Slide 1: Benchmark Cathodes 2018
For personal use only @Core Exploration Benchmark Cathodes 2018 www.linkedin.com/ Australia’s next lithium producer company/core- exploration Stephen Biggins, Managing Director info@coreexploration. com.au CORE EXPLORATION | ASX:CXO 1
Slide 2: Disclaimer
Disclaimer For personal use only The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Stephen Biggins (BSc(Hons)Geol, MBA) as Managing Director of Core Exploration Ltd who is a member of the Australasian Institute of Mining and
Slide 3: Important and Cautionary Notes
Important and Cautionary Notes Cautionary Statement: The PFS results are based upon the updated Grants Mineral Resource of 8 May 2018 (ASX announcement 8 May 2018). The Mineral Resource contains Indicated and Inferred material (see Table 5 in For personal use only section 3.1 below – 37% Inferred ma
Slide 4: On a pathway to production
For personal use only On a pathway to production Lithium rich province Best logistics chain 01 The Bynoe Pegmatite Field is located 04 Excellent infrastructure and <100km from Darwin located close to Asian customers Low risk Funding secured 02 Conventional open pit mining with 05 US$20m from Yahua a
Slide 5: Countdown to production
Countdown to production For personal use only PFS Resource Upgrades Pre Payment Finance & Offtake Feasibility Study Environmental & Approvals FID Mining & Construction June Sept Dec Mar June 2018 2018 2018 2019 2019 CORE EXPLORATION | ASX:CXO 5
Slide 6: Pre-Feasibility Study Outcomes
For personal use only Pre-Feasibility Study Outcomes The Pre-Feasibility Study only modelled the development of the Grants deposit. The BFS includes BP33 as well as new drilling information. Strong cashflow Rapid payback $168 million generated over Project payback of less than 12 initial 26 mine pro
Slide 7: Definitive Feasibility Study
Definitive Feasibility Study For personal use only The Definitive Feasibility Study is on track for completion at the end of 2018, with the inclusion of the BP33 deposit and recent drilling results. The DFS is being modelled with the following features: • Increased resources • Increased concentrate
Slide 8: Strategic location
For personal use only Strategic location The Finniss Lithium Project is located less than 100km by road from the Port of Darwin, allowing fast and reliable transport outcomes for delivering product to Asian customers. CORE EXPLORATION | ASX:CXO 8
Slide 9: Corporate Information
Corporate Information For personal use only Shares Price A$ ~$0.05 Shares on issue ~633.8M Market cap ~$32M Cash (30/6/2018) ~$8M Enterprise Value ~$24M Directors Management Stephen Biggins Blair Duncan Managing Director ex SAU, IVR General Manager Development Greg English Dr David Rawlings Non-Exec
Slide 10: Finniss Lithium Project
For personal use only Finniss Lithium Project The Finniss Lithium Project has potentially the best logistics chain to Asia of any Australian lithium project. High grade Large tenement area One of the highest grade lithium Over 500km2 with over 100 projects in Australia historic pegmatite occurrences
Slide 11: Exceptional economics
For personal use only Exceptional economics 1000 Operating Costs Operating Margin 900 Operating Costs A$/t US$/t1 800 Mining 208.7 156.5 700 Processing 71.2 53.4 600 Hauling 11.5 8.6 US$/t 500 General & Administration 8.0 6.0 400 Port Costs 7.5 5.6 300 Operating Costs (excl. Royalties) 306.9 230.1 2
Slide 12: Low capital intensity
For personal use only Low capital intensity The Finniss Lithium Project is among the least capital intensive lithium projects in Australia. Capital Costs AUD M USD M1 Mobilisation 1.7 1.3 Site Establishment 0.5 0.4 Groundwater Management 0.9 0.6 Mine Development (Clear & Grub) 0.8 0.6 Demobilisation
Slide 13: Proposed site layout
For personal use only Proposed site layout Mining of spodumene containing pegmatite using simple open pit mining methods. Conventional open pit mining • Drill & blast • Excavate, load & haul Crush and screen circuit • 3-Stage crush DMS (gravity separation) plant • 5.5 % Li 2 O concentrate Truck to D
Slide 14: Strong cashflow generation
For personal use only Strong cashflow generation $200 • $53.5 million capex will deliver $168 million in free cashflow over 26 months $150 • Rapid payback of <12 months Cumulative Cash Flows (AUD M) • Upside potential from processing additional ore sources that may be delineated within the Finniss P
