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(Incorporated in Cayman Islands with Company Number CD246747) CSS Annual Investor Conference Gold Production and Exploration Philippines 21 May 2014 Presented.

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Presentation on theme: "(Incorporated in Cayman Islands with Company Number CD246747) CSS Annual Investor Conference Gold Production and Exploration Philippines 21 May 2014 Presented."— Presentation transcript:

1 (Incorporated in Cayman Islands with Company Number CD246747) CSS Annual Investor Conference Gold Production and Exploration Philippines 21 May 2014 Presented by: David Thompson, Chief Financial Officer

2 Notice to Recipient Confidential Disclaimer All information, including statements of fact, contained in this presentation have been obtained and compiled in good faith from sources believed to be reliable. However, no representation or warranty, express or implied, is made by Phigold Ltd with respect to the completeness or accuracy of its contents, and it is not to be relied upon as authoritative and should not be taken in substitution for the exercise of reasoned, independent judgment by you. Recipients are urged to base their investment decisions upon such investigations as they deem necessary. The analysis contained herein is for the exclusive use and benefit of Phigold Ltd and to the extent permitted by applicable law, no liability whatsoever is accepted by Phigold Ltd for any direct or consequential loss arising from the use of this document or its contents. The analysis contained in this document is based on numerous assumptions; different assumptions could result in materially different results. Any valuations, projections and forecasts contained herein are based on a number of assumptions and estimates and are subject to contingencies and uncertainties. The inclusion of any such valuations, projections and forecasts in this report should not be regarded as a representation or warranty by or on behalf of Phigold Ltd or any person or entity within PhigoldLtd that such valuations, projections and forecasts or their underlying assumptions and estimates will be met or realized. Past performance is not a reliable indicator of future performance. Commodity prices, interest rates, foreign currency exchange rates may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities whose values are influenced by the currency and commodity of the underlying assets, effectively assume currency and commodity price risk.

3 The Philippines o The Philippines’ mineral wealth is due to its position on what is known as the “Belt of Fire”, a fault-line stretching across the islands of Luzon and Mindanao. The Belt passes directly through PhiGold’s area of interest. o The Agusan District, East of Mindanao, where the Company’s assets are located, is one of the prolific gold districts of the Philippines. o Mining operations are at surface and mining is being utilised using environmentally friendly gravitational concentration techniques. o Project has been materially de-risked play with strong management and opportunity to expand asset base across highly mineralised underdeveloped region. o JORC compliant resource base and opportunity to leverage acquisitions in an under-valued marketplace.

4 o PhiGold was incorporated in 2008 to acquire, develop and mine precious metals, with a focus on the Philippines. o The company has a JORC and NI-43-101 compliant resource base of 271,932 ounces. o Test production has generated approximately US$1m of gold sales to the Banco Sentral Ng Pilipinas. o Good economics of scale, with the cost of production of US$600 an ounce at full production. o Barobo has a NPV10 of US$78 Million at full capacity. o Experienced mining team with considerable experience in the Philippines. o Further significant ‘blue sky’ assets under evaluation. o Assessment of listing under way. Overview

5 Aggregate gold sales of $1 million since test production commenced from sale of 755 ounces Recent equipment upgrade to 100 tonnes per hour completed rated capacity and successfully tested with test pit ore Approvals to mine first main pit at Barobo pending government approval. Further funding might be required depending on outcome of discussions Potential to increase capacity and output to 600 tonnes per hour Environmental clearance issued for the processing of up to 3m tonnes per year Project to qualify for tax incentives due to environmentally friendly gravitational mining techniques ‒ PhiGold has a 100% chemical free process Current Production at Barobo

6 Schematic of current Equipment at the mine site

7 Mining Pit A

8 Processing Operations

9 Pouring of Gold at the Company’s own processing facilities

10 Gravity concentration Ore excavation Gold Sale Gold Pour o Backhoes excavating earth o Trucks transporting ore to stockpile o Trommel feeding gravity concentrator o Plumbing to water well o Mains electricity o Laboratory: o Assay equipment o Micro-refinery o To Bank of Philippines (Mindanao) o Export market Gold Extraction o Concentrate moved from site to production area o Extraction of gold using reverse spiral helix From Ore Excavation to sale of Gold to the Philippine Central Bank (all stages of the process completed)

