Session 1 Scott Morrison 1

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1 The Beginning Building the Refinery Scott Morrison Chairman of the Board Singapore, June 26 th 2014 or rather A New Beginning, as Singapore has a long history in physical gold trading and processing Session 1 Scott Morrison 1

2 Courtesy of goldbarsworldwide.com It all began in the 1970 s Rothschild and OCBC JV as well as UOB & OUB started physical gold trading in the early 1970 s, soon followed by Republic National Bank Selling to local jewelry manufacturers and bullion dealers as well as Indonesia Degussa Singapore became GDL in 1978 producing 1kg and 10 tolas bars out of jewelry scrap and upgraded London Good Delivery bars with a capacity of ca. 4t/mo Reached a very large scale in the early 1980 s The market peaked in 1980 as gold price reached 850 USD/ozt with an estimated sales volume of over 200 tons/a in Singapore that year Late 1980 s were less active but supported by the liberalization of gold trade in Thailand Session 1 Scott Morrison 2

3 to a relative slow down at the end of 1990 s The 1990 s started well with gold sales supported by the strong growth of regional economies GST at 3% was introduced in 1994 together with a bonded warehouse system for gold which complicated transactions and financing The Asian Financial Crisis in 1997 caused major dishoarding in the region and initiated a multi-year downturn Degussa Singapore fully closed in 1998 Until The Straits Times, March 2012 Business Times, November 2012 September 11, 2001 events re-activated the appetite for gold and the offshore market grew significantly in the new millennia Following an initiative of IE Singapore, GST was lifted on Investment Precious Metal and a new Approved Refiner and Consolidator Scheme was implemented in 2012 Metalor announced its intent to build a refinery late 2012 Session 1 Scott Morrison 3

4 Why build a new refinery in Singapore? Gold Mining and Consumption in South East Asia Gold in South East Asia 2013 Mining production: tons Consumption: tons Malaysia Thailand 3% 3% Laos 4% Mining Vietnam 3% Consumption Myanmar Singapore 1% Vietnam 6% 5% Indonesia 18% Philippine s 25% Indonesia 62% Malaysia 29% Thailand 41% Source: GFMS Gold Survey 2014 Session 1 Scott Morrison 4

5 GDL Refiners around South East Asia Metalor Hong Kong International markets Heraeus Hong Kong International markets Central Bank of Philippines Domestic market only (Philippines) Pt Antam - Logam Mulia Mostly domestic market (Indonesia) The Perth Mint International markets Metalor s Global Refining Footprint Suzhou (China) Employees: 27 Products: investment bars, bullion North Attleboro (US) Marin (CH) Hong Kong (China) Singapore Employees: 89 Products: bars, bullion Employees: 171 Products: bars, invest. bars, bullion, crystal, powders New production site Employees: 41 Products: bars, bullion Production Evaluation centers Session 1 Scott Morrison 5

6 Key Rationales for Investment No globally oriented LBMA good delivery refinery in South East Asia Large deficit in gold supply to South East Asia region (even before last year!) Location between the #1 and #2 largest global gold consumers (China and India) Good strategic fit in a favorable business environment with an acceptable rate of return What has been achieved so far? Session 1 Scott Morrison 6

7 New Metalor Singapore Facility m 2 operations in Jurong industrial area (Singapore West) 36 employees and growing Operational since May 2014 for - Evaluation - Refining - Bar Production Working capital secured Materials Accepted All gold & silver bullion products All mining dorés All jewelry scraps All fusible industrial scraps Session 1 Scott Morrison 7

8 Evaluation Capabilities Evaluation furnaces from 10kg up to 300 kg melts Same day pre-assay analysis Full Assay Lab for - Gold scraps (15% to 99.99%) - Silver scraps - Platinum group metals Refining Grades and Capacity Scraps Processed Gold scraps above 70% gold By the end of 2014, gold scraps above 15% gold Capacity (1 shift) 1.5 tons of scraps per week By the end of 2014, 2 tons of scrap per week Session 1 Scott Morrison 8

9 Products 2 tons/wk kilo bars London Good Delivery bars Coming soon (Q3 2014) 99.5 kilo bars 100g cast bars Certifications In the last stage of certification Approved Refiner Inland Revenue Authority of Singapore Session 1 Scott Morrison 9

10 And all of this would not have been possible without the support of Session 1 Scott Morrison 10

11 We are open for business! Session 1 Scott Morrison 11