a new paradigm for the pilbara - melbourne mining club · 2016. 12. 15. · this presentation has...

A New Paradigm for the Pilbara Melbourne Mining Club – 15 November 2016

Hendrianto Tee – Business Development Director

Disclaimer and Notices

2

General information and disclaimer

This presentation has been prepared by and issued by Brockman Mining Limited (“Brockman” or “the Company”) for the purposes of

providing background information regarding Brockman, its subsidiaries and its activities, as at the date of this presentation. This presentation

is in summary form and does not purport to be all inclusive or to contain all information which any recipients may require in evaluating a

possible investment in Brockman or that would be required in a prospectus or a product disclosure statement prepared in accordance with

the requirements of the Corporations Act 2001 (Cth). This presentation should be read in conjunction with Brockman's other periodic and

continuous disclosure announcements, which are available at www.asx.com.au.

No representation or warranty, express or implied, is given as to, and recipients must not rely on, any information, statement or opinion

contained in this presentation, or its accuracy, reasonableness or completeness. Except for statutory liability which cannot be excluded,

each of Brockman, its affiliates, directors, employees, advisers and agents expressly disclaims any responsibility for the currency, accuracy,

reliability or completeness of the material contained in this presentation and excludes all responsibility and liability whatsoever (including

without limitation, liability for negligence) for any loss or damage of any kind arising as a result of the use of, or reliance on, the information

in this presentation. This presentation does not constitute investment advice or financial product advice (nor tax, accounting or legal advice) and has been

prepared without taking into account the investment objectives, financial situation or particular needs of any investor, potential investor or

any other person. Recipients should conduct their own investigation and perform their own analysis in order to satisfy themselves as to the

accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment

decisions. Recipients should not act or refrain from acting in reliance on this presentation.

This presentation is for information purposes only. This presentation should not be considered an invitation, offer, solicitation or

recommendation to subscribe for or purchase any securities in the Company in any jurisdiction. No agreement to subscribe for securities in

the Company will be entered into on the basis of this presentation.

This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction.

Recipients should inform themselves of the restrictions that apply in their own jurisdiction. Failure to do so may result in violation of security

laws in such jurisdiction.

http://www.asx.com.au

Disclaimer and Notices

3

Forward looking statements

This presentation may contain certain forward looking statements and projections, including without limitation, estimated resources and reserves,

planned production and operating cost profiles, planned capital requirements, planned strategies and corporate objectives.

Forward looking statements are subject to a variety of unknown risks, uncertainties and other factors that could cause actual events or results to

materially differ from those reflected in any forward looking statements, including but not limited to: uncertainties related to the availability of future

financing necessary to undertake activities on Brockman’s properties; uncertainties relating to general economic and global f inancial conditions; stock

market fluctuations including fluctuations in Brockman’s share price; iron ore demand and price movement risks; risks relating to access to infrastructure;

risks associated with Brockman being subject to environmental laws and regulations; risks relating to Brockman's need for governmental licenses, permits

and environmental approvals; risks associated with Brockman being subject to government regulation, including changes in regulation; operational risks,

including the emergence of previously underestimated technical challenges; uncertainty regarding reliance on key personnel; the possible recalculation

or reduction in Brockman's reserve and resource estimations; uncertainties related to the outcome of studies; risks relating to the integration of businesses

and assets acquired by Brockman; uncertainties related to the competitiveness of the industry; uninsured risks and hazards; native title risks; the risk that

Brockman's title to its properties could be challenged; risks related to default by joint venture parties (if any), contractors and agents; inherent risks

associated with litigation; risks associated with potential conflicts of interest; risks related to effecting service or process on directors resident in foreign

countries; risks related to Brockman’s lack of a dividend history; uncertainty regarding foreign currency fluctuations; and inherent uncertainties and risks

associated with mineral exploration and mining development.

Any forward looking statements in this presentation are based on the assumptions, beliefs, expectations and opinions of management as of the date

hereof and which Brockman believes are reasonable in the circumstances, but no assurance can be given that these expectations will prove to be

correct. These assumptions include but are not limited to that Brockman’s exploration of its properties and other activities will be in accordance with

Brockman’s public statements and corporate objectives, that there will be no material adverse change affecting Brockman or properties, anticipated

costs and timing for Brockman’s activities and such other assumptions as set out herein.

Any such forward looking statements and projections are estimates for discussion purposes only and should not be relied upon. They are not guarantees

of future performance and involve known and unknown risks, uncertainties and other factors many of which are beyond the control of the Company.

The forward looking statements and projections are inherently uncertain and may therefore differ materially from results ultimately achieved.

Each of Brockman, its affiliates, directors, employees, advisers and agents do not make any representation or warranty, express or implied, concerning

the accuracy of any forward looking statements, and does not undertake any obligation to update or revise any information or any of the forward

looking statements in this presentation based on new information, future events or otherwise except to the extent required by applicable laws or the ASX

Listing Rules.

Brockman Brief

Brockman is listed on SEHK (159) and

ASX (BCK)

Brockman operates through two

segments:

1) Iron ore mine acquisition,

exploration and development in

Western Australia:

Marillana Iron Ore Project

Ophthalmia Iron Ore Project

West Pilbara Exploration

2) Copper ore concentrate

production and sales in China.

Ocean Line Group is the single largest

shareholder with 21.92%.

o Wholly owned, operates and

manages a modern dry bulk fleet of

more than 30 oceangoing vessels.

4

Capital Structure

Ordinary shares 8.4 billion

Share price

(4-Nov-16) HKD 0.109

Market capitalisation HKD 913.6 million

(A$ 153.5 million)

Cash HKD 59.7 million

(A$ 10 million)

Brockman Pilbara Hematite Assets

5

A New Paradigm for the Pilbara New price environment: successful iron ore projects in the Pilbara require new

strategies with lateral thinking.

Project developments must include strategies to improve sequencing, more rigorous capital allocation and adoption of innovative logistics solutions to move down the cost-curve.

The new Pilbara paradigm – start small, low capital, fit for purpose solutions, get to market quickly and preserve options for growth.

