金川集团国际资源有限公司 J i n c h u a n G r o u p International R e s o u r c e s Co. L t d Table of contents 01 C o m p a n y O v e r v i e w

02 Company Business

03 Investment Highlights

04 Financial Performance

05 Development Strategy

06 Q&A

2

Business overview • Jinchuan Group International Resources (“Jinchuan International”, the Company) is a majority-owned subsidiary of Jinchuan Group and flagship platform for overseas resources development. The Company is listed on Main Board of the Hong Kong Stock Exchange (2362.HK) • With substantial support from Jinchuan Group, the Company continues to buildup on international mining resources development and operations. Jinchuan International owns a number of large-scale high-quality copper and cobalt mines in Africa, and engaged in production and trading of base metals. Mining assets include:

Ruashi Located in the DRC, the mine consists of 3 open-pit deposits and 1 processing plant, producing copper cathode and cobalt （75%） hydroxide; copper cathode and cobalt hydroxide output reached 34kt and 5.1kt respectively in 2019 Chibuluma Mines in Located in Zambia, the operation comprises of 2 underground mine and 1 top pillar mining open-pit mine, producing copper South Mine production concentrates; produced 8.2kt of copper in 2019 (85%) Kinsenda Located in the DRC, underground mine producing copper concentrates, as one of the world’s highest-grade copper deposits, the （77%） mine has a copper grade of 5.7%; and an annual copper production is 31kt in 2019

Development Musonoi Located in the DRC with high grade of cobalt (0.9%), the project is in construction phase with feasibility study and mine design and （75%） completed Exploration Lubembe Located in the DRC, a pre-feasibility study was completed and now in the exploration stage Projects （77%）

Recent performance

2017 2018 2019 43kt Cu 62kt Cu 73kt Cu Production 4.6kt Co 4.8kt Co 5.1kt Co Sales USD550m USD1,400m USD1,250m EBITDA USD102m USD214m USD116m

Net Profit Attributable to Shareholders USD41.62m USD66.93m USD8.75m

Source: Company information 4 Summary of reserves and resources (Prepared on Dec 31, 2019)

Ore Grade Contained Metal Mt % % kt kt Copper&Cobalt Copper Cobalt Copper Cobalt Proved 11.5 3.2 0.9 366 103 Probable 21.0 2.4 0.5 497 109 Total reserves 32.5 2.7 0.7 863 212 Measured 17.6 2.8 0.8 489 148 Indicated 41.9 2.1 0.4 874 187 Inferred 19.8 2.0 0.6 400 120 Total resources 79.2 2.2 0.6 1,763 455 Only Cobalt Proved 0.3 3.1 - 10 - Probable 5.7 5.7 - 322 - Total reserves 6.0 5.5 - 333 - Measured 1.1 4.0 - 45 - Indicated 68.9 2.4 - 1,677 - Inferred 48.3 2.5 - 1,220 - Total resources 118.3 2.5 - 2,942 - Jinchuan International Summary Total reserves 38.5 1,196 212 Total resources 197.5 4,705 455 5  Following Jinchuan Group’s acquisition of controlling stake in Macau Investment Holdings in Nov 2010, Macau Investment Holdings was renamed as Jinchuan Group International Resources Co. Ltd  In Sept 2013, Jinchuan International was approved by its shareholders to acquire Metorex’s assets from Jinchuan Group via issuance of 1,595,880,000 shares (at an issue price of HK$1.00 per share) and 8,466,120,000 shares of PSCS which could convert into ordinary shares at a conversion price of HK$1.00 per share  In March 2017, the Company issued 483,000,000 new ordinary shares to introduce SD Hi-Speed Investment HK Limited as a strategic shareholder  In Jun 2018, Jinchuan Group (Hong Kong) transferred and converted part of the PSCS it held, whereby Jinchuan International successfully introduced 9 investors, including Gansu Province Xinye Asset Management, Gansu Province Economy Cooperation Corp, Haitong International and Valuestone Advisors Limited

Jinchuan Group Co., Ltd

100%

Other Public Shareholders Jinchuan Group (Hong Kong) Gansu Province Xinye Asset Gansu Province Economy Resources Management Co. Ltd. Cooperation Corporation

22.55% 60.01% 8.80% 8.64%

Jinchuan International (“2362.HK”)

75% 85% 77%

15% 25% Gécamines ZCCM 23% Sodimico

RuashiMine Musonoi Project Chibuluma South Mine Kinsenda Project Lubembe Project (In production) （Under constrution） (In production) (In production) (Exploration stage)

6 LTM share price performance

(HK/Share) (mm shares)

0.9 120

0.8 100 0.7 Current price：HK$0.64

0.6 80

0.5 60 0.4

0.3 40

0.2 20 0.1

0 0 2019/7/8 2019/8/8 2019/9/8 2019/10/8 2019/11/8 2019/12/8 2020/1/8 2020/2/8 2020/3/8 2020/4/8 2020/5/8 2020/6/8

