Announcement PDF HIGH GROWTH, LOW-COST GOLD DEVELOPER 6.1MOZ GOLD RESOURCE & GROWING DFS NEAR COMPLETION CEO PRESENTATION - CAPE TOWN MINING INDABA – MAY 2022 DISCLAIMER FORWARD LOOKING AND CAUTIONARY STATEMENTS DISCLAIMER AND COMPETENT PERSONS STATEMENT This presentation may refer to the intention of Theta Gold Mines regarding estimates or future events which could be considered forward looking statements. Forward looking statements are typically preceded by words such as “Forecast”, “Planned”, “Expected”, “Intends”, “Potential”, “Conceptual”, “Believes”, “Anticipates”, “Predicted”, “Estimated” or similar expressions. Forward looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change without notice, and may be influenced by such factors including but not limited to funding availability, market-related forces (commodity prices, exchange rates, stock market indices and the like) and political, environmental or economic events (including government or community issues, land owners, global or systemic events). Forward looking statements are provided as a general reflection of the intention of the Company as at the date of release of the document, however are subject to change without notice, and at any time. Future events are subject to risks and uncertainties, and as such results, performance and achievements may in fact differ from those referred to in this announcement. Mining, by its nature, and related activities including mineral exploration, are subject to a large number of variables and risks, many of which cannot be adequately addressed, or be expected to be assessed, in this document. Work contained within or referenced in this report may contain incorrect statements, errors, miscalculations, omissions and other mistakes. For this reason, any conclusions, inferences, judgments, opinions, recommendations or other interpretations either contained in this announcement, or referencing this announcement, cannot be relied upon. There can be no assurance that future results or events will be consistent with any such opinions, forecasts or estimates. The Company believes it has a reasonable basis for making the forward looking statements contained in this document, with respect to any production targets, resource statements or financial estimates, however further work to define Mineral Resources or Reserves, technical studies including feasibilities, and related investigations are required prior to commencement of mining. No liability is accepted for any loss, cost or damage suffered or incurred by the reliance on the sufficiency or completeness of the information, opinions or beliefs contained in this announcement. DISCLAIMER This announcement or presentation has been prepared by and issued by Theta Gold Mines Limited (ASX:TGM | OTCQB: TGMGF) to assist in informing interested parties about the Company and should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this announcement. The Feasibility Study referred to in this announcement is based on technical and economic assessments to support the estimation of Ore Reserves. There is no assurance that the intended development referred to will proceed as described, and will rely on access to future funding to implement. Theta Gold Mines believes it has reasonable grounds the results of the Feasibility Study. At this stage there is no guarantee that funding will be available, and investors are to be aware of any potential dilution of existing issued capital. The production targets and forward looking statements referred to are based on information available to the Company