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2 Important NoticeBy attending this presentation and/or accepting these slides you agree to be bound by the following conditions and will be taken as having represented and undertaken that you have agreed to do so. These presentation slides and accompanying verbal presentation (“Presentation Materials”) have been prepared by Premier African Minerals Limited (“Company”) in relation to a proposed placing (“Placing”) by the Company of new ordinary shares. The Presentation Materials do not comprise an admission document, listing particulars or a prospectus relating to the Company or any of its subsidiaries or associated companies (together, the “Group”). 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3 Important Notice (Continued) & Insider Notice Any such distribution could result in a violation of American, Canadian, Australian, Japanese, South African or Irish law. It is the responsibility of each recipient outside the United Kingdom to ensure compliance with the laws of and regulations of any relevant jurisdiction. The Company Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state or other jurisdiction of the United States and may not be offered and sold in the United States or to any US Person (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There will be no public offering of Company Securities in the United States.The Presentation Materials contain forward-looking statements, including in relation to the Group, the Group’s proposed strategy, plans and objectives. Such statements are generally identifiable by the terminology used, such as “may”, “will”, “could”, “should”, “would”, “anticipate'', “believe'', “intend”, “expect”, “plan”, “estimate”, “budget'', “outlook'' or other similar wording. By its very nature, such forward-looking information requires the Company to make assumptions that may not materialise or that may not be accurate. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Group that could cause the actual performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Furthermore, the forward-looking information contained in the Presentation Materials is made as of the date of the Presentation Materials and accordingly, you should not rely on any forward-looking statements and the Group accepts no obligation to disseminate any updates or revisions to such forward-looking statements. The forward-looking information contained in these Presentation Materials is expressly qualified by this cautionary statement. Any financial projections contained in the Presentation Materials have been prepared by the Company in accordance with a number of economic and other assumptions, which may prove to be incorrect or unreasonable. No assurance or representation is made that any financial projection will be achieved. Nothing in these Presentation Materials is a promise or representation as to the future.DS&C, which is authorised and regulated by the Financial Conduct Authority, is advising the Company and no one else in relation to the Placing and will not be responsible to anyone other than the Company for providing the protection afforded to customers of DS&C.INSIDER NOTICEThe Presentation Materials may contain unpublished price sensitive information with regard to the Company and/or the Company Securities. Recipients of the Presentation Materials should not deal or encourage or enable any other person to deal in the Company Securities of the Company whilst they remain in possession of such unpublished price sensitive information and until the transaction described in the Presentation Materials is announced. Dealing in the Company Securities when in possession of unpublished price sensitive information could result in liability under the insider dealing restrictions set out in the Criminal Justice Act The Presentation Materials may contain information which is not generally available, but which, if available, would or would be likely to be regarded as relevant when deciding the terms on which transactions in the Company Securities should be effected. Unreasonable behaviour based on such information could result in liability under the market abuse provisions of FSMA.
4 Company Snapshot Zimbabwe PROFILE Togo STRATEGY KEY PROJECTS VALUE 4 AIM-listed multi-commodity (tungsten, REE, lithium, tantalum, fluorspar, gold, nickel, zinc) exploration & development company, focused on AfricaTogoAdvance portfolio up the resource curve towards production, forming JV partnerships and/or corporate transactions to add valueFlagship RHA Tungsten Project, ZimbabweKatete REE & Zulu Lithium/Tantalum Projects, Zimbabwe42% stake in TSX-V listed AgriMinco Corp.Pipeline multi-commodity portfolio offering value upsideNear-term production and cash flow potential at RHA Tungsten ProjectExploration upside – Katete REE and Zulu Lithium/Tantalum ProjectsMajor shareholder of AgriMinco – exposure to potash, phosphates, clays4
