Investor Presentation Accelerate to Golden Success Proposed ASX code: AX8 May 2017 www.ax8.com.au
Important Notice and Disclaimer This presentation has been prepared by Accelerate Resources Limited (Accelerate or the Company). It contains general information about the Company s activities current as at the date of the presentation. The information is provided in summary form and does not purport to be complete. This presentation is not to be distributed (nor taken to have been distributed) to any persons in any jurisdictions to whom an offer or solicitation to buy shares in the Company would be unlawful. Any recipient of the presentation should observe any such restrictions on the distribution of this presentation and warrants to the Company that the receipt of the presentation is not unlawful. It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company that would require a disclosure document under the Corporates Act 2001(Cth) (Act) or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation or any information, opinions or conclusions expressed in the course of this presentation. The Company is intending to conduct an initial public offering( IPO) of its securities. A disclosure document prepared in accordance with the Act will be made available when the securities are offered under the IPO. Anyone who wants to participate in the IPO will need to complete the application form that will be in or will accompany that disclosure document. If you would like to receive a copy of the disclosure document when it is available, please contact the company. This presentation is not a prospectus, product disclosure document or other offering document under Australian law or under any other law. It has been prepared for information purposes only. This presentation contains general summary information and does not take into account the investment objectives, financial situation and particular needs of any individual investor. It is not financial product advice and investors should obtain their own independent advice from qualified financial advisors having regarding to their objectives, financial situation and needs. Accelerate nor any of their related bodies corporate is licensed to provide financial product advice. This presentation and information, opinions or conclusions expressed in the course of this presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. There are a number of risks, both specific to Accelerate, and of a general nature which may affect the future operating and financial performance of Accelerate, and the value of an investment in Accelerate including and not limited to title risk, renewal risk, economic conditions, stock market fluctuations, manganese demand and price movements, timing of access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve estimations, native title risks, foreign currency fluctuations, and mining development, construction and commissioning risk. You should not act or refrain from acting in reliance on this presentation, or any information, opinions or conclusions expressed in the course of this presentation. This presentation does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the prospects of Accelerate. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision. Recipients of this presentation must undertake their own due diligence and make their own assumptions in respect of the information contained in this presentation and should obtain independent professional advice before may any decision based on the information. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the information, opinions and conclusions expressed in the course of this presentation. To the maximum extent permitted by law, no representation, warranty or undertaking, express or implied, is made and, to the maximum extent permitted by law, no responsibility or liability is accepted by the Company or any of its officers, employees, agents or consultant or any other person as to the adequacy, accuracy, completeness or reasonableness of the information in this presentation. To the maximum extent permitted by law, no responsibility for any errors or omissions from this presentation whether arising out of negligence or otherwise is accepted. An investment in the shares of the Company is to be considered highly speculative. The use of exploration targets or conceptual exploration targets in this presentation or expressed during the course of this presentation are subject to completion of the necessary feasibility studies, permitting and execution of all necessary infrastructure agreements. In relation to any statements pertaining to future exploration targets or conceptual exploration targets, the nature of the exploration target means that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource. Some statements in this presentation regarding future events are forward-looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward-looking statements include, but are not limited to, statements concerning the Company s exploration programme, outlook and target sizes. They include statements preceded by words such as potential, target, scheduled, planned, estimate, possible, future, prospective and similar expressions. AX8 I Page 2
Investment Highlights Australian Gold IPO (August 2017) with a tight capital structure Experienced resource sector management team High leverage to the Australian gold price of A$1600+ oz. Three regionally significant West Australian gold projects. Drill ready targets. All within trucking distance to gold processing options for early cash flow. Accelerate has set in place a structure that provides: Access to capital Spread of support from Sydney, Melbourne & Perth. Pipeline of project generation opportunities. Strong technical capability. Strong communication & marketing. AX8 I Page 3
Corporate Overview Capital Structure Founder & Vendor Shares (to be escrowed) 9.1M Broker Shares (to be escrowed)* 2.5M Seed Capital Shares at 10 cps 3.0M IPO Shares at 20 cps 22.5M Total Shares** 37.1M Market Capitalisation Cash Raised * Broker shares are linked to IPO commitment **Incentive Options on issue ($0.25 / 4 years) - 6.0M $7.4M $4.8M IPO CAPITAL STRUCTURE Founder & Vendor Shares Seed Capital Shares Broker Shares Board & Management Ownership Analysis Grant Mooney Yaxi Zhan Terry Topping Brett Tucker Andrew Rust Chairman Managing Director Executive Director Company Secretary Exploration manager Pre IPO Shares 39.4% IPO Shares issued at 20cps 60.6% AX8 I Page 4