at the time of release, and should not be solely relied upon by investors when making investment decisions. Theta Gold cautions that mining and exploration are high risk, and subject to change based on new information or interpretation, commodity prices or foreign exchange rates. Actual results may differ materially from the results or production targets contained in this release. Further evaluation is required prior to a decision to conduct mining being made. The estimated Mineral Resources quoted in this release have been prepared by Competent Persons as required under the JORC Code (2012). Material assumptions and other important information are contained in this release. This announcement or presentation may contain forward looking statements. Whilst Theta Gold Mines has no reason to believe that any such statements and projections are either false, misleading or incorrect, it does not warrant or guarantee such statements. Nothing contained in this announcement constitutes investment, legal, tax or other advice. This overview of Theta Gold Mines does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. Before making an investment decision, you should consult your professional adviser, and perform your own analysis prior to making any investment decision. To the maximum extent permitted by law, the Company makes no representation and gives no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omissions, from any information, statement or opinion contained in this announcement. This announcement contains information, ideas and analysis which are proprietary to Theta Gold. COMPETENT PERSONS STATEMENT The information in this report relating to mineral resources and ore reserves is based on, and fairly reflects, the information and supporting documentation compiled by Mr Uwe Engelmann (BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat. No. 400058/08, MGSSA), a director of Minxcon (Pty) Ltd and a member of the South African Council for Natural Scientific Professions and Mr Daniel van Heerden (B.Ing (Mining M.Com (Business Management), member of Engineering Council of South Africa (Pr.Eng. Reg. No. 20050318)), a director of Minxcon (Pty) Ltd and a fellow of the South African Institute of Mining and Metallurgy (FSAIMM Reg. No. 37309). The original reports titled “Theta Gold Increases Mineral Resource to over 6Moz” dated 16 May 2019, “Optimised Mine Schedule for Theta Open Pit Starter Project Delivers Significant Improvements” dated 20 April 2020 and “Initial Maiden Underground Mining Reserve 419,000 oz Gold” dated 8 April 2021 were released to the Australian Securities Exchange (ASX) on those dates. The Company confirms that: • • it is not aware of any new information or data that materially affects the information included in the ASX announcements; and all material assumptions and technical parameters underpinning the estimates in the ASX announcements continue to apply and have not materially changed. NOTE BUSINESS ARRANGEMENT Theta Gold Mines holds 100% issued capital of its South African subsidiary Theta Gold SA (Pty) Ltd (“TGSA”). TGSA holds a 74% shareholding in both Transvaal Gold Mining Estates Limited (“TGME”) and Sabie Mines (Pty) Ltd (“Sabie Mines”). TGME holds the various exploration and mining permits. The balance of shareholding is held by Black Economic Empowerment (“BEE”) entities. The South African Mining Charter requires a minimum of 26% meaningful economic participation by the historically disadvantaged South Africans (“HDSAs”). The BEE shareholding in TGME and Sabie Mines is comprised of a combination of local community trusts, an employee trust and a strategic entrepreneurial partner. AUTHORISATION This announcement was authorised for release by the Board of Theta Gold Mines Limited. 