TURNSTONE RESOURCES LTD — Investor Presentation 2020

Jun 15, 2020

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ASX ANNOUNCEMENT 16 June 2020

INVESTOR PRESENTATION

Davenport Resources (ASX: DAV) (“Davenport” or “the Company”) is pleased to provide shareholders with an updated investor presentation which will be used for the Company’s upcoming investor webinar to be held on Thursday, 18 June 2020 at 2:30pm WST.

Investors are invited to send questions prior to the webinar to nathan.ryan@nwrcommunications.com.au

Register for the investor webinar at the link below:

https://us02web.zoom.us/webinar/register/WN_zpSwEkfER9eQdFJ6y0dbcA

After registering, you will receive a confirmation email containing information about joining the webinar.

To join the webinar via telephone, please use one of the following numbers and enter the Webinar ID: 830 0815 3737

For higher quality, dial a number based on your current location:

Australia

+61 861 193 900 or +61 8 7150 1149 or +61 2 8015 6011 or +61 3 7018 2005 or +61 731 853 730

International numbers available: https://us02web.zoom.us/u/kvsfa5uem

A recording will be made available shortly after the conclusion of the webinar at the same link.

This announcement has been approved by the Interim Non-Executive Chair and Managing Director of the Company.

Investor & Media Enquiries

Dr Reinout Koopmans

Intermin Non-Executive Chair Davenport Resources Ltd +44 7810 056502 rkoopmans@davenportresources.com.au

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

CONTACT DETAILS W: davenportresources.com.au E: info@davenportresources.com.au P: +61 (08) 6145 0291

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

172.5 M Ordinary Shares 13.4 M Unlisted Options 46.2 M Listed Options 5.9 M Performance Rights

Level 1, 675 Murray Street, West Perth WA 6005 PO Box 1088 - West Perth WA 6872

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SHAREHOLDER WEBINAR JUNE 2020 DEVELOPING WESTERN EUROPE’S LARGEST POTASH INVENTORY

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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, 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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DAVENPORT: SIGNIFICANT UPSIDE POTENTIAL

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Davenport has assembled a portfolio of attractive potash projects with world-class potential

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Potash market
Davenport is Tier 1 location in South Backed by strategic European-based
accelerating with
developing Western Harz, Germany has European fund management team
population growth to
Europe’s largest historically produced specialising in mineral with significant
drive price and
resources
potash inventory over 180Mt potash potash experience
volume increases
Davenport has completed scoping studies and is in discussion with potential
project partners
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POTASH CRITICAL IN SOLVING TWO KEY GLOBAL ISSUES

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1. POPULATION GROWTH

2. LAND AVAILABILITY

The world’s population is set to increase to 9 billion by 2050, massively increasing food demand

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Potash has the capabilities to service the
rapidly growing need for quality crops
Increasing living
Majority of population
standards driving
growth to come from
demand for nutrient-
developing nations
rich crops
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Arable land per person continues to dramatically decrease as food demand increases 4,500 2,400 1,800 1960 2005 2050 Arable land per person will only by 1,800m[2 ] by 2050.* Potash will be the key Developing markets to get more crops from are yet to fully utilise less land the potential of potash

*Source: Argus

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ATTRACTIVE FUNDAMENTALS DRIVING VOLUME GROWTH AND PRICE INCREASES

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Global potash (MOP) demand is expected to increase steadily to 88 Mt by 2033 Demand being driven by population increases and changing dietary demands

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Prices are forecast to be upheld at current levels and rise over the next ten years. Significant growth will be seen from developing nations

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Source: Argus

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WESTERN EUROPE: A SIGNIFICANT NET IMPORTER OF POTASH

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Global Potash Production and Sales

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22.4Mt
10.7Mt
12.2Mt
16.8Mt
2.7Mt
5Mt 7.5Mt
11.2Mt
3.8Mt
5.7Mt 7Mt
Global Supply (Production)
12Mt Global Demand (Sales)
Mt %
Country Mt %
Region
Canada 22.4 34.8
East Asia (China) 16.8 25.5
Belarus 12.2 19.0
South America 12.0 18.2
Russia 10.7 17.0
North America 11.2 17.0
China 7.5 11.6
SE Asia 7.0 10.6
Israel 3.8 6.0
S Asia (India) 5.7 8.6
Western 2.7 4.1
Western 5.0 7.6
Europe
Europe
Rest of World 5.1 7.9
Rest of World 8.3 12.6
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Current production is heavily concentrated in Canada Western Europe remains a significant net importer

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SOUTH HARZ: A SIGNIFICANT POTASH MINING AREA IN CLOSE PROXIMITY TO EUROPEAN END MARKETS

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• South Harz region has a long history of potash production

• 180 Mt potash has been mined since the 1890’s

• All of Davenport’s licence areas surround former potash mines.

• Former GDR state mining company intended to mine our areas in the 1990

• Significant infrastructure and brownfield sites available, including water, gas and rail.

