Koppio Graphite Mine
Building a World-Class Graphite Project
2015 AGM Managing Director’s Presenta on only use personal For LINCOLN MINERALS LIMITED ASX : LML Kookaburra Gully Trench 4 www.lincolnminerals.com.au 12m @ 20.5% graphi c carbon Corporate Snapshot
• A focused emerging graphite producer with ASX Code LML key projects on SA’s Eyre Peninsula – a proven world-class flake graphite province Market Capitalisa on A$10.5 million
• Mining lease applica on being processed by Shares on issue 268.4 million SA Government for the flagship Kookaburra Gully Graphite Project, 35km north of Port 52 Week range 0.03 – 0.06 cents Lincoln, South Australia Cash at 30 September 2015 A$0.44 million • Targe ng maiden graphite produc on and sales of high purity (>94% TGC) concentrate Debt NIL in 2016-17 Sale of Barns Estate property (December 2015) ensures funding available for next 6-9 months
Board Snapshot
Non-Execu ve Chairman - Mr Jin Yubo Managing Director - Dr Allan John Parker
Non-Execu ve Director - Mr Eddie Lung Yiu Pang For personal use only use personal For
97.8% TGC coarse flake graphite concentrate from Kookaburra Gully Lincoln Minerals Limited Emerging Graphite Producer Investment Case
• Focused graphite developer with Australia’s highest quality graphite deposit • Flagship assets ideally located in close proximity to necessary infrastructure • Flagship Kookaburra Gully Graphite Project • Very high-grade deposit ranked in the world’s top 10 highest graphite grade resources • High purity levels of up to 98% TGC easily produced by conven onal flota on • Substan al resource located in recognised mining friendly jurisdic on • Near-term produc on – 2016-17 • Mining Lease in early 2016 (subject to government approvals) • Low capital investment and es mated opera ng costs • Addi onal high grade graphite resource at historic Koppio Graphite Mine and upside at Kookaburra Extended and Gum Flat • PACE program for drilling large Kookaburra Extended graphite target in early 2016 • Direct exposure to graphite and graphite market opportunity
For personal use only use personal For • Founda on shareholder in interna onal graphite trading pla orm headquartered in one of world’s most ac ve graphite trading ports
Lincoln Minerals Limited Emerging Graphite Producer World Class Graphite Assets
South Australia is home to 61% of Australia’s JORC graphite resources including Lincoln’s world-class Kookaburra Gully deposit
SA’s Eyre Peninsula is highly prospec ve for further world-class discoveries
Kookaburra Gully South Australia – ranked in top 20 as world’s most a rac ve des na on for mining For personal use only use personal For investment by Fraser Ins tute
Lincoln Minerals Limited Emerging Graphite Producer Kookaburra Gully High-grade high-quality graphite resource Flake graphite JORC Mineral Resource: • 2.2 Mt Indicated and Inferred at 15.1% TGC (5% TGC cutoff) • or 3.16 Mt Indicated and Inferred at 11.5% TGC (2% TGC cutoff)
Global Resources by Graphite Grade Skaland,#Norway# Nunasvaara,#Sweden#(TLG)# Munglinup,#Western#Australia# Balama#West,#Mozambique#(SYR)# “Kookaburra Gully is Lac#Gueret#East,#Canada# Balama#East#high#grade,#Mozambique#(SYR)# within the Top 10 Kookaburra#Gully,#South#Australia#(LML)# Lac#Knife,#Canada# global resources Raitajarvi,#Sweden#(TLG)# Kringel,#Sweden# Mahenge,#Tanzania#(KNL)# based on graphite Koppio,#South#Australia#(LML)# Campoona,#South#Australia#(AXE)# grade and is capable Asbury#Graphite,#Quebec# Wilclo#South,#South#Australia#(AXE)# of delivering near- Uley,#South#Australia#(VXL)# Gropabo,#MaDsmyra#&#Mansberg,#Sweden# term produc on at Molo,#Madagascar# Graphite#Creek,#Alaska# low cost.”