Practical Implications

Exploit options to offer niche product.

Minimize capex by using existing infrastructure where possible.

Dramatically reduce time to construct by smart project phasing.

Utilising new breed of road trains as an advantage and look for lighter rail options.

Reverse the Pilbara mindset - share infrastructure and reduce costs.

Be practical and nimble – just like the first generation of Pilbara producers.

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Marillana – Quality in the heart of the Pilbara

Marillana is the largest single deposit outside of the majors and could support a 20Mtpa operation for more than 20 years.

Contains a substantial Mineral Reserve over 1.0 billion tonnes (JORC compliant).

Free dig (no drill & blast), low strip

ratio (0.8:1 LOM), excellent continuity in thickness and grade.

Very marketable 60.5% to 61.5% Fe high grade coarse fines with excellent sintering capability.

Key approvals already in hand.

7

Brockman strategy for Marillana’s development

Marillana is well studied and understood

with extensive beneficiation testing.

Wide and consistent orebody provides

opportunities for a staged development to

minimise capital and time to market.

Start with a small project at western side of

the orebody, exploiting the option to utilise

existing infrastructure in the Pilbara (State

roads and Utah Point port).

Commercial in current price environment;

builds cash flow and momentum.

Creates further optionality for the main

orebody with product utilised by end-users;

opens up higher tonnage development.

Deploy lighter rail options, supporting up to

30Mtpa capacity; build to share

infrastructure.

8

Marillana Stage-1: Project Maverick

Small, quick and capital light

Relates to a small portion of the total ore reserves of Marillana.

Open pit, simple mining with an overall strip ratio of 0.31:1 (waste/ore) during the first 7-year operation.

Proven technology for processing of the ores.

Favourable economics of early phase. o Niche development 2.5 to 3.0 Mtpa for 7 years.

o Quick to market – 9 month construction period.

o Low capital requirement – mine site less than A$ 60 million.

Existing port available – Utah Point.

Utilising new breed of road trains on existing roads for transport.

All key State and Commonwealth Government approvals in hand. o Q1 2017 – execution of key commercial agreements; project funding closure.

o Q2 2017 – construction commences.

o Q1 2018 – commissioning and first shipment.

9

10

Capital light, practical technology, phased step up

Leverages Brockman’s presence in the market through Maverick.

Phased 10 + 10 Mtpa processing plants.

Reduces capital, minimises time to market and de-risks commissioning.

Logistics solution to target low capital and cost sharing.

Innovative, ballast-less light rail for Pilbara (axle loadings 22 – 26 tonnes).

Design to include future Opthalmia and include spare capacity for third

parties.

Requires port development for a single berth at South West Creek in Port

Hedland.

Marillana Stage 2: Project Agincourt

Low capital

Phased development

Fit for purpose solutions

Get to market

Options for growth

11

The New Paradigm for the Pilbara

APPENDIX 1

MARILLANA PRODUCTION &

INFRASTRUCTURE STRATEGIES 12

Located approximately 100km north west of the Newman township

Mine operating site is contained between tenement boundaries, Weeli Wolli Creek and BHPB railway.

Detrital resource strike length 14.5km (west to east), average width 1.5km.

Marillana Mine Site

13

Marillana – Key Features

Located in the Pilbara region, Western Australia the hub of Australian iron ore

production.

100% owned by Brockman (HKEx: 0159; ASX: BCK).

A substantial iron ore Mineral Reserve over 1.0 billion tonnes (JORC Compliant)

supporting production of 20+ million tonnes per annum (Mtpa) for at least 20 years.

All key State and Commonwealth approvals for the development of the Marillana

Project have been obtained.

Product: 60.5% to 61.5% Fe high grade, high yield coarse fines with high sintering

capability – high acceptance with any steel mills.

Targeted production of 20+ million tonnes per annum (Mtpa) for at least 20 years,

which is to be developed in 2 stages:

o Stage-1: 2.5 Mtpa (Q1-2018) for 7 years (Project Maverick).

o Stage-2: 20 Mtpa (Q1-2021) for 20 years (Project Agincourt).

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Marillana – Development

Brockman has completed all key planning work for Marillana, including:

a scoping study between 2007 – 2008;

preliminary feasibility study in 2009;

definitive feasibility study in 2010 (DFS);

front end engineering and design in 2011 (FEED); and

ongoing value adding studies.

Extensive beneficiation (processing) test work has been completed as part of the

DFS and FEED studies on ore samples taken from the deposit.

15

Project Maverick

Relates to a small portion of the total ore reserves of Marillana.

Open pit, simple mining with an overall strip ratio of 0.31:1 (waste/ore) during the

first 7-year operation.

Matured modules for processing of the ores.

9 months construction period.

All key State and Commonwealth approvals have been obtained.

Existing port available, Western Australia government owned Utah Point. Port

allocation and stockyard yard lease to be finalized.

Mine to port transportation using Road Train on existing road.

Existing utilities network.

Mine site capital cost of less than A$60 million.

FOB cost below A$48/dmt (mine gate cost A$17.0/dmt).

Requires only 100 people on the site.

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17

Maverick Product

Fe (%) SiO2 (%) Al2O3 (%) P (%) LoI (%)

61.5 5.75 3.2 0.075 1.89

Product Specification

Maverick product will be coarser compared to average of whole Marillana

considering some ores from Pit-1 and Pit-2 will not go through crushing but direct to

DMS plant after scrubbing and screening.

The attractiveness of the Marillana/Maverick product is in its high Fe content and the

coarseness of its size. These benefits offset the relatively high impurities of the ore. The

CISRI (China Iron & Steel Research Institute) of report indicates that by using the coarse

Maverick product as a 10% to 25% replacement of other major Australian seaborne

ores, a steel mill could achieve an average increase in sinter productivity of 5% to

10%, with the added benefit of a 5% reduction in fuel usage.

11.2-8.0mm 8.0-2.0mm 2.0-0.8mm

19% 50% 31%

Product Sizing

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Maverick - Mine Layout Drawing A single pit (Pit-1) will be established for Maverick inside

Marillana tenement.

