MINBOS RESOURCES LIMITED — Investor Presentation 2013

Apr 8, 2013

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West African Focused Phosphate Developer

The Next Generation: Preparing for Production

Disclaimer

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Minbos
Resources
Limited
(“ Minbos ”)
has
prepared
this
presenta8on
(the
“ Presenta,on ”)
solely
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benefit
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the
Recipient.
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assis8ng
the Recipient
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its
evalua8on
of
Minbos
and
its
phosphate
development
project.

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The
informa8on
in
this
report
has
been
reviewed
and
approved
for
release
by
Mr
David
Reeves,
M.
AusIMM,
MSAIMM
who
has
over
20
years’
experience
in
mineral
development.
Mr
Reeves
is
a
non-­‐ execu8ve
director
of
Minbos.
He
has
sufficient
experience
in
rela8on
to
the
style
of
mineralisa8on
and
type
of
deposit
under
considera8on
to
qualify
as
a
Competent
Person
as
defined
by
the "Australasian
Code
for
Repor8ng
of
Explora8on
Results,
Mineral
Resources
and
Ore
Reserves"
(The
JORC
Code
2004
Edi8on).
Mr
Reeves
has
consented
to
inclusion
of
this
informa8on
in
the
form
and context
in
which
it
appears.

Highlights

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• § New
  Execu8ve
  and
  experienced
  board

• § Explora8on
  licences
  in
  Angola
  and
  the
  Western
  DRC
  –
  Minbos,
  through
  its
  JV, is
  the
  largest
  holder
  of
  phosphate
  explora8on
  ground
  in
  the
  Congo
  Basin

• § Two
  development
  projects,
  both
  high
  grade
  with
  strong
  economics
  and
  well defined
  routes
  to
  produc8on:

• Kanzi
  Project
  in
  DRC
  -­‐
  66.0Mt
  @
  15.3%
  P2O5
  including 44.0Mt
  @

  • O

  • 21.4%
    P2 5

• Cacata
  Project
  in
  Cabinda
  –
  30.4Mt
  @
  17.0%
  P2O5
  including 22.5Mt
  @ O

• 21.4%
  P2 5.

• § 370.1Mt
  JORC
  compliant
  resources § Metallurgical
  test
  work
  demonstrates
  upgradeability
  of
  high
  grade
  resources
  to Moroccan
  benchmark
  by
  simple
  beneficia8on

• § Strategic
  focus
  on
  smaller
  Phase
  1
  at
  Kanzi
  for
  earlier
  cash
  flow

We have a world class tenement holding…

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and rising global demand

§ Demand
for
fer8lizer:

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q Rising
world
popula8on

q Changing
diets
as
incomes
grow

q Constraints
on
arable
land

q Government
policies
to
enhance
crop
yields
+
encourage
use
of
biofuels

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“Global
phosphate consump1on
is forecast
to grow
by
45%
by 2030”

We are positioned to take advantage of market restructuring…

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• § Supply
  being
  influenced
  by:

q High
Capex
and
Opex
–
mainly
due
to
logis8cs

q Lower
grade
ore
and
concentrates

• q Shim
  in
  market
  towards
  ver8cally
  integrated
  opera8ons

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“7.5%
decrease
in
average O grade
of
P2 5
concentrate supplied
(1990-­‐2011)”

and ideally located to serve growth markets

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Angola is moving forward…

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§ Fastest
growing
economy
in
Africa

§ Between
2001
–
2010,
Angola
had
the
world’s
highest
annual average
GDP
growth
@
11.1%

§ Africa’s
number
1
oil
producer
and
3[rd] largest
producer
of diamonds

§ China’s
largest
oil
supplier

§ Well
developed
infrastructure

§ Resources
friendly
environment

§ Current
projects
include
$10bn
LNG
plant
led
by
Chevron
and $1.2
billion
urea
and
ammonia
plant
led
by
Mitsubishi

with a favorable political landscape § Recently
concluded
Presiden8al
elec8ons.
Jose
Eduardo
dos Santos
re-­‐elected
for
a
second
term