For personal use only use personal For McIntosh,#Western#Australia#(LMB)# Loharano,#Madagascar# Albany,#Canada# 0.0# 5.0# 10.0# 15.0# 20.0# 25.0# Graphite)Grade)(%)TGC)) TGC = Total Graphi c Carbon Lincoln Minerals Limited Emerging Graphite Producer Graphite Market Fundamentals
BATTERY & ENERGY STORAGE COMMERCIALISATION • Graphite is a key input in the manufacture of lithium-ion ba eries • Ba eries widely used in electric vehicles, smart phones, portable computer devices and more – ba ery backup for solar powered homes and grid-scale solar power storage and power genera on WIDESPREAD INDUSTRIAL APPLICATIONS • Graphite is used in pencils, dry lubricants, steelmaking, pebble-bed nuclear reactors, solar energy, reinforcements in plas cs and much more
12,000" Panasonic(Li*ion(ba,ery(growth(forecast( (Japanese(Yen((bn))( 10,000" Automotive battery demand to grow by at least 15% 8,000"
Automo/ve" 6,000" Storage battery demand Storage" to grow by 75% from 2017 4,000"
For personal use only use personal For 2,000"
0" 2014" 2016" 2020" 2025" Lincoln Minerals Limited Emerging Graphite Producer Kookaburra Gully – Low Impact Mine Plan
• Small open pit & process plant (cf Uley Graphite Mine) = small environmental footprint (103 Ha) • Process 250,000 tonnes per annum (tpa) ore • Produce up to 40,000tpa of high grade (93-98% Tumby Bay TGC) graphite concentrate
Realisable infrastructure solu ons Kookaburra Gully • Water – pipeline from Tod Reservoir (10 km) + mains water for final product cleaning Tod Reservoir • Power – onsite genera on and/or grid (ca. 5km from 33 kV transmission line) (2-4 MW) • Transport to Port Lincoln (35km) in bulka bags or
in containers to Port Adelaide for shipping For personal use only use personal For
Lincoln Minerals Limited Emerging Graphite Producer D
A
O
R A T !( R
O Kookaburra Gully W A L L I Mining Lease Applica on P !( Legend Progress !( Roundabout
D A Drainage channel O
R • Mineral Claims registered A MC 4372 T Natural channel !( R
O November 2014 W North West waste dump A !( L L I South waste dump • MLP lodged February 2015 P Road !( !( • EPBC Referral lodged April Legend Subsoil stockpile !( 2015 Roundabout To psoil stockpil e Drainage channel Mineral claim boundary • Revised MLP lodged May Natural channel North West waste dump Carpark 2015 !( South waste dump Fuel storage Road • Government & public !( Fuel storage & refill area Subsoil stockpile assessment period – To psoil stockpil e Hard stand September-October 2015 Mineral claim boundary Offices Carpark Drainage structure Fuel storage • Response document in Magazine Fuel storage & refill area prepara on – to be lodged Hard stand Process plant December 2015 Offices MC 4373 Offices/admin Drainage structure Proposed pit Mining Lease offer Magazine
Process plant Silt detention pond For personal use only use personal For early 2016 Offices/admin ROM pad Proposed pit Tailings storage facility (subject to SiltGovt detention approvals) pond TSF embankment ROM pad Tailings storage facility Water storage/treatment TSF embankment Lincoln Minerals LimitedWater storage/treatment Emerging Graphite Producer
Data source: - Map no: 2200002A_GIS_020_A 0 100 200 Kookaburra Gully Scoping Study Data source: - Map no: 2200002A_GIS_020_A 0 100 200 Kookaburra GullyAuthor: Scoping RP/MB Study m and Environmental Approvals Author: RP/MB m and Environmental Approvals ± ± © Parsons Brinckerhoff Australia Pty Ltd ("PB") Copyright in the drawings, information and data recorded 1:12,000 Preliminary concept design © Parsons Brinckerhoff Australia Pty Ltd ("PB") Copyright in the drawings, information and data recorded 1:12,000 ("the information") is the property of PB. This document and the information are solely for the use of the PreliminaryApproved concept by: LVC design ("the information") is the property of PB. This document and the information are solely for the use of the Approved by: LVC authorised recipient and this document may not be used, copied or reproduced in whole or part for any authorised recipient and this document may not be used, copied or reproduced in whole or part for any August 2014 Scale ratio correct when printed at A3 August 2014 purpose other than that which it was supplied by PB. PB makes no representation, undertakes no duty Scale ratio correct when printed at A3 purpose other than that which it was supplied by PB. PB makes no representation, undertakes no duty and accepts no responsibility to any third party who may use or rely upon this document or the information. and accepts no responsibility to any third party who may use or rely upon this document or the information. Projection: Transverse Mercator Projection: Transverse Mercator NCSI Certified Quality System to ISO 9001. © APPROVED FOR AND ON BEHALF OF Parsons NCSI Certified Quality System to ISO 9001. © APPROVED FOR AND ON BEHALF OF Parsons Date: 1/09/2014 Coordinate system: GDA 1994 MGA Zone 53 Date: 1/09/2014 Brinckerhoff Australia Pty Ltd. Trademarks provided under license from ESRI. Brinckerhoff Australia Pty Ltd. Trademarks provided under license from ESRI. Coordinate system: GDA 1994 MGA Zone 53 Lincoln Minerals \\Apadlfil01\proj\L\Lincoln_Minerals\2200002A_KOOKABURRA_KOPPIO_ENVIRONMENT\10_GIS\Projects\Maps\2200002A_GIS_020_A.mxd www.pbworld.com Lincoln Minerals \\Apadlfil01\proj\L\Lincoln_Minerals\2200002A_KOOKABURRA_KOPPIO_ENVIRONMENT\10_GIS\Projects\Maps\2200002A_GIS_020_A.mxd www.pbworld.com Kookaburra Gully Robust Project Economics
Low capital investment less than $50 million and compe ve cash opera ng costs
AMC Conceptual Mine Plan (based on 2012-13 prices) $350.0$ Project#Cash#Flow#(pre;tax#A$m)#
$300.0$
2015 graphite price range $250.0$ for Kookaburra Gully concentrate (A$/US$ = 0.75): $200.0$
A$1,000 to A$ 1,500 /tonne A$#million# $150.0$ A$/US$$rate$0.90$ $100.0$ A$/US$$rate$0.75$ A$/US$$rate$1.00$ For personal use only use personal For $50.0$ South Australia offers a competitive AMC$model$(0.92)$ graphite royalty scheme – 2% for $0.0$ the first 5 years, 3.5% therafter $800$ $900$ $1,000$ $1,100$ $1,200$ $1,300$ $1,400$ $1,500$ Graphite#Price#US$/tonne# Lincoln Minerals Limited Emerging Graphite Producer Upside – world-class graphite poten al
Project Current Status 2015- 2016 • Indicated & Inferred JORC Mineral • Pilot plant metallurgical studies Resource • Customer and market • 2.2 Mt @ 15.1% TGC development KOOKABURRA GULLY • Scoping studies completed • Obtain ML & approval to mine • Mineral Claims pegged • Develop & commission mine & • Mining Lease Applica on process plant in 2016-17 submi ed Feb 2015 • Historic mine • Reconnaissance drilling 2014 • 1.85 Mt @ 9.8% TGC KOPPIO GRAPHITE MINE • JORC Resource July 2015 • High grade mineraliza on up to • Metallurgical tes ng 2016-17 43% TGC over 500m strike length KOOKABURRA GULLY • EM survey completed • Drilling & JORC Resource 2016 EXTENDED • 4.5km long EM anomaly • Large explora on target (Immediate target) • Approval to drill received • 2015 PACE program grant GUM FLAT-SLEAFORD For personal use only use personal For • Adjacent Uley Graphite Mine • Explora on targeted 2016-17 (Long-term target)
Lincoln Minerals Limited Emerging Graphite Producer Other Projects Mine Development
Reserves
Feasibility Studies Kookaburra Gully Mine Planning Graphite Gum Flat Scoping Studies Hema te & Magne te Koppio Resources Eurilla Fe Graphite
Minbrie Cu Pb Zn Ag Explora on Drill Eurilla U Cockabidnie Ni Co Eurilla Cu Pb Zn Successes Cummins Fe Gum Flat Graphite
Tumby Cu Pb Zn Ni Kookaburra Extended Graphite Targets
For personal use only use personal For Du on R-Mt Hill-Wanilla Gr U Nantuma Fe White Flat U V Gr Uno Ag Mn Prospect Quality / Poten al Lincoln Minerals Limited Emerging Graphite Producer Base metal poten al • Historical mining on Eyre Peninsula for copper, lead and silver goes back to the mid-1800s - Tumby Bay region - Minbrie-Cleve-Cockabidnie region • Significant new discoveries include Menninnie Dam (lead- zinc), Paris (silver) and Minbrie (copper-lead-zinc) • Proven copper-lead-zinc, uranium, nickel-cobalt, vanadium, manganese & silver
For personal use only use personal For Lincoln Minerals has several strategic copper targets for explora on in 2016
Lincoln Minerals Limited Emerging Graphite Producer Summary
• Focused graphite company with Australia’s highest quality graphite deposit • Flagship Kookaburra Gully Graphite Project • Very high-grade deposit ranked in the world’s top 10 highest graphite grade resources • High purity levels of up to 98% TGC easily produced by conven onal flota on • Located in close proximity to necessary infrastructure • Substan al resource in recognised mining friendly jurisdic on • Near-term produc on – 2016-17 • Mining Lease in early 2016 (subject to government approvals) • Low capital investment and es mated opera ng costs • Direct exposure to graphite and graphite market opportunity • Founda on shareholder in interna onal graphite trading pla orm headquartered in one of world’s most ac ve graphite trading ports
• PACE program for drilling large Kookaburra Extended graphite target in early 2016 For personal use only use personal For • Ongoing explora on program for copper, gold, nickel, iron ore
Lincoln Minerals Limited Emerging Graphite Producer subsoil TSF
WRSF South pit ROM pad WRSF West process plant topsoil
Kookaburra Gully Conceptual Mine Plan
THANKYOU Dr. A. John Parker Managing Director LINCOLN MINERALS LIMITED
