Black Rock Mining Limited · ASX:BKT

Black Rock Mining — Mining Journal Select, Sydney 2020

35 slides from Black Rock Mining's conference presentation, Mar 19, 2020

1. Slide 1: Shareholder Presentation ASX Announcement

   ASX ANNOUNCEMENT 19 March 2020 SHAREHOLDER PRESENTATION Tanzanian graphite developer Black Rock Mining Limited (BKT: ASX) (“Black Rock” or “the Company”) is pleased to attach its most recent shareholder and investor presentation. This presentation was due to be For personal use only presented at the

2. Slide 2: About Black Rock Mining

   ASX ANNOUNCEMENT 19 March 2020 About Black Rock Mining Black Rock Mining Limited is an Australian based company listed on the Australian Securities Exchange (ASX:BKT). The Company has a 100% interest in the Mahenge Graphite Project (the "Project") located in Tanzania. The Project has a JORC complian

3. Slide 3: Black Rock Mining and the Mahenge Project

   Black Rock Mining and the Mahenge Project Best-In-Class Graphite Mine Development For personal use only Mining Journal Select, Sydney March 2020

4. Slide 4: Important notices

   Important notices This presentation has been prepared by Black Rock Mining Limited (Black Rock or the Company). For personal use only The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which

5. Slide 5: Black Rock at a glance / Capital structure

   Black Rock at a glance Capital structure Emerging premium graphite player ASX ticker BKT For personal use only Share price (9 March 2020) $0.033 Australian-listed company (ASX: BKT) Shares on issue 628.9 M 100%-owner of Mahenge Graphite Project Options and performance rights 69.0 M Market capitalisa

6. Slide 6: Board

   Board The leaders John de Vries, Managing Director and CEO  Mining Engineer with over 35 years’ experience in mine development and operations; professional experience to deliver spans Africa, the Pacific, the Former Soviet Union, North and South America and Australia For personal use only  Previou

7. Slide 7: What has been learnt?

   What has Financing requires preparation Relatively small terminal markets • Economies-of-scale disrupt markets and are counter- been learnt? For personal use only In our case, this started with the DFS productive and pilot plants • Little intermediation - no hedging – capital investors have no offse

8. Slide 8: What we have delivered to date

    Largest pilot plant run of any graphite development project globally What we have  Highest TGC* purity achieved at commercial scale through simple flotation delivered to For personal use only  Diverse portfolio of credible offtake partners date  Detailed offtake pricing framework agreed  Right

9. Slide 9: A snapshot of the Mahenge Graphite Project

   A snapshot of the Mahenge Graphite Project Simple open pit mine development with outstanding forecast returns For personal use only US$1.2B 45% 83ktpa Post-tax, ungeared, real NPV10 Post-tax, ungeared, real IRR Phase 1 output (1Mtpa ROM) 95 – 99%+ TGC purity US$116M 350ktpa 59% +80 mesh, 41% -80 Pha

10. Slide 10: Deep work at commercial scale

     Graphite is far from homogeneous Deep work at  We have done the work needed to truly understand our deposit properties, commercial mine and process parameters, and key product streams For personal use only  Our testwork results have been delivered at commercial scale scale  Two major pilot plan

11. Slide 11: A small, sustainable footprint with large impact

    A small,  Resettlement Action Plan (RAP) sustainable ‒ Ongoing, relationship-led, well supported by affected people ‒ Front-end strategy of community engagement well received For personal use only footprint with  Logistics large impact ‒ Road/rail combination reduces vehicle risk ‒ Rail access to

12. Slide 12: Graphite market dynamics

    Graphite market For personal use only Battery 2020 Electrification technology dynamics Intergenerational life = competitive advantage of transport Macro economics = competitive advantage Black Rock is Emerging tech such as Manufacturers developing Graphene aligned to how products the market is 91 Gr

13. Slide 13: Black Rock and the Mahenge Project

    Black Rock and the Mahenge Project The leading graphite development proponent For personal use only  Simple open pit project with outstanding forecast returns  Sector-leading product purity and residual chemistry proven at commercial scale  Premier project location and logistics  Risk-appropriat

14. Slide 14: John de Vries, Managing Director and CEO

    For personal use only John de Vries Managing Director and CEO T: +61 438 356 590 E: jdv@blackrockmining.com.au A: 45 Ventnor Avenue West Perth WA 6005 www.blackrockmining.com.au

15. Slide 15: Appendix A: The Premier Graphite Exposure

    Appendix A: For personal use only The Premier Graphite Exposure

16. Slide 16: Black Rock: The premier graphite exposure

    Black Rock: The premier graphite exposure A world-class deposit with a superior development strategy For personal use only 01 Upstream focus with highly economic mine project 06 Premier location and logistics options 02 Deep evaluation work at real commercial scale 07 Fit-for-purpose project executi

17. Slide 17: Upstream focus with highly economic mine project

    01  Core upstream, mine development strategy at Mahenge  Strongly differentiated from many of our graphite development peers Upstream For personal use only  Key competitive advantage is our resource and its properties focus with  Focussed on where our experience and expertise lets us extract val

18. Slide 18: Deep work at real commercial scale

    02  Graphite is far from homogeneous  We have done the work needed to truly understand our deposit properties, Deep work mine and process parameters, and key product streams For personal use only  Our testwork results have been delivered at commercial scale at real  Two major pilot plant runs to

19. Slide 19: Leading product purity and residual chemistry

    03 Leading product purity and residual chemistry For personal use only A critical differentiator Product concentrates TGC range (%)  No overprint mineralisation = ability to deliver superior 100.0% 99%+ product purity and residual chemistry 99.0% 98.0%  Enables 99%+ TGC concentrate purity with sol

