TURNSTONE RESOURCES LTD — AGM Information 2020

Nov 26, 2020

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ASX ANNOUNCEMENT 27 November 2020

ANNUAL GENERAL MEETING PRESENTATION

Davenport Resources Ltd (ASX: DAV, “ Davenpor t”, “ The Company ”) is pleased to bring to release the Annual General Meeting presentation which describes the Company’s plans for developing its 5.3 Bt potash resource in central Germany and the transformative impact of the recent magnesium sulphate discovery (ASX announcement 22 September 2020).

The presentation is attached in the Appendix and can also be located on the Company website using the URL https://davenportresources.com.au/presentations/.

This announcement has been approved by the Board of Directors of Davenport Resources Limited.

In accordance with ASX listing rule 5.23, the Company is not aware of any new information or data that materially affects the information included in the previous market announcement ( ASX announcement 22 September 2020) and that all material assumptions and technical parameters underpinning the estimate in the previous market announcement continue to apply and have not materially changed.

Investor & Media Enquiries

Dr Chris Gilchrist

Managing Director Davenport Resources Ltd +353 41 988 3409 cgilchrist@davenportresources.com.au

Nathan Ryan

Managing Director NWR Communications +61 420 582 887 nathan.ryan@nwrcommunications.com.au

ABN: 64 153 414 852 ASX Code: DAV ASX Code (Options): DAVO Frankfurt Code: A2DWXX

197.1 M Ordinary Shares 14.2 M Unlisted Options 46.2 M Listed Options 5.1M Performance Rights

Level 1, 677 Murray Street, CONTACT DETAILS West Perth WA 6005 W: davenportresources.com.au PO Box 174 E: info@davenportresources.com.au West Perth WA 6872 P: +61 (08) 6145 0291

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WESTERN EUROPE’S LARGEST POTASH INVENTORY AGM Presentation November 2020

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DISCLAIMER

Davenport Resources Limited (“Davenport”, “DAV”, “The Company”) has issued this Presentation for informational purposes only. It is not intended to, and does not, constitute specific advice to any particular party or person. The information in this presentation is based on publicly available information, internally developed data and other sources. Where any opinion is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information.

The contents of this presentation are confidential and not for distribution to unauthorized parties.

COMPETENT PERSON STATEMENTS

Elizabeth de Klerk M.Sc., Pr.Sci.Nat., SAIMM., Micon’s Director, Senior Geologist and Competent Person visited the South Harz Potash project from 12[th] to 16[th] February 2018 and 6[th] to 8[th] March 2018. During the initial site visit, the historical drilling area and laboratory facilities at K-Utec Salt Technologies Ltd in Sondershausen were visited. The original drill hole logs, reports, maps and cross-sections held in the Bodenverwertungs and verwaltungs GmbH (BVVG) archives in Berlin were also inspected. In addition, Mrs. de Klerk interviewed the Ercosplan team at their offices in Erfurt to understand how the data were used to compile an Excel database and generate an initial Exploration Target for Mühlhausen-Nohra. The second site visit involved more time spent at K-Utec inspecting additional historical records for Mühlhausen-Nohra held in the archives at the offices of K-Utec Salt Technologies Ltd in Sondershausen.

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SUMMARY - A COMPELLING INVESTMENT CASE

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• Massive resources across four potential potash projects in Germany, the largest in Western Europe, 5.3 billion tonnes containing 567 Mt K2O in areas adjacent to historic potash mines.

• Davenport holds perpetual mining licences & results from over 300 exploration holes drilled by former East German state potash mining company.

• JORC Inferred resources have been established. Only two twin holes required to ènable announcement of scoping studies in each licence area.

• Low targeted capital and operating costs.

• • Unique resource also contains sulphates – attractively priced magnesium and potassium sulphate can be produced.

• • Funding of drilling program reaching successful conclusion. Drilling will take place in 2021.