The proposed pit has been extensively studied in the

earlier definitive feasibility study (DFS) for the Marillana.

The diagram to the right shows the location of the pit

(in purple) superimposed over a plan of the western half

of the Marillana.

Road Haulage to

Port Hedland

Marillana is located 320km from Port Hedland’s

Utah Point

Brockman’s coarse iron ore fines will be transported to Utah Point using efficient Road Trains.

19

Port Hedland

Port Hedland is managed by the Pilbara Ports Authority (PPA), a Western Australia government enterprise.

PPA owns 4 of the 19 existing

berths at Port Hedland with remaining berths owned by BHP, FMG and Roy Hill.

Utah Point is one of the 4 PPA

berths that exports iron ore for various junior producers.

South West Creek, currently under development for another 2 berths.

20

South West Creek Port

Started operation 2014/15

Utah Point

Utah Point Bulk Handling Facility is currently under the management of PPA. It

was constructed in 2010 to facilitate export of bulk products, currently iron ore

and manganese.

Utah Point assets include:

o 272m long berth with a harbour depth of 14.5m.

o 7,500 tonnes per hour ship loader.

o Two stockyard product storage facilities.

o Automated cavotec mooring system.

Over 20Mtpa of “C” Class allocation in the world’s premium iron ore port

(there may be the potential for Utah point BHF to ship additional volumes

subject to loading efficiencies).

PPA has granted a non-exclusive stevedoring licence to Qube Bulk Pty Ltd

(Qube). Qube then has separate contractual arrangements with Utah Point

users (currently: Atlas Iron, Mineral Resources and Consolidated Minerals).

21

Maverick Estimated Schedule

22

September to December 2016 – Negotiation with all the contractors.

Q1 2017 - Executable commercial agreements, including: o Port agreement o The logistics services agreement for road haulage; o Mining, processing and site administration capital development and operating

agreement; and o Product offtake agreements.

Q1 2017 – Project funding closure.

Q2 2017 to Q1 2018 – Construction.

Q1 2018 - Commissioning and first ore on ship.

Project Agincourt

Mine plan completed for Agincourt’s 25/10 + 25/10Mtpa (detrital

feed/product) for 20 years mine life.

Mining method will be conventional (free dig) using backhoe excavators and

dump trucks. Life of mine strip ratio is 0.84:1.

The construction of 10 + 10 Mtpa processing plant will be executed in 2 stages,

which reduces start-up capital and de-risks commissioning.

A new scoping study (Agincourt Study) completed in June 2016 provided an

updated capital cost for DMS (Dense Media Separation) processing plant with

its supporting infrastructure as well as processing cost.

Agincourt Study provided an encouraging result for further development of

Brockman’s phased development plan.

Agincourt Study was done on the back of previously completed (2010)

Definitive Feasibility Study for a single 20Mtpa processing plant as well as its

various optimisation studies conducted between 2011 to 2014.

23

Project Agincourt – Infrastructure Solution

Rail

A fit for purpose solution that would accommodate Marillana and Opthalmia (total

30Mtpa) with a spare capacity for other third parties.

An initial study for a Ballast-less track system developed by Ausbeam Technologies

(study by Engenium) completed in June 2016.

Axle loading 22 – 26 tonnes

Rail operation to be developed with a qualified third party operator.

Port

Developing a cape size single berth at South West Creek (SWC). The berth will have

a capacity of 30Mtpa with the ability to to cater to 180-200 thousand tonnes cape

vessels.

Use bottom-dump rail cars for reduced capital.

Option to develop a second berth for another 30Mtpa, bringing SWC port total

output to 60Mtpa.

24

Brockman

Rail – to

Port

Hedland

25

APPENDIX 2

MARILLANA RESOURCE AND

RESERVE

Competent Person Statement

27

The Mineral Resources and Ore Reserves referred to in this presentation relating to Marillana are reported in accordance with the

Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 Edition (“JORC Code 2004”). It has not

been updated since to comply with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves

2012 Edition (“JORC Code 2012”) on the basis that the information has not materially changed since it was last reported to ASX on 9

September 2010. When reserves and resources are reported under the JORC Code 2004, the ore reserve figures (tonnage and grade)

are included within the mineral resource figures (tonnage and grade). Estimates of Mineral Resources, Ore Reserves, recoveries and

operating costs are largely dependent on the interpretation of geological data obtained from drill holes and other sampling

techniques, and feasibility studies which derive estimates of operating costs based on anticipated tonnage, expected recovery rates,

equipment operating costs and other factors. No assurance can be given that the Mineral Resources and Ore Reserves presented in

this presentation will be recovered at the quality or yield presented. In addition, it should not be assumed that the Mineral Resources

and Ore Reserves reported under the JORC Code 2004 are capable of being directly reclassified under the JORC Code 2012. Competent Persons’ Statements

The information in this presentation that relates to Mineral Resources and Ore Reserves is based on and fairly represents, information and

supporting documentation prepared by Mr I Cooper, Mr J Farrell and Mr A Zhang.

The Ore Reserves were compiled by Mr Cooper, who is a Member of Australasian Institute of Mining and Metallurgy and a former full-

time employee of Golder and Associates. Mr Cooper has sufficient experience in Ore Reserve estimation relevant to the style of

mineralisation and type of deposit under consideration to qualify as Competent Person as defined in the JORC Code 2004. Mr Cooper

consents to the inclusion in this presentation of the matters based on this information in the form and context in which it appears.

Mr Farrell, who is a Member of the Australasian Institute of Mining and Metallurgy and a former full-time employee of Golder and

Associates, produced the Mineral Resource estimates based on the data and geological interpretations provided by Brockman. Mr

Farrell has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that

he undertook to qualify as a Competent Person as defined in the JORC Code 2004. Mr Farrell consents to the inclusion in this

presentation of the matters based on this information in the form and context in which it appears.

