear features, which

require investigation

• Continuity of dyke zones in areas of no

exposure to be tested by drilling. Potential for significantly greater resource 3.5km 3.9km 2.2km 1km 2.7km 1.4km

Boroma Conceptual Development Plan

Pre- Feasibility Study Feasibility Study Mine Preparation Permitting and Licencing and Infrastructure Development (Road to Koidu) Mining and Shipment to Koidu

Current Stage of Development Early Stage Development and Sampling Production 2014 2015 2016 2016

Boroma Conceptual Development Plan

Boroma Tonguma Koidu

Boroma Early Stage Exploration Strategy

• Exploration Licence valid for 3 more years until July 2016
• 67.1 km2 licence area
• 5 km from Koidu mine
• Contains kimberlite pipes and numerous dyke zones, along a combined strike length of at

least 25 km., and in the same geological feature as Koidu (and same event period)

• The strategy on Boroma development is to delineate the licence area into

exploration cells (through satellite imagery), and isolate each cell for individual exploration activities – K3 has been identified and development has commenced;

• Proceed with sampling / bulk sampling /delineation drilling within the current

workings (Kimberlite pipe K3), towards geological resource definition and understanding resource potential;

• bulk sample(s) to be processed through Koidu processing and recovery plant
• Advance each cell through exploration pipeline of activity, towards final study

and preparation for shipment to Koidu Processing Plant

Boroma Conceptual Development Plan

Boroma Development Plan

Individual Activity Total Scope of Work Approximate Timing Approximate Cost Approximate Cost 1.0 Exploration Development Work 12 months

• apx. USD $5.0 million
• review historical information

USD $50,000

• exploration geophysics

USD $250,000 (subject to required

• delineation drilling

USD $3,000,000 delineation drilling

• geological modeling

USD $150,000 requirements)

• conceptual mine plan designing

USD $100,000

• infill drilling and bulk sampling

USD $1,200,000

• preliminary geostatistical estimation

USD $250,000 2.0 Pre-Feasibility Study 6 months USD $3.5 million

• conceptual engineering - mining operations

USD $100,000

• conceptual engineering - metallurgical testing

USD $250,000

• preliminary ESIA and permitting review

USD $500,000

• preliminary costings - mining operations

USD $50,000

• preliminary costings - processing and recovery

USD $100,000

• preliminary costings - infrastructure

USD $50,000

• infill drilling and bulk sampling

USD $2,250,000

• final micro-diamond analysis

USD $100,000

• detailed geostatistical estimation

USD $100,000

Boroma Conceptual Development Plan

Boroma Development Plan

Individual Activity Total Scope of Work Approximate Timing Approximate Cost Approximate Cost 3.0 Feasibility Study 6 months USD $3.0 million

• final engineering

USD $750,000

• final costings

USD $250,000

• final ESIA

USD $500,000

• government permitting applications

USD $1,500,000 Total USD $11.5 million Total Spent To Date USD $5.0 million

2.5km from Koidu Boundary Dyke Zone B Dyke Zone A

K1 K2

Decline Portals Outside Residential Area 1.6 km Strike

Conceptual Mine Plan – Cell 1

Decline Access

16m Inter-level

Mechanised long-hole stoping

500m

Phase 1 Forecast

• 50,000

100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Tonnes

Mining - Ore & Waste Tonnes over LOM

Waste Ore

Phase 1 Forecast

• 0.10

0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Grade (ct/t)

Processing – Tonnes, Carats & Grade over LOM

Total Tonnes Processed (t) Total Carats Recovered (ct) Grade

Phase 1 Forecast

• 100,000,000
• 50,000,000

50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 US Dollrs (US$)

Financial – Revenue, Opex, Capex, Overhead & Operating Cash over LOM

Revenue Total Opex Cost (Incl Royalties) Total Capex Cost Total Overheads Cost Operating Cash

Significant Annual Operating Cash Flow

Phase 1 Forecast

0% 10% 20% 30% 40% 50% 60%

• 50.00

100.00 150.00 200.00 250.00

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Percentage (%)

$/Tonne Processed

Profitability over LOM

Revenue Operating Cost (incl Royalties) Operating Margin

Koidu, Tonguma, Boroma – Combined Production Profile

• 200,000

400,000 600,000 800,000 1,000,000 1,200,000 1,400,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Carats

Octea Limited - LOM Carats Produced Profile

Koidu Tonguma Boroma

Note: This is a very conservative estimate of future production, as it assumes Koidu production to end of known resource only – when it fact the

