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“ubi est squales est ære”

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1 “ubi est squales est ære”
ZincOx Resources plc Corporate Overview February 2013 Using today’s technology to make yesterday’s waste into tomorrow’s resource “ubi est squales est ære”

2 Disclaimer This document is for informational purposes only and must not be used or relied upon for the purposes of making any investment decision or engaging in any investment activity. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation, nor on assumptions made as to its completeness. No representation or warranty, express or implied, is given by ZincOx Resources plc or any of its advisers, directors, officers, employees or agents, as to the accuracy, fairness or completeness of the information or opinions contained in this Presentation and no liability is accepted for any such information or opinions (which should not be relied upon) or for any loss howsoever arising, directly or indirectly, from any use of this document or its contents or information expressed in the Presentation. The information contained in this Presentation is subject to amendment, revision and updating in any way without any notice or liability to any party. Certain statements in this document relate to the future, including forward looking statements including but not limited to those with respect to the financial position and strategy of the Company, the price of zinc, the estimation of mineral resources and reserves, the realisation of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. These forward looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause the actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such statements. Such risks, uncertainties, assumptions and other important factors include, among other things, general economic conditions, exchange rates, interest rates, the regulatory environment, structural changes in the industries in which the Company operates, competitive pressures, selling price and market demand. The forward looking statements in this document reflect views held only as of the date of this document and the Company expressly disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.

3 Business Overview Iron bearing product  Sold to Steel Mills
Zinc rich steel industry waste (EAFD) Free ZincOx Recycling Plant Iron bearing product  Sold to Steel Mills (10% Revenue) Zinc bearing product Sold to Zinc Smelters (90% Revenue) Game Changing Technology Global Roll-outs planned First Plant in S. Korea Production ramping up 3

4 Corporate Overview History 95% of zinc comes from sulphide ore deposits ZincOx set up (1998) to develop non-sulphide zinc mines Each one different – bespoke solution Exceptional technical team, >128 years of zinc experience Technology driven but not technology provider Track record in development of game changing technology Modify existing technology, not “black box” Objective: To become the largest and most sustainable zinc recycler Status HQ in Surrey (7 - strategy, finance, etc) Technical support in Belgium (12 - technical and development) Regional offices: USA (5), Thailand (2), Korea (5578) AiM quoted 113 million shares (fully diluted) 4

5 FEED - Electric Arc Furnace Dust (EAFD)
Steel produced by: 1. Reduction of iron ore in Blast Furnaces (e.g.Posco) Recycling scrap in Electric Arc Furnaces (EAF) Electric Arc Furnaces generate waste Dust (EAFD) Scrap contains steel that is increasingly galvanised (zinc coated) During iron melting zinc is driven off into the EAFD as an oxide Dust contains: zinc: % (average mine: 5-6% zinc) iron: % cadmium, lead: <2% (harmful elements = Hazardous Waste) Korea, strictly controlled  landfill (disposal fee) 5

6 TECHNOLOGY – Rotary Hearth Furnace (RHF)
Based on established (“iron making”) technology modified to optimise for zinc recovery and energy efficiency Unlike existing processes It produces no waste Has more product revenue Double Breakthrough  Environmentally superior  Economically superior (no subsidy required) 6

7 RHF – Feed & Products NO WASTE RHF Zinc Smelter Electric Arc Furnace
HZO Zinc Concentrate 58% zinc + lead + salts Briquettes EAFD (83%) coal (14%) binder (3%) heat gas 27 meters NO WASTE RHF 1,300oC solid ZHBI Iron Product 50% iron 50% slag EAFD Electric Arc Furnace 7

8 Korean Recycling Plant
KRP Korean Recycling Plant 8

9 Korean Scrap recycling
No. 2 scrap importer No. 1 concentration of scrap recycling Steady growth 9

10 600,000t zinc in conc imported per annum
South Korean Recycling Project Until ZincOx, EAFD has been landfilled ZincOx Supply Agreement 10 year contracts with all steel recyclers 400,000 tpa 23.1% zinc EAFD only paid for at high zinc price Transport paid by mills at low zinc prices Strong Support Korea Iron and Steel Association Zinc Industry Government Foreign Investment Zone Status Years 1-5, tax free (Years 6-7, 11% tax) Tax free import of capital goods Site Lease Government purchase site, US$ 20 million 50 year renewable lease, 5 years rent free 100 km KRP 92,000 tpa zinc in conc 100,000 tpa Fe in ZHBI Korea Zinc smelter 600,000t zinc in conc imported per annum Scrap Recycling Plants ( EAFD generation) 101 10 10