Board of Directors Mr. Grant Mooney Chairman Ms. Yaxi Zhan Managing Director Mr. Terry Topping Executive Director Brett Tucker Company Secretary Corporate Adviser Legal Adviser Auditor Co-Lead Manager AFSL: 387963 AX8 I Page 5
Management Mr. Grant Mooney Chairman Mr. Mooney is the principal of Perth-based corporate advisory firm Mooney & Partners, specialising in corporate compliance administration to public companies. He has extensive experience in the areas of corporate and project management, capital raisings, mergers and acquisitions and corporate governance. Mr. Mooney is a Director of ASX listed resource companies Barra Resources Limited, POZ minerals Limited, Talga Resources Limited and is Chairman of renewable energy company Carnegie Wave Energy Limited. Mr. Mooney is a member of the Institute of Chartered Accountants in Australia. Ms. Yaxi Zhan Managing Director Ms. Zhan was educated in Inner Mongolia and Curtin University in Western Australia where she gained Bachelor degree in computer science and a Masters degree in accounting. For the past eleven years, she has worked in capital raising, mergers and acquisitions and project development with Sinosteel, Norilsk Nickel and within the Australian listed junior exploration sector. Ms. Zhan is well connected to the Chinese business community, is an active member in various Chinese-Australian business groups and regularly organises trade talks and visits from China. Ms. Zhan is a member of the Institute of CPA and is an Australian citizen. Mr. Terry Topping Executive Director Mr. Topping has 30 years experience in the mining industry and has over 20 years of experience in the management of listed public companies on ASX and TSX. Terry has experience in corporate finance, mergers and acquisitions and also as a mining and exploration geologist in Australia and overseas. Mr. Topping is a Member of the Australasian Institute of Mining & Metallurgy and the Australian Institute of Geoscientists. AX8 I Page 6
2016 IPO Share Price Performance 12 new Materials stocks listed in 2016. 10 are small cap The smallest caps (<$10m) with an average day-one gain of 65%, 52% on average by year end. The $10-25m bracket with average day-one gains of 27% and an average year-end gain of 56% 2016 IPO market, subscription rates 83% of all IPOs meeting their subscription targets. Total funds raised on average: 102% of their targeted subscription amounts (Oversubscription) Data from Mann Judd IPO Watch Report 2017 AX8 I Page 7
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Historical Gold Price 1,900 1,700 1,500 1,300 1,100 900 2004 Bulgera Closed Gold Price: 398 USD/oz 574 AUD/oz 700 500 300 100 Data from RBA as of 29/3/2017 Gold Price (USD) Gold Price (AUD) AX8 I Page 8
WA Gold Focus Western Australia Gold Focused Exploration Company Three regionally significant West Australian gold projects Historical drilling and mining records Trucking distance to operating processing plants Well maintained infrastructure AX8 I Page 9
Bulgera Gold project Bulgera Venus (Backfilled) Price Mercuri AX8 I Page 10
Bulgera Gold Project Discovered by Resolute Resources (1988). Chip samples returned gold values of 3 to 7g/t Au. Last mined in 2004 by Barrick Gold of Australia ( Gold Price 375-454 USD) Two tenements, E52/3276 and E52/3316) with a combined area of 37.3 km2 10km from the Marymia gold mine and only 48km to Plutonic by existing haul road Shallow gold drilling targets have been identified within this underexplored greenstone belt. AX8 I Page 11
Bulgera Geology Year Tonnage Grade Ounces 1996 Resolute Mining 134,338 1.98 8,562 2004 Barrick Mining 306,461 1.50 14,836 Total Mined 440,799 1.65 23,398 AX8 I Page 12
Bulgera - Cross Sections AX8 I Page 13
Bulgera - Cross Sections AX8 I Page 14
Bulgera - Infrastructure Excellent local infrastructure Operating gold mine and camp facilities at Plutonic Gold Mine. Two power stations: 15MW gas-fired station, and one standby 8MW diesel fired station High voltage overhead transmission line supplies power to the processing, mining, bore field, camp and administration area Spare Capacity - Hard rock processing capacity of 2.0Mtpa, current rate at 850k tpa of underground ore. Two water bore fields either side of the Great Northern Highway. 30kms and 12kms west of Plutonic plant. 550+ employees accommodation at Plutonic. 2,071m Plutonic gravel airstrip, catered for turbo-prop aircraft. 24/7, 365 days fly-in fly-out basis AX8 I Page 15
Mount Monger Gold Project Located in an active gold mining district 8 km east of the Silver Lake Randalls gold mill Shallow and widespread gold mineralisation over 350m 11m @ 1.7g/t Au from 24m in MMAC062 3m @ 3.2g/t Au from 33m in MMAC066 1m @ 4.2g/t Au from 27m in MMAC067 AX8 I Page 16
Mount Monger Geology AX8 I Page 17
Mount Monger- Cross Sections AX8 I Page 18
Mount Monger Infrastructure Randalls Mill facility is only 10 km from the Kiaki Soaks Project The plant is designed to treat an ore throughput of 1.2 mtpa. The grinding and wet plant circuits are designed to process ore at a treatment rate of 125 tph West Power provided up to 5.5 MW main power to Randalls Gold Project Potential to further increase the capacity of the processing facilities to around 1.7Mtpa AX8 I Page 19
Comet Gold Project AX8 I Page 20
IPO Timetable Task Status Finalise Capital Structure Appoint Advisors Finalise Seed Fundraising Completed Completed 19 th of May Draft Independent Geologist & Accountant s Reports 31 st of May Finalise Independent Accountant s Report Finalise and Lodge Prospectus Offer Open Close ASX Admission 31 st of May 30 th of June 14 h of July 30 th of July Mid-Late August AX8 I Page 21
Contacts Yaxi Zhan - Managing Director Mob: 0432 024 792 Email Yaxiz@Ax8.com.au Terry Topping - Executive Director Mob: 0417 923 341 Email Terryt@Ax8.com.au Office Address : 989 Wellington Street, West Perth, Western Australia PO Box 938, West Perth, 6005 www.ax8.com.au Competent Person s Statement: The information in this report that relates to Exploration Results is based on information compiled by Mr. Terry Topping, who is a Member of the Australasian Institute of Mining & Metallurgy and the Australian Institute of Geoscientists. Mr. Topping is the Executive Director of Accelerate Resources Pty Ltd( To be renamed as Accelerate Resources Limited) and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Topping consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears. AX8 I Page 22