Disclaimer. Developing the next major nickel project in Brazil AIM: HZM TSX: HZM

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1 Investor Presentation Q Investor Presentation Q3 2012

2 Disclaimer This document, and the information contained in this document, is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose. In particular, the existence of a heads of terms or any other agreement between Horizonte Minerals plc (the Company ), must be kept confidential and may not be disclosed, or referred to, by you to any person or body without exception. Neither this document nor any copy of it (or any part of it) may be sent to or taken into the United States, Australia, Republic of South Africa or Japan (or any of their respective territories or possessions, or to any resident thereof or any other corporation, partnership or other such entity created or organised under the law thereof), nor may it be distributed to or for the account or on behalf of any US person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). This document may not be sent or taken into Canada in contravention of the securities laws, regulations or rules of any province or territory of Canada. The distribution of this presentation in other jurisdictions may also be restricted by law and persons into whose possession this presentation comes (or a copy hereof) should inform themselves about, and observe, any such restriction. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdiction. This document does not constitute or form any part of any offer or invitation or other solicitation or recommendation to purchase any securities and contains information designed only to provide a broad overview for discussion purposes. As such, all information and research material provided herein is subject to change and this document does not purport to provide a complete description of the investment opportunity. All expressions of opinion are subject to change without notice and do not constitute advice and should not be relied upon. The Company does not undertake any obligation to update or revise the information in or contents of this document. Recipients of this document who may consider acquiring shares in the Company are reminded that any such acquisition should not be made on the basis of the information contained in this document. This document is being distributed in the UK only to, and is directed only at persons who are (i) investment professionals as defined in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 ( the Promotion Order ) or (ii) are persons of a kind described in Article 49(2) of the Promotion Order or (iii) are persons to whom this document may otherwise lawfully be issued or passed on (all such persons together being referred to as relevant persons ). Any person who is not a Relevant Person should not act or rely on this presentation or any of its contents and any investment or investment activity to which it relates will only be available to Relevant Persons. Any person who is unsure of their position should seek independent advice. The Company nor its employees, advisers or representatives nor any other person makes any guarantee, representation, undertaking or warranty, express or implied as to the accuracy, completeness, correctness or fairness of the information and opinions contained in this document (or as to the reasonableness of any assumptions on which any of the same is based or the use of any of the same), nor does the Company nor its employees, advisers or representatives nor any other person accept any responsibility or liability whatsoever for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection therewith. 2

3 Horizonte is a well funded leading AIM and TSX-quoted resources company focussed in Brazil. It is developing the wholly-owned Araguaia nickel project, a world leading asset in terms of size and grade. The Company is in the final stages of a Pre-Feasibility Study planned for completion in Q Horizonte has a clear path to generate significant value uplift for shareholders over the next 6 to 24 months. 3

4 Highlights 100% ownership of the Araguaia Nickel Project located south of the producing Carajás mineral district, Brazil significant evolution over the past 10 years Global resource of >100 million tonnes defined potential for >20 year mine life at Araguaia Pre-Feasibility Study ( PFS ) work has been completed and is running on budget and on schedule for delivery Q Two processing plant options: Option A: Twin line MTPA Option B: Single line 900 KTPA Well funded circa 4.5 million cash plus potential royalty payment Cornerstone investors Teck Resources 42.5%, Henderson Global Investors 15.1%, Anglo Pacific Group 9.2% and LGA 7.5% Short and mid term value drivers as Araguaia is developed as Brazil s next major nickel project The ban on DSO nickel ore from Indonesia has the potential to change the current nickel markets 4

5 Key Data January 2014* Ticker HZM Cash c. 4.5 M Share Price (AIM) 5.6p Market cap (AIM) M Teck Resources 42.5% Henderson 15.1% Anglo Pacific Group 9.2% Quantom Holdings 7.5% Richards Griffiths 4.1% Other 21.6% Share Price (TSX) 0.11c Market Cap (TSX) $44.1 M Shares in Issue AIM million 52 week trading AIM 5.5p p *13 January

