IGO LIMITED — Interim / Quarterly Report 2018

Feb 5, 2018

INDEPENDENCE GROUP NL Investor Information Booklet

Nova and Tropicana underpin strong 2Q18 quarterly result

Cautionary statements & disclaimer

• This presentation has been prepared by Independence Group NL ("IGO") (ABN 46 092 786 304). It should not be considered as an offer or invitation to subscribe for or purchase any securities in IGO or as an inducement to make an offer or invitation with respect to those securities in any jurisdiction.
• This presentation contains general summary information about IGO. The information, opinions or conclusions expressed in the course of this presentation should be read in conjunction with IGO's other periodic and continuous disclosure announcements lodged with the ASX, which are available on the IGO website. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the information, opinions and conclusions expressed in this presentation.
• This presentation includes forward looking information regarding future events, conditions, circumstances and the future financial performance of IGO. Often, but not always, forward looking statements can 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 statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are beyond IGO's control, which may cause actual results and developments to differ materially from those expressed or implied. Further details of these risks are set out below. All references to future production and production guidance made in relation to IGO are subject to the completion of all necessary feasibility studies, permit applications and approvals, construction, financing arrangements and access to the necessary infrastructure. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources and Ore Reserves, as well as any Competent Persons' Statements included in periodic and continuous disclosure announcements lodged with the ASX. Forward looking statements in this presentation only apply at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information IGO 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.
• There are a number of risks specific to IGO and of a general nature which may affect the future operating and financial performance of IGO and the value of an investment in IGO including and not limited to economic conditions, stock market fluctuations, commodity demand and price movements, access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve and resource estimations, native title and title risks, foreign currency fluctuations and mining development, construction and commissioning risk. The production guidance in this presentation is subject to risks specific to IGO and of a general nature which may affect the future operating and financial performance of IGO.
• Any references to IGO Mineral Resource and Ore Reserve estimates should be read in conjunction with IGO's 2017 Mineral Resource and Ore Reserve announcement dated 23 October 2017 and lodged with the ASX, which is available on the IGO website.
• All currency amounts in Australian Dollars unless otherwise noted.
• Cash Costs are reported inclusive of Royalties and after by-product credits on per unit of payable metal basis, unless otherwise stated.
• IGO reports All-in Sustaining Costs (AISC) per ounce of gold for its 30% interest in the Tropicana Gold Mine using the World Gold Council guidelines for AISC. The World Gold Council guidelines publication was released via press release on 27 June 2013 and is available from the World Gold Council's website.
• Underlying EBITDA is a non-IFRS measure and comprises net profit or loss after tax, adjusted to exclude tax expense, finance costs, interest income, asset impairments, redundancy and restructuring costs, depreciation and amortisation, and once-off transaction costs.
• Underlying NPAT comprises net profit (loss) after tax adjusted for; post tax effect of acquisition and integration costs, and impairments.
• Free Cash Flow comprises Net Cash Flow from Operating Activities and Net Cash Flow from Investing Activities. Underlying adjustments exclude acquisition costs, proceeds from investment sales and payments for investments.

2Q18 Highlights

Nova and Tropicana underpin strong quarterly result

• Nova production and costs within guidance range
• ─ Ore mining/milling rate better than nameplate in December
• ─ Improved metallurgical recoveries
• ─ Bollinger stoping commenced
• Tropicana gold production, cash costs and AISC significantly better than pro-rata full year guidance
• Primary metal production from Jaguar and Long all broadly within pro-rata full year guidance
• Unaudited underlying EBITDA of A\$65M and cash flow from operating activities of A\$51M
• Net debt reduced from A\$174M to A\$120M
• Stockman transaction completed
• COO transition effected

Corporate Summary

Positioned for a strong 2H18

A\$M	FY17	YTD
Revenue	422	355
Underlying EBITDA(1)	151	133
Net Profit after Tax	17	3
Cash Flow from Operations(2)	78	111
Underlying Free Cash Flow(3)	(113)	41
Cash	36	52
Debt	200	171

Strong balance sheet	\$200M undrawn revolver open
Dividend policy of ~30%	Net debt reduced from
NPAT	A\$174M to A\$120M

1) Underlying EBITDA is a non-IFRS measure (refer to Disclaimer page).

