Celsius Resources Limited — AGM Information 2018

Nov 12, 2018

Building an Extensive Cobalt Resource in Namibia

AGM Presentation November 13, 2018

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Disclaimer

This presentation has been prepared by Celsius Resources Limited (“Celsius” or “CLA”). The information contained in this presentation is a professional opinion only and is given in good faith.

The information contained herein is confidential and proprietary to the Company and is provided to recipients on the terms and conditions set out in this disclaimer. The document, in whole or in part, is not to be distributed, copied or reproduced, in any form, without the prior written consent of the Directors of the Company.

Certain information in this presentation has been derived from third parties and though CLA has no reason to believe that it is not accurate, reliable or complete, it has not been independently audited or verified by CLA.

Any forward looking statements included in this presentation involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, CLA. In particular they speak only to the date of this presentation, they assume the success of CLA’s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which these assumptions are based. Recipients of this presentation are cautioned not to place undue reliance on such forward looking statements.

CLA makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any errors or omissions which may become apparent after this presentation is released.

To the extent permitted by law, CLA and its officers, employees, related bodies corporate and agents disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of CLA and/or any of its agents) for any loss or damage suffered by a recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information.

All amounts in AUD unless stated otherwise.

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Investment Highlights Strategic Asset

BROAD MINERALISATION CONFIRMED OVER 15KM+ WITH SIGNIFICANT FURTHER POTENTIAL STRIKE

Maiden JORC Resource: 112.4 Mt at 0.11% Co, 0.41% Cu & 0.43% Zn

VERTICAL INTEGRATION

Project to produce refined cobalt products (sulphate, hydroxide or metal) with copper and zinc byproducts

LARGE-SCALE RESOURCE

Potential for high production rate and economies of scale. Additional Exploration Target released October, 2018.

POLITICALLY STABLE AND SAFE LOCATION WITH EXCELLENT INFRASTRUCTURE

Namibia is mining friendly with ample access to grid power, water and services

SIMPLE, UNCOMPLICATED MINERALOGY

95% of current resource is sulphides and low in arsenic and uranium

STRONG DEMAND FUNDAMENTALS

Future demand for cobalt, led by the looming electric vehicle and battery storage revolutions, driving prices higher. Supply disruption - DRC

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Corporate Overview

Capital Structure

722.5M 34.8M 49.5M

52.4M

$10.7M

CTA $0.065 (fully diluted)

Listed options: Unlisted options Shares (CLA) CLAO-AUD 0.01 strike

Market cap (AUD)

Cash (September 30)

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Major Shareholders ASX: CLA
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Citicorp Gecko JP Morgan HSBC BriJohn Borg Family
Nominee Pty Namibia (Pty) Nominees Custody Nominees Pty Super Fund
Ltd Ltd Australia Nominees Ltd
Limited (Australia)
Ltd
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Directors and Management

• A geologist with over 20 years’ experience gained working in management, operational and project development roles in the Exploration and Mining industries

• Brendan Borg • Experience includes Rio Tinto Iron Ore, Magnis Resources Limited, IronClad Mining Limited, Managing Director Lithex Resources Limited and Sibelco Australia Limited • Director of Tempus Resources Limited (ASX:TMR) and geological consultancy Borg Geoscience Pty Ltd • A geologist with over 20 years’ experience in the international resources industry working

• Bill Oliver for both major and junior companies • Former roles include Rio Tinto, Harmony Gold, Bellamel Mining and BC Iron

• Non-Executive Chairman • Director of several ASX listed companies, including Tando Resources Limited (ASX:TNO) • Metallurgical Engineer with extensive experience in developing and operating mines in Namibia

• Pine van Wyk • Formerly with Rössing Uranium and Paladin Energy Ltd at their Langer Heinrich Uranium project as Operations Manager, taking the project from feasibility to full production

• Project Director • Currently Managing Director of the Gecko Namibia group of companies • Over 20 years’ experience in the areas of financial and executive management, accounting,

• Ranko Matic audit, business and corporate advisory • Director of a Chartered Accounting firm and a Corporate Advisory company based in Perth,

• Non-Executive Director Western Australia

• • Over 18 years’ experience in financial accounting and analysis, audit, business

• Melanie Ross and corporate advisory services in public practice, commerce and state government Company Secretary • Currently a Director of a corporate advisory company based in Perth that provides corporate and other advisory services to public listed companies

• • 20 years’ experience, developing and managing mining projects in Southern Africa,

• Edward Legg more specifically in South Africa, Zambia, and the DRC Project Development Manager • Former experience at AngloGold Ashanti/Anglo Platinum, Metorex Ltd and Vale/ARM JV in Zambia

• Director of Tempus Resources Limited (ASX:TMR) and geological consultancy Borg Geoscience Pty Ltd

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Cobalt – A commodity in demand

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COBALT PRICE (X1,000 USD)
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LME Cobalt Price
USD $50,500
6 Nov ‘18
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Why Cobalt?