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EAST GERMANY – WHERE POTASH MINING BEGAN

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SouthHarz
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• Salt works established in Staßfurt 1797

• Justus Von Liebeg discovered in 1840 that plants need potassium to grow

• 1861 world’s first potash plant at Staßfurt, boom starts in potash exploration

• Hermann Pinno explored the South Harz region in 1888, this led to a mining boom in the area.

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EAST GERMANY – WHERE POTASH MINING BEGAN

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Shafts were sunk in the South Harz area and the mines extracted a total of 181 Mt potash during their working lives. 1897 – 1991 Sondershausen 43 Mt 1902 - 1991 Bleicherode 33 Mt 1906 – 1990 Söllstedt 18 Mt 1909 – 1991 Volkenrode 27 Mt 1911 – 1993 Bischofferode 61 Mt

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LOCATION OF FORMER MINES
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PRODUCTION GREW STEADILY……

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Annual MOP extracted from South Harz area Tonnes 000’s

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Tonnes 000’s
3500
3350
2300
1300
1200
800
245
100 30
1912 1922 1932 1942 1952 1962 1972 1982 1992
…..and potash became the prime source of foreign exchange to the GDR
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MINE CLOSURES

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• The former mines were closed despite successful exploration programs which showed massive resources in adjacent properties.

• As was in the Soviet the mines were typical bloc, grossly over-manned,

• inefficient and not commercially viable at prevailing potash prices.

• • The mines and adjacent, explored properties were offered for sale, but were greatly over-valued. The explored areas with their granted licences remained held by the German Government.

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MINING LICENCE AREAS

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• Davenport bought mining licences for the explored areas in late 2017 and acquired the entire suite of exploration data from over 300 drillholes.

• • The licences are and valuable as are unique they

• in nature and no or

• perpetual require rent, royalty development commitment.

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LOCATION OF MINING LICENCES
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EXPLORATION LICENCE AREAS

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LOCATION OF EXPLORATION LICENCES

• Davenport bought mining licences for the explored areas in late 2017 and acquired the entire suite of exploration data from over 300 drillholes.

• The licences are and valuable as are unique they

• in nature and no or

• perpetual require rent, royalty development commitment.

• Davenport also holds exploration licences for two large areas, Küllstedt and Gräfentonna.

• total resource Davenport’s potash inventory currently stands at 5.3 billion tonnes, the largest in Western Europe.

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RESOURCE COMPARISON – OTHER POTASH PROJECTS

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• In addition to being the largest known potash resource in Western Europe, Davenport holds the world’s resource second-largest untapped compared with other known projects. • Further work within Davenport’s exploration licence areas could more yield significantly resources*.

BHP Jansen, courtesy BHP website

6600 5300 4900 4200 3200 3200 1600 1300 Total resource, million tonnes

• ASX announcement 22 May 2017

Source: Various broker notes

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FUNDAMENTALS WILL DRIVE VOLUME AND PRICE GROWTH

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Global MOP demand is expected to increase steadily to 88 Mt by 2033

Prices are forecast to rise over the next ten years. Long term price forecast for MOP, USD/tonne

Demand being driven by population increases and changing dietary demands

Source : Argus Media

Source: Argus

Source : Argus Media

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OHMGEBIRGE – THE PREFERRED STARTER PROJECT

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	Resource size (Mt)	Resource size (Mt)	Mineralisation	Production Kt/a	IRR Potential	NPV Potential	Opex Target	Capex Target
OHMGEBIRGE		325	Scoping Study 42 Mt K2O (grading 9.8% to 14.0% K2O) at relatively shallow depth.	500 MOP 1000 MOP	✔ ✔✔	✔ ✔✔	LOW	LOW V.LOW
NOHRA ELENDE		1700	Scoping Study 165Mt K2O (grading 9.4% to 14.2% K2O) with substantial additional minerals (Kieserite & NaCl) in 26m	575 MOP 640 MgSO4 + SOP potential	✔	✔	MED	AVG.
			seams.
MŰHLHAUSEN- KEULA		1130 (+1500)	Concept Study 125Mt K2O (grading 8.2% to 12.1% K2O), plus additional sulphate minerals (Kieserite, Kainite & Polyhalite)	500 MOP 1000 MOP + SOP potential	✔ ✔✔	✔ ✔✔	MED LOW	AVG. LOW
EBELEBEN		577	Concept Study 69 Mt K2O (grading 7.5% to 15.6% K2O).	500 MOP 1000 MOP	✔ ✔✔	✔ ✔✔	MED LOW	AVG. LOW
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EVOLUTION OF DAVENPORT’S POTASH PROJECTS

