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AIM:EMED TSX:EMD Presentation 19 December 2012 at General Meeting of Shareholders, Minas de Riotinto, Spain www.emed-mining.com.

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Presentation on theme: "AIM:EMED TSX:EMD Presentation 19 December 2012 at General Meeting of Shareholders, Minas de Riotinto, Spain www.emed-mining.com."— Presentation transcript:

1 AIM:EMED TSX:EMD Presentation 19 December 2012 at General Meeting of Shareholders, Minas de Riotinto, Spain

2 FORWARD LOOKING STATEMENTS 2 This Presentation contains “forward looking information” which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the future price of metals, the estimation of ore reserves and resources, the conversion of estimated resources into reserves, the realization of ore reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Often, but not always, forward looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Accordingly, readers should not place undue reliance on forward looking statements. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; the future costs of capital to the company; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, terrorist attacks, insurrection or war; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled “Risk Factors” in this Presentation. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward looking statements contained herein are made as of the date of this Presentation and the Company disclaims any obligation to update any forward looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements. Sources for technical information and financial forecasts (except where noted) in this presentation are the “Amended and Restated NI Technical Report on Reopening the Rio Tinto Copper Mine Huelva Province, Spain” and the “Amended and Restated NI Technical Report on Biely Vrch Gold Deposit, Detva Licence Area in Slovakia”. Both of these reports are dated 17 November Mr Ron Cunneen, BSc (Geology), Head of Exploration for EMED Mining, a qualified person as defined by National Instrument , supervised the preparation of the scientific and technical information in this presentation.

3 SHAREHOLDERS SUMMARY OF STATUS 3 Market Cap vs NPV Market cap US$215M (£134M), NPV US$300-1,300M at $ /lb Cu NPV is only the base and target case of the first mine restart at Riotinto Inflection Points in Spain Engineering: have completed costing and scheduling Financing: have mandated Goldman Sachs; arranged Xiangguang and Red Kite; and have triggered independent expert for financing All project trigger permits are being processed for approval together, to reduce risk of further delays. Expected sequence is as follows: H1-13: Administrative Standing Mineral Rights + Environmental Plans Restoration Plan and Project (Exploitation Rights) H2-13: project works commence Team in Place Shareholders, financiers, board, senior management Supportive mining communities, local contractors and consultants EMED Mining also has first-class local & international specialist advisers Solid Platform and Pipeline of Growth Projects Robust Base Case for near term start of cash flow Potential brownfields copper mines next to main mine in Spain Exploration potential at gold deposit discovered in Slovakia, which has just received initial approval of Mining Lease Area

4 ONE OF BEST PERFORMING COPPER SECTOR SHARES OVER PAST TWO YEARS Relative Share Performance Since Dec. 17, 2010 – Copper Developers and Producers The sector performed poorly in 2011 and 2012 in stock market terms. EMED has outperformed the majority of TSX and TSXV listed copper exploration, development and producing companies since the TSX IPO in December 2010 Source: Capital IQ, as of 28 November 2012

5 CONTROLLED BY GLOBAL MINING INVESTORS 5 Board and Management 6% Resource Capital Funds (USA/Australia, mining investor) 13% Yanggu Xiangguang Copper Co. Ltd. (strategic investor and off-take customer) 11% RBC Asset Management (Canada, institutional investor) 8% Rand Merchant Bank (UK/Australia, mining bank) 5% Red Kite (USA, metals trader and financier) 5% Rumbo 5 Cero (Andalucia, Spain. Investment group) 4% Astor Holdings, formerly MRI Group (Switzerland, metals trader and financier) 3% Standard Life (UK, institutional investor) 3%

6 STEPS TO ACHIEVE 9MTPA PRODUCTION RATE 6 Approval Mineral Rights Environmental Plans Environmental Bonding Project Finance and Product Off take Bankable Engineering & Technical Studies Production Planning and Expansion Studies Operations Development Operating Licences Phase 1 Project Execution & Commissioning Production 5 Mtpa Phase 2 Project Execution & Commissioning Production 9 Mtpa Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 Documents, D. Diligence, Closing Feasibility Studies Capex, Opex, Works Schedule. Production Planning to 9Mtpa, Drilling, Expansion Studies beyond 9Mtpa Systems, Contracting, Recruitment & Training Operating Licenses are processed in parallel with project execution works Phase 1 Project execution and commissioning Phase 2 Project execution and commissioning Approval Restoration Plan Exploitation Rights (Project) Administrative Standing : informally advised that we have satisfied the Legal, Technical, Economic Tests Environment Plans (AAU): await approval. Everything has been submitted Restoration Plan: flows from AAU. Project approval flows from reports now done by IGME & CEDEX. CEDEX requires due diligence on newly acquired sections of dams Flows from Restoration Plan Closing before Execution

7 BASE AND TARGET CASE for first mine to be redeveloped – Cerro Colorado Open Pit Base Case Operating cash flow (pre-tax) $Mpa Project NPV US$M at discount rate 10% discount rate 7.5% (1) Base Case assumes extraction of existing ore reserves at 9Mtpa only over 14 years. Target Case 15Mtpa. (2) Scenarios under $3.50/lb assume 50% of years 2-7 are hedged at $3.50/lb. (3) C1 assumed $1.50 (Operating Costs). C3 assumed $1.90 (Capital, Operating and Closure Costs). (4) Estimates being independently reviewed, to be released in accordance with NI which is being updated. Target Case Project NPV US$M at discount rate 10% ,287

