Mining Projects Atlntica Minas Sept/19 Disclaimer This - - PowerPoint PPT Presentation

Mining Projects Atlântica Minas

Sept/19

Disclaimer

This presentation by Atlântica Minas Empreendimentos, Participações e Mineração Ltda. Includes "exploratory statements," as the term is defined in the "Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E

• f the US Securities Exchange Act 1934 ".

By their nature, these "exploratory statements" involve uncertainties, risks and

• pportunities, both general and specific, based on analyzes made by Atlântica Minas

according to its experience, economic environment, market conditions and expected future events, many of which are beyond the control of the company. These "exploratory statements" may be influenced in particular by factors such as the ability to obtain all necessary regulatory approvals in a timely manner, difficulty in converting geological resources into mineral reserves, and changes in market circumstances. This presentation and its contents are information owned by Atlântica Minas and may not be reproduced or disclosed in whole or in part, without the prior written consent of the owner.

Introduction

Atlântica Minas, is a small mining company in Brazil. Through this portfolio, the company will present many

• f it’s projects and market vision with the intent of seeking a partner to help leverage it’s developments.

Currently, this development is done by using resources acquired from already operating projects to fund newer and greater ones, expanding the company’s total production and overall reach. By doing this, the company can avoid creating any sorts of debts while still finding itself open for various sorts of

• partnerships. Although this comes at the cost of time, since the resources are still quite limited.

A partnership would help solve this time variable while also granting broader development options.

1.000 2.000 3.000 4.000 5.000 6.000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Production Planning

Current Planning Planning With Partners

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Global Economy

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Global Economic Growth

The global economy remains growing quite strong despite the recent monetary policy adopted by some advanced economies, which led certain financing conditions to lose their potential. While oil prices are substantially higher than expected, other commodities prices also slowly rising, not falling too behind. This is happening despite China’s reduced, expected growth.

Fonte: Vale

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International Iron Ore Market

The price of iron ore in the transoceanic market began to show signs of recovery after it reached the lowest point of the last few years in 2015/16. This can be better visualized in the graph below: At the moment, we are preparing ourselves for a high in iron ore pricings, making time a precious element. The sooner we are ready, the more we will be able to profit from the next rise.

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Overview of Atlântica Minas

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Atlântica Minas was founded in 1998, operating in the civil construction segment. In 2006 its subsidiary Atlântica Minas Mineração was created to operate in the mining segment. Atlântica Minas invests in the development of mining projects in the states of Minas Gerais and Pará, with potential for exploration of various mineral goods like: iron, gold, industrial quartzite, gneiss, kaolin, quartz, graphite, manganese, limestone, phosphate, lithium, titanium and platinoids.

Introduction What will be doing in the next ten years?

Mineral Exploration Environmental Licensing Operation Implementation of Projects

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Geophysical Anomalies

The Projects are located in areas of great magnetic anomalies (purple color), with high geophysical potential of mineralization.

1 – Iron Ore Desterro 2 – Iron Ore Itatiaiaçu 3 – Iron Ore Belo Horizonte 4 – Phosphate and Titanium Triângulo 5 – Quartz and Calcareos Santa Luzia 6 – Iron Ore Caeté 7 – Manganese Diamantina 8 – Manganese Couto de Magalhães 9 – Iron Ore João Monlevade (Seara) 10 – Iron Ore Nova Era 11 – Iron Ore Santa Maria de Itabira 12 – Piles Cuitê 13 – Iron Ore Antônio Dias 14 – Lithium Jequitinhonha 15 – Iron Ore Timóteo 16 – Iron Ore São José do Goiabal 17 – Iron Ore and Manganese Dom Silvério 18 – Quartz and Kaolim Barão de Cocais 19 – Iron Ore Barão de Cocais 20 – Iron Ore and Gold Rio Piracicaba 21 – Iron Ore Bela Vista de Minas 22 – Quartz Santa Bárbara 23 – Iron Ore Catas Altas 24 – Iron Ore Coimbra 25 – Gneiss Santa Luzia 26 – Manganese and Gold Cata Preta 27 – Iron Ore Itabirito 28 – Iron Ore and Graphite Carijós 29 – Iron Ore and Manganese Jeceaba

1 2 3 4 56 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 28 29

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Portfolio of Projects

It’s mining rights are strategically grouped into 36 mineral projects, allocated based on mineral substance and location.