2 CORPORATE OVERVIEW 3 THETA GOLD HIGHLIGHTS Ø 6.1Moz gold resource @4.17g/t and growing Ø Geological models show gold mineralization fluids have been derived from the Bushfeld complex, the richest metallogenic province on earth Ø Current DFS will deliver a bigger production profile with Low capital requirement, a short payback, high output, long life operations Ø followed by possible self-funded expansion to 160koz within 5 years from seven production units Ø More than 40 other existing pre- developed shallow underground mines to be studied, developed and brought into the resource Ø Forecasted operating cost half the current gold price (<US$900/oz) to become the lowest cost producer in South Africa Ø Diverse Board and Executive team that have successfully financed, developed, built, and optimised numerous mines, including many in South Africa Ø Market Cap / Capital requirement ratio enables feasible project financing Ø DFS complete by this quarter with full engineering designs (FEED) – ready for execution Note: Initial production subject to final DFS completion and funding 4 About Theta Gold Theta Gold Mines Limited controls and dominates the Eastern Transvaal Gold Fields, where South Africa’s gold mining industry began almost 130 years ago. And we’re bringing this large forgotten historical shallow goldfield back to life. The Transvaal Gold System sits geological on the eastern side of Bushveld Complex the largest igneous intrusion on earth. We have already generated and delivered one of the largest gold resources on the ASX not controlled by major mining houses. The gold plant is near the towns of Pilgrim’s Rest and Sabie in Mpumalanga Province, 370km northeast of Johannesburg. The TGME Project has more than 43 historical mines identified across the vast prospective goldfield of 620 square km (or 62,000 hectares). 5 COMPELLING INVESTMENT RATIONALE INVESTMENT CASE SIZE INVESTOR VALUE POTENTIAL GROWTH LOW-COST PRODUCER EXPERIENCED TEAM FLEXIBILITY POSITIVE SOCIO-ECONOMIC IMPACT +6.1Moz of Gold Resources and continuously expanding Reserves, a top 3 undeveloped gold resource on the ASX not owned by majors Undervalued compared to similar size peers Bellevue (ASX: BGL); Nova (ASX: NVA); DRD Gold (NYSE/JSE: DRD) Low-cost expansion based on >130years data (+40 old mines) and recent exploration success +160koz pa (within 5 years) from pre-developed near-surface gold resources Production costs significantly lower than current gold price (AISC) Resource optimisation specialists with over 250 years’ combined experience Multiple entry points provide optionality in the development strategy 1,500 jobs created over 5 years, revitalization of Piligrim’s Rest tourism, knock-on positive effect on host community economy 6 TEAM OF EXPERTS BILL GUY MITFORD MUNDELL JACQUES DU TRIOU CHAIRMAN CEO COO Ex-Jupiter Mines Ltd (ASX: JMS) Chief Exploration Manager. (Jupiter was/is controlled by London based Pallinghurst Group, Chairman Mr. Brian Gilbertson was former Chairman/CEO BHP Billiton). Over 25yrs exploration & resource development experience. Former CEO of Namakwa Diamonds, commissioned and expanded profitable production, extended a 3-year LoM to +20 years. 