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JORC Davenport Inferred Massive Davenport announces resources Funds raised sulphate Scoping Incorporated exploration for drilling Drilling DFS declared by resource studies and listed on targets for twin holes at Micon for all permitting Completed announced at announced Küllstedt and ASX Ohmgebirge 3 mining Nohra-Elende Gräfentonna licences 2016 2017 2018 2019 2020 2021 2022 Scoping Drilling Ercosplan Davenport Completed studies Ohmgebirge completed. engaged to successfully bids Appication for completed selected as Measured plan drilling for mining licences mine on Küllstedt at Ohmgebirge, by K-Utec Davenport’s and DFS initiated Planned exploration Mühlhausen and for mining starter Indicated development permitting licence Ebeleben licence project resources areas announced

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• ATTRACTIVE NEAR-TERM CATALYSTS FOR DAVENPORT’S STOCK

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|||
|---|---|
|Months following Funding|Next Steps|
|Timeline subject to funding|
|0 5 10 15 20|
|DRILLING|
|Preparation for drilling|
|Conduct drilling|
|Drill 2 holes to upgrade resource|
|Assay|
|in Ohmgebirge area|
|Resource upgrade|
|Release preliminary studies|
|Feasibility|
|SOW/RFQ/Tender for DFS|
|Award DFS mandates|
|Environmental & Social Studies|
|Upgrade resource then|
|Met tests, design, costing|conduct development study|
|of first project to bankable DFS level|
|Mine Design, costing|
|Interim Report|
|Final DFS Report|
|MAJOR MILESTONES/CATALYSTS|Funding Drilling Resource Report DFS|
|14|
|© Davenport Resources Ltd.|www.davenportresources.com.au|

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FUND RAISING ACTIVITIES

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• Two-stage fund raising successfully concluded 26 November by joint lead managers in Australia and UK, raising $10m

• Purpose of funds to drill two holes at Ohmgebirge, upgrade the resource, announce scoping study results, general working capital

• Fund raising in two tranches :

• Tranche One (Unconditional Placement under ASX Listing Rules 7.1 & 7.1a), to complete December 2020

  • Tranche One already subscribed by commitment from an existing Shareholder

• Tranche Two (Conditional Placement) will require Shareholder approval at a General Meeting (TBA).

  • Offer oversubscribed by 60% and book closed within 24 hours

• Eligible Directors have confirmed their participation in Tranche 2, subject to shareholder approval

• Offer price OF $0.045 represents a 22.4% discount to current share price

• One attached option was offered for each two new shares purchased

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SOUTH HARZ PROJECTS ARE TIER ONE ASSETS

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1
One of the
largest
projects
globally in an
5 excellent 2
location
Compelling World-class
potential project with
returns and leading cost
cash flow potential and
generation scalability
4 3
Attractive
Favourable
potash
mining
fundamentals.
jurisdiction,
Scope for
supportive local
premium
authorities
products
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STRONG MANAGEMENT TEAM WITH DEEP POTASH TRACK RECORD

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Executive
Previous
experience:
Gold Fields, De Beers,
Cleveland Potash ,
Kenmare Resources,
South Boulder
Mines, Circum
Minerals
Dr Chris Gilchrist
Managing Director
Previous
experience:
VP Operations –
Allana Potash , VP
Exploration – Lydian
International
Jason Wilkinson Bob Van Der Laan
COO & Project Director
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Non Executive
Ian Farmer
Chairman
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Bob Van Der Laan CFO/Interim Exec Director

Hansjörg Plaggemars Non-Exec Director

Dr Reinout Koopmans Non-Exec Director

Rory Luff Non-Exec Director

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