Q3 2016 CONFIDENTIAL EXECUTIVE SUMMARY ALUFER IS ONE OF THE MOST - - PowerPoint PPT Presentation

CORPORATE PRESENTATION Q3 2016 CONFIDENTIAL

• High quality resource - 146Mt @46% Total Al2O3, 40.5% Available Al2O3,

1.7% Reactive SiO2

• 15km from the coast requiring minimal infrastructure and reducing

capital costs

• Low cost and quick to production:
• Simple logistics
• 18 month construction period with production targeted late

2017

• 15 year LOM, with initial production rate of 5.5Mtpa and

expansion to 10mtpa

• Responsible, sustainable mining:
• Using global best practise mining methods
• Environmental programme adheres to IFC and Equator Principles
• Fully licenced and formally documented:
• Mining Convention, ‘Project of National Interest’, DFS and ESIA
• Highly experienced management team with particular expertise in

African bulk commodity projects

• Additional 2.5 billion tonnes of bauxite resource at Labé1 including

583Mt at 50% Al2O3

EXECUTIVE SUMMARY

1 See appendix for details

ALUFER IS ONE OF THE MOST ATTRACTIVE, SIGNIFICANT NEAR-TERM BAUXITE PRODUCERS IN GUINEA

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BAUXITE OVERVIEW

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• Typically, a bauxite resource contains 30-60% alumina (Al2O3), and occurs as two main types: trihydrate ("low

temperature") bauxite and monohydrate ("high temperature") bauxite

• The aluminium industry is no longer as integrated as it used to be - pricing power is shifting upstream to alumina and

bauxite producers

• Aluminium demand, however, drives alumina and bauxite growth - medium to long term demand is still strong
• Demand continues to grow in key sectors including transportation, construction, power, packaging and consumer

products Bauxite is the main commercial mineral from which aluminium oxide is extracted, which in turn is smelted to form aluminium metal: 5t bauxite (ore) 2t alumina (refinery) 1t aluminium (smelter)

METAL USAGE IS LINKED TO ECONOMIC DEVELOPMENT

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• Iron ore and copper usage maturing following rapid industrialisation in China and other emerging markets
• Aluminium demand in China is still in its early stages with saturation not expected to match current levels of steel
• r copper for 30 years
• As an economy matures, requirements shift from building and infrastructure development to consumer goods,

vehicles, transport, infrastructure etc

• The urbanisation of China is forecast to shift toward internal consumption which will benefit demand for
• aluminium. Chinese policy supports this

CHINA FUNDAMENTALLY CHANGED THE ALUMINA INDUSTRY

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• China’s aluminium production up 400% in last 15 years
• China began importing significant amounts of alumina

to supply rapidly expanding smelting industry

• To avoid reliance on imported alumina China began to

develop its own domestic alumina refining capacity

• Since 2002, China has developed over 50Mt of

alumina refining capacity1

• Chinese alumina production was based on two

approaches:

• Development of merchant refining capacity in

Shangdong based

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imported Indonesian bauxite

• Processing of domestic ore
• New refining capacity has lead to record increase in

bauxite demand and imports

• Declining quality of domestic bauxite in China and

diminishing global reserves of high quality ore

• Impetus for refiners and smelters to secure a

long term supply of ore

1 Source: World Aluminium

HISTORIC ALUMINA CAPACITY EXPANSIONS (MTPA)1

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40 60 80 100 120 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 China RoW

• China is buying low quality material from India and Malaysia at high prices
• Malaysia recently banned exports for 3 months but even when exporting is a short term solution
• Guinean bauxite is some of the highest quality in the world
• There is a significant opportunity for Bel Air to enter the market as a premium quality bauxite
• Refineries are prepared to pay a premium for high quality
• Material from Brazil, Guyana, Ghana and Guinea can command up to 50% more than the market price

BEL AIR - MARKET OPPORTUNITY

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BEL AIR BAUXITE

• AvAl2O3: >40%
• RxSiO2: <2%
• AvAl2O3: RxSiO2ratio: >23

BEL AIR BAUXITE IS AMONG THE HIGHEST QUALITY MATERIAL IN THE MARKET

BAUXITE QUALITY CONSIDERATIONS

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Desirable characteristics Impact on customer if inadequate Customer criteria Bel Air spec Bel Air assessment Min Target Max High total alumina

• Increases capital operating costs for

mining, transport, processing and mud disposal 40% >45% NA 46% High extractable alumina

• Increases the % of untreatable material

per tonne of ore that must be processed and disposed of 36% >40% NA 40.5% Low total silica

