North River Resources : NRR Corporate Presentation

PowerPoint Presentation

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Feb r ua r y 2016

Namib project: Near term, high grade zinc-

lead restart

The information contained in these slides has been prepared by North River Resources plc (the "Company" together with its subsidiaries, the "Group"). The information contained in these slides, the presentation made to you verbally and any other information provided to you (in writing or otherwise) in connection with the Company and its business (the "Presentation Materials") is subject to updating, completion, revision, verification and amendment without notice which may result in material changes. The Company, in its sole discretion, reserves the right to change the terms and conditions of any transaction and to amend or supplement these Presentation Materials at any time.

The Presentation Materials have not been approved by the London Stock Exchange plc or by any authority which could be a competent authority for the purposes of the Prospectus Directive (Directive 2003/71/EC). The Presentation Materials are for information purposes only and do not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall they nor any part of them form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract, transaction or commitment whatsoever. The Presentation Materials are confidential and are being supplied to you solely for your information and may not be reproduced, re-distributed, transmitted or passed, directly or indirectly, to any other person or published in whole or in part for any purpose.

The Presentation Materials contain only a synopsis of more detailed information published in relation to the matters described therein and accordingly no reliance may be placed for any purpose whatsoever on the sufficiency of such information or on the completeness, accuracy or fairness of such information and to do so could potentially expose you to a significant risk of losing all of the property invested by you or the incurring by you of additional liability. The information contained in these Presentation Materials has not been independently verified. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of the Company, the Company's nominated adviser, Strand Hanson Limited or the Company's broker, RFC Ambrian Limited (each a "Company Adviser"), or any of their respective affiliates or any of such persons' directors, officers, partners, employees, agents or advisers or any other person as to the adequacy, accuracy, completeness or reasonableness of the information or opinions contained in the Presentation Materials and no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions, mis-statements, negligence or otherwise for any other communication written or otherwise.

No Company Adviser has approved (for the purposes of section 21 of the Financial Services and Markets Act 2000 ("FSMA")) the contents of, or any part of, the Presentation Materials. The Presentation Materials are only being issued to and directed at and may only be received by persons who: (a) in the UK: (i) have professional experience in matters relating to investments and who fall within the exemptions contained in Articles 19 or 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (investment professionals and high net worth companies, unincorporated associations etc.); and (ii) are a "qualified investor" within the meaning of Section 86(7) of the FSMA; or (b) are otherwise permitted by the laws of the jurisdiction in which they are resident to receive them. It is a condition of your receiving the Presentation Materials that you fall within one of the categories of persons described above and you warrant to the Company and each Company Adviser that: (a) you fall within one of the categories of persons described above; (b) you have read, agree to and will comply with the terms of this disclaimer; and (c) you will conduct your own analyses or other verification of the information set out in the Presentation Materials and will bear the responsibility for all or any costs incurred in doing so. Persons who do not fall within one of the categories of persons described above should not rely on the Presentation Materials nor take any action upon them, but should return them immediately to the Company at its registered office (England and Wales): North River Resources Plc, One America Square, Crosswall, London, EC3N 2SG, United Kingdom.

The distribution of the Presentation Materials in certain jurisdictions may be restricted by law and therefore persons into whose possession the Presentation Materials come should inform themselves about and observe such restrictions. In particular, neither the Presentation Materials nor any copy of them nor any information contained in them may be taken or transmitted into the United States, Canada, Australia, Japan, or the Republic of South Africa, except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of securities laws. No action has been or will be taken by the Company that would permit a public offer of its securities in any jurisdiction in which action for that purpose is required. No offers of securities or distribution of the Presentation Materials may be made in or from any jurisdiction except in circumstances which will not impose any obligation on the Company or any of its advisers to take action.

