MINERAL COMMODITIES LTD — Investor Presentation 2018

Feb 28, 2018

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MINERAL COMMODITIES LTD 2017 FULL YEAR RESULTS PRESENTATION

DISCLAIMER AND COMPETENT PERSON 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, if any, in this presentation which relates to exploration results, mineral resources or ore reserves for the Tormin Mineral Sands Project and the Munglinup Graphite Project is based on information compiled by Mr Adriaan du Toit, who is a Member of the Australasian Institute of Mining and Metallurgy (“AusIMM”) and an independent consultant to Mineral Commodities Ltd. Mr du Toit is the director and principal geologist of Aemco Pty Ltd and has over 26 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 mineralisations and type of deposits 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 (the “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 this presentation of the matters based on this information in the form and context in which it appears. The information, if any, in this presentation that relates to metallurgy for the Munglinup Graphite Project is based on information compiled and reviewed by Mr David Pass, who is a Member of AusIMM. Mr Pass is an employee of Battery Limits Pty Ltd. Mr Pass has sufficient experience relevant to process plant and infrastructure design thereof to qualify as a Competent Person as defined by the JORC Code, 2012 Edition. Mr Pass consents to the inclusion in this presentation of the matters based on the reviewed information in the form and context in which it appears.

The information, if any, in this presentation which relates to exploration results, mineral resources or ore reserves for Xolobeni Mineral Sands Project is based on information compiled by Mr Allen Maynard, who is a Member of the Australian Institute of Geoscientists (“AIG”), a corporate member of AusIMM and independent consultant to Mineral Commodities Ltd. Mr Maynard is the director and principal geologist of Al Maynard & Associates Pty Ltd and has over 37 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 Edition. It has not been updated since to comply with the JORC Code, 2012 Edition on the basis that the information has not materially changed since it was last reported. Mr Maynard consents to inclusion in this presentation of the matters based on this information in the form and context in which it appears.

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SNAPSHOT - 2017 FULL YEAR RESULTS

Total Revenue US$62.6 million (2016: US$27.1 million) Underlying Group EBITDA US$19.1million (2016: US$10.9 million) Reported earnings (NPAT) US$9.9 million (2016: US$3.8 million) Capital expenditure US$5.4 million (2016: US$6.8 million), including US$2.5 million Munglinup Project farm-in Cash balances US$11.0 million (2016: US$2.9 million) Earnings per share US2.39 cents (2016: US0.93 cents) Dividend AU1.2 cents (Interim: AU0.5 cents paid; Final: AU0.7 cents declared) (2016: AU1.2 cents) Unit revenue US$113.33/wmt (2016: US$163.27/wmt) Unit cash costs of production US$27.89/dmt (2016: $27.03/dmt) Unit costs of goods sold US$77.47/dmt (2016: US$99.29/dmt)	Total Revenue		US$62.6 million (2016: US$27.1 million)
	Underlying Group EBITDA		US$19.1million (2016: US$10.9 million)
	Reported earnings (NPAT)		US$9.9 million (2016: US$3.8 million)
	Capital expenditure		US$5.4 million (2016: US$6.8 million), including US$2.5 million Munglinup Project farm-in
	Cash balances		US$11.0 million (2016: US$2.9 million)
	Earnings per share		US2.39 cents (2016: US0.93 cents)
	Dividend		AU1.2 cents (Interim: AU0.5 cents paid; Final: AU0.7 cents declared) (2016: AU1.2 cents)
	Unit revenue		US$113.33/wmt (2016: US$163.27/wmt)
	Unit cash costs of production		US$27.89/dmt (2016: $27.03/dmt)
	Unit costs of goods sold		US$77.47/dmt (2016: US$99.29/dmt)

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2017 OVERVIEW AND ACHIEVEMENTS

• Currently operating the highest grade mineral sands mine in the world - Tormin, South Africa

• Defined near-term Tormin Expansion Project currently in the pipeline

• Defined near-term Munglinup Graphite Project currently in the pipeline

• Iran mining sector - first mover advantage

• Australian exploration prospects

• Highly experienced Board & Management team

• Short term business strategy fully funded from existing cash flow

• Peer leading dividend yield stock

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SUMMARY - 2017 GROUP RESULTS

		2017	2016
Product revenue	US$m	60.93	26.9
Mining and processing costs	US$m	(43.4)	(17.3)
Group EBITDA	US$m	19.1	10.9
Group EBIT	US$m	13.2	7.0
Profit before income tax	US$m	14.0	6.6
Income tax expense	US$m	(4.0)	(2.8)
Profit after income tax	US$m	9.9	3.8
Earnings per share	US cents per share	2.39	0.93
Dividends - unfranked	AU cents per share	1.20	1.20
Dividend yield	%	9.2%	9.2%
Payout ratio	%	39.33%	92.47%

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75.2% on 161% on
US$19.1m Prior Yr US$9.9m Prior Yr
2017 EBITDA 2017 NPAT
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2017 REVENUE AND PROFITABILITY

131% on Prior Yr US$62.6m 2017 Revenue

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EBITDA (US$m) NPAT (US$m)
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REVENUE (US$m)

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2017 CASHFLOWS AND CASH POSITION

409% on Prior Yr US$22.3m

2017 Cashflow from Operations

21.5% on 279% on Prior Yr US$11.0m Prior Yr 2017 Cash Balance

21.5% on Prior Yr US$5.4m 2017 Capital Expenditure

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Cashflow from Operations (US$m)

Capital Expenditure (US$m) Cash Balance (US$m)

(1) Excludes US$0.9m capital expenditure associated with the issue of 10m MRC shares relating to a 51% acquisition of the Munglinup Graphite Project.