11 KRP 1 and 2 11

12 KRP - Development Plan 12

13 KRP1 Plant Layout View 1 View 2 13

14 KRP Construction 12 months construction Completed on schedule and budget >500,000 man hours No lost time accidents 14

15 Korean Recycling Plant January 2012
Hot briquetting tower Briquetting tower Mega-silo Gas handling ZHBI storage RHF EAFD silos Coal pulverising Workshop Office 15

16 Zinc Oxide Concentrate
First Zinc Concentrate (27 April 2012) Zinc Oxide Concentrate (HZO) Iron Product (ZHBI) 16 16

17 KRP Production Status -1
Process Confirmation Zinc recovery rate 89-94% (target: 97%) Zinc concentrate grade 63%-66% (target 58%) Iron metallisation 70-85% (Target 80%-85%) Sales All zinc concentrate sold to Korea Zinc Iron product (ZHBI) undergoing consumer trials Outstanding Long term remedial action for heat exchanger 17 17

18 Production Ramp Up, 6/12 – 1/13 18 18

19 ZincOx long term zinc price
Consensus long term zinc price ZincOx long term zinc price zinc price 12/2/13 Confidential 19 19 19

20 KRP1 Cash Flow Estimate (in full production)
Total Revenue Zinc Revenue Operating Cost EBITDA ZHBI (iron) Revenue 20 20 20

21 KRP 2 Status Basic engineering study completed.
Savings: Mega silo, infrastructure, HBI tower, offices, storeroom, control room, lab Additional cost: New: RHF, briquetters, mixers, foundation work Cost US$ million Detailed engineering commenced Standard Chartered Bank mandated Production H1 2014 21 21

22 Global Roll-Out 22 22

23 Global Opportunity 1/3 of steel produced by recycling scrap EAFD contains zinc, 18-24% (average mine: 5-6% zinc, underground) >6,000,000 tonnes of EAFD produced annually from about 1,000 sites =1.3 MMt Zn pa (zinc production 12 MMt pa) Contains Cd, Pb Hazardous  Landfill or  Recycling. Current technology: less profitable generates waste (no iron product)  needs subsidy (>US$80/t?) Developed countries, landfill expensive  mostly recycled Developing countries, landfill cheap  landfilled 50% of EAFD  landfill (2008) ZincOx’s “game changing” technology works without subsidy. Transforms waste into a resource 23

24 Target Regions 200/300 400/400 200/ 1500 200/1200 200/350 200/ 400 200/200 200/400 Target Regions Ktpa RHF potential/EAFD prodn. Advanced Other New 51% JV 24

25 Russian Joint Venture 51% ZincOx
49% Magnezit (Ural Recycling LLC) Major magnesite mine, at Satka (since 1901) Largest refractory producer in FSU 1.5 million tonnes per annum 75% to steel industry, of which 25% to Electric Arc Furnaces Magnezit recognised superiority of ZincOx technology approached ZincOx to form JV visited KRP in May, CEO plus senior management team Work Programme 2012/13 Project Definition 2013/14 Bankable Feasibility Construction Production 25 25

26 Growth Potential ARP - Turkey ARP - Turkey 200k 200k 26

27 Growth Potential ARP - Turkey SEARP - Thailand 200k 200k 200k 27

28 Short term (2013) objectives
KRP1 Full capacity Iron product sales KRP2 Financing Development commences Plant 2 Environmental permitting EAFD contracts Plant 3 Environmental permitting 28 28

29 Summary Focused on Korean Recycling Plant 400,000 tpa EAFD 10 year supply agreed (23.1% zinc) Phase 1 to produce 76,000tpa zinc oxide concentrate Ramping up from May 2012 Full year EBITDA US$31 million pa (zinc = US$2,250/t) Phase 1+2 to produce 152,000 tonnes of zinc oxide concentrate Q2 2014 EBITDA US$53 million per annum (zinc = US$2,250/t) Excellent Additional Growth Potential Plans to “roll out” concept in other countries Using today’s technology to make yesterday’s waste into tomorrow’s resource 29

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