CARNABY RESOURCES LIMITED — Investor Presentation 2017

Jul 30, 2017

Berkut Minerals Limited Scandinavian Cobalt

July 2017 Investor Presentation

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www.berkutminerals.com.au

Investment Case

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 Strategically located ethical cobalt projects in Scandinavia

• Close to the expanding European electrical vehicle and battery markets

• Cobalt-dominant, brownfields projects in historic cobalt mining districts

• Low market capitalisation compared to peers: exceptional leverage

• ~4.1M cash, ~7.6M Market Cap, $3.5M E.V

• Potential triggers for re-rating on current exploration program, and drilling in Q4 2017

• Tight corporate structure, highly experienced board and management team

• o 33.4M tradeable shares 47.3M on issue

• Top 20 shareholders hold ~50%

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Market Capitalisation ($M)
150
130
110
90
70
50
30
10
-10 CleanTeq Aeon Cobalt Ardea GME Barra Cobalt Platina Celsius Riva Conico Berkut
Metals One Blue Minerals
Limited
Market Capitalisation (million $)
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Scandinavian Projects

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• Granted rights to 100% of four cobalt prospective projects in in Sweden and Norway

• Skuterud Project, Norway

• Gladhammar and Tunaberg Projects, Sweden

• in Sweden

• 100% owned Lainejaur Nickel-Cobalt resource[1]

• 116km[2] of granted licenses and applications

• Excellent infrastructure and close to the Kokkola cobalt refinery in Finland

• Extensive historic high grade underground cobalt workings

• Historical mined grades of up to 2% cobalt (Gladhammar)

• 1.3M lb historical cobalt resource[1] (Lainejaur)

• to nickel and base

• Exposure gold, metals on existing projects

• Stable mining jurisdictions, serviced by excellent infrastructure and close to cobalt refineries

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Berkut Projects located close to cobalt refineries and strategic markets in Europe

• Limited or no modern day exploration

www.berkutminerals.com.au

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Skuterud Project | Norway

• Located 100km from Oslo port in Norway

• Seven granted licences over the historic Skuterud Cobalt Trend, for ~19km[2]

• Dominant landholding position

• Covers 6km of the Skuterud Cobalt Trend

• Nearby historic Skuterud Mine:

• o source of cobalt in 19[th] then Major century the world’s largest producer of cobalt

• to 4 million tonnes of ore mined from

• Up 1773-1893[2]

• Three main of identified groups workings along

• trend of the historic Skuterud Mine

• Recent sampling adjacent to Middagshville Cobalt Mine workings show grades of 0.8% Co and 0.5% Cu in spoil[3]

• Community engagement started

 Surface mapping and sampling commenced

 Targeting drilling in Q4 2017

2Source: Bundell, 1964

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Dominant position along the Skuterud Cobalt Trend

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Skuterud Project | Geology

• Cobalt related to meta-sedimentary, sulphiderich schist zones, so-called ‘fahlbands’.

• Fahlbands up to 30m wide containing cobalt, copper and gold

• Mineralisation includes cobaltite, linnaeite, glaucodote, safflorite and skutterudite,

• Cobalt-rich sulphide zones associated with -

• gabbro contacts and quartzite targeting vector

• Shallow northerly plunge identified in historical mapping

• Workings located at the Saafstad Mine region in three main clusters:

• NNW trend, ~400m long open along trend

• Similar to Skutterud geometries nearby

• Mine

• Untested by modern methods

• Hand to 0.8% Co[3] at the samples up

• Middagshville Mine workings

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Southern Tenement Cobalt Workings

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Middagshville Mine Surface Workings Middagshville Mine East Adit

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Extensive Historical Workings with Cobalt Mineralisation

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Workings at the nearby Skuterud Cobalt Mine – 600m south of Berkut’s tenements. Note the two parallel zones of mineralisation

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Lainejaur Ni, Co, Cu Project | Sweden

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• Located at the north-west end of the renowned Skellefteå mineral belt

• Only 15km from the industrial centre of Malä

• 41km[2] Exploration Licence

• Historical resource of 645Kt @ 1.3% Ni, 0.66% Cu and 0.09% Co[1]

• Contains massive and semi-massive high-grade

• nickel sulphide ore

• Open at depth ~ 1.5km northerly dip potential

• Historic Ni-Co Cu mine last active in the 1940’s

 Significant intersects include;

• 7.65m @ 2.1% Ni, 0.1% Co and 1.01% Cu from 168m

• 9.88m @ 2.28% Ni, 0.17 % Co and 0.61% Cu from 277.35m

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Large landholding around historical resource

1JORC Cautionary Statement: The estimates are historical or foreign estimates and are not reported in accordance with the JORC Code; a Competent Person has not done sufficient work to classify the historical estimates as Mineral Resources or Ore Reserves in accordance with the JORC code; and it is uncertain that following evaluation and/or exploration work that the historical estimates will be reported as Mineral Resources or Ore Reserves in accordance with the JORC Code. See announcement of 26 July 2017[3] : the Company confirms that the supporting information provided in the initial market announcement continues to apply and has not materially changed.

