PEPPERMINT INNOVATION LIMITED — AGM Information 2014

Nov 26, 2014

AGM Presentation ASX: CYS November 2014

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Chrysalis – summary 2014

• Australian Admin costs reduced & Admin $ to In-ground exploration $ ratio improved

• A$1.1M raised via fully underwritten Entitlement Issue [Sept 14’]

• Aust. project divestment –> no A$ commitment; FMG Purchase Option [$100K pa income]

• Zambia: JV farm-out decision –> First Quantum JV Option Agreement executed

• Shikila Project: Good regional geochemistry potential & Kansanshi Dome target

• Kabwima Project: Good regional geochemistry potential & Kimabwe prospect supergene copper potential beneath current drilling

• Bulala Hills Project: Regional geochem potential & Mwako prospect SedEx Cu-Au target

• Mwongo Project: untested Mulyongo Syenite –> IOCG potential [Kitumba style target]

• New focus on finding (–> funding) a small profitable mining &/or processing operation

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Board of Directors

› Dr Neale Fong, MBBS Dip CS MTS MBA FAICD FACHSM (Hon), Non-Executive Chairman

• › Mr Jian Hua Sang, B.Sc, M.Sc, Non-Executive Director

• › Mr Leigh Ryan, B.Sc, MAIG, Managing Director

Key Personnel

• › Mr Kevin Hart, B.Com, FCA, Company Secretary (CYS)

• › Patrick Soh, BBus., CPA, Chief Financial Officer (CYS)

• › Mr Chris Simasiku – Director / Company Secretary (SRL)

• › Dr. Maryla Wisniewski – Director (SRL)

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Lusaka Exploration Office
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corporate summary

Chrysalis Resources 12 Month Share Price Chart

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		Capital Structure
		Issued Shares	344,484,128
		Share Price	$0.009 (26thNov 2014)
		Market Capitalisation	$3.1 million
		No. of Share Holders	558 (26thNov 2014)
		Majority Shareholders
		EBH	16.6%
		Tiger Resources Ltd (ASX:TGS)	13.2%
		Directors	2.1%
		Top 20	70.6%
		Top 100	92.5%	3

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admin cost reductions

• Australian admin overheads significantly reduced in last 12 months [A$497 Sept 13 qtr. to A$165 forecast Dec 14 qtr]

• Board reduced to 2 Non-Exec Directors on a 50% salary reduction, CEO –> MD on 25% salary reduction

• Good 12 mth exploration statistics: 13,200 geochem samples + 9,370m drilling/pit/trenching

• Admin to In-ground exploration $ ratio improved accordingly [1.9 (June 13) –> forecast 0.34 (Dec 14)]

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$800
Administration
$700 and Exploration
$699 $691 Expenditure by
$600 Quarter
$497
$500 $530
$521 Exploration
$485
$390 Expenditure
$400 $355
$400 $405
$308
$363
$275 $273
$300 Aust. Admin
$233
$215 Expenditure
$200 $165
$203
In-ground Ratio
$100
(Admin/Expl)
x200
$-
A$'000
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australian project divestment

 Australian project review

• limited prospectivity –> high risk

• high cost [rents, rates, NT, $ commitments]

• divestment decision best option

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Gregory Range
(Cu-Pb-Zn)
West Angelas (Fe)
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• Pioneer sold to Metals X [A$30,000 – Aug 14’]

• Halloween West Joint Venture [37% interest] sold to Sandfire [A$85,000 – Sept 14’]

Halloween West JV (Cu-Au)

• Gregory Range surrender planned

• Fortescue Metals West Angelas Purchase Option Agreement

• Signed and 1[st] A$100K received in Aug 14’

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Pioneer (Au)
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• $100,000 pa for another 2 years

• Purchase Option for 1% Production Royalty

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zambian exploration

• Good prospectivity remains on all 5 licences

• Exploration funding difficult to acquire in the current market –> JV decision

• Joint Venture Option Agreement signed with First Quantum Minerals [Nov 14’] – Shikila and Kabwima Projects

• Option period; 6 mth minimum US$450K FQM funding/ CYS manage exploration [regional soils – multi-element analysis]

• US$5M to earn 51% interest within 2 yrs

  • [constrained by life of tenure]

• 43-101 resource and ML(s) granted for 80%

• [constrained by life of tenure]

