MINERAL COMMODITIES LTD - AGM Information 2017

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MINERAL COMMODITIES

ANNUAL GENERAL MEETING

19[th] May 2017

DISCLAIMER

COMPETENT PERSONS STATEMENT

This document has been prepared by Mineral Commodities Ltd (MRC or the Company) and comprises written materials / slides for a presentation concerning MRC. This is not a prospectus, disclosure document or offering document. This document is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or otherwise dispose of, or issue, or any solicitation of any offer to sell or otherwise dispose of, purchase or subscribe for, any securities, nor does it constitute investment advice, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

Certain statements in this presentation are forward looking statements. You can identify these statements by the fact that they use words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, “target”, “may”, “assume” and words of similar import. These forward looking statements speak only as at the date of this presentation. These statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performance or achievements expressed or implied by such forward looking statements. No representation, warranty or assurance (express or implied) is given or made by MRC that the forward looking statements contained in this presentation are accurate, complete, reliable or adequate or that they will be achieved or prove to be correct. Except for any statutory liability which cannot be excluded, each of MRC, its related companies and the respective officers, employees and advisers expressly disclaim any responsibility

for the accuracy or completeness of the forward looking statements and exclude all liability whatsoever (including negligence) for any director in direct loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. Subject to any continuing obligation under applicable law or any relevant listing rules of the ASX, MRC disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in these materials to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any statement is based. Nothing in these materials shall under any circumstances create an implication that there has been no change in the affairs of MRC since the date of this presentation.

The information in this presentation which relates to Exploration Results, Mineral Resources or Ore Reserves for Xolobeni is based on information compiled by Mr Allen Maynard, who is a Member of the Australian Institute of Geosciences (AIG), a Corporate Member of the Australasian Institute of Mining & Metallurgy (AusIMM) and independent consultant to the Company. Mr Maynard is the Director and principal geologist of Al Maynard & Associates Pty Ltd and has over 36 years of exploration and mining experience in a variety of mineral deposit styles. Mr Maynard 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 in the 2004 Edition of the Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves (JORC Code, 2004 Edition).

This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Mr Maynard consents to inclusion in the report of the matters based on this information in the form and context in which it appears.

The information in this presentation which relates to Exploration Results, Mineral Resources or Ore Reserves for Tormin is based on information compiled by Mr Adriaan du Toit, who is a Member of the Australian Institute of Mining & Metallurgy (AusIMM) and an independent consultant to the Company. Mr du Toit is the Director and principle geologist of AEMCO Pty Ltd and has over 24 years of exploration and mining experience in a variety of mineral deposits and styles. Mr du Toit 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 in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition).

The information from Mr du Toit was prepared under the JORC Code 2012 Edition. Mr du Toit consents to inclusion in the report of the matters based on this information in the form and context in which it appears. The resource information and replenishment information in this presentation in respect to the Tormin Project was previously reported to the ASX in the Annual Report lodged on 18 April 2017.

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Mark V. Caruso Executive Chairman 2016 Year in Review

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CORPORATE STRUCTURE

SUMMARY

Mineral Commodities Ltd

(ASX : MRC) SECURITIES 405M shares 6M options 4M performance rights

Mineral Sands Resources (Pty) Ltd (RSA) 50% BEE Ownership of Tormin Project

Transworld Energy & Minerals Resources (SA) (Pty) Ltd (RSA) 26% BEE Ownership of Xolobeni Project

COMPANY DIRECTORS

Mark Victor Caruso | Joseph Anthony Caruso | Peter Patrick Torre | Guy Redvers Walker | Colin Ross Hastings

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The Company continues to celebrate an impeccable safety record, by the end of 2016 recording 1,726,307 lost time injury (LTI) free hours since mining commenced

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SAFETY

Health and Safety Data	2016
Man-hours worked	450,342
Man-hours worked since last LTI	1,726,307
Lost Time Injuries ("LTI")	0
Fatalities (included in LTI’s)	0
LTI Frequency Rate ("LTIFR")	0

