EVOLUTION MINING LIMITED — Annual Report 2015

Aug 26, 2015

Evolution Mining 2015 Full Year Financial Results

27 August 2015

Jake Klein – Executive Chairman Lawrie Conway – Finance Director and Chief Financial Officer

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Forward looking statement

• These materials prepared by Evolution Mining Limited (or “the Company”) include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

• Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

• Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.

• Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

2

Three illars p

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Creating shareholder value

Operations

Discovery

M&A

Act like owners to maintain a cost and productivity focus over the longer term

Using science and technology to improve probability of transformational discoveries

Improve the quality of asset portfolio through opportunistic, logical, value accretive acquisitions

A strong platform for growth

3

Overview of recent activit y

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• 26 August 2015: Cowal Resources and Reserves increase

• Mineral Resources increased by 1.66 Moz (48 %) to 5.09 Moz

• Ore Reserves increased by 630 koz (40 %) to 2.18 Moz

• 24 August 2015: La Mancha transaction completed

• Unconditional FIRB approval received

• Appointment of two new directors effective 1 September 2015

• 445,876,699 new fully paid ordinary shares issued

• Integration progressing well

• 20 August 2015: Announcement of intention to make a takeover bid for Phoenix Gold

• 24 July 2015: Cowal transaction completed. Integration has run according to plan

Improving asset quality

4

FY15 financial hi hli hts g g

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• Record financial performance

• Underlying profit up 112 % to A$106.0 M

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• Statutory profit up 100 % to A$100.1 M

• Sales revenue up 5 % to A$666.0 M

• EBITDA increased by 28 % to A$266.4 M

• Low Group cash cost of A$711/oz (US$554/oz)[1]

• Improved AISC[2] of A$1,036/oz (US$807/oz)[1]

• Healthy balance sheet

• Gearing reduced from 12 % to 4.3 %[3] (pre-equity raising)

• Final dividend declared – 1 cent per share unfranked

• Calculated using an average AUD:USD exchange rate for the June 2015 quarter of US$0.779

• All-in Sustaining Cost includes C1 cash cost, plus royalty expense, plus sustaining capital expense, plus general corporate and administration expenses on a per ounce produced basis 3. Prior to completion of Cowal and Mungari acquisitions

Delivering improved financial performance

Ke rofit metrics all trendin ositivel y p g p y

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Gold sales [1] C1 cash cost [2]
koz (Up 11%) A$/oz (Down 8%)
430 427 780 772
770
420 760
750
410
740
400 730
390 383 720 711
710
380
700
370 690
680
360
30/06/2014 30/06/2015
30/06/2014 30/06/2015
3
EBITDA margin [2]
Earnings per share
45% (Up 21%) 40% cps (Up 110%)
40% 16.00 14.84
33%
35% 14.00
30% 12.00 13.71
25% 10.00 7.06
20% 8.00
15% 6.00
10% 4.00
5% 2.00
0% -
30/06/2014 30/06/2015 30/06/2014 30/06/2015
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1. Gold sales are gold only – not gold equivalent

2. EBITDA and C1 are non-IFRS financial information and are not subject to audit

3. Earnings per share is underlying and pre-equity raising. Statutory EPS is 13.71 for FY15

6

Record FY15 rofit p

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 Higher sales, lower costs and a higher A$ gold price, offset by lower by-product volume

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A$M Net profit (A$M)
17.7
36.5
64.6
106.0
100.1
8.9
3.1
5.9
46.3
4.4
50.0
D&A
Volume
Gold Price By Product Costs
June 2014 Gold Volume Exploration Corporate, June 2015 June 2015
Underlying Profit By Product Price Mine Operating interest & other Underlying Profit Acquisition Costs Stautory Profit
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7

Lower cash costs of sales at all sites

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• Operating cash costs reduced by 5 – 20 %; group total reduced by 9 %

• Activity and production increased during the period offsetting 2 % reduction in grade

• Underground ore tonnes mined up 11 %

• Ore tonnes processed up 3 %

• Gold production up 2 %

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A$M Mine cash cost of sales
397.1
3.7
4.8
18.3
5.1
360.5
4.6
Cash cost of Cracow Edna May Mt Carlton Mt Rawdon Pajingo Cash cost of
sales 2014 sales 2015
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8

All in sustainin costs g

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 Strong turnaround at Edna May

 Mt Carlton successfully offset the impact of reduced by-product credits (A39 complete)

A$/oz

All-in sustaining cost (A$/oz)