• Increases caustic usage

NA <2% 10% 4.5% Low reactive silica

• Increases caustic usage
• Reduces extractable alumina units

NA <2% 3% 1.7% Low moisture

• Increases shipping costs
• Increases fuel consumption within

refinery NA 6% 18% 9.6% Low organic carbon

• Increase operating costs by reducing

plant efficiency and lowers product quality NA <1.0% 2.0% <0.1% Low other deleterious elements

• Many other ores have high levels of

calcium oxide, lithium, sulphur Poor vs Target Target Excellent vs Target

• Completion of the DFS has ensured:
• Pit to Ocean Going Vessel (OGV) simulation and integration
• Optimisation / Value engineering where applicable
• ESIA and biodiversity planning and mitigation
• Construction readiness
• Construction permit applications underway
• Control of simple logistics solution
• Short haul, causeway conveyors, transhipment barging and
• nsite infrastructure
• Low operating cost following optimisation of mine plan
• Minimised strip ratio, limited re-handling and automated

materials handling set-up

• Minimum 15 years mine life with initial production rate of 5.5

Mtpa

• Economically robust under multiple bauxite pricing cases

DFS OVERVIEW

EXTENSIVE DFS VALIDATED LOGISTICS, CONSTRUCTION, AND MINING PLANS, AS WELL AS ECONOMIC MODEL

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• Direct Shipping Ore will be mined from a total of six pits
• Minimum of two areas will be in operation at the same time
• Increases production flexibility as well as adequate ore blending

capability

• Open strip mining will use surface miners
• Material will then be transported via truck to the ROM tip
• Ore will then be stockpiled and handled via conveyor over a rubble

causeway and loaded onto barges

• Transhipment handled via self-propelled barges and transhipment

vessel to OGVs

OPERATIONAL SUMMARY

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SURFACE MINING – LOW OPEX, SIMPLE HANDLING, HIGH EFFICIENCY

• Sustainable, reduces loss and dilution and no high

grading

• Single phase – no drilling, explosives, crushing
• Significantly reduces strip ratio, waste handling and

haulage costs

• Minimises footwall waste
• Improves in pit ground conditions which enables

multi-purpose haul fleet selection

• Lower fuel consumption
• Reduces bulking factor for improved haulage

efficiencies

• Less dust creation

MINING METHOD

Benefits vs drill and blast:

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Current surface mining operations

• Paragominas, Brazil
• Rusal, Guinea
• Iron ore, Western Australia

• ROM ore will be delivered to the bin using 40m³ side

tipping trucks

• This then withdrawn from the ROM bin using two

apron feeders (2,000tph design rate) and conveyed to the ore stockpile

• Ore reclaimed from stockpile by two apron feeders

and conveyed along jetty to barge loader

• Chemical dust suppression agent used to minimise

environmental impact

• SCADA control included

PROJECT ADVANTAGED BY PROXIMITY TO COAST AND CONTROL OF DEDICATED LOGISTICS AND FACILITIES

MATERIALS HANDLING

Materials handling

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• Simple, efficient materials handling infrastructure
• Automated, low opex approach
• Premium on high reliability equipment, eg. apron feeders,

telestacker

• Inherent redundancy and catch-up ability
• De-linking of mining process (continuous) and barge loading

(batch process) Process

ONSHORE INFRASTRUCTURE

• Self contained camp and operations centre will be built at

coast

• Simple, modular, pre-fabricated package systems
• Quality designed to sustain life span of 15 years
• Water wellfields already identified and designed
• Mine camp area – near Bel Air Hotel
• Quarry and Export Facility infrastructure area
• MSA and Mining Areas
• Self-generating power from high-speed diesel generators
• Dedicated communications and internet
• Contained sites = improved safety and security

SELF SUFFICIENT INFRASTRUCTURE WITH RAPID MOBILISATION AND MINIMAL COST

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• Due to barge selection the berth length is significantly

reduced

• Lock wall berth structure also preferred as it does not

require piling during the construction phase

• Will provide access from the shore to water depth

suitable for a barge load-out berth

• Simple geotechnical structure placed on bedrock
• Core and armour material will be supplied from quarries
• wned by Alufer
• Scale model being constructed and tested to confirm the

design criteria. (Please see Appendix for causeway simulation photos)

MARINE INFRASTRUCTURE

Rubble mound causeway

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Block wall retaining structure at loading point