Slide 15: Definitive Feasibility Study
Definitive Feasibility Study For personal use only The Pre-Feasibility Study for Finniss focused solely on the Grants deposit, with BP33 included the Definitive Feasibility Study • Upside - Significant upside potential through addition of other ore sources within the Finniss Project • Incremental va
Slide 16: Offtake and prepayment - Yahua
For personal use only Offtake and prepayment - Yahua Core has signed a binding offtake and US$20 million pre-payment agreement with Yahua • Binding offtake and pre-payment agreements signed with Yahua (8B yuan market cap) • Yahua is one of China’s largest lithium producers • Offtake agreement provid
Slide 17: Offtake and prepayment - Ruifu
Offtake and prepayment - Ruifu For personal use only Ruifu is one of China’s largest lithium hydroxide and carbonate producers Core has signed a non-binding Term Sheet with Shandong Ruifu Lithium Co Ltd, terms include : • Up to 150,000 tonnes lithium concentrate offtake per year from Core’s Finniss
Slide 18: Metallurgical testwork
For personal use only Metallurgical testwork New testwork produces a 6.1% Li 2O concentrate at 69% recovery Recent metallurgical testwork shows a strong improvement in the assumptions (2017) utilised in the PFS, with up to 79% lithium recovery at a grade of 5.5% Li 2 O Overall mass yield of up to 27
Slide 19: Huge exploration upside
For personal use only Huge exploration upside Targeting substantial Mineral Resource growth Upcoming exploration and aggressive drill programs in 2018 to target growth in the resource base to support a long-life lithium production hub at Finniss Project Discoverers - Core’s exploration has discovere
Slide 20: Grants resource upgrade
Grants resource upgrade For personal use only 42% increase in tonnes at Grants deposit Mineral Resource Estimate for the Grants Deposit - 0.75% Li2O cut-off Li2O Contained Oxidation Tonnes Li2O % Metal (t) Inferred Fresh 980,000 1.4 14,000 Indicated Fresh 820,000 1.5 12,600 Measured Fresh 1,090,000
Slide 21: BP33 – High-grade and expanding
For personal use only BP33 – High-grade and expanding 55m at 2.0% Li 2O spodumene pegmatite intersection Wide and high-grade lithium assays returned from drilling at BP33 prospect delivers spodumene intersection amongst the best in Australia: • 75m @ 1.68% Li 2 O from 210m*: • Including 55m @ 1.97%
Slide 22: Resource growth potential
For personal use only Resource growth potential New high-grade hits demonstrate potential to grow Mineral Resources Carlton Prospect – Better intersections include: • 16m @ 1.79% Li 2 O from 84m (NRC015) • 21m @ 0.89% Li 2 O from 113m (NRC027) Hang Gong drill results highlight potential for shallow-
Slide 23: Darwin Port
Darwin Port For personal use only Heads of Agreement signed Core has agreement with Darwin Port to ship 1Mtpa of spodumene concentrate Darwin Port is Australia’s nearest port to China East Arm Wharf facilities at Darwin Port are well suited to handle potential future production from Core’s lithium p
Slide 24: ASX lithium sector comparison
For personal use only ASX lithium sector comparison 1,600 Producers 1,400 Market Capitalisation (AUD M) Explorers/Developers 1,200 (17-Sep-2018) 1,000 800 600 400 200 - MIN PLS GXY ORE AJM TAW* NMT* GSC KDR AGY AVZ PLL BGS PSC SYA EMH CXO INF CORE EXPLORATION | ASX:CXO *TAW 50%, NMT 14% 24
Slide 25: A first quartile project
For personal use only A first quartile project The Finniss Project ticks all of the right boxes as a high-quality lithium project 1st 1st 1st High grade Low capital intensity Low operating costs 1st quartile grade of 1st quartile $4,500/tpa 1st quartile C1 opex of 1.5% Li2O concentrate US$230/t conc
Slide 26: On a pathway to production
For personal use only On a pathway to production New lithium province Best logistics chain 01 Unlocking the Bynoe Pegmatite Field 04 Excellent infrastructure and located close to Asian customers Low risk Funding secured 02 Conventional open pit mining with 05 US$20m from Yahua and US$35m* simple met
Slide 27: Thank you
For personal use only Thank you For more information: Stephen Biggins Managing Director +61 8 8317 1700 For broker and media enquiries: Warrick Hazeldine +61 417 944 616 Andrew Rowell +61 400 466 226 Cannings Purple CORE EXPLORATION | ASX:CXO 27