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1,350
1,291
1,250
1,213
1,163
1,150
1,058 1,050 1,069 1,054
1,050
950
912
898
886
873
854
850
750
650
Cracow Edna May Mt Carlton Mt Rawdon Pajingo
FY14 FY15 Mt Carlton by product credit
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9

EBITDA mar ins g

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 Increased EBITDA Margin at every operation

 Driven by lower costs and productivity improvements

Group EBITDA margin

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33%
40%
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EBITDA margin

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60%
48%
50%
45%
42%
41%
40%
33%
29%
30%
20%
10%
0%
Cracow Edna May Mt Carlton
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53%
47%
40%
29%
Mt Rawdon
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Pajingo

30/06/2014 30/06/2015

10

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Mine cash flow

Mine cash contribution (%)

• Mine cash generation up 47%

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Ability to fund capital programs and remain cash positive Mt
Carlton,
16% Cracow,
Benefit of diverse portfolio with consistent contribution 24%
Pajingo,
10%
Mine Cashflow (A$M)
40 Mt Edna
Rawdon, May, 26%
35.8 24%
35 33.4 32.9
30.2
30
26.1
25
22.2
20
16.2
15 13.5
11.7
10
6.8
5
-
Cracow Edna May Mt Carlton Mt Rawdon Pajingo
FY14 FY15
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• Ability to fund capital programs and remain cash positive

• Benefit of diverse portfolio with consistent contribution

11

Discover y

• Exploration expenditure increased by 18% to A$24.0M (FY14: A$20.3M)

• Successful resource definition drilling of deeper mineralisation at Edna May

• Drilling guided by 3D seismic extended mineralised zone at Pajingo’s Camembert prospect

• Multiple zones of copper sulphide mineralisation interpreted as extensions to nearby Goanna discovery at Tennant Creek JV

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Exploration investment

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Cracow 3%
19%
Tennant
Creek
29%
Mt Carlton
15%
Pajingo
32%
Mt
Rawdon
2%
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Edna May
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12

Stron rou net cash flow g g p

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 Record operating cash flow to fund sustaining capital, major capital and exploration

• Payment of dividends maintained

• Net cash flow underpins serviceability of debt – enhanced in FY16 by Cowal and Mungari

• A$M Cash flow (A$M)

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239.6
284.7
77.0 174.2
126.8
89.7
91.2
21.3 61.4
5.6
16.7
11.5
cashflow Major Capital Exploration Net cash flow
Free cash flow
Sustaining Capital before financing Interest and Dividendcash Debt Repayment Total Cash Flow
Operating activities Investments, working capital and other Financing excl Equity and Debt repayment payment post DRP Equity Raising net of transaction costs
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13

Balance sheet and earin g g

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• Gearing reduced by 65 % during year (pre-equity raising and debt repayment)

• New facilities in place for Cowal and Mungari acquisitions

• Revolver facility of A$300 M (3 year term)

• Term loan of $400 M (amortises over 5 yrs)

• Performance bond facility of A$155 M

• Prudent hedging program in place

• Profile at 20-25 % of production for 3 years

• 522k oz at A$1,562/oz average[1 ]

• New assets offer options for later years

• Return to shareholders remains a focus

• Final dividend represents 4.2 % of revenue for 6 months

• Franking credits of A$11.8 M become available post closing La Mancha transaction

Gearing (%) [ND/D+E]

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16.0%
13.5%
14.0%
12.0%
12.0%
10.0%
8.0%
6.0%
4.3%
4.0%
2.0%
0.0%
30/06/2013 30/06/2014 30/06/2015 Pre -
Equity
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Hedge profile

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76% 77% 82%
100% 100%
24% 23% 18%
FY16 FY17 FY18 FY19 FY20`
Hedged % Unhedged %
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1. As at 24 August 2015 on completion of La Mancha transaction

14

FY16 uidance g

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Guidance FY16	Gold production	C1 cash costs	All-in sustaining cost
	(oz)	(A$/oz)	(A$/oz)
Cracow	85,000 – 95,000	730 – 800	1,080 – 1,150
Pajingo	60,000 – 65,000	810 – 890	1,180 – 1,260
Mt Rawdon	87,500 – 97,500	620 – 680	880 – 940
Edna May	82,500 – 90,000	1,060 – 1,160	1,225 – 1,325
Mt Carlton	80,000 – 87,500	525 – 575	760 – 810
Cowal1	215,000 – 240,000	650 – 750	860 – 950
Mungari2	120,000 – 135,000	730 – 830	920 – 1,020
Corporate	-	-	30
Group3	730,000 – 810,000	715 – 795	990 – 1,060