Stock information

Stock code Issued shares Share price Market Cap 52-week price range

2362.HK 12,609,873,051 HK$0.64 HK$8,070m HK$0.435~0.87

Source：Company information Note：Market data as of July 6, 2020

7

Ruashi Mine ⚫ Location： Lubumbashi, Katanga Province, DRC ⚫ Ownership: Jinchuan Intl. (75%), Gecamines (25%) ⚫ Products: Cathode copper, cobalt hydroxide ⚫ LoM: 10 years ⚫ Reserves: 268kt Cu, 29kt Co ⚫ Resources: 678kt Cu, 92kt Cu ⚫ 2019 production: 34kt Cu, 5.1kt Co ⚫ 2019 revenue: USD274m

Kinsenda Mine ⚫ Location：Katanga Province, DRC ⚫ Ownership: Jinchuan Intl. (77%), Sodimico(23%) Musonoi Project ⚫ Product: Copper concentrates, blister copper ⚫ LoM: >10 years ⚫ Location: Northern outskirts Kolwezi town, DRC DRC ⚫ Reserves: 326kt Cu ⚫ Ownership: Jinchuan Intl. (75%) ,Gecamines SA (25%) ⚫ Resources: 1085kt Cu ⚫ Progress：Construction stage ⚫ 2019 production: 31kt Cu ⚫ Reserves：595kt Cu, 183kt Co ⚫ 2019 revenue: USD154m ⚫ Resources: 1086kt Cu, 363kt Co Zambia Chibuluma South Mine ⚫ Location：Zambia Lubembe Project ⚫ Ownership: Jinchuan Intl. (85%), ZCCM (15%) ⚫ Product: Copper concentrates ⚫ Location: Haut-Katanga Province, the DRC ⚫ LoM: 3 years ⚫ Ownership: Jinchuan Intl. (77%), Sodimico(23%) ⚫ Reserves: 7kt Cu ⚫ Progress : Pre-feasibility study completed in 2018 ⚫ Resources: 56kt Cu ⚫ Resources 1,800kt Cu ： ⚫ 2019 production: 8.2kt Cu ⚫ 2019 revenue：USD 38.2m

9 Asset overview Reserves and resources summary (Prepared on 31 Dec 2019)

Ore Grade Contained metals

Mt % % Kt Kt

Oxide+mixed minerals Cu Co Cu Co

Proved 0.1 6.1 0.4 6 -

Probable 7.1 2.9 0.2 201 14

Total reserves 7.2 2.9 0.2 207 15

Oxide stockpile and tailings Open-pit mining Leach SX-EW processing Total reserves 5.0 1.2 0.3 61 14

Oxide+mixed minerals

Total resources 12.4 2.2 0.2 274 23

Operating situation Key products Oxide stockpile and tailings Total resources 5.0 1.2 0.3 61 14 ⚫ Open-cast oxide copper and cobalt mine ⚫ Key products include copper cathode and Sulphide within ultimate pit with potential sulfide in deep orebody cobalt hydroxide shell ⚫ Copper cathode capacity of 40ktpa Total resources 2.0 2.8 0.3 56 5 ⚫ Copper cathode is mainly sold to traders ⚫ Cobalt capacity of 6ktpa like Wanbao Mining, Trafigura Beheer Oxide and mixed outside of ultimate pit shell -potentially ⚫ Phase III project underway which could ⚫ Cobalt hydroxide is sold to international exploitable from further extend mine life; construction of trading company through off-take underground a new roaster facility will be completed agreements Total resources 3.8 2.4 0.3 93 11 in 2019 to process self-produced ore and Sulphide outside of ultimate raw materials sourced externally pit shell -potentially exploitable from ⚫ Copper and cobalt production increase underground by 40% and 7% respectively in 2019 Total resources 11.2 1.7 0.3 194 39

10 Asset overview

⚫ One of the world’s highest grade ⚫ Kinsenda Concentrator completed in copper deposits, with good access to May 2015 infrastructure ⚫ Production started in Oct 2016 ⚫ The mine life is more than 10 years, ⚫ The first batch of concentrates was and there exists substantial addition exported in Nov 2017 ore resources that could extend the ⚫ Part of copper concentrate will be mine life to 20 years and beyond processed into blister copper for sale from 2020

Reserves and resources summary (Prepared on 31 Dec 2019) Production and sales

Key products Contained Ore Grade metals Mt % kt Copper Concentrates Cu Cu Proved 0.1 4.9 3 ⚫ In 2019, the annual output of copper is 31,000 tons, an increase Probable 5.7 5.7 323 of about 13% from 2018 Total reserves 5.7 5.7 326 Measured 0.7 4.5 32 ⚫ The higher production was mainly due to higher input and Indicated 12.1 5.2 631 higher average ore grade of 4.9% during 2019 Inferred 10.3 4.1 422 Total resources 23.1 4.7 1,085

11 Musonoi Project

Asset overview

⚫ An underdeveloped copper and cobalt project located on the ⚫ The project is planned to start construction in 2018 and be northern outskirt Kolwezi, DRC. completed in early 2022. Once completed and operational, the project will produce 137.7kt of copper and cobalt mixed ⚫ In 2018, the ENFI Feasibility Study on optimization studies concentrate (@ 28% Cu and 5.6% Co) on per annum. and detailed engineering works was completed and first reserves were declared for the project. ⚫ On August 16, 2018, Jinchuan International entered into a strategic cooperation framework agreement with Chengtun ⚫ High grade of cobalt content with reserve ore grade of 0.9%. Mining Group Co., Ltd. Chengtun Mining intended to purchase ⚫ Gecamines SA approved the ENFI Feasibility Study in May the oxide ore emanating from the Dilala West ore body in the 2019. Musonoi Porject. The agreement is expected to reduce the ⚫ The main shaft construction commenced in December 2019 remaining capital expenditure needs of the Musonoi project and the main ramp construction commenced in January 2020.

