An Emerging West African Gold Developer www.papillonresources.com February 2013
Executive Summary Gold focus in Mali Flagship Fekola Project advancing rapidly Mineral Resource Estimate of 4.21 Moz (@ 2.38 g/t) mineralisation open at depth and along strike potential to substantially increase inventory extensive drilling program currently underway Scoping Study completed demonstrates robust Project with strong economics significant production scale and mine life PFS underway targeting completion Q2 2013 Strong board and management with proven track record in Africa Strong cash position (31 Dec 2012 ~A$20m) 2
Building an Enviable Track Record Consistent delivery of key milestones Doing what we say we are going to do! Maiden Resource 3.14Moz @ 2.4 g/t Resource update to 4.21Moz @ 2.38g/t M & I accounts for 83% of MRE Detailed metallurgical testwork complete Positive metallurgy Jul 2012 Oct 2012 Jan 2013 Oct 2011 Scoping Study confirms technical viability and robust economics 50,000m drilling program completed PFS anticipated completion in Q2 2013 DFS anticipated completion early 2014 JAN 2011 Feb 2011 Greenfields discovery at Fekola JAN 2012 JAN 2013 JAN 2014+ 3
Delivering Superior Value Corporate Objectives: BECOMING A WEST AFRICAN GOLD PRODUCER IN THE NEAR TERM Gold production in the near term Lowest quartile cost producer Focus on Return on Invested Capital (ROIC) Operate in socially responsible manner Deliver superior value for all stakeholders 4
Fekola Located in South West Mali Located adjacent to the border with Senegal Main supply route through Dakar - Bamako Low operational risk from events in northern region All major mines in Mali are Business as Usual 40Moz+ Strategic ground holding in highly endowed province 5
Mali West World Class Province +40 Moz within 150km same structural corridor +22 Moz within 60km Loulo-Gounkoto Complex (Randgold, ~500koz pa) 50km to the north Established infrastructure Papillon controls, or has applications, covering 25km of structural strike Senegalo-Malian Shear Zone a prolific gold bearing structure 6
Fekola Project Significant Growth Potential Updated MRE of 4.21 Moz (@ 2.38 g/t) Based on drilling covering strike length of ~4km and to max. depth of 400m Majority contained within a single, continuous, mineralised structure Thick, high grade intercepts Mineralisation open at depth and along strike Represents small portion of strike extent of highly prospective Fekola Corridor (+11km) Shallow drilling to north yielded favourable results Five priority exploration targets to be tested in 2013 Papillon ownership 90% 7
Resource Growth - Open along Strike 8
Resource Growth - Open at Depth Major discoveries along the Senegalo Malian Shear Zone have encountered mineralisation at depth Gounkoto is located approximately 50km north of Fekola A number of drill intercepts at Fekola ended in mineralisation Papillon Fekola 1 Randgold Gounkoto 2 January 2013 Drilled to 400m Strike of ~3.8km Resource 4.21Moz September 2009 Drilled to 185m Strike of 1.3km Resource ~2.65Moz Surface 200m 400m? December 2011 Drilled to 750m+ Strike of 1.9km Resource of 5.4Moz @ 4.2g/t 400m 600m Note: All depths are approximate maximum vertical depth drilled. All resource figures are gross ounces attributable to the project. 1) Approximate maximum vertical depth 2) As per Randgold Quarterly Reports 31 Mar 2011, 30 June 2011. Exploration Report Dec 2010. Strike lengths are approximate. Gounkoto numbers represent approximate pre-mined resources. 800m 9
Thick, high grade intercepts 10
Updated MRE 4.21 Moz (34% ) Fekola Project Mineral Resource Estimate as at January 2013 Tonnage (million tonnes) Grade (g/t gold) Contained Gold (million ounces) Measured Resource 34.73 2.48 2.77 Indicated Resource 9.57 2.36 0.73 Total M&I 44.31 2.46 3.50 Inferred Resource 10.7 2.1 0.7 Total Resource 54.97 2.38 4.21 MRE was prepared by independent consultants MPR Geological Consultants Pty Ltd, and is reported in accordance with the JORC Code (2004). MRE is reported at a lower cut-off grade of 1.0 g/t gold MRE is estimated on a 100% basis of which 90% is attributable to Papillon Resources Limited All figures are rounded to reflect appropriate levels of confidence. Apparent differences occur due to rounding 11
Recoverable Au (Moz) Resource Summary Prepared by independent consultants MPR Geological Consultants Pty Ltd 4.50? Based on ~81,000m combined RC and diamond drilling conducted during 2011 and 2012 4.00 3.50 4.21 Moz 83% (3.50 Mozs) classified as Measured and Indicated Discovery costs < US$10/oz Potential to substantially grow the resource base with ongoing work Aggressive drilling program underway 3.00 2.50 2.00 1.50 1.00 0.50 3.14 Moz 0.00 Jun 2012 Jan 2013 Q3 2013 (1g/t cut off) Measured Indicated Inferred 12