The Presentation Materials include certain forward-looking statements, estimates and forecasts with respect to the anticipated future performance of the Company which reflect the Company's expectations regarding future plans and intentions, growth, results of operations, performance and business prospects and opportunities. Such forward-looking statements, estimates and forecasts reflect various assumptions made by the management of the Company and their current beliefs, which may or may not prove to be correct. A number of factors could cause actual results to differ materially from the potential results discussed in such forward-looking statements, estimates and forecasts including, changes in general economic and market conditions, changes in the regulatory environment, business and operational risks and other risk factors. Although such forward-looking statements, estimates and forecasts are based upon what the management of the Company believe to be reasonable assumptions, no guarantee can be given that actual results will be consistent with such forward-looking statements, estimates and forecasts. Prospective investors should not place undue reliance on such forward-looking statements, estimates and forecasts. Such forward-looking statements, estimates and forecasts are made as of the date of these Presentation Materials and the Company does not assume any obligation to update or revise them to reflect new information, events or circumstances. Past performance is not a guide to future performance.

The Presentation Materials do not purport to contain all the information that a prospective investor may require. Prospective investors should conduct their own independent investigation and analysis of the Company and the information contained in these Presentation Materials and are advised to seek their own professional advice on the legal, financial and taxation consequences of making an investment in the Company. The Company does not undertake to provide any additional further information or to enter into negotiations regarding the investment opportunity to which these Presentation Materials relate. The Company retains the right, at any time, to terminate any discussions or negotiations with prospective investors. In the event of such termination the Company will not be under any obligation to disclose the reasons for such termination nor will they have any liability to any recipient hereof for any costs whatsoever incurred in the consideration of the information contained in these Presentation Materials. The contents of these Presentation Materials are not to be construed as legal, business, investment or tax advice.

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Project parameters
Mine Type	Underground, twin declines from surface
Mining Method	Long hole open stoping / shrinkage stoping
JORC reserves	585kt - 6.2% zinc, 2.9% lead, 46g/t silver
JORC resources (M&I&I)	1.25mt - 6.5% zinc, 2.5% lead, 44g/t silver
Targeted reserve/resources1	~1mt reserves ~1.5mt resource (M&I)
Mine life	Currently: 3.5 years Targeting: +6 years1
Mining/processing rate	250kt per annum
Processing method	Bulk crushing, milling followed by lead then zinc flotation
Recovery	Zinc - ~89% Lead - ~91%
Production	26ktpa zinc concentrate ~52% zinc (14ktpa contained zinc) 10ktpa lead concentrate ~62% lead (6ktpa contained lead, with 244koz pa silver)

• Low capital cost re-start of underground mine: FS capital - $25m

  
  

• High grade, low operating cost operation: 6.2% zinc, 2.9% lead, 46g/t silver

  
  

• Existing regional, mine and site infrastructure:

  • Trans-Kalahari highway 7km from site

  • Existing tailings facility

  • 30km to Swakopmund

    
    

• Well understood simple project:

  • DFS and optimisation complete;

  • current mining development is 'training' for

    mining operations;

  • Simple, conventional flow sheet

    
    

• Geological upside: targeting increase to LOM through ongoing ~3,800m drilling programme

  
  

• Mining Licence final material permit; Notice of Preparedness to Grant issued

  
  

  1 Management targets, which are not JORC compliant and there is no certainty these reserve, resource and life of mine targets will be achieved

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  • Project well understood and supported by robust technical evaluation:

    • DFS complete, post DFS optimisation work complete

  • Pre-construction work streams underway:

    • Confirm project parameters; adapt to market conditions; and prepare for construction

Complete Ongoing

DFS

Post DFS optimisation and

project development

Remaining Steps to

ConstructionConstruction

Project parameters selected

Infill drilling MiningLicence

Mine

Complete Licencing

Resource expansion drilling

Project financing

Economic

evaluation

development productivity

Revised mine planning

Metallurgical

testwork

Revised flowsheet

FEED

Operational readiness

Project

financing

Final Capital est. & project economics

Financial close

Construction execution

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