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Copi North HMS deposit Scoping Study

The first step along a pipeline of high-grade

zircon/rutile/ilmenite deposits in western NSW

Presented to the 16th Mineral Sands Conference, 15 – 16 March 2016, Rendezvous Grand Hotel, Melbourne

Dr Ian Pringle (Broken Hill Prospecting Limited, 0408 548767, ipringle@bhpl.biz)Broken Hill Minerals Pty Ltd - Relentless Resources Limited JV

Cautionary Statement

The Scoping Study referred to in this report is based on low-level technical and economic assessments, and is insufficient to support estimation of Ore Reserves or to provide

assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised.

Competent Person Statement

Exploration activities and sampling results contained in this notice are based on information compiled by Mr Ian Spence, Managing Director of Broken Hill Minerals Pty Ltd and

reviewed by Dr Ian Pringle who is a Member of the Australasian Institute of Mining and Metallurgy. Dr Pringle is the Managing Director of Broken Hill Prospecting Ltd and also a

Director of Ian J Pringle & Associates Pty Ltd, a consultancy company in minerals exploration. He has sufficient experience which is relevant to the style of mineralisation and types of

deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the Australasian Code for

Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Dr Pringle has consented to the inclusion in this report of the matters based on his

information in the form and context in which it appears.

The information in this report that relates to Mineral Resources for the Copi North HMS Deposit is based on information reviewed by Sue Border, a Competent Person who is a Member

of The Australasian Institute of Mining and Metallurgy. Sue Border has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to

the exploration 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’. Sue Border consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. Sue Border in not

an employee or a related party of the Company or its subsidiaries. Sue Border is a Director/Principal Geologist of Geos Mining.

The information in this report that relates to Mineral Resources for the Magic HMS Deposit is based on information compiled by Mr. Greg Jones who is a Member of The Australasian

Institute of Mining and Metallurgy. Mr. Jones is the Principal for GNJ Consulting and was retained by Broken Hill Prospecting Limited to conduct Mineral Resource estimation for the

Magic deposit. Mr. Jones has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to

qualify as Competent Person as defined in the JORC Code 2012. Mr. Jones consents to the inclusion in this ASX release of the matters based on his information in the form and

context in which it appears.

Disclaimer

This presentation contains forward-looking statements that involve subjective judgement and analysis and accordingly, are subject to significant uncertainties and risks, many of which

are outside the control of, and are unknown to, Broken Hill Prospecting Pty Ltd ( “BPL”). In such circumstances, the forward-looking statements can be identified by the use of forward-

looking words such as “may”, “will”, “expect”, “intend”, “seek”, “estimate”, “believe”, “continue” or other similar words.

No representation, warranty or assurance is given or made in relation to any forward-looking statement by BPL or it’s representatives, In addition, no representation, warranty or

assurance is given in relation to any underlying assumption or that any forward-looking statements will be achieved. Actual future events may vary materially from the forward-looking

statements and the assumptions on which the forward-looking statements are based. Accordingly, presentation readers are cautioned not to place undue reliance on such forward-

looking statements as a result of the uncertainties.

In particular, BPL wishes to caution readers that these forward-looking statements are based on economic predictions and assumptions on reserves, mining method, production rates,

metal prices and costs (both capital and operating) developed by BPL management in conjunction with consultants.

This presentation and the forward-looking statements made in this presentation, speak only as of the date of the presentation. Accordingly, subject to any continuing obligations under

the Corporations Act and the Australian Stock Exchange Listing Rules, BPL disclaims any obligation or undertaking to publicly update or revise any of the forward-looking statements in

this presentation, whether as a result of new information, or any change in events, conditions or circumstances on which any such statements is based.

Major Regional Project

Figure 1. Map of western NSW showing the location of the Copi North Heavy

Mineral Sands Deposit and other Exploration Leases and deposits held by

Broken Hill Minerals Pty Ltd.

South

Australia

Copi North HMS

Deposit

Silver City

Highway

Woolcunda EL8311

Copi EL8312

Springwood EL8309

Thackaringa cobalt-

pyrite deposit

Ginkgo and

Snapper

HMS mines

(Cristal)

Milkengay EL8310

Base map source:

Federation University

Australia

AL20

Victoria

Coombah

Roadhouse

Figure 1

Location of HMS Exploration Licences (red) 100% Broken Hill Minerals Pty Ltd. EL8311 and EL8312 are in JV with Relentless Resources Ltd. BPL’s Thackaringa Co-pyrite deposits are located 25km SW

of Broken Hill (blue cross).