§ Mining
Minister
Mr
Joaquim
Duarte
da
costa
David
has
a priori8zed
agenda
to
promote
junior
scale
explora8on
and mining
and
diversify
away
from
diamonds
and
oil § Publicly
announced
the
importance
and
development
of
the Phosphate
industry
in
March
2013

§ Favorable
foreign
investment
policy § 3%
royalty
and
10%
Govt
free
carry

§ Company
tax
30%,
but
tax
holidays
and
rebates
nego8ated
on a
project
basis

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The DRC is an emerging resource powerhouse…

2[nd] § largest
country
by
area
in
Africa

§ World’s
largest
producer
of
cobalt
ore

§ One
of
Africa’s
largest
mining
countries

§ Has
vast
resources
of
copper,
cobalt
and
diamonds § The
Copper
belt
is
one
of
the
world’s
greatest
metallogenic provinces,
containing
over
30%
of
the
world’s
cobalt
reserves and
over
10%
of
copper
reserves § Significant
mining
companies
are
now
ac8ve
in
the
DRC,
eg Freeport
McMoRan,
Anvil
Mining,
Katanga
Mining

with an improving political landscape

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§ Recently
concluded
Presiden8al
elec8ons.
President
Joseph
Kabila re-­‐elected
for
second
term

§ Licences
are
in
the
West
of
the
country,
some
3,500km’s
from occasional
border
skirmishes

§ Foreign
investment
in
the
mining
sector
is
the
biggest
driver
of growth
in
the
economy

§ Favorable
foreign
investment
policy

§ 3%
royalty
and
currently
5%
Govt
free
carry.
Talk
of
increase
to
35% in
2013
unconfirmed.
Minbos
hedged
at
10%
in
Side
Agreement § Company
tax
30%,
but
tax
holidays
and
rebates
nego8ated
on
a project
basis

We have high value target projects in a highly prospective basin…

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and significant holdings…

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Concession
area
of
4000
km[2] in
the
Congo
Basin
running
from
Cabinda,
Angola to
Western
DRC.

• § Cabinda
  Phosphate (50%
  interest)

q Cacata,
Mongo
Tando,
Chibuete,
Chivovo
and
Ueca
deposits
with historical
and
current
explora8on
data.

§ Western
DRC
Phosphate (49%
interest
with
poten8al
to
increase) q Kanzi
and
Fundu-­‐Nzobe
deposits
with
historical
and
current explora8on
data.

An exciting story continues to develop

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	Deposit Tonnes (Mt) Grade (%P2O5) COG (%P2O5) Category Comments
	Cabinda, Angola
	Cacata 30.4 17.2 5 Indicated Including 22.5Mt @ 21.4% P2O5
	Chivovo 6.7 20.3 5 Inferred
	Mongo Tando 117.7 13.6 5 Inferred
	Chibute 150.0 8.3 5 Inferred
	SubTotal 304.8 11.5
	Kanzi, DRC
	Kanzi 66 15.3 5 Inferred Including 44.0Mt @21.4% P2O5
	GrandTotal 370.1 12.2

Since
lis1ng
in
October
2010,
Minbos
has
delineated
a
substan1al
resource
of
370Mt
at
12.2%
P2O5 Two
high
grade
simple
beneficia1on
projects
at
Cacata
and
Kanzi

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Cacata in focus

Angola

Where is it?

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CACATA
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Project Summary

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§ Project
Status :
Located
on
the
highly
prospec8ve
and
high
grade
Eastern Limb.

Commencing
Bankable
Feasibility
Study.

High
grade
resources defined,
scoping
study
confirms
robust
project
economics O § JORC
Resource :
30.4Mt
total
@
17.2
%
P2 5,
including
22.5Mt
@
21.4% P O 2 5

§ Mining: Free
Dig,
no
drill
and
blast
@
strip
ra8o
of
2:
1.

O § Beneficia,on: Upgrades
to
+
34%
P2 (Phos
rock) @
79%
recovery
using 5 basic
scrubbing,
screening
and
washing. Product § Logis,cs: 90km
haul
on
a
sealed
road
to
new
port
facili8es. Covered
loading
facility
at
the
port
to
load
barges
and
Panamax
vessels offshore.