1. Cowal transaction completed on 24 July 2015. Guidance includes 11.2 months of production

2. La Mancha transaction completed on 24 August 2015. Guidance includes 10.2 months of production from Mungari

3. Equates to annualised FY16 Group Gold Production of 770,000 – 850,000 ounces

Guiding annualised FY16 Group Gold production of 770,000 – 850,000 ounces

15

Summar y

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• Underlying profit up 112 % to A$106.0 M

• Low Group cash cost of A$711/oz (US$554/oz)

• Improved AISC of A$1,036/oz (US$807/oz)

• Increased EBITDA margins at every operation

• Record Group net cash flow

• Consistent returns to shareholders via revenue-linked dividend policy

• Proactive balance sheet management

• Leveraging operating success to upgrade asset portfolio quality

• Acquisition of Cowal, Mungari and intention to make a takeover bid for Phoenix Gold

(annualised at 770,000 – 850,000 ounces)

We Say, We Do, We Deliver

16

Evolution Mining ASX Code: EVN

www.evolutionmining.com.au

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Evolution Mineral Resources Dec 2014

	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014	Evolution Mineral Resources – December 2014
	Gold			Measured			Indicated			Inferred			Total Resource
	Project	Type	Cut-Off	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)
	Cowal1	Total	0.40	35.94	0.72	836	104.28	1.11	3,712	22.65	0.74	539	162.87	0.97	5,087
	Cracow1	Total	2.8	0.38	9.58	118	1.27	7.69	313	1.57	5.45	276	3.22	6.82	707
	Pajingo	Open pit	0.75	–	–	–	0.00	8.04	1	0.25	1.33	11	0.25	1.45	12
	Pajingo1	Underground	2.5	0.1	11.10	37	1.88	6.08	368	2.49	5.07	406	4.48	5.64	811
	Pajingo	Total		0.1	11.10	37	1.90	6.08	369	2.76	4.74	417	4.73	5.41	823
	Edna May1	Open pit	0.4	–	–	–	26.00	0.94	783	5.22	0.99	167	31.22	0.95	949
	Edna May	Underground	3.0	–	–	–	–	–	–	0.51	6.45	106	0.51	6.45	106
	Edna May	Total		–	–	–	26.00	0.94	783	5.73	1.48	273	31.73	1.03	1,056
	Mt Carlton1	Open pit	0.35	0.09	6.00	17	8.4	3.02	815	–	–	–	8.49	3.07	832
	Mt Carlton	Underground	2.5	–	–	–	–	–	–	0.33	3.65	39	0.33	3.65	39
	Mt Carlton	Total		0.09	6.00	17	8.40	3.02	815	0.33	3.65	39	8.82	3.07	871
	Mt Rawdon1	Total	0.23	1.04	0.51	17	46.00	0.72	1,069	3.65	0.59	69	50.69	0.71	1,156
	Mungari1	Open pit	0.5	0.01	4.38	1	19.13	1.35	829	3.74	1.07	129	22.88	1.30	959
	Mungari1	Underground	2.5/1.2	1.47	7.09	335	8.54	2.95	809	6.85	2.42	534	16.83	3.10	1,678
	Mungari1	Total		1.48	7.06	336	27.67	1.84	1,638	10.59	1.95	663	39.75	2.06	2,637
	Twin Hills+	Open pit	0.5	–	–	–	–	–	–	3.06	2.1	204	3.06	2.1	204
	Twin Hills+	Underground	2.3	–	–	–	–	–	–	1.56	3.9	194	1.56	3.9	194
	Twin Hills+	Total		–	–	–	–	–	–	4.62	2.7	399	4.62	2.7	399
	Total			39.03	1.08	1,361	215.52	1.26	8,699	51.90	1.60	2,675	306.43	1.29	12,736

The Cracow, Pajingo, Edna May, Mt Carlton, Mt Rawdon and Twin Hills figures are provided in the report entitled “Annual Mineral Resources and Ore Reserve Statement 2014” released to ASX on 14 May 2015. The Mungari (White Foil open pit, White Foil underground 1.2 g/t Au cut-off and Frog’s Leg underground 2.5 g/t Au cut-off) figures are extracted from the report entitled “Evolution to Combine with La Mancha Resources Australia to Form a Leading Growthfocused Australian Gold Producer” released to ASX on 20 April 2015. Cowal figures are extracted from the report entitled “Resources and Reserves increased at Cowal” released on 26 August 2015. All documents are available to view at www.evolutionmining.com.au