New South

Wales

Atlas-

Campaspe

HMS project

(Cristal)

Magic HMS Deposit

Sunshine EL8385

Nanya EL8308

Copi North HMS deposit

Drilling and JORC resource - early 2015

Desktop Review (Robbins) - July 2015

Scoping Study (MT) - February 2016

Extension Drilling - March 2016

Magic HMS deposit

Drilling and JORC resource - mid 2015

18 other HMS deposits have been identified in BPL tenements

JV partners sought

Drilling - mid 2016?

BPL (BHM) has the largest ground holding for HMS exploration in the NSW Murray Basin

‘Pipeline’ approach for development of high-grade HMS deposits using a modular, portable plant

Two HMS deposits drill defined in 2015

Table 3: Magic Mineral Resource, August 2015 (2% cut-off grade)

Copi North

Magic

Copi North HMS Deposit Well located

Limited land use

Dry o/c mining

All weather road

70km to Wentworth

Potential for upside NW and SE

extensions

Copi South

Magic

~18 others

Highlights - Copi North HMS Deposit Scoping Study

Shallow, (6-25m cover), free-digging, unconsolidated sands/silts, low clay

Base Case: Waste:Ore ratio 3.6:1, mining an average grade of 9% HMS

1.4Mtpa throughput with an initial 5 year life

Production: ~100,000tpa HM concentrate (zircon-rutile-(leucoxene & ilmenite))

Capital Payback: 30 months

CAPEX excluding contingency: A$21.8m

Net 46 month LOM cash flow after costs: A$45.2m (A$163.6m total revenue)

Drilling to increase resources at western end of Copi North and at Copi South

Sensitivity Analyses: Each year of add-on production could give ~A$12m

to undiscounted net cash flow (EBITDA)

Revenue (A$ million using A$/US$ 0.70):

Zircon (US$1,040/t*) 58.3

Rutile (US$800/t*) 44.8

Leucoxene (US$300-530/t*) 19.9

Ilmenite (US$117/t*) 40.6

Total Revenue 163.6

Costs (A$ million):

Mining - overburden 33.7

Mining – HM 9.3

Processing MMU/WCP/CUP 23.0

Processing MSP 16.0

Site fixed costs 8.4

HMC and MSP tails trucking 6.1

Final product rail freight 10.3

Final product port charges 8.0

Royalties 3.7

Total costs 118.4

Net Operating Cash Flow 45.2

CAPEX (A$ million):

Infrastructure 4.5

Process plant 15.1

Indirect Costs 2.2

Contingency 4.4

Total 26.2 (21.8)

OPEX and CAPEX

Copi North is the first cab off the

rank for a ‘pipeline’ of high-grade

shallow HMS deposits which could

add many years of cash flow.

*2018 price estimate TZMI

Mobile Mining

Unit (MMU)

Flow sheet – Copi North Scoping Study1.4mtpa

Screened at 2mm

Surge bin for feed

to the spiral plant.

Wet Concentrator

Plant (WCP)

Concentrate Upgrade

Plant (CUP)

Mobile Mining Unit (MMU)

ROM ore fed by front-end loader

mounted on a tracksetto enable it be easily moved with the mine face

slurried ore pumped to a wet concentrator plant

Mobile mining unit model

Wet Concentrator Plant (WCP)

MTs’ MG12 spirals (1 pass recoveries)

HM recovery ~87%

Tailings pumped into tailings dam then into the mine void.

Recycled water

HMC slurried and pumped to the Concentrate Upgrade Plant (CUP)

Modular spiral plant model

Concentrate Upgrade Plant (CUP) HMC is slurried/pumped to the CUP

screened at 850 microns

undersize separated using wet magnetic separation

magnetic magnetite and ilmeniteconcentrate (60% recovery), dewatered via cyclone and stacked

non-magnetic is upgraded over a single spiral separator to remove silica and produce a zircon, rutile, and leucoxene product, dewatered via cyclone and stacked

silica and HM gangue are disposed in a small tailings dam

Modular WHIMS plant assembly

Improvements to OPEX through lower fuel prices?