11 0.281 g/t Annual Revenue for 2015,2016,2017,2018 – per annum$33m Annual OPEX for 2015,2016,2017,2018$13m Expected mine life (based on re-investment of profits scenario)8 years Net cash generated over mine life to 2021 assuming base case reserves$129m NPV10% Discount$78m Barobo Production forecast - Note declaration of mining feasibility for main pit mining required

12 Stratos represents a 27 km 2 concession area located near existing mine and on trend with major existing gold mines in the region. It is one of the most substantial mining concessions in the Philippines. Potential exists at Stratos for over 10 million ounces of Gold and 5 Billion pounds of Copper. Assay tests conclude high grade mineralization across the tenement. Current project NPV of US$129m. Stratos is a related party transaction with cross shareholdings and directorships for the management of PhiGold. Strategic acquisition (“Stratos”)

13 Exploration programme at Stratos

14 2014 Drilling programme costs at Stratos

15 “If we make the assumption that alluvial Au mineralization is present within 53% of the total tenement area (both Kandooo + Superfields), we can set a valuation of $72,008,798. With regards to the potential porphyry Cu/Au deposit, If we make the assumption that the average Cu grade is 0.7%Cu, we can valuate the copper deposit as $32,138,453 and the associated Au as an extra $9,376,151. These values add up to $113,523,402 for the entire project – and they are, in my opinion, realistic.“ NPV of Stratos Assets

16 o 165m shares in issue o Last placement price $0.176 o Implied market capitalization of $31 Million o 455 Stockholders o US$13.5 million gross raised since 2009 o Over 22% of the Company stock is with Management o Largest shareholder owns 18% of the stock issued. Share Capital

17 Andrew Mullins (age 33), Chairman and CEO Executive Director and Corporate Secretary of listed Philippines-focused Energy explorer, Forum Energy Plc. (LSE:FEP) a subsidiary of Philex Mining Inc, the Philippines largest Gold producer and ultimate subsidiary of First Pacific Company Inc, a Hong Kong based conglomerate with a market capitalisation of over $10 Billion. Founding shareholder and Chairman and CEO of PhiGold Limited and Stratos Mining Inc, both mining companies operating in the Philippines since 2007 and 2011 respectively. Independent director of Atok Big Wedge Company Inc, a US$2 Billion Mining Company listed on the Philippine stock exchange and FEC resources, Inc. listed on the NSADAQ stock exchange. Directly involved in the raising of over US$100 million equity and debt for primarily mining and energy investments in the Philippines. Negotiated both the listing and sell out of Forum Energy to First Pacific Company during the economics crisis in 2008. Holds B.Eng. (Hons) in Mechanical Engineering from University College London (2001) Ronald Zipagan (age 48), President Geologist with over 25 years experience in minerals and petroleum exploration and production. David Thompson CPA (age 60), Finance Director Over 30 years experience in finance and considerable experience in the Philippines Since 1990 has served in finance roles for many international resources companies including Forum Energy (CFO) and Sea Dragon Energy (CEO). He floated Sea Dragon on the TSX-V in 2008. In 2010 Incorporated Caracal energy with Chad Oil projects. Now listed on LSE with a market value in excess of $1.5 blln. In 2012 Incorporated United Hydrocarbon International Corp. with Oil and Gas assets in Chad and helped to raise over $250 mlln for development. Gerard Mizrahi (age 60), Director Managing Partner, Charles Street Securities Europe LLP Over 35 years experience in private equity investing, banking, investment banking MA Economics, Kings College, Cambridge Management

18 For further information please contact: Andrew Mullins Chairman and CEO Email:andrew.mullins@phigold.comandrew.mullins@phigold.com Office:+632 869 9989 Cell:+639 188 989989 David M. Thompson Finance Director & Company Secretary Email: david.thompson@phigold.comdavid.thompson@phigold.com Office:+632 869 9989 (Incorporated in Cayman Islands with Company Number CD246747)


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