IONIC RARE EARTHS LIMITED — Investor Presentation 2014

Nov 20, 2014

ORO VERDE LIMITED

(ASX: OVL)

Nicaragua – A New Golden Frontier

November 2014

Oro Verde Limited

New Direction for Oro Verde (OVL)

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N ow a Nicaraguan-focused gold and copper explorer via August 2014 acquisition of Goldcap Resources Ltd Two projects in Nicaragua

• Option over Topacio Gold Project (340,000 oz gold resource) - announced by OVL on 11 November 2014 - 100% of San Isidro exploration project adjacent to 2.6 Moz Au resource (La India)

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• Restructured Board and Management

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High quality in country team

Oro Verde Limited

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Corporate

Oro Verde Capital Structure (After acquisition of Goldcap)	Oro Verde Capital Structure (After acquisition of Goldcap)
ASX Code:	OVL
Issued Shares:	360m
Options:	20.1m @ $0.27(Dec ’14) 2.5m @ $0.20(Jan ‘16) 1.0m @ $0.04(Mar ‘16) 66.0m @ $0.01(Sep ‘17) 66.0m @ $0.05(Sep ‘19)
Market Cap (undiluted):	$3.96m_(at 1.1c)_

Board & Management Dr Wolf Martinick – Non exec Chairman Mr Tony Rovira – Non exec Director Dr Brad Farrell – Non exec Director Mr Brett Dickson – Finance Director Mr Trevor Woolfe - CEO

OVL 12 Month Chart - ASX

Major Shareholders(after acquisition)	Major Shareholders(after acquisition)
Brad Farrell	13.7%
Wolf Martinick	13.2%
Bernes Nominees PL	8.9%
Tony Rovira	6.5%
Top 20	56.1%

Oro Verde Limited

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Nicaragua Snapshot

Location: Central America Area: 130,000km[2] (2 x Tasmania) Capital: Managua Languages: Spanish (Official), English & Indigenous

Population: 6.1 million Pop. < 39yrs: 76.4% Currency: Cordoba (US$1 = C$26)

Currency stability: 5%pa devaluation vs USD

Oro Verde Limited

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Nicaragua Snapshot

Strengthening economy and stable politics Following the famous revolutionary period of the 1970s and 1980s, stable democracy was returned to Nicaragua in 1990.

• Democratically elected governments for >20 years - Rated as the safest country in Central America GDP: +4.6% in 2013 Unemployment: 5.9% Under-employment: 48.3% Inflation: 5.7%

Oro Verde Limited

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Mining Profile – Central America

• Overall Central American mineral production:

> 34 Moz Gold

>276 Moz Silver

> 15 Mt Copper

• Abundant gold mines in the countries surrounding Nicaragua

• Four large (>1Moz) gold mining districts identified to date in Nicaragua

	Gold Production in Central American Countries	Gold Production in Central American Countries	Gold Production in Central American Countries
	Country	Gold Production	Gold Districts >0.5 Moz
	Nicaragua	14 Moz	4
	Honduras	10 Moz	10
	El Salvador	4 Moz	4
	Costa Rica	4 Moz	4

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Oro Verde Limited

Gold Mining in Central America

Honduras

El Salvador

Nicaragua

Gold Mines +0.5Moz Gold Districts Gold Trends Nicaraguan Gold Production Gold Districts + Resources Golden Trian le 7.9 Moz g El Limon 3.5 Moz La India 2.9 Moz 7 Costa Rica La Libertad 1.8 Moz

Mining Profile – Nicaragua

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Nicaragua Gold Gold Production
Districts + Resources
Golden Triangle
+7.9 Moz
(Bonanza/Rosita/Siuna
El Limon +3.5 Moz
La India +2.9 Moz
San Isidro
La Libertad +1.8 Moz
TOPACIO +0.3 Moz
production only, current resources unknown
Topacio
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Mining Profile – Nicaragua

Nicaragua Major Gold Projects	Ownership	2013 Gold Production	2013 Production Costs	Gold Reserves + **Resources1 **
Bonanza	HEMCO/Mineros	65,000 oz	U$700-800 /oz	*
El Limon	B2Gold	58,000 oz	U$652 /oz	+0.7 Moz
La India	Condor Gold	-		+2.4 Moz
La Libertad	B2Gold	139,000 oz	U$563 /oz	+1.3 Moz
TOPACIO	ORO VERDE LTD	-		+0.3 Moz

1 Company reports

  - current resources unknown

• [- Total gold endowment (production + resources): >15 Moz gold ]

• 3 major gold mines currently operating (2 companies)

• Artisanal mining is widespread throughout Nicaragua

• 2013 gold production: 310,000 oz

• Low cost gold production

• Oro Verde Limited

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Topacio Gold Project – New Acquisition

Located in the southeast of Nicaragua, just 200km from Managua

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TOPACIO
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Topacio Gold Project – Good access