Plant mobility and ‘pipeline’ mining of deposits favours off-grid power

The Scoping Study used a fuel price of A$1.15 per litre and this may

have been conservative and does not include the current Mining rebate

of 38 cents per litre.

Using a lower fuel price could trim off considerable OPEX and as a rule

of thumb … for each 15 cent of lower fuel price;

overburden removal costs will drop by about 6 cents per tonne

ore mining costs will drop about 3 cents per tonne

Copi North west extension (Sunshine), Copi South, Magic, ~18 others ……….

Pipeline of new mine developments

Adding Years of Additional Production (EBITDA)

Source: Mineral Technologies, Copi North Scoping Study

Exchange Rate Sensitivity (EBITDA)

Source: Mineral Technologies, Copi North Scoping Study

Product Price Sensitivity (EBITDA)

Source: Mineral Technologies, Copi North Scoping Study

Drilling to extend resource recently completed

Drilling has extended the

Copi North strand ~3km

further west where

mineralisation becomes

shallow (4-5m of cover) but

grade is slightly lower (visibly

2-5% HM) with similar width

of strand (200-220m).

Geologist John Elliot with drilling crew and sampling team, March 2016

Copi South HMS

deposit (Iluka drill

intersection 8m of

7.5% HM)

Copi North Western Extension showing

completed drill traversesmineralised

low grade/barren

not drilled

Summary of February-March 2016 drilling

Completed assay results expected in mid AprilCopi North HMS deposit

surface footprint

(11.6Mt of 6.9% HM)

A joint venture between Broken Hill Minerals Pty

Ltd (BPL subsidiary) and Relentless Resources NL

4 kilometres

Copi North additional fill-in drilling

( ) to increase resource confidence

Abundant groundwater for processing

Government water bores, located

about 2.5km south of Copi North

could supply process water.

Three bores have strong and

sustained water flows on separate

saline aquifers (16-32m, 226-231m

and 411-423m).

Baseline environmental data collection commenced

The Copi North environmental

recording station is fully operational

and providing important baseline

data.

Flora/fauna/archeology surveys have commenced

“No Aboriginal cultural heritage places were previously

known from the study area and none have been

encountered during our field inspections to date”

Dr Matt Cupper (Landskape)

7 biometric vegetation types

1 threatened ecological community was found in

restricted areas marginal to HMS resource

1 threatened flora species was recorded outside

the study area

Three general fauna habitats recognised

Field surveys identified 47 fauna species

Steve Sass (Environkey)

Steve Sass (Environkey)…. conversing with a local

“Overall – no ‘showstoppers’ for future development”

Rob Corkery (RW Corkery & Co Limited)

Mined head grade assumed 5.5% HM (from Inf Res 15Mt @ 3.7% HM)

Assumed Waste:Ore ratio of 3.0 : 1.0

Pit optimisation has not been run

Assumed same process recoveries for Magic as Copi North

Transport costs to Broken Hill and return (lower) but assumed same

Include A$5 million relocation costs

Adding 2 years of Magic onto the Base Case of Copi North will …..

…. increase undiscounted cash flow by A$11.2m and the DCF by A$6.2m

“Cash flow is very impressive if several years of production are added

from Copi North (west extension) to extend mine life to 7-8 years….

…and then if the plant is relocated to Magic for another 2+ years the

project fundamentals seem outstanding” (John Wyche, AMDAD)

Magic HMS Deposit may give additional value

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Conceptual timeline

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Corporate Overview - BHM is a 100% subsidiary of BPL

ShareholdersShares

(m)%

Hill Family Group Pty Ltd 34.3 27.7%

New Talisman Gold Mines Ltd 11.7 9.5%

Top 20 83.6 67.3%

Total shareholders: 551

Directors/Management

Creagh O’Connor AMDr Ian PringleMatt HillDenis GeldardGeoff Hill

Franco GirottoIan SpenceJohn Elliot, Charlie Foster,Wolf Leyh, Rob Barnes

Non-Exec ChairmanManaging DirectorNon-Exec DirectorNon-Exec DirectorNon-Exec Director

Company SecretaryMD - Broken Hill MineralsConsultant/contractorConsultant/contractor

Broken Hill Prospecting LimitedASX Code: BPL

Ordinary Shares on Issue (16/2/16)

124m

Options: Listed 47m

Market Cap (undiluted at 3cps)

$3.7m