SANTOS LIMITED — Capital/Financing Update 2018

Feb 14, 2018

ASX: NCZ

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ASX / MEDIA ANNOUNCEMENT

15 February 2018

NEW CENTURY EXECUTES LONG TERM GAS SUPPLY AGREEMENT WITH SANTOS FOR POWER SUPPLY TO CENTURY OPERATIONS

• Successful execution of a long term Gas Supply Agreement with major domestic supplier Santos for approximately 9PJ of gas over 4 years

• Contract value in the order of A$100M, representing a major milestone for New Century in establishing full scale grid power generation for Century operations

• Strong participation from gas suppliers & traders in New Century’s gas supply tender

• New Century remains on track to deliver grid power for scheduled operations and first zinc concentrate production in Q3 2018

New Century Resources Limited (Company or New Century) (ASX:NCZ) is pleased to announce that it has entered into a long term Gas Supply Agreement ( GSA ) with Santos Limited (ASX:STO) for the supply of gas direct to Mt Isa power generation facilities.

The GSA represents a key contract for the Company and forms part of the overall Century power strategy, which has been pursued since Q2 2017, targeting reinvigoration of existing grid power infrastructure from Mt Isa for Century operations.

Securing gas in the currently tight Australian east coast domestic market was identified early by New Century management as a key risk to the successful development of the Project. The entry into this GSA allows the Company access to gas fired power generation for the operations as opposed to more expensive on site diesel generation.

While full terms of the GSA remain confidential, the commercial agreement was established through a highly competitive tender process, with Santos emerging as the preferred gas supply partner.

The GSA represents the single largest contract award by the Company to date, allowing for the supply of approximately 9PJ of gas to Mt Isa over 4 years, worth in the order of $100M.

Commenting on the contract award to Santos, New Century Utilities Manager Mr Michael Pitt said:

“New Century is very pleased with the Santos GSA, which provides both the required gas supply volumes for restarting operations, but also significant flexibility during ramp up at the Mine.

After a highly competitive tender process for the supply of gas, we are thrilled to have entered into a long term contract with our partners at Santos and look forward to a strong working relationship as we transition into full operations at Century.”

Melbourne Office Suite 4, Level 9, 350 Collins Street, Melbourne VIC 3000 Perth Office Suite 23, 513 Hay Street, Subiaco WA 6008 / PO Box 1311, Subiaco WA 6904 Phone +61 (8) 6142 0989 Email info@newcenturyresources.com Website www.newcenturyresources.com

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Figure 1: Gas Supply Agreement signing ceremony at Santos Operational Control Centre, Brisbane, with Mr Patrick Walta (New Century MD) and Mr Phil Bryne (Santos Executive Vice President Marketing & Trading)

Commenting on the GSA, Santos’ Executive Vice President Marketing & Trading Mr Phil Byrne stated:

“Santos is delighted to have been selected to supply gas for New Century’s world class Century Zinc Mine and we’re looking forward to a long-term cooperative relationship with the Company.

The Gas Sales Agreement we’ve reached is innovative in both its flexibility and pricing, making it commercially attractive for both parties.

Santos is absolutely committed to working in partnership with Australian industry to deliver competitively priced domestic gas and this is a great example of that commitment.”

Commenting on the contract award and the overall execution of the Company’s power strategy, New Century Managing Director Mr Patrick Walta stated:

“The execution of this Gas Supply Agreement represents yet another important milestone achieved by the New Century management team, again delivering timely progress in the near term development of Century operations.

Melbourne Office Suite 4, Level 9, 350 Collins Street, Melbourne VIC 3000 Perth Office Suite 23, 513 Hay Street, Subiaco WA 6008 / PO Box 1311, Subiaco WA 6904 Phone +61 (8) 6142 0989 Email info@newcenturyresources.com Website www.newcenturyresources.com

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Low cost grid power supply is an integral part of the Company’s scheduled operations, with Century set to become a globally significant, lowest cost quartile zinc operation with robust economics throughout the life of mine.”

Both New Century and Santos have spent several months working collaboratively to develop a strong understanding of Century’s start-up gas supply requirements, which has allowed the parties to establish a contract structure meeting the flexibility needs of the Project whilst providing Santos with sufficient certainty to commit to supply.

Other minor contracts within the power supply chain (see Table 1) are progressing in line with the project execution schedule and New Century will update the market as they are finalised.

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Figure 2: Regional map showing the Century Mine location with supporting gas and power infrastructure

Melbourne Office Suite 4, Level 9, 350 Collins Street, Melbourne VIC 3000 Perth Office Suite 23, 513 Hay Street, Subiaco WA 6008 / PO Box 1311, Subiaco WA 6904 Phone +61 (8) 6142 0989 Email info@newcenturyresources.com Website www.newcenturyresources.com

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Table 1: Status of New Century’s key power supply contracts

Power Supply Contracts		Supplier	Status
1	Gas Supply Agreement	Santos	Awarded
2	Power Generation Contract	Multiple	Negotiations advanced	Completion Q2 2018
3	Power Transmission Contract	Ergon	Design works commenced via Early Works Agreement, contract development underway	Completion Q2 2018

The Company is not aware of any reason why the ASX should not allow recommencement of trading in the Company’s securities to begin immediately.

