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Large Scale Bauxite Project

in Guinea

30 April 2015

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Disclaimer

THIS PRESENTATION IS FOR INFORMATION ONLY AND NEITHER CONSTITUTES NOR FORMS NOR SHOULD BE CONSTRUED AS CONSTITUTING OR FORMING PART OF A PROSPECTUS RELATING TO THE COMPANY, OR ANY OFFER OR INVITATION TO SELL OR ANY SOLICITATION OF ANY OFFER TO PURCHASE, TO UNDERWRITE OR TO SUBSCRIBE FOR ANY SECURITIES IN THE COMPANY OR TO ADVISE PERSONS TO DO SO, IN ANY JURISDICTION IN WHICH SUCH SOLICITATION OR SALE WOULD BE UNLAWFUL OR AN INVITATION OR INDUCEMENT TO ENGAGE IN INVESTMENT ACTIVITY UNDER SECTION 21 OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 ("FSMA") NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT THEREFORE.

THIS PRESENTATION IS NOT DIRECTED TO, OR INTENDED FOR DISTRIBUTION OR USE BY, ANY PERSON OR ENTITY THAT IS A CITIZEN OR RESIDENT OR LOCATED IN ANY JURISDICTION WHERE SUCH DISTRIBUTION OR USE WOULD BE CONTRARY TO ANY LAW OR REGULATION OR WOULD REQUIRE ANY REGISTRATION, LICENSING OR OTHER PERMISSION. BY ATTENDING THE MEETING WHERE THIS PRESENTATION IS MADE, OR BY READING THIS PRESENTATION, YOU AGREE TO BE BOUND BY THE LIMITATIONS CONTAINED IN THIS NOTICE.

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Executive summary

▪ ▪ ▪ ▪

4 billion tonnes of established bauxite resource (M+I) with average Al

2

O

3

content at 40%, comprehensively explored Target rate of export - 10 MTPA of bauxite at 46-48%

Al

2

O

3

grade, with life of mine (LOM) ~ 200 years Located in well-known bauxite province in Guinea

High-grade, low silica,

consistent ore bodies, negligible overburden ▪ simple geological setting

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Executive summary

▪ Short term goal – to establish mining and to build transportation infrastructure to export up to 10MTPA of bauxite of 46-48% grade ▪ ▪ Middle term goal – to implement an alumina refinery in a region with low energy costs to produce Smelter Grade Alumina (SGA) and Non-metallurgical Grade Alumina (NMGA), including low

cost alumina monohydrate

Long term goal – implement red mud processing to extract rare earths and other hi-tech materials using new technologies

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Project background

▪ ▪ ▪ ▪ Eloft Group owns Telimele license through 100% subsidiary Eurasian Resource, incorporated under the Laws of Guinea in 2010 Eurasian Resources has obtained

exploration license (2,003 km 2 )

in June 2010 in Telimele Prefecture, Guinea In accordance with Guinean Mining Code, Eurasian Resources has exclusive rights to obtain mining license Eurasian Resources has good track record in Guinea and has consistently delivered on its obligations before the authorities

Telimele License Area Location

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Geography and infrastructure

Telimele bauxite project is situated in Telimele Prefecture, Guinea, where other major bauxite operations are present Fria, 40 km from the project: ▪ Rusal Alumina plant 0.618 Mtpa (now suspended) ▪ 105 km Railroad Fria to port Conakry (max 35,000 t vessels) Sangaredi, 60 km from the project: ▪ CBG mine 12 Mtpa of bauxite production ▪ 136 km railway from Sangaredi to port Kamsar(up to 60,000 t vessels ) Kindia, 100 km from the project: ▪ Rusal mine 3 Mtpa of bauxite production ▪ 90 km railway from Kindia to Conakry (max 35,000 t vessels ) Boffa , 100 km from the project: ▪ Small mooring near Boffa city (Rio Pongo river) Sea ports infrastructure is represented by ports of Conakry and Kamsar