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2017 NET CASH MOVEMENT (US$ 000’s)

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2017 FINANCIAL POSITION

119% on Prior Yr US$15.8m

2017 Net Working Capital

43.2% on Prior Yr US$4.2m 2017 Borrowings

25.4% on US$45.9m Prior Yr 2017 Net Assets

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Net Working Capital (US$m) Borrowings (US$m) Net Assets (US$m)

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2017 SHAREHOLDER RATIOS

163% on Prior Maintained 22.45% on US Cents 2.45 Yr AU Cents 1.20 at 2016 US Cents 11.07 Prior Yr levels 2017 Earnings Per Share 2017 Dividends Per Share 2017 Net Assets Per Share

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Earnings Per Share (US Cents) Dividends Per Share (AU Cents) Net Assets Per Share (US Cents)

(1) Interim: AU0.5 cent paid; Final: AU0.7 cent declared

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PROJECT MAP
Iran MRK PJSC
100% Corporate Holding Entity
Transworld Energy & Minerals
Resources (SA) (Pty) Ltd (RSA)
56% Ownership of Xolobeni Mineral
Sands Project
MRC Graphite Pty Ltd
51% Ownership of Munglinup
Graphite Project 11
MRC Exploration
Mineral Sands Resources Australia Pty Ltd
(Pty) Ltd (RSA) 100% Corporate Entity
50% Ownership of Tormin Mineral
Sands Mine
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SOUTH AFRICA | SNAPSHOT

TORMIN MINERAL SANDS MINE

• Continued strong safety record with 1 LTI since commencement of operations

• Resource:

Original 2.7MT @ 49.7% THM

Mined 6.6MT @ 27.6% THM Revised 1.8MT @ 15.9%THM[(1)]

• Identified potential 15+ years life of mine extension

• Logistics - Optimisation via Rail

• Permitting delays continue, with expected resolution in 2018

XOLOBENI MINERAL SANDS PROJECT

• World Class mineral sand deposit geographically located near Richards Bay

• JORC Compliant Resource 346MT @ 5% THM

• Ministerial imposed moratorium on mining right application for 18 months

• Future development and divestment options under consideration

Note 1: Refer to ASX release of 28 February 2018

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2017 TORMIN PRODUCTION

30.17% on 17.72% on Prior Yr Prior Yr 674,720t 372,418t 2017 Total Production Tonnes - Gross 2017 Total Production Tonnes - Net

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(1) In 2014 and early 2015, concentrates were stockpiled on the beach. Losses resulting from tidal erosion have not been quantified. 13 (2) Does not include a substantial build-up in available Heavy Mineral Concentrate stockpiles of 103,379 tonnes.

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2017 TORMIN SALES AND STOCKPILE

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217.86% on
Prior Yr
549,212t
2017 Total Sales Tonnes
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(1) Total tonnes - Tormin, Koekenaap, Saldanha Bay, in transit or held on behalf of third party under the offtake agreement

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2017 TORMIN REVENUE TO COST RATIOS

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US$27.89/t US$77.47/t 1.46
2017 Production cash 3.18% on Prior 2017 cost of goods 21.98% on Prior 2017 Revenue to cost 10.98% on Prior
cost per tonne (US$/t) Yr sold per tonne (US$/t) Yr of goods sold ratio Yr
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(1) Cost of goods sold includes production cash costs, product handling, transport and selling costs, royalties, stock movements, depreciation and amortisation, excludes corporate and finance costs.

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MINERAL SANDS MARKET

MARKET FUNDAMENTALS ILMENITE MARKET ZIRCON MARKET

• Favourable long term Heavy Mineral Sands market, driven by urbanisation, global growth and extensive array of applications

• Product uses in everyday life - paint, paper, construction, ceramics, refractories, chemical technology

• ● New technology applications evolving - 3D printing

• Improving commodity price trend

• ● Evident zircon pricing pressure - 45% increase in 2017 pricing expected to continue into 2018

• ● Primary supply demand deficit

• Global decline in Total Heavy Mineral (THM) mine grades and make up of ore bodies

• Government forced closures of existing mines in India and China due to environmental compliance

• Major mineral sands producers balancing supply to demand

• ● Lack of investment in sector leading to lag in new production to meet upcoming demand

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AUSTRALIA | MUNGLINUP GRAPHITE PROJECT | SNAPSHOT

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MUNGLINUP GRAPHITE PROJECT

• High grade (>17% TGC) natural flake graphite deposit

• Excellent jurisdiction

• Production Target of 3.6Mt at 15.3% TGC (2012 JORC compliant)[(1)]