• Put/Call option @ 4c/lb. CuEq x MII Resource x JV%

• 1% NSR with US$20M cap

• Searching for Joint Venture partners for Mwongo and Bulala Hills Projects 6

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shikila project prospectivity

Wangolo JORC inferred resource: 18.6 Mt @ 0.52% Cu (0.3% Cu cut-off)

Refer to CYS ASX release dated 20 August 2013; compliant with the 2004 JORC Code

• Limited work completed this year

• FQM interested in NW extension of Kansanshi Mine Sequence Sediments and intrusion related “Domes”

 Regional JV Option soil sampling program plotted (grey dots) – 1,480, 500m x 500m spacing, 48 element analysis

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kabwima copper anomalism

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 9 new Cu-in-soil

anomalies (mostly Gabbro related)

• Forced focus on Kimabwe

 FQM Kalilele Dome anomaly interest

• JV Option soil program started

[500m x 500m, low level 48 element analysis]

• 10% complete

[700/6,730]

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Soil Sampling Results and proposed regional soils over RTP TMI aeromagnetic image Kalilele Dome Anomaly Mutenda Soil Anomaly Kimabwe Soil Anomaly

Refer CYS ASX releases dated 16 June 2014 and 27 October 2014

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Regional Soil Sampling Progress

kimabwe prospect – aircore drilling

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 1[st] pass aircore drilling [122 holes 5,234m]:

• 44m @ 0.7% Cu from 6m to EOH (KIAC108) incl. 6m @ 2.2% Cu from 44m to EOH

Refer CYS ASX release 10 November 2014

• 28m @ 0.26% Cu, 0.034% Co from 12m (KIAC021)

• 16m @ 0.29% Cu from 25m to EOH (KIAC105) incl. 4m @ 0.43% Cu, 0.033% Co from 33m

 All <50m; Cu leaching -> possible better Cu grades at depth [FQM to drill?]

Silicified Siltstone

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bulala hills prospectivity

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• Mwako, Ifumbwe and Namwala Cu anomalies confirmed by 500m x 500m soils

• Additional regional soil sampling and Namwala infill soil sampling required [low level Au and 48 element analysis required]

• Mwako prospect ~4.5km x 1km >100ppm Cu-in-soil anomaly focus

• 1st pass RC drilling [9 holes for 1,634m] into >200ppm Cu-in-soil anomalies

Refer CYS ASX release 27 October 2014

Cu-in-soil and transported soil over 1VD aeromagnetic image

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mwako prospect RC drilling

West African Tarkwaian style conglomerate (late basin fill) prospective for Au mineralisation?  39m @ 0.28% Cu from 97m (MKRC003) incl 17m @ 0.32% Cu from 114m  36m @ 0.26% Cu from 150m (MKRC007)  38m @ 0.19% Cu from 174m to EOH (MKRC008)

• 1m @ 0.28g/t Au from 104m (MKRC001)

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Refer CYS ASX release 13 November 2014
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• Broad, low grade Cu mineralisation in 8 out of 9 holes - chert host rock

• [additional Au analysis required for CuEq intercept calculations]

• 1m @ 0.24g/t Au from 76m (MKRC004)

 1m @ 0.20g/t Au from 184m (MKRC008)

• Sedimentary Exhalative? EM survey to detect massive sulphides at depth?

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Anomalous points

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mwongo prospectivity

• Regional soil geochem confirms syenite intrusion

• Syenite has U signature similar to Kitumba syenite

• Sc:Cu ratio –> true Cu anomalies (blue outlines) over Mulyongo syenite [cf. “rock-type” Cu anomalies]

• Mulyongo workings: Cu-Pb-Zn-Ag soil anomaly [0.23g/t Au / 0.19% Cu in qtz vein & gossan rock chips]

Mwongo Uranium Image (same scale as Kitumba)

Kitumba Uranium Image

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Mulyongo malachite
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gossan
Kitumba Deposit
Refer CYS ASX release 16 June 2014
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Refer CYS ASX release 16 June 2014
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Drill here !

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copper price and warehouse levels

5 Year Copper Price

• Copper has maintained elevated prices over a long period –> likely to continue if Chinese demand remains

• “Average long term planning price for Cu is US$3.11/lb.”