Resources summary (Prepared on 31 Dec 2019) Ore Grade Contained metals Mt % % Kt Kt Musonoi (oxide) Cu Co Cu Co Proved 2.8 3.2 1.1 89 29 Probable 0.7 2.0 0.7 13 13 Total Reserves 3.4 3.0 1.2 102 42 Measured 4.8 3.1 1.0 146 49 Indicated 1.2 1.8 0.8 22 10 Inferred 1.5 2.0 0.7 30 11 Total resources 7.5 2.6 0.9 199 70 Musonoi (mixed+sulphide) Proved 8.6 3.1 0.9 271 73 Probable 8.3 2.7 0.8 222 67 Total reserves 16.9 2.9 0.8 493 141 Measured 12.7 2.7 0.8 337 99 Indicated 13.0 2.3 0.8 293 107 Inferred 11.5 2.2 0.8 257 87 Total resources 37.1 2.4 0.8 887 293 12 Lubembe Project

Asset overview

Project description Mining & Mineral processing ⚫ Preferred mining method is Long-hole Retreat (LHR) or Modified ⚫ An exploration project located 30km south of Kinsenda Mine Longitudinal Sub-level Cave (SLC) ⚫ Low grade, bulk mineable, mixed oxide/sulphide deposit ⚫ Differential Flotation Concentrator to produce sulphide and oxide ⚫ Mining license renewed in 2016 and extended for a further to 2032 concentrate separately ⚫ A pre-feasibility study was completed in 2018 and is currently under ⚫ Sulphide concentrate will be sold to nearby smelters in Zambia for review smelting and refining

Resources summary (Prepared on 31 Dec 2019)

Contained Ore Grade metals

Mt % Kt

Cu Cu

Measured - - -

Indicated 56.5 1.8 1,039

Inferred 36.6 2.1 761

Total resources 93.1 1.9 1,800

13 14 Investment highlights

Extremely rare & mature miner of copper and cobalt in HK market

1 An international copper & cobalt miner with sizable production and high quality resources

2 Top-of-the-class copper & cobalt grades and highly competitive cost profile

A strong growth profile supported by an attractive pipeline of producing mines, development 3 projects and advanced exploration projects providing strong foundation to capture future Cu & Co market opportunities Jinchuan International 4 Highly experienced board and management with exceptional track record

A flagship platform for undertaking overseas capital operations with strong support from parent 5 company – Jinchuan Group, a highly-reputed Gansu provincial SOE

6 Rapid growth underpinned by strong fundamentals of copper and cobalt markets

15 1. An international copper & cobalt miner with sizable production and high quality resources

2019 copper and cobalt production reached new high Abundant high-quality Cu & Co resources

Mined copper production (10kt) Mined cobalt production (kt) Reserves Resources 7.3 500 470.5 455.0

6.2 400 5.4 5.1 4.8 4.7 4.8 4.3 4.3 4.3 300 3.9 3.4 212.0 200 119.6 100

0 Cu (10kt) Co (kt) 2014 2015 2016 2017 2018 2019 Source: Company information, 2019 copper and cobalt reserves and resources data One of the only two Hong Kong-listed cobalt producers and a top 10 global cobalt producer

No. Company Country Co reserves (Kt) Co resources (Kt) Co production p.a. (Kt) 1 Glencore Switzerland 346 2,281 46.3 2 CMOC China 566 2,487 16.1 3 Eurasian Resources UK n/a n/a 7.5 4 Sherritt Canada n/a n/a 6.3 5 Huayou Cobalt China 54.1 n/a 6.1 6 Jinchuan International China 212 455 5.1 7 Shalina Resources DRC 383 n/a 4.5 8 Vale Brazil n/a n/a 4.4 9 Wanbao Mining China 430 n/a 4.2 10 China Railway Resources China 624 n/a 4.0 16 2. Top-of-the-class copper & cobalt grades and highly competitive cost profile

Benchmarking of Cu grade against top 5 producing copper mines Benchmarking of Co grade against top 5 producing copper mines

Copper resources grade, % Cobalt resources grade, % 1.0 5.0 4.7% Global top 5 operating copper mines 0.82% 4.5 Global top 5 operating cobalt mines 4.0 0.8 0.70% 3.5 2.6% 3.0 2.4% 2..0% 0.6 2.5 1.9% 2.0 0.43% 1.5 0.4 0.97% 0.87% 0.29% 1.0 0.73% 0.35% 0.23% 0.3% 0.5 0.2 0.0 Kinsenda Chibuluma Musonoi Ruashi Lubembe Grasberg Escondida Collahuasi Cerro Morenci n/a Verde 0.0 Country DRC Zambia DRC DRC DRC Indo Chile Chile Peru USA Musonoi Ruashi Mutanda Tenke Etoile Polar Operator Country DRC DRC DRC DRC DRC Russia Operator

Highly competitive cash cost position 2019 global copper C1 cash cost curve (USD/lb Cu; post by-product credits)

0 4391 8783 13174 17654 tonnes) COPPER(000 PAID 4.00

1st quartile 2nd quartile 3rd quartile 4th quartile 3.00

2.00

Jinchuan Intl.