5 Company Activity since AIM Listing London (AIM)PREMMAJOR SHAREHOLDERS(as of 28 February 2014)Company & % of issued sharesCoc’roach Ltd/ZRH Nominees Ltd* %Alpha International Business Ltd %Yorkville Advisors %Paddington Commercial Ltd %Richard Dollar %Cumming Family Trust %Ordinary Shares in Issue432,283,126Share Price (GBP)0.72p (as of 24/03/2014)Market Cap (GBP, millions)3.11 (as of 24/03/2014)*structures associated with G Roach5
6 Board of Directors & Key Management GEORGE ROACHChairman & CEOExtensive experience in securing and establishing mineral exploration tenure and operations throughout Africa, including the Central African Republic, Zimbabwe, South Africa, Chad, Mali, Namibia, Zambia and Tanzania. Founding Director and former Managing Director Africa for UraMin Inc., a uranium resource company with operations in Namibia, South Africa and the CAR. UraMin was sold in 2007 for US$2.5 billion. Former President and CEO of Axmin Limited (TSX-V:AXM). Chairman and CEO of AgriMinco Corp. (TSX-V: ANO).PAMELA HUESTONFinance DirectorFormer CFO designate of AgriMinco Corp (TSX-V: ANO) and current non-executive director. Former CFO of G & B Central African Resources, former CFO of Virginia Diamond Field. Head Accountant with Caledonia Mining Corporation (TSX-V: CAL), a junior gold mining and exploration company with operations in South Africa, Zimbabwe and Zambia. Four years with Deloitte in various locations, working as a Senior Manager in Forensic Accounting. Canadian Chartered Accountant and MBA Graduate from the University of Cape Town.NEIL HERBERTNon Executive DirectorFellow of the Association of Chartered Certified Accountants and has over 20 years’ experience in finance. Worked in the management of mining and exploration companies for over 15 years and was Co-Chairman and Managing Director of AIM quoted Polo Resources Limited. Former Financial Director for UraMin Inc.IAN STALKERNon Executive DirectorOver 30 years of development and operational mine experience in Europe, Africa, and Australia. Chairman and Director of TSX-listed Azincourt Resources Inc., Chairman and former CEO of TSX- listed Brazilian Gold Corp. before its recent trade sale and former CEO of Berkeley Resources, listed on ASX and AIM. Former CEO of UraMin Inc. and former Vice President of Gold Fields Ltd., the world’s fourth largest gold producer at the time.ALEXANDER DU PLESSISNon Executive DirectorProfessional Engineer with extensive experience in management, development and operational roles, covering a range of commodities including diamonds, coal and gold in the African mining arena. Holds a BSc (Eng.) (Electrical) and MSc (Eng.) from the University of the Witwatersrand in South Africa. Consults with a wide range of mining industry clients around the world, and is also a Visiting Adjunct Professor at the Centre for Mechanised Mining at the University of the Witwatersrand.BRUCE CUMMINGConsulting GeologistA SACNASP registered geoscientist and member of the Geological Society of South Africa. Initial 26 years' work experience spent with Falconbridge Limited group companies through Southern and West Africa exploring for nickel, copper, gold, diamonds and uranium. Further work experience in Bushveld Igneous Complex, Zambian Copper Belt and Sierra Leone. Was Chief Operating Officer for G&B Group of companies between 2007 and 2012 and instrumental in generating many of the Group’s exploration projects, including the Danakil Potash project. Currently CEO and Director AgriMinco Corp.
7 RHA Tungsten Project Overview Zimbabwe The RHA Tungsten Project (RHA) covers a 1,800-hectare land-holding in the prospective multi-commodity Kamativi Tin Belt in NW Zimbabwe. RHA has potential to be developed into a low capital and operational cost mine in the near-term, with proven mineralisation and good local infrastructure.LOCATIONKamativi Tin Belt, NW ZimbabwePRODUCTWolframite - WO3Geological model focuses on 6 mineralised lodes. To date, SAMREC code compliant Resource declared only for Lode 2 (covering two areas, Lode 2A and Lode 2B):Lode 2A: Inferred 1,093,000 tonnes at 8.7 kg/t WO3Lode 2B: Indicated 147,000 tonnes at 4.7 kg/t WO3RESOURCEOpen pit to at least 40m (improved with Whittle optimisation) followed by underground mining to 200m below surface, initiallyMINING METHODLIFE-OF-MINE6 years at annual production of 192,000 tonnesDEVELOPMENT STAGEPositive PEA and resource statement published Aug/Sept 2013Additional drilling Lode 2A completed, metallurgical work, updated resource statement and geological model expected April 2014Further information is contained in PREM’s News Release dated 28 August 2013, which is available on the Company’s website.