• 2) FY17 cash flow from Operating Activities only from Tropicana, Jaguar and Long Operations.
• 3) Underlying Free Cash Flow is a non-IFRS measure (refer to Disclaimer page). It also excludes net payment for the acquisition of Sirius Resources NL in FY16
• 4) As at 31 December 2017
• 5) As at market close 31 Jan 2018

Share Ownership
Substantial Holders(5) Institutional Ownership(4)
Mark Creasy	16%	Australia	62%
FIL	9%	USA & Canada	27%
T Rowe Price	8%	UK & Europe	8%
CBA	5%	ROW	3%
Ausbil	5%

1) Euroz Research – 31 Jan 2018

Sustainability

Focused on better outcomes for our people

• No lost time injuries during the Quarter bringing LTIFR(2) down to 2.09
• Visible safety leadership focus continues driving significant improvement in lead metrics
• Good progress in a number of areas and no material environmental incidents
• DMIRS(5) community partnership award finalist
• Established a heritage agreement with the Ngadju people
• FY17 Sustainability Report published

Key Lag Safety Metrics(1,2,3)

• 1) 12 month moving average MTIFR Medically Treated Injury Frequency Rate: calculated as the number of medically treated injuries x 1,000,000 divided by the total number of hours worked
• 2) 12 month moving average LTIFR Lost Time Injury Frequency Rate: calculated as the number of Lost Time injuries x 1,000,000 divided by the total number of hours worked
• 3) Sep-17 LTIFR rate has increased from 2.75 to 2.83 as a result of the reclassification of a single injury from 29 Jul 2017
• 4) VSLI: Visual Safety Leadership Interaction
• 5) Department of Mines, Industry Regulation and Safety

LTIFR 12 MMA MTIFR 12 MMA

6

Strengthening Financial Results

Balance sheet continuing to strengthen with net debt reduced to A\$120M

	Units	1Q18	2Q18	YTD
Revenue and Other Income	A\$M	147.5	207.3	354.8
Underlying EBITDA(1)	A\$M	68.9	64.5	133.4
Profit (Loss) After Tax	A\$M	4.7	(1.5)	3.2
Net Cash from Operating Activities	A\$M	60.6	50.8	111.4
Underlying Free Cash Flow(2)	A\$M	28.9	11.6	40.6
Cash	A\$M	29.1	51.3	51.3
Debt	A\$M	171.4	171.4	171.4

2Q18 revenue has increased 82% relative to 4Q17

1) Underlying EBITDA is a non-IFRS measure (refer to Disclaimer page).

2) Free Cash Flow comprises Net Cash Flow from Operating Activities and Net cash Flow from Investing Activities. FCF excludes A\$11M in partial proceeds received during the Quarter from divestment of Stockman Project

2Q18 Cash Flow Reconciliation

Cash flow lower due to timing of A\$27M December sales receipts

Nova

Low cost Ni – Cu – Co mine

Overview	1.5Mtpa underground mine and processing plant
Resource(1) Reserve(1)	271,000t Ni, 113,000t Cu, 9,000t Co 274,000t Ni, 110,000t Cu, 9,000t Co
Production Guidance FY18 (contained metal in concentrate)	25,000t Ni 11,000t Cu 925t Co
Operating Cost Guidance FY18 (payable)	A\$2.20/lb
Capital Guidance FY18	Development A\$54M Sustaining Remnant Build
Exploration Budget Guidance FY18	A\$9M

1) For further information on Mineral Resources and Ore Reserves please refer to ASX release on 23 Oct 2017

Nickel production and costs within guidance, and improved metallurgical recoveries QoQ

Metric	Units	1Q18	2Q18	YTD	Guidance(1)
Nickel in concentrate	t	4,500	4,454	8,954	7,500 – 9,000
Copper in concentrate	t	1,832	2,011	3,843	4,000 – 4,500
Cobalt in concentrate	t	144	146	290	250 – 350
Cash cost (payable)	A\$/Ib Ni	3.98	3.84	3.91	3.70 - 4.50
Development Capex	A\$M	14.7	13.3	28.0	30 – 32
Build Capex(2)	A\$M	1.6	(2.9)	(1.2)	0 – 2
Sustaining Capex	A\$M	0.1	2.4	2.5	3 – 5
Exploration expenditure	A\$M	1.6	1.5	3.1	5 - 6