1.00

PRODUCTION (%) 0.00 0% 25% 50% 75% 100% 17 3. A strong growth profile supported by an attractive pipeline of producing mines, development projects and advanced exploration projects providing strong foundation to capture future Cu & Co market opportunities Current asset portfolio is reasonably arranged with significant potential upside with key development project Musonoi to become another important source of profit to the Company

Evolution of Company’s mined cobalt production, kt Estimated Capacity 12.9kt

Producing Mines Ruashi Cobalt production: 5.1kt Development project Musonoi Cobalt production：7.8kt

World-class large high-grade cobalt mine

Long term 2019 …. 2022 ….

Source: Company information Note: Capacity consolidated based on 100% equity interest 18 3. A strong growth profile supported by an attractive pipeline of producing mines, development projects and advanced exploration projects providing strong foundation to capture future Cu & Co market opportunities Current asset portfolio is reasonably arranged with significant potential upside with key development project Musonoi to become another important source of profit to the Company

Evolution of Company’s mined copper production, kt Estimated capacity 111 kt

Operating mine Development mine Musonoi Exploration project Lubembe

Total Copper production: 73kt Copper production: 38kt Other projects

Ruashi

34kt

Chibuluma

8kt

Kinsenda

31kt World-class large high-grade cobalt mine

2019 …. 2022 …. Long term Source: Company information Note: Capacity consolidated based on 100% equity interest 19 4. Highly experienced board and management with exceptional track record

Zhang Youda Non-executive director, Gao Tianpeng Executive director, CEO Chairman of the Board  During his 27-year career at the Company, he has taken on various  He is an AIA and CGMA responsibilities, including cost management, financial management,  He is now vice president of Jinchuan Group & General Manager of international trade management, risk management, foreign Financial Department exchange business, capital operation, the equity division reform of  He has extensive experience in financial management Jinchuan Group, and daily affairs of the Board

Cheng Yonghong Executive director WU Chi Keung Independent non-executive director  Graduated from University of Science and Technology Beijing with a  Mr. Wu was appointed an independent non-executive director of degree in Ferrous Metallurgy the Company since Jan 2011  Technical professional with extensive operational management  He is an associate member of HKICPA and a fellow member of experience in nonferrous pyrometallurgy and hydrometallurgy ACCA (UK); he has more than 30 years of experience in financial  Head of the African Region of Jinchuan Group, since 1 April 2020 audit

Non-executive director Liu Jian Yen Yuen Ho Independent non-executive director  Bachelor’s degree in Accounting from the Lanzhou University of  Mr. Yen was appointed an independent non-executive director of Technology the Company since Aug 2010  Deputy general manager of costing department of Jinchuan Group  Mr. Yen is an Mr. Yen is an Adjunct Professor of the Beijing  Worked in various positions within JCG and its subsidiaries since 1994, Normal University and an Honorary Court Member of the court of with extensive experience in financial reporting and management the HKUST

Wang Qiangzhong Non-executive director Poon Chiu Kwok Independent non-executive director  Mr. Poon has 25+ years of experience in regulatory affairs,  Mr. Wang has senior engineer qualification and extensive corporate finance, listed companies governance and management; experience in financial management and operations management he holds a master’s degree in international accounting, a post-  He currently holds the position of director of Baiyin Nonferrous graduate diploma in laws, a bachelor’s degree in laws and a Group Co., Ltd. bachelor’s degree in business studies

Source: Company information 20 5. Strong support from shareholder– Jinchuan Group, a highly-reputed Gansu provincial SOE

Mother company, Jinchuan Group overview Product portfolio

Business overview: • Jinchuan Group is a large-scale non-ferrous mining conglomerate with an international presence, primarily engaged in mining, milling, smelting, chemical processing and Nickel Copper Cobalt PGM further downstream processing; it also engages in trading of mineral and metal products which could complement its mining operations globally • Owns world’s 3rd largest Cu-Ni sulfide deposit #3 #3 in China #4 globally #1 in Asia • Owns state-of-the-art facilities & technologies, including world’s first oxygen-enriched by production by production by production by production top-blown nickel smelter, world’s first copper-flash smelter, and Asia’s first nickel Ni cathode Cu cathode flash smelter Co production production production PGM production Key products: capacity – capacity – • Jinchuan Group offers more than 110 products across 15 categories, including capacity – capacity – 10ktpa 3.5tpa nickel / copper / cobalt series, precious metals, high-purity metals, nickel-based 150ktpa 1.1Mtpa alloys, wires and cables, mechanical products, secondary batteries and battery materials, metal powder materials and carbonyl-based products Shareholding structure Awards & credentials