Location of main infrastructure objects in Guinea and mining companies

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Geology

▪ ▪ ▪ ▪ ▪ Telimele bauxite deposit consists of 32 individual deposits (bowals or plateau) Average thickness of ore body is 6-8 meters, with practically no overburden, except for topsoil Average silica - 2%, reactive silica

- 1.1%

Bauxite composition: gibbsite (60.89%), goethite (19.66%), hematite (9.20%), kaolinite (2.32%), illite (1.95%), rutile (1.39%), quartz (0.82%), anatase (0.57%), with 3.20% amorphous material The ore is suitable for processing using low temperature Bayer

process Plateaux

Measured Indicated

Sub-Total

Inferred

Total

Mineral Resources Map, 2012, by SRK Consulting Ltd.

Tonnage (kt)

2,104,000 1,877,000

3,981,000

144,000

4,125,000 Al 2 O 3 (%)

40.9 39.5

40.2

38.7

40.2 SiO (%) 2

2.17 3.10

2.6

1.98

2.6 JORC Mineral Resource Statement, by SRK Consultants Ltd., 2012

7 Source: Mineral Resource Statement, 2012, SRK Consulting Ltd

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Mining

▪ ▪ ▪ ▪ ▪ Proven good practice for bauxite mining in Guinea is to use surface (continuous) miners, such as Wirtgen SM2500, with no blasting The method is especially suitable for relatively thin (2 10m) sedimentary ore bodies, with high cutting precision and minimal dilution One machine sustains 700 1000 t/hr throughput No primary crushing of run of mine (ROM) is needed before dry bulk transportation Surface miner can be used for mine site roads building Proposed mining using a surface miner 8

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Logistics

    Guinea has poor roads infrastructure and shallow coastal waters except for two small port areas Combined transportation scheme is envisaged from mine to FOB cape size: ▪ 100 km overland haulage from mine to a river jetty ▪ 5000t payload barges to an offshore deep water transhipment facility loading onto cape size ships Overland transportation options include: ▪ Trucking ▪ ▪ ▪ ▪

Rail transportation

Slurry pipeline Conveyor belt Any combination of the above Multi modal transportation will avoid necessity to build a sea port and, in the same time, will help to keep operating costs down Proposed transportation route for the Project 9

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Exports Development Strategies

10MTPA

rail+truck

▪ ▪ ▪ ▪ ▪ ▪ The hilly part of the terrain will be crossed by a dirt road, first 37km from mine site In order to accommodate 10MTPA bauxite, a railroad will be built in the part of the route located in more gradual terrain, down to river jetty, 83km From river jetty a barging operation will deliver bauxite to a transshipment facility loading cape size vessels The cheap rail transportation for the part of the road will keep mine-to-FOB costs to moderate level Expensive building of railroad in hilly terrain will be avoided, as railroad will not have many bridges and viaducts Construction times will be kept within 3 years 10

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Exports Development Strategies

10MTPA

rail only

▪ ▪ ▪ ▪ ▪ ▪ ▪ In order achieve low cost haulage of 10MTPA bauxite from the mine site, the large scale logistics system should be built Potential modes of transport include: ▪ ▪

Railroad

Slurry pipeline ▪ Conveyor belt system The transportation cost expected to be lower as compared to combined haulgage Higher CAPEX will be compensated by higher margins Rail option scoping study has been completed Slurry pipeline scoping is underway, as it requires certain metallurgical tests of the mineral To double the throughput to 20MTPA will require only fractional investment increase 11

