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Cleveland Mining Company Limited Management, Strategy & Projects August 2013 David Mendelawitz Managing Director ASX CodeCDG.

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Presentation on theme: "Cleveland Mining Company Limited Management, Strategy & Projects August 2013 David Mendelawitz Managing Director ASX CodeCDG."— Presentation transcript:

1 Cleveland Mining Company Limited Management, Strategy & Projects August 2013 David Mendelawitz Managing Director ASX CodeCDG

2 Cleveland Mining Company Limited Important Information 2 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 anticipates will or may occur in the future are forward ‐ looking statements. Forward ‐ looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “target”, “expect”, and “intend” and statements that an event or result “may”, “will”, “can”, “should”, “could”, or “might” occur or be achieved and other similar expressions. These forward ‐ looking statements reflect the current internal projections, expectations or beliefs of Cleveland based on information currently available to Cleveland. Forward ‐ looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by Cleveland with securities regulatory authorities, that may cause the actual results of Cleveland to differ materially from those discussed in the forward ‐ looking statements, and even if such actual results are realised or substantially realised, there can be no assurance that they will have the expected consequences to, or effects on Cleveland. Cleveland expressly disclaims any obligation to update or revise any such forward- looking statements.

3 Cleveland Mining Company Limited Investment Highlights 3  Experienced team with clear strategy & significant ‘skin in the game’  Located in a region with a strong mining culture, large skilled labour pool and extensive mine service providers  Development risk now largely removed with mine ramp up progressing well as the Premier mine transitions into production  Now positioned for game-changing growth through exploration upside and/ or acquisition  Strategy designed to mitigate variable market conditions  Track record of “fast track” success ▲ Location of Cleveland Projects

4 Cleveland Mining Company Limited Why Gold in Brazil? 4 Brazil Traditional mining country Low sovereign risk Acceptable royalties and taxes Low cost energy, labour, on-costs Example Cost BrazilAustraliaCost Difference Truck driver (cost to business) $15, ,000 p.a. 150,000 – 200,000 p.a ≈1000% + Power Source 7c – 15c per Kwh (hydroelectric) +30c (Gas) +50c (Diesel) % Diesel$1.08/L1.42/L≈130% Gold Low barriers to entry High potential profit margin in right jurisdiction Easy to understand Easy to sell Constant strong demand Declining world in-ground resources

5 Cleveland Mining Company Limited Start Small to Build Strong Foundations  Establish strong relationship with local partner – Edificia Participações  Low technical risk development funded by equity to minimise debt servicing pressure  Room to understand environment – what affects budgets and schedules – what can and can’t be done  Time to pull together a team  Sort out teething issues  Strong foundation for growth 5

6 Cleveland Mining Company Limited From Concept to Cash Flows in 3 Years  Starting with no resource, no team, no permits and minimal funds, Cleveland has: Secured projects Identified a resource Designed and licensed the project Built a team and solid understanding of Brazil Established production Secured a growth horizon  Within FY13/14 Cleveland will have: Stabilised production Established profitability Commenced expansion 6

7 Cleveland Mining Company Limited ▲Premier Mine February 2012 ▲Premier Mine June 2012 A Mine Built in Six Months Premier Mine June 2013

8 Cleveland Mining Company Limited Premier Gold Mine 8 Stage 1 (ongoing)  50:50 Joint Venture with Edifica Participações  Mining and production commenced  40tph processing capacity  Installed plant capability to deliver 10,000oz – 20,000oz with current ore (1.0 – 3.0 gt) and 60% recovery.  1.79gt of crushed or containing approx. 60kg of gold on ROM currently being processed. Achieving >60% recovery Stage 2 (Q – Q1 2014)  Introduction of higher-grade material from Premier and O Capitão (3.0 – 10.0 gt)  Addition of cyanide and floatation circuit to increase recovery from 60% to 90%+ Stage 3  Expansion of resources through further drilling and possible acquisition of other gold projects held in immediate region