Mr Zhang, who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Brockman, provided the

geological interpretations and the drill hole data used for the Mineral Resource estimation. Mr Zhang has sufficient experience that is

relevant to the style of mineralisation, type of deposit under consideration and to the activity that he undertook to qualify as a

Competent Person as defined in the JORC Code 2004. Mr Zhang consents to the inclusion in this presentation of the matters based on

this information in the form and context in which it appears.

Mineral Resource Summary

Beneficiation Feed

Mineralisation Type JORC Resource

Classification

Tonnes

(million)

Grade

(% Fe)

Detrital Measured 173 41.6

Indicated 1,036 42.5

Inferred 201 40.7

Pisolite Indicated 117 47.4

Total Tonnes

Measured 173 41.6

Indicated 1,154 43.0

Inferred 201 40.7

Total 1,528 42.6

Mineral Resources are inclusive of Ore Reserves

28

Mineral Reserve Summary

Detrital Ore Reserve

JORC Reserve Classification Tonnes

(million)

Fe

(%)

Proven 133 41.6

Probable 868 42.5

Total 1.001 42.4

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APPENDIX 3

OPHTHALMIA PROJECT

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Competent Person Statement

31

In accordance with ASX Listing Rule 5.23 and the JORC Code 2012, Brockman confirms that the Mineral Resources referred to in this presentation relating to Ophthalmia were originally sourced from the final update of the Mineral

Resources of the Ophthalmia project announced to ASX on 1 December 2014. Since then there has been no further exploration drilling. Brockman confirms that it is not aware of any new information or data that materially affects the information included in that announcement and that all material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed.

Ophthalmia – DSO Operation

Located only 70 – 80 km from Marillana, providing opportunities to connect to

the Marillana Project infrastructure solution.

Pre-Feasibility study currently ongoing.

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Ophthalmia - Mineral Resource Summary

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*CaFe represents calcined Fe and is calculated by Brockman using the formula CaFe = Fe% / ((100-LOI%)/100)

Deposit JORC Resource

Classification

Tonnes

(million)

Fe

(%)

CaFe*

(%)

SiO2

(%)

Al2O3

(%)

S

(%)

P

(%)

LOI

(%)

Kalgan Creek

Indicated 34.9 59.3 62.7 4.08 4.57 0.009 0.183 5.49

Inferred 24.4 59.5 63.2 4.38 3.90 0.007 0.157 5.81

Sub Total 59.3 59.4 62.9 4.21 4.29 0.009 0.173 5.63

Coondiner

(Pallas and Castor)

Indicated 140.5 58.5 62.0 5.18 4.46 0.007 0.176 5.71

Inferred 17.1 58.1 61.5 6.06 4.45 0.008 0.155 5.47

Sub Total 157.6 58.4 62.0 5.52 4.45 0.008 0.174 5.64

Sirius

Indicated 105.0 60.4 63.7 3.54 3.97 0.007 0.178 5.22

Inferred 19.0 60.2 63.4 4.09 3.83 0.009 0.168 5.14

Sub Total 124.0 60.3 63.6 3.62 3.95 0.007 0.177 5.20

Ophthalmia

Project

Indicated 280.4 59.3 62.7 4.42 4.23 0.007 0.178 5.45

Inferred 60.5 59.3 62.8 4.82 4.35 0.006 0.160 5.43

Total 340.9 59.3 62.7 4.49 4.25 0.007 0.175 5.45

Melbourne Mining Club Cutting Edge Series 15th November 2016

DISCLAIMER The information contained in this presentation has been prepared by Magnetic Resources NL (MAU). This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any securities in MAU. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile statement or offer information statement. This presentation is not subject to the disclosure requirements affecting disclosure documents under Chapter 6D of the Corporations Act. This presentation may contain certain forward looking statements and projections regarding estimated, resources and reserves; planned production and operating costs profiles; planned capital requirements; and planned strategies and corporate objectives. Such forward looking statements/projections are estimates for discussion purposes only and should not be relied upon. They are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors many of which are beyond the control of Magnetic Resources NL. The forward looking statements/projections are inherently uncertain and may therefore differ materially from results ultimately achieved. Magnetic Resources NL does not make any representations and provides no warranties concerning the accuracy of the projections, and disclaims any obligation to update or revise any forward looking statements/projects based on new information, future events or otherwise except to the extent required by applicable laws. While the information contained in this presentation has been prepared in good faith, neither MAU or any of its directors, officers, agents, employees or advisors give any representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. Accordingly, to the maximum extent permitted by law, none of MAU, its directors, employees or agents, advisers, nor any other person accepts any liability whether direct or indirect, express or limited, contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the information or for any of the opinions contained in this presentation or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this presentation. COMPETENT PERSON’S STATEMENT Information in this report that relates to Exploration is based on information reviewed or compiled by George Sakalidis BSc (Hons) who is a member of the Australasian Institute of Mining and Metallurgy. George Sakalidis is a director of Magnetic Resources NL. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. George Sakalidis consents to the inclusion of this information in the form and context in which it appears in this report.

Magnetic is listed on the Australian Stock Exchange (ASX Code: MAU).

Capital Structure ASX:MAU

Shares on issue 141,538,659

Options and contributing shares on issue 37,326,005

Fully diluted shares on issue 178,864,664

Current share price $0.08

Market capitalisation $11.3m

Company Overview

Experienced Board Position Held

George Sakalidis Executive Director

Eric Lim Non-Executive Chairman

Julien Sanderson Non-Executive Director

Ben Donovan Company Secretary

Six new gold projects within 20km of the 7Moz Wallaby deposit within the Laverton

field WA.

Two well defined gold rich shear zones Mt Jumbo (>1.3km) and Marabou (2.3km) and at least 12 intrusive Jupiter style Targets. At least 4 RC holes are being drilled at Mt Jumbo in November.

New I.P. chargeability anomalies have been defined over five prospects HN3-HN7 mainly associated with historical gold pits, existing gold intersections, structures and shear zones.

.

Leonora-Laverton Gold Projects Background

Background The Leonora-Laverton district is well endowed with large world class gold deposits having over

34Moz (mined plus resources), second to the Kalgoorlie region in WA.

