Slide 1: Company Presentation May 2018
AIM/TSX-V: MKA Company Presentation May 2018 Raw Materials and Technology for the CleanTech Revolution
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Mkango Resources Ltd (the “Company” or “Mkango”) solely for its use at informational meetings relating to it or is being delivered for information purposes only to a limited number of persons. By attending the meeting where this
Slide 3: Disclaimer
Disclaimer Group (Pty) Ltd., who is a “Qualified Person” in accordance with NI 43-101 and which was filed at www.sedar.com on December 1st 2015. All of the Qualified Persons referred to above are independent of the Company. Certain disclosures contained in or incorporated by reference into this pres
Slide 4: Rare Earths Geared to EV Growth
Rare Earths Geared to EV Growth Neodymium - key component of rare earth permanent magnet motors for electric vehicles Accelerating EV demand will lead to an increasing neodymium supply-demand deficit Mkango’s Songwe Hill rare earths project perfectly timed for the inevitable crunch point “Tesl
Slide 5: Benefits - Rare Earth PM Motors for EVs
Benefits - Rare Earth PM Motors for EVs Bill of Materials for Comparable Rare Earth Permanent Magnet (PM) and Induction Motors Source: Adamas Intelligence – Spotlight on Dysprosium (2018) Increasing the capacity of a 60-kWh battery by a conservative 5% to compensate for use of an induction motor,
Slide 6: Critical for the Low Carbon Economy
Critical for the Low Carbon Economy EU report (JRC) indicates vulnerability to supply bottlenecks for certain rare earths: Neodymium Praseodymium Dysprosium Source: European Commission JRC report 2016 - Assessment of potential bottlenecks along the materials supply chain for the future deplo
Slide 7: A Unique Investment Opportunity
A Unique Investment Opportunity Advanced stage rare earth project – PFS completed in 2015 (NPV US$345m) Feasibility Study underway – major drilling programme imminent Strategic partner in place – Talaxis: funding and marketing Strong financial position – initial £6m received Jan 2018 Pathw
Slide 8: Company Overview
Company Overview AIM / TSXV: MKA 75.5% 80% Talaxis holds Lancaster Talaxis Maginito Ltd 24.5% of Exploration Ltd holds 20% Maginito (£1m invested to of Lancaster (£5m invested to date by Talaxis) date by Talaxis) Focused on rare earth alloy and Developing the Songwe Hill Rare magnet technologies Ear
Slide 9: Maginito – Downstream Technology
Maginito – Downstream Technology New Mkango subsidiary established in January 2018 to pursue downstream opportunities in the rare earths supply chain Main focus on neodymium alloys, magnet and other technologies geared to accelerating growth in the electric vehicle market Maginito’s first oppo
Slide 10: Funding - Landmark Talaxis Transaction
Funding - Landmark Talaxis Transaction Talaxis Limited is a Noble Group subsidiary focused on resources which are critical to green technology supply chains Talaxis to invest £12 million into Lancaster in two tranches, fully funding the BFS for Songwe, in return for a 49% interest First £5 mil
Slide 11: Corporate Snapshot
Corporate Snapshot Capital Structure AIM: MKA Share Price (02/05): £0.085 / C$0.125 6 month Share Price Shares Outstanding: ~108.7M Warrants: 21.6M @ £0.066 12.0M1 @ £0.066 7.6M @ C$0.60 7.3M @ C$0.15 0.7M @ £0.035 Options: 7.0M @ C$0.06 2.8M @ C$0.07 Fully Diluted: ~168.9M Market Cap (02/05): ~£9.2
Slide 12: A Team with Proven Expertise
A Team with Proven Expertise Technically led team with 12 year track record in Malawi, last 8 years focused on rare earths Strong commitment to the project – same team leading development since project inception Mr William Dawes, Chief Executive Officer & Co-founder BSc Geology, MSc Mineral Explorat
Slide 13: Songwe Hill Rare Earths Project
Songwe Hill Rare Earths Project
Slide 14: Malawi – Low Risk Jurisdiction
Malawi – Low Risk Jurisdiction World class, undeveloped rare earth mineral province New rail corridor unlocking mineral development Politically stable democracy Supportive Government Songwe Hill Uniquely positioned in a rare earths mineral province of global significance 14 Mkango: Raw Mater
Slide 15: Road, Rail and Power Developments
Road, Rail and Power Developments Infrastructure is key for value added rare earths development Mkango: Raw Materials and Technology for the CleanTech Revolution • Corporate Presentation • Q2 2018 15
Slide 16: Songwe Hill Rare Earth Deposit
Songwe Hill Rare Earth Deposit Carbonatite hosted rare earth mineralisation Long mine life of 18 years, with resource upside Simple open pit mining operation Broad mineralised zones as opposed to dykes, veins Potential to expand production above PFS base case 2012 Mineral Resource Estimate
Slide 17: 2015 Pre-feasibility Study
2015 Pre-feasibility Study NPV US$345m and IRR 37% Development CAPEX of US$216m amongst the lowest in the sector for comparable operations 1 A large proportion of the cerium will be selectively removed during the hydrometallurgical process Production of circa 2,841tpy 2 Average annual at full
Slide 18: Initial Phases of BFS Underway
Initial Phases of BFS Underway Metallurgical optimisation Leading consultants and laboratories engaged in Australia and Canada Work programme being scaled up following receipt of Talaxis investment Focused on flotation, hydrometallurgy and acid regeneration Environmental, Social and Health
Slide 19: Drill Programme >5,000 metres
Drill Programme >5,000 metres Target 3 - potential extension of mineralisation under cover Main target - Infill Target 2 - Extension drilling of existing of radiometric Mineral Resource anomaly Estimate - Thorium / potassium radiometrics draped on LIDAR topography for Songwe Hill - Radiometric anoma
Slide 20: MKA Exploration
MKA Exploration
Slide 21: Nkalonje - Rare Earths
Nkalonje - Rare Earths Songwe Nkalonje Located in the same licence area as Songwe, approximately 15km to north west Similar to Songwe, the Nkalonje vent is a steep hill co-incident with distinct radiometric anomaly Rare earth bearing carbonatite dykes at surface suggest potential for underlyin
Slide 22: Thambani - Uranium, Tantalum, Niobium
Thambani - Uranium, Tantalum, Niobium Mkango: Raw Materials and Technology for the CleanTech Revolution • Corporate Presentation • Q2 2018 22
Slide 23: Thambani - High Grade Mineralisation
Thambani - High Grade Mineralisation Thambani uranium mineralisation is hosted in: Assays from the 20 highest grade U3O8 samples from the May 2017 Thambani sampling programme Sample no. U3O8 % Ta2O5 % Nb2O5 % a) main Thambani Massif syenite U3141 3.26 1.90 5.92 gneiss body (widely disseminated) U3
Slide 24: Chimimbe – Nickel, Cobalt, Chrome
Chimimbe – Nickel, Cobalt, Chrome Licence granted in November 2017 - features laterite and saprolite hosted nickel, cobalt, chrome and other mineralisation Significant historical exploration has been completed, including pitting, drilling, resource estimation and metallurgical test work Magnet
Slide 25: Next Steps
Next Steps
Slide 26: Next Steps and News Flow
Next Steps and News Flow Major diamond drilling programme commencing at Songwe within the next month Culminating in resource update, targeted by end 2018 Resource update and signature of definitive agreements trigger further £7m Talaxis investment Completion of feasibility study targeted by
Slide 27: www.mkango.ca @MkangoResources Mkango Resources Ltd
www.mkango.ca @MkangoResources Mkango Resources Ltd +44 (0)207 3722 744 William Dawes (CEO) will@mkango.ca Alex Lemon (President) alex@mkango.ca SP Angel +44 (0)20 3470 0470 Jeff Keating Caroline Rowe Alternative Resource Capital +44 (0)20 7186 9004 Alex Wood +44 (0)20 7186 9001 Rob Collins Blythewe
Slide 28: Corporate Social Responsibility
Corporate Social Responsibility
Slide 29: CSR Initiatives
CSR Initiatives boNGO Worldwide partnership Happy Classrooms project Enhancing 3 local primary schools 24 classrooms painted Annual Scholarship programme Pays Secondary Education Fees for the top 6 Before - An unhappy classroom After - A happy classroom after renovation & painting syllabus o
Slide 30: Flood Response
Flood Response 30 Mkango: Raw Materials and Technology for the CleanTech Revolution • Corporate Presentation • Q2 2018 30
Slide 31: Pigeon Pea Programme
Pigeon Pea Programme Mkango: Raw Materials and Technology for the CleanTech Revolution • Corporate Presentation • Q2 2018 31
Slide 32: Appendix
Appendix
Slide 33: Attractive Product Mix, Enriched in NdPr
Attractive Product Mix, Enriched in NdPr Rare earth oxide REO in conc1 REO in conc tonnes split Lanthanum La2O3 1,075 37.8% Cerium CeO2 341 12.0% Praseodymium Pr6O11 227 8.0% Neodymium Nd2O3 756 26.6% Samarium Sm2O3 114 4.0% Europium Eu2O3 27 0.9% Gadolinium Gd2O3 62 2.2% Terbium Tb4O7 7 0.3% Dyspro
Slide 34: Value Geared to Magnet Rare Earths
Value Geared to Magnet Rare Earths More than 80% of value geared to NdPr and other “Magnet” Rare Earths used in Electric Vehicles, Wind Turbines, HiTech REO in concentrate split by value Yttrium Lanthanum Gadolinium Cerium Europium 2% 5% 2% 1% 8% Terbium 3% Neodymium Dysprosium 53% 12% Praseodymium
Slide 35: Mineral Reserves and Resources
Mineral Reserves and Resources 2015 Pre-Feasibility Study based on 8.5mt Reserve Conservative Mineral Reserve cut–off grade versus pay limit (0.51% TREO) Mineral Reserve based on Indicated Resource only TREO – total rare earth oxides. Mineral Resources which are not Mineral Reserves do not have
Slide 36: Mineral Resource Estimates
Mineral Resource Estimates In-situ Mineral Resource estimates at 1.0% TREO cut–off grade1 In-situ Indicated Mineral Resource at 1% TREO Cut-Off Indicated Million La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 LREO Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 HREO TREO TREO Th U Tonnes ppm ppm ppm ppm p
Slide 37: Mineral Resource Estimates
Mineral Resource Estimates In-situ Mineral Resource estimates at different cut–off grades1 In-situ Indicated Carbonatite Mineral Resource Cut-Off Million La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 LREO Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 HREO TREO TREO Th U %TREO Tonnes ppm ppm ppm ppm ppm
Slide 38: Mineral Resource Estimates
Mineral Resource Estimates REO distribution at different cut-off grades1 In-situ Indicated Carbonatite Mineral Resource - REO Distributions at 0.5%, 1.0% and 1.5% TREO Cut-Offs Cut-Off La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 Total HREO %TREO % % % % %