The financials are robust

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Project
Financials
(800ktpa
Phosphate
Rock
Concentrate)
–
100% basis

§ Revenue
US
$180/t
(excludes
12%
premium
as
quoted
by
CRU
Strategies)

§ Opex
$54.4/t
(Excludes
Royal8es)

§ Capex
US
$157.1M
(Excluding
con8ngency)

§ NPV
$311M (@
10%
discount)

§ IRR
40.2% (pre-­‐tax)

Capital Expenditure

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	CacataCapitalCosts
Description	TotalUS$M
Mining ProcessPlant TailingsDam StorageandTransport(Land) StorageandLoading(Sea) OwnersCosts Contingency(15%)	9.5 54.8 6.8 22.5 57.5 6.0 23.6
TOTALCAPEX	180.7

Operating costs are low

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	CacataOperatingCosts	CacataOperatingCosts
Description		TotalUS$/tFOB
Mining ProcessingPlant TSF ProductTransport(Land) ProductTransport(Sea) GeneralandAdmin		5.72 25.12 0.50 13.63 3.25 6.20
OPEXPERTONNEPRODUCT		54.42

Proposed Development Path - Cacata

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2013 2014 2015 2016
QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 QTR 4
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Define Scope of Bankable Feasibility Study

Tender Bankable Feasibility Study Bankable Feasibility Study Project Financing Project Execution 20 months

Commissioning June 2016 u Slide 21

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Kanzi in focus

DRC

Where is it?

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FUNDU NZOBE
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KANZI
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Project Summary

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§ Project
Status: Scoping
Study
for
1Mt
concentrate
produc8on
completed. Drilling
for
BFS
recently
completed

O O § JORC
Resource: 66Mt
total
@
15.3
%
P2 5
including
44Mt
@
21.4
%
P2 5.

§ ‘Pitable’
Resource
Iden,fied :
26Mt

• § Mining: Free
  Dig,
  no
  drill
  and
  blast
  strip
  ra8o
  7.1:1

O § Beneficia,on: Upgrades
to
+32%
P2 5 (Phos
rock) @
60%
recovery
(worst case
assumed) Product § Logis,cs: Barge
on
the
Congo
and
tranship
or
35km
haul
to
exis8ng Boma
port

§ Upside
Poten,al: Significant upside.

Fundu
Nzobe
deposit
-­‐

historical O explora8on
es8mated
resource
of
70Mt
@
15%
P2 5
including
14Mt
@ O 19.5%
P2 5 (UNDP
1981)

The financials are compelling

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Project
Financials
(1Mtpa
Phosphate
rock
concentrate)
–
100% basis

• § Revenue
  US
  $180/t

• § Opex
  $50.8/t
  (Excluding
  Royal8es)

§ Capex
US
$106M
(excluding
con8ngency
and
based
on
Owner Operated
Mining)

§ NPV
$626M (pre-­‐tax
@
10%
discount)

• § IRR
  58% (pre-­‐tax)

Capital Expenditure

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	KanziCapitalCosts	KanziCapitalCosts
Description		TotalUS$M
Mining ProcessPlant TailingsDam ProjectLogistics ProjectManagement RelocationofVillage Contingency		14.2 50.6 9.7 17.6 3.9 10.0 15.9
TOTALCAPEX		121.9

Operating costs are low

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	KanziOperatingCosts	KanziOperatingCosts
Description		TotalUS$/tFOB
Mining ProjectLogistics Beneficiation TailingsDam GandA		13.45 3.25 24.59 0.50 9.00
OPEXPERTONNEPRODUCT		50.79

There is opportunity for earlier cash flow...