Top 500 PRC enterprises in 2019 #96 4.87% 1.40% #1 Top 500 PRC manufacturing Ni & Co enterprises in 2019 #32 4.87 % producer in Top 100 PRC multinational China #51 Others 13.77% enterprises in 2019 Fortune Global 500 in 2019 #369

❑ Vision: To build a world-class top tier company with strong #3 performance of primary business, comprehensive Cu producer governance, leading technology, advanced management in China practices, outstanding results and strong ability in strategic allocation of global resources Gansu Provincial ❑ Strategy: To propel reform, enhance innovation-driven 13.53% SASAC 61.56% growth, improve quality and efficiency, and transform for upgrading 21 6. Strong fundamentals of copper and cobalt markets

Copper Supply– Global supply is gradually declining

Global copper supply Forecast Gradually declining on global copper inventory (in ton) (in million tons) 25 23 23 22 23 23 1,600,000 22 22 21 20 20 20 19 1,400,000

1,200,000 15

1,000,000 10 800,000

5 600,000

0 400,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Jan Feb Mar Apr Mat Jun Jul Aug Sep Oct Nov Dec Africa China Asia-excluding China Europe Latin America and Caribbean Middle East North America Oceania Russia and Caspian Region 2017 2018 2019 2020

Source: Wood Mackenzie Source: Galaxy Futures, Wind

◼ Due to the shrinking of fixed assets in copper mining, causing global copper production is declining year by year and inventory is constantly decreasing. ◼ Unstable effects on the global copper supply are caused by collective bargaining of multiple mines, and there is no large-scale exploration of new mineral veins currently, causing the overall copper mining and brownfield development cannot catch up with copper demand.

22 6. Strong fundamentals of copper and cobalt markets

Copper Demand - Global electric vehicle penetration rate increase

China

Global NEV sales volume and forecast On April 23, 2020, Ministry of Finance, MIIT, MOST, and NDRC in ’000 units jointly announce The Notice on Improving the Promotion and 18000 80% Application of Financial Subsidy Policies for NEV, which means the 16000 70% officially landing of subsidy policy for NEV in 2020, and marks the 14000 60% 12000 beginning of a new round of subsidy cycles. 50% 10000 40% 8000 EU 30% 6000 In April 2019, EU released Regulation (EU) 2019/631, the most stringent 20% 4000 carbon emission standard in history, and the average emissions of 2000 10% passenger cars need to be reduced to 95g/km in 2021, and to 80.75g/km 0 0% 2012 2013 2014 2015 2016 2017 2018 2019E2020E 2021E 2022E 2023E 2024E2025E in 2025. Norway, Netherlands, UK, France and Portugal set bans on the

Global NEV sales volume Growth rate sales of fuel vehicle on 2025, 2030, 2040, 2040 and 2040 respectively.

Source: Bloomberg, Orient Securities Research Institute The Development of NEV is the only option. According to Markline’s forecast, the production and sales volume of NEV in Europe will reach 4.567 million in 2025, with an annual growth Global rate of more than 40%. Germany has legislated subsidies on its domestic electric vehicle. The subsidies for pure electric vehicles priced below Global electric vehicle sales volume is expected to reach 3 million/4.2 40,000 euros have been increased from 4,000 euros to 6,000 euros. million in 2020/2021, and are expected to reach 16.0 million in 2025 with Auto companies have increased their investment, and Volkswagen has the penetration rate of 25%. increased the planning production volume to the year 2030 from 15 Source: Bloomberg, Guangfa Securities Research Institute million to 22 million. 23 6. Strong fundamentals of copper and cobalt markets

Copper Demand – The increase of global electric vehicle penetration rate and the arise of 5G boost copper demand in ’000 tons Forecast of NEVs’ demand for global copper

2000

1500

1000 ◼ Benefit from the expected growth of copper demand driven by the rapid 500 growth of NEV production, the prospect for the copper industry’s demand for

0 the next decade is quite optimistic, as the copper used in electric vehicles can 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 reach twice that of traditional cars.

Source: International Copper Association

◼ As the new era of 5G construction, the number of 5G macro cell will be 1.2 to Forecast of 5G base stations of China’s three major operators 1.5 times than 4G in 2019, and it is expected to reach its peak around 2021 to 1400 2023. There will be more than 1 million new 5G base stations every year, and 1200 the investment on base-station alone will reach RMB 200-300 billion. 1000 ◼ Copper-consuming industry related to 5G: macro cell site, small cell site, 800 urban data server room and electronic products, etc. 600 400 ◼ The copper consumption of copper clad laminate required for 5G base stations 200 in 2020 is around 20,000 tons, which is almost negligible compared with 0 China’s annual total demand of more than 10 million tons. However, the 2019 2020E 2021E 2022E 2023E demand for copper will increase significantly as 5G base stations’ increase Number of base stations (in '000… Source: Guosen Securities Research Institute of Economics each year.