• Substantial price appreciation over the past two years

• Exposure to booming electric vehicle and battery storage markets

• Chinese EV manufacturers shifting towards cobalt-based lithium ion batteries

• Security and supply concerns in DRC means more diverse sources of cobalt needed

• Supply disruption – Katanga off-line until late 2019

• Near term oversupply to become deficit

Source: InfoMine.com

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Cobalt – Best Exposure to Battery Boom?

In a 100% EV world …

demand for commodities would change by …*

incremental annual commodity demand would deplete reserves by …

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*in % of global market today

Source: UBS

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Cobalt – Market Outlook

Cobalt-containing cathode will dominate EV and Storage applications within 10 years

• Benchmark Mineral Intelligence forecasts that the use of cobalt in batteries will more than triple between 2017 and 2026 – despite the shift to lower cobalt batteries during this timeframe

• Removing cobalt from both NCA and NCM technology is not easy and presents problems: safety and cell life

• Even if nickel-cobalt-manganese (NCM) 811 cathodes takes off, overall impact would be limited

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Cathode Projections NCM 811 Adoption Rate (2026)
250,000
11%
19%
27%
8% 4%
200,000
15%
2017 52% 2025 30%
45%
150,000
29% 17% 33%
100,000
50,000
0
2026 – Even if NCM811 takes off growth rate exceeds 3x
Sources: Freeport Cobalt and Benchmark Mineral Intelligence
in all scenarios
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Sources: Freeport Cobalt and Benchmark Mineral Intelligence

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TONNES (CO DEMAND BATTERIES)
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Namibia: A Premier Mining Destination

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A politically stable jurisdiction:

• Established regulatory structure

• Strong public and governmental support for mining

• Favourable tax considerations for producing downstream products in Namibia

Exceptional infrastructure:

• Regional capital Opuwo boasts airport and hospital

• Sealed roads from Opuwo to Windhoek and Walvis Bay Port

• 320MW hydroelectric power station at Ruacana linked to 330kV power grid

Mining Culture:

• Numerous operating mines – strong contributor to national GDP

• Gecko Namibia – Miner and Mining Services Group

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Opuwo Project Overview 100km+ of Co-Cu prospective horizon

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owned and 5% loan-carried share with local 95% Namibian group owned by Gecko Namibia (significant shareholder) 5.13% total project area 1,470 km[2]

strike of existing resource zone ~10km

existing power lines 66kV & 33kV

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Mineralisation

Mineralisation is low in deleterious elements

• JORC Compliant Mineral Resource estimate: 112.4 Mt at 0.11% Co, 0.41% Cu and 0.43% Zn – cutoff grade of 0.06% (or 600 ppm) Co

• Mineral Resource estimate represents contained cobalt of 126,100 tonnes and consists of:

• Indicated: 72.0 Mt at 0.11% Co, 0.42% Cu and 0.41% Zn

• Inferred: 40.5 Mt at 0.12% Co, 0.41% Cu and 0.46% Zn

• Key feature of Opuwo: +95% of the Mineral Resource is comprised of the fresh sulphide ore type

• Mineralised zones are open in all directions with excellent scope for expansion with further drilling

• Mineralisation hosted in Neoproterozoic sediments of the Kaoko Belt (the western extension of the Copper Belt in DRC and Zambia)

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Typical Mineralised Zone Drill Chips
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Maiden JORC Mineral Resource Tables

Reported in April, 2018

JORC Compliant Indicated and Inferred Mineral Resource

CATEGORY	ORE TYPE	COBALT CUT- OFF (PPM)	TONNAGE (MT)	COBALT (%)	COPPER (%)	ZINC (%)	CONTAINED COBALT (T)
Indicated	Oxide	600	3.8	0.10	0.39	0.36	3,900
	Transition - Sulphide	600	1.6	0.10	0.42	0.38	1,700
	Fresh - Sulphide	600	66.5	0.11	0.42	0.41	73,700
TOTAL INDICATED		600	72.0	0.11	0.42	0.41	79,300
Inferred	Fresh - Sulphide	600	40.5	0.12	0.41	0.46	46,900
TOTAL		600	112.4	0.11	0.41	0.43	126,100

JORC Compliant Indicated and Inferred Mineral Resources at Various Cobalt Cut-off Grades

COBALT CUT-OFF (PPM)	TONNAGE (MT)	COBALT (%)	COPPER (%)	ZINC (%)	CONTAINED COBALT (T)
0	294.4	0.06	0.24	0.33	177,100
200	238.7	0.07	0.28	0.37	169,100
400	146.7	0.10	0.37	0.41	142,800
600	112.4	0.11	0.41	0.43	126,100
800	87.9	0.12	0.44	0.44	109,100
1000	66.4	0.14	0.46	0.45	89,700
1200	44.7	0.15	0.49	0.46	66,000
1400	24.6	0.16	0.50	0.47	40,000
1600	9.6	0.19	0.46	0.45	17,900
1800	5.5	0.20	0.45	0.42	10,900
2000	3.1	0.21	0.45	0.34	6,300

• Note that minor rounding errors occur in these tables.

