3rd quarter results
TRANSCRIPT
ASX: TER • WWW.TERRACOMRESOURCES.COM 2
The information contained in this document (“Presentation”) has been prepared by TerraCom Limited (the “Company”). This Presentation does not constitute an offer or invitation toany person to subscribe for or apply for any securities in the Company. This Presentation contains summary information of a general nature about TerraCom and its activities currentas at 30 July 2020. It should be read with the Company’s other periodic continuous disclosure announcements lodged with the ASX.
While the information contained in this Presentation has been prepared in good faith, neither the Company or any of its shareholders, directors, officers, agents, employees oradvisers give any representations or warranties (express or limited) as to the accuracy, reliability or completeness of the information in this presentation, or of any other writtenor oral information made or to be made available to any interested party or its advisers (all such information being referred to as ‘information’) and liability therefore is expresslydisclaimed. Accordingly, to the full extent permitted by law, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibilityfor, or will accept any liability whether direct or indirect, express or limited, contractual, tortious, statutory or otherwise, in respect of the accuracy or completeness of theinformation or for any of the opinions contained in this Presentation or for any errors, omissions or misstatements or for any loss, however arising, from the use of this Presentation.
This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each partyto whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemednecessary. Any estimates or projections or opinions contained in this Presentation necessarily involve significant elements of subjective judgement, analysis and assumptions and eachrecipient should satisfy itself in relations to such matters.
This Presentation may include certain statements that may be deemed ‘forward-looking statements’. All statements in this Presentation that address future activities or events areforward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statementsare not guarantees of future performance and actual results may vary materially. The Company does not represent, warrant or guarantee that the information in this Presentation iscomplete or accurate. To the maximum extent permitted by law, the Company and its directors and officers disclaim any responsibility to inform any recipient of this Presentation ofany other matter that subsequently comes to its notice which may affect any of the information contained in this Presentation. Factors that could cause actual results to differmaterially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions.
Investors are cautioned that any forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from thoseprojected in forward-looking statements.
The presentation of certain financial information may not be compliant with financial captions in the primary financial statements prepared under IFRS. However, the Companyconsiders that the presentation of such information is appropriate to investors and not misleading as it is able to be reconciled to the financials accounts which are compliant with IFRSrequirements.
All dollars or $ in the presentation are Australian Dollars unless otherwise stated.
This document has been authorised for release by the Company’s disclosure committee.
DISCLAIMER
ASX: TER • WWW.TERRACOMRESOURCES.COM 4
TERRACOM SNAPSHOT
Country Diversification ASX listed coal producer with operations in Australia and South Africa
Cash GeneratingCapitalising on strong demand for low impurity thermal coal $
Organic GrowthNear term Brownfield and greenfield expansion opportunities from within existing portfolio and external assets
Shareholder Analysis
ASX : TER
Market Capitalisation (as at 28 July 2020) (A$ million) 105.5
Shares on Issue (million) 753.6
Options and Warrants on Issue (million) ^ 55.1
Debt (US$ million) < 162.8
Cash at Bank (US$ million) # 36.9
Net Debt (US$ million) 125.9
^ 12.6m warrants at $0.262, 1.5m options at $0.60, 41.0M shares from US$20M Convertible Note at strike price of $0.696.
< excludes US$20M Convertible Note (included in Options and Warrants). # excludes $1.3 million cash at bank attributable to non-controlling interests.
ASX: TER • WWW.TERRACOMRESOURCES.COM 6
STRATEGIC POSITION OF TERRACOM – 2021 FINANCIAL YEAR
Maximise production and resultant revenue
1• The South African operations provides TerraCom with
a fixed margin return on domestic coal sales.
Natural Hedge to Sea Borne Commodity Prices
1
3
Maximise production and resultant revenue
1Significant Growth
Platform3
Maximise production and resultant revenue
1Multi-Jurisdictional
Operations2
• Thermal coal projects that have short term project horizons to commence production – Eloff (adjoining mining lease to Kangala in South Africa).
• Divestment into other bulk commodities – Bauxite in the Republic of Guinea.
• TerraCom operates in two core thermal coal jurisdictions –
Australia and South Africa.
