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AIM: PREM CORPORATE PRESENTATION March 2014. 2 2 www.premierafricanminerals.com CORPORATE PRESENTATION, March 2014 Important Notice By attending this.

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Presentation on theme: "AIM: PREM CORPORATE PRESENTATION March 2014. 2 2 www.premierafricanminerals.com CORPORATE PRESENTATION, March 2014 Important Notice By attending this."— Presentation transcript:

1 AIM: PREM CORPORATE PRESENTATION March 2014

2 2 2 CORPORATE PRESENTATION, March 2014 Important Notice By 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”). The Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in the Company or the Group (“Company Securities”) nor shall they or any part of them form the basis of or be relied upon in connection with or act as any inducement to enter into, any contract or commitment with respect to such Company Securities. These Presentation Materials do not constitute a recommendation regarding any decision to sell or purchase Company Securities. These Presentation Materials are for information purposes only and must not be used or relied upon for the purpose of making any investment decision or engaging in any investment activity. Reliance on the communications set out in these Presentation Materials for the purposes of engaging in any investment activity may expose a person to significant risk of losing all of their investment or of incurring additional liability. Any individual who is in any doubt as to the investment to which these Presentation Materials relate should consult an authorised person specialising in advising on investments of the kind referred to in these Presentation Materials. Whilst the information contained in the Presentation Materials has been prepared in good faith, neither the Company nor any other member of the Group, nor Daniel Stewart & Company (“DS&C”) nor any of their directors, employees, agents or advisers makes any representation or warranty in respect of the accuracy or completeness of the contents of the Presentation Materials or otherwise in relation to the Group, its business or operations, and responsibility and liability therefore (whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise) is expressly disclaimed, provided that nothing herein is intended to limit the liability of any such person for fraud. No duty of care or advisory obligation is owed by the Company nor any other member of the Group, nor DS&C or any of their directors, employees, agents or advisers to any recipient of the Presentation Materials. No reliance may be placed for any purpose whatsoever on the information contained in these Presentation Materials or the completeness or accuracy of such information. In particular, no representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information or opinions contained in the Presentation Materials, which have not been independently verified and may be in draft form. The figures and projections included in these Presentation Materials are based on internal assumptions made by the directors and employees of the Group and have not been reviewed or verified as to their accuracy by any third party. The information contained in these Presentation Materials is provided as at the date of this presentation and is subject to updating, completion, revision, verification and further amendment without notice. However, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update these Presentation Materials or to correct any inaccuracies in, or omissions from these Presentation Materials which may become apparent. The content of these Presentation Materials has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). The Presentation Materials do not constitute an offer of transferable securities to the public for the purposes of section 85 FSMA. These Presentation Materials are exempt from the general restriction set out in section 21 FSMA on the communication of financial promotions on the grounds that they are directed only at:- (i) persons whose ordinary activities involve them in acquiring, holding, managing and disposing of investments (as principal or agent) for the purposes of their business and who have professional experience in matters relating to investments or otherwise are “investment professionals” for the purposes of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); (ii) are persons who fall within Article 49(2)(a) to (e) of the Order; or (iii) otherwise fall within an applicable exemption within the Order (all such persons together being referred to as “Relevant Persons”). Persons of any other description, including those that do not have professional experience in matters relating to investment, should not rely or act upon the Presentation Materials. Any investment, investment activity or controlled activity to which the Presentation Materials may ultimately relate is available only to Relevant Persons and will be engaged in only with such Relevant Persons. The Presentation Materials are confidential and being supplied to you for your own information and may not be reproduced, further distributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person or published, in whole or in part, for any purpose whatsoever. In particular, they do not constitute an offer of securities for sale in the United States, Canada, Australia, Japan, the Republic of South Africa, the Republic of Ireland or in any other country outside of the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement, nor must they be distributed to persons with addresses in the United States, Canada, Australia, Japan, the Republic of South Africa, the Republic of Ireland, or to any national or resident of the United States, Canada, Australia, Japan, the Republic of South Africa, the Republic of Ireland or to any corporation, partnership, or other entity created or authorised under the laws thereof.