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2016 FINANCIAL YEAR IN REVIEW 2016 FINAL DIVIDEND 1.2 Australian cents per share US$17.9M AU$ 4,859,299 US$10.9M US$8.2M 2015 MAIDEN DIVIDEND 1.0 Australian cent per share US$3.8M AU$ 4,049,416

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US$17.9M
US$10.6M
US$8.4M US$10.9M
US$8.2M
US$3.8M
2014 2015 2016 2014 2015 2016
NET PROFIT AFTER TAX EBITDA
US$3.8M US$10.9M
US$46.4M
US$35.0M US$4.2M US$4.2M
US$27.1M
US$2.9M
2014 2015 2016 2014 2015 2016
REVENUE CASH
US$27.1M US$2.9M
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2016 Dividend ASX Mineral Sands Market Leader

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3,467 12%
250 10%
200 8%
150 6%
100 4%
50 2%
0 0%
MRC ILU MZI SFX IMA BSE STA
Market Cap 48.59 3,467.00 43.61 106.79 51.08 218.96 18.00
DivYield 10.0% 2.6% 0% 0% 0% 0% 0%
Mineral Commodities Ltd Iluka Resources Ltd MZI Resources Ltd Sheffield Resources Ltd Image Resources Ltd Base Resources Ltd Strandline Resources Ltd
z
(17 May 2017)
Dividend Yield %
AU$ Million Market Cap
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MRC 2016 ASX market leader with highest dividend yield in mineral sands sector

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ENVIRONMENT

The Company operates its Tormin mining operation under the South African Government’s One Environmental System, which came into effect on 8 December 2014. This legislation provides that the competent authority for all matters relating to environmental authorisations and compliance of the National Environmental Management Act, 1998 (“NEMA”) is the Department of Mineral Resources (”DMR”)

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ENVIRONMENTAL COMPLIANCE

➔ 2016 Tormin achieved 92% in compliance with the relevant 100% conditions contained in the two 90% Environmental Authorisations and 80% their associated Environmental 70% Management Programmes 60% 50% ➔ Two minor instances of 40% noncompliance, and in relation to 30% its Environmental Mitigation 20% Compliance, the Company scored in excess of 91% 10% 0% ➔ Fully compliant, unblemished NEMA Environmental EMP for the NEMA EA Compliance EMP Mitigation Authorisation Environmental Authorisation Compliance environmental record in relation to 2014 88% 83% 82% 91% its regulatory compliance since its Tormin mining operation 2016 92% 83% 93% 91% commenced in 2013

OUR IMPACT

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TORMIN MINING | 2016

For the full year to 31 December 2016, 1,807,750 Run of Mine (“ROM”) ore tonnes was mined at the Tormin Project, being approximately 3.8% above budget, with an overall HMC grade of 45.96%

Ore Tonnes Mined Per Year

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2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0 2014 2015 2016 2017
1,075,408 1,624,636 1,807,750 1,850,000
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TORMIN FULL YEAR PRODUCTION | 2016

PROCESSING

PBC’s/TSP’s throughput: 1,829,271 t PBC’s/TSP’s HMC produced: 587,515 t GSP*/SCP throughput: 658,857 t

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2016 ROM Grade
Garnet Ilmenite Zircon Rutile
29.21% 12.97% 2.78% 0.62%
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*Note: GSP was commissioned in July 2016

Total HMC Produced

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600,000
500,000
400,000
300,000
200,000
100,000
2014 2015 2016
330,249 473,445 587,515
TONNES
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TORMIN FULL YEAR SALES | 2016 TOTAL ANNUAL SALES: US$27.1M

Revenue per tonne of concentrate sold 2016 US$163.27/t Revenue per tonne of concentrate sold 2015 US$111.26/t

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Sales Revenue Per Tonne

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2015 2016
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Zircon/Rutile concentrate 38,408 wet metric tonnes