ASX: TER • WWW.TERRACOMRESOURCES.COM 7
BOARD OF DIRECTORS
Wal King - Chairman, Independent Director
• Wal holds a Bachelor and Masters in Engineering and
Engineering Science and an Honorary Doctorate of Science
from the UNSW.
• Wal worked in the construction industry for over 40 years and
was CEO of Leighton Holdings Limited from 1987 until
December 2010.
• He is and a Director of Kimberley Foundation Australia
Limited, was previously Deputy Chairman of the UNSW
Foundation, and was one of the longest serving Directors of
Coca-Cola Amatil Limited.
Craig Ransley - Deputy Chairman, Executive Director
• Mr. Ransley is a qualified Fitter and Machinist (Trade
Qualified) and has a broad entrepreneurial background.
• Mr. Ransley is the founder of TerraCom (then Guilford Coal
Limited) and re-joined the Board as Deputy Chairman in
February 2020.
• Throughout the past number of years Mr. Ransley has been
instrumental in working with the Board to restructure the
Company and its balance sheet and has also been an integral
part of TerraCom’s expansion into emerging markets.
Glen Lewis - Non-Executive, Independent Director
• Glen is a qualified Coal Mine Manager and has worked in the
Coal Industry since 1980. Throughout his career he worked at
all levels of Management, including the role of General Manager
Eastern Underground Operations for Xstrata Coal NSW in 2003
and then promoted to General Manager Operations with overall
responsibility for 6 operating mines and several projects.
• Glen commenced with NuCoal Resources Ltd (ASX: NCR) in
2010 as Managing Director overseeing the listing, capital
raising, exploration and feasibility studies for a number of mining
projects in the Hunter Valley. Glen stepped down from the
position of Managing Director in 2017 but remains a Non-
Executive Director of NuCoal.
Hon. Craig Wallace - Non-Executive, Independent
Director
• Hon. Craig Wallace served as the State Minister for Main
Roads, Fisheries and Marine Infrastructure from 2009 to 2012.
His department delivered major infrastructure projects across
Queensland including the Gateway Bridge and rebuilding of
Queensland Road assets following major floods.
• In 2012 he formed Shanghai Commonwealth Investment and
Consulting (which is operating in Mainland China). The
company has a focus on building trade ties between China and
Australia with a particular focus on food products
ASX: TER • WWW.TERRACOMRESOURCES.COM 8
BOARD OF DIRECTORS
Craig Lyons - Non-Executive, Independent Director
• Mr Lyons is an experienced and accomplished investment
banker and businessman with extensive strategic,
management and finance experience in various industries
having built and led a number of leasing businesses in
Southern and West Africa. He actively participates as a
chairman/director and/or investment committees and
investment funds.
• Craig currently champions a number of investments in South
Africa and Africa for companies requiring his independent
analysis, views and injection of creative energy financial
acumen, strategic guidance and access to a broad network of
relationships.
Matthew Hunter - Non-Executive Director
• Matthew has more than 20 years’ experience in the finance
industry, most recently with over 10 years’ experience in
private equity investment.
• He founded Rivendell Capital in early 2016 to provide capital
and advisory services to small and medium sized enterprises
and specialised projects.
• Prior to founding Rivendell Capital, Mr Hunter was a Managing
Director of The Carlyle Group.
• Mr Hunter is OCP Asia’s nominee director. He is presently
Non-Executive Director of Silver Heritage Group Limited,
Chairman of Measure Australia, a Non-Executive Director of
Medirent, Advisory Board Member of AtlasTrend and
Consultant engaged by OCP Asia.
Paul Anderson - Non-Executive Director
• Paul has over 30 years’ experience in senior executive
management roles in both the public and private sector.
• Mr Anderson holds formal qualifications in Building Surveying,
Engineering, Planning and Management is a member of the
Australian Institute of Company Directors.
• Paul is Bonython Coal No 1 Pty Limited’s (Bonython) nominee
director and Bonython is a substantial shareholder of the
Company and was the sole sub-underwriter of the rights issue
from earlier this calendar year.
ASX: TER • WWW.TERRACOMRESOURCES.COM 9
EXECUTIVE MANAGEMENT TEAM – TERRACOM LIMITED
Danny McCarthy - Chief Executive Officer
• Mr McCarthy is a highly experienced mining executive having
held senior roles with Mineral Resources, Thiess, Wesfarmers,
and QCoal and has a proven record of accomplishment of
delivering exceptional results over 25 years in the resources
sector.