A regional study by the Company has so far identified a total of 6 project areas totalling 283 sq km that have the potential to host large scale deposits These tenements are within 5-40km of existing gold operations, opening the possibility for toll treating.

The objective of Magnetic Resources’ gold exploration program is to identify large gold deposits of

1Moz or greater utilising the geological and geophysical characteristics of the known surrounding deposits.

The company already has two well defined gold mineralised shear zones called Marabou (2.3km) and Mt Jumbo (>1.3km) and 12 intrusive style Wallaby pipe like targets.

A number of very large deposits are present including Wallaby (>7.1Moz mined plus resource), Sunrise Dam (>10Moz mined), Granny Smith (>2Moz mined), Gwalia (7.3Moz mined plus resource), Westralia (2.4Moz mined plus resource) and Jupiter (1.3Moz mined resource). The Mt Jumbo and Hawks Nest tenements are only 10km north of the Wallaby deposit.

Laverton Gold Mines

Laverton Gold Mines and Major Faults

Laverton Gold Mines and all Faults

Laverton Gold Mines, Faults and Ground Magnetic Surveys

Laverton Gold Mines, Faults, Ground Magnetics, Drill Hole Max Gold.

Laverton Gold Mines, Faults, Ground Magnetics, Drill Hole Max Gold, Aeromagnetics

Leonora-Laverton Gold Project – Wallaby NS Section

Similar characteristics to the Wallaby deposit:

Magnetite rich pipe

Syenite intrusions

Multiple Horizontal Lodes

Major Faults in vicinity

Source: Salier BP et al (2004), Mineralium Deposita 39: 473-494

Laverton Gold Project – Mt Jumbo Shear zone greater than 1.3km and 10km north of 7Moz Wallaby Deposit

1.3km-long NNE shear target zone. This forms a splay off

the main NS fault that passes adjacent to Wallaby.

Historical drilling (Normandy Exploration, Mt Ajax Interim Report Oct 1996 to April 1997) of over 78 RC and Diamond holes completed along shear zone.

Average depth of historical holes is only 90m. Many new recent discoveries have been made by deeper drilling.

Elevated gold grades: 2m @ 4.6g/t from 110m in hole AXC064, 15m@ 2.4g/t from 97m in hole AXC0134, 4m @ 7.2 g/t from 104m in hole AXC048.

I.P. has identified a medium strength chargeability and overlaying conductive zones associated with the gossanous Fe rich shear zone.

Four 225m long RC/Diamond drill holes are in progress to test for depth continuity of the shear zone.

Historical drilling, detailed aeromagnetics, completed I.P. and RC holes.

Laverton Gold Project – Mt Jumbo Drill Section

Significantly, the mineralisation in some cases appears to be flatly dipping to the east with evidence of multiple mineralized zones.

Similar in geometry to other deposits in the region including the Wallaby deposit (>7Moz).

A 60m diamond tail has commenced this week to extend drillhole MMJRC01.

Historical drilling cross section A-A


The mineralised gold zones are associated with ironstone/gossan which are open down dip.

A medium strength I.P. anomaly extends the prospective zone down dip and to the east.

A 60m diamond tail has commenced this week to extend drillhole MMJRC02.

Historical drilling cross section B-B


Historical drilling cross section C-C

New drilling intersections in MMJRC04 have shown up several Fuchsite and Quartz alteration zones which are still open at depth.

The target depth of 225m will

be completed with a 30m diamond tail.


The mineralisation appears to be steeply dipping to the east in the southern part of the shear zone.

These open zones

provide encouragement for down dip drilling in the future.

Historical drilling cross section D-D

Marabou shear zone greater than 2.3km long

Shear zone well defined by ground magnetics and ground EM.

Strongly anomalous 2m @ 110g/t from 35m in drillhole LJA0035.

Strong I.P. chargeability anomaly down dip from anomalous gold intersection.

Gold zones defined by quartz veins and disseminated sulphides.

Laverton Gold Projects Marabou

Laverton Gold Projects Marabou

Laverton Gold Projects Hawks Nest 3

Sericite alteration of porphyry and unusual rock types including dolomitic sediments.

17 holes have grades above 1g/t Au and a high value of 1m @ 13g/t Au.

Extensive supergene zone at 30–40m depth over 400m x 300m.

Long I.P. lines designed to target mineralisation source below supergene zone have defined a strong chargeability anomaly which is planned to be tested by a 200m drillhole.


Well defined mafic units with WNW structures with shallow workings.

HNR17 rock chip had a high value of 51.7g/t within an ironstone.

IP lines designed to test for deeper mineralisation have located a strong chargeable zone associated with the steeply dipping ironstone.

800m x 150m sheared banded amphibolite.

Surface sample of 1.6g/t Au in working.

I.P. lines to test shear zone and two separate parallel lines across Emerald workings.

I.P. has defined three separate chargeable resistive zones. Two of these zones are associated with the Emerald workings.


2 x 400m diameter circular mafic units similar to intrusive style like Wallaby and Jupiter.

Intersection of NNW and NNE structures.

IP lines testing for deeper gold mineralisation have located medium strength chargeable zones.


Laverton Gold Projects Hawks Nest 3-6 Chargeability View

Leonora-Laverton Gold Project Locations Over 30 Moz mined in the region, and published resources second only to Kalgoorlie

Leonora-Laverton Gold Project

NNW Emerald workings at Hawks Nest 5

Mount Jumbo BIF

Emerald workings shaft at Hawks Nest 5

Hawks Nest 5 area

Leonora-Laverton Gold Project

Magnetic Resources NL Mount Jumbo Shear Zone Drilling Orbit Drilling October 2016

IRON ORE LOCATION - Close to Infrastructure

Magnetic Resources still maintains an interest in potentially economic iron ore deposits.

Several key projects representing >50 km of coarse grained premium quality magnetite targets.

Current focus are Kauring and Mount Joy.

All within 10 km of Government owned, open access railways.