24 6. Strong fundamentals of copper and cobalt markets

Copper – Global supp, supporting copper prices

A shortage of demand in global Cu Global copper price trend forecast market is predicted

100kt Cu 3.5 3 2.5 0 2 1.5 1 -100K 0.5 0 2018年 2019年 2020年 2021年 2022年 2023年 2024年

-200K

Forecast (US$/lb) 2020 2021 2022 2023 2024 -300K 2018 2019 2020 2021 2022 2023 Broker consensus 2.58 2.80 2.75 2.89 3.09

◼ The prospect of a gap between supply and demand supports current copper price ◼ Industry analysts are generally optimistic about the future increase in copper prices, especially copper concentrates that are regarded as key indicators of the ◼ Copper production is expected to increase copper mine market. Market supply and demand may be tight for at least five by 1 million tons by 2023, but under the years increase in demand, the Commodity ◼ UBS Investment Bank predicted on March 30 that copper prices will follow Research Unit (CRU Group) forecasts a China’s current H2 industrial recovery. It is predicted that copper prices will shortfall in supply and demand from 2021, rebound to US$2.35/lb in the second half of 2020 and to US$3.00/lb in 2021 and will reach 270,000 tons by 2023 ◼ Morgan Stanley and Macquarie all listed copper stocks as their preferred metal stocks

Source：CRU Group, Bloomberg Source：Bloomberg (The average of copper prices predicted by 25 investment institutions) 25 6. Strong fundamentals of copper and cobalt markets

Cobalt supply - large scale mines reduce or stop production, cobalt supply growth slows down

In 2019, the annual average price of MB cobalt decreased by 56% compared with 2018, and it dropped 71.83% to a historical low of US$12.43/lb in July, which triggered a trend of active capacity reduction and inventory reduction on the supply side of the cobalt industry. The decline in cobalt prices has led to a significant slowdown in the supply of new production capacity, especially artisanal mining, and the output of existing mines has also shrunk significantly.

Large mining Artisanal mining

The trend of active production reduction is obvious As the most flexible supply for production cuts, it is also the largest part of the reduction in 2019

In 2019, Glencore announced that it would shut down Mutanda for three During the period of 2017-2018, the price of cobalt was rising, and the output of consecutive years, which accounts for more than 18% of global cobalt DRC artisanal mining increased rapidly. Followed by the strengthening of DRC’s production. Under the background of the sharp decline in profit of TFM, a responsibility management system, the reduction of local high-grade miners’ mining subsidiary of Luoyang Molybdenum, the output of cobalt mine fell by 14.1%. resources, and after the cobalt price plummeted to low profitability, the scale of Supply-side contraction trend is obvious. artisanal mining shrunk sharply, and it may gradually withdraw from the mainstream market in the future.

◼ It is expected that the CAGR of cobalt supply may reach 7.9% from 2020 to 2025, and the supply may increase from 135,000 to 197,000 tons. ◼ The supply growth rate of cobalt maybe low in 2019-2020. With the resumption of production in the Glencore Mutanda mine in 2023, the supply growth rate is expected to reach a high point, but the growth rate will continue to decline significantly afterwards.

2018 2019 2020E 2021E 2022E 2023E 2024E 2025E

Primary cobalt 144kt 159kt 185kt 193kt 197kt production 144kt 138kt 135kt

Source：Darton, Antaike, SMM, Industrial Securities Economic and Financial Research Institute 26 6. Strong fundamentals of copper and cobalt markets Cobalt demand - Non-powered batteries currently dominate the demand, and lithium batteries will have a large growth potential in the future

Cobalt application Cobalt demand distribution

• Metallic cobalt and cobalt power has predominantly been used in the fields of • In 2019, the demand for cobalt was mainly distributed in the battery field, most of which was concentrated in the non-power battery sector. superalloys, hard metals, catalysts, magnets, etc. The relative growth rate tends to • In 2019, the lithium battery sector accounts for 53% of global cobalt demand, be stable. with the remaining superalloys (17%), hard metals (7%), hard-surface materials • Cobaltous sulfate is mainly used in the field of power lithium batteries (4%), ceramics (5%), catalysts (5%) , magnetic materials (3%), tires/drier (3%) • Cobaltosic oxide mainly used in the field of 3C consumer electronics and other fields (3%), etc. In terms of segmentation, the lithium battery segment is divided into power lithium batteries in the field of NEV (26%) and non-power batteries in the field of 3C consumer electronics (74%). Currently, non-power batteries are still the leading demand.