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Lainejaur Project | Geology

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• Hosted at the base of a lopolithic gabbro-diorite intrusion overlain by mafic intrusive with minor intercalated metasedimentary units and underlain by meta-basalts

• Sulphides consist of pyrrhotite, pentlandite, gersdorffite and chalcopyrite

• Open at depth - 1.5km northerly dip potential

• 2m @ 2.1% Ni on last line of drilling[3]

• Previous workers (Blackstone Ventures) only had 0.3km[2] licence - limiting exploration in the area

• Historical hole collars still accessible - expected to be accessible for down hole geophysics

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A
B
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Lainejaur Ni, Co, Cu Project | Sweden

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Gladhammar Project - Sweden

• Located approximately 200km south of Stockholm

• ~44km[2] approved and pending licences

• Major cobalt mine in Sweden from 1777 to 1892

• historic mine of 1.25%-2%

• Reported grades cobalt in 682t from 1888 to 1891 (end of mine)[3]

• Hand samples up to 0.25% cobalt; copper up to 7.8% over 1.9m (GLA005 - from 103.1m)[3]

• Cobalt present as part of an interpreted zoned iron oxide-copper gold system

• Mineralisation present as linnaeite, cobaltite, chalcopyrite, pyrite and magnetite.

• Potential for mineralisation high grade gold

• adjacent to the cobalt workings

• Limited historical exploration

• Strong associated 4.5km long magnetic trend

• Potential for regional repeats of high grade mineralisation associated with magnetic highs

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Gladhammar local geology

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Gladhammar historic cobalt workings Gladhammar workings at surface (source: Gunnvall, Gunvall and Aren, 2008)

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Tunaberg Project - Sweden

• Approved licences of ~12km[2]

• Located in southern Sweden, approximately 100km SW of Stockholm

• Historic mining centre; copper mining during the 15th century and cobalt during the 18th century

• Skarn hosted cobalt mineralisation dominated by cobaltite and oenite

• Metal zonation noted in historic production, central zone of Co-Cu sulphide skarn with peripheral Zn-Pb zone hosted in graphitic slate, metatuffite and marble

• Extensive historic workings will allow for early structural of the ore

• stage interpretation bodies and zones and provide rapid target generation

• Historical drilling up to 9.9% zinc and 2.3% lead (TUN005, 0.4m from 86.9m)[3] . Not sampled for cobalt - core available for sampling

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Tunaberg Geology and historical drilling

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Tunaberg workings and outcrop

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Exploration Timeline

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• Initial field assessment undertaken at Lainejaur, Gladhammar, and Tunaberg (Sweden)

• ‘Boots on ground’ field work underway at Skuterud (Norway)

• Meetings held with the Norwegian Geological Survey and Directorate of Mining

• Field mapping underway

• 200m spaced geophysical data identified over the target areas – interpretation ongoing

• Drill targeting for Q4 2017

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Q2/3 2017 Q3 2017 Q4 2017

Field Visit

Geophysical surveys and analysis
 
Sampling Drilling
 
Mapping
Mapping Assessment

Baseline Surveys

Project generation

Assessment and Targeting
o
Approvals
o
Drilling preparation
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Corporate Snapshot

Share Price (21 July 2017)[1] 16 cents Shares on issue[2] 47.3M Options on issue[3] 10.5M Market Capitalisation $7.6M Cash position[4] $4.1M Enterprise Value $3.5M

• 1 As at 21 July 2017

• 2 33.4M tradeable with 13.9M shares subject to escrow to August 2018

• 3 0.5M options exercisable at 20 cents, 9M at 25 cents and 1M at 30 cents 4 As at 21 July

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Neil Inwood

Managing Director

• Highly experienced geologist with +22yrs international experience in gold, base metal & specialty metals

• Experience in consulting and venture capital for the last 13yrs

• Previously Executive Geologist Verona Capital, and prior Principal Geologist with the international mining consultancy Coffey Mining

• Geological team leader that established the world-class endowment of the Panda Hill Niobium Project in Tanzania for Cradle Resources

Justin Tremain

Non-Executive Chairman

• Founding MD of Renaissance Minerals (ASX:RNS) in 2010 & has overseen the Cambodian Gold Project since 2012

• +14yrs investment banking experience in the natural resources sector (NM Rothschild & Sons and Investec Bank)

• Extensive experience in the funding of natural resource projects

Share Price

Paul Payne

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Non-Executive Director

• +30yrs experience in mining industry with >10yrs independent consulting across range of commodities & jurisdictions, from high level reviews, to development of exploration strategy to participation in DFS

• Extensive technical experience in evaluation of mineral deposits from early stage exploration to DFS

• Recent exploration includes implementation & management of gold exploration for Dacian Gold in Western Australia, and Rift Valley Resources in Tanzania

Ben Cairns

General Manager Geology

• Geologist with +17 years’ experience with extensive knowledge of Western Australian mineral systems

• Instrumental in advancing several precious metal and bulk commodity projects through exploration, feasibility studies and development into operating mines

www.berkutminerals.com.au

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Why Cobalt?