• Inferred Mineral Resource: 340,000 oz Au (NI 43-101)*

• 93 km[2 ] concession

• Adjacent to the regional highway

• Rolling hills and farming lands

• Artisanal mining active

• Previous modern exploration focused on limited (~5 km[2] ) area of the current concession, carried out by:

• 1984 CPRM (Brazil) - 1995-96 Triton Mining Co. (Canada) - 2011-13 FDG Mining/Tango Gold (Canada ) 11

• Oro Verde Limited

*Refer Disclaimer

Topacio Gold Project – Under-explored

A 93 km[2] concession in farming country - adjacent to the highway

Resource area Explored area Under-explored area

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Oro Verde Limited

Topacio Gold Project – High grade Au

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• Multiple veins
• Epithermal system
• Steeply SE dipping
• Current resource focuses on 11
separate veins
• E-NE trending veins
• Depth <200 m
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Topacio Gold Project – Advanced Project

• Inferred Mineral Resource in accordance with NI 43-101 guidelines (Canada)

  • 2,716,000 tonnes at 3.90g/t Au (containing 340,000oz Au)

• Opportunity for early gold production

• Remainder of concession is under-explored

• Highly prospective for additional gold discoveries

• OVL aims to:

• upgrade resource to JORC standard; and

• expand the resource by additional drilling and new discoveries

• Project due diligence (4 months) is underway

This is a foreign estimate and is not reported in accordance with the JORC Code. A Competent Person has not done sufficient work to classify the estimate as mineral resource in accordance with the JORC Code. It is uncertain that following evaluation and further exploration work that the estimates will be able to be reported as mineral resource s in accordance with the JORC Code.

Oro Verde Limited

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Topacio Gold Project – Deal Structure

Cheap entry

•  3 year Option to Purchase Agreement

•  Through OVL’s Nicaraguan subsidiary – Minera San Cristobal, S.A.

•  Acquire 100% of the Project over 3 years by:

• USD$2m minimum exploration expenditure

• USD$40,000 payments to vendor every 6 months (total USD$240,000)

• Exercise option by paying USD$1,500,000 to vendor, PLUS either:

  • 2% NSR royalty; OR

  • US$1/oz Au in Measured/Indicated resources (according to either NI 43-101 or JORC)

Oro Verde Limited

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San Isidro Gold Project

- adjacent to 2.4Moz La India gold resource

• 100% OVL

• 2,520 ha

• Early stage

• Vein type

• Epithermal style

Oro Verde Limited

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San Isidro
Topacio
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La India District – San Isidro Project

San Isidro – 25km[2]

• Sampling of high grade quartz veins • 17 rock chip samples

• • 16 > 4g/t Au

• • 10 > 10g/t Au

La India District

Condor Resources Plc JORC Resource = 2.3Moz gold @ 3.9g/t Au

Cristalito

Condor Resources Plc Resource = 34Koz gold @ 5.3g/t Au

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Mining History – Nicaragua

• Gold mining in Nicaragua since early 1500s

• Nicaragua was in the world’s top 10 gold producers in the 1950s

• BUT – all mining effectively ceased in 1979 for > 20 years when Sandinista Government nationalised and closed all mines

• Nicaragua missed out on the 1980’s/1990’s gold mining & exploration boom which surged in surrounding countries El Salvador, Honduras & Costa Rica

• Recent resurgence of interest in Nicaraguan gold mining

• Gold:18% of total Nicaraguan exports (#1)

Data from ProNicaragua

Oro Verde Limited

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Mining Legal Framework

Special Law for the Exploration and Exploitation of Mines (Law 387) Single title type: Mining Concession Maximum area = 50,000 hectares

Valid for 25 years with 25 year extension

Concession holder has exclusive rights for exploration and exploitation of all minerals

Escalating annual concession payments by area

3% Mining Royalty

Oro Verde Limited

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Investment opportunity

Nicaraguan focus provides a turnaround opportunity for OVL Opportunity to invest early in booming gold sector of Nicaragua

• A gold-rich country with only 3 operating mines

Topacio is an advanced gold resource with plenty of upside to build on the existing 340,000oz resource base

Almost no modern exploration – ripe with opportunities for gold & silver deposits and good potential for copper

OVL has formed strong links to:

• High levels of Nicaragua government

• Mining companies and industry bodies in Nicaragua

• Funding in Australia and North America

San Isidro property (2,520ha) is next to 2.4Moz La India gold deposit

High quality opportunities with other Nicaragua properties under review

Oro Verde Limited

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Board and Management – Latin focus

• Wolf Martinick (Non exec Chairman) - appointed director and chairman in January 2003. He is an environmental scientist and has been involved with mineral exploration and mining projects around the world, especially Australasia, Africa, China, India, parts of the former Soviet Union and more recently in Chile with OVL. Dr Martinick is a founding director and the chairman of Weatherly International plc, and was a founding director of Basin Minerals Limited that discovered a world-class mineral project in Victoria, that was acquired by Iluka Resources Limited in 2003.