20. Slide 20: Sensible market entry and growth strategy

     Deep pilot plant testing via composite orebody sampling – superior process 04 de-risking and highly representative product samples  Sensible Module 1 entry size (~85ktpa): limited enough to allow product Sensible For personal use only market integration but significant enough to deliver meaningfu

21. Slide 21: Realistic, transparent price views

    05  Balanced approach relative to peers ‒ Lower relative large flake prices given less liquid markets and Realistic, significance to basket price calculation For personal use only ‒ Higher relative medium/fine flake prices given observed purity premium transparent and Mahenge concentrate grades pri

22. Slide 22: Premier location and logistics

    06  Northern location of Mahenge offers significant competitive cost advantage  Proximity and access to rail and major port at Dar es Salaam Premier For personal use only  Dar es Salaam the premier coastal export option location and ‒ High-volume container port, superior logistics, no seasonal in

23. Slide 23: Fit-for-purpose project execution plan

    07 Fit-for-purpose project execution plan For personal use only Low risk build and a plant design dedicated to product consistency  Major fabrication of plant components prior to shipping and on-site construction  Initial diesel genset power generation to minimise start-up and early supply risk 

24. Slide 24: Responsibly sourced, sustainable graphite

     Equator Principles framework fully employed 08  Complete traceability of supply chain and proof of ethical sourcing Responsibly For personal use only  Strong community support and predominant use of local workforce  Access to hydro grid power (low emissions footprint) sourced,  Large grind siz

25. Slide 25: Blended, risk-adjusted finance process

    09  Targeting a blended project financing model  Matching risks to participants best placed to manage them Blended, For personal use only  Key potential finance stakeholders include EPC vendor, offtake risk- counterparties and Tanzanian government  ICA Partners mandated as finance adviser adjust

26. Slide 26: Superior stakeholder engagement

    10  Focus on building appropriate, long-term sustainable relationships  Tanzania remains an excellent domicile – stable and LT conflict-free Superior For personal use only  All Mahenge permits received under new Mining Code requirements: stakeholder ‒ Environmental permit and Mining Licence(s) ‒

27. Slide 27: Appendix B: Mahenge Project Detail

    For personal use only Appendix B: Mahenge Project Detail

28. Slide 28: Mineral Resource and Ore Reserve estimates

    Mineral Resource and Ore Reserve estimates For personal use only Contained Category Tonnes (Mt) Grade (%TGC) Graphite (Mt) Ore Reserves Proven 0 0 0 Probable 69.6 8.5 6.0 Total Ore Reserves 69.6 8.5 6.0 Mineral Resources Measured 25.5 8.6 2.2 Indicated 88.1 7.9 6.9 Total Measured and Indicated Resou

29. Slide 29: Enhanced DFS: Projected economics

    Enhanced DFS: Projected economics For personal use only Financial performance summary Unit LOM Project life Years 27.5 Operating life Years 26.0 Total LOM net revenue US$M, real 9,619 Graphite price (real) US$/t 1,301 Total project development capital costs * US$M 337 C1 cost: real (including withho

30. Slide 30: Enhanced DFS: Forecast cashflow profile

    Enhanced DFS: Forecast cashflow profile Mahenge Graphite Project: 4-Phase Option Cashflow Profile For personal use only 400 Project Net Cashflow Post-Tax Project Net Cashflow Pre-Tax 350 6,250 Project Net Cashflow Pre-Tax Cumulative Project Net Cashflow Post-Tax Cumulative 300 5,250 Cumulative Cashf

31. Slide 31: Enhanced DFS: Mining profile

    Enhanced DFS: Mining profile For personal use only Following release of the Enhanced Definitive Feasibility Study (DFS) on the Mahenge Graphite Project in July 2019 (see Black Rock ASX release dated 25 July 2019, Mahenge Enhanced DFS with Executive Summary), Black Rock confirms that it is not aware

32. Slide 32: Enhanced DFS: Process flowsheet

    Enhanced DFS: Process flowsheet For personal use only Following release of the Enhanced Definitive Feasibility Study (DFS) on the Mahenge Graphite Project in July 2019 (see Black Rock ASX release dated 25 July 2019, Mahenge Enhanced DFS with Executive Summary), Black Rock confirms that it is not awa

33. Slide 33: Enhanced DFS: Operating cost estimates

    Enhanced DFS: Operating cost estimates For personal use only Onsite power Grid power Cost Unit generation (rental) (TANESCO) Charge to provide services (fixed cost) US$/month 176,000 70,118 Power supply (variable cost) US$/kWh 0.263 0.067 LOM average Area US$M pa US$/t ore feed US$/t graphite produc

34. Slide 34: Enhanced DFS: Capital cost estimates

    Enhanced DFS: Capital cost estimates* For personal use only Stage 1 Stage 2 Stage 3 Stage 4 Total Area (WBS Level 1)* '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ Mining 10,165 - - - 10,165 Ifakara 1,366 1,041 727 682 3,816 Infrastructure 14,315 3,325 53,705 40,976 112,321 Process plant 50,877 45,30

35. Slide 35: Enhanced DFS: Graphite pricing (at 98% LOI)

    Enhanced DFS: Graphite pricing (at 98% LOI) For personal use only Enhanced DFS Segment pricing Basket weight Shipping Channel & agent Contract discounts Basket FOB price deck segments (US$/t) (%) (US$/t) (US$/t) (US$/t) (US$/t) (Mesh #) +32 1,579 5 1.65 1.97 1.97 73 +50 1,449 18 5.96 6.52 6.52 242 +

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