8 Historic Production at RHA mine Exploration OverviewTotal drilling campaign of seventeen holes, 2,603m with over 258m of trenching. Most recent drilling completed late December 2013.Latest drilling confirmed presence of numerous quartz tourmaline veins highly mineralised with wolframite – not previously identified in the hanging wall, including best assays at up to 359kg per tonneSAMREC code compliant Resource declared only for 1 of 6 lodes and based on the initial 6 drillholes:Lode 2A - Inferred 8.7kg/t WO3Lode 2B - Indicated 4.7 kg/t WO3Resource update expected in April 2014Ore body described in Lode 2A identified as expected in all additional drillingMineralogical work completed with metallurgical test work underway. Full specification of product expected April 2014Off-take and marketing agreements to follow product specificationHistoric Production at RHA mine
9 Exploration Overview (continued) Updated Mining Study expected April 2014Previous study indicates robust economics of a 192,000 tonnes per annum tungsten operation, LOM 6 yearsConventional open pit mining to 40m below surface (BS) followed by underground mining to 200m BS over strike length of 300mStrong promise to be expanded in future with further exploration over known mineralised lodesUnderground mechanised mining using long hole open stoping with pillars; low strip ratioFlow sheets and recoveries to be defined in updated Mining StudyExcellent infrastructure – accessibility via Bulawayo-Victoria Falls tar road 23kmLow OPEX due to visible upgrade of mineralised materialDiamond Drilling, Jan 2013
10 Mining Study - Robust Financial Model Tungsten APT (Ammonium Paratungstate) price of $400/mtu, and a 20% discount factor for 65% WO3 concentrate, a price of $20,800/t (metric tonne) of WO3 concentrate soldFINANCIAL EVALUATION SCHEDULE*YearUnitTotal123456Mined Tonnest’0009075219287(65%) WO3 concentratet8,9085111,887851RevenueUSDm185.310.639.217.7Capex13.4Opex51.74.810.011.111.39.7Undiscounted Pre Tax Real Cash Flow120.1-7.729.228.228.029.512.9* These numbers are gross for the local company, and are undiscounted and pre-tax.Pre-tax internal rate of return %Production starts in year 1 and continues for 6 years. Full mine production of 192 ktpa (16,000 tpm) is reached within 12 months.The average life of mine operating cost is estimated to be USD 59.3 per Run of Mine (ROM) tonne.Source: Technical Report on the RHA Tungsten Project dated 10 September 2013
11 Why Tungsten? APT price chart, 2008-June 2013 World tungsten demand is growing at an annual rate of approximately 6%. World supply declined from 90,800 metric tonnes in 2006 to 72,000 tonnes in A strategic metal that is essential in such applications as steel tools and cutting blades, defence applications, alloys, lighting and electronics, tungsten is a natural resource with long-term upside potential.150250350450550US$/mtu20092010201120122013APT price chart, 2008-June 2013(Source: Bloomsburg)Tungsten is one of few metals to have withstood the recent metals bear marketChina produces approximately 85% of world tungsten supply but has greatly restricted tungsten exports to keep pace with its own industrial demandPrices have shot up from US$50 per MTU in 2002 to c. US$400 in H2 2013On-going supply/demand imbalances are expected to keep tungsten at historic high price levels, or to increase prices in the medium-termOutlook is generally positive, with a tightening market likely to increase APT prices over the longer-termWolframite is easily bagged and shipped – no need for high logistics capex spendStrong demand for primary tungsten: only 30% of tungsten is recycled back into the marketStrong demand and off-take potential. Off-take can underpin bank financing for project or mine development finance
12 Why Zimbabwe? WORKING WITH INDIGENISATION Zimbabwe’s mining sector has shown a significant recovery over the last five years, with an overall upward trend in mineral production. Mining leads the economy in export earnings, rising from US$1.8 billion in 2011 to US$2 billion in Zimbabwe’s natural resource riches offer strong upside opportunities across many commodities.WORKING WITH INDIGENISATIONPremier’s subsidiaries in Zimbabwe are fully indigenised with empowerment partner: National Indigenisation and Economic Empowerment Fund (NIEEF)Shareholder agreements in place with NIEEF holding 51% of the RHA Tungsten Project. Premier appointed operator of the project.All exploration loans made by Premier to be repaid as agreed with NIEEFProfit distribution fixed with repayment of debt made first followed by 50/50 split of remaining profit between dividends and mine developmentRHA Tungsten project responsible for funding mine developmentExtensive mineral resource base of more than 60 different mineralsOre bodies in Zimbabwe are generally present at shallower depths than comparable ore bodies in South Africa, lending themselves to lower operating costsPremier is one of over 20 international companies successfully operating in Zimbabwe, including companies listed on the London, Australian and Toronto exchanges such as Aquarius Platinum, Rio Tinto, Caledonia Mining and MwanaZimbabwe has great infrastructure and a skilled and well-educated workforcePremier holds its Zimbabwean assets through Mauritian subsidiaries, lending protection through SADC Treaty