12 years at Harmony Gold, and 5 years at De Beers. Specialises in asset optimisation and large-scale change execution. Over 16 years at Harmony Gold. Led the Doornkop South Reef Deepening Project and Kusasalethu turnaround. Turnaround and business improvement specialist. FINN BEHNKEN TERENCE MOKALE RICHIE YANG Puseletso Matete NON-EXECUTIVE DIRECTOR RSA DIRECTOR – SOCIAL CORPORATE SERVICES NON-EXECUTIVE DIRECTOR RSA DIRECTOR - ESG Former CEO of Tshipi é Ntle Manganese Mining (Pty) Limited (currently 49% owned by Jupiter Mines Ltd). Admitted attorney of the High Court of South Africa specialising in Social Facilitation. Also consulted for Glencore, Gold One and most recently SibanyeStilwater on community/ stakeholder relations. Former Executive Director of gold resource company Bligh Resources Ltd (ASX: BGH) recently taken-over by Saracens (ASX: SAR). She is currently Head of Sustainable Development & Environment at a tier-1 global mining house. A member of the Lesotho Highlands Development Authority’s Sustainable Development Committee. Puseletso is a true ESG expert. SIMON LIU BRETT TANG BYRON DUMPLETON NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Fund manager; co-founder of Hanhong PE Fund with significant exposure to gold and oil & gas projects globally. Former fund manager at Tasman Funds with >15 years of gold/base metal experience. Over 30 years technical and operational experience. Mr Dumpleton has worked for KCGM (Kalgoorlie Super Pit), WMC (St Ives Gold Mine), Straits Resources, Newcrest (Telfer) and is currently the Chief Geologist for Red 5. 7 ASX LISTING Ordinary Shares ASX: TGM Unlisted options and management performance rights 550m 41.97m Market Capitalisation (undiluted) 61% Top 10 shareholding ~A$72M (~US$52M) 8% Directors & Management 8 PROJECT OVERVIEW 9 SOUTH AFRICA’S “GOLDEN TRIANGLE” THETA GOLD – 6.1MOZ DEVELOPER – TO PRODUCE >160KOZ/A SA host the 3rd largest gold reserves in the world (~6,000T Au) 10 6 UG MINES TARGETED FIRST OUT OF POTENTIAL >40 5 solid growth potential 2 3 Modern mining and treatment methodologies enable low-cost operations (AISC US$900/oz) and reserve expansion Develop multiple mines, reaching >160koz/a within five years, from the resource base of +6Moz 1 LEGEND 1. Beta 2. Frankfort 3. CDM 4. Rietfontein 5. Vaalhoek 6. Glynn’s Lydenburg 6 Various expansion opportunities to increase production and the resource base for >3 decades First three-mine operation, central plant and tailings facility >60koz/a @ 30-37kt/m 4 Expand to >160koz/a - 6 mine operation @ 80kt/m 11 STRATEGY TO BUILD UP TO >160,000OZ/A AU PRODUCTION PROFILE WITHIN 5 YEARS (ONLY 6 OF >40 PRE-DEVELOPED MINES) PHASE 1 COMMISSION Current DFS Stage • • • • • PHASE 2 COMMISSION TBA (PFS was ~60koz/a) 4 mining production units 45 kt/m plant throughput Recommission existing Tailings Storage Facility (TSF) Production from UG (Beta, Frankfort, CDM, Rietfontein) Production 80-100 koz/a PHASE 3 COMMISSION 5 Year ramp up targeted • • • • >160koz/a Expand to 7 mining production units Expand plant throughput to 80 kt/m Expand production to include Vaalhoek, Glynn’s Lydenburg and open pits Production >160 koz/a Assess other 40 old mines, expand reserves through exploration, development and drilling on operating mines and new targets exploration Note: Initial production subject to final DFS completion and funding 12 FINANCIAL PROJECTIONS(PFS 2021) 13 TGME UNDERGROUND INITIAL PRE-FEASIBILITY STUDY 2021 SURFACE INFRASTRUCTURE PLAN BETA UNDERGROUND MINE AND PLANT LAYOUT FIRST 16 % OF UNDERGROUND MINERAL RESOURCE Pay-back period from first gold 13 months Pay-back period from start of mining 22 months 419 Koz delivered to plant over Life of Mine By third year of production, almost 70 koz / year (3 production units) Life of Mine (LoM) 