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• Tipped by many analysts to be in short supply for many years to come; mostly produced as a byproduct of Cu and Ni, which are both under-performing

• Price pressure due to increased tech demand and supply constraints

• low natural concentration means cobalt is as a

• Relatively background produced traditionally byproduct of copper and nickel

• In the past decade battery chemicals have developed a clear lead as cobalt’s number one consuming market by volume[1] , accounting for approximately 49% of cobalt demand

o Lithium-ion batteries contain more cobalt than lithium

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Other
14%
Catalysts
5% Battery
chemicals
Ceramics/Pigments 49%
6%
Hard metals
8%
Superalloys
18%
Source: Darton Commodities 2015
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Strong potential for price to increase further due to supply shortfall and robust demand growth

Source: InfoMine.com

1 Benchmark Mineral Intelligence

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Cobalt Supply

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• 60% of cobalt sourced from the Democratic Republic of the Congo

• China is the main refiner of cobalt, buying from ethical and conflict zones, controlling over 40% of the worlds refining capacity

• Unethical are not with the values of such as practices compatible large conglomerates Apple, Samsung,

• BMW, Tesla; cleaning up their supply chain

• Due to changes in supply characteristics more cobalt producers have emerged in Australia, Brazil, Cuba, Russian, Canada with significant cobalt-rich nickel and copper deposits entering the market

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Source: Amnesty International, Benchmark Mineral Intelligence

Source: CDI January 2015

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Cobalt - Why Europe?

• Countries in Europe are leading the world in uptake of electric vehicles using lithium-ion batteries

• Electric vehicles totalling 22% of all new vehicle sales in Norway[2]

• Stationary battery storage for home or grid use is also dramatically increasing. As an efficient cathode, cobalt helps store power for longer

• Lithium-ion batteries cobalt are using already being

• produced in Europe to meet this demand, and production capacity is growing dramatically.

• In Europe, four battery factories are in production, one in construction and four more planned

• Growing public demand for ethically sourced tech materials is driving producers to seek supply from secure and stable jurisdictions

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Cobalt Fast Facts

• 4kg of Cobalt required for each hybrid car

• 6kg of Cobalt required for each electric car

• 12-13 million hybrid/electric vehicles expected by 2020

• A new battery ‘gigafactory’ planned by Tesla could on its own lift Cobalt demand by 30,00035,000t/year

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Lithium-ion (Li-Ion) battery chemistries

• Lithium Cobalt Oxide, used mostly in handheld electronics (cell phones, laptops and cameras);

• Lithium Nickel Manganese Cobalt Oxide, used mostly power tools, e-bikes and electric/power trains; and

• Lithium Nickel Cobalt Aluminium Oxide, electric vehicles and grid storage

1 Investing News Network

2Source: http://www.eafo.eu

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Contact Us

Neil Inwood, Managing Director

neil@berkutminerals.com.au

T: +61 8 9320 2320

78 Churchill Avenue Subiaco Western Australia 6008

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www.berkutminerals.com.au

www.berkutminerals.com.au

Appendix A | Australian Projects

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Appendix B | Cairn Hill Gold Project

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• The Cairn Hill Gold Project is centered on a 200km long gold mineralised trend, stretching between Northern Star’s Paulsen’s Gold Mine and the Mt Olympus Deposit in the highly prospective Ashburton Region, Western Australia

• Modern exploration at Cairn Hill commenced in 1982 and was sporadic through to the late 1990’s as part of large regional projects / JV’s undertaken by Esso & BHPB.

• Work to date by Berkut has focused on shallow high grade gold mineralisation identified by previous explorers (1999-2007) including:

• 20m @ 29g/t gold from 30m; and

• 6m @ 12g/t gold from 142m

• Whilst initial results were encouraging;

• CHD004 10.5m @ 8.1g/t Au from 30.5m, detailed follow up drilling failed to substantiate the early results

• The company is looking to expand exploration beyond in detail at the regional potential of the project

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Disclaimer and Competent Person

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Disclaimer and Forward Looking Statements

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

Berkut Minerals Limited 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.

3The information relating to the exploration results is extracted from announcements dated 25/10/2016, 19/12/2016, 27/2/2017, 18/5/2017, 15/6/2017, 7/7/2017, 25/7/2017 and 1/8/2017 and available to view on to view on www.berkitminerals.com.au. Other than as specified in this announcement and the mentioned announcements, 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 and, in the case of estimates of Mineral Resources, Exploration Target or Ore Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement 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 have not been materially modified from the original market announcements

Competent Person

The information in this announcement that relates to Exploration Results for the European cobalt and nickel projects is based on information compiled by Mr Neil Inwood, who is a Fellow of the AusIMM. Mr Inwood is a full time employee of Berkut Minerals and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a competent person as defined in the 2012 Edition of the “Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves” (JORC Code). Mr Inwood consents to the inclusion in this announcement of the matters based upon the information in the form and context in which it appears.

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves for the Western Australian tenements is based on information compiled by Ben Cairns, who is a Member of the AIG. Mr Cairns is a full time employee of Berkut Minerals and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a competent person as defined in the 2012 Edition of the “Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves” (JORC Code). Mr Cairns consents to the inclusion in this announcement of the matters based upon the information in the form and context in which it appears

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