Nordic Mining ASA — Investor Presentation 2017

Oct 30, 2017

Engebø Rutile and Garnet Project – Prefeasibility Study

30 October 2017

Exploration and production of high-end minerals and metals

Nordic Mining ASA | N-0250 Oslo | Norway | Tel +47 22 94 77 90 | Fax +47 22 94 77 01 | Org. no 989 796 739 | post@nordicmining.com

AGENDA

✓ Presentation of the Engebø Prefeasibility Study

• - CEO Ivar S. Fossum
• - CFO Lars K. Grøndahl

✓ Q&A session

Summary of the Engebø Prefeasibility Study (PFS)

1	World class rutile and garnet deposit	• • •	Large outcropping deposit of natural rutile and garnet High grades, low impurities Geotechnically stable, enables efficient mining
2	Solid market fundamentals, favourable location	• • •	Minerals with unique properties and growing demand Significant supply deficit for both minerals in Europe Cost-efficient shipping to European and overseas markets
3	Scalable operation with limited environmental footprint	• • •	Expandable project capacity, increased garnet sales Favourable internal logistics Zoning plan and environmental permit granted
4	Project pre-tax NPV8% of USD 332 mill; IRR 24%	• • •	Low initial CAPEX (USD 207 mill.), Payback < 5 years 29 years initial mine-life Robust economics with upside potential up to NPV USD 465 mill.
5	PFS supports further progress towards production	• •	Continued project development in Definitive Feasibility Study and FEED Production start-up in 2021

1	World class rutile and garnet deposit
2	Solid market fundamentals, favourable location
3	Scalable operation with limited environmental footprint
4	Project pre-tax NPV8% of USD 332 mill; IRR 24%
5	PFS supports further progress towards production

Large eclogite deposit located at tidal waters

• ✓ Outcropping deposit with unknown extension to depth
• ✓ Geotechnically stable orebody allows for effective mining
• ✓ Low impurities, negligible content of heavy metals and radioactive elements
• ✓ Easy transition from open pit to underground mining

High grade rutile and garnet mineralisation

Mineral resource classification*

• ✓ The mineral resource is defined with 3% cut-off
• ✓ Increased cut-off implies stronger financial performance in early mining years
• ✓ Large potential in inferred resources

	3% cut-off grade
	Tonnage Mt	TiO2 %	Garnet %
Measured	15	3.97%	44.6%
Indicated	78	3.87%	43.6%
Measured & indicated	93	3.89%	43.7%
Inferred	138	3.86%	43.5%

Among the highest rutile grades

✓ Rutile grade for current producers and planned projects

* Resource estimates completed by Competent Person Adam Wheeler, corresponding to the guidelines of the JORC Code (2012 edition).

Rutile and Garnet - unique mineral properties, increasing demand

Tests have demonstrated that Engebø can produce coarse and fine garnet suitable for a broad range of applications

Tests have demonstrated that Engebø can produce 95% TiO² rutile suitable for pigment and titanium metal

Garnet - young mineral with strong growth

* Source: TAK Industrial Mineral Consultancy

Garnet market and price forecast

Average garnet export prices (FOB)*

• ✓ Emerging mineral with strong growth in the waterjet cutting markets
• ✓ Currently no European production
• ✓ Engebø is one of few hard rock deposits of almandine garnet
• ✓ Engebø will produce commercial end-products:
• 80 mesh waterjet
• 100 mesh waterjet
• 30/60 mesh blast market
• ✓ PFS garnet price assumption of USD 250/tonne in real terms based on a basket of the three products

* Source: TAK Industrial Mineral Consultancy

Rutile market and price forecast

^* Source: TZMI

Export sales from Engebø

• ✓ The largest pigment manufacturers in Europe with chloride technology have a total production capacity above 500,000 tonnes per annum
• ✓ Several can consume Engebø's annual volume
• ✓ Plant-to-plant shipment
• ✓ Logistical and freight cost advantages