7.67 years US$ 241.2 million EBITDA over LoM Internal Rate of Return 82% US$ 91.2 million Net Present Value US$ 905 / oz all-in sustaining cost (AISC) over LoM (bottom quartile SA Producer) Note: PFS numbers refering to ASX Released dated 13 April 2021 – “Pre-feasibility Study for Initial Underground Project” Total Capital Expenditure (CAPEX) US$ 79 million LOM includes: • • • • Peak CAPEX - $36M (Start-up Plant and Beta Mine development ) Total Direct CAPEX - $54M Total SIB CAPEX - $13.7M Total contingent CAPEX - $10.8 M 14 Note: All $ in USD, PFS based case done at US$1570/oz gold price. LOW-COST SUSTAINABLE GOLD PRODUCER WITH HIGH MARGINS COST DRIVERS PHASE 1 UG $1,500 $1,250 >50% Upside gold Price potential $1,000 $750 $500 $250 AISC GOLD PRICE (US$) $1,750 MARGIN $2,000 Low All-in-Sustaining Cost of US$900 / oz $0 Near surface gold reefs Pre-developed, multiple entry points (flexibility) Modern mining methods – safe, productive Grade Engineering minimum dilution & maximum recovery (Dilution Rate, MCF & PRF) Pre-concentration (DMS, XRT) High recovered grades with fitfor-purpose metallurgical solutions Economies of scale and synergies Access to trained labour force Business approach to mining – Management team with solid track record Note: PFS numbers refering to ASX Released dated 13 April 2021 – “Pre-feasibility Study for Initial Underground Project” Note: 15% contingency was applied to all operating costs and a 20% contingency to all capital costs. 15 LOW-COST SUSTAINABLE GOLD PRODUCER WITH HIGH MARGINS $900 FORECAST TO BE LOWEST COST PRODUCER IN SOUTH AFRICA AND LOWEST COST QUARTILE AUSTRALIAN PRODUCER 16 PRODUCTION UNITS DEFINED DEVELOPMENT DRILL RIG ONE PRODUCTION UNIT: SEVEN PRODUCTION UNITS: PRODUCE 15-20 KT/M (20-30KOZ/A) PRODUCE 100-140 KT/M (UPGRADED TO FEED 80KT/M TO MILL) (>160KOZ/A) MINING FLEET • • • • 2 Dev Drill Rig ($1.6m) 2 Stoping LH Drill Rig ($3m) 2 LHD ($1.6m) 2 LDVs ($0.7m) HUMAN RESOURCES Development - 119 Stoping – 196 Shared Services – 389 Met Plant – 125 • LONG HOLE DRILL RIG • • • ANCILLARY EQUIPMENT • • • • TOTAL – 829 OPERATIONAL 1 Water jet / panel ($40k) 1 Scraper Winch / panel ($170k) 150m Conveyor belts ($220k) 2 Dump trucks (surface) ($2.5m) MODULAR EXPANSION APPROACH TOTAL EQUIPMENT COST - $9.8M HUMAN RESOURCES • • • Development - 17 people Stoping - 28 people Shared production, plant and admin services • Simplistic mining methods • Standardized Synergies Low safety exposure Low operational unit cots Mining fleet (lease or own) – Excellent supplier support • LHD • • • 17 PHASE 1 UG PFS FINANCIAL RESULTS (NEW EXPANDED DFS OUT IN JUNE 2022) • YEAR 7-8 CAPACITY NOT UTILIZED (EXCLUSION OF INFERRED RESOURCES) • WITH THE PLANT CAPACITY FULLY UTILIZED AISC CAN BE MAINTAINED AT US$800/OZ UG Operations Unit 1,500 1,700 1,600 1,800 2,000 USDm 91 81 98 115 132 166 Internal Rate of Return (IRR) % 82% 75% 88% 100% 111% 134% Total Oz in Mine Plan oz 418,845 418,845 418,845 418,845 418,845 418,845 Total Oz Recovered oz 353,012 353,012 353,012 353,012 353,012 353,012 Average Payback Period (from Start of Mining) Months 22 23 21 18 17 16 Peak Funding Requirement USDm 36 36 36 36 36 36 EBITDA over LOM (Undiscounted) USDm 241 222 254 286 318 382 All-in Sustaining Costs (AISC) USD/oz 905 900 909 917 926 942 Gold Price USD/oz 1,570 1,500 1,600 1,700 1,800 2,000 Exchange Rate ZAR/USD 15.89 15.89 15.89 15.89 15.89 15.89 8.00 70,000 7.00 60,000 6.00 50,000 5.00 40,000 4.00 30,000 3.00 20,000 2.00 10,000 1.00 0 0 1 2 3 4 5 6 7 8 9 - 1,800 1,600 1,400 1,200 USD/oz 80,000 GRADE (G/T) RECOVERED Oz NPV @ 5% Forecast 