Ilmenite concentrate 4,070 wet metric tonnes

Garnet concentrate 130,308 wet metric tonnes

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GARNET

GARNET PRODUCTION*

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400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2014 2015 2016 2017f
254,816 284,990 270,802 300,000
Includes garnet concentrate refeed for 2016 and 2017
Tonnes
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GARNET SALES

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400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2014 2015 2016 2017f
79,630 372,466 130,308 240,000
Tonnes
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PRODUCTION 270,802 dmt SALES 130,308 wmt

➔ GSP commissioned in July 2016, upgrading garnet production and grade of concentrate
➔ Garnet sales curtailed due to delay in GMA completing Garnet Plant in the USA ➔ Significant latent value built up in Garnet stockpile
➔ Tormin is one of the largest Garnet producers in the world
➔ Garnet production globally under pressure due to closure of Indian production arising from environmental breaches and non payment of taxes

➔ Under an updated 2017 Heads Of Agreement entered into with GMA, MRC will supply to GMA’s stockpile at a rate of 240,000 tonnes for 2017, with GMA agreeing to take delivery of 210,000 tpa of stockpiled garnet concentrate from and including the calendar year 2017, resulting in a forecasted minimum revenue of US$60 million over the next five years from the existing stockpile of garnet concentrate and forecast production for 2017

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ILMENITE PRODUCTION
250,000
200,000
PRODUCTION 211,704 dmt
150,000
SALES 4,070 wmt
100,000
50,000
0
2014 2015 2016 2017f
100,437 109,959 211,704 200,000
ILMENITE SALES
300,000
250,000
200,000
150,000
100,000
50,000
0
2014 2015 2016 2017f
21,920 - 4,070 270,000
Tonnes
Tonnes
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ILMENITE

Evident increase in demand for ilmenite and ilmenite concentrate due to:

➔ Tightening of the global ilmenite supply chain
➔ Curtailing of domestic sulphate ilmenite production within China and India, due to environmental and economic cost of production factors
➔ Ilmenite pricing up over 100%, with limited new supply

ZIRCON / RUTILE PRODUCTION

➔ Zircon and Rutile price stabilised with tightening of supply by major industry producers

PRODUCTION 35,813 dmt

SALES 38,408 wmt ➔ Anticipated upwards pricing pressure in 2017

due to industry consolidation and lack of new mine development

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50,000
40,000
30,000
20,000
10,000
0
2014 2015 2016 2017f
42,668 44,489 35,813 25,000
ZIRCON / RUTILE SALES
50,000
40,000
30,000
20,000
10,000
0
2014 2015 2016 2017f
42,042 45,240 38,408 28,000
Tonnes
Tonnes
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Tormin produces the highest grade of zircon

concentrate delivered into the Chinese market

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TORMIN RESOURCE

Category Resource Milli T Total Heavy Mil % Ilmenite % i R Zircon % I R Rutile % I R Garnet % I R	Category Resource Milli T Total Heavy Mil % Ilmenite % i R Zircon % I R Rutile % I R Garnet % I R	Category Resource Milli T Total Heavy Mil % Ilmenite % i R Zircon % I R Rutile % I R Garnet % I R	Category Resource Milli T Total Heavy Mil % Ilmenite % i R Zircon % I R Rutile % I R Garnet % I R	Category Resource Milli T Total Heavy Mil % Ilmenite % i R Zircon % I R Rutile % I R Garnet % I R	Category Resource Milli T Total Heavy Mil % Ilmenite % i R Zircon % I R Rutile % I R Garnet % I R	Category Resource Milli T Total Heavy Mil % Ilmenite % i R Zircon % I R Rutile % I R Garnet % I R
on onnes nera n esource n esource n esource n esource
Indicated Resource - Dec 2013	2.70	49.40%	10.60%	3.40%	0.70%	25.30%
Tonnes Mined - 2014	1.07	53.83%	17.26%	4.76%	0.65%	31.16%
Inferred Resource - Dec 2014	2.70	38.14%	10.05%	2.21%	0.46%	25.22%
Tonnes Mined - 2015	1.62	49.57%	16.15%	3.88%	0.60%	28.94%
Inferred Resource - Dec 2015	2.70	28.01%	6.97%	1.56%	0.55%	18.54%
Tonnes Mined - 2016	1.81	45.97%	12.97%	2.78%	0.61%	29.21%
Inferred Resource - Dec 2016	1.80*	28.80%	6.15%	1.65%	0.53%	18.99%