TRANSHIPMENT IS THE OPTIMAL METHOD FOR BULK EXPORT

MARINE OPERATIONS – BARGING & TRANSHIPMENT

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• The barges will then transport bauxite to an ocean going vessel located at the

Transhipment Zone (TSZ) approximately 32km offshore

• Transhipment vessels will be used to transfer the bauxite from the barges to the

OGV

• Self propelled barge has ability to cover hatches during rain
• Will maximise throughput by making use of seasonality and large tidal range
• Low reliance on tugs

Barging

• Will involve the loading of bauxite into barges at a barge berth at the end of a

causeway

• Capesize vessels considered, capacity 170,000t with loaded draft of 18.4m,

loading rate of 1,200tph

• Onboard hold capacity of 35,000t allows pre-loading and vessel scheduling

mitigation

• Solution independently assessed by PRDW to confirm adequate capacity

Transhipment Barge loading

• Ore will be transferred onto the causeway conveyor via the stockpile reclaim

conveyor for barge loading

• Loading will comprise one slewing, telescopic barge loader
• Optimum balance between low capex, simplicity of operation and functionality
• One loader will be required to achieve nameplate capacity (2,000tph continuous)

• Full Environmental and Social Impact Assessment Studies to IFC and

Equator Principle standards have been conducted by Alufer and approved by the Government of Guinea

• Environmental Certificate of Conformity received in April 2015
• This work has included:
• Baseline assessments (ongoing)
• Integrated terrestrial and marine social and environmental impact

assessments

• Social and environmental management plans
• A stakeholder engagement plan (ongoing)
• A detailed relocation action plan
• A Critical Habitat review
• Stakeholder engagement is a core focus
• Throughout the project the team will work with the community to

develop local enterprise initiatives and promote local supply

• Ongoing mitigation plans will be in place as Alufer strives to achieve full

IFC Performance Standard compliance and meet Equator Principles

SOCIAL AND ENVIRONMENTAL STUDIES

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ALUFER IS COMMITTED TO PROMOTING AND DELIVERING SUSTAINABLE DEVELOPMENT

STRONG STAKEHOLDER SUPPORT

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• Alufer has a good working relationship with the Guinean

Government

• Bel Air was declared as ‘Project of national interest (PIN) in

December 2014

• Alufer’s Mining Convention signed on 1 February 2016:
• The first under the new Guinean Mining Code
• The first signed by the new Mines Minister
• Fiscal concessions received to encourage investment

and protect sustainability of operation

• Ratification by Parliament of the Mining Convention was

completed on the 1st June 2016

• Alufer has a syndicate of strategic investors in place for providing

equity part of construction financing

• Strong endorsement of both the project and the team
• Offers for purchase of all production have been received from

leading offtakers

• Through the Mining Convention, a tax regime has been developed to promote investment in Guinea and to deliver a

fair revenue balance for all stakeholders

• Once in production the project will generate significant revenues for the Government of Guinea
• Alufer’s Social Fund will also generate contributions throughout the life of the project
• Development is expected to create over 3,500 jobs (direct and indirect) in the area
• Alufer has committed to implement a Capacity Development Plan
• This includes vocational training, skills transfer, support for learning and career development

BENEFITS TO GUINEA

SIGNIFICANT INVESTMENT, EMPLOYMENT AND ONGOING REVENUE

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KEY MANAGEMENT

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• Mining engineer
• Expertise in development of

natural resources projects across Africa including diamonds, precious/base metals and coal

• Founder and Chairman of LSE

listed Petra Diamonds and AIM listed Chariot Oil & Gas and other private companies

Adonis Pouroulis Chairman

• Metallurgical Engineer
• 35 years of operational and

project experience

• Extensive African experience
• Was Head of Business

Development with Anglo American Plc, also serving as CEO of Anglo Ferrous Brazil Inc.

Bernie Pryor Chief Executive Officer

• Guinea national, with strong

relationships and network connections in Guinea

• Worked for BHP Billiton,

TOTAL and Global Alumina in Guinea

• In-country liaison for Alufer

Lamine Touré Executive Director: Guinea

• Chartered Accountant with 15

years experience in the mining sector

• Previously with Anglo

American and CFO of London Mining

• Extensive background in raising

project finance and developing mining operations through construction into production

Rachel Rhodes Chief Financial Officer

• Over 20 years experience in

sustainable development and community relations

• Previously with Ivanhoe, IFC,

Rio Tinto and Xstrata

• Focus on resettlement and

compensation, ESIA, community development, biodiversity and stakeholder engagement

