TURNSTONE RESOURCES LTD — Investor Presentation 2019

Mar 18, 2019

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Corporate Presentation March 2019 BUILDING WESTERN EUROPE’S LARGEST POTASH INVENTORY

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www.davenportresources.com.au
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DISCLAIMER

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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, or of the information. The disclaims and accuracy, completeness, currency reliability Company excludes all liability (to the extent permitted by law) for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it.

Certain statements in this presentation are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward looking statements. These risks, uncertainties or assumptions could have financial effects or adversely affect the outcome of the plans and events described herein. Forward looking statements contained in this presentation regarding past or present activities should not be taken as representation that such activities will continue in the future. You should not place undue reliance on forward looking statements, which apply only as of the date of this presentation. Actual outcomes and results may differ materially from those expressed or implied by these forward looking statements.

This Presentation is not intended to be, and is not, a prospectus, offering memorandum or private placement memorandum. The information in this Presentation may not be complete and may be changed, modified or amended at any time by the Company, and is not intended to, and does not, constitute representations and warranties of the Company, or its directors, officers, employees, agents, representatives and affiliates. It is not intended to be the basis of any investment decision or any other risk evaluation and should not be relied upon and may not be considered as a recommendation by the Company or any other person in connection with an investment in the Company.

COMPETENT PERSON STATEMENTS

The South Harz Potash Project data in this report is based on information reviewed by Jason Wilkinson, a member of the Professional Member of the Institute of Materials, Minerals & Mining (MIMMM) and an employee of Davenport Resources Limited. Mr Wilkinson has sufficient experience that is relevant to the style of the mineralisation and the type of deposit under consideration and to the activity to which 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 Wilkinson has consented to the inclusion of this information in the form and context in which it appears in this report.

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resources in the heart of Germany.
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Page 4 DAVENPORT AT A GLANCE

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DAVENPORT’S DIRECTORS AND MANAGEMENT

Significant experience in exploration, development and management of potash projects

143.1 m Issued Shares Market Cap A$11.7 mill 34.4 m listed options 16.6 unlisted options 6.2m performance rights Cash A$1.7 m ASX Code: DAV Frankfurt Code: A2DWXX

12 month share price history A$

Pat McManus: Chairman. 30 of years mining experience, Managing Director of Parkway Minerals NL.

Dr Chris Gilchrist: Managing Director. A Mineral Engineer with more than 30 years of experience including; General Manager and Operations Director for Cleveland Potash Limited (UK), Non-Executive Director of South Boulder Mines (now Danakali Ltd) managing feasibility on the Colluli potash project in Eritrea. More recently as Project Manager and adviser to Circum Minerals on their Ethiopian potash project.

Dr Reinout Koopmans: NE Director. Dr Koopmans spent 15 years in investment banking, based in London. He was responsible globally for public equity raising for natural resource companies at Deutsche Bank and he led the European equity capital markets team at Jefferies International. In the 1990’s, Reinout was a management consultant with McKinsey & Co in Germany and South-East Asia.

Rory Luff: NE Director. Founder of BW Equities and East Exploration with more than 15 years’ experience in financial services.

Jason Wilkinson: Director. A with 25 of Project geologist years exploration experience including 7 years with Allana Potash and in country manager ICL in Ethiopia taking the project from start-up through to feasibility. Jason is based in Europe.

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GERMAN SOUTH HARZ REGION

• Davenport owns three perpetual mining licences and two exploration licences covering 659 km[2] in the South Harz potash basin in central Germany.

• This the cradle of from region represents potash mining

• where 181.7 Mt potash has been extracted since the 1890’s. All our licence areas surround former potash mines. Prior to reunification, it was the intention of the former state mining company to mine these areas.

• Many of the areas were drilled to a high standard in the 1960’s to 1980’s by the former East Germany state, allowing Davenport to convert these resources to JORC.

