Avocet Mining PLC

Cape Town
December 2011
February 2017

Page 1
Overview

Page 2
 Overview of projects

Inata Gold Mine

o Producing mine with exploration
potential
o Inata Mineral Resources of 3.3
Moz, excluding Souma
o Reserve of 340k oz, LoMP runs to
end 2019

Souma, Pali and Ouzeni Deposits

o Souma deposit 20km from Inata process
plant – currently 0.7Moz
o US$11-14m funding needed to add Souma
and other satellite deposits to Inata LoMP
o Target is to add 5-600k oz reserve and 5-7
years to the mine life

Tri-K Development Project

o Exploitation permit granted 27 March 2015, Mining Convention signed 19 Dec 2016
o Joint Venture signed with Managem in October 2016 to complete a feasibility study for
a CIL project with a 1m oz reserve by Q1 2018 – leaving Avocet with 30% interest
o Construction capex expected to be US$200-300m

Page 3
Avocet Group

Avocet Mining • Corporate head office

• London and Oslo listing
PLC - UK head
office

Tri-K project -
Guinea
• Mining permit for Heap Leach
granted March 2015
• JV signed with Managem Oct 2016
• Managem to obtain 70% interest by
completing BFS for a CIL plant,
increasing reserve to 1moz and
investing US$10m
• Capex for CIL plant est US$200-
300m . Avocet to contribute its post-
debt share to retain 30% interest
Inata Gold Mine
– Burkina Faso
• In production since 2009
• 3 yrs of reserves remaining, 240k
oz at cash cost of cUS$900/oz (75-
85k oz pa)
• Debts of US$60m - bank debt of
US$24m (Ecobank and Coris), trade
creditors of US$29m, government
debts of US$7m
Souma and
Ouzeni/Pali –
Burkina Faso
• Satellite deposits to Inata –
under exploration permits
• Souma most prospective – 675k
resource, expected to increase,
20km from site.
• Funding of US$10-12m
exploration capex required
• Ouzeni/Pali 15km from Inata
• Funding of US$1-2m
exploration and capex required

Page 4
 Listed on London and Oslo

Share price Au US$/oz

AVM share price v Gold Price 2016
(pence)
140 AVM 1,500
120 Gold price
1,400
100 Ticker: AVM.L
80 1,300
60 1,200
40
1,100
20
1,000 Ticker: AVM.OL
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Listing date: London – Dec 2011 (previously AIM)

Oslo Børs – June 2010
Shares in issue: 20,949,671
Market capitalisation : US$16m
Major shareholder: Elliott1 13.5%
Registered office: th
5 Floor, 15 Old Bailey, London EC4M 7EF

1 Elliott is also interested in Ordinary Shares held through contracts for difference (CFDs), representing a further 14.2% of the Company’s
issued share capital

Page 5
Burkina Faso – Inata,
Bélahouro and Souma

Page 6
Burkina Faso – 8 mines in operation

Inata located c 200km North of

Ouagadougou in the Soum province.
Access is via road, and takes c 6hrs

Page 7
Inata

• Inata commenced production in Dec 2009 – after initial success,

combination of falling gold prices, rising costs, and metallurgical issues
impacted profitability and reduced profitability

• Focus since 2013 has been reducing costs, however this has also limited
expansion work to extend mine life

• Latest Inata LoMP shows reserve of 340k oz, and production continuing to
2019 but not beyond – which will make repaying the mine’s US$60m of
creditors challenging

• Additional deposits identified at Souma and Pali/Ouzeni – which require

US$11-14m of funding to be developed

• Souma/Ouzeni/Pali targeted to add 500-600k oz production and extend

mine life by 5-7 years – significantly improving economics of the mine, and
the prospects for shareholders and creditors

Page 8
 Inata production – past, future and potential

'000 oz Inata historic actuals Inata LoMP Targeted production from

US$/oz
180 1,600
160 (reserve) new deposits (unverified) 1,400
140 1,200
120
1,000
100 Pali/
Souma 800
80 Ouzeni
600
60
40 400

20 200

0 -
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Production Cash cost Av realised gold price

Page 9
Overview – plan of mine area

• Open pit mining across five main pits (Inata

North, Central, South-East, Far South and
Minfo)
• Owner-operator mining fleets – although
equipment is ageing
North Pit
• Processing via conventional CIL plant –
nameplate capacity 1.6mtpa
Plant
• Original mine licence covered 26km2 - TMF1
Central Pit

increased by 50% in 2014

• Water sourced from purpose-built barrage
(Gomdé) South Pit
TMF2

• Site includes office block, accommodation

camps, canteen etc

Minfo Pit Filio

Page 10
 Inata – 2017 outlook and challenges

• Production expected 75-85,000 oz at cash cost US$900-

1,000/oz

• Key challenges are:

- Creditor pressure

- Security threat – incidents have increased in Sahel region

- Mechanical availability of mine fleet and plant

- Tight margins in the context of volatile gold prices

- Legal issues with workforce

- Royal gold – disputed US$7m

• Mine has total debts of cUS$60m as at 31 January 2017

- Ecobank loan - c US$20m – repayable c US$1m per mth
until Oct 2018

- Coris Bank - 2.5bn CFA loan (US$4m) granted Oct 2016 -

repayment due end Mar 2017
- Trade creditors of US$28m at 31 Jan 2017
- Further US$1m due to as bank drafts (invoice advances)
- US$1m of government royalties/taxes outstanding
- US$6m due in respect of restoration bond
Inata LoMP, excluding Souma &
Pali/Ouzeni, runs to 2019. At current
gold prices, cash generated will
contribute to reducing substantially,
but not repaying in full, the mine’s
debts.

Page 11
Inata and satellite deposits

5km

Souma

Filio
Pali

Ouzeni

Page 12
 Souma – overview

• 20km from Inata Mine – within hauling distance

across flat terrain
• 16 km gold in saprolite anomaly 2km
Dynamite
• Mineral Resource currently 0.7Moz. at 1.81 g/t
Gomde
• High grade core of +2 g/t material Barrage
Miilam
• Entirely different geological setting – quartz N’Darga North
hosted gold, no preg-robbing characteristics as
seen at Inata
Miilam
Central

Miilam
South

Page 13
Souma - location 20km from Inata plant

INATA PIT

MINERALIZED
SOUMA ZONE

0.7 Moz Au QUARTZ VEINS

GOMBE DAM/
IMPOUNDMENT

PERMIT
BOUNDARY

INATA MINE

2.5 Km
FILIO, PALI,
OUZENI BELAHOUROU

0.48 Moz Au

Page 14
 Souma – current resource

CLASS Tonnes Grade Au (g/t) Metal

(ozs)

Measured - - -

Indicated 2,410,000 2.32 179,500

Meas+Indicated 2,410,000 2.32 179,500

Inferred 9,220,000 1.67 496,100

Meas+Ind+Inf 11,630,000 1.81 675,600

• A total of 676koz have been defined at Souma within

five deposits
• Upgrade in resource on Dynamite targeted – increase of
some 100-200k ounces realistic once work complete

Page 15
Satellite deposit for Inata

• Processing strategy for Souma is

that it will serve as a satellite
deposit for Inata
• Ore will be trucked c 20km to Inata
plant for treatment
• Feasibility study will confirm details
of metallurgy, costs etc
• High level estimates have assumed
US$4 per tonne additional haulage
for the ore
• US$10-12m funding needed:
• US$5-7m to complete drilling and
documentation for feasibility study and permit
application by end 2017
• US$5m capex (haul road, enhancements to
crusher, pit works)

US$10-12m needed to bring Souma into production by 2020 – potentially

adding 3 years of production to Inata mine life

Page 16
Ouzeni/Pali

• Ouzeni/Pali – located 7-8km SE/7km SW of the plant respectively.

• Although both lie outside the Inata mining permit, it is hoped that the
government would allow an extension to the permit area to include these
deposits, without the need for a full feasibility study.
• A drilling campaign estimated to cost US$1-2m would be required to
confirm the existing 5m tonnes of inferred resource at 1.61g/t (270k
ounces)
• However reserves of 100-150k ounces would not be an unreasonable
outcome.

Deposit Classification Tonnes Au g/t Ounces

Measured 590,000 1.81 34,400
Indicated 770,000 1.29 31,900
Filio Meas + Ind 1,360,000 1.52 66,300
Inferred 1,860,000 1.39 83,400
Total 3,220,000 1.45 149,700
Inferred 2,260,000 1.83 133,500
Pali
Total 2,260,000 1.83 133,500
Inferred 2,930,000 1.45 136,200
Ouzeni
Total 2,930,000 1.45 136,200

Page 17
Guinea – Tri-K

Page 18
Tri-K location – in Siguiri basin

Severstal
(Lefa – 5.9Moz Au) Anglogold Ashanti
(Siguiri – 5.6Moz Au)

Sovereign Mines of Africa

(Mandiana – 0.6Moz Au)
Cassidy Kolenda
(Kouroussa – 1.0Moz Au) Avocet
Balandougou
(TriK – 3.0Moz Au)
Tri-K
Permits

Kankan

Conakry
SEMAFO
(Kiniero – 0.9Moz Au)

Burey Gold
(Mansounia – 0.8Moz Au)

Birimian geology

Wega Mining Guinée permits

50km Deposit size (production + resource)

Page 19
Summary

• Current resource of 3m oz at 1.41 g/t

• Mining permit granted 27 March 2015 for a low capex Heap Leach operation
– Feasibility Study indicated initial reserve of 480k oz @ 1.41 g/t
• JV signed with Managem SA (Moroccon mining group) 7 October 2016
• Mining convention including fiscal concessions and extensions to mining and
exploration permits signed by Minister of Mines and Minister of Budget 19
Dec 2016 – ratification by Guinean parliament expected Feb 2016
• Once Mining Convention has been ratified, Avocet will transfer 40% interest
to Managem for a US$4m payment
• Managem will then commence 12 month US$10m work plan to complete a
new Bankable Feasibility Study for a CIL plant, targeting 1m oz reserve
• Once BFS and work plan has been completed (H1 2018), Managem share to
increase to 70%, and fundraising to begin for construction
• Construction capex not yet confirmed but likely to be US$200-300m
• Managem/Avocet to share post-debt funding 70:30, however Avocet can
elect not to contribute and to have its ownership diluted

Page 20
Permits

• Permits consist of a Mining Permit

(split into two zones – Koulékoun
and Kodiéran) surrounded by 7
Exploration Permits
• Mining Permit awarded in March Koulekoun
2015 does not specify production
method so will be retained and
used for CIL Kodieran
• Existing Exploration Permits
expired on 27 Dec 2016, however
under terms of Mining Convention,
new Exploration Permits will be
granted to the new JV structure
once Mining Convention has been
ratified by Guinean parliament
(expected Feb 2017)

Page 21
Tri-K – 3m ounce resource

Koulékoun Kodiéran Total

CLASS Tonnes Grade Au Au oz Tonnes Grade Au Au oz Tonnes Grade Au oz

(000) (g/t) (000) (000) (g/t) (000) (000) Au (g/t) (000)

Measured
- - - - - - - - -

Indicated
31,500 1.38 1,402 9,700 1.91 596 41,200 1.51 1,998
Meas+Ind
31,500 1.38 1,402 9,700 1.91 596 41,200 1.51 1,998
Inferred
22,800 1.22 892 2,400 1.66 128 25,200 1.26 1,020

Meas+Ind+
Inf 54,300 1.31 2,294 12,100 1.86 724 66,400 1.41 3,018

Page 22
 The deposits

• General NNW fabric to the geology

• NE and NW trending faults
• Gold associated with zones of intersection
of NE and NW trending structures
• Gold associated with smaller intrusives
• Located in close proximity to large diorite
intrusive centers
• Potentially larger NE trending corridors
controlling diorite intrusives and gold
mineralisation

Page 23
 Tri-K district - additional exploration targets

KOULÉKOUN
Gbinli

Koroma

Marina

KODIÉRAN
Fowara

Kodiafaran
Drilling and arsenic in termite mounds
on VTEM conductivity and Quickbird

Page 24