6 Management Team Board David J. Hall, Msc, EuroGeol Executive Chairman Jeremy J. Martin, Msc, ASCM Chief Executive Officer Owen Bavinton Non Executive Director Alexander N. Christopher Non Executive Director William Fisher P.Geo Non Executive Director Allan M. Walker, MA Non Executive Director 30 years in exploration & development on projects and mines in over 50 countries. Extensive South America and Brazil experience. All aspects of project development with majors including Minorco, AngloAmerican & AngloGold. Founded Horizonte with JM Extensive exploration experience in South America, the Caribbean. Involved in the formation of a number of AIM and TSX listed companies and has completed several high value mineral project transactions. Previously Group Head of Exploration and Geology at Anglo American, overseeing and advising on acquisitions and exploration programmes of Anglo s key projects, including Barro Alto and Morro sem Bone nickel projects, both in Brazil. Over 25 years experience in mineral exploration and mining. His is currently Vice President of Exploration for Teck, having previously been General Manager New Ventures and for the last 10 years has been focussed on the junior mining sector. Extensive industry experience in both exploration and mining positions worldwide, including Karmin Exploration, Boliden AB, GlobeStar Mining and Aurelian Resources and is currently on the Boards of PC Gold, Goldquest and Treasury Metals. Over 25 years of energy & natural resource banking experience, focussed in Latin America. Currently running a private Clean Energy fund and previously ran the energy and project finance groups for Standard Bank and CSFB Garantia. Senior Management Antonio José de Almeida P.Geo General Manager in Brazil F. Roger Billington P. Geo Technical Director Nickel Jeffrey Karoly BSc ACA Chief Financial Officer Dr Philip Mackey Senior Metallurgical Advisor Mr de Almeida is a Brazilian national and qualified geologist with over 30 years of experience in mineral exploration. Has held a number of senior positions with both major and junior mining groups including country manager for Phelps Dodge. Ex head of Falconbridge nickel laterite exploration worldwide. Also senior roles in the discovery and evaluation of the Koniambo nickel laterite deposit (New Caledonia) and the GlobeStar nickel laterite deposit (Dominican Republic). Mr Karoly has degree in geology and is a Chartered Accountant with over 15 years experience in the mining industry. He was with Anglo American for 11 years and previously CFO of South American Ferro Metals which in 2010 listed on the ASX. Consulting Metallurgical Engineer with 40+ years experience in non-ferrous metals processing including a focus on nickel laterite processing. Previously at Falconbridge and Xstrata. 6

7 Nickel Uses Stainless Steel (typically 8-12% Ni) Construction: strong, corrosionresistant structural and architectural components; High efficiency heating systems; Food and beverage storage and production; Surgical Instruments Electronics Critical component of rechargeable batteries including hybrid cars; Layering of hard drives; Electromagnetic shielding: aircraft / hospitals Transport Nickel alloys in jet engines and airframes; Batteries in hybrid cars; Passenger rail cars; High strength nickel cobalt steels in gears and drives Energy Coal scrubbing systems Gearing in wind turbines (500 kg Ni per turbine) Power station turbine blades and pipework 7

8 Indonesia & Effect on Markets Based on news reports, Indonesia has banned ALL nickel ore exports with no exceptions (including state producer PT Antam) removing 18-25% of world nickel supply (Indonesian ore exports in 2013 estimated to be >50 Mt containing ~600kt of nickel) Approximately 3/4 of Chinese NPI production is sourced from Indonesian ore and the export ban will also severely impact nickel producers in Ukraine, Australia, and Japan China has limited ability to replace Indonesian ore and there is no certainty that significant NPI/FeNi capacity will be built in Indonesia in the near future There are very limited sources of high-grade (1.8%+) laterite ores outside Indonesia Mt of ore stocks to be fully consumed to sustain 2014 Chinese NPI production at kt A decline in Chinese NPI production to kt in 2015 will lead to market deficits of kt that can consume ALL LME inventory by the 2nd half of 2015 Source RNC, CRU & Glencore 8

9 Why Brazil / Nickel Brazilian iron ore projects will generate US$45 billion by 2015 Brazil has established infrastructure Excellent record of recent nickel, iron ore and copper discoveries - many areas of the country are largely under explored upside potential With an output of more than 85,000 t of nickel in 2012, Brazil is currently a global top 10 producer of the base metal It is predicted that nickel production in Brazil will grow by around 40% by

10 Pára & Carajás Brazil NE region of Brazil has seen rapid development over the past ten years including the building of ports, railways, refineries and mines Principle new mining projects include Vale s S11D iron project and Votorantim s Rondon do Pára and Hydro s Alunnorte Projects Vale s S11D iron project cost US$19.7 billion and produces circa 90Mtpa with total Vale production in Pára up to 230 Mtpa. The project is high grade, 66.7% iron, with production costs of US$15 per tonne and forms part of the Vale Northern Logistics Corridor programme 10

