OPERATING COAL MINES QUARRIES MINERALS METALS & EXPLORATION PROPERTIES

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1 +61 (0) OPERATING COAL MINES QUARRIES MINERALS METALS & EXPLORATION PROPERTIES METALS EXPLORATION INDUSTRIAL MINERALS ENERGY RESOURCES TENEMENTS MANAGEMENT

2 Requirement for a Project Valuation? Shareholders / Investors / Board Due Diligence Company Balance Sheet Stamp duty purposes Impairment issue Sale / JV / Merger

3 Geos Mining values existing or proposed operations on the basis of: 1. Earning Potential assessed by Discounted Cash Flow analysis 2. Other methods used include Comparable Transactions Modified Replacement Value Prospectivity-based multiple of Applicable Exploration Expenditure

4 Why Use Geos Mining JORC (2012) and Valmin compliant Meet CIMVAL, HKEX compliance Expert reports are provided for all public valuations written plainly so the public can understand them Include an analysis of major risks as appropriate for specific client requirements. Completely independent with transparency in reporting a key focus. all material data clarified and verified / not accepted uncritically Signed off by competent person

5 Why Use Geos Mining Accepted by banks and major accountancy and audit companies Careful to allow for differences in regional markets, geological conditions, and other relevant factors in all comparative analyses Willing to engage in debate and discussions backed by expertise in all aspects of exploration and mining to clarify conclusions, without compromising independence

6 Why Use Geos Mining Risk Analysis is an essential component of all valuations Risk Analysis: Potential pitfalls and problems in Geology Exploration rationale Geological Model Resource / Reserves Model Classification Status Mining Constraints Milling and Processing Note / highlight potential issues Tenure Permitting and licencing Infrastructure Environmental and Social

7 Standard Project Risk Analysis Risk rating devised from two defined factors 1. Probability and 2. Consequence Probability A Common 1 B Has happened 2 C Could happen 3 D Not likely 4 E Practically impossible Consequence Catastrophic loss, over 40% of project value Major disruption/ impediment, 20% - 40% of project value Moderate disruption/ impediment, 10% 20% of project value Minor disruption/ impediment, 5% - 10% of project value 5 No lasting effect CONSEQUENCE PROBABILITY A B C D E HIGH 1-6 MEDIUM 7-15 LOW e.g. Risk C2, 8, medium

8 - In RISK Monte Carlo Simulation Studies Probability Based Financial Modelling Range of Outcomes Probability assignment requires high level technical expertise Ideal For Internal : Management / Board Strategic Planning Finance and Major Investors

9 Geological RISK Modelling Probability of Success for less Advanced Projects EV = P x TV C EV Prospect Value P Probability of advancing to next stage TV - Target Value (NPV of deposit style) C Cost of Exploration Ideal For Internal : Prioritising of Projects Management / Board Strategic Planning Finance and Major Investors

10 Testimonials Geos Mining was appointed by our client to perform an independent valuation of their production and exploration assets, assisting our client in their impairment assessment as required by Australian Accounting Standards. The Geos Mining valuation covered our client s coking coal producing assets as well as various exploration assets. Geos Mining assigned a specialist team with significant experience in coal to the valuation. We found Geos Mining communicative throughout the process and committed to meeting tight deadlines. What impressed most was that Geos Mining were willing to engage in debate and discussions, and backed themselves and their expertise in arriving at their conclusions, without compromising their independence. The Geos Mining report was concise, easily understood and thorough. Iain Kemp Partner - Audit & Assurance

11 Testimonials The Board of CWG were very satisfied with all aspects of the work conducted and valuation report provided by Geos Mining. The work was completed on time and at the agreed fee, and the Board considers that the report produced was of high quality. Chris Ryan - Chairman

12 Recent Valuation Examples Las Bambas (Glencore/MMG transaction) with our Hong Kong partners JLL. Wollongong Coal Bounty Coal Ongoing major royalty stream valuation Central West (NSW and PNG gold exploration) Cape York bauxite (internal use, plus stamp duty value) Tanami gold exploration (internal) Lead-zinc advanced exploration (internal) Ilmenite project, Qld Iron ore, Australia, Malaysia, Chile