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Peer Comparison

Opuwo compares favourably to other sulphide and laterite projects

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COBALT GRADE (%)
Laterite
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COBALT METAL CONTENT (‘000 TONNES)
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Note: Excludes Kalongwe (NZC) 42,700 tonnes cobalt metal content at 0.62% cobalt grade. Bubble size represents contained cobalt

Sulphide

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Cross Sections

Cross Sectional View – Section 365,350mE

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Cross Sectional View – Section 366,350mE

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Exploration Target – West Zone

between 34 and 51 million tonnes, grading approximately 0.08% - 0.18% Co, 0.26% - 0.62% Cu , and 0.35% - 0.82% Zn

*It is noted that the potential quantity and grade is conceptual in nature, and that there has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of an additional Mineral Resource for the ET zone.

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UTM Zone 33S

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Positive Scoping Study

• Confirms potential for a large scale and long-life operation.

• Preliminary mine planning completed, examining various open pit and underground mining scenarios.

• Sulphide concentrate produced from standard flotation methods.

• Flowsheets and costing developed, cobalt sulphate, cobalt hydroxide or cobalt metal to be produced, along with copper metal and zinc sulphate.

• Moderate temperature and pressure autoclave process under development. To be evaluated further during PFS, along with the traditional sulphating roast/atmospheric water leach process.

• No significant deleterious elements such as uranium or arsenic.

• Infrastructure components to leverage off existing regional infrastructure, including hydroelectric power and network of sealed roads.

• Commenced high-level discussions with prospective offtake partners.

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Flotation testing on Opuwo samples
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Positive Scoping Study

Next Steps:

• Initial PFS study work to focus on components which are expected to allow an updated Scoping Study to be released in approximately March, 2019.

• Updated Mineral Resource expected in December, 2018.

• Validation of assumptions made regarding the base case flowsheet – sulphating roast/atmospheric water leach.

• Further metallurgical testwork on oxide mineralisation.

• Updated and optimised mine plan based on the above components.

• Expected to allow publication of production targets and high level financial metrics of the Project (subject to board/ASX approval).

• PFS Study Manager to be appointed, PFS scheduled for delivery in Q3, 2019.

Sulphide mineralisation in drill core

Copper Cathodes

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Scoping Study Team Project Director: Pine van Wyk

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Metallurgy

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Resource Modelling and Estimation

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Metallurgy, CAPEX/OPEX Estimates

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Environmental, water and social studies

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Mining Studies

PFS Team to be appointed Including external group as overall manager

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Large-Scale Cobalt-Copper Targets

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• Aim of broader exploration in licence
package is to find the potential source
sulphide zone feeding the system within
the project area
• Maiden JORC Mineral Resource defined
over 10 km strike
• Exploration Target covers a further ~4 km
• Mineralisation intersected over a 15 km
zone
• Over 100 km of prospective strike
• Potential for additional mineralised zones
adjacent and parallel to known
mineralisation
• Outcrops at surface
•
Low in deleterious elements (As, Cd, U)
Expansion Licenses
• Other targets: Zn-Pb-V, Cu-Au, Cr-V, Pb-Zn-
EPL4346 (Original License)
Ag
Prospect
CLA Drilling DOF Cobalt
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SkyTEM Survey Completed

• Covering all known prospects at Opuwo, including DOF resource

• EPL4351 area, DOF North targets, and potential source zones for the extensive sulphide

• EPL4550 mineralisation • 200-metre line spacing • 6,090-line km total • Flying complete – final data processing and targeting report in progress

• EPL4346 • Drill testing of priority targets upcoming

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Timeline and Upcoming Catalysts

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NOVEMBER 2018 DECEMBER 2018 – MARCH 2019 Q2-Q3 2019
Continue PFS studies
Scoping Study PFS studies Complete Pre-
and exploration
Reported commence Feasibility Study
Updated Mineral Updated Scoping Strategic agreements
Resource Study
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Competent Persons Statement

Information in this report relating to Exploration Results is based on information reviewed by Mr. Brendan Borg, who is a Member of the Australasian Institute of Mining and Metallurgy and Managing Director of Celsius Resources.

Mr. Borg 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 by the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Borg consents to the inclusion of the data in the form and context in which it appears. The Exploration Results are based on standard industry practices for drilling, logging, sampling, assay methods including quality assurance and quality control measure as detailed in the ASX announcements referred to in this presentation.

Information in this report relating to Mineral Resource Estimates is based on information prepared by Mr. Dexter Ferreira, who is a Member of the South African Council for Natural Scientific Professions, which is a Recognised Professional Organisation (RPO).

Mr. Ferreira is a Contract Resource Specialist for DMT Kai Batla Pty. Ltd., who act as Resource Consultants to Celsius. Mr. Ferreira 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 by the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Ferreira consents to the inclusion of the data in the form and context in which it appears.

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celsiusresources.com.au info@celsiusresources.com.au

+61 8 6188 8181