• Tony Rovira (Non exec Director) - a geologist with 30 years experience in the mineral exploration and mining industry, working in Australia, Mexico and the South Pacific with companies including BHP and Jubilee Mines. Mr. Rovira led the team that discovered and developed the Cosmos Nickel Mine and in 2000 AMEC awarded Mr. Rovira the Australian Prospector of the Year. For the past 10 years, Mr Rovira has been Managing Director of Mexican-focused Azure Minerals Ltd.

• Brad Farrell (Non exec Director) - a highly qualified and experienced geologist with more than 43 years experience in the worldwide exploration and evaluation of a wide range of commodities. He has managed numerous extensive exploration projects for both junior and major companies which have resulted in discoveries that are currently in production. Dr. Farrell was the founder Chairman and Managing Director of Basin Minerals Limited and was responsible for the discovery of the Douglas world class mineral sands deposit that was acquired by Iluka Minerals Limited in 2002.

• -

• Brett Dickson (Finance Director) has a successful corporate career focusing on the start-up, restructuring, management, growth and financing of emerging publicly listed mining, exploration and oil and gas companies. He has been a director of, and involved in the executive management of, a number of publicly listed resource companies with operations in Australia, Finland, the Ukraine, Laos, Papua New Guinea, South Africa, Chile and Mexico.

• . – Trevor Woolfe (CEO) a geologist with over 25 years experience in the exploration and mining industry with

• companies including CRA, Great Central Mines, Newcrest and Placer Dome. Based in South America for 4 years with Placer Dome in the 1990s, pioneering a team in Brazil and exploring in Chile. Former MD of ASX listed explorer Anchor Resources Ltd and Chile focused explorer Serena Resources Ltd (unlisted). Founded a consulting group in 2012 and has since focused in Australia, Latin America, NZ and Africa.

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Oro Verde Limited

Quality team - in country

• Oro Verde has set up its local office in Managua

• Legal team has been appointed (currently undertaking Due Diligence on Topacio Project)

• Strong network of industry, government and business relationships within Nicaragua

• Jacques Levy (Administration Manager) - a highly motivated entrepreneur with experience in ventures ranging from the wholesale, duty free, gaming and ecological medical waste management industries in Nicaragua. He has an extensive portfolio of international companies that he has helped establish in his native Nicaragua through his consultancy located in Managua. Schooled in USA, Mr Levy has extensive relationships within the private sector and with governmental officers throughout Nicaragua.

• Sylvana Levy (Business Consultant) - a Nicaraguan native, has over 20 years of experience in International Marketing and has developed a broad network in Nicaragua through personal relationships and by representing her country. She worked for the Nicaraguan Government as a Diplomat in Washington DC and was also appointed Due Diligence Director for the privatisation of the Nicaraguan Government-owned phone company. She graduated with honours with a hospitality degree from Switzerland and Magna Cum Laude with an MBA in International Business. She is fluent in four languages.

• Experienced Geology Manager (TBC) – Oro Verde has attracted a highly experienced bilingual geologist with over 20 years exploration and mining experience, the majority within Nicaragua and Central America. Has strong industry relationships within Nicaragua and understands the local mining code and procedures.

• Sergio Rios (Industry Consultant) – Current President of CAMINIC (Nicaraguan Chamber of Mines), ex President of HEMCO Gold – Nicaragua’s largest local gold producer prior to its acquisition by Colombian company Mineros. Mr Rios is an influential and well connected member of the Nicaraguan mining industry and is also the current Honorary Consul to Australia.

Oro Verde Limited

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Disclaimer

• Forward Looking Statements This report contains forecasts, projections and forward looking information. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are out of Oro Verde’s control. Actual results and developments will almost certainly differ materially from those expressed or implied. Oro Verde has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. To the maximum extent permitted by applicable laws, Oro Verde makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for (1) the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this report and (2) without prejudice to the generality of the foregoing, the achievement or accuracy of any forecasts, projections or other forward looking information contained or referred to in this report.

• Disclaimer This presentation has been prepared by Oro Verde Limited (“OVL” or the “Company”). It should not be considered as an offer or invitation to subscribe for, or purchase any, securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. Throughout this presentation all figures are quoted in A$ dollars unless otherwise stated. You should not act in reliance on this presentation material. This overview of the Company does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of Oro Verde’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.

• The information in this document that relates to Foreign Mineral Resource Estimates is extracted from the report entitled “High Grade Gold Project Acquired” created on 11 November 2014 and available to view on www.asx.com. The Company confirms that it is not in possession of any new information or data relating to the foreign estimates that materially impacts on the reliability of the estimates or the Company’s ability to verify them as mineral resources in accordance with the JORC Code. The information included in the original market announcement continues to apply and has not materially changed.

• Acknowledgement Note that the map on the title page and graph of Gold Exports are courtesy of ProNicaragua.

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Oro Verde Limited

Contact Us

ASX Code: OVL Level 1, 30 Richardson Street West Perth WA 6005 Australia

Telephone: +61 8 9481 2555 Fax: +61 8 9485 1290 www.oroverde.com.au

admin@oroverde.com.au

Eruption of San Cristobal volcano 2012

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Oro Verde Limited

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