3 3 3 CORPORATE PRESENTATION, March 2014 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 NOTICE The 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 4 4 CORPORATE PRESENTATION, March 2014 Company Snapshot STRATEGY KEY PROJECTS VALUE PROFILE AIM-listed multi-commodity (tungsten, REE, lithium, tantalum, fluorspar, gold, nickel, zinc) exploration & development company, focused on Africa Advance portfolio up the resource curve towards production, forming JV partnerships and/or corporate transactions to add value 1.Flagship RHA Tungsten Project, Zimbabwe 2.Katete REE & Zulu Lithium/Tantalum Projects, Zimbabwe 3.42% stake in TSX-V listed AgriMinco Corp. 4.Pipeline multi-commodity portfolio offering value upside Near-term production and cash flow potential at RHA Tungsten Project Exploration upside – Katete REE and Zulu Lithium/Tantalum Projects Major shareholder of AgriMinco – exposure to potash, phosphates, clays Zimbabwe Togo

5 5 5 CORPORATE PRESENTATION, March 2014 Company Activity since AIM Listing MAJOR SHAREHOLDERS (as of 28 February 2014) Company & % of issued shares Coc’roach Ltd/ZRH Nominees Ltd* 44.39% Alpha International Business Ltd 11.31% Yorkville Advisors 9.30% Paddington Commercial Ltd 4.43% Richard Dollar 3.67% Cumming Family Trust 3.58% *structures associated with G Roach London (AIM) PREM London (AIM) PREM Ordinary Shares in Issue 432,283,126 Ordinary Shares in Issue 432,283,126 Share Price (GBP) 0.72p (as of 24/03/2014) Share Price (GBP) 0.72p (as of 24/03/2014) Market Cap (GBP, millions) 3.11 (as of 24/03/2014) Market Cap (GBP, millions) 3.11 (as of 24/03/2014)

6 6 6 CORPORATE PRESENTATION, March 2014 Board of Directors & Key Management GEORGE ROACH Chairman & CEO Extensive 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 HUESTON Finance Director Former 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 HERBERT Non Executive Director Fellow 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 STALKER Non Executive Director Over 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 PLESSIS Non Executive Director Professional 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 CUMMING Consulting Geologist A 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 7 7 CORPORATE PRESENTATION, March 2014 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. Further information is contained in PREM’s News Release dated 28 August 2013, which is available on the Company’s website. Kamativi Tin Belt, NW Zimbabwe LOCATION Wolframite - WO 3 PRODUCT Geological 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 WO 3 Lode 2B: Indicated 147,000 tonnes at 4.7 kg/t WO 3 RESOURCE Open pit to at least 40m (improved with Whittle optimisation) followed by underground mining to 200m below surface, initially MINING METHOD 6 years at annual production of 192,000 tonnes LIFE-OF-MINE Positive PEA and resource statement published Aug/Sept 2013 Additional drilling Lode 2A completed, metallurgical work, updated resource statement and geological model expected April 2014 DEVELOPMENT STAGE

8 8 8 CORPORATE PRESENTATION, March 2014 Exploration Overview  Total drilling campaign of seventeen holes, 2,603m with over 258m of trenching. Most recent drilling completed late December  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 tonne  SAMREC code compliant Resource declared only for 1 of 6 lodes and based on the initial 6 drillholes: Lode 2A - Inferred 8.7kg/t WO 3 Lode 2B - Indicated 4.7 kg/t WO 3  Resource update expected in April 2014  Ore body described in Lode 2A identified as expected in all additional drilling  Mineralogical work completed with metallurgical test work underway. Full specification of product expected April 2014  Off-take and marketing agreements to follow product specification Historic Production at RHA mine

9 9 9 CORPORATE PRESENTATION, March 2014 Exploration Overview (continued) Diamond Drilling, Jan 2013  Updated Mining Study expected April 2014  Previous study indicates robust economics of a 192,000 tonnes per annum tungsten operation, LOM 6 years  Conventional open pit mining to 40m below surface (BS) followed by underground mining to 200m BS over strike length of 300m  Strong promise to be expanded in future with further exploration over known mineralised lodes  Underground mechanised mining using long hole open stoping with pillars; low strip ratio  Flow sheets and recoveries to be defined in updated Mining Study  Excellent infrastructure – accessibility via Bulawayo-Victoria Falls tar road 23km  Low OPEX due to visible upgrade of mineralised material

10 10 CORPORATE PRESENTATION, March 2014 Mining Study - Robust Financial Model The average life of mine operating cost is estimated to be USD 59.3 per Run of Mine (ROM) tonne. Production starts in year 1 and continues for 6 years. Full mine production of 192 ktpa (16,000 tpm) is reached within 12 months. 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 sold YearUnitTotal Mined Tonnest’ (65%) WO3 concentrate t8, , RevenueUSDm CapexUSDm13.4 OpexUSDm Undiscounted Pre Tax Real Cash Flow USDm FINANCIAL EVALUATION SCHEDULE* Pre-tax internal rate of return - 378% * These numbers are gross for the local company, and are undiscounted and pre-tax. Source: Technical Report on the RHA Tungsten Project dated 10 September 2013