• Mining Permit approved

• ● Mineralisation open in all directions

• Near term development profile

• Potential downstream value adding processing optionality currently being assessed

Note 1: Refer to ASX releases of 11 and 13 September 2017

FINANCIAL

• Capital Budget A$5.8m[(1)]

• ● Lowest quartile operating and capital costs

• Robust economics across pricing and flake distribution scenarios

• ● NPV A$150m Midcase

TIMELINE[(2)]

• Finalise flowsheet - mid Q1 2018

• Commence early works - end Q2 2018

• ● Commission plant - 2019

Note 1: Including MRC Shares Note 2:Subject to final decision to proceed

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AUSTRALIA | MUNGLINUP GRAPHITE PROJECT | SCOPING STUDY / PCF OUTCOMES

|AUSTRALIA | MUNGLINUP GRAPHITE PROJECT | SCOPING STUDY / PCF OUTCOMES|AUSTRALIA | MUNGLINUP GRAPHITE PROJECT | SCOPING STUDY / PCF OUTCOMES|AUSTRALIA | MUNGLINUP GRAPHITE PROJECT | SCOPING STUDY / PCF OUTCOMES|AUSTRALIA | MUNGLINUP GRAPHITE PROJECT | SCOPING STUDY / PCF OUTCOMES|AUSTRALIA | MUNGLINUP GRAPHITE PROJECT | SCOPING STUDY / PCF OUTCOMES|AUSTRALIA | MUNGLINUP GRAPHITE PROJECT | SCOPING STUDY / PCF OUTCOMES|AUSTRALIA | MUNGLINUP GRAPHITE PROJECT | SCOPING STUDY / PCF OUTCOMES|
|---|---|---|---|---|---|---|
||||||||
|A$150M
NPV||A$528/t
Average
OPERATING
CASH COST|A$47M
Tl|A
56kt|9 years|Cl
<2 years|
||||||||
||67%
IRR||||||
||||ota
DEVELOPMENT
CAPEX|verage
ANNUAL CONC.
PRODUCTION|Total
MINE LIFE|apita
PAYBACK
PERIOD|
||||||||
||||||||

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AUSTRALIA | NORTH WEST EXPLORATION | SNAPSHOT

NORTH WEST EXPLORATION

Five applications have been made over 4 prospective areas for

• Hard rock lithium Pegmatites

• Channel Iron Ore

• ● Copper (VMS) ● Gold (Mesothermal)

• Capital Expenditure 2018 US$1.0m[(1)]

• Strategic commodity diversification

• Known brownfields mining areas

• Established road, rail and gas infrastructure

Note 1: Subject to exploration approval

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AUSTRALIA | NORTH WEST EXPLORATION | PROSPECTS

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1. Yandeyarra
Lithium
E47/3884 & E47/3885
Under Application
US$0.3m budget for 2018 [(1)]
2. Glen Florrie
Channel Iron Ore
E08/2963
Under Application
US$0.2m budget for 2018 [(1)]
3. Doolgunna
Copper/Gold
E51/1766
Granted [(2)]
4. Cave Hill
Gold/Copper
E51/1867
Note 1: Subject to granting 20
Under Application [(1) (2)] Note 2: Remaining 2018 Budget of US$0.5m for a total 2018 Budget of US$1.0m
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IRAN | SNAPSHOT

WORLD CLASS UNDER-DEVELOPED RESOURCES

Currently undertaking a review of circa 31 projects in Iran with the following commodities:

• Gold/Copper

• Cobalt/Nickel

• Zinc

• Potash/Lithium

Executive Management have set investment criteria in which each project is currently under review

PROJECT INVESTMENTS

US$2.4m expenditure committed for 2018

TUZLAR PROJECT

• Gold

• Operating Mine

• Committed US$1.1m

ASBKHAN GOLD PROJECT

• Gold

• Exploration project

• ● Committed US$0.6m

SEMNAN

• Potash

TIMELINE

• September 2017 MRC opened an Office in Tehran

• Iran holding companies has been formed

• Iranian Foreign Investment Licence is under review

• Exploration project

• ● Committed US$0.3m

IMPASCO

• Signed MOU for joint assessment of mining opportunities

Project Generation

• Committed US$0.4m

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COMPANY STRATEGY

SHORT TERM

MEDIUM TERM

• Cashflow - continue to generate free cash to fund expansion and business development strategies

• ● Tormin Expansion - complete Phase 1

• Munglinup project commissioning targeted for 2019

• Graphite downstream value adding - spheroidisation / purification

• Develop surf-zone mining

• ● Tormin logistics cost optimisation

• Leverage first mover advantage in Iran by developing operating copper/gold asset

• ● Broaden shareholder base/liquidity

• Obtain permitting to potentially extend Tormin LOM +15 years

• Munglinup complete feasibility

• ● Continue jurisdiction / commodity diversification

LONG TERM

● Creation of multi jurisdictional / commodity mining house with at least 3 operating mines ● Increase shareholder returns and capital growth ● Disciplined capital management, focused on shareholder returns ● Continue to develop highly capable technical and management team to implement growth strategy

●

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