13 Investment SummaryNear-term tungsten production investment - one of only three AIM listed tungsten playsMining Study outlines robust economics of RHA: low-capex investment, near-term cash flow, positive APT/tungsten demand and pricing scenariosOff-take interest could secure future earningsPotential exploration and/or transactional value creation via additional portfolio of mineral assetsPREM fully compliant with Zimbabwe indigenisation lawsHighly experienced Board with a proven track record of successful development of mineral projects on the African continent
14 Contacts PREMIER AFRICAN MINERALS George Roach, Chairman & CEO Pamela Hueston, Finance DirectorE:
16 Zulu Lithium & Tantalum Project, Zimbabwe South-central ZimbabweLOCATIONLithium & TantalumPOTENTIAL PRODUCTStructurally controlled lithium bearing pegmatites with historical data from trenches and diamond drillholesTwo types of pegmatite have been identified in the area, both with estimated grades of 1.2% lithiumCLAIMS AREAMapping and trenching has extended the pegmatite strike extent by approximately 5km6 diamond drillhole programme completed with grab samples indicating tantalum content of between 220ppm and 1,037ppm and lithium contents ranging from 0.2% to 0.7% LiO2RECENT WORKPremier intends to commence a bulk sampling programme combined with further drilling and trenching to define a maiden code compliant mineral resourceDEVELOPMENT STAGE
17 Katete REEs Project, Zimbabwe Province of Matabeleland North, ZimbabweLOCATIONRare Earth Elements (REEs)POTENTIAL PRODUCT25 mineral claim blocksPrevious work identified prospective rare earth mineralisation including dysprosium, cerium, thorium, lanthanum, samarium and yttriumCLAIMS AREAResults from trenching programme undertaken in 2001 indicated highest total rare earth oxide (TREO) value was 14.6% with an average of 1.74%.Completed 7 drillhole drilling campaign totaling 1,187m and assays of 4 holes indicate TREO distribution consistent with depthRECENT WORKUndertake mineralogical and metallurgical studies followed by definition of a maiden code compliant mineral resourceDEVELOPMENT STAGE
18 Pagala Zinc Project, Togo Western TogoLOCATIONZincPOTENTIAL PRODUCT4 contiguous Exploration Permits issued for zinc and associated mineralsMineralisation hosted in graphite-sericite schist and sideritic breccias within a volcano sedimentary sequencePERMITSExploration began in BRGM and Anglo-American have undertaken drill testingIn 2000, Ambase Exploration Ltd recorded a non-SAMREC compliant ‘exploration target’ as defined in SAMREC code of % zincEXPLORATIONInitially, re-interpretation of existing data before decision on further exploration programmeDEVELOPMENT STAGE
19 Dapaong Gold Project, Togo Northern TogoLOCATIONGoldPOTENTIAL PRODUCT2 Exploration Permits covering 400 sq km for gold and associated metalsArea underlain by volcanic and sedimentary Birimian-aged intrusive rocks with minor volcano-sedimentary sequences, quartz veins and pegmatites, forming part of larger West African Craton geologic regionPERMITSArea has seen extensive artisanal activity but no systematic exploration as yetEXPLORATIONInitial exploration - mapping, sampling, assays, data interpretationDEVELOPMENT STAGE
20 Why Togo?Politically stable and strategically located in West Africa with good enabling infrastructure and a deep-water port at Lomé, Togo has implemented a new investment code that improves ease of doing business and is a member state of the Extractive Industries Transparency Initiative.Togo’s mining industry has been dominated by phosphates, marble and limestone, but there is strong prospectivity for other commercial minerals, including zinc, nickel, uranium, gold, diamonds and iron oreStable political environment and positive foreign investment business environmentMining legislation framed to liberalise the mining and natural resources sectorInvestment code in place to encourage investment and the development of mining activitiesImproving infrastructure including expansion of the Port of Lomé. Two airports and an unsophisticated but operational road and rail networkPort of Lomé