Slide 1: Updated Bankable Feasibility Study
UPDATED BANKABLE FEASIBILITY STUDY ASX:KNL FSE:FMK
Slide 2: Disclaimer
DISCLAIMER Securities Disclaimer This presentation is for informational purposes only and does not constitute an offer to sell, or solicit to purchase, any securities. Such offer can be made only through proper subscription documentation and only to investors meeting strict suitability requirements.
Slide 3: Our Vision
OUR VISIONOUR V I S I O N “To become a high margin producer of premium quality large flake graphite in Tanzania and a long- term stable supplier of graphite for the high growth battery market” 3
Slide 4: The Right Team to Advance Epanko
THE RIGHT TEAM TO ADVANCE EPANKO HE R I G H T T E A M T O A D V A N C E BOARD & KEY MANAGEMENT A STRONG MIX OF MINING, COMMERICAL AND GRAPHITE EXPERIENCE Robert Pett (Non-Executive Chairman) Minerals Economist with over 30 years’ experience in developing resources and mines in Australia and Africa.
Slide 5: Overview – The Case for Kibaran
OVERVIEW – THE CASE FOR KIBARAN O V E R V I E W – T H E C A S E F O R K I B A R A N Epanko is Increased Bankable Feasibility Study (BFS) production case to 60ktpa to support new demand positioned as one of the most BFS conforms with international project financing standards, IFC advanced graphit
Slide 6: BFS Key Highlights
BFS KEY HIGHLIGHTSB F S 50% increase in production to 60ktpa over an 18 year life of mine positions Kibaran to be a major baseload supplier of high value graphite products to traditional and emerging graphite markets Low pre-production capital of US$88.9m C1 operating costs FOB Dar es Salaam o
Slide 7: High Returning 60ktpa BFS Positions Kibaran at the Front of the Development Pipeline
HIGH RETURNING 60KTPA BFS POSTIONS KIBARAN AT T HE FRONT OF THE DEV ELOPMENT PIPELINE A H I R E T U R N I N G B A S E C A S E B F S Robust technical and financial BFS completed, conforming with IFC standards Summary BFS Outcomes Average production of 60ktpa graphite Input Unit June 2017 concentr
Slide 8: Capital and Operating Costs
CA P ITA L A N D O P E R AT ING CO STS D I C I O N Summary Pre-Production Capital Costs (US$m) Pre-production capital costs June 2017 July 2015 US$88.9m 60ktpa 40ktpa Mining 0.7 2.4 60ktpa case delivers a significantly Process Plant 48.8 45.1 improved capital efficiency Infrastructure 13.2 10.9
Slide 9: A Funding Strategy with Supportive Partners
A FUN D IN G ST RAT EGY W IT H SUP P ORT IV E PA RT N ERS Completed BFS is a key catalyst, with bank financing demanding the highest technical, social and environmental standards Commencement of debt financing program under the leadership of Germany’s KfW, together with: South Africa’s Nedbank
Slide 10: Epanko Supported by Existing Infrastructure
EPANKO SUPPORTED BY EXISTING INFRASTRUCTURE Established Regional Infrastructure Existing road access to Mahenge provides an effective logistics solution to Dar es Salaam Construction of bridge across the Kilombero River, linking Ifakara and Ulanga Districts nearing completion and simplifies proj
Slide 11: A High Quality Graphite Deposit with Scale
A HIGH QUALITY GRAPHITE DEPOSIT WITH SCALE Epanko Mineral Resource Estimate >8% TGC Mineral resource supports potential for depth and strike extensions of the Ore JORC Tonnage Contained Reserve pit shells Classification (Mt) Graphite (t) Measured 7.5 738,900 Mineralisation commences at surface w
Slide 12: Outlook of Western Zone Ridge Line
OUTLOOK OF WESTERN ZONE RIDGE LINE WESTERN ZONE MINERALISATION 12
Slide 13: Western Zone Mineralisation
V T E M S H O W S H I G H LY C O N D U C T I V E U N D R I L L E D WESTERN ZONE WITH SIGNIFICANT POTENTIAL Significant mineralisation exists outside of the Mineral Resource estimate modelled on an 8% TGC cut-off compared to the 5% TGC cut-off utilised for the Ore Reserve Mineral Resource at lowe
Slide 14: High Grade, Large Flake Provides Flexibility in Process Flowsheet Design and Products