11 Araguaia Project Location & Infrastructure 11

12 PFS PFS contract awarded to Snowden Mining Industry Consultants As lead contractors Snowden will be managing a group of selected third party consulting groups to deliver the PFS including: IGEOLOGIA (IGEO) Walm and Integratio PFS is on schedule to be released in the first half of February 2014 Total drilling to date 35,200 metres (1,412 holes) of HQ drilling Geotechnical drilling and trial pitting on the mines, plant and tailings sites completed, together with development of geotechnical mine models Preliminary pit optimisation and feed scheduling for both options are complete Preliminary mining schedules completed on Options A & B and the mining Capex and Opex cost models now established Social and Environmental study SEIA-EIA/RIMA is making solid progress, with consultants Walm and Integratio working to schedule Preliminary mass and energy balances for the plant have been completed 12

13 Project Targets & Resource Proposed Plant site Location 13

14 Pequizeiro Target Pequizeiro Sector Drilling May 2011 Thickness (m) 1.0% Ni COG 2.0m minimum intersect 2.0m maximum internal waste 14

15 Plant Site and Slag Dump Locations 15

16 Araguaia RKEF Proven Process Anglo American Barro Alto Project, Brazil Araguaia ore confirmed as suitable for the proven RKEF process PFS will be based on RKEF (H2 2013) 14 operational RKEF plants worldwide in 2013 Two 185 metre long rotary kilns in the process of calcing the ore which removes the moisture and water crystals indicating the start of the metallurgical process 16

17 Metallurgical Testwork Summary The Batch smelting tests conducted at 1,520 C were successful in producing a FeNi alloy at around 30 wt % nickel for the transition, saprolite and two blends Morro Azul pilot plant test facility for Araguaia pilot run Market study has confirmed the targeted grade (20%) for Araguaia ferronickel meets requirements of stainless steel plants 17

18 Regional Potential 18

19 Market Comparables Deal structure Resources at time of transaction Price paid $/lb Sherrit acquisition of 40% of Ambatovy from Dynatec for $1.6B Vale acquisition of Canico Resources Onca Puma Project 125Mt at 1.04% Ni (2007) $ Mt at 1.73% Ni (2005) $0.23 HudBay acquisition of Skye Resources for $476M 108.8Mt at 1.379% Ni (2008) $0.14 Solway Group acquires 98% of Fenix ferro-nickel project in Guatemala from Hudbay for $170M Skye Resources acquires Fenix Nickel for 70% issue 25% equity, raise $20M and complete Feasibility Study and $5M cash 45.9 Mt at 1.85% Ni (2011) $ Mt at 1.8% Ni (2004) $0.06 Anfield Nickel completed PFS on Mayaniquel Project, Guatemala Global reserves of 69.9Mt at 1.41% Ni (Nov 2013) $0.04 Current Horizonte in-situ valuation approximately 0.01 $/lb 19

20 The Nickel Market pre Indonesia Ban Mid-term over supply - Long term shortage Planned Araguaia Production 20

21 The Nickel Market For the period , global nickel demand growth is projected at 5.2% p.a. Estimated average annual growth of 7.4% p.a. in China and 3.0% p.a. in the rest of the world Nickel consumption in stainless steel is projected to increase 6.0% p.a. throughout outlook period, while primary nickel usage in non-stainless steel applications is forecast to increase by 3.5% p.a. China accounts for approximately 25% of global nickel supply with 70 to 80% of this ore source from Indonesia. The new ban could be a major game changer for nickel in terms of supply and price. After the current batch of new projects finally ramp up (Koniambo, Ambatovy, Ramu, Barro Alto, Onca Puma) there is limited funding anticipated for the next generation of nickel projects The nickel life cycle is compelling: demand has been strong and outlook remains strong 21

22 Conclusion Araguaia has sound economics based on low strip ratio, excellent infrastructure, large mineral resource (100Mt) as shown in the PEA with two viable alternatives for processing Pre-Feasibility looking at two operating scenarios (2.7Mtpa and 900Ktpa the latter offering lower Capex and improved returns) Post tax PEA outlines NPV8 of US$693M with IRR of 15.4% using the proven RKEF process route, with 14 operations globally (Araguaia ore confirmed as suitable for RKEF process) Project de-risked: geology, metallurgy and social/ environmental Completed 3 rd phase drilling in May 2013: 9,300m Infill resource drill programme completed resource upgrade due as part of PFS Well funded with c. 4.5 million and support from Teck 42.5% shareholder (current market cap circa CAD$16 billion) Designed to come on-line in nickel market deficit and produce at the lower end of the cost curve Horizonte well placed to benefit from the nickel ban from Indonesia 22

23 Contacts Horizonte Minerals Plc 26 Dover Street, London, UK Jeremy Martin, Chief Executive Officer Tel: