Mitre Mining Corporation Ltd

Mitre Mining — Cleveland Mining Company — Investor Presentation (February 2015)

34 slides from Mitre Mining's investor presentation, February 2015

1. Slide 1: Emerging low-cost gold producer in Brazil

   Emerging low-cost gold producer in Brazil Doubling production, growing resources and unlocking value in 2015 February 2015 Investor Presentation ASX: CDG

2. Slide 2: Important Information

   Important Information Disclaimer This presentation contains certain “forward‐looking statements”. All statements, other than statements of historical fact, that address activities, events or developments that Cleveland Mining Company Limited (“Cleveland” or the “Company”) believes, expects or antici

3. Slide 3: Investment Highlights

   Investment Highlights An emerging low-cost gold producer in Brazil Gold Production and Growth – Goias State • Premier Gold Mine JV (CDG 50% moving to 60%): low CAPEX operation • Production ramping up • Outstanding expansion potential Iron Ore / Pig Iron – Bahia and Minas Gerais State • Significant m

4. Slide 4: Corporate Overview

   Corporate Overview Strong Board and management with track record of building successful companies ASX Code CDG Board of Directors Shares on Issue ~241.3M Russell Scrimshaw – Chairman Options on Issue ~46M • Ex-Executive Director and Deputy CEO of FMG Share Price $0.05 • Previous executive roles with

5. Slide 5: Crixás Gold Hub – World-Class Address

   Crixás Gold Hub – World-Class Address Underexplored, highly prospective, proven multi-million ounce potential  280km from Brasilia (national capital) – accessed by sealed roads  Safe, mining-friendly area  Located close to mining and farming town with population of 20,000 Anglo Gold Ashanti Serra

6. Slide 6: Premier Gold Mine – Overview

   Premier Gold Mine – Overview The cornerstone of our growth strategy in Brazil  50/50 Joint Venture with Edifica Participações – agreement for Cleveland to move to 60% equity  Mining underway on foundation resource to establish early cash-flow and solid operating base  Production growth during 201

7. Slide 7: Premier – Initial Resource

   Premier – Initial Resource Foundation resource with outstanding growth potential  Foundation Indicated & Inferred Resource of 1.27Mt @ 1.82g/t Au for 74,400oz  Underpins production start-up and investment payback  Early access to high-grade mineralisation  Orebody is outcropping and JORC Tonnes

8. Slide 8: Premier – Staged Development Approach

   Premier – Staged Development Approach Expanding gold production, improving plant efficiency and reliability Stage 1 and 2: Gravity Circuit  40tph processing capacity  Gravity circuit recovering ~65% Au Initial Production  “Build the team, perfect the basics, generate early revenue” (completed) 

9. Slide 9: Premier – Simple Flow Sheet

   Premier – Simple Flow Sheet Low capital costs, simple processing circuit, low operating costs Stage 1 25-30% Au Crush – Grind: Gravity Concentrate To future flotation plant Stage 2 Liberation of gold from concentrate via ILR (65- 70% recovery) Stage 3 65-70%Au Flotation of gravity tailings (~90% rec

10. Slide 10: Premier Production – Enhancement Initiatives

    Premier Production – Enhancement Initiatives Program underway to improve mechanical reliability and double gold production Premier production has been restricted to date due to poor plant reliability. Forecast Future Production Several initiatives have now been (not including expansion of resources

11. Slide 11: Expansion Overview and Valuation

    Expansion Overview and Valuation Plans for expansion of production and forecast financials  Initiatives to increase production volume and reliability at Premier include:  installation of a second, larger ball Mill  expansion and upgrading of the crushing circuit  installation of an additional fl

12. Slide 12: Expansion Capex

    Expansion Capex Low capital cost, staged expansion with ability to deliver significant returns  Planned increase in production Expanded Production Process Flow Sheet to be achieved with following 100 tph Primary 40tph Hammer Mill (Existing - Backup) Crusher (new) CAPEX schedule: Expected delivery F

13. Slide 13: Premier Exploration Targets

    Premier Exploration Targets Multiple exploration targets to be tested by comprehensive exploration program Number Target Au Number (Ounces) of Map of Meters Mths Priority Target Meters Comments Ref. Diamond # Conceptual RC Drilling Drilling Close to mill, ore- Metago Pit 1 1 700 1 body extension, 20

14. Slide 14: Premier Ore-body Extensions

    Premier Ore-body Extensions Immediate targets for mine life growth  Drilling has confirmed continuation of the ore-body under the Metago pit  Drilling, mapping, sampling and historic artisanal miners shafts demonstrate mineralisation continues along strike to the east 14

15. Slide 15: Southern Anomaly

    Southern Anomaly The obvious ‘big’ target  Very large gold-in-soil anomaly  Co-incidental VTEM geophysical anomaly produced by graphitic schist and pyrrhotite  Up to 450m of graphitic schist in initial drill holes – same host rock and structures and Premier and Serra Grande  Visible gold recentl

16. Slide 16: Regional Growth – O Capitão Gold Project

    Regional Growth – O Capitão Gold Project  Site of large artisanal mine JORC Tonnes Grade (gpt Contained Resource Au)* Ounces Gold (~10t of gold extracted) Category Indicated 904,522 1.07 31,158  Two mineralised areas: Inferred 226,804 1.19 8,709  Lavra Indicated + 1,131,326 1.10 39,867  Dona Mar

17. Slide 17: O Capitão

    O Capitão Dona Maria and Lavra – initial targets for production rate increase LAVRA (300 kOz mined historically) DONA MARIA (40 kOz Resource) 500m GARIMPEIRO ACTIVITY  Initial 40,000oz deposit defined at Dona  High grade ore at Lavra near surface Maria  Initial bulk sampling planned due to  +1.7

18. Slide 18: Base Case Forecast Assumptions

    Base Case Forecast Assumptions 100% Basis Units FY2015 FY2016 FY2017 FY2018 LOM/LT  Base case production of 114koz Au Gold Price US$/oz 1,208 1,208 1,208 1,208 1,208 over 3.25 years (base case model Gold Price AUD$/oz 1,555 1,555 1,555 1,555 1,555 Mining does not add extra resource from ROM Ore kt

19. Slide 19: Base Case Key Financials

    Base Case Key Financials  Model shows Cleveland Adjusted for ownership (50% increasing to 60% Units FY2015 FY2016 FY2017 FY2018 of Premier) generates positive operating Revenue A$m 6.0 33.8 35.8 26.3 cash flows of A$2.7M in FY15, Operating Costs A$m -2.6 -8.7 -8.9 -7.6 EBITDA A$m 3.5 25.1 27.0 18.8

20. Slide 20: Base Case DCF Valuation

    Base Case DCF Valuation  Base case DCF(10%) DCF Valuation Control NPV Undiluted Diluted (AUD$ per (AUD$ per (%) (AUD$m) share) share) valuation of Cleveland is Premier* 60% 51.7 0.20 0.17 A$54.1M Corporate -11.1 -0.04 -0.04  A$10M value assumed JV Payments 15.8 0.06 0.05 Tax Shield 1.0 0.00 0.00 f

21. Slide 21: Base Case Sensitivities

    Base Case Sensitivities Share  The adjacent table and Sensitivity Parameter Factor ∆ NPV (A$m) NPV (A$m) Price ($AUD) chart shows that Cleveland Base Case 54.1 0.177 remains robust under a Commodity Price -5% -3.9 50.2 0.194 Commodity Price +5% 1.6 55.6 0.215 range of sensitivities Recoveries -5% -

22. Slide 22: 6-Year Case Forecast Assumptions

    6-Year Case Forecast Assumptions The indicative valuation of the Cleveland is based 100% Basis Units FY2015 FY2016 FY2017 FY2018 LOM/LT on: Gold Price US$/oz 1,275 1,275 1,275 1,275 1,275 Gold Price AUD$/o z 1,555 1,555 1,555 1,555 1,555  applying a DCF methodology; Mining ROM Ore kt 161 720 720 72

23. Slide 23: 6 Year Case Key Financials

    6 Year Case Key Financials Adjusted for ownership and  Cleveland generates inflation Units FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Revenue A$m 6.0 33.8 35.8 40.8 41.8 42.8 positive operating cash Operating Costs A$m -2.6 -8.7 -8.9 -10.1 -10.4 -10.6 flows of A$2.7 million EBITDA A$m 3.5 25.1 27.0

24. Slide 24: 6 Year Case DCF Valuation

    6 year Case DCF Valuation Undiluted Diluted  A$10m value assumed for DCF Valuation Control NPV (AUD$ per (AUD$ per (%) (AUD$m) share) share) exploration upside Premier* 60% 102.1 0.39 0.33 Corporate -17.4 -0.07 -0.06  If Premier’s resource / JV Payments 15.8 0.06 0.05 mine life is extended to 6 Ta

25. Slide 25: 6 Year Case Sensitivities

    6 Year Case Sensitivities Share ∆ NPV NPV  The adjacent tables and Sensitivity Parameter Factor (A$m) (A$m) Price ($AUD) chart present sensitivity Base Case 99.2 0.325 Commodity Price -5% -7.2 91.9 0.355 analysis on the Base Commodity Price +5% 4.9 104.0 0.401 Case NPV around Recoveries -5% -7.2 91

26. Slide 26: Valuation Summary

    Valuation Summary  Peer analysis using an 120 Value ($Am) Low Mid High EV/Resource of A$40/oz 100 A$99m shows a value of A$3 million  NPV of A$54 million 80 A$68m  Based on an Exploration 60 A$56m A$54m Target of 1.9Moz shows a A$52m A$46m 40 value of A$46 million  Upside valuation potential of

27. Slide 27: Iron Ore

    BRAZIL Iron Alliance Crixas Gold Hub @s Mara Rosa ]O Capitao — Goias® @rene | OM @ 7 Brasil, = CLEVELAND MINING COMPANY LTD 27

28. Slide 28: Iron Ore – Bahia and Minas Gerais

    Iron Ore – Bahia and Minas Gerais  Option to acquire 80% interest in 1,264km2 of granted exploration concessions from private Brazilian company BAHMEX  BAHMEX retains 20% interest – former Government executives with significant local experience and strong Government relationships  Plan to “spin-o

29. Slide 29: Bahia Projects – Bahia State, Brazil

    Bahia Projects – Bahia State, Brazil  Multi-kilometre outcropping strike extent identified to date  Orientation drilling completed on 6 targets at Bahia – iron ore intersected Caetité 2 confirmed as priority target  6.5km long anomaly identified in outcrop and geophysics  Magnetite amphibolite 

30. Slide 30: Minas Novas Project – Minas Gerais State

    Minas Novas Project – Minas Gerais State  1,070km2 tenement package  No previous iron ore exploration conducted in the area  3 years’ of surface work by BAHMEX and Coffey Mining Brazil  60-100km of strike defined by geophysics – mapping and drilling confirms anomaly is itabirite iron ore  6 adj

31. Slide 31: Pig Iron – Global Demand & Sintering Plants

    Pig Iron – Global Demand & Sintering Plants Global Demand  Brazil is the world’s largest producer of pig iron: 7Mtpa (3.5Mtpa from Minas Gerais state)  US consumes 60%, China 10%, Taiwan 6%, & Spain & Thailand > 5% each  Brazilian pig iron output has been reducing due to bans on producing charcoa

32. Slide 32: Investment Summary

    Investment Summary  Production continuing to ramp-up from Premier Gold Mine  Production capacity currently ~30oz per day  Circa $A21,000 per day cost of running site  Expansion plan underway to target 150% increase in daily production during 2015  Multi-million ounce potential  Step-out drilli

33. Slide 33: Resources

    Resources Over 110,000 JORC indicated and inferred ounces defined at Premier and Dona Maria Premier O Capitão – Dona Maria Circa 74,000 ounces and open in all directions Circa 40,000 ounces and open in all directions Gold Range Classification Volume Tonnes Gold Grams Ounces Gold - Gold Volume Tonnes

34. Slide 34: Competent Person’s Statement

    Contact: Phone: +61 (08) 6389 6000 Fax: +61 (08) 6389 6099 Email: info@clevelandmining.com.au Corporate Headquarters: Suite 3, 254 Rokeby Road, Subiaco, Western Australia Mailing Address: PO Box 2089, Subiaco, Western Australia, 6904 Web: www.clevelandmining.com.au Competent Person’s Statement The i

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