2Q18 Drivers & Outlook

• Development advance for the Quarter of 3,210m was a record
• Bollinger stoping commenced in December
• Recoveries improved through the Quarter and in December were performing in-line with or better than design recoveries
• Although reconciliation to resource model was slightly lower, grade is generally conforming to plan albeit with localised variability
• Scoping study to investigate Ni/Co sulphate downstream processing progressed, metallurgical testwork to commence in 3Q18

1) Nova 1H18 guidance range

2) Build capex represents the net balance, on a cash basis, paid to suppliers and received from customers for pre-30 Jun 2017 Capital Expenditure activities

Nova Grade Control(1)

Early de-risking of mineral resource

• Grade control drilling well progressed
• Nova main orebody complete with final drilling to commence on the Upper Nova levels
• Drilling of Bollinger Inferred Mineral Resources is largely complete
• Bollinger infill drilling to continue for local Measured Resource definition
• Most potential extensions have been tested with mineralisation footprint well delineated
• Mineral Resource and Ore Reserve update expected in July 2018

1) Refer to ASX release dated 26 Jul 2017: Nova Mineral Resource Estimate and Exploration Update

11

Nova Mining Lease Exploration

3D Seismic program to commence in 3Q18

Initial work program completed in 1Q18:

• Drilled historical EM plates
• Drilled Western Mafic complex
• Drilled several stratigraphic holes on the 2D seismic line to aid planning for 3D seismic program

Positive results

• Disseminated and blebby sulphides intersected in Western Mafic intrusive (400m west of Nova)

Next steps:

• 3D seismic commencing in 3Q18
• HiSeis on site since 31 January to commence data acquisition
• Follow up drilling West and East of Nova
• Drill Nova ML geochem anomalies

Nova Mining Lease Exploration

Near mine exploration space is wide open

Nickel and Cobalt Sulphate

Nova Downstream Processing Potential

Scoping study underway to investigate the potential for downstream processing to produce nickel and cobalt sulphates

• Expected to be completed 3Q18
• Metallurgical testwork to commence in 3Q18

Targeting PFS completion around end-CY18

1) Source: Asian Metals, BNEF

2) Nickel Sulphate price converted to per unit of nickel

JV – IGO 30% with AngloGold Ashanti 70%

Overview	7.8Mtpa open pit and processing plant
Resource(1)	7.5Moz (100%)	2.2Moz (30%)
Reserve(1)	4.1Moz (100%)	1.2Moz (30%)
Production Guidance	(100%)	(30%)
FY18	465koz	139.5koz
Operating cost Guidance	Cash cost	AISC
FY18	A\$715/oz	A\$1,115/oz
Capital Guidance FY18 (100%)	A\$72M	Improvement Sustaining Waste Stripping
Exploration Budget Guidance FY18		A\$4.5M (30%)

1) For further information on Mineral Resources and Ore Reserves please refer to ASX release on 7 Dec 2017 – Tropicana JV Commits to Long Island and Increased Milling Capacity

Production, cash costs and AISC significantly better than guidance

Metric	Units	1Q18	2Q18	YTD	Guidance(2)
Gold produced (100%)	koz	114.1	135.2	249.3	220.0 – 245.0
Gold Sold (IGO 30%)	koz	33.0	41.4	74.4	66.0 – 73.5
Cash cost	A\$/oz	737	628	678	680 – 750
AISC(1)	A\$/oz	1,167	939	1,040	1,060 – 1,170
Sustaining/improve capex	A\$M	2.4	6.0	8.4	10.0 – 12.0
Capitalised waste stripping	A\$M	12.9	10.0	22.9	22.0 – 27.5
Exploration expenditure	A\$M	1.1	1.3	2.4	2.0 – 2.5

2Q18 Drivers & Outlook

• Stronger 2Q18 result driven by throughput and grade, 1.97Mt of ore processed at an average grade of 2.45g/t Au. Recovery increased to 89.1% compared to 88.8% in 1Q18
• Mining and processing physicals all in line with expectations
• Grade streamlining has re-commenced and delivers elevated gold production in CY18 and CY19
• Phase One of the Long Island strategy has been approved as well as the decision to install an additional 6MW ball mill in the processing plant
• Accelerated mining rates maintained in the Quarter and will continue as part of Long Island mining strategy