HIGH GRADE, LARGE FLAKE PROVIDES FLEXIBILITY IN PROCESS FLOWSHEET DESIGN AND PRODUCTS Process flowsheet based on established industry processes and equipment High level of independent testwork to support BFS including 200t bulk sample Bulk sample was toll treated through an operating graphite
Slide 15: Grade and Flake Size Comparison
GRADE AND FLAKE SIZE COMPARISON EPANKO HAS THE HIGHEST PROPORTION OF HIGN VALUE>150 MICRON FLAKE GRAPHITE Grade combined with flake size determines value High grade with high proportion of large flake size (>150 micron) provides high margins 15
Slide 16: Epanko Has the Highest Proportion of High Value >150 Micron Flake Graphite
GE RP AA PN HK IOT EH AP SR I TC HI N E GH IAGS HS EU SMT P PT RI OO NP SO RI N CO TIO N NOT FE XHTI G N OVFA LP UE EE >R 1 G5 0R OMUI PC R O N F L A K E G R A P H I T E Kibaran has not made “heroic” pricing assumptions in determining base case basket pricing Epanko has the highest portion of hi
Slide 17: Marketing Strategy That Has Delivered Tangible Results
MA R K E T IN G ST R AT EGY T HAT HA S D E LIV E R E D TA N G I B L E R ES U LTS Full and long term Supplier of choice conversion to support potential LOM extensions and expansions 44ktpa sales/offtake Commitment to purchase agreements in place Enter into initial sales arrangements Evaluation Over 1
Slide 18: Offtake and Sales Agreements Matched to Demand and Positioned for Growth Markets
O F F TA K E A N D SA LES AG R E E ME N TS MATCH E D TO DEMAND AND POSITIONED FOR GROWTH MARKETS 18
Slide 19: Spherical Graphite Development Program
SPHERICAL GRAPHITE DEVELOPMENT PROGRAM S P H E R I C A L G R A P H I T E D E V E L O P M E N T Production of spherical graphite for anode battery market has the potential to capture significant margins in the battery minerals supply chain Spherical graphite scoping study released August 2015 sup
Slide 20: Battery Grade (Spherical) Graphite
BAT T ERY G R A D E (SP HE R ICA L) G R A P HIT E Natural Flake Graphite for Lithium-Ion Batteries Conversion of flake graphite with 95% purity into spherical graphite with 99.95% purity required Natural Flake Graphite Battery Grade (Spherical) Graphite Currently 100 % of Battery Grade Graphite is p
Slide 21: Spherical Graphite from Epanko Concentrate
SP HE R ICA L G R A P HIT E FROM E PA N KO CON CE N T R AT E D E MO N ST R AT ED E P A N K O C O N C E N T R A T E F E E D S T O C K D E M O N S T R A T EEpanko D Spherical Graphite Properties Spherical graphite has been produced from Measure Unit Outcome bulk sample of Epanko concentrate Particle
Slide 22: Positive Market Backdrop to Deliver Epanko
POSITIVE MARKET BACKDROP TO DELIVER EPANKO A P O S I T I V E M A R K E T B A C K D R O P T O Structural shift in graphite demand and supply fundamentals is looming large Batteries represented ~10% graphite demand in 2016 Kibaran’s testwork has demonstrated Epanko spherical graphite has superio
Slide 23: Early Mover Advantage and Value Drivers
E A R LY M O V E R A D VA N TA G E A N D VA L U E D R I V E R S UPGRADED BFS TO 60ktpa over an 18 year life of mine positions Kibaran to be a 60KTPA significant and high margin graphite producer FURTHER AGREEMENTS Discussions with leading German carbon groups for both natural flake products and
Slide 24: In Summary – The Case for Kibaran
IN SUMMARY O V E R V I E W – T H E C A S E F O R K I B A R A N Well positioned to be a significant graphite producer Epanko high quality graphite concentrate PRODUCT Value-add strategies to produce a premium spherical graphite product for the global battery market Tanzania – an established min
Slide 25: Latest News - Germany Vision
L AT E S T N E W S - G E R M A N Y V I S I O N 29 March 2017: Daimler Accelerates Electric Car Program Mercedes-Benz owner Daimler stated it is accelerating its electric car program. The company expects to bring more than 10 new electric cars to market by 2022 through US$10.8 billion of investment,
Slide 26: Kibaran Resources Limited
Kibaran Resources Limited Level 1/18 Richardson Street WEST PERTH WA 6005 Ph: +61 8 6424 9000 www.kibaranresources.com 26