Current world cobalt terminal demand distribution overview forecast: non-power batteries and power batteries have large growth space

Tires/drier 3% Other 3% Magnetic materials 3% Overseas Domestic Catalysts 5% new new energy energy Ceramics 5% vehicles vehicles Power 49% 51% Hard-surface batteries materials 4% 26% Hard metals Batteries 53% 7% Non-powered batteries 74% Notebook Mobile 20% Superalloys Phone Tablet 17% 53% 11% Other 11% Lithium battery energy storage 3% 27 Source：Industrial Securities Economic and Financial Research Institute 6. Strong fundamentals of copper and cobalt markets

Cobalt Demand – The demand CAGR in the field of power battery is expected to reach 23.2% (2019-2025)

Even though short-term global pandemic have caused short-term pressure on overseas NEV sales, the carbon emission standards in Europe have not changed, and there is no change in oversea timetable for accelerating the withdrawal of fuel vehicles. Under the background that leading auto companies such as Volkswagen and Tesla still maintain rapid expansion, it is expected that the CAGR of global NEV will reach 35% from 2019 to 2025, and the sales of NEV will reach 13.63 million units in 2025. Comprehensively considering the sales volume of NEV, the amount of charge of NEV, the proportion of various types of cathode materials, and the different demand for cobalt per unit charge of different cathode materials, even if the future of ternary cathode materials develops towards high nickelization, the demand for cobalt per GWH and the amount of cobalt for NEV will decline, with the increase in sales of NEV and the increase in the amount of electricity per vehicle, the overall power battery field uses cobalt volume will still maintain rapid growth. It is expected that with the advancement of high-nickel ternary materials and the emergence of super LFP, the amount of cobalt used in a NEV will decline from 7.91kg/unit in 2019 to 4.66kg/unit in 2025, with an average annual CAGR decline 8.4%; even under this pessimistic assumption, the global demand for cobalt in the power battery field will continue to rise sharply from 18.2kt in 2019 to 63.5kt in 2025, with an average

annual CAGR of 23.2%. Cobalt will be an indispensable metal variety.

The amount of cobalt used in a NEV (2019-2025) Measuring amount of cobalt in global power battery (10kt)

9 40.00% 25 7.91 7.79 8 30.00% 6.97 6.76 6.35 7 6.51 20 5.91 6.12 29.10% 5.79 20.00% 6 4.96 5 4.66 10.00% 15 3.88 3.06 4 0.00% 10 2.42 3 -1.50% 1.82 -3.10% -3.60% -10.00% 1.34 2 -10.50% -11.10% 5 -20.00% 1 -19.50% 0 -30.00% 0 2018A 2019A 2020E 2021E 2022E 2023E 2024E 2025E 2018A 2019A 2020E 2021E 2022E 2023E 2024E 2025E

Amount of cobalt used in a NEV (kg) YoY(%，right) NCM811/NCA NCM622 NCM523 NCM333

Source：Industrial Securities Economic and Financial Research Institute 28 6. Strong fundamentals of copper and cobalt markets

Cobalt Demand - Non-power battery part, estimated the demand CAGR to reach 9% (2019-2025)

From the perspective of non-power battery terminal demand applications ：mobile phone, computer, tablet, new 3C electronic products and lithium battery energy storage have a greater impact on the demand for cobalt, especially mobile phone. With the gradual introduction of 5G networks, the penetration rate of Based on the expected shipments of different non-power batteries, the unit charge, the proportional relationship of the cathode materials selected by 5G mobile phones is expected to in 2020 or in reach 15% 90% different products, and the demand for cobalt of different cathode materials 2025. Based on the estimation of future shipments and the amount of are comprehensively considered. It is estimated that the demand for cobalt in electricity charged by different mobile phones, it is expected that the the non-power battery field will increase significantly from 51.9kt to amount of cobalt used in a mobile phone will be increased from 14.3g 87.1kt between 2019-2025, with CAGR of 9%. Among themm, the to 20.7g in 2019-2025, with CAGR of 6.4%. installed capacity of lithium battery energy storage may usher in high-speed growth, expected that CAGR of demand for cobalt will reach 24.5% from 1.5kt to 5.5kt.

Amount of Cobalt Used in a Mobile Phone Amount of Cobalt Used in Non-power battery (10kt) 25 10.00% 10 20.7 9.00% 19.6 18.6 20 17.8 8.00% 16.8 15.5 7.00% 14.3 15 13.5 6.00% 5.00% 5 10 4.00% 3.00% 5 2.00% 1.00% 0 0.00% 0 2018 2019 2020E 2021E 2022E 2023E 2024E 2025E 2018A 2019A 2020E 2021E 2022E 2023E 2024E 2025E

Amount of cobalt used in a mobile phone (g) Growth rate（%） Tablet Laptop Mobile Phone Full set TWS and e-cigarette Lithium battery energy storage Others

Source：Industrial Securities Economic and Financial Research Institute 29 6. Strong fundamentals of copper and cobalt markets

Cobalt Demand - Estimated cobalt demand CAGR to reach 9% (2019-2025 )