Data is reported to significant figures to reflect appropriate precision and may not sum precisely due to rounding Mineral Resources are reported inclusive of Ore Reserves

1Includes stockpiles + Twin Hills has not changed as it is being reported as 2004 JORC Code

Due to depletion of A39 at Mt Carlton and lower grade Ag, Cu for remaining resource at Mt Carlton, the 2014 Mineral Resources and Ore Reserves statement has been reported in gold ounces The Cowal mine was acquired on 24 July 2015 and the Mungari assets on 24 August 2015

The Company confirms that it is not aware of any new information or data that materially affects the information included in the Report and that all material assumptions and technical parameters underpinning the estimates in the Report continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the Report

Evolution Ore Reserves Dec 2014

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Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014
Gold			Proved			Probable			Total Reserve
Project	Type	Cut-Off	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)
Cowal1	Open pit	0.40	35.94	0.72	836	36.64	1.14	1,346	72.58	0.93	2,181
Cracow1	Underground	3.5	0.38	7.41	91	0.78	6.31	158	1.16	6.67	248
Pajingo1	Underground	3.3	0.15	7.85	38	0.29	6.50	60	0.44	6.96	98
Edna May1	Open pit	0.5	-	-	-	11.73	1.02	387	11.73	1.02	387
Mt Carlton1	Open pit	0.9	0.09	6.00	17	4.36	4.30	607	4.45	4.40	625
Mt Rawdon1	Open pit	0.3	1.04	0.50	17	34.19	0.78	862	35.22	0.80	879
Mungari1	Underground	3.0	1.81	5.52	320	0.72	5.30	123	2.53	5.46	443
Mungari1	Open pit	0.75	-	-	-	6.79	1.55	338	6.79	1.55	338
Mungari1	Total		1.81	5.51	320	7.51	1.91	461	9.32	2.61	781
Total			39.40	1.04	1,319	95.49	1.26	3,880	134.89	1.20	5,198

Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014	Evolution Ore Reserves – December 2014
Gold			Proved			Probable			Total Reserve
Project	Type	Cut-Off	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)
Cowal1	Open pit	0.40	35.94	0.72	836	36.64	1.14	1,346	72.58	0.93	2,181
Cracow1	Underground	3.5	0.38	7.41	91	0.78	6.31	158	1.16	6.67	248
Pajingo1	Underground	3.3	0.15	7.85	38	0.29	6.50	60	0.44	6.96	98
Edna May1	Open pit	0.5	-	-	-	11.73	1.02	387	11.73	1.02	387
Mt Carlton1	Open pit	0.9	0.09	6.00	17	4.36	4.30	607	4.45	4.40	625
Mt Rawdon1	Open pit	0.3	1.04	0.50	17	34.19	0.78	862	35.22	0.80	879
Mungari1	Underground	3.0	1.81	5.52	320	0.72	5.30	123	2.53	5.46	443
Mungari1	Open pit	0.75	-	-	-	6.79	1.55	338	6.79	1.55	338
Mungari1	Total		1.81	5.51	320	7.51	1.91	461	9.32	2.61	781
Total			39.40	1.04	1,319	95.49	1.26	3,880	134.89	1.20	5,198

The Cracow, Pajingo, Edna May, Mt Carlton, and Mt Rawdon are provided in the report entitled “Annual Mineral Resources and Ore Reserve Statement 2014” released to ASX on 14 May 2015. The Mungari (White Foil open pit and Frog’s Leg underground) figures are extracted from the report entitled “Evolution to Combine with La Mancha Resources Australia to Form a Leading Growth-focused Australian Gold Producer” released to ASX on 20 April 2015. Cowal figures are extracted from the report entitled “Resources and Reserves increased at Cowal” released on 26 August 2015. All documents are available to view at www.evolutionmining.com.au

Data is reported to significant figures to reflect appropriate precision and may not sum precisely due to rounding 1Includes stockpiles

Due to depletion of A39 at Mt Carlton and lower grade Ag, Cu for remaining resource at Mt Carlton, the 2014 Mineral Resources and Ore Reserves statement has been reported in gold ounces The Cowal mine was acquired on 24 July 2015 and the Mungari assets on 24 August 2015

The Company confirms that it is not aware of any new information or data that materially affects the information included in the Report and that all material assumptions and technical parameters underpinning the estimates in the Report continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the Report