CONTACT

George Sakalidis

Executive Director

+61411640337

[email protected]

Magnetic Resources provides a unique opportunity to invest in an emerging gold market within the world class Leonora-Laverton regions. Active programmes are in progress to determine optimum sites for follow up drilling within the Mt Jumbo followed by the Hawks Nest and Kowtah projects.

1

Melbourne Mining Club Presentation Melbourne – November 2016

2

Disclaimer

This presentation has been prepared by Troy Resources Limited (Troy).

• Summary of information: This presentation contains general and background information about Troy’s activities current as at the date of the presentation and should not be considered to be comprehensive or to comprise all the information that an investor should consider when making an investment decision. The information is provided in summary form, has not been independently verified, and should not be considered to be comprehensive or complete. It should be read solely in conjunction with the oral briefing provided by Troy and all other documents provided to you by Troy. Troy is not responsible for providing updated information and assumes no responsibility to do so.

• Not financial product advice: This presentation is not financial product, investment advice or a recommendation to acquire Troy securities and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances. Troy is not licensed to provide financial product advice in respect of its securities or any other financial products. Cooling off rights do not apply to the acquisition of Troy securities. Troy assumes that the recipient is capable of making its own independent assessment, without reliance on this document, of the information and any potential investment and will conduct its own investigation.

• Disclaimer: Each of Troy and its related bodies corporate and each of its respective directors, agents, officers, employees and advisers expressly disclaim, to the maximum extent permitted by law, all liabilities (however caused, including negligence) in respect of, make no representations regarding, and take no responsibility for, any part of this presentation and make no representation or warranty as to the currency, accuracy, reliability or completeness of any information, statements, opinions, conclusions or representations contained in this presentation. In particular, this presentation does not constitute, and shall not be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Troy.

• Forward looking statements: This presentaion contains “forward-looking statements” and “forward-looking information”, including statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, mineral reserves and resources, the financial position of Troy, industry growth and other trend projections. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “is expecting”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes”, or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will” be taken, occur or be achieved. Such information is based on assumptions and judgements of management regarding future events and results. The purpose of forward-looking information is to provide the audience with information about management’s expectations and plans. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Troy and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, changes in market conditions, future prices of gold, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in grade or recovery rates, plant and/or equipment failure and the possibility of cost overruns. Forward-looking information and statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which may prove to be incorrect. Troy believes that the assumptions and expectations reflected in such forward-looking statements and information are reasonable. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Troy does not undertake to update any forward-looking information or statements, except in accordance with applicable securities laws.

• Not an offer: This presentation is not, and should not be considered as, an offer or an invitation to acquire securities in Troy or any other financial products and neither this document nor any of its contents will form the basis of any contract or commitment. This presentation is not a prospectus. Offers of securities in Troy will only be made in places in which, or to persons to whom it would be lawful to make such offers. This presentation must not be disclosed to any other party and does not carry any right of publication. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of Troy.

• Monetary values: Unless otherwise stated, all dollar values are in Australian dollars (A$). The information in this presentation remains subject to change without notice.

3

“Make Gold Great Again…”

Started from Gold… …Giving Back to Gold

4

1 Background

2 Corporate

3 Operations

4 Exploration

5 Summary & Outlook

6 Appendix

5

Introduction

JV

ASX: Feb 1984

Over Three Decades of Gold Operations

65Koz Inferred Resource

Produced 509Koz

SANDSTONE

130Koz M&I Resource

Produced 273Koz SERTÃO

240Koz Indicated & Inferred Resources

Produced 259Koz ANDORINHAS

383Koz Au_Eq Probable Reserve

433Koz Au_Eq (70:1 Ag:Au) produced to date CASPOSO

6

Past • Outstanding project development record.

• Unique “old school” pioneering approach.

• One dimensional model ~ limited growth potential.

Present • Business transformation and organisational

restructuring.

• Focus on operational sustainability and risk management.

• Renewed funding on exploration opportunities.

Future • Multi-dimensional model ~ unconstrained growth.

• More conservative approach but still entrepreneurial.

• Concerted effort to increase Karouni mine life and take advantage of exceptional Guyana potential.

• Mid-tier, diversified, sustainable gold producer.

Troy – Past, Present, Future

FY2014 to H1 FY2016 Cashflow Before Funding & Karouni Capex

-50.0

-40.0

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Cashmargin,Brazil

Cashmargin,

Argentina

Capex &Exploration,Argentina

Corporate ExplorationKarouni,Guyana

Debtinterestand fees

Argentinarestructuring

Brazilclosurecosts

A$

7

Troy Exploration Expenditure Last 5 Years

(2,000)

2,000

6,000

10,000

14,000

18,000

2012 2013 2014 2015 2016

Expensed - Andorinhas, Brazil Capitalised - Andorinhas, BrazilExpensed - Casposo, Argentina Capitalised - Casposo, ArgentinaExpensed - Karouni, Guyana Capitalised - Karouni, Guyana

Troy – Past, Present, Future

Past • Outstanding project development record.

• Unique “old school” pioneering approach.

• One dimensional model ~ limited growth potential.

Present • Business transformation and organisational

restructuring.

• Focus on operational sustainability and risk management.

• Renewed funding on exploration opportunities.

Future • Multi-dimensional model ~ unconstrained growth.

• More conservative approach but still entrepreneurial.

• Concerted effort to increase Karouni mine life and take advantage of exceptional Guyana potential.

• Mid-tier, diversified, sustainable gold producer.