Scoping Study Robust Project Scoping Study: Based on 3.14 Moz maiden MRE (July 2012) Production 231,000 ounces per annum (average LOM) 245,000 ounces per annum (average steady state) Operating Cost US$596 per ounce (average LOM) Capital Cost US$298m (Plant US$160m; Infrastructure US$138m) Pre-tax Cash Margins Mine Life ~US$145m per annum (US$1,300 gold price) Minimum 11 years Including 9 years steady state operation Study managed by DRA Mineral Projects (DRA) of South Africa Study team comprised industry recognised specialist consultants covering all key disciplines Operating costs are defined as the direct operating costs including contract mining, processing, tailings storage, water treatment and G&A Engineering developed to support capital and operating cost estimates to an accuracy of nominally ±30% (AACEI Level 5) Confirms robust Project with strong cash margins at a variety of gold prices 13
Simple Open Pit Mining Open pit mining using drill & blast followed by diesel powered truck & shovel operation Low strip ratios: average 1:1.9 (ore to waste) over LOM Mining schedule contemplates maximum movement of 16Mt per annum (waste & ore) Average mining cost anticipated to be ~US$3.70/t (variable for waste & ore) Scoping Study assumes contractor mining scenario Stockpiling of lower grade material, use of ROM S/P to blend ore to the mill, evaluated in PFS 14
Conventional Processing Conceptual Flow Sheet Metallurgical Test Work Results Amenable to Gravity Recoverable Gold ( GRG ) concentration Average leach recovery 93.3% (75µm P 80 ) Rapid leach times: > 90% extraction in 10hr Ore hard and moderately abrasive (Rod and Ball Work Indices of 24.5 and 20.4 kwh/t respectively) Reagent consumptions within normal ranges Conventional process flow sheet -> GRG and Carbon in Leach ( CIL ) process Work conducted by SGS Lakefield Oretest and Nagrom Mineral Processors in Perth Favourable metallurgy -> simple & well understood process flow sheet 15
Pre-Feasibility Study DRA Mineral Projects (DRA) of South Africa engaged as independent Study Manager Key areas of focus: Optimise open pit mining schedule, which will utilise updated resource estimate Confirmation of metallurgical performance of ore body via further detailed batch test work program Refine and optimise process circuit design Further investigation and refinement of site layout In-depth analysis of project infrastructure requirements Metallurgical testwork program underway: 1.2 tonne representative sample sent to Amdel (Perth) Detailed program re-examining and confirming previous work Trade-off analysis for potential milling circuits ESIA process continuing in parallel Targeting completion during Q2 2013 16
Infrastructure and Community Good local infrastructure Close to Millennium Highway supply route via Dakar Faleme River provides good access to water Sparsely populated Local community supportive of Project Initial public consultation process complete 17
Indicative Timeline 2012 2013 2014+ Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Drilling Resource Updates 52,000m ~100,000m ` Scoping Study Pre-Feasibility Study Environmental and Social Impact Assessment including baseline studies Mining Licence Definitive Feasibility Study Aggressively pursuing resource and development milestones 18
Corporate Capital Structure Shares on Issue 297.0m Unlisted Options & Rights 24.7m (WAEP ~$0.61) Market Cap. (@ A$1.50) A$446m Cash (31 Dec 12) ~A$20m Substantial Shareholders Directors & associated entities 7.7% GCIC 7.5% Other Institutions 15.8% Top 20 Shareholders 71.4% 19
Experienced Board and Management Ian Middlemas Chairman Mark Connelly Managing Director & CEO Robert Behets Non-Executive Director Chartered Accountant with over 20 years mining industry experience; extensive corporate and management expertise Commercial executive with over 25 years experience in the gold mining industry including 5 years in West Africa. Specific focus on managing companies through development, construction and into production Geologist with over 20 years mining industry experience; Founding MD of Mantra Resources and ex-wmc executive; member of JORC Committee Peter Woodman Non-Executive Director Guy de Grandpre Managing Director Mali Russell Bradford Project Manager Andrew Boyd GM Geoscience Geologist with over 20 years of experience in exploration, development and operations; currently MD of WCP Resources Commercial executive with over 10 years experience operating in West Africa, most recently as a instrumental member of the foundation team for Kinross Mining s West African operations Metallurgist with over 20 years experience in Africa and Australia; former GM - Project Development for Mantra, GM - Operations for LionOre s Australian nickel mines, Head of Metallurgy at BCL in Botswana Geologist with over 20 years of exploration and mining experience; former GM - Geoscience for Mantra Resources Hayden Locke Corporate Executive Engineering and commercial background with significant experience in investment banking and private equity in both Europe and Australia 20