0.5% Zircon cut-off grade used

Currently mined in excess of 4.5 MT as at 31 December 2016 166% more than the original indicated resource

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TORMIN EXPLORATION FOR THE FUTURE

TARGET OF KNOWN HEAVY MINERAL RESOURCES TO SECURE ONGOING LIFE OF TORMIN MINE OPERATIONS

Area/Location	Type of Right	Status	Applied
Graauwduinen	Prospecting	Under Application	22-Dec-16
Geelwal Karoo	Prospecting	Under Application	22-Dec-16
De Punt	Prospecting	Under Application	8-Apr-16
Klipvley Karookop	Prospecting	Under Application	19-Sep-16
Geelwal Karoo Inland	EMP 102 Mining	Under Application	26-Apr-17
Northern Beaches	EMP 102 Mining	Under Application	26-Apr-17

MINING ONSHORE DEPOSIT ALLOWS BEACH TO REPLENISH

EMP 102 Amendment lodged April 2017 over the Northern Beaches and Inland Strandline

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TORMIN | INVESTING IN EXPANSION

Pre-Feasibility, Mining Right and Prospecting

➔ Pre-Feasibility Studies commenced ➔ EMP 102 Amendment to inland Geelwal farm and Northern Beaches submitted April 2017 ➔ Additional Inland (Southern and Northern) Prospecting Rights areas applied for

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TORMIN | INVESTING IN EXPANSION

Primary Beach Concentrator Upgrade

➔ Targeting:
→ Increase throughput from 240 tph to 480 tph
→ Increase HMC by doubling production to approximately 900k tpa

Mineral Separation Plant (MSP)

➔ Studies and modelling commenced
➔ Capacity of 360k tpa ilmenite and non-mag con feed → Finished ilmenite circa 200,000 tpa
→ Finished garnet circa 75,000 tpa
→ Finished zircon/rutile products circa 70,000 tpa
➔ Increases value of current concentrates by converting to final products
➔ Broadens global market reach outside of China concentrate market

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XOLOBENI

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➔ Company entered into Memorandum of Understanding during the year to divestment it’s 56% interest in the Xolobeni Mineral Sands Project

➔ Divestment to existing BEE Partner ➔ Key terms to be agreed, including

→ Recoupment of investment → Entitlements to marketing of finished products

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2016 IN REVIEW

➔ GSP/TSP Expansions delivered on time & budget

➔ Third year of consecutive profit

➔ Second consecutive year dividend declared

➔ Significant baseline study work completed and permitting submitted to substantially expand current mining areas and extend mine life

➔ Commodity price stabilisation in zircon
➔ Ilmenite pricing increasing by 100%
➔ Increase in demand for all products

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2017 LOOKING AHEAD

➔ Strong operational performance and free cashflow generation

➔ Continued demand for ilmenite, zircon, garnet with upside pricing pressure

➔ GMA Garnet sales minimum US$60M “take or pay” contract, circa US$20M pa revenue underpinning Tormin

operating costs and corporate overheads

➔ Prospecting and EMP 102 Amendment for mine expansion pending approval

➔ Fully focused business development team for future jurisdictional and commodity diversification/growth

➔ Proven shareholder returns to continue

2 0 1 7 ANNUAL GENERAL MEETING

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MINERAL COMMODITIES LTD AGM Information 2017

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