• re body is open at depth and along strike in dyke

zones A, B and C

Financial Model–High Level Metrics 2013 vs 2014

Metric Measurement 2013 2014 Waste Mined t 15,419,119 18,551,930 Ore Mined t 1,084,941 1,088,833 Tonnes Processed t 1,035,864 1,044,876 Carats Recovered cts 368,180 532,300 Carats Sold cts 405,804 537,973 Net Revenue (after deduction of Royalties) US$ 137,838,428 200,614,993 Cash Operating Costs US$ 95,632,997 106,877,379 Capex US$ 13,485,339 28,416,733 Debt Service US$ 14,694,675 55,683,874 Shareholder repayment US$ 13,928,887

• Net Cash For the Period

US$ (2,280,801) 5,126,009 Cumulative Cash For the Period US$ 24,253 5,150,262

Financial Model – Annual forecast (Koidu only in production)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 TotalLOM Waste Mined t 15,419,119 18,551,930 19,420,007 3,475,793 165,416 90,950 45,137

• 57,168,352

Ore Mined t 1,084,941 1,088,833 819,595 981,003 63,728 497,308 490,471 483,750 25,798

• 5,535,427

Tonnes Processed t 1,035,864 1,044,876 929,890 872,868 171,863 497,308 490,471 483,750 25,798

• 5,552,688

Carats Recovered cts 368,180 532,300 515,134 523,865 104,949 301,740 297,289 292,915 15,621

• 2,951,993

Carats Sold cts 405,804 537,973 510,405 476,756 183,891 272,841 297,902 293,527 56,603

• 3,035,700

Net Revenue US$ 137,838,428 200,614,993 196,483,437 186,423,486 71,808,568 106,589,605 116,393,182 114,684,178 22,139,146 (52,428) 1,152,922,595 Cash Operating Costs US$ 95,632,997 106,877,379 96,554,215 66,790,421 25,763,674 46,875,340 67,653,612 59,494,448 26,618,054

• 592,260,139

EBT US$ 43,349,859 94,610,712 100,802,319 120,506,163 46,917,991 60,587,362 49,612,667 56,062,827 (12,125,810) (52,428) 560,271,662 Tax US$

• Capex

US$ 13,485,339 28,416,733 30,600,000 8,151,806 28,033,545 10,521,033 280,545 154,460

• 119,643,460

Working Capital US$ 3,521,759 5,384,096 5,358,594 4,946,501 2,145,580 1,344,124 (3,562,868) 2,838,494 7,649,875 (54,714,296) (25,088,141) Net Cash before Debt Service US$ 26,342,761 60,809,883 64,843,725 107,407,856 16,738,866 48,722,206 52,894,991 53,069,873 (19,775,685) 54,661,867 465,716,342 Debt Service US$ 14,694,675 55,683,874 89,630,735 13,208,061 17,246,466 190,463,811 Shareholder repayment US$ 13,928,887

• 8,838,681
• 158,860,762

181,628,330 Free Carry US$

• Net Cash For the Period

US$ (2,280,801) 5,126,009 (24,787,010) 94,199,795 (507,600) 39,883,524 52,894,991 53,069,873 (19,775,685) (104,198,895) 93,624,202 Cumulative Cash For the Period US$ 24,253 5,150,262 (19,636,747) 74,563,047 74,055,448 113,938,972 166,833,963 219,903,836 200,128,151 95,929,256

Note: This financial model only assumes Koidu production on the known proven resource. Both K1 and K2, as well as Dyke Zones A, B and C are open at depth, and the dykes are open along strike. This model does not include any financial consideration for Tonguma Limited or Boroma Limited, of which both have proven mineralisation (high grade mineralisation at Tonguma Limited).

Other factors to consider – Diamond Prices

Other factors to consider – Octéa Ranking Amongst Peers

Work Flow of Development

Mine Development Framework

(2) Tonguma and Boroma full feasibility studies (1) Boroma drilling and bulk sampling, modelling, resource statement, evaluation or development options Use the valuations as presented in the feasibility studies as basis of IPO

60

• Investment to date

USD $300 million

• Tiffany off-take agreement

Buyer Option to retain

• Sierra Leone as an

investment opportunity

• Significant future cash flow

generation

Summary

61

• 6.417M cts. of known resource still to

mine at +$200.ct margin

• Potential Blue Sky upside beyond

current resource as Koidu K1 and K2 and dykes are open at depth and along strike

• Large potential for multi-million carat

resource and large operation at Tonguma Limited

• Large unexplored resource at Boroma

Limited - will facilitate maximum production at Koidu processing plant – beyond 2025

Summary