11 11 CORPORATE PRESENTATION, March 2014 Why Tungsten? US$/mtu APT price chart, 2008-June 2013 (Source: Bloomsburg) 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.  Tungsten is one of few metals to have withstood the recent metals bear market  China produces approximately 85% of world tungsten supply but has greatly restricted tungsten exports to keep pace with its own industrial demand  Prices have shot up from US$50 per MTU in 2002 to c. US$400 in H  On-going supply/demand imbalances are expected to keep tungsten at historic high price levels, or to increase prices in the medium-term  Outlook is generally positive, with a tightening market likely to increase APT prices over the longer-term Wolframite is easily bagged and shipped – no need for high logistics capex spend Strong demand for primary tungsten: only 30% of tungsten is recycled back into the market Strong demand and off-take potential. Off-take can underpin bank financing for project or mine development finance

12 12 CORPORATE PRESENTATION, March 2014 Why Zimbabwe? 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.  Extensive mineral resource base of more than 60 different minerals  Ore bodies in Zimbabwe are generally present at shallower depths than comparable ore bodies in South Africa, lending themselves to lower operating costs  Premier 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 Mwana  Zimbabwe has great infrastructure and a skilled and well-educated workforce  Premier holds its Zimbabwean assets through Mauritian subsidiaries, lending protection through SADC Treaty WORKING WITH INDIGENISATION  Premier’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 NIEEF  Profit distribution fixed with repayment of debt made first followed by 50/50 split of remaining profit between dividends and mine development  RHA Tungsten project responsible for funding mine development

13 13 CORPORATE PRESENTATION, March 2014 Investment Summary  Near-term tungsten production investment - one of only three AIM listed tungsten plays  Mining Study outlines robust economics of RHA: low-capex investment, near-term cash flow, positive APT/tungsten demand and pricing scenarios  Off-take interest could secure future earnings  Potential exploration and/or transactional value creation via additional portfolio of mineral assets  PREM fully compliant with Zimbabwe indigenisation laws  Highly experienced Board with a proven track record of successful development of mineral projects on the African continent

14 14 CORPORATE PRESENTATION, March 2014 Contacts PREMIER AFRICAN MINERALS George Roach, Chairman & CEO Pamela Hueston, Finance Director E:

15 APPENDIX

16 16 CORPORATE PRESENTATION, March 2014 Zulu Lithium & Tantalum Project, Zimbabwe South-central Zimbabwe LOCATION Lithium & Tantalum POTENTIAL PRODUCT Structurally controlled lithium bearing pegmatites with historical data from trenches and diamond drillholes Two types of pegmatite have been identified in the area, both with estimated grades of 1.2% lithium CLAIMS AREA Mapping and trenching has extended the pegmatite strike extent by approximately 5km 6 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% LiO 2 RECENT WORK Premier intends to commence a bulk sampling programme combined with further drilling and trenching to define a maiden code compliant mineral resource DEVELOPMENT STAGE

17 17 CORPORATE PRESENTATION, March 2014 Katete REEs Project, Zimbabwe Province of Matabeleland North, Zimbabwe LOCATION Rare Earth Elements (REEs) POTENTIAL PRODUCT 25 mineral claim blocks Previous work identified prospective rare earth mineralisation including dysprosium, cerium, thorium, lanthanum, samarium and yttrium CLAIMS AREA Results 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 depth RECENT WORK Undertake mineralogical and metallurgical studies followed by definition of a maiden code compliant mineral resource DEVELOPMENT STAGE

18 18 CORPORATE PRESENTATION, March 2014 Pagala Zinc Project, Togo Western Togo LOCATION Zinc POTENTIAL PRODUCT 4 contiguous Exploration Permits issued for zinc and associated minerals Mineralisation hosted in graphite-sericite schist and sideritic breccias within a volcano sedimentary sequence PERMITS Exploration began in BRGM and Anglo-American have undertaken drill testing In 2000, Ambase Exploration Ltd recorded a non-SAMREC compliant ‘exploration target’ as defined in SAMREC code of % zinc EXPLORATION Initially, re-interpretation of existing data before decision on further exploration programme DEVELOPMENT STAGE

19 19 CORPORATE PRESENTATION, March 2014 Dapaong Gold Project, Togo Northern Togo LOCATION Gold POTENTIAL PRODUCT 2 Exploration Permits covering 400 sq km for gold and associated metals Area 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 region PERMITS Area has seen extensive artisanal activity but no systematic exploration as yet EXPLORATION Initial exploration - mapping, sampling, assays, data interpretation DEVELOPMENT STAGE

20 20 CORPORATE PRESENTATION, March 2014 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 ore  Stable political environment and positive foreign investment business environment  Mining legislation framed to liberalise the mining and natural resources sector  Investment code in place to encourage investment and the development of mining activities  Improving infrastructure including expansion of the Port of Lomé. Two airports and an unsophisticated but operational road and rail network Port of Lomé


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