Investment Case HIGH QUALITY ASSET Large (4.21Moz), high grade (2.38g/t) resource at Fekola Favourable metallurgy (leach recovery >93%) Simple open pit mining, conventional gravity and CIL process RESOURCE GROWTH POTENTIAL Mineralisation open at depth and along strike at Fekola Only small portion of highly prospective Fekola Corridor explored Potential to substantially increase resource base RAPIDLY DE-RISKING THE PROJECT Scoping Study demonstrated robust Project with strong economics Significant production scale and mine life PFS underway targeting completion Q2 2013 21
Additional Slides
Scoping Study Cost Estimates Cash Operating Cost $596/Oz (LOM) Capital Costs US$298 million Mining Ore 11% G&A 9% HFO Plant 8% Construction 8% Roads and Terraces 4% Processing 60% Plant 64% Mining Waste 20% Indirect Costs 16% 23
Mining Industry in Mali 3rd largest gold producer in Africa Internationally competitive mining code Favourable fiscal regime (recent mining conventions) Free of corporate tax for first 5 years of mining 3 year moratorium on import duties for miners (full moratorium for exploration period) 6% royalty on revenues 10% government participation at decision to mine and the option to acquire another 10% at market value No restrictions on foreign investment No restrictions on capital flows in and out of Mali New Mining Act 2012 currently being implemented Mining Companies Operating in Mali 24
Fekola Resource Grade / Tonnage Updated MRE January 2013 MRE was prepared by independent consultants MPR Geological Consultants Pty Ltd, and is reported in accordance with the JORC Code (2004). MRE is reported at a lower cut-off grade of 1.0 g/t gold MRE is estimated on a 100% basis of which 90% is attributable to Papillon Resources Limited All figures are rounded to reflect appropriate levels of confidence. Apparent differences occur due to rounding 25
Important Notices Disclaimer Notice The material in this presentation ( material ) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in Papillon Resources Ltd ( PIR ) nor does it form the basis of any contract or commitment. PIR makes no representation or warranty, express or implied, as to the accuracy, reliability or completeness of this material. PIR, its directors, employees, agents and consultants shall have no liability, including liability to any person by reason of negligence or negligent misstatement, for any statements, opinions, information or matters, express or implied, arising out of, contained in or derived from, or for any omissions from this material except liability under statute that cannot be excluded. Statements contained in this material, particularly those regarding possible or assumed future performance, costs, dividends, production levels or rates, prices, resources, reserves or potential growth of PIR, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors. Competent Persons Statement The information in this Report that relates to Exploration Results is based on information compiled by Mr Andrew Boyd, who is a Fellow of The Australasian Institute of Geologists. Mr Boyd has sufficient experience which is 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 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ( The JORC Code ). Mr Boyd consents to the inclusion in this Report of the statements based on his information in the form and context in which it appears. Information in this Report that relates to Mineral Resources is based on information compiled by Mr Nic Johnson of MPR Geological Consultants. Mr Johnson is a Member of the Australian Institute of Geoscientists ( AIG ) and has sufficient experience, which is 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 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ( The JORC Code ). Mr Johnson consents to the inclusion of such information in this Report in the form and context in which it appears. The information in this Report that relates to Metallurgical Test Work Results and the Scoping Study is based on information compiled by Mr Glenn Bezuidenhout of DRA Mineral Projects. Mr Bezuidenhout is a Fellow of The South African Institute of Mining and Metallurgy, and has sufficient experience, which is 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 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ( The JORC Code ). Mr Bezuidenhout consents to the inclusion in this Report of the statements based on his information in the form and context in which it appears. 26