• [PwC Global Mining Leader industry surveys]

5 Year Warehouse Levels

• Copper warehouse levels levelling out, but still low

• “Forecast production surplus of 390,000t relative to demand in 2015” –> may moderate any Cu price increase

• [International Copper Study Group - ICSG]

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5 year base metal prices

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Zn 5 Year Warehouse Levels

• Cu, Pb, Sn, Ni relatively steady for several years

• Al & Zn marginally better performers over the past year

• Zn warehouse levels still declining – Zn price should be maintained or improve through 2015

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5 year precious metal prices

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 Au and Ag back to 5 year lows

 “Average long term planning price for Au is US$1284/oz.”

[PwC Global Mining Leader industry surveys]

 Palladium the best performing precious metal

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CYS future

• Keep admin & overhead costs low

• FMG Purchase Option to provide A$100Kpa for another 2 years

• First Quantum Joint Venture Option –> potential US$5 million exploration spend and free carry to copper production

• Bulala Hills and Mwongo retain good Cu-Au prospectivity –> good JV potential

• Chrysalis to target small profitable Cu, Au or Zn mining and/or processing operation

• Focus to remain in Zambia to take advantage of well established industry & government contacts, local knowledge, existing office & field staff, & exploration vehicles / equipment

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corporate and social responsibility

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UTH Malnutrition Ward
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• Continued support of the Lusaka University Teaching Hospital’s (UTH) Malnutrition Ward ($20,000 donation)

• ZACTS bridge repairs completed (main access to Shikila)

• Mulyongo Primary School (Mwongo) painted, sports equipment and writing materials supplied (ongoing)

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• Motorbike purchase for the Mumbwa District Hospital (Mwongo) for medical deliveries, water sampling, child growth/health monitoring and supervision of community volunteers

• Aust-Africa Mining Industry Group (AAMIG) recently put in contact with FQM in respect to freighting redundant equipment from Perth’s Princess Margaret Hospital to Zambia

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Shikila primary school
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disclaimer

This document has been prepared by Chrysalis Resources Ltd (“Chrysalis” or “the Company”) to provide an update of the Company to investors and potential new shareholders. This presentation should be read in conjunction with other public announcements and reports (including financial reports and disclosure documents) released by Chrysalis. Any statements, opinions, projections, forecasts or other material contained in this document do not constitute any commitments, representations or warranties by Chrysalis and associated entities or its directors, agents and employees. Except as required by law, and only to the extent so required, directors, agents and employees of Chrysalis shall in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatsoever nature arising in any way out of, or in connection with, the information contained in the document.

This document includes certain statements, opinions, projections, forecasts and other material, which reflect various assumptions. The assumptions may or may not prove to be correct. Recipients of the document must make their own independent investigations, consideration and evaluation of the opportunity to invest in the Company. By accepting this document the recipient agrees that if it proceeds further with its investigations, consideration or evaluation of the opportunity to invest in the Company it shall make and rely solely upon its own investigations and inquiries and will not in any way rely upon the document.

Competent Person Statement

The information in this report that relates to exploration results is based on information compiled by Mr Leigh Ryan, Managing Director employed by Chrysalis, who is a Member of the Australian Institute of Geoscientists (MAIG). Mr Ryan has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity 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”. Mr Ryan consents to the inclusion in the report of the matters based on information in the form and context in which it appears. Mr Ryan participates in the Company’s Employee Share Plan.

The company confirms that it is not aware of any new information or data that materially affects the information included in the relevant ASX releases and in the form and context of the announcements have not been materially modified. In the case of estimates of Mineral Resources, the company confirms that all material assumptions and technical parameters underpinning in the relevant market announcement continue to apply and have not materially changed.

The Information in this presentation that relates to mineral resources at Wangolo is based on resource estimates compiled by Mr Leigh Ryan, who is a member of the Australian Institute of Geoscientists (AIG). Mr Ryan 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, Mineral Resources and Ore Reserves”. Mr Ryan consents to the inclusion in this presentation of the matters based on their information in the form and context in which it appears.

Chrysalis Resources Limited ABN 56 125 931 964 Unit 20, Level 1 7 The Esplanade Mt Pleasant, WA 6153 T: (08) 6180 9290 F (08) 9316 1314 W: www.chrysalisresources.com.au

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