• Prior to joining TerraCom in December 2018, Mr McCarthy has
held the role of Chief Operating Officer for the highly regarded,
West Australian based, commodity producer and mining
services company Mineral Resources Limited (ASX: MIN).
During his time in this role, he oversaw the successful
implementation of MIN’s strategic growth initiatives.
Nathan Boom - Chief Financial Officer
• Nathan Boom holds a Bachelor of Commerce (Accounting) from
University of Wollongong and is a Chartered Accountant with a
strong resources sector background.
• His 14 year career working at large multinationals such as
Xstrata Coal and Tenova Delkor has provided him with
extensive exposure in business restructuring and associated
implementation of recovery plans also leading finance and
commercial aspects of the business. Nathan has led business
development projects and re-financing packages with banking
consortium’s, as well as has substantial experience in financial
system implementation and integration.
Craig Ransley - Deputy Chairman, Executive Director
• Mr. Ransley is a qualified Fitter and Machinist (Trade
Qualified) and has a broad entrepreneurial background.
• Mr. Ransley is the founder of TerraCom (then Guilford Coal
Limited) and re-joined the Board as Deputy Chairman in
February 2020.
• Throughout the past number of years Mr. Ransley has been
instrumental in working with the Board to restructure the
Company and its balance sheet and has also been an integral
part of TerraCom’s expansion into emerging markets.
ASX: TER • WWW.TERRACOMRESOURCES.COM 10
EXECUTIVE MANAGEMENT TEAM – UNIVERSAL COAL PLC
Shammy Luvhengo – Director Business
Development
• Shammy Luvhengo is a qualified investment banker and
geologist. He started his career with Exxaro Resources before
moving into the investment world.
• Shammy worked for Investec Bank and Nedbank Capital,
structuring and implementing project finance and Black
Economic Empowerment deals within the resources industry.
• Prior to joining Universal Coal, he worked at Nkwe Platinum
Limited as head of business development and investor
relations.
Celeste Van Tonder - Chief Financial Officer
• Celeste van Tonder is a Chartered Accountant with over 10
years of professional experience in mining finance and
business development.
• Prior to joining Universal Coal, she was Group Business
Development and Investor Relations manager at Coal of Africa,
an Australian coal exploration and development company listed
on the ASX, JSE and AIM.
• Celeste is responsible for all financial and commercial facets of
the business, and is an integral part of the management team
responsible for returning shareholder value.
Tony Weber – Chief Executive Officer
• Tony Weber, co-founder of Universal Coal, is a mining
engineer with over 20 years’ experience in mining spanning
project assessment, finance, development and operations.
• Prior to joining Universal Coal, Tony was an executive director
at Nkwe Platinum Limited, an Australian-listed platinum
developer, as well as operations manager at Potgietersrus
Platinum Mine and at the Gamsberg Project.
• Tony has significant skills and experience in coordinating
project feasibility studies and has hands-on operational
experience in the coal extraction industry.
ASX: TER • WWW.TERRACOMRESOURCES.COM 12
PRODUCTION PERFORMANCE – 2020 FINANCIAL YEAR
ROM ProductionYear on Year increase of
12.3Mt or 365%
Coal SalesYear on Year increase of
7.3Mt or 240%
ASX: TER • WWW.TERRACOMRESOURCES.COM 13
PRODUCTION PERFORMANCE – 2020 FINANCIAL YEAR
MANAGED TONNES EQUITY TONNES
ROM Tonnes Coal Sales ROM Tonnes Coal Sales
2020FY 2019FY 2020FY 2019FY 2020FY 2019FY 2020FY 2019FY
Australia 3,052 2,647 2,589 2,298 3,052 2,647 2,589 2,298
Blair Athol 3,052 2,647 2,589 2,298 3,052 2,647 2,589 2,298
South Africa 12,592 9,651 7,727 6,721 6,838 5,560 4,205 3,810
Kangala 3,109 3,865 1,945 2,404 2,192 2,725 1,371 1,695
NCC 3,955 3,660 2,620 2,535 1,938 1,793 1,284 1,242
NBC 3,929 2,126 2,571 1,782 1,925 1,042 1,260 873
Ubuntu 1,599 - 591 - 783 - 290 -
Total 15,644 12,298 10,316 9,019 9,890 8,207 6,794 6,108
Assuming Universal Owned
for Entire Financial Year:
ROM Production ---
3.3Mt or 27% year on
year increase
Coal Sales ---
1.3Mt or 14% year on
year increase
ASX: TER • WWW.TERRACOMRESOURCES.COM 16
QUEENSLAND OPERATIONS AND PROJECTS
OPERATIONS
1. Blair Athol Mine (BA)
PROJECTS
1. Northern Galilee
2. Springsure
ASX: TER • WWW.TERRACOMRESOURCES.COM 18
OPERATIONAL PERFORMANCE
Progressive ramp up of production at the Blair Athol mine since acquisition of the mine on 31 May 2017
THERMAL COAL 2.4MtpaROM
Export
2Mtpa export, primarily to Japan and South Korea customers
Exported through Dalrymple Bay Coal Terminal and Abbott Point Coal Terminal
Ownership 100% ownership
Life of Mine 10 years at current operational run rate
OPEN PITOwner operator model from end July 2020
Waste mining by Dragline and Dozers
Coal mining by truck & shovel.