8 RIO TINTO: WORLD’S LARGEST VMS SYSTEM 100% ownership of assets, including the Cerro Colorado open pit and other mines, processing facilities and all project lands Last operated in 2001 and was put on care and maintenance due to then-prevailing low Cu prices Excellent infrastructure in place: –Access to towns, roads, port, power & water –Only 75 km from Freeport McMoRan’s Atlantic Cu smelter 8 SPAIN Rio Tinto SPAIN

9 “GROWTH AGENDA” TASKS FOR 2013, SO AS TO RE-ESTABLISH RIO TINTO AS A MINING DISTRICT Cerro Colorado Pit, initial target increase reserves - 600Kt to 900Kt Cu Drilling programs to commence No past drilling below 250 meters & open Concentrator, increase output – 37Ktpa Cu (9Mtpa) to 60Ktpa Cu (15Mtpa) Engineering studies to commence Some plant capacity already 15Mtpa Tailings Treatment, target reduced enviro impact and increased capacity Engineering studies to commence Optimise tailings thickening/deposition San Dionisio Underground Mine, evaluate this adjacent high grade deposit Validate and interpret database under today’s standards and economics San Antonio Underground Mine, evaluate this adjacent high grade deposit Validate and interpret database under today’s standards and economics Tailings Reprocessing Joint Venture, evaluate treatment of precious metal Metallurgical testing and engineering programs to commence Rio Tinto is the world’s largest VMS system. Historical production 2Mt Cu at 1.5% + 60M oz Ag. No exploration for 25 years.

10 SLOVAKIA: GOLD PORPHYRY DISCOVERY 100%-owned Detva Gold Project Background of Biely Vrch deposit NI Indicated & Inferred Resource Focused on shallow, oxidised 1M oz First Permit “National Resource” Encouraging Independent Scoping Study Now consulting communities “Mining Lease Area” initial approval done 10 SLOVAKIA Biely Vrch Poland Czech Republic Germany Hungary Austria Ukraine Romania SLOVAKIA

11 11 GROWTH PIPELINE –To optimise open pit resources for higher gold price –To consider the impact of potentially higher gold prices on the economics of deeper zones of mineralisation –To keep testing Hodrusa Field –To re-start drilling after addressing higher priorities elsewhere Slovakia, potential which has been identified: (95%-owned) deposit and other targets DETVA GROWTH RIO TINTO CYPRUS –To optimise open pit reserves of 123 Mt for copper price higher than $2/lb –To convert more of 203 Mt open pit resources to reserves –To increase open pit resources of 203 Mt Spain, potential which has been identified: –To re-evaluate the San Dionisio deposit previously mined by RTZ –To test other deposits RTZ reported on the company’s Rio Tinto Mine property –To test targets on one or more of the surrounding mineral concessions Gold Project Copper Mines Copper

12 FINANCE STRATEGY 12 USES OF FUNDSUS$M Repairs and initial plant improvements 135 Bonding for environmental and social 30 Outstanding payment for project acquisition (on drawdown project finance) 9 Rio Tinto Mine 174 Support permitting of Slovakia Gold 2 Provisions for working capital and contingencies 64 TOTAL Capital to be Committed 240 All estimates subject to revision and upon independent review for updating of the NI Technical Report. Finance plan with customers Goldman Sachs, Xiangguang and Red Kite potentially covers $240M when “fully-bankable”

13 Ronnie Beevor - Non-Executive Chairman Director of several mining companies Former MD, investment banking, Rothschild Australia DIRECTORS 13 NON-EXECUTIVE DIRECTORS Harry Anagnostaras-Adams - Managing Director John Leach - Finance Director Jasper Bertisen Principal of Resource Capital Funds and engineer Roger Davey Former Director of Rothschild, mining company director and mining engineer Bob Francis Former senior partner of Deloitte & Touche specialising in mining Harry Liu Vice President Xiangguang responsible for corporate development Ashwath Mehra CEO of Astor Group and commodities trader Jose Sierra 30 years minerals policy & regulation, Spain (Director-General Mines) and EU

14 RESERVES & RESOURCES 14 RESERVESMtCu%Cu ‘000t Proven Probable TOTAL Ore Reserves RESOURCESMtCu%Cu ‘000t Measured Indicated TOTAL Measured & Indicated Resources Inferred Source: Behre Dolbear NI Report and based on a 0.2% cut-off grade Resources Inclusive of Reserves Resources based on $3.00/lb pit shell Reserves based on $2.00/lb pit shell RIO TINTO COPPER – CERRO COLORADO OPEN PIT

15 DETVA GOLD PROJECT (100%) Multi-million ounce system, consistently mineralized from surface Shallowest1 million ounce is focus of current planning Consult community and advance permitting prior to more detailed studies Source: Amended and Restated NI Technical Report on Biely Vrch Gold Deposit, Detva Licence Area in Slovakia - dated 17 November 2010 RESOURCESMt Gold Grade g/t Contained Gold (ounces) Indicated ,000 Inferred ,000 BIELY VRCH (SLOVAKIA) MINERAL RESOURCES 15 Gold Resources

16 Contacts Listed on AIM (Code:EMED) and TSX (Code:EMD) EMED Mining Harry Anagnostaras-Adams – Managing John Leach – Finance Roger Howe – Manager, Investor Research Coverage Cannacord, Orest Fox Davies, Peter Paradigm, Jeff Jennings, Garnet Angel, Carole Equity Development, Conor Edison, Michael Craig Matt CONTACTS

17 AIM:EMED TSX:EMD Presentation 19 December 2012 at General Meeting of Shareholders, Minas de Riotinto, Spain


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