Catherine Garcia Environmental & Social Director

• Geologist with 20 year across

the industry – exploration, development and production

• Previously with Shangdong

Iron and Steel, African Minerals and Fortescue Metals

• Expertise in optimising and

delivering efficient mining

• perations

Kevin Mclean Project Director

• Broad commercial experience
• over 12 years working in the

resources and power sectors

• Previously with Shangdong

Iron and Steel, African Minerals and Anglo American

• Specific experience in

commodities marketing, complex negotiations, supply chain and corporate strategy

Tristan Clarke Commercial Director

APPENDICES

40 45 50 55 60 65 70 75 80 Jul-11 Apr-12 Jan-13 Oct-13 Jul-14 Apr-15 Jan-16 CFR China Bauixte Price (USD/t) Bauxite Price - CFR China News Event August 2011 First resource statement for Bel Air published December 2011 PFS for Bel Air published October 2012 Updated resource statement for Bel Air published April 2013 First Bel Air Feasibility Study published (10mtpa) June 2013 Bel Air SEIA completed September 2013 Bel Air exploitation licence granted October 2014 BFS completed (4.8 mtpa) November 2015 DFS commenced June 2016 Mining Convention ratified December 2014 PIN granted Feb 2016 Mining Convention signed April 2016 DFS completed

PROJECT DEVELOPMENT IN RELATION TO THE BAUXITE PRICE

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Source: http://thebauxiteindex.com/

HIGH QUALITY BEL AIR BAUXITE

BEL AIR BAUXITE SPECIFICATION ALUMINA PHASE DISTRIBUTION AS AL2O3

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Typical % Total Al2O3 Available Al2O3（150°C） Total SiO2 Reactive RxSiO2（150°C) Loss on ignition Fe2O3 TiO2 CaO MgO Free moisture Organic carbon Reactive Al2O3: RxSiO2 ratio 46% 40.6% 4.4% 1.7% 24% 22% 2.6% 0.0% 0.0% 10% 0.07% >23 Mineral Phases Typical % Gibbsite Boehmite Kaolinite Alumogoethite Muscovite Andalusite 42% <0.5% 1.2% 0.5% <0.5% 1.7%

BEL AIR BAUXITE QUALITY POSITIONING

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• Alufer product is currently in demand:

– Feedback from customers in China and India indicates that if Bel Air product was available for purchase it would sell at a premium to the current market price.

CAUSEWAY SIMULATION PHOTOS

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• The Labé Project (100% Alufer) is situated in the Guinea

highlands, approximately 350km north-east of Conakry

• Total JORC compliant resource of 2.5Bt at 43% Al2O3

– High grade resource - 583Mt @ 50% Al2O3, 3% SiO2

• Engineering concept ctudy completed
• Completed 11,130m auger drill programme on 600m and 300m

grids, and 252m core drill programme (only 25% of mineralised plateaus)

• Over 13,000 samples analysed by XRF and c. 20% through

bomb digest process

• Longer term prospect due to infrastructure requirements
• Alufer will continue to evaluate other opportunities and

licences to further expand the resource base over time

SIGNIFICANT GROWTH POTENTIAL

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GUINEA INVESTMENT CLIMATE

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GDP: $15.1 billion (2014 est.) Annual Growth: Estimated to be c.6% 2016-17 Population: 10.5 million Inflation: 9.7% Major Industries: - Agriculture: Rice, coffee, fruit, livestock, timber

• Mining: bauxite, gold, diamonds, iron ore
• Light manufacturing and agricultural processing

Major trading partners: South Korea, India, China, Spain, Netherlands, Ireland MINING:

• Mining accounts for over 70% of the country’s exports.
• Several ‘majors’ present in country – Rio Tinto, Rusal, CBG, GAC
• Deposits of bauxite, iron ore, gold and diamonds with significant geological potential.
• Country accounts for c. 25% of global bauxite reserves

POLITICS:

• Democratic presidential elections held in October 2015, with the incumbent Alpha Conde

winning the vote with a significant majority in the first round

• He was inaugurated for a second five term on the 14th December 2015 - will support ongoing

stability in coming years

• Is focused on creating economic wealth for the country as a whole and encourages foreign

investment within this context.

Sources: CIA Factbook; EIU, USGS

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• n their completeness (and in particular any forward looking statements which are inherently risky by their nature). Neither

the Company or any of its directors, employees or agents gives any express or implied warranty or representation as to the accuracy or completeness of the information or opinions contained in the Materials and no liability whatsoever (except in relation to fraud) is accepted by the Company, its directors, employees or agents for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.

DISCLAIMER

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