1,000 800 600 400 200 0 0 1 2 3 4 Mill Head Grade 6 7 8 YEARS YEARS Recovered Gold 5 Recovered Grade Note: PFS numbers refering to ASX Released dated 13 April 2021 – “Pre-feasibility Study for Initial Underground Project” Mining cost (Operating) Plant Cost (Operating) Other Costs(Operating) Royalties (Operating) Royalties (Operating) Renewals and replacements (AISC) Reclamation (AISC) Other Costs (AISC) Realised Gold Price 18 OTHER HIGHLIGHTS 19 ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) ESG IS INTEGRAL TO THE DEVELOPMENT STRATEGY AND IS BASED ON: • • • Holistic risk management Zero harm approach to health and safety Environmental stewardship • • • • Conservation of biodiversity Responsible production practices Positive impact on host communities Transparent stakeholder engagement and reporting ENVIRONMENT • • Creating regional SOCIAL GOVERNANCE 26% of project ownership held by • Environmental Development Trusts for local labour force, host communities and strategic black entrepreneur • alien invasive plants removals Establish nature reserves and partners Projects structured for broad based targeted environmental study programs • • Ethical business practices Culture of high ethical standards throughout the organisation economic participation • • Alleviation of poverty TGME will be the biggest employer in the area 20 ENVIRONMENTAL, SCOPING REPORT SUBMITTED， ENVIRONMENTAL APPROVALS COMMUNITY SUPPORTS CONTINUES PROGRESS (MR83) Task Duration Status Submit application for EA Q3 2021 ü Submit draft scoping report Q1 2022 ü Specialists EIA Studies Completed Q1 2022 ü DMRE acceptance of final Scoping report Q2 2022 ü Draft EIA/EMPr submitted for public review Q2 2022 ü Draft IWWMP submitted for public review Q2 2022 ü Expected EIA approvals Q4 2022 Expected Water use approvals Q4 2022 Expected Air Quality Emissions approval Q1 2023 Note: Approvals Duration are based on South African government suggested processing timelines and may be delayed due to unforeseen reasons beyond the Company’s control 21 PROGRESS TOWARDS PRODUCTION ACTIVITIES FUNDING • High grade Rietfontein Mine PFS completed and added as fourth mine into DFS. • Further metallurgical test work on Sulphide ore from Frankfort Mine and free milling ore from Beta, CDM and Rietfontein mines. • All inputs to DFS finalized (Trial mining, engineering designs, etc.). • Various UG sampling programs continue for resource extension. • Old Plant demolished in preparation for plant construction. Q2 2022 Project Financing discussions ongoing. Expected post DFS completion (Q2 2022) • • • • Mining preparation continues at First phase Mines Construction of underground dams and water handling systems Removal of old Mine infrastructure Plant footprint preparations start Q4 2022 • First phase process plant construction starts • Stoping starts at Beta and Frankfort Mines Q1 2022 • DFS completed, incorporating Frankfort, Beta, CDM and Rietfontein mines. • Detailed engineering designs. • UG sampling and resource extension programs continue. Q3 2022 PERMITTING • Permitting activities focused on following the set government timelines and includes extensive stakeholder participation • Scoping report approved in Q2 2022 • Final EIA approval expected in Q4 2022 • Tailings dam re-deposition construction starts • Development starts at Frankfort and Beta Mines Q1 2023 22 CLOSING REMARKS Ø High growth investment opportunity Ø 6.1Moz gold resource @4.17g/t with multiple short term resource expansion opportunities from existing pre-developed mines Ø A solid initial production profile of