Nordic Mining ASA — Investor Presentation 2021

Nov 9, 2021

This document has been used by Nordic Mining during an oral presentation. Therefore, this document is incomplete without the oral explanations, comments and supporting instruments that were submitted during the referred presentation. To the extent permitted by law, no representation or warranty is given, express or implied, as to the accuracy of the information contained in this document.

Some of the statements made in this document contain forward-looking statements. To the extent permitted by law, no representation or warranty is given, and nothing in this document or any other information made available during the oral presentation should be relied upon as a promise or representation as to the future condition of Nordic Mining's business.

• 1. Introduction
• 1. Engebø Rutile and Garnet
• 1. Keliber Lithium
• 1. Other developments
• 1. Financial update
• 1. Q & A

Climate awareness increases focus on mineral supply

Green transition = increased mineral production

• New government: Strong ambitions for the Norwegian mining industry
• Sustainability: Norway is rolling out the rating system Towards Sustainable Mining (TSM)

Sustainable production of high-end industrial minerals and metals

Rutile (Titanium dioxide)

• Environmentally friendly pigment
• Air cleaning surface materials
• Aircrafts and aerospace
• Health applications

Garnet

• Health and environmentally friendly cutting and blasting material

Lithium

• Batteries for electric vehicles and renewable energy storage

Copper/Zinc/Manganese/Cobalt

• Critical minerals from seabed mineral resources

Nordic Ocean Resources (NORA) Seabed minerals (100%)

R & D opens new avenues for the mineral industry

Funded by EU/Horizon 2020 Funded by Norwegian Research Council and industry

• ➢ Engebø mineral rights confirmed in court ruling
• ➢ Lump sum agreements signed with 3 of 4 EPC partners for the Engebø construction
• ➢ Engebø engineering is progressing in preparation for construction start-up
• ➢ Long term price for Rutile adjusted upwards

• ➢ Fair value of investment in Keliber Oy increased

• 1. Introduction
• 1. Engebø Rutile and Garnet
• 1. Keliber Lithium
• 1. Other developments
• 1. Financial update
• 1. Q & A

NM's mining rights at Engebø confirmed in court ruling

Ruling by Oslo District Court:

• NM's mining rights are valid and cover the entire Engebø eclogite deposit
• NM will be the sole mining company granted rights to mineral extractions from Engebø
• AMR has to pay legal expenses of NOK 3,5 million to NM

Operational license:

• Final decision on the operating license is expected from The Ministry of Trade, Industry and Fisheries in near future

Lump-sum agreements signed with 3 of 4 EPC partners

EPC 1 Site wide earthworks and tunneling

EPC 2 Civil work and buildings

EPC 3 Structural, mechanical, plating & piping, underground comminution

• EPCs are progressing on selected detailed engineering work, originally part of the UDFS construction work
• Mr. Terje Gundersen engaged as Project Director

EPC 3 advancing engineering of comminution unit

Use of electrical dryers instead of natural gas fueled dryers results in ~80% reduction of total CO² emissions

Environmental footprint

New process chemicals have been approved by the Environment Agency, confirming reduction by 99%. Process plant area reduced by over 40%

Safe and healthy work
environment

Social responsibility

Operational readiness from start of execution to prepare procedures for operations. Operation and Maintenance included in detailed engineering to secure a safe work environment

Stakeholder Engagement Plan and local resource group established for improved dialogue and cooperation. Long-term local employer

Engebø will report according to TSM from day one

Minimizing visual impact - utilizing existing topography

Towards fossil free mining; electrification reduces CO² emission

• Use of electrical dryers will make the process plant free of CO² emissions and reduce operating cost
• Overall CO² emissions at low levels compared to the international TiO2 feedstock industry
• Future development of e-vehicles and technology will enable a fossil free mining operation
• Focus on cost savings and safety by digitalisation and automation

CO² equivalents from the operation¹

Strong demand growth firm long-term price for rutile

Rutile:

• Bulk rutile prices continued to increase in third quarter of 2021 as the already strong demand for high-grade feedstocks was inflated by low inventory levels and shortages of chloride feedstocks in North America and Europe.
• TZMI has revised their 2022 bulk rutile price forecast to over USD 1,400/mt FOB, corresponding to an increase of close to 15% compared to the forecasted average bulk price in 2021.
• Real long-term prices are expected to remain in the range USD 1,300-1,320/mt FOB, which is USD 120-140/mt above the long-term rutile price used in the UDFS.

Garnet:

• International Garnet trade is still impacted by the difficulties in the international freight markets caused by ie. staff limitations and port congestions, in particular transportation of containers.

Processes ongoing with selected strategic investors

• Investment banks Clarkson Platou Securities AS and SpareBank 1 Markets AS are engaged to advice on Engebø project financing
• Processes ongoing with selected strategic investors for possible sizeable equity and/or debt participation in project financing
• Independent Technical Engineer review for debt financing finalized
• Timeline for formal financing process pending final decision on operating license

• NM will provide updates and guiding on final financing plan and structure in due course

• 1. Introduction
• 1. Engebø Rutile and Garnet
• 1. Keliber Lithium
• 1. Other developments
• 1. Financial update
• 1. Q & A

Keliber progresses as lithium prices has rallied in 2021….

