Resolute Mining Limited — Investor Presentation 2019

May 22, 2019

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Mine Gold. Create Value. Austmine 2019 Mining Innovation Conference Presentation John Welborn | Managing Director & CEO

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“I want to find a bold and innovative way to do things the same way its been done for the last 25 years.”

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Syama Automation Project Mining Smarter with Advanced Technology

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Syama Automation Project Major components

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PHASE 1: MINE DIGITALISATION

PHASE 1 Capability delivers the completed control room with connection to the underground wireless network and the ability to schedule, control and monitor MANUAL underground activities in real-time.

PHASE 2: AUTONOMOUS PRODUCTION AND HAULAGE

PHASE 2 Capability delivers AUTOMATED LHD and DRILL Production on the levels and AUTONOMOUS truck haulage from the 1055 level to the surface ROM

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Mine-wide
Wireless
Network
Mine Scheduling,
Control, Visualisation
and Optimisation Suite
Surface Control Room
Production Level Automation
(LHD / Drill Automation)
Automated Haulage
(Truck Loop)
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Syama Automation Project Phase 1

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Control Room + Network + OptiMine = Efficiency

• Visualisation of mine and fleet (equipped with tracking units)

Both declines, and the 1105 and 1130 production levels will be connected to the visualisation system in the control room which will enable:

• Efficiency gains for production fleet

• Production gains for haulage fleet fitted with OptiMine units

• Remote production drilling

• Real-Time production data

• Real-Time dispatch

• Effective cave management

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Syama Automation Project Phase 2

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Automated Haulage Loop - The Main Game

• The Automated Haulage Loop is the “Main Game” in terms of Syama’s delivered benefit from innovation.

• It gives us the ability to haul ore 24 hours a day / 7 days a week.

• Traffic is managed by a centralised server which increases the throughput over manual hauling.

• Higher production rates over more hours per day = more tonnes.

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Syama Automation Project Phase 2

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Automated Haulage Loop - The Main Game

The Automated Haulage Loop Consists of three sections:

1. Haulage Level – This is where the autonomous trucks are loaded underground by the remotely operated LHDs. The ore is taken from the ore passes which are fed by the production levels.

2. Autonomous Decline – The mine has a segregated autonomous decline with passing bays where the autonomous trucks make their way to the surface.

3. Boxcut & ROM – After leaving the underground mine the trucks tram up the boxcut and to the ROM where they dump.

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3. Boxcut & ROM
2. Auto Decline
1. Haulage Level
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YOU’RE CRAZY!

Why would anyone try to implement the world’s most complex underground mining production automation system in West Africa?

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The drivers for automation

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Efficiency Productivity
Safety People
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The drivers for automation: Safety

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Underground mines present a number of hazards – particularly where there is not a high level of experience. To keep our people safe we will need to limit exposure to hazards:

1. Ground Failure 2. Mud / Fines Rush

2. Vehicle Interactions 4. Whole Body Vibration

3. Dust

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The drivers for automation: Safety The past

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Our Mission is to identify those things we are doing now that people will look back at in 20 years and ask:

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“How did we allow that to happen?”

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The drivers for automation: Safety The past: Engineered control

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• Hazard and personnel still in close proximity

• Failure of the control leads to the human and hazard in the same place at the same time

Cage the hazard

Cage the Human

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The drivers for automation: Safety Moving forward: Out of harm’s way

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The drivers for automation: Safety Moving forward: Out of harm’s way

Dr. Joe Cronin Resolute’s Automation Project Manager

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Dr. Joe Cronin Resolute’s Automation Project Manager

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The drivers for automation: Safety The Future: Operators separated from the level

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The drivers for automation: Efficiency

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Increasing operational efficiency by:

1. The ability to control production at a reliable rate.

2. The ability to optimise the production process

3. Real-Time compliance data

The ability to feed back real-time data for closed-loop process 4. control 5. Reduction in operator costs

Potential to lower damage costs and downtime as control systems 6. become smarter

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The drivers for automation: Productivity

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Higher production rates and greater recovery from:

The ability for higher throughput at a greater rate of recovery when operating at optimum parameters

The ability to optimise return over a longer period (full production over shift change, blasting and re-entry)

The reduction in variability due to operators

1. The ability to selectively produce from drawpoints to optimise grade

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The drivers for automation: Productivity

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• Underground productivity is highly variable and dependent on decisions made by personnel and supervisors

• Situational awareness, the ability to communicate and real-time feedback are essential for success

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The drivers for automation: Productivity Moving to real-time feedback

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We can look back to see how many Green and Red days we have had, but we don’t know WHY! We need to ask; How are we going right now? What do we need to do to make this day a Green day.

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“There’s a reason the rear view mirror is so
much smaller than the windscreen”

Old Swedish Saying

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The drivers for automation: Productivity Moving from open loop to close loop control

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OPEN LOOP: How We Work Now

• Within the first hour, breakdowns will force us to change the plan.

• Too complex to analyse the effect of our decisions in real time.

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The drivers for automation: Productivity The past

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Moving from open loop to closed loop control

OPEN LOOP: how we have worked in the past

SET POINT CONTROLLER ACTUATOR PROCESS PLAN THE DAY COMPLETE THE SHIFT RECORD WHAT HAPPENED DISTURBANCE

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The drivers for automation: Productivity The ability to control the output

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VARIATION IN UNDERGROUND PRODUCTION

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The drivers for automation: Productivity The ability to control the output

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Variation in underground production represents a loss of control of our process:

1. DATA 2. SAFETY 3. COSTS 4. SCHEDULING 5. PRODUCTION 6. RISK

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The drivers for automation: Productivity The ability to control the output

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VARIATION reveals itself in 1. Higher INJURY rate 2. Higher operating COSTS 3. Lower and less predictable PRODUCTION 4. Lower UTILISATION OF ASSETS 5. Lower EMPLOYEE ENGAGEMENT

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The drivers for automation: Productivity The future

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CLOSED LOOP: how we will work in the future

Production Short Term Underground Plan Controller Operation PEOPLE REAL-TIME FLEET STATE OF UNDERGROUND POSITION OPERATION PROGRESS

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Production Output

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The drivers for automation: People

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The drivers for automation: People

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The Malian Talent Development Program

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The drivers for automation: People

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Capability based technology strategy

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•
MANUAL MINING Business as usual
• •
UNDERGROUND Automated production Machine health monitoring
•
drilling Real-Time health and
WIFI •
Production monitoring safety
• •
SHORT TERM Real-Time dispatch Production optimisation
• •
Real-Time production Production efficiency
INTERVAL CONTROL •
reporting Reduced personnel in mine
• •
TRACKING + Proximity awareness Automatic ventilation
•
Traffic management control
VISUALISATION •
Electronic tagging
AUTOMATED •
Reduced personnel
•
MACHINES Production over shift change
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Optimised automated production Additional production from technology

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AUTOMATED MINE 15% - 20% Gain

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PRODUCTIVITY – TONNES / METRES
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• Remotely Operated Machinery

• Autonomous Drilling

• Autonomous Haulage

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DIGITAL MINE
10% - 15% Gain
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• Tracking and Visualisation

• • Task Scheduling and Optimisation

• MANUAL MINE

• DAY SHIFT NIGHT SHIFT

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Early Results:
Automated drilling
Safe,
21% >10 [%] Decrease productive
in manual and low
Increase in Increase in =
+ +
intervention
drill meters drilling cost
per day accuracy
operation
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Syama Underground Mine

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The World’s first purpose built fully automated underground gold mine You would be CRAZY not to !

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Mine Gold. Create Value.

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