2) Implied half yearly guidance (FY18 guidance divided by two)

Transitioning to Long Island Strategy

Based on strip mining and in-pit waste dumping

• Possible due to tabular geometry and strike extent Step change in mining costs
• Transition to face shovels
• Bigger benches to reduce drill and blast costs
• Shorter hauls due to in-pit dumping of waste

Delivers longer mine life with staged decision points to reduce risk

• Phase One approved in December 2017(1)

450

600

750

Gold produced Gold production forecast range AISC forecast

koz A\$/oz

1) Refer to ASX release dated 7 Dec 2017: Tropicana JV Commits to Long Island and Increased Milling Capacity

900

1,200

1,500

Boston Shaker drilling and underground studies continue

Underground drilling returned significant intercepts

• 18m at 6.58g/t Au from 587m
• 37m at 6.49g/t Au from 509m
• 20m at 5.82g/t Au from 609m

Next steps:

• Drill program scheduled for completion 3Q18
• Scoping study has commenced and will be followed by a Pre-Feasibility Study in CY18
• Aim to define underground Ore Reserve by the end of CY18

Jaguar

100% owned underground Cu – Zn VMS

Overview	High grade Underground Cu – Zn VMS
Resource(1) Reserve(1)	55kt Cu, 364kt Zn & 18Moz Ag, 90koz Au 16kt Cu, 161kt Zn, 8Moz Ag, 36koz Au
Production Guidance FY18 (contained metal in concentrate)	31,000t Zn 2,800t Cu
Operating cost Guidance FY18 (payable)	A\$0.95/lb Zn
Capital Guidance FY18	Development A\$19M Sustaining
Exploration Budget Guidance FY18	A\$4M

1) For further information on Mineral Resources and Ore Reserves please refer to ASX release on 23 Oct 2017

Jaguar zinc guidance met YTD, with production expected to increase QoQ in 3Q18

Metric	Units	1Q18	2Q18	YTD	Guidance(1)
Zinc in concentrate	t	8,105	6,885	14,990	14,500 – 16,500
Copper in concentrate	t	530	591	1,121	1,300 – 1,500
Cash cost (payable)	A\$/lb Zn	1.03	1.37	1.19	0.85 – 1.05
Sustaining capex	A\$M	3.2	2.8	6.0	4.0 – 4.5
Development capex	A\$M	2.7	3.6	6.3	5.0 – 5.5
Exploration expenditure	A\$M	1.0	1.3	2.3	1.5 – 2.5

2Q18 Drivers & Outlook

• Lower zinc in concentrate production reflects lower scheduled zinc grades and lower tonnes mined, production expected to increase in 3Q18 and 4Q18
• Follow up drilling at Jaguar Rising and Pteradactyl in 2Q18 confirms previous anomalism. Regional work program continuing
• Development of Life of Mine scheduling for the Value Enhancement opportunities including Bentley Deeps, Triumph, re-entry of Jaguar and Teutonic Bore depth extensions

Long

100% owned high-margin underground nickel mine

Overview	Average grade project to date of 3.8% Ni Consistent low cost producer
Resource(1) Reserve(1)	54,000t Ni 6,200t Ni
Production Guidance FY18 (contained metal in concentrate)	5,700t Ni
Operating cost Guidance FY18 (payable)	A\$4.65/lb
Capital Guidance FY18	Sustaining A\$1.5M Development
Exploration Budget Guidance FY18	A\$1.5M

1) For further information on Mineral Resources and Ore Reserves please refer to ASX release on 23 Oct 2017

Long

Long production guidance met YTD

Metric	Units	1Q18	2Q18	YTD	Guidance(1)
Contained nickel produced	t	1,572	1,374	2,946	2,700 – 3,000
Cash cost (payable)	A\$/lb Ni	4.80	5.47	5.10	4.40 – 4.90
Sustaining capex	A\$M	0.1	0.1	0.2	0.3 – 0.5
Development capex	A\$M	0.0	0.0	0.0	0.3 – 0.5
Exploration expenditure	A\$M	0.0	0.0	0.0	0.5 – 1

2Q18 Drivers & Outlook

• Planning for cessation of mining and commencement of care and maintenance continues
• Lower grade and tonnes mined compared to previous Quarter from multiple mining areas
• EM survey at Long North, to test concept that mineralisation continues to the north, commenced late in the Quarter and was still ongoing at Quarter-end
• Expect final mining to be 31 May 2018

Nickel Produced (contained) Copper Produced (contained)

FY18 Exploration

A\$50M commitment to exploration in FY18

FY18 Exploration Budget

Nova Tropicana Jaguar Long Other Greenfields

Why Explore in the Fraser Range

Creation of Belt Scale opportunity by consolidation of 14,300km²

Why Explore in the Fraser Range

"Where there's smoke there's fire"

• Several mafic/ultramafic intrusions are known to occur along the Fraser Range
• Multiple companies have reported magmatic Ni-Cu sulphides in mafic and ultramafic rocks along the entire belt
• Sulphide occurrences range from disseminated to blebby to massive
• The presence of multiple mafic/ultramafic intrusions, some with Ni-Cu sulphides is typical for belts that host multiple Ni-Cu deposits

1) Classic Minerals ASX Releases: 29 August 2013, 12 December 2013 and 17 December 2016

• 2) Sirius Resources ASX Release: June 2015 Quarterly
• 3) Enterprise Metals EIS Final Drilling Report to DMP: 25 July 2014
• 4) Orion Gold ASX Release 17 March 2014
• 5) Legend Mining ASX Release 6 June 2017
• 6) Buxton Resources ASX Release: 15 December 2014
• 7) Newmont report to DMP, 1968
• 8) Arrow Minerals ASX Release: 5 February 2018

Magmatic Sulphide Mineralisation

26

What do mafic Ni-Cu deposits and camps look like – Voisey's Bay example

Deposit analogues

• Chonoliths have a small footprint
• The small size is important to the genesis of world class deposits

Scale

• Mineralisation usually occurs over >6km zone
• There are always multiple lenses, often >5
• Nova Bollinger is currently within a 1km zone
• Nova Bollinger has 2 lenses

Fraser Range Exploration

Multiple systematic work programs

Systematic belt scale exploration activities continued during 2Q18:

• Spectrem and downhole EM surveys ongoing, which have identified conductors
• Ongoing gravity survey and mapping
• Aircore program with 88,183m drilled to Quarter-end
• RC/Diamond program consisting of approximately 3,700m continues in 3Q18 at Mai Tai, Woolly, Pygmy and Zanthu

Lake Mackay Exploration

Belt scale greenfields project

Total area under granted licences and applications increased to 12,800km²

• 6 new exploration licence applications added

First diamond drilling at Grapple(1,2)

• Six holes completed for 2,917m
• Multiple narrow sulphide intervals in all holes
• Hole 1 returned two mineralised intersections:
• ─ 11.4m @ 7.9g/t Au, 20.7g/t Ag, 0.8% Cu, 1.1% Zn, 0.5% Pb and 0.1% Co from 285m
• ─ 14.4m @ 1.8g/t Au, 6.0g/t Ag, 1.1% Cu, 0.3% Zn and 0.1% Pb from 348m
• Soil sampling and areas adjacent to EL24915 completed in November, results pending

Corporate

Update

Divestment of Stockman Project to CopperChem completed in December 2017(1)

• Proceeds of A\$11.2M were received at completion
• A\$21M cash payments are scheduled to be received during the 12 months following completion

Change of Chief Operating Officer effected February 2018

• Matt Dusci appointed Chief Operating Officer now effected (previously Chief Growth Officer)
• Rob Dennis appointed Chief Transformation Officer now effected (previously Chief Operating Officer)

Growth functions reporting to CEO

• Andrew Eddowes (Business Development)
• Ian Sandl (Exploration)

Concluding Comments

• A strong 2Q18 with Nova nickel production and costs within guidance
• ─ Improved metallurgical recoveries
• ─ Bollinger stoping commenced
• Solid contributions from Tropicana, Jaguar and Long
• Tropicana Long Island Phase One and second ball mill installation commenced
• Underlying EBITDA in -line with previous Quarter while operating cash flow impacted by timing of shipment receipts
• Net debt reduced from A\$142M to A\$120M
• Strong drill results supporting underground potential at Boston Shaker
• Nova seismic survey commencing 3Q18