• Total proven and probable ore reserves have increased to 12.30 million tonnes, representing a growth of 32 percent. The ore reserves of the largest lithium deposit Rapasaari have increased by 55 percent.
• Keliber are progressing its updated Feasibility Study with estimated finalization early 2022
• Project financing is scheduled to June 2022, subject closing of permitting processes
• Sibanye-Stillwater has closed EUR 10 million second tranche of equity investment in Keliber

…boosting valuation of lithium development projects

• Fair value of Keliber investment increased by NOK 73 million to NOK 194 million per Q3 2021
• Lithium development equities has seen a positive movement over the past year driven by the massive increase in adaptation of EV's and improved investor sentiment towards the green transition
• Keliber peer-group has gained over 330% on average over the last year
• The peer-group of lithium developers have been selected based on:
• Nature of ore-body, only hard-rock
• Jurisdiction, Finland is favorable
• Project phase, only post PFS*
• Envisaged near-term lithium shortage has led several OEMs including Tesla, GM and BMW to sign deals with lithium producers – positively impacting sentiment

Peer Group: European Lithium, European Metals, *Savannah Resources (PEA), Critical Elements, Core Lithium, Frontier Lithium, Piedmont Lithium and Ioneer Ltd (The companies have been weighted equally)

• 1. Introduction
• 1. Engebø Rutile and Garnet
• 1. Keliber Lithium
• 1. Other developments
• 1. Financial update
• 1. Q & A

Less waste and integrated CO² capture

Key achievements:

• Favorable kinetics have been demonstrated for anorthosite leaching
• Alumina and silica with high purity have successfully been produced
• Resources from multiple deposits across the world have been tested
• Improved acid regeneration with integrated CO2 capture and PCC(Precipitated Calcium Carbonate) production are important next steps

Nordic Ocean Resources (NORA) – pioneering seabed minerals

• The Norwegian Petroleum Directorate has started the Environmental Impact Assessment(EIA) of the area on the Norwegian continental shelf that is scheduled for licensing.
• The assessment is expected to last approximately 1,5 years, followed by a public hearing and decision process.
• Nordic Ocean Resources is reviewing its strategy on how it may best establish a sustainable, robust and long-term strategy for exploration and exploitation of seabed minerals in Norway and internationally.

On October 7 Norwegian government approved Environmental Impact Assessments (EIA) on the continental shelf as part of the opening process for licensing¹

1https://www.npd.no/fakta/nyheter/generellenyheter/2021/konsekvensutredning-i-forbindelse-med-apningsprosessen-formineralvirksomhet/

• 1. Introduction
• 1. Engebø Rutile and Garnet
• 1. Keliber Lithium
• 1. Other developments
• 1. Financial update
• 1. Q & A

The Group's balance sheet remains solid:

• o NOK 47.9 million in cash
• Net cash outflow from operations of NOK 15.6 million in the quarter, reflecting ongoing preconstruction work originally part of the UDFS construction work
  • Most of the pre-construction work is deductible towards the Engebø capital expenditure
• o Fair value of Keliber investment increased to NOK 193.9 million per Q3 2021, recognizing a fair value gain in the quarter of NOK 72.6 million
• o No interest-bearing debt
• o Fully funded for the continuation of the Engebø project towards construction and other Group activities, based on current plans and forecasts.

For details, see appendices or full interim report on https://www.nordicmining.com/

• 1. Introduction
• 1. Engebø Rutile and Garnet
• 1. Keliber Lithium
• 1. Other developments
• 1. Financial update
• 1. Q & A

Q & A

• ➢ Engebø mineral rights confirmed in court ruling
• ➢ Lump sum agreements signed with 3 of 4 EPC partners for the Engebø construction
• ➢ Engebø engineering is progressing in preparations for construction start-up
• ➢ Long term price for Rutile adjusted upwards
• ➢ Fair valuation assessment of investment in Keliber Oy increased

Q3-2021	Q3-2020		Acc.2021	Acc.2020	2020
Unaudited	Unaudited	Amounts in NOK million	Unaudited	Unaudited	Audited
-	-	Sales	0.0	-	-
(3.8)	(3.9)	Payroll and related costs	(12.5)	(10.2)	(14.4)
(0.0)	(0.1)	Depreciation and amortization	(0.1)	(0.2)	(0.2)
(12.8)	(2.1)	Other operating expenses	(32.4)	(20.4)	(27.9)
(16.6)	(6.0)	Operating profit/(loss)	(44.8)	(30.8)	(42.5)
72.6	1.5	Fair value gains/losses on investments	69.7	(3.2)	9.3
(0.1)	(0.0)	Financial items	(0.3)	0.3	0.3
56.0	(4.6)	Profit/(loss) before tax	24.7	(33.7)	(32.9)
-	-	Income tax	-	-	-
56.0	(4.6)	Profit/(loss) for the period	24.7	(33.7)	(32.9)

Appendix #2 Consolidated statement of financial position

	30.09.2021	31.12.2020
Amounts in NOK million	Unaudited	Audited
ASSETS
Evaluation and exploration assets	28.7	28.3
Property, plant and equipment	0.2	0.4
Right-of-use assets	0.3	0.4
Financial investments	193.9	100.1
Total non-current assets	223.0	129.2
Cash and cash equivalents	47.9	42.2
Trade and other receivables	4.9	2.2
Total current assets	52.8	44.4
Total assets	275.9	173.7
SHAREHOLDERS' EQUITY AND LIABILITIES
Total equity	265.1	164.3
Total non-current liabilities	1.0	1.6
Total current liabilities	9.8	7.8
Total liabilities	10.8	9.4
Total shareholders' equity and liabilities	275.9	173.7