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THE PERPETUAL MINING LICENCES

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OHMGEBIRGE
MÜHLHAUSEN, KEULA AND
NOHRA-ELENDE
EBELEBEN
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THE EXPLORATION LICENCES

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KÜLLSTEDT
GRÄFENTONNA
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EBELEBEN JORC INFERRED RESOURCE 576 MILLION TONNES

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• April 2018 - JORC Inferred Resource of 576 million tonnes at 12.1% K2O (69.7 Mt of K2O) which comprises 324 Mt sylvinite at 15.6% K O and 253 Mt carnallitite at 7.5% K O. 2 2

• Extends from now closed Volkenroda mine to Davenport’s

• Gräfentonna Licence. Total mining licence area is 37 km[2] with 31 drill holes.

• Ebeleben could sustain a large, long-life mine on its own producing MOP.

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MÜHLHAUSEN, KEULA AND NOHRA-ELENDE JORC INFERRED RESOURCE 2.83 BILLION TONNES

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• JORC resource of 2.83 Billion tonnes containing 289.4 Mt K2O of mixed potash salts (ASX Announcements 16 October 2018 and 13 November 2018) within Mühlhausen-Keula-Nohra Elende area.

• Contains 935 Mt Sylvinite and 1,893 Mt Carnallitite. The Sylvinite is contained within a mixed chloride-sulphate matrix known as “Hartsalz”.

• Mühlhausen-Keula and of Küllstedt could a part support

• large, underground mine producing MOP and magnesium sulphates. The northern portion of Nohra-Elende could support a large, long-life MOP solution mine.

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OHMGEBIRGE

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Historic resource containing 149.1 Mt at 13.5% K2O containing 20.1 Mt K2O (ASX announcement 19[th] June 2018) 14 holes were drilled in this area by Former state potash company, the most recent in 1984. Orebody borders former Bleicherode -Sollstedt mines which yielded 171 Mt salts during 1902-1991

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EXPLORATION LICENCES

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LICENCE	GRANT DATE	TERM	EXPIRY	EXTENSION
KÜLLSTEDT	12 January2015	5years	12 January2020	3years
GRÄFENTONNA	12 January2015	5years	12 January2020	3years

• In addition to the three perpetual mining licences, Davenport holds two exploration licences in the South Harz area. • Davenport has detailed information from historic drillholes in these licence however a of the areas, only portion Küllstedt area has the required number of drillholes to support the definition of a JORC Inferred resource.

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KÜLLSTEDT AREA

JORC INFERRED RESOURCE 1.58 BILLION TONNES

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• JORC resource of 1.58 Billion tonnes containing 165 Mt K2O of mixed potash salts (ASX Announcement 19[th] February 2019) within Küllstedt area.

• Contains 333 Mt Sylvinite and 1,205 Mt Carnallitite. The Sylvinite is contained within a mixed chloride-sulphate matrix known as “Hartsalz” from which sulphate salts have previously been recovered.

• • Part of Küllstedt and Mühlhausen-Nohra could a support

• large mine producing MOP, potassium and magnesium sulphates.

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GRÄFENTONNA AREA

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• Was drilled between 1960-1985 by former East Germany state for both potash and hydrocarbon exploration.

• Potash and other salts were intersected in most holes. Historic drill data were used to calculate a resource target.

• • A resource target was declared by ERCOSPLAN comprising 2.7 – 3.4 billion tonnes grading 4.3 – 25.0% K2O (May 2017).