+61 8 8274 0243 For personal use only use personal For [email protected]
Lincoln Minerals Limited Emerging Graphite Producer Important No ce
This presenta on has been prepared by Lincoln Minerals Limited (“LML") and Australian Graphite Pty Ltd (“AGL”) as an aid to a spoken explana on. It should not be considered as an offer or invita on to subscribe for or purchase any securi es in LML or AGL nor as an inducement to make an offer or invita on with respect to those securi es. AGL is a wholly-owned subsidiary of LML; all rights and interests in graphite minerals and associated minerals in certain tenements are assigned to AGL. Informa on in this presenta on is a professional opinion only but is given in good faith. Forward-Looking Statements This presenta on contains forward looking statements concerning the Kookaburra Gully Graphite Project. Statements concerning Mineral Resources, mine plans and project economics may be deemed to be forward looking statements in that they involve es mates based on specific assump ons. Forward-looking statements are not statements of historical fact, and actual events and results may differ materially from those described in the statements as a result of a variety of risks, uncertain es and other factors. Forward looking statements are based on AGL’s and LML’s beliefs, opinions and es mates as of the date the statements are made and no obliga on is assumed to update forward looking statements if these beliefs, opinions and es mates should change or to reflect other future developments. Data and amounts shown in this presenta on rela ng to capital costs, opera ng costs, graphite prices and project melines are based on consultant reports and internally generated es mates and are best es mates only. Accordingly, AGL and LML cannot guarantee the accuracy and/or completeness of the figures or data included in the presenta on. All dollar amounts are in Australian dollars unless otherwise stated. Competent Person’s Statement Informa on in this presenta on that relates to explora on ac vity, mineral resources and results was compiled by Dr A J Parker who is a Member of the Australasian Ins tute of Geoscien sts. Dr. Parker is Managing Director of and has shares in Lincoln Minerals Limited. He has sufficient experience relevant to the styles of mineralisa on and to the ac vi es which are For personal use only use personal For being presented to qualify as a Competent Person as defined by the JORC code, 2012. Dr. Parker consents to the release of the informa on compiled in this presenta on in the form and context in which it appears.
Lincoln Minerals Limited Emerging Graphite Producer Appendix
This presenta on has been prepared by Lincoln Minerals Limited (“LML") as an aid to a spoken explana on. The informa on contained in this presenta on is based on a number of public statements, Quarterly Reports and ASX releases made by LML: References • Lincoln Minerals, 2013. Updated Graphite Mineral Resources for Lincoln’s world-class Kookaburra Gully project in South Australia’s Eyre Peninsula. Lincoln Minerals Limited, ASX Announcement 19 December 2013. • Lincoln Minerals, 2015. Maiden graphite resource for second Lincoln deposit in SA’s Eyre Peninsula li s total inventory by >50% in this world-class province. Lincoln Minerals limited, ASX Announcement 13 July 2015. • Australian Graphite Limited, 2015. Community Informa on Update No.4, Kookaburra Gully Graphite Mine, Mining Lease Proposal. Lincoln Minerals Limited website, September 2015 • Lincoln Minerals, 2015. 2014-2015 Annual Report. Lincoln Minerals Limited October 2015.
Informa on extracted from previously published reports iden fied in this report is available to view on the Company’s website www.lincolnminerals.com.au. The company confirms that it is not aware of any new informa on or data that materially affects the informa on included in the original market announcements and, in the case of es mates of Mineral Resources, that all material assump ons and technical parameters underpinning the es mates in the relevant market For personal use only use personal For announcements con nue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.
Lincoln Minerals Limited Emerging Graphite Producer
Kookaburra Gully Mineral Resource For personal use only use personal For
Lincoln Minerals Limited Emerging Graphite Producer
Koppio Mineral Resource For personal use only use personal For
Reference: Lincoln Minerals, 2015. Maiden graphite resource for second Lincoln deposit in SA’s Eyre Peninsula lifts total inventory by >50% in this world-class province. Lincoln Minerals limited, ASX Announcement 13 July 2015. Lincoln Minerals Limited Emerging Graphite Producer