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§ A
smaller
opera8on
of
nominal
300Kt
produc8on
is
being
evaluated § This
will
provide
cash
flow
for
organic
growth
and
to
pursue
the
high regional
explora8on
poten8al

§ Phase
1
of
a
logis8cs
study
is
complete

q Likely
path
for
concentrate
to
market
is
barging
and
trans-­‐shipping
on the
Congo
River
which
is
6km’s
from
the
Kanzi
project q Capital
circa
$30M
(tbc)

q Focus
will
be
on
capital
reduc8on
with
a
preference
for
contrac8ng
out mining
and
concentrate
transport § Phase
2
of
the
logis8cs
study
will
commence
Q2
and
will
firm
up
capital
and logis8c
solu8ons § BFS
for
300Kt
opera8on
expected
to
be
complete
EO2013
(funding dependent)

Proposed Development Path - Kanzi

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2013 2014 2015 2016 2017 QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 QTR 4 QTR 1 QTR 2 QTR 3 Mining Licence Application and EIA

Logistics Study Stage 2

Phase 1 Feasibility Study

Phase 1 Financing

Phase 1 Execution Phase 1 Commissioning Jan 2015 u

Phase 2 Feasibility Study

Phase 2 Financing Phase 2 Execution Phase 2 Commissioning Feb 2017 u Slide 29

Share Growth Catalysts § Gran8ng
of
Mining
Licenses
(Exploita8on
Permits)
in
the
DRC in
Q2
2013

§ Upgraded
resources
at
Cacata
(Measured)
and
Kanzi (Indicated)
in
Q1
2013

§ Securing
a
Strategic
Partner
with
a
global
reputa8on
in
Q2 2013

§ BFS
for
small
Phase
1
Kanzi
project
completed
by
Q4
2013

§ New
execu8ve
and
experienced
board

Board and Management

==> picture [72 x 76] intentionally omitted <==

**Peter

Richards
Non
Execu,ve
Chairman**

§ Peter
has
over
30
years
of
business
and
interna8onal
experience
with
global
companies
including
BP
plc,
Wesfarmers
Ltd
and
Dyno Nobel
Limited.

§ Recently
re8red
as
CEO
of
Dyno
Nobel
following
its
successful
takeover.

**Sco`

Sullivan
Managing
Director**

§ ScoK
has
over
25
years
experience
in
mul8ple
commodi8es
na8onally
and
interna8onally

§ Has
worked
for
global
miners,
most
recently
as
President
NSW
Energy
Coal
for
BHPBilliton

§ Experience
covers
all
stages
of
mining
from
explora8on
and
feasibili8es
through
to
commissioning
and
opera8ons

**Domingoes

Catulichi
(Zeca)
Non-­‐Execu,ve
Director**

§ Zeca
is
a
mining
industry
professional
and
a
qualified
diamond
evaluator
with
over
12
years
experience
in
the
explora8on
and
mining industry
in
Angola.

§ Holds
various
business
interests
in
Angola
including
Hotels,
transporta8on,
general
trading
and
mining.

**Dave

Reeves
Non-­‐Execu,ve
Director**

§ Dave
has
been
involved
with
mining
precious,
base
and
industrial
minerals
throughout
his
career.

§ Has
spent
the
last
14
years
developing
mining
projects
in
Africa.

§ Is
currently
Managing
Director
of
Ferrex
Plc,
an
AIM
Listed
minerals
company.

**James

Carter
CFO**

§ James
is
a
CPA
with
17
years’
experience
in
the
mining
industry

§ Was
previously
CFO
of
Straits
Resources,
a
diversified
metals
group
listed
on
the
ASX

§ Experience
includes
debt
and
equity
capital
markets,
tax
strategy,
M&A
and
corporate
governance

Minbos presents a compelling investment proposition

==> picture [72 x 76] intentionally omitted <==

§ Mul8ple
projects
with
clear
near-­‐term
development
path

• § Well
  located
  with
  established
  infrastructure
  in
  place

§ Low
OPEX,
high
grade
resources
resul8ng
in
excellent
economics when
compared
to
other
projects
globally

• § Experienced
  and
  credible
  board
  and
  management

• § Trading
  at
  a
  significant
  discount
  to
  peers

§ Strong
demand
for
phosphate,
linked
to
the
increase
in
demand for
agriculture
and
food