Life of mine strip ratio of 8:1
LoM extension to +25 years with adjacent Moorlands lease (not owned by TerraCom)
ASX: TER • WWW.TERRACOMRESOURCES.COM 19
OPERATIONS PHOTOS
10,000 tonne train being loaded
at the Train Load Out
Coal Washery in operation
ASX: TER • WWW.TERRACOMRESOURCES.COM 20
JORC RESOURCES AND RESERVES
Resource 1 Mt
Measured 30.2
Indicated 11.6
Inferred 2.0
Total 43.8
Reserve 2 Mt
Proved 15.3
Probable 12.1
Total 27.4
Marketable Reserve 2 Mt
Proved 12.7
Probable 9.6
Total 22.3
0
5
10
15
20
25
30
35
40
45
50
RESOURCE
Measured Indicated Inferred
0
5
10
15
20
25
30
35
40
45
50
RESERVE
Proved Probable
JORC Resources JORC Reserves
ASX: TER • WWW.TERRACOMRESOURCES.COM 21
REHABILITATION AND ENVIRONMENT
✓ Significant progress of rehabilitation activities at Blair Athol
• Queensland’s Department of Science (DES) issued its Financial Assurance decision for the Blair Athol Mine on 1 June 2020,
being an amount of $72.1 million (approximately $8 million less compared to when the asset was acquired in May 2017).
• The capping of the old tailings storage facility completed ahead of schedule as part of the mining operations process.
• Advancing face rehabilitation being completed, which is aimed at significantly reducing rehabilitation activities at the end of the
mine life.
Image – Current Growth of Area 53 Rehabilitation Completed in mid to late 2017
ASX: TER • WWW.TERRACOMRESOURCES.COM 22
COMPLETED REHABILITATION – TAILINGS DAM
BEFORE: 2015 pre ownership
ASX: TER • WWW.TERRACOMRESOURCES.COM 24
QUEENSLAND EXPANSION | Organic Growth from Strategically Located Assets
The BA acquisition revalues TerraCom’s Australian portfolio through providing a hub for their
development across major coal basins in Queensland including:
Northern Galilee Project (1.9Bt JORC 20043) is large thermal resource with multi pit potential crossed by under-utilised rail and port system
Springsure Project* (190Mt JORC 20043) a high grade thermal/PCI resource adjacent to existing rail infrastructure with expansion potential into adjoining Fernlee Project (EPC1103)
* Note Springsure is 87% owned by TerraCom and Fernlee is 100% owned by TerraCom
ASX: TER • WWW.TERRACOMRESOURCES.COM
KANGALA COLLIERY
30
THERMAL COAL 3.2MtpaROM
Domestic 2Mtpa off-take contract to 2023
Sales to Eskom 2.0Mtpa
Ownership 70.5% with operational control
OPEN PIT
truck & shovel operation
~1.8:1 strip ratio
LoM extension with adjacent Eloffacquisition
0.7
1.6 2.0
2.4 2.6 2.4 2.0
0.1
0.2
0.3
0.3 0.2 0.1
-
2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY
COAL SALES
Domestic Export
ASX: TER • WWW.TERRACOMRESOURCES.COM 31
THERMAL COAL 3.7 MtpaROM
Domestic
65%
1.6Mtpa to 2023 at negotiatedpricing
35% API4-linked
Exportcontracted ~650Ktpa to 2021
6,000Kcal API4 spot marketpricing
Ore Reserves 54.8Mt
Ownership 49% with operational control
Underground room and pillar
Seam production three sections
OPEN PITtruck and shovel operation
~3:1 strip ratio
NEW CLYDESDALE COLLIERY
0.2
1.4 1.7 1.8
0.3