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TOTAL JORC INFERRED RESOURCES

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Page 14 TOTAL JO	RC INFERRE	D RESOURC	ES
HORIZON	TONNAGE(MT)	K2O %	K2O (MT)
EBELEBEN
Sylvinite	324	15.6	50
Carnallitite	253	7.5	19
MŰHLHAUSEN
KEULA
Sylvinite	834	12.1	101
Carnallitite	296	8.2	24
MŰHLHAUSEN
NOHRA-ELENDE
Sylvinite	101	14.2	14
Carnallitite	1,597	9.4	150
KŰLLSTEDT
Sylvinite	333	13.0	43
Carnallitite	1,205	10.1	122
TOTAL JORC
INFERRED	4,943	10.6	524
© Davenport Resources Ltd.		March 2019		www.davenportresources.com.au

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SUMMARY OF DAVENPORT’S MINING LICENCE ASSETS

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Mülhausen – Keula - Küllstedt

• 2.7 Bt resource containing 290 Mt K2O

• also containing sulphate potash minerals.

• • Potential for a large, long-life, conventional underground potash mine.

Ebeleben

• 577 Mt resource containing high-grade thick Sylvinite intersections.

• • Medium-sized, long life, conventional

• underground potash mine potential.

Nohra-Elende

• 1.7 Bt resource containing thick Carnallitite intersections (45 m).

• • Potential for large, long life, solution mine.

Ohmgebirge

• 150 Mt resource at relatively shallow depth. Potential for small-to-medium potash operation with lower capex.

• • May generate nearer-term production and cash flow.

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CURRENT EARLY STAGE PROJECTS

Company	Emmerson EML.LN	Davenport DAV.ASX
Location	Morocco	Germany
Interest	100%	100%
Meas & Ind Mt	-	-
Total Inf. Resource Mt	311	4,943*
Grade % K2O	10.2	10.6
Project Status	Exploration	Exploration
Cash USD	6.4 m	1.2 m
Market Cap. USD	24.0 m**	8.24 m**

• Includes 1.6 Bt sylvinite @ 13.1% K2O

• ** Market cap as of 20 February 2019 Source of information www.emmersonplc.com

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PROGRESSING FROM EXPLORATION TO EXECUTION

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Case Study: Highfield Resources (HFR.ASX)
Share Price
A$ 2.5
Positive Update
Margin Forecast
2.0
Financing/Permitting/Engineering
1.5
Maiden
Resource
Cornerstone
1.0 Investor
Asset
Acquisition
0.5
DFS
Completed
0.0
2012 2013 2014 2015 2016 2017 2018
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DAVENPORT’S FAST-TRACK PATH TO PERMITTING

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Regional
Project Description
Planning
Prelim. Impact Analysis
Application
Economic
Mining Operating TLBA Final Operating Plan
Exploration Studies Approval
Licence Plan Application
Public
ESIA
Meetings
ESIA Phase 12-18 months Final Approval Phase 12-24 months
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DFS 12-18 months Front End Engineering Financing Execution

DFS 12-18 months Concurrent project activities Front End Engineering Financing Execution With perpetual mining licences already secured, Davenport enters the process at an advanced stage. Permitting process runs in parallel with other project activities.

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Page 19 POTASH MARKET

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•
As global population increases, the available arable land per
capita will continue to decrease.
•
Potash demand and prices are rising and the trend is forecast
to continue.
•
`
2019
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FAST TRACK SCHEDULE

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2018
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2019
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•
JORC Resource for Ebeleben
•
JORC Resource for Mühlhausen areas
•
Identify locations for twin drillholes
•
Conduct scoping studies for
at least three sub-projects
•
Drill twin holes to satisfy Küllstedt
licence obligations and verify historic
data.
•
Elevate to JORC Indicated status
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• Pending funding

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A COMPELLING BUSINESS CASE

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• Large high quality resources in historic potash region

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• Resources support long-life project options > 50 years

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• Low-risk jurisdiction

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• Regional government supportive of job creation projects

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• Proximity to markets (Europe still a net potash importer)

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• Low infrastructure requirements (power, water, gas, rail)

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• Experienced management team. Key staff based in Europe

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These projects tick all the boxes

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BUILDING WESTERN EUROPE’S LARGEST POTASH INVENTORY

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INVESTOR & MEDIA ENQUIRIES

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