Rutile off-take Garnet off-take

• ✓ Nordic Mining has signed a MoU with a leading, international producer of industrial minerals
• ✓ The parties intend to establish long-term cooperation within development, production, sales, marketing and distribution of garnet products from Engebø

Favourable internal logistics, short haulage distance

• ✓ 16 years open pit mining
• ✓ Rich ore in the early years
• ✓ Low stripping ratio
• ✓ Glory hole concept with underground crushing facility
• ✓ Underground ore silos enable ore blending and operational flexibility
• ✓ Minimum haulage distance
• ✓ Limited visual impact
• ✓ Open pit gives easy access to underground ore
• ✓ Permit allows for future expansion

Open pit mining (2021-2036)		Units
Run of mine	1.5	Mtpa
Mine life	16	Years
Average production garnet	261	ktpa
Average production rutile	33	ktpa
Strip ratio	1.34	Waste/ore

Underground mining (2037 -2049)		Units
Run of mine	1.5	Mtpa
Mine life	13	Years
Average production garnet	262	ktpa
Average production rutile	35	ktpa

PFS process testwork; industrial scale equipment

• ✓ Comprehensive testwork has documented commercial products from rutile and garnet according to market specifications
• ✓ Testwork has demonstrated rutile recovery of approximately 60%

Flowsheet of rutile and garnet process

Zoning plan and environmental permits fully granted

• ✓ Deep-sea disposal offers safe and sustainable tailings solution
• ✓ The tailings will mainly sediment within the regulated area
• ✓ The currents in the tailings area are moderate and there is limited risk for erosion currents
• ✓ Continuous monitoring of the sea disposal will be implemented

Compact process plant, including ship-loading facilities

Key project assumptions

Assumptions	Value
Garnet price	USD 250/tonne
Rutile price	USD 1 070/tonne
Garnet sales (from ~2027)	261 000 tpa
Rutile sales (average)	32 500 tpa
per sales tonne1) Opex	USD 87 per tonne
Capex 2019-2021	USD 207 mill.
Open pit mining and comminution	26.8
Mineral processing and tailings handling	68.6
Infrastructure, storage and loadout	35.7
Indirects	41.8
20% contingency	34.2
Deferred capex 2033	USD 17 mill.
Underground mining and comminution	10.8
Indirects	2.7
25% contingency	3.4

Mining production

Garnet sales and production volume

Rutile sales and production volume

1) Based on total sales volume for rutile and garnet

Attractive project economics

Competitive rutile revenue-to-cash cost position

• ✓ The revenue-to-cash cost ratio is based on the first ten years of operations
• ✓ Engebø benefits from producing high value products with low mining and processing costs

Large upside potential

• A. Increased production of garnet to meet garnet sales at 300 000 tonnes/year
• B. Extension of mine life to 40 years by including Inferred Resources
• C. Additional garnet sales in early years in line with production

Sensitivity calculations confirm robust economics

Pre-tax IRR sensitivity

Pre-tax NPV sensitivity

The way forward

* FEED: Front End Engineering & Design

Definitive Feasibility Study targets project bankability

Summing up - Promising results from the Prefeasibility study

• ✓ Robust dual-mine operation with high-quality garnet and rutile
• ✓ Low investments
• ✓ Attractive project economics
• ✓ Definitive Feasibility Study targeted in Q4 2018

APPENDIX

Key figures (1/2)

Project Financials	Unit	Value
Pre-tax NPV @ 8.0%	US\$M	332
Pre-tax IRR	%	23.8
Payback Period	years	4.1
Net Project Pre-tax Cashflow (Undiscounted)	US\$M	1,613
Post-tax NPV @ 6.8%	US\$M	305
Post-tax IRR	%	20.8
Pre-tax Opportunity NPV @ 8.0%	USSM	465
Production Capacity
Initial Production Capacity ROM	Mtpa	1.5
Capital Expenditure
Initial Capital Expenditure for Open Pit and Processing Plant	US\$M	207.2
Deferred Capital Expenditure for Underground Mine (Year 13)	US\$M	16.9
Operating Cost
Total Operating Cost	US\$/ROM tonne	16.28
Total Operating Cost	US\$/Sales tonne	86.92