13 Recent Valuations Quarry Industrial minerals Agricultural lime operation in NSW, Australia Ironstone operation in NSW, Australia Kaolin deposit in Georgia, USA Dimension stone Bluestone quarry in Victoria, Australia Proposed slate quarry in NSW, Australia Construction materials Aggregate operation in NSW, Australia Aggregate and sand operation in NSW, Australia Proposed sand operations in NSW, Australia Coal Major long wall coal mining operation on south coast, NSW, Australia Canning basin coal project in WA, Australia Several coal operations in Indonesia Western coalfield coal deposit in NSW, Australia Coal inferred resource in Hunter Valley, NSW, Australia Minerals Bauxite in Cape York, Australia Ilmenite project in Queensland, Australia Numerous exploration projects for gold & base metals in NSW, Australia and PNG Iron ore in NSW, Australia Phosphate and uranium projects in Mali

14 Report Date Geos Mining: Recent Independent Reports and Valuations Company Intended Listing Current listing status Commodity 15-June-14 MMG Limited HXX Listed copper Reporting Standard Valmin, JORC 2012 Level of Involvement Independent valuation for MMG s purchase of Glencore s LasBambas (Peruvian) project, `$6bn 01-May-14 Mineral Bull Limited SGX To be listed Lead-Zinc Valmin Independent Valuation Y JLL's Involvemen t Y 01-May-14 PRC China General Nuclear Power Corporation HKSE To be listed Uranium JORC 2012 Resource and Reserve Estimation for ITR 9-Apr-14 Wollongong Coal Limited ASX Listed Coal Valmin Independent Valuation 28-Feb-14 Bounty Mining Ltd ASX Listed Coal Valmin, JORC 2012 Independent Valuation for transaction, Resource Estimation 25-Feb-14 Prosperity International Holdings Limited HKSE To be listed Iron Ore JORC 2012 Geology, Resource Estimation for ITR 21-Jan-14 ASF Resources Limited ASX Unlisted Coal Valmin Independent Valuation (internal use only) 22-Oct-13 WPG Resources ASX Listed Coal Valmin Independent Valuation 10-Oct-13 Jiangxi Ganfeng Lithium Co. Ltd SZSE Listed Potash, Lithium, Boron Valmin, JORC 2012 Independent Valuation 23-Jul-13 Capture Advantage Co. Ltd (Malaysia) HKSE Listed Iron Ore JORC 2004 Resource and Reserve Estimation, ITR 12-Jul-13 Ord River Resources Limited ASX Listed Gold Valmin, JORC 2012 Independent Valuation (Internal use only) 20-Jun-13 Mt Wills Gold Mines ASX Listed Gold JORC 2012 Resource Estimation 28-Mar-13 Concisus Legal Pty Ltd Unlisted Phosphate Valmin Independent Valuation for litigation 28-May-12 Central West Gold NL ASX Listed Gold & Base Metals Valmin Independent Valuation for transaction 02-Mar-12 CBH Resources ASX Unlisted Base Metal Valmin Independent Valuation (Internal use only) 28-Mar-12 BEK (Indonesia) SGX Listed Coal Valmin Independent Valuation Y 24-Jan-12 Malachite Resources ASX Listed Gold JORC 2004 Resource Estimation 21-Jan-12 Gulf Alumina Limited TSX Unlisted Bauxite NI Independent Report and Valuation 24-May-11 Jiangxi Top Gold Limited (China) ASX Unlisted Gold & Base Metals JORC 2004 Independent Geological Report & Resource Estimation 17-Dec-10 Hill End Gold ASX Listed Gold JORC 2004 Resource Estimation 18-Aug-10 Eastern Iron Limited ASX Listed Iron Ore Valmin Valuation for related party transaction 13-Nov-06 Premier Minerals (Bangladesh) AIM Unlisted Heavy Mineral Sands JORC 2004 Independent Geological Report & Review of Valuation 18-Oct-00 Phyllite International Pty Ltd ASX Unlisted Slate JORC 1999 Resource Estimation, ITR, Valuation

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