Estimated the global demand for cobalt will increase from 134.4kt to 225.1kt in 2019-2025, the increase in demand of 90.7kt, the average annual CAGR on the demand may reach 9%. The lithium battery sector accounts for 89% of the total increase in demand which is the core growth point. Category 2018A 2019A 2020E 2021E 2022E 2023E 2024E 2025E 20-25 CAGR Power Battery 13380 18161 24151 30552 38809 49649 59132 63484 21.3% Non-power Battery 50976 51947 56449 62842 69478 74412 80639 87121 9.1% Subtotal of Lithium 64356 70107 80600 93394 108287 124061 139771 150605 13.3% Battery Demand Superalloy 21570 22988 23908 24864 25859 26893 27969 29087 4.0% Hard Alloy 10066 9950 9900 9851 9802 9753 9704 9655 -0.5% Hard Materials 4314 4804 5092 5397 5721 6064 6428 6814 6.0% Ceramics 7190 7034 6893 6755 6620 6488 6358 6231 -2.0% Catalyst 7190 7377 7568 7765 7967 8174 8386 8604 2.6% Magnetic Materials 4314 3774 3472 3194 2939 2704 2487 2288 -8.0% Tire/Driers 4314 4632 4817 5010 5210 5419 5635 5861 4.0% Others 2876 3774 4076 4402 4754 5135 5546 5989 8.0% Total 126190 134440 146327 160633 177159 194690 212285 225135 9.0% Under the influence of the epidemic, cobalt may still be slightly surplus in 2020, and will be a Under the influence of no epidemic, there is a high probability that the cobalt industry will shortage again in 2021 have a gap between supply and demand in 2020 1. Glencore’s Mutanda gradually resume 27680 Fully considering the impact of global 27680 250000 public health event on the demand for 30000 250000 production 30000 power battery and non-power battery 2. The project of Indonesia nickel cobalt in 2020-2021, there is still a surplus in 25000 demand supply gap platinum method gradually increase 25000 200000 2020 but a shortage in 2021. 20000 200000 without global public 20000 14030 14030 health event 15000 15000 150000 150000 10000 10000 2659 1471 5000 1471 5000 100000 100000 0 0 50000 -5000 50000 -705 -5000 -3660 -7223 -6121 -10000 -6138 -7223 -6121 -10000 0 -11977 -15000 0 -11977 -15000 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E

Demand-supply Gap(+surplus/-shortage, t, Right axis) Demand-supply Gap(+surplus/-shortage, t, Right axis) Supply(t) Supply(t) Demand(t) Demand(t)

Source：Industrial Securities Economic and Financial Research Institute 30

Financial Performance

Copper production(ton) Cobalt production(ton)

73,057 5,070 61,624 4,638 4,752 4,344 54,060 3,885 47,782 42,587 42,512 3,391

2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019

Copper price & revenue of copper sales from mining operations Cobalt price & revenue of cobalt sales from mining operations

(USDm) Revenue from copper sales (USD/t) (USDm) Revenue from cobalt sales (USD/t) sale price of copper sale price of cobalt 600 8,000 600 80,000 6,831 69,961 6,196 70,000 5,779 450 5,324 5,130 6,000 450 60,000 4,764 50,000 39,817 300 4,000 300 40,000

20,414 30,000 365 370 388 17,508 17,770 16,116 150 2,000 150 20,000 258 263 205 236 186 10,000 79 76 58 78 0 0 0 0 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019

32 Financial Performance

EBITDA & margin Net profit attributable to shareholders

(USDm) EBITDA Margin（EBITDA/sales） (%) (USDm) 300 250 25

19 160 200 20 67 9 42 9 15 20 150 15 10 9 (120) (231) 100 214 10 (292)

4 50 102 116 5 (260) 66 1 6 14 0 0 (400) 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019

Gearing ratio(%) Copper C1 cash cost (post Co by-product credit) (USD/t)

55.1 4,813 4,627 47.8 45.4 3,984

3,068 34.9 33 3,008

22.4 1,598

2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 33

Strategic Positioning

Jinchuan International will take advantage of Jinchuan Group’s technology and management, to build a Jinchuan’s overseas resource development flagship platform.

Strategic Targets

Resource Target: Focus on major metal nickel, copper, and cobalt, and acquire resources on a global scale. The medium- term goal is to achieve 10 million tons of copper resources, 1 million tons of nickel resources and 400,000 tons of cobalt Strategic Initiatives and Measures resources. The long-term goal is to achieve 20 million tons of copper resources, 2 million tons of nickel resources and ▪ Further optimize shareholder structure and enhance market 500,000 tons of cobalt resources. vitality

Business objectives: The medium-term goal is to achieve ▪ Internal asset restructuring and rapid expansion of company size nickel production of 30,000 tons/year, copper production of ▪ Strengthen management and enhance the economic benefits of 100,000 tons per year, and cobalt of 10,000 tons per year. existing projects

The long-term goal is to achieve 60,000 tons of nickel per ▪ Grow trading business year, 200,000 tons of copper per year, and 12,000 tons of ▪ Establish an industrial investment fund cobalt per year. 35

Disclaimer

Statements in this presentation, other than historical facts, that address exploration activities and mining potential are “forward-looking” statements and are not statements of fact. These statements are generally identified by words such as “believes,” “expects,” “predicts,” “intends,” “projects,” “plans,” “estimates,” “aims,” “foresees,” “anticipates,” “targets,” and similar expressions. The forward-looking statements, including but not limited to assumptions, opinions and views of Jinchuan Group International Resources Co. Ltd (“the Company”) or information from third party sources, contained in the presentation are based on current plans, estimates, assumptions and projections and involve uncertainties and risks. The directors and management of the Company are of the belief that the expectations expressed in such forward-looking statements are based on reasonable assumptions, expectations, estimates and projections. However, such statements should not be construed as being guarantees or warranties (whether express or implied) of future