Mining and Processing
Open Pit Life	vears	16
Total Open Pit Ferro-eclogite Ore Production	Mt	22.6
Underground Life	years	13
Total Underground Ferro-eclogite Ore Production	Mt	19.4
Total Project Mine Life	vears	29
Total Project Ferro-eclogite Ore Production (LOM)	Mt	41.9
Ferro Ore Grade - Rutile *	%	3.46
Rutile Recovery*	%	58.5
Ferro Ore Yield - Garnet *	%	17.47
Rutile and Garnet Sales (Average for First 5 Years of Operation)
Rutile Sales	Tonnes per annum	30,525
Rutile Sales Revenue	US\$ M per annum	32.7
Garnet Sales	Tonnes per annum	176,000
Gamet Sales Revenue	USS M per annum	44.0
Garnet basket price	US\$ per tonne	250
Rutile price	US\$ per tonne	1,070

Key figures (2/2)

Activity	Units	Life of Mine
Open Pit Mining
Production start		2021
Capacity	Mtpa	1.5
Life	years	16
Waste Mined	kt	30,446
Ferro Ore Mined	kt	22,616
Strip Ratio	tonne waste: tonne ore	1.34
Underground Mining
Production start		2034
Capacity	Mtpa	1.5
Life	years	13
Waste Mined	kt	10,020
Ferro Ore Mined	kt	19,432
Feed to Plant *
Ferro Ore Feed to Plant	kt	41,896
Ferro Ore Grade - Rutile	%	3.46
Ferro Ore Grade - Garnet	%	40.45

Upfront Capital Estimate	US\$ M
Open Pit Mining	10.027
Comminution	16.802
Mineral Processing	61.573
Tailings Handling and Disposal	7.045
Product Storage and Loadout Facilities	13.108
Infrastructure	22.565
Indirects (excluding contingency)	41.834
Contingency	34.222
Total	207.176

Deferred Capital Estimate - Underground Mining	US\$ M
Underground Mining	7.833
Comminution	2.970
Indirects (excluding contingency)	2.747
Contingency	3.381
Total	16.931