9 Cleveland Mining Company Limited Easy Mining with Exploration Upside 9  Initial ‘Foundation” Inferred Resource of 1.41 g/t for 89,000 ounces defined to underpin production start and payback of investment  Early access to high grade mineralisation  Ore-body is outcropping and shallow dipping  Open along strike and down dip  Unit repeats below and an order of magnitude thicker  Multi million ounce prospectivity demonstrated through drilling, geophysics, soil sampling and mapping

10 Cleveland Mining Company Limited O Capitão Gold Project 10 Resource expansion potential  Less than 10km from Premier Mine  Site of large artisanal mine (5-10t Au extracted by hand)  Two mineralised areas identified: 1.Lavra 2.Dona Maria  Multiple stacked lodes identified with significant high- grade intercepts, Including: Lavra g/t Au from 44.7m g/t Au from 39.0m Dona Maria 1.01 g/t Au from 51.00m to 62.00m 3.55 g/t Au from 91.00m to 95.40m  Planning for processing at Premier Mine Lavra Dona Maria Premier 9km Dona Maria Lavra

11 Cleveland Mining Company Limited Premier Gold Mine – The Next 18 Months 11 PeriodMilestone Event 3Q2013Resumption of mining and crushing 4Q2013Start of mining of Premier underground 1Q2014Commissioning of cyanide circuit Start of mining of Lavra at O Capitão 2Q2014Start of mining of Dona Maria at O Capitão 3Q2014 Start of mining Premier Pit 3

12 Cleveland Mining Company Limited Multiple Sources of Ore 12  Current production from ROM stockpiles  Open pit mining re- commencing Q4  Relatively low reliance on underground sources

13 Cleveland Mining Company Limited Premier Financial Metrics – Targets 13 Based on 1H2014 production 7,000 ounces per Qtr  Tonnes processed 70,000 / qtr with average head grade 3.22 g/t  Processing recovery at 90%  Brazil C1 cash cost target A$400 per ounce  Australian Head Office expense target A$125 per ounce  Sustaining CapEx and exploration expense target A$100 per ounce  Cleveland JV profit share 70/30 reducing to 50/50 as JV funding debt repaid by Edifica to Cleveland

14 Cleveland Mining Company Limited Growth Potential Gold  Mara Rosa Gold Project  100 km from Crixas  Strike extension of Amarillo Gold Corps 1.2m ounce Posse Deposit Iron Ore  Alliance with BC Iron  3 Projects comprising 80 tenements  Early stage iron ore Exploration on highly prospective ground  Strategically located next to developing Port and Rail Infrastructure 14

15 Cleveland Mining Company Limited Company Overview and Capital Structure 15 Issued and Paid UpNumber Shares Shares on issue 211,486,669 Options Options ($0.20)3,527,000 Options ($0.62)500,000 Performance Options ($ $0.84, against significant progress milestones) 24,540,000 Total Options 28,567,000 Cleveland Mining Company Ltd. (ASX:CDG) Major Shareholders Mrs Sarah L. Mendelawitz 20.93% Mr Wang Zhe6.00% BC Iron (SA) Pty Ltd. 4.39% Finook Pty Ltd3.40% Penwerris Pty Ltd2.56% Share Price$0.13 Market CapA$23m 1-year RangeA$0.07 – 0.95 Cash (at 30/6/13)

16 Cleveland Mining Company Limited Contact Phone: +61 (08) Fax: +61 (08) Corporate Headquarters: Suite 3, 254 Rokeby Road, Subiaco, Western Australia Mailing Address: PO Box 2089, Subiaco, Western Australia, 6904 Web: Competent Person’s Statement The information in this report that relates to Exploration Results is based on information reviewed by David Mendelawitz, who is a Fellow of the AusIMM. Mr Mendelawitz has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Mendelawitz consents to the inclusion of the matters based on his information in the form and context in which it appears. Mr Mendelawitz is employed by Cleveland Mining Company Ltd.

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