• Many of our deposits were drilled to a high standard before German reunification

• Resources were classified at the time as reserves under Russian resource classification

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ATTRACTIVE PROJECTS WITH WORLD-CLASS POTENTIAL

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DAVENPORT controls JORC Inferred Resources of over 5.3 billion tonnes @ 10.8% K2O	DAVENPORT’S stand alone projects	Resource size (Mt)	World-class Potential	Scoping Study Completed	Licence
	1. NOHRA-ELENDE		Total license area:
	Potential for large, long-life mine	1700		659 km2	Perpetual Mining
	2. EBELEBEN
	Medium-sized, long life, conventional underground potash mine potential	577			Perpetual Mining
	3. OHMGEBIRGE Potential for small-to-medium potash mine with limited capex.	325			Perpetual Mining
	4. MŰHLHAUSEN-KEULA
	Potential for a long life underground mine.	2700			Perpetual Mining
	5. KÜLLSTEDT & GRAFENTONNA
	Exploration target	6800-8500			Exploration
www.davenportresources.com.au © Davenport Resources Ltd.					8

• OHMGEBIRGE PROJECT WITH NEAR-TERM PRODUCTION POTENTIAL

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Feasibility
Definition of Incorporation of
Studies
JORC Project partners Construction
Resources
2022
2017 2019 Late-2020
Production
2018 2021
Early-2020 2022-2024
License Completion of Confirmatory Financing
acquisition Economic Studies Drilling
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The Ohmgebirge Project requires limited capex investment and is the company’s quickest-to-production opportunity, supporting its drive to positive cash flow

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BOARD AND MANAGEMENT WITH SIGNIFICANT POTASH EXPERIENCE

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Dr Reinout Koopmans Interim Chairman

Dr Chris Gilchrist Managing Director

Pat McManus Non-Exec Director

Rory Luff Non-Exec Director

Hansjörg Plaggemars Non-Exec 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.

A Mineral Engineer with more than 30 of years 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 as recently Project Manager and adviser to Circum Minerals on their Ethiopian potash project.

Mineral processing engineer with over 30 of years mining experience.

Previously Managing Director of Parkway Minerals NL, MD of Potash West and served in senior positions with Iluka Minerals.

Founder of BW Equities and East with more Exploration than 15 years’ experience in financial services

Mr is an Plaggemars experienced company director with a deep knowledge of corporate finance, strategy and governance. He has served on numerous boards in a variety of industries which includes Delphi Unternehmensberatung who are a substantial shareholder in Davenport. Mr Plaggemars is resident in Germany and has deep experience of corporate and capital markets in Europe.

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STRONG RECENT MOMENTUM IN VALUE CREATION

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Progress to date

Near-term milestones

	✓Created JORC Inferred Resource for Ebeleben,
	Muhlhausen/Kullstedt, Ohmgebirge and Nohra-Elende	• Commence confirmatory drilling in Ohmgebirge (Q4 2020)
Operational	✓Completed scoping studies for Nohra Elende, Mulhausen-Keula and Ohmgebirge	• Commence Feasibility Study for Ohmgebirge in Q1 2021 • Commence confirmatory drilling and feasibility for other
	✓Commenced preparation for confirmatory drilling in	projects depending on strategic partners (1H 2021)
	Ohmgebirge
	✓Attracted several sizeable shareholders (Lions Bay,
	Delphi)	• Launch formal process to attract strategic partner led by
Financing	✓Appointed Cenkos as UK/European corporate broker ✓Successfully raised several rounds of financing with	Deloitte (Q3) • Complete partnership process by Q4
	strong support from large shareholders and board
	members
	✓Actively engaged with a number of interested strategic
	parties
Corporate	✓Appointed Deloitte Corporate Finance as financial advisor ✓Made changes to the Board and attracted new NEDs	• Appoint permanent Chairman of the Board
	✓Changed German entity name to SudHarz Kali GmbH
© Davenport Resources Ltd.	www.davenportresources.com.au	11

CORPORATE OVERVIEW AND SHARE PURCHASE PLAN KEY INFORMATION

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CAPITAL STRUCTURE
Shares on issue	172.8m
Options	59.6m
Share price	$0.052
Market cap (fully diluted)	$8.7m
Cash as at 31st March 2020	$0.21m
SUBSTANTIAL HOLDERS	%
Parkway Minerals	20.8%
Delphi Unternehmenberatung AG	9.15%
Lions Bay Capital Inc	6.06%

SPP
Target amount to be raised	$750k
Max. number of shares per holder	750,000
Issue price	$0.04
Discount	30%
Minimum parcel value	$1k

KEY DATES
Opening Date	15 June
Closing Date	29 June
Issue of Securities	1 July
Dispatch Holding Statements	2 July
Shares commence trading on ASX	2 July

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• A COMPELLING OPPORTUNITY TO PARTICIPATE IN SPP

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• Davenport’s potash strategy presents an attractive investment opportunity as the

• growing world population demands an increasing amount of high-quality food products

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Up to 750,000 shares per
Portfolio of 4 high-quality projects
holder
5.3bt JORC Resources support long-life
Issue price at substantial discount
projects of over 50 years
Experienced management team. Key staff
Opportunity to increase existing
based in Europe. Directors taking up
holding substantially at low cost
entitlements during SPP.
Proceeds will be used to engage a
strategic partner for the development Strong potash market fundamentals
of our world-class assets
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TOTAL JORC INFERRED RESOURCES

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HORIZON	TONNAGE (MT)	K2O %	K2O (MT)
EBELEBEN
Sylvinite	324	15.6	50
Carnallitite	253	7.5	19
MŰHLHAUSEN KEULA*
Sylvinite	1167	12.3	144
Carnallitite	1501	9.7	146
NOHRA-ELENDE
Sylvinite	101	14.2	14
Carnallitite	1,597	9.4	150
OHMGEBIRGE
Sylvinite	261	14.0	36
Carnallitite	64	9.8	6
TOTAL JORC INFERRED	5,268	10.8	567
*Includes part of Küllstedt East.
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