Slide 1: Forsys Metals Investor Presentation
Forsys Metals Investor Presentation Q2 2015 Marcel Hilmer, CEO TSX: FSY | FSE: F2T | NSX: FSY
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Some of the statements contained in the following material are forward looking statements and not statement of facts. Such statements are based on the current beliefs of management, as well as assumptions based on management information currently available. Forward looking
Slide 3: Advancing Africa's most compelling uranium project
Advancing Africa’s most compelling uranium project Namibia Investor Presentation | Q2 2015 | Page 3
Slide 4: Norasa: A unique project and opportunity
Norasa: A unique project and opportunity • 91Mlbs of U308 Reserves at 200ppm • 115Mlbs of M&I Resources + 11Mlbs of Inferred of Resources Large U308 Project • Long life mine with targeted annual production of 5.2Mlbs • US$45M in exploration and development expenditure to date • US$384M NPV post-tax
Slide 5: Capital Structure
CAPITAL STRUCTURE Forsys Metals Shareholder Base Shares Outstanding* 119.3 M 1% Insiders Options* 4.1 M Fully Diluted* 123.4 M 33% Retail Cash** $3.1M 66% Share Price* $0. 20 Institutional 12 months range $0.15 -$0.60 Avg. daily volume 3 Mths 24 K Market Cap (diluted) CAD $25 M * As at January 14, 2
Slide 6: Uranium Recovery Underway
URANIUM RECOVERY UNDERWAY China India Russia U.S.A South Korea World Total* Under Construction 27 6 9 5 5 70 Planned 64 22 31 5 8 183 Proposed 123 35 18 17 311 Total 204 63 58 27 13 564 Operable 22 21 34 99 23 437 Growth led by 564 New emerging reactors to countries without be built or domestic supp
Slide 7: Uranium Positive Fundamentals
URANIUM POSITIVE FUNDAMENTALS Forecast trend drivers: • Major global nuclear power expansion (30% growth by 2020) • Japan reactor re-starts • Looming supply imbalance • Demand for affordable and clean electricity • Global power consumption growing 4% p.a. Long-term spot price forecast: $66/lb Invest
Slide 8: Namibia: Proven Uranium Jurisdiction
NAMIBIA PROVEN URANIUM 5 th JURISDICTION largest global producer of uranium • Pro-business, stable democracy • Fair and balanced tax code • Metals: uranium, gold, diamonds, zinc, copper and 11.5% GDP derived from lead mining Investor Presentation | Q2 2015 | Page 8
Slide 9: Norasa | Ideal Location
NORASA | IDEAL LOCATION N NORASA URANIUM PROJECT AREVA’S TREKKOPJE MINE ARANDIS RIO TINTO’S ROSSING MINE NAMIBIA PALADIN’S Mine Sites SWAKOPMUND LANGER HEINRICH MINE Towns 35km from Rio Tinto’s Rossing Mine Investor Presentation | Q2 2015 | Page 9
Slide 10: Infrastructure: #1 in Africa
INFRASTRUCTURE: #1 IN AFRICA* • Short and medium term supply of water from Areva’s desalination plant Water Supply • NamWater’s own desalination plant to provide long term requirements of up to 20 million cubic metres per annum • Namibia signed electricity import agreement with Mozambique in 2013 fo
Slide 11: Norasa Project | World Class Resources and Reserves
NORASA PROJECT | WORLD CLASS Resources Reserves Total M&I: 115 Mlbs* Total P&P: 91 Mlbs* Grade: 197 ppm Grade: 200 ppm U 3O 8 • Consolidation of 3 zones: Valencia Main / Satellite Pit & Namibplaas • Estimated Inferred Resource: 26Mt grading 200ppm for 11Mlbs of U3O8 • Open pit environment * Total Me
Slide 12: Norasa in Perspective: Top Annual Production
NORASA IN PERSPECTIVE Future Global Producer Top 6 annual 18.0 16.0 14.0 12.0 10.0 16.6 M/Lbs 8.0 6.0 6.9 7.5 6.8 production 4.0 2.0 0.0 4.3 4.4 4.7 5.0 5.3 5.9 in M/Lbs U3O8 Data from the World Nuclear Association and Forsys NI 43-101 Technical Report March 2015 Investor Presentation | Q2 2015 | Pa
Slide 13: Norasa: Compelling Economics
Norasa: Compelling Economics (US$) 1 2 2010 2015 $245m $383m Post-tax NPV Post-tax NPV $36.43/lb $32.96/lb Cash Costs 3 Cash Costs 3 1 Snowden, Valencia Uranium (Pty) Ltd: Addendum to June 2009 Technical Report; Project No 696 dated January 2010 2 Compliant NI 43-101 Technical Report released on Mar
Slide 14: Norasa | 2015 Definitive Feasibility Study
NORASA | 2015 Definitive Feasibility Study* * 2015 NI 43-101 Technical Report released on March 16, 2015 and available for download on www.sedar.com. See also Appendix and News Release: March 16, 2015 for details Investor Presentation | Q2 2015 | Page 14
Slide 15: Valencia Zone | Fully Permitted
VALENCIA ZONE | FULLY PERMITTED Permit Summary Permit Issued By Status Mining Licence (ML149) Ministry of Mines and Energy Accessory Works Ministry of Mines and Energy Environmental Clearance —Valencia Village Ministry of Environment and Tourism Environmental Clearance Ministry of Environment
Slide 16: Norasa Project Schedule
NORASA PROJECT SCHEDULE Investor Presentation | Q2 2015 | Page 16
Slide 17: Senior Management
SENIOR MANAGEMENT Marcel Hilmer 30 years of senior management experience with global public and private organizations, specifically with international mergers and CEO & Exec. Director acquisitions in Africa, Europe, Asia and Australia. A long standing fellow of the Institute of Chartered Accountants
Slide 18: Directors
DIRECTORS Martin R. Rowley Graduated from the University of Western Australia with a Bachelor of Commerce degree in 1975. He worked as executive assistant to Independent Director & the Board of Directors of a large Australian public company from 1980 to 1984. He then established his own resource con
Slide 19: Valuation Against Peers
VALUATION AGAINST PEERS 3.0 $2.60 2.5 EV/lb ($) 2.0 1.5 $1.20 $0.96 Average 1.0 $0.69 $0.52 $0.82/lb 0.5 $0.23 $0.21 $0.17 0.0 DML.T KIV.V MGA.T UEX.T LAM.T DYL.AX FSY.T BAN.T Current EV and expected sector recovery provide attractive entry point Investor Presentation | Q2 2015 | Page 19
Slide 20: Forsys Investment Summary
Poised to capitalize on emerging uranium sector recovery Mining friendly jurisdiction Forecast annual production of 5.2Mlbs of uranium FORSYS Updated Feasibility Study completed Q1/15 INVESTMENT Large Reserves and strong economics in a low cost SUMMARY environment Advancing towards produ
Slide 21: Contact Information
Australian Representative Office CONTACT Marcel Hilmer, CEO 18 Richardson Street INFORMATION West Perth WA 6005 +61 (0) 8 9426 6400 info@forsysmetals.com Namibian Operations Dag Kullmann, General Manager 1st Floor, Makarios Centre Cottage Avenue Swakopmund +264 (0) 64 402 772 kullmann@forsysmetals.c
Slide 22: Appendix - Norasa
ol ~~ — 2 ae : On ITY NY A AS ~— a? ,
Slide 23: Resources & Reserves
RESOURCES & RESERVES Resources Reserves • Measured and Indicated Resources based on updated and released Estimate of Resources – February 2015. Resources are reported inclusive of Reserves. • Reserves based on updated and released Estimate of Reserves – February 2015. Cut-off grades of 100ppm for Va
Slide 24: Open Pit Designs
OPEN PIT DESIGNS Valencia pit design, isometric view with the Namibplaas pit design, isometric view with higher grade resource blocks within the pits. the higher grade resource blocks within the (view NNE) pit. (view N) Investor Presentation | Q2 2015 | Page 24
Slide 25: Norasa - DFS KPIs
NORASA - DFS KPI’s* Capital Expenditure Operating Costs Planned Annual Uranium Production Investor Presentation | Q2 2015 | Page 25 * 2015 NI 43-101 Technical Report released on March 16, 2015 and available for download on www.sedar.com. See also Appendix and News Release: March 18, 2015 for details