over 60koz/a, then building to 160koz/a within five years Ø Low capital requirement to establish short payback, high output, long life operations Ø DFS summary by end CY Q2 2022 with full engineering designs (FEED) – ready for execution Ø Environmental approvals for start-up (covering MR83 areas) on track Ø Team of execution experts on-site 23 QUESTION TIME WWW.THETAGOLDMINES.COM TICKER: TGM (TRADE IN AU$) TICKER: TGMGF (TRADE IN US$) BILL GUY MITFORD MUNDELL CHAIRMAN CEO Email: billg@thetagoldmines.com Email: mitfordm@tgme.co.za 24 APPENDICES 25 COMBINED MINERAL RESOURCE STATEMENT - (~6.1MOZ) Combined Mineral Resource Resource Classification Type of Operation Underground Tonnage Gold Grade Mt g/t Gold Content Kg koz 0.091 5.37 489 15.7 0.091 5.37 489 15.7 Underground 4.774 6.21 29 661 953.7 Open Pit 8.109 2.14 17 364 558.2 Tailings 5.244 0.83 4 373 140.6 18.128 2.84 51 398 1652.5 Underground 21.452 5.22 111 880 3597.0 Open pit 4.907 5.11 25 057 805.6 Tailings 0.023 0.57 13 0.4 Rock Dump 0.885 1.20 1 059 34.0 Total Inferred 27.267 5.06 138 009 4 437.0 Grand Total 45.485 4.17 189 896 6 105.2 Measured Open pit Tailings Total Measured Indicated Total Indicated Inferred Notes: 1. UG Mineral Resources are reported at a cut-off of 160 cm.g/t, open pit at 0.5 g/t and 0.35 g/t, tailings and rock dumps at 0.35 g/t. 2. Fault losses of 5% for Measured and Indicated, 10% for Inferred Mineral Resources. 3. Gold price used for the cut-off calculations is USD1,500/oz. 4. Mineral Resources are stated as inclusive of Ore Reserves. 5. Mineral Resources are reported as total Mineral Resources and are not attributed. 26 MINERAL RESOURCE STATEMENT - UNDERGROUND (~4.5MOZ) Mineral Resource Classification Mine Reef Reef Grade Stope Grade Reef Width Stope width Content Reef Tonnes Stope Tonnes g/t g/t cm cm cm.g/t Mt Mt Au Content 7.13 5.37 73 103 520 0.069 0.091 489 koz 15.7 7.13 5.37 73 103 520 0.069 0.091 489 15.7 7.86 13.19 21.66 14.57 13.90 16.97 5.13 3.80 6.58 8.20 6.34 4.62 58 23 23 52 36 25 96 90 90 92 90 90 452 307 499 755 499 416 0.243 0.258 0.716 0.517 0.064 0.026 0.373 0.895 2.357 0.919 0.140 0.091 1,912 3,401 15,506 7,534 887 422 61.5 109.4 498.5 242.2 28.5 13.6 Total Indicated 16.26 6.21 36 91 591 1.824 4.774 29,661 953.7 Total Measured & Indicated 15.93 6.20 38 91 600 1.893 4.865 30,150 969.4 Measured Frankfort Bevetts Total Measured Indicated Mineral Resource Classification Inferred Frankfort CDM Beta Rietfontein Vaalhoek Olifantsgeraamte UG Mine Frankfort CDM Beta Rietfontein Olifantsgeraamte Vaalhoek Vaalhoek Glynns Lydenburg Ponieskrantz* Frankfort Theta* Nestor* Bevetts Rho Beta Rietfontein Vaalhoek Olifantsgeraamte Reef Bevetts Rho Beta Rietfontein Olifantsgeraamte Vaalhoek Thelma Leaders Glynns Portuguese Theta Sandstone Total Inferred kg Reef Grade Stope Grade Reef Width Stope width Content Reef Tonnes Stope Tonnes g/t g/t cm cm cm.g/t Mt Mt Au Content 7.41 10.06 16.51 14.06 18.33 16.28 12.18 15.87 13.26 7.22 5.54 4.27 3.02 5.43 8.52 4.68 4.77 9.47 5.19 3.99 3.24 2.92 48 24 25 57 23 22 96 25 22 34 41 93 90 90 94 90 90 123 90 90 90 90 356 244 414 803 422 361 1166 397 287 244 225 0.343 0.544 1.107 1.190 0.059 0.873 0.023 3.218 0.064 0.099 0.101 0.596 1.811 3.367 1.962 0.248 2.980 0.030 9.833 0.213 0.220 0.193 kg 2,543 5,472 18,285 16,721 1,162 14,209 284 51,078 849 714 562 14.68 5.22 31 91 458 7.622 21.452 111,880 koz 3,597 597.0 81.8 175.9 587.9 537.6 37.3 456.8 9.1 1 642.2 27.3 23.0 18.1 Notes: 1. Mineral Resource cut-off of 160 cm.g/t applied. 2. Fault losses of 5% for Measured and Indicated, 10% for Inferred Mineral Resources. 