Mine plan key production statistics

Activity	Units	Total- Life of Mine	2021	2022	2023	2024	2025	2026	2027	2028	2029		2030	2031	2032	2033	2034
Open Pit Mining
Waste Mined	kt	30,446	2,139	1,866	1,377	1,202	1,670	1,787	1,151	893		3,238	3,608	1,895	3,090	3,512	1,599
Ferro Ore Mined (before losses and dilution)	kt	22,616	1,000	1,500	1,500	1,500	1,500	1,500	1,500	1,500		1,500	1,500	1,500	1,500	1,500	1,410
Underground Mining
Waste Mined	kt	10,020															226
Ferro Ore Mined (before losses and dilution)	kt	19,432									×.		ł,				90
All Mining
Total Waste Mined	kt	40,466	2,139	1,866	1,377	1,202	1,670	1,787	1,151	893		3,238	3,608	1,895	3,090	3,512	1,826
Total Ferro Ore Mined (before losses and dilution)	kt	42,048	1,000	1,500	1,500	1,500	1,500	1,500	1,500	1,500		1,500	1,500	1,500	1,500	1,500	1,500
Total Ferro Ore Mined Rutile Grade (before losses and dilution)	%	3.72	3.98	3.69	3.69	3.95	3.73	3.57	3.53	3.76		3.41	3.77	3.87	3.86	3.81	3.80
Total Ferro Ore Mined Gamet Grade (before losses and dilution)	%	40.3	39.6	39.7	39.9	41.6	40.1	39.7	40.6	41.2		35.4	35.2	35.0	35.8	36.6	40.7
Feed to Plant
Ferro Ore Feed to Plant	kt	41,896	988	1,482	1,482	1,482	1,482	1,482	1,482	1,482		1,482	1,482	1,482	1,482	1,482	1,482
Ferro Ore Grade - Rutile	%	3.46	3.83	3.55	3.55	3.80	3.59	3.43	3.39	3.61		3.27	3.62	3.72	3.71	3.66	3.65
Ferro Ore Yield - Garnet	%	17.47	16.72	17.63	17.63	17.63	17.63	17.63	17.63	17.63		17.63	17.63	17.63	17.63	17.63	17.63
Plant Production and Sales	kt
Rutile Produced	kt	910.4	20.2	32.4	32.3	34.6	32.7	31.3	30.9	32.9		29.9	33.0	34.0	33.8	33.4	33.3
Rutile Sales	kt	910.4	20.2	32.4	32.3	34.6	32.7	31.3	30.9	32.9		29.9	33.0	34.0	33.8	33.4	33.3
Garnet Produced	kt kt	7,318.1	165.2	261.3	261.3	261.3	261.3	261.3	261.3	261.3		261.3	261.3	261.3	261.3	261.3	261.3
Gamet Sales		6,956.2	140.0	158.0	175.0	194.0	213.0	234.0	257.0	261.3		261.3	261.3	261.3	261.3	261.3	261.3
Activity	Units	Total- Life of Mine	2035	2036	2037	2038	2039	2040	2041	2042	2043	2044	2045	2046	2047	2048	2049
Open Pit Mining
Waste Mined	kt	30,446	862	556
Ferro Ore Mined	kt	22,616	1,004	1,201
Underground Mining
Waste Mined	kt	10,020	180	131	498	603	880	781	1,312	163	78	265	1,188	548	405	1,962	802
Ferro Ore Mined	kt	19,432	496	299	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	548
All Mining
Total Waste Mined	kt	40,466	1,042	687	498	603	880	781	1,312	163	78	265	1,188	548	405	1,962	802
Total Ferro Ore Mined (before losses and dilution)	kt	42,048	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	548
Total Ferro Ore Mined Rutile Grade (before losses and dilution)	%	3.72	3.89	3.73	3.52	3.74	3.89	3.78	3.99	3.61	3.51	3.78	3.56	3.40	3.74	3.64	3.57
Total Ferro Ore Mined Garnet Grade (before losses and dilution)	%	40.30	41.0	41.4	42.2	41.8	41.1	41.0	43.6	42.4	44.5	43.9	41.4	39.7	44.3	37.3	41.9
Feed to Plant
Ferro Ore Feed to Plant	kt	41,896	1,482	1,482	1,511	1,511	1,511	1,511	1,511	1,511	1,511	1,511	1,511	1,511	1,511	1,511	552
Ferro Ore Grade - Rutile		% 3.46	3.74	3.59	3.32	3.53	3.67	3.57	3.76	3.40	3.31	3.56	3.36	3.20	3.53	3.43	3.37
Ferro Ore Yield - Garnet		% 17.47	17.63	17.63	17.31	17.31	17.31	17.31	17.31	17.31	17.31	17.31	17.31	17.31	17.31	17.31	17.31
Plant Production and Sales
Rutile Produced	kt	910.4	34.1	32.7	30.9	32.8	34.1	33.2	35.0	31.6	30.8	33.1	31.2	29.8	32.8	31.9	11.4
Rutile Sales	kt	910.4	34.1	32.7	30.9	32.8	34.1	33.2	35.0	31.6	30.8	33.1	31.2	29.8	32.8	31.9	11.4
Garnet Produced	kt	7.318.1	261.3	261.3	261.5	261.5	261.5	261.5	261.5	261.5	261.5	261.5	261.5	261.5	261.5	261.5	95.5
Garnet Sales		6,956.2	261.3	261.3	261.5	261.5	261.5	261.5	261.5	261.5	261.5	261.5	261.5	261.5	261.5	261.5	95.5