TURNSTONE RESOURCES LTD — Investor Presentation 2020

Mar 23, 2020

March 2020

Davenport Resources Ltd

ASX Announcement 24 March 2020

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COMPANY DETAILS Davenport Resources Limited ABN:64 153 414 852 ASX CODE:DAV ASX CODE (Options):DAVO FRANKFURT CODE:A2DWXX PRINCIPAL AND REGISTERED OFFICE (& Postal Address) Davenport Resources Limited Level 1, 675 Murray Street, West Perth WA 6005 PO Box 1088 West Perth WA 6872 W: www.davenportresources.com.au E:info@davenportresources.com.au P:+61 (08) 9481 0389 Capital Structure 166.8 M Ordinary Shares 10.5 M Unlisted Options 46.2 M Listed Options 9.1M Performance Rights BOARD OF DIRECTORS Patrick McManus (Non-Executive Chairman) Dr Chris Gilchrist (Managing Director) Rory Luff (Non-Executive Director) Dr Reinout Koopmans (Non-Executive Director) Hansjörg Plaggemars (Non-Executive Director)		Davenport Corporate Presentation Davenport Resources Ltd (ASX: DAV, “Davenport”, “The Company”) is pleased to announce an updated corporate presentation. To view the presentation, visit the link: https://davenportresources.com.au/presentations/ NVESTOR & MEDIA ENQUIRIES Dr Chris Gilchrist - Managing Director Nathan Ryan Davenport Resources Ltd NWR Communications +353 41 988 3409 +61 420 582 887 cgilchrist@davenportresources.com.au nathan.ryan@nwrcommunications.com.au

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Corporate Presentation March 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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INTRODUCING DAVENPORT

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Davenport has assembled a potash portfolio comprising several, stand-alone
projects on a long-established potash field based in the heart of Germany.
Davenport is Tier 1 location in Potash market Backed by European-based
developing
South Harz, accelerating with strategic management team
Europe’s largest
Germany has population growth to European fund with significant
potash inventory
historically drive price and specialising in potash experience
produced over volume increases mineral resources
180Mt potash
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POTASH OVERVIEW

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Potash is a key source of Potassium: One of the three primary macronutrients

Potassium (K)

Potassium, Nitrogen and Phosphate are necessary for plant growth and cannot be substituted

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H O
O + CO
2
2 2
Secondary Micronutrients
Primary nutrients
nutrients
B Zn Fe
Mg Ca S
P K N
Cu Mg Mo Cl
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• Improves plant’s durability and resistance to drought, disease, weeds, parasites and cold weather

• Potassium deficient soil is common in many countries

• Phosphate (P)

• • Plays a key role in adequate root development and photosynthesis process

• Helps plants resist drought

Nitrogen (N)

• Promotes protein formation

• Determines plant’s growth, vigour, colour and yield

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TYPES OF POTASH

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Davenport is focused on MOP, SOP and Magnesium Sulphate

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Muriate of Potash (“MOP”) Sulphate of Potash (“SOP”)
•
Most common form of potassium fertilizer
•
SOP SOPM NOP 50% K2O and 17.5% sulphur content
1.3 Mt
6.0 Mt 1.4 Mt
• Also known as KCl (Potassium Chloride) 60% K O 2% •
2 Used principally for specialty crops: fruits,
10% 2%
and 46% chloride (Cl) content vegetables, nuts, berries, beans, cocoa and
potatoes
•
Is supplied in either powder or granule form for
•
Shortage of SOP is a growing issue
fertilizer manufacturing
Potassium
Fertilizer
Market
Potassium Nitrate (“NOP”) Sulphate of Potash Magnesia (“SOPM”)
•
Form of fertilizer that provides potassium •
Special form of fertilizer used as a source of
and nitrogen
potassium, sulphur and magnesium
•
44% K2O content and 13% nitrogen MOP • 28% K2O, 10% MgO, 16% sulphur content
60.0 Mt
•
Used for crops that are sensitive to chloride
86% •
Used for high-value crops
and require additional nitrogen
DAVENPORT HAS JORC RESOURCES OF OVER 5.3B TONNES @ 10.8% K O
2
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ONE SOLUTION FOR TWO SIGNIFICANT GLOBAL ISSUES

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POPULATION GROWTH

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 developing nations

Increasing living standards driving demand for nutrient-rich crops

LAND AVAILABILITY

Arable land per person continues to dramatically decrease as food demand increases

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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FUNDAMENTALS TO DRIVE DEMAND AND PRICE INCREASE

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Global 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 both Europe and nearby developing nations

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Source: Argus

GLOBAL PRODUCTION AND SALES 2018

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22.4Mt
10.7Mt
12.2Mt
16.8Mt
2.7Mt
5Mt 7.5Mt
11.2Mt
3.8Mt
5.7Mt 7Mt
12Mt
Country Production Mt Percentage
Canada 22.4 34.8
Belarus 12.2 19.0
Russia 10.7 17.0
China 7.5 11.6
Israel 3.8 6.0
Germany 2.7 4.1
Rest of World 5.1 7.9
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Current production is heavily concentrated in Canada

Western Europe remains a significant net importer

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South Harz located near key European and developing agricultural markets