3. Gold price used for the cut-off calculations is USD1,500/oz. 4. cm.g/t and g/t figures will not back calculate due to variable densities in reef and waste rock. 5. Mineral Resources are stated as inclusive of Ore Reserves. 6. Mineral Resources are reported as total Mineral Resources and are not attributed. 27 MINERAL RESOURCE STATEMENT – OPEN PIT (~1.4MOZ) Mineral Resource Classification Indicated Open Pit Mine Hermansburg DG1 DG2 Vaalhoek Theta & Browns Hill Theta & Browns Hill Theta & Browns Hill Theta & Browns Hill Theta & Browns Hill Iota Iota Iota Iota Reef Reef Grade Reef Width Content Reef Tonnes g/t cm cm.g/t Mt Eluvial Eluvial Eluvial Vaalhoek Shale Bevett's Upper Theta Lower Theta Beta Bevett's Upper Rho Lower Rho Upper Theta Open Pit Mine Hermansburg DG1 DG2 Inferred Reef kg koz 1.79 2.24 0.66 17.25 1.02 1.08 2.41 3.79 2.51 2.98 2.33 2.51 1.06 0 0 0 33 200 223 100 100 100 114 402 520 114 0 0 0 574 204 241 241 379 251 340 937 1306 121 0.505 0.640 1.586 0.111 0.397 0.856 0.651 0.839 0.373 0.108 0.897 0.981 0.163 905 1 432 1 041 1920 404 925 1571 3178 938 323 2090 2464 173 29.1 46.0 33.5 61.7 13.0 29.7 50.5 102.2 30.1 10.4 67.2 79.2 5.6 2.14 168 360 8.109 17 364 558.2 Total Indicated Mineral Resource Classification Au Content Reef Grade Reef Width Content Reef Tonnes g/t cm cm.g/t Mt Au Content kg koz Vaalhoek Vaalhoek Theta & Browns Hill Theta & Browns Hill Theta & Browns Hill Theta & Browns Hill Theta & Browns Hill Eluvial Eluvial Eluvial Vaalhoek Thelma Leaders Shale Bevett's Upper Theta Lower Theta Beta 0.88 0.00 0.00 20.32 14.25 1.12 1.17 1.86 8.06 2.17 0 0 0 43 97 215 217 100 100 100 0 0 0 880 1 388 240 254 186 806 217 0.110 0.000 0.000 0.213 0.293 0.600 0.451 0.948 1.384 0.778 97 0 0 4 319 4 172 668 528 1762 11153 1686 3.1 0.0 0.0 138.9 134.1 21.5 17.0 56.6 358.6 54.2 Iota Upper Rho 5.12 134 687 0.131 673 21.6 5.11 121 617 4.907 25 057 805.6 Total Inferred Notes: 1. Mineral Resource cut-off of 0.5 g/t and 0.35 g/t applied. 2. Fault losses of 5% for Measured and Indicated, 10% for Inferred Mineral Resources. 3. Gold price used for the cut-off calculations is USD1,500/oz. 4. Vaalhoek, Theta Hill, Browns Hill and Iota Mineral Resources stated utilising pit optimisation. 5. Mineral Resources are stated as inclusive of Ore Reserves. 6. Mineral Resources are reported as total Mineral Resources and are not attributed. 28 ORE RESERVE STATEMENT Ore Reserve Classification Proved Total Proved Probable Grade Tonnes g/t kt kg koz 4,24 60 254 8,16 4,24 60 254 8,16 Beta 6,51 1 662 10 822 347,94 Frankfort 4,11 259 1 063 34,16 CDM 2,31 385 889 28,58 Theta Project (MR 83) 2,31 2 164 4 996 160,61 3,98 4 470 17 770 571,29 Operation Frankfort Total Probable Au Content Notes: Underground Operations 1. An Ore Reserve cut-off of 170 cm.g/t has been applied for the Beta Mine. 2. An Ore Reserve cut-off of 150 cm.g/t has been applied for the Frankfort Mine. 3. An Ore Reserve cut-off of 121 cm.g/t has been applied for the CDM Mine. 4. A gold price of USD 1,465 / oz and exchange rate of 16 ZAR / USD was used for the cut- off calculation. 5. Ore Reserves are reported as total Ore Reserves and are not attributed. Theta Project (Open Pit MR 83) 1. An Ore Reserve cut – off of 0.4 g/t was applied. 2. A gold price of USD 1,300 / oz was used for the cut - off calculation. 29 A CENTURY OF HISTORICAL DATA 30 30 MULTIPLE ACCESS POINTS INTO PREDEVELOPED MINES (DESIRE MINE ACCESS) 31 31 31 EXCELLENT GROUND CONDITIONS (FROM NEAR A CENTURY AGO) 32 32 “OLD GOLD” MINING OPORTUNITIES (PACKED NEATLY NEAR A CENTURY AGO) 33 33 FRANKFORT MINE PREPARIN