0.8 0.8 0.8
2017 FY 2018 FY 2019 FY 2020 FY
COAL SALES
Domestic Export
ASX: TER • WWW.TERRACOMRESOURCES.COM 32
THERMAL COAL 3.7 Mtpa ROM from 2020
Long term (2020)1.2Mtpa 15% ash, 5500Kcal Export coal
continuation/extension of current Eskom offtake
Short term contract2.4Mtpa
negotiating longer term offtake
Ore Reserves
55.4Mt
current operations fully regulated
Paardeplaats Mining Right and S11 granted
Ownership 49% with operational control
OPEN PITtruck and shovel operation
~2.5:1 strip ratio going forward
NORTH BLOCK COMPLEX
-
0.5
1.0
1.5
2.0
2.5
3.0
2019 FY 2020 FY
COAL SALES
Domestic Export
ASX: TER • WWW.TERRACOMRESOURCES.COM 33
• Project fully regulated
• Surface Rights acquired
• CSA signed with Eskom for 1.2Mtpa
• First coal delivery to Eskom in February 2020
• 100kt of coal sales in April 2020
JORC 2012-compliant Resource
75.8Mt
Ore Reserves 9.15Mt
Ownership 49% with operational control
Domestic thermal coal projected
1.2 Mtpa
OPEN PIT
truck and shovel operation
~3:1 strip ratio
crush and screen blending operation
LoM 6 years
UBUNTU COLLIERY
-
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2020 FY
COAL SALES
Domestic Export
35
THERMAL COAL PROJECT Contiguous to Kangala, allowing for low cost expansion, long-term sustainability
6,146.7haSurface Rights
included
8,168ha
Mining Right granted
528Mt JORC 2012-compliant Resource in open pit
areas only
Potential to double up production in long term
Eloff stand-alone project of similar scope to Kangala
Kangala extension allows for uninterrupted production of 2.4Mtpa
ELOFF – KANGALA EXTENSION AND ELOFF STAND ALONE
36
BERENICE CYGNUS 50% owned
• Blend coking and thermal coal project
• 1.35 billion tonne JORC Resource
• 10Mtpa open cut operation viability confirmed
• 20km from existing railway infrastructure
• Application submitted for mining right and
environmental authorisation
ARNOT SOUTH 50% owned
• Thermal coal project
• 206.6Mt JORC Resource
• Objectives post acquisition:
• drill out a Measured Resource
• complete Feasibility Study
• Secure Mining Right
7
6
ARNOT SOUTH AND BERENICE CYGNUS
ASX: TER • WWW.TERRACOMRESOURCES.COM 38
COMMODITY DIVERSIFICATION: ANGLO-AFRICAN MINERALS PLC6
3
Term Sheet
AAM’s bauxite resources are located in the Republic ofGuinea, one of the world’s leading countries in terms ofproven bauxite reserves (~25%)
SUMMARY
PROJECTS• Forward African Resources (FAR). A project targeting 73.0 million
metric tons of export quality bauxite resources.
• Société Minière d’Alumine S.A. (Somalu). A project with inferredresources of 459.0 million metric tons of export quality bauxiteresources.
• Tougue Bauxite and Alumina Corporations S.A. (Toubal). A project targeting 865.0 million metric tons of export quality bauxite resources.
FAR• Highly prospective exploitation license with a total area of
170 km2 located in the Dubreka / Kindia Prefecture some 170 km North-East of Conakry and some 25 km from the existing rail spur that connects the Kindia mine with the Port of Conakry.