About Santos (ASX:STO)

Established in 1954, Santos is one of the leading independent oil and gas producers in the AsiaPacific region, supplying the energy needs of homes, businesses and major industries across Australia and Asia.

The company’s five core long-life natural gas assets sit at the heart of a disciplined, focused strategy to drive sustainable shareholder value: the Cooper Basin, GLNG, Papua New Guinea, Northern Australia and Western Australia Gas.

Santos is focused on becoming a low-cost, reliable and high-performance business with the financial flexibility to build and grow through the oil price cycle.

For further information please contact:

Patrick Walta – Managing Director +61 (08) 6142 0989

Shane Goodwin – Head of Corporate Affairs +61 434 039 106

Melbourne Office Suite 4, Level 9, 350 Collins Street, Melbourne VIC 3000 Perth Office Suite 23, 513 Hay Street, Subiaco WA 6008 / PO Box 1311, Subiaco WA 6904 Phone +61 (8) 6142 0989 Email info@newcenturyresources.com Website www.newcenturyresources.com

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About New Century Resources Limited

New Century Resources Limited (ASX:NCZ) is an ASX listed base metal development company targeting the recommencement of operations from the Century Zinc Mine in Queensland, Australia.

The Company has recently completed a Feasibility Study over the existing Ore Reserves (77.3Mt at 3.1% ZnEq[1] ) of the Century Zinc Mine, outlining a robust operation which is scheduled to become one of the top 10 zinc producers in the world and also in the lowest cost quartile globally.

The Company has all permits in place and is fully funded (subject to finalisation of the Sprott facility, see ASX announcement dated 11 October 2017), with >A$100M in equity and debt available for operational restart in Q3 2018.

The proposed operations at Century will utilise the existing world class infrastructure at the mine, including a large scale multi train flotation plant, 700 person camp, private airport and sealed run way, mining fleet, grid power connection, 304km slurry pipeline and its own concentrate shipping port and transhipment vessel in Karumba.

In addition, Century boasts substantial Mineral Resources (9.3Mt at 10.8% Zn + Pb) which provide a significant opportunity for mine life extension and metal production increases from the scheduled operations.

Statement of JORC 2012 Compliant Resources & Reserves

Mineral Resources	Tonnes (Mt)	Zn (%)	Pb (%)	Ag (g/t)	Zn (t)	Pb (t)	Ag (Oz)
South Block (Indicated)	6.1	5.3	1.5	43	322,000	90,000	8,550,000
Silver King (Inferred)	2.7	6.9	12.5	120	186,000	337,500	10,500,000
East Fault Block (Inferred)	0.5	11.6	1.1	48	60,000	5,500	800,000
TOTAL	9.3	6.1	4.7	66	568,000	433,000	19,850,000
Ore Reserves	Tonnes (Mt)	ZnEq1 (%)	Zn (%)	Ag (g/t)	Zn (t)	Pb (t)	Ag (Oz)
Century Tails (Proved)	77.3	3.1	3.0	12	2,287,662	-	29,734,819

1 The ZnEq calculation is located below the Statement of JORC 2012 Compliant Resources & Reserves. Melbourne Office Suite 4, Level 9, 350 Collins Street, Melbourne VIC 3000 Perth Office Suite 23, 513 Hay Street, Subiaco WA 6008 / PO Box 1311, Subiaco WA 6904 Phone +61 (8) 6142 0989 Email info@newcenturyresources.com Website www.newcenturyresources.com

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Zinc Equivalent Calculation

ZnEq was calculated for each block of the Century Tailings Deposit from the estimated block grades. The ZnEq calculation takes into account, recoveries, payability (including transport and refining charges) and metal prices in generating a zinc equivalent value for each block grade for Ag and Zn. ZnEq = Zn%+ + Ag troy oz/t*0.002573. Metal prices used in the calculation are: Zn US$3,000/t, and Ag US$17.50/troy oz.

Competent Persons Statement

Mineral Resources

The information in this announcement that relates to Inferred Mineral Resources on the Silver King Deposit and the East Fault Block Deposit was first reported by the Company in its prospectus released to ASX on 20 June 2017, and the South Block Deposit was first reported by the Company to the ASX on 15 January 2018. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements, and in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Ore Reserves

The information in this announcement that relates to the Ore Reserve at the Century Tailings Deposit was first reported by the Company in its ASX announcement titled "New Century Reports Outstanding Feasibility Results that Confirm a Highly Profitable, Large Scale Production and Low Cost Operation for the Century Mine Restart" dated 28 November 2017. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement, and in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Melbourne Office Suite 4, Level 9, 350 Collins Street, Melbourne VIC 3000 Perth Office Suite 23, 513 Hay Street, Subiaco WA 6008 / PO Box 1311, Subiaco WA 6904 Phone +61 (8) 6142 0989 Email info@newcenturyresources.com Website www.newcenturyresources.com

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