Iron Ore; 19 Manganese; 3 Gold; 2 Phosphate; 2 Kaolim; 1 Quartz; 3 Calcareos; 2 Gneiss; 1 Platinum; 1 Lithium; 1 Grafite; 1

Project Portifolio

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Logistics

The projects are located close to the combined railroad / railroad / railroad terminals (MRS, VLI and FVM), integrated to the main export ports of the Southeast region of Brazil, allowing to attend both the domestic market and the external market.

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Strategic Planning

Ferro + Minerita Itaminas Herculano Biogold Crusaider Mineral do Brasil MMX DNPM 14

Atlântica’s Position in the Market

Vale CSN Anglo Samarco

Small number of companies with large reserves and high scale production.

80%

• f Brazilian

Production 10% of Brazilian Production

High number of companies with small reserves and/or low scale production.

10%

• f Brazilian

Production

Medium/Low number of companies with medium reserves and/or medium scale of production.

Ferrous Usiminas Gerdau Vallourec Arcelor Atlântica Minas Atlântica Minas

Despite being at the “base” of the pyramid, Atlântica has enough potential to reach it’s “next level”.

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Potential for Growth

Company Measured Resources Iron Ore (Mt) Production (Mt/y) Projects in Operation Ferrous 581,00 4,0 01 Usiminas 550,00 8,0 01 Gerdau 500,00 11,5 02 Arcelor 400,00 7,0 02 Vallourec 6,0 01 Atlântica Minas 160,00 0,3 01

Atlântica Minas meets the main requirement or prequisite to become a Medium producer of iron ore, which is having reserves great enough to leverage its production. This growth will occur through the implementation of several small mining projects.

Potential for > 550Mt Potential for > 4,0Mt/y

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Strategic Planning – Iron Ore and Manganese

Dry Operation – Small Scale Humid Operation – Large Scale

The strategic planning of Atlântica Minas for iron ore and manganese aims to, when possible, deploy a mobile, small-scale screening and crushing units with dry processing. These have a lower CAPEX but a rapid environmental licensing. This format of operation generates sufficient monetary resources to invest in the continuity of both it’s own development (mineral exploration, environmental licensing, engineering, land acquisition, implantation works, etc.) and of larger projects with humid operation. The strategy is to classify the projects in either class 2 or 3 of environmental licensing (considered a small project), to obtain the concomitant LP + LI + LO (LAC1) and to start a dry operation via a Utilization Permit (or Guia de Utilização, GU), which limits the maximum production in 300,000t/year. Once the final environmental license is obtained for humid processing, this limitation will be removed.

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For non-metallic minerals, Atlântica Minas is instead planning to, first, develop the necessary studies for it’s licenses and concessions. Once that is ready, it will verticalize the productive chain, by implanting factories and the like with special partners. By doing this, the project worth will increase exponentially.

Strategic Planning – Quartz, Calcareos, Gneiss and Kaolim

Cement Factories Construction Factories of Refractory Ceramics Glass Industries Agricultural Products Industries Chemical Industries Steel Industries

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For the other minerals (graphite, gold, lithium, titanium, phosphate and platinoids), Atlântica Minas will develop their projects (mineral research, environmental license and regularization in front of DNPM), for later search for selected partners to operate the business.

Strategic Planning – Others Minerals

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SWOT

Strenghts

➢ Mining rights in contiguous areas with large geophysical anomalies; ➢ Large territorial extensions (~ 1,100 km²); ➢ Projects close to the railway logistics network (including rail terminals); ➢ Projects close to important mines in operation and / or depleted; ➢ Productioon of premium products.

Weakeneasses

➢ Need for better geological knowledge (investment); ➢ Dependence on the generation of own resources for the realization of investments (time); ➢ Need for agreements with landlords.

Oportunities Threats

➢ Price of iron ore; ➢ Difficulty in environmental licensing. ➢ Possibilities of partnerships with other mining companies; ➢ Projection of high price in the iron ore market starting 2019; ➢ Projects with attractive return rates.

Closure

Atlântica Minas thanks you for taking interest in it’s various projects. Take care!

Atlântica Minas Empreendimentos, Participação e Mineração LTDA Rua Bernardo Guimarães, 2200 – Lourdes Belo Horizonte - MG Telefone: (31) 2551-5500 www.atlanticaminas.com.br