• The Measured Mineral Resource for the three of the five plateaux in line with JORC Code (2012):
• 73 million metric tons, averaging 39.9% total alumina and 4.8% total silica
• Measured 26 million metric tons, Indicated 11million metric tons and Inferred 36 million metrictons
TERM SHEET Binding term sheet subject to customary conditions precedent for the benefit ofTerraCom, including due diligence. In return for the granting of an exclusivityperiod until 31 August 2020, TerraCom has agreed to pay a US$500,000refundable deposit that is first ranking over all assets of AAM.
ASX: TER • WWW.TERRACOMRESOURCES.COM 40
RESOURCES AND RESERVES STATEMENT
RESERVES RESOURCES RESERVES RESOURCES
Proved Probable Total Measured Indicated Inferred TotalAttributable to
TerraCom
Attributable to
TerraCom
Tenement Mt Mt Mt Mt Mt Mt Mt Mt Mt
AUSTRALIA 15.3 12.1 27.4 30.2 238.6 1,903.0 2,171.8 27.4 2,171.8
Blair Athol1,2 15.3 12.1 27.4 30.2 11.6 2.0 43.8 27.4 43.8
Springsure3 - - - - 43.0 148.0 191.0 - 191.0
Northern Galilee –
Hughenden Project3 - - - - 133.0 1,076.0 1,209.0 - 1,209.0
Northern Galilee –
Clyde Park Project3- - - - 51.0 677.0 728.0 - 728.0
SOUTH AFRICA 134.2 13.1 147.3 676.5 1,246.1 582.3 2,504.9 78.4 1,264.3
Kangala4,5 28.3 - 28.3 51.3 15.0 32.3 98.7 20.0 69.6
NCC4,5 48.2 6.6 54.8 88.8 41.8 6.0 136.7 26.9 67.0
Ubuntu4,5 9.2 - 9.2 31.7 39.4 4.7 75.8 4.5 37.1
Arnot South4,5 - - - 2.3 65.3 139 206.6 - 103.3
Eloff4,5 - - - 11.8 266.0 250.6 528.3 - 258.9
NBC4,5 48.5 6.5 55.0 65.7 17.7 25.4 108.7 27.0 53.3
Berenice Cygnus4,5 - - - 424.9 800.9 124.3 1,350.1 - 675.1
TOTAL 149.5 25.2 174.7 706.7 1,484.7 2,485.3 4,676.7 105.8 3,436.1
ASX: TER • WWW.TERRACOMRESOURCES.COM 41
REFERENCES
1 – Refer to ASX Announcement on 30 September 2019 for further information and clarification on the Blair Athol JORC Resource. The Company confirms that it is not aware of any
new information or data that materially affects the information included in the original announcement; and that all material assumptions and technical parameters in the
announcement made in the original announcement continue to apply and have not materially changed.
2 – Refer to ASX Announcement on 30 September 2019 for further information and clarification on the Blair Athol JORC Reserve. The Company confirms that it is not aware of any
new information or data that materially affects the information included in the original announcement; and that all material assumptions and technical parameters in the
announcement made in the original announcement continue to apply and have not materially changed.
3 – Refer to ASX Announcement on 30 September 2019 for further information and clarification on the Northern Galiliee (Hughenden and Clyde Park) and Springsure JORC
Resource. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcement; and that all
material assumptions and technical parameters in the announcement made in the original announcement continue to apply and have not materially changed.
4 – Refer to Universal Coal plc ASX Announcement on 30 September 2019 for further information and clarification on the Kangala, NCC, Ubuntu and NBCJORC Reserve. The
Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcement; and that all material assumptions
and technical parameters in the announcement made in the original announcement continue to apply and have not materially changed.
5 – Refer to Universal Coal plc ASX Announcement on 30 September 2019 for further information and clarification on the Kangala, NCC, Ubuntu, Arnot South, Eloff, NBC and
Berenice Cygnus JORC Reserve. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original
announcement; and that all material assumptions and technical parameters in the announcement made in the original announcement continue to apply and have not materially
changed.
6 – Refer to ASX Announcement on 24 February 2020. The Company is currently progressing the due diligence on AAM and therefore at this stage is classing the resource tonnage
as an exploration target. The potential quantity and grade of an exploration target is conceptual in nature, there has been insufficient exploration to determine a mineral resource and
there is no certainty that further exploration work will result in the determination of mineral resources or that the production target itself will be realised. Further evaluation work and
appropriate studies are required to establish sufficient confidence that the target will be met.