Region East Asia (China)	Region East Asia (China)	Sales Mt 16.8	Percentage 25.5
	South America	12.0	18.2
	North America	11.2	17.0
	SE Asia	7.0	10.6
	S Asia (India)	5.7	8.6
	Western Europe Rest of World	5.0 8.3	7.6 12.6

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BOARD AND MANAGEMENT SPECIALISING IN POTASH

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Pat McManus Dr Chris Gilchrist Dr Reinout Chairman Managing Director Koopmans Non-Exec Director

Mineral processing engineer A Mineral Engineer with with over 40 years of mining more than 30 years of experience. experience including; General Manager and Non-Executive Director of Operations Director for Parkway Minerals NL, Cleveland Potash Limited previously MD of Potash (UK), Non-Executive Director West and served in senior of South Boulder Mines positions with Iluka (now Danakali Ltd) Minerals. 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 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 Hansjörg Plaggemars Non-Exec Director Non-Exec Director

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

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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HISTORICALLY SIGNIFICANT POTASH PRODUCING REGION

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

South Harz has a long history of potash production with 181.7 Mt potash mined since the 1890’s. All of Davenport’s licence areas surround former potash mines. Prior to reunification, it was the intention of the former state mining company to mine these areas but it was never followed through.

Many of the areas were drilled to a high standard in the 1960’s to 1980’s by the former East German state. There is significant infrastructure in the area, including water, gas and rail.

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SOUTH HARZ POTASH PROJECTS

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South Harz Projects comprise of a portfolio of 3 Mining Licenses and 2 Exploration Licenses. Davenport now controls JORC Inferred Resources of over 5.3 billion tonnes @ 10.8% K O 2

Ebeleben

Mülhausen – Keula – Küllstedt

• 2.7 Bt resource containing 290 Mt K2O also containing sulphate potash minerals.

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

• Potential for a large, long-life, conventional .

• underground potash mine

• Medium-sized, long life, conventional underground potash mine potential.

Nohra-Elende

Ohmgebirge

• 1.7 Bt resource containing thick Carnallitite intersections

• 325 Mt resource at relatively shallow depth.

• Potential for large, long life mine. Gräfentonna

• Potential for potash operation with lower capex.

• May generate nearer-term production and cash flow.

• Exploration target of 2.7-3.4 billion tonnes to 25% K O 2

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EXCELLENT SCOPING STUDIES POINT TO OHMGEBIRGE AS THE STARTER PROJECT

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Davenport has completed preliminary scoping studies for the Mulhausen-Keula Nohra-Elende and Ohmgebirge licence areas with potash consultancy K-Utec.

Studies concluded proposed development of all areas was technically viable and justify Davenport committing to progress the projects

A scoping study for Nohra-Elende was completed in January 2020.

The scoping studies provide important economic data for use in further studies and in negotiations with potential project partners.

A FEASIBILITY STUDY FOR OHMGEBIRGE WILL COMMENCE SHORTLY TO CONFIRM POTENTIAL FOR RAPID START-UP

SCOPING STUDY SUPPORTS POTENTIAL FOR LOW-COST, LONG-LIFE POTASH PROJECTS

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DAVENPORT’S FAST-TRACK PATH TO PERMITTING
With perpetual mining licences already secured, Davenport enters the process at an advanced
stage.
Project Description & Regional Planning
Preliminary Impact Analysis Application
Economic TLBA Final Operating
Mining Licence Operating Plan Approval
Exploration
Studies Application Plan
Public
ESIA
Meetings
Permitting ESIA Phase 12-18 months Final Approval Phase 12-24 months
timeline
Concurrent project DFS 12-18 months Front End Engineering Financing Execution
activities
Permitting process runs in parallel with other project activities.
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TIMELINE TO PRODUCTION

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Definition of Incorporation of Project
JORC Project partners financing
Resources
2021-2023
2017 2019 Late-2020
Production
2018 Early-2020 2021
License Completion of Completion of Construction
acquisition Economic Studies Feasibility studies
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A COMPELLING EUROPEAN POTASH OPPORTUNITY 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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High-quality projects in historic potash
Low-risk jurisdiction in Germany
region
Regional government supportive of job 5.3bt JORC Resources support long-life
50+
creation projects project of over 50 years
Experienced management team. Key staff
Proximity to Europe and Africa
based in Europe
Potash market fundamentals continue Close to existing power, water, gas and rail
to strengthen infrastructure
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CORPORATE OVERVIEW

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CAPITAL STRUCTURE
Shares on issue	166.76m
Options	56.68m
Share price	$0.036
Market cap (fully diluted)	$6.0m
Cash as at 31stDec 2019	$0.48m
SUBSTANTIAL HOLDERS	%
Parkway Minerals	20.6%
Delphi Unternehmenberatung AG	9.6%
Lufgan Nominees	8.7%
Lions Bay Capital Inc	6.0%

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INVESTOR & MEDIA ENQUIRIES

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

Nathan Ryan

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

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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	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
OHMGEBIRGE
Sylvinite	261	14.0	36
Carnallitite	64	9.8	6
TOTAL JORC INFERRED	5,268	10.8	567
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