8

1 Background

2 Corporate

3 Operations

4 Exploration

5 Summary & Outlook

6 Appendix

9

Board & Senior Management

Fred Grimwade Chairman

John Jones Non-Executive

Director

David Southam Non-Executive

Director

Martin Purvis CEO &

Managing Director

Ken Nilsson Executive Director Transitioning from Executive Director

at 2017 AGM

Stacey Apostolou CFO & Company

Secretary

Board Renewal and Succession Underway

10

Key Information

FY17 Production Guidance & Costs

Top Shareholders (as at 11 Nov 2016) Reserves & Resources (as at 30 June 2016)

Shares on Issue M 453.8

Share Price (11 Nov 16) A$ 0.335

Market Capitalisation (11 Nov 16) A$M 152.0

Cash and Inventories (30 Sept 16) A$M 36.4

Debt (30 Sept 16) A$M 51.3

Net Debt (30 Sept 16) A$M 14.9

Enterprise Value (11 Nov 16) A$M 166.9

Investor Shares (m) % SOI

Paradice Investment Management 28.7 6.86

Renaissance Smaller Companies 24.5 5.87

Commonwealth Bank of Australia 23.2 5.53

Institutional Component of Register 59.4%

Forecast

FY17 Gold Production (oz) 85,000 – 95,000

FY17 C1 Cash costs (US$/oz) 500 – 600

FY17 AISC (US$/oz) 750 - 850

Unit

Ore Reserves 330koz @ 3.4 g/t

Mineral Resources 1,130koz @ 2.7 g/t

LOM September 2020

Key Metrics

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

Gold Price USD

Share Price AUD

0

5

10

15Volume M

11

1 Background

2 Corporate

3 Operations

4 Exploration

5 Summary & Outlook

6 Appendix

12

Guyana: Mining Friendly ~ Frontier Opportunity

● Partnership approach to foreign investors with open communication channels. ● Robust relations emerging – US, UK and mining jurisdictions.

● Stable political, legal and commercial platform.

● Good basic trade skills. ● Efficient regulatory systems.

● Low population density.

Underdeveloped, underexplored with extensive resource potential.

13

Karouni Tenements In Context: First Class (“Geological”) Real Estate

JV

JV Singapore


JV

• Karouni’s Tenements (854km²) comparable to entire land mass of Singapore.


Singapore

Karouni Tenements – First Class (geological) Real Estate

JV

• Karouni’s Tenements (854km²) comparable to entire land mass of Singapore (719km²).

• Shears in tenements total over 100km.

18

Karouni Development – To Boldly Go…

19

February 2015 Plant construction starts

November 2015 First gold poured

February 2016 Commercial production

Karouni Development

Health, Safety & Environment

Safety • International Best Practice Standards applied to all

reporting and monitoring systems.

• LTIFR rates trending towards International Performance Levels despite remote site challenges.

─ Karouni YTD LTFIR 7.31

─ Australia Metal Ore Mining 2015 4.2 Source: Safe Work Australia

Environment • There have been no reportable environmental

incidents since commencement of Karouni operations.

• Looking to operate in conformance with the Equator Principles, IFC Performance Standards, International Cyanide Management Code as well as the International Environment Standard ISO 14001.

• August 2016 EPA granted Karouni Mine full compliance with Environmental Permit.

• Ongoing rehabilitation at Andorinhas, plant to be removed by the end of CY16.

21

Mining fleet expanded Q2 CY16 ~ to counter effects of wet season and clay material in pits.

Karouni Mining and Rainfall

Production Performance

12 x 3 x 19 x 6 x

A$10M Sept 15

A$15M Dec 15

A$15M Mar 16

A$5.0M Jun 16

A$6.6M Oct 16

0

50

100

150

200

250

300

350

400

450

500

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Mar

-15

Apr-1

5

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct

-15

Nov

-15

Dec

-15

Jan-

16

Feb-

16

Mar

-16

Apr-1

6

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct

-16

mm

BC

M

Sand Overburden Ore Waste Target Movement Rainfall

• Positive operating cashflow since start-up • A$51.6M debt repaid in past 12 months

22

3 2

1/4

1 2

3

SMARTS PITS

Tailings Dam

Mine Camp Airstrip

HICKS PITS

Plant

N

Overview – Site Layout

1km

23

Smarts 1 Ore Body

Smarts 2

Smarts 3

Smarts 4

Smarts Pits

24

Scale: 40m

Smarts Pit transitioning from

oxide to fresh rock.

Smarts Pit Transitions

25

Scale: 40m

Hicks Pit Transitions

Recent RC Drill Results from Hicks • 3m at 6.13g/t from 27m • 4m at 5.84g/t from 0m • 3m at 4.95g/t from 22m • 3m at 4.50g/t from 57m • 5m at 4.07g/t from 37m • 5m at 3.90g/t from 46m • 7m at 3.88g/t from 21m • 5m at 3.87g/t from 7m

26

Hicks Stage 3 Pit Actual Mined to October 2016 219,000t at 2.31g/t containing 16,190oz

Hicks Mineralisation

Hicks Stage 3 Pit Ore Reserve Block Model to October 2016 260,290t at 1.69g/t containing 14,140oz

27

1 Background

2 Corporate

3 Operations

4 Exploration

5 Summary & Outlook

6 Appendix

28

Jungle Covered Terrain Extensive Transported Cover

Deep Tropical Weathering Seasonal Rains Limited Access

Exploration Program Challenges

29

Structure, Stratigraphy & Lithology

30

Karouni Brownfields Camp Scale “Exploration Play”

31

1. Structure: Intersections / Breaks / Jogs / Bends • Late basin sediment deposition indicating large structures. • Magnetics highlights the breaks, jogs and bends.

2. Stratigraphy • Host Rocks – Mafic Corridor; Distinguished by High Chromium, Cobalt and Nickel in pXRF. • Highly Magnetic – Looking for Magnetite Destruction.

3. Mineralisation • 2 styles of mineralisation:

─ Brittle deformation of basalt host with shear corridor, high grade veining (Smarts) ─ Mineralised felsic porphyry intrusives (Hicks)

• Tungsten (W) maps out the mineralised shear corridor. • Pyrite/Quartz are key indicators.

Karouni Brownfields Targeting Criteria

32

Regional Clues – Look Alike Targets

Omai Deposit (3.7Moz) Same Host Rocks, Structural Setting and Gold

Mineralisation Styles

North Facing View of Flooded Wenot Pit (Foreground) and Fennel Pit

33

FY17 Near Mine & Brownfields Targets

34

FY17 Drilling Campaign

35

Metres Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 AC/RC Major Rig 1 Mirror Central 2,230 Goldstar 2,500 Mirror Framework 4,000 Dominica Shear 4,500 Goldstar Phase 2 2,500 El Paso 5,000 Singh Link 5,300 Subtotal 26,030

AC/RC Major Rig 2 Hicks SE 6,500 Near Mine Targets 5,000 Norby Gibbs 5,000 Subtotal 16,500

DC Versa Rig 1 Smarts UG 3,000 NW Smarts 1,000 Spearpoint 1,000 Hicks Deeps 2,500 Subtotal 7,500

REGIONAL A$5.27M

EXTENSION A$1.32M

UG SCOPING STUDY

A$2.63M

TARGET / ACTIVITY

Drilling Schedule

36

• Initial drilling intersects a sequence of: Sediment

Intermediate Intrusive (Andesite) Black Shales Greywacke

Felsic Intrusive Basalt

• Correlates well with the target concept of a prospective Smarts-Hicks Stratigraphic sequence.

Mirror Target: Early Days ~ Encouraging Results

37

Smarts Stage 3 Smarts Stage 2

Smarts Stage 4

North-south veins projected beneath pit

Smarts Underground Scoping Study

38

Goldstar Target Drill Plan

• Quartz Vein outcrops 7km long High Chrome Corridor (up to 13,000ppm Cr).

• Continuous shear zones and massive Quartz Veins.

• Not tested by Drilling. • Multiple large scale local

mine workings adjacent to Mafic-Cr Corridor.

• 320m x 40m RC drill program.

• Seven framework lines will test 2.5km strike length.

39

Hicks SE – Framework Drilling

40

Dominica Shear – Framework Drilling

41

Singh Link/NW Blocks – Framework Drilling

42

Exploration Pipeline & Milestones

43

1 Background

2 Corporate

3 Operations

4 Exploration

5 Outlook

6 Appendix

44

Looking Ahead

• Focus on Management Operating Systems. • Resource conversion ~ Extension Programme / UG PFS. • Regional Exploration ~ Drill, Drill, Drill! • Consolidate growth opportunities ~ Guyana Diversified. • Complete corporate transformation.

Investment Highlights

Management succession underway

Enhanced balance sheet to

fund growth

High grade low-cost producer

Successful operations achieved

Significant exploration

potential

45

“In the end, you’re measured not by how

much you undertake but by what you

finally accomplish.” Donald Trump 45th President-Elect of the United States of America

46

Competent Person’s Statement

The information in this presentation that relates to Exploration Results for the Karouni project is based on, and fairly represents, information and supporting documentation prepared by Mr Peter J Doyle, Vice President Exploration and Business Development of Troy, a Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Doyle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Doyle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Mr Doyle is a full time employee of Troy. The information in this presentation that relates to Mineral Resources and/or Ore Reserves for the Karouni project is based on, and fairly represents, information and supporting documentation prepared by Mr Richard Maddocks, Manager – Mineral Resources of Troy, a Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Maddocks has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Maddocks consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Mr Maddocks is a full time employee of Troy. The information relating to the Karouni Mineral Resource Estimate is extracted from the announcement titled ‘Mineral Resources and Ore Reserves Update’ released on 2 September 2016 and available to view at www.troyres.com.au. The information relating to exploration results from the Karouni Gold project is extracted from the Quarterly Report for the three months ended 30 September 2016 and available to view at www.troyres.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements relating to drill results, mineral resource estimates or studies and that all material assumptions and technical parameters underpinning the drill results and estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented here have not been materially modified from the original market announcements.

47

1 Background

2 Corporate

3 Operations

4 Exploration

5 Outlook

6 Appendix

48

Andorinhas

• Andorinhas ceased operations in May 2016. • Stockpile treatment and plant clean-up completed May

2016. • Following court approval, Anfield Gold acquired Magellan

Minerals shares in May 2016. • Anfield Gold acquired the Andorinhas plant for a total of

US$4.5 million of which a further US$1.0 million is due to be paid by end of February 2017.

• Environmental rehabilitation ongoing. • Plant expected to be removed from site by end CY16,

after which the plant footprint will also be rehabilitated.

“After 15 years in Brazil, Troy leaves behind a legacy that reflects all the positive elements and opportunities that

mining can deliver to local communities.”

Appendix 1 – Andorinhas

49

Casposo • Austral Gold Limited appointed manager of Casposo, acquiring 51% interest in project. • Introduction of smaller scale mining techniques and plant optimisation have enabled

operations to recommence. • Operations expected to continue for the next four years. • Austral entitled to acquire a further 19% by paying US$1 million my March 2017 and have

the option to acquire the remaining 30% over 3yrs for a total consideration of US$7 million (which is increased should the silver price be in excess of US$16/oz).

Appendix 2 – Casposo

50

1. Repayments converted to US$ for comparative purposes against the restructured US$ Facility assuming the same A$/US$ conversion rate.

Restructured Investec repayment schedule1

Troy has repaid US$32 million (A$45 million) of debt to 30 June, with balance forecast to be repaid over next two years

Restructured hedging profile

7.2

10.7 10.7

3.8 5.0 5.0 5.0

4.0 3.0 3.0 3.0

11.2

0

2

4

6

8

10

12

30 Sep 15 31 Dec 15 31 Mar 16 30 Jun 16 30 Sep 16 31 Dec 16 31 Mar 17 30 Jun 17 30 Sep 17 31 Dec 17 31 Mar 18 30 Jun 18

US

$m

Repayment Date

3,000

3,500

4,000

4,500

5,000

5,500

26 S

ep 1

6

26 O

ct 1

6

25 N

ov 1

6

28 D

ec 1

6

25 J

an 1

7

28 F

eb 1

7

31 M

ar 1

7

30 A

pr 1

7

31 M

ay 1

7

30 J

un 1

7

31 J

ul 1

7

31 A

ug 1

7

30 S

ep 1

7

31 O

ct 1

7

oz

Appendix 3 – Debt and Hedging Schedules

51

Smarts Stage 4

Smarts Stage 1

Pit Floor – 31 Oct 2016

Appendix 4 – Smarts Stage 4

Smarts Stage 4 Smarts Stage 1

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