Development Strategies

Development Strategies’ Comparison Time to develop, years

CAPEX, $ ’000,000

Mine Overland River Jetty and Barges Transhipment

OPEX at FOB, $/t

Mining SG&A Transportation to FOB Freight to China, $/t Margin, $/t

EBITDA, $ ’000,000

Source: scoping studies by WBHO

Staged

3MTPA 10MTPA 1 3

103.5

356.7

26.2

22.9

39.5

19.5

18.3

274.5

34.1

25.2

24.5

6.0

1.5

17.0

24.0

11.5

34.5

14.4

5.3

0.8

8.3

14.0

31.6

316 10MTPA

moderate cost product 3

434.3

49.1

288.0

53.7

43.5

14.4

5.3

0.8

8.3

14.0

31.6

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10MTPA

low cost product

10.5

5.3

0.8

4.4

14.0

35.5

355

4

644

49.1

498 53.7

43.5

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Bauxite Markets

    Global demand and value of bauxite has been increasing last 2 years by 5.3% per annum (see the picture “supply-demand”)

China’s imported bauxite sources, volumes and prices

Bauxite is globally plentiful, but of various quality, and mines development becoming slower/more difficult: ▪ ▪ ▪

Governments

and financing is

ban

bauxite exports unless refinery is built in country Capital costs and lack of available infrastructure make investment size steep National policies and taxes comprise hurdles Source: 20th MetalBulletin Bauxite & Alumina Conference, 2014, Miami Chinese domestic bauxite supply is decreasing (quality, depletion, allocations): Strong increase in bauxite imports to China is forecasted from 2019*

Conclusions:

 Chinese bauxite import volumes are expected to keep growing  Numerous bauxite projects will be needed to meet future demand * Group Executive Strategy & Development Alumina Limited, as of beginning of 2014 13

Bauxite Markets

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China’s Bauxite Import Gap

Source: CRU Market Report, 2015 14

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Middle & Long Term Strategy

▪ ▪ ▪ ▪ ▪ The alumina refinery should be built in regions with low power costs, such as Namibia, to reduce bauxite logistics costs Target products should include Smelter Grade Alumina (SGA), Non Metallurgical Alumina (NMGA), and high dispersed alumina hydrates NMGA market is growing faster than other sectors ELOFT has access to a new technology producing low cost alumina

monohydrate

Red mud, waste of bauxite processing, should be processed using new high technologies to extract high value rare earths Bauxite Processing Economics Output, kt Initial CAPEX, USD millions EBITDA, USD millions NPV, USD millions IRR, % NMGA 288,5 370 274 1,158 52.91

SGA 2,800 2,352 560 373 13.8

SGA+Red Mud Processing 5,000 2,854 1,072 3,065 24.11

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Work done

Works

Drilling works with total volume 140,000 m  Auger drilling: 600x600 grid: 11,646m 300x300 grid: 52,054m 150x150 grid: 69,948m 75x75 grid: 2,860m  Diamond drilling: 3,550m Lab XRF survey Geotechnical studies of bauxite ore Metallurgical studies of bauxite Mineral Resource Estimation Alumina Refinery Scoping Study Pre Feasibility Study of Alumina and Non-metallurgical Alumina product Scoping Study of Bauxite Export (10MTPA) Reconnaissance study of Rio Pongo River

Year Contractor

2010-2012 Geoprospects Ltd (Guinean Company) supervised by SRK Consulting Ltd 2011-2012 ALS Global (Ireland office) 2011-2012 2012-2013 2012 2012 In Progress Polytechnic University of Conakry (Guinea) Austalian Labs (Amdel and CSIRO) SRK Consulting Ltd SRK Consulting Ltd SRK Consulting Ltd 2015 2015 WBHO WBHO and Eurasian Resources 16

Project team and contacts

Eloft Group Ltd

Kazakhstan, 050059, Almaty, 19 Al Farabi ave, Nurly Tau business center, 2b block, 8 th floor, office 801-802, tel. +7-72-7-311-01-30 Managing partner: Kruglyak Denis +7-705-501-11-13 [email protected]

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Eurasian Resources

Russia, 119019, Moscow, Bolshoi Afanasyevskiy, 8, building 3 tel. +7-495-374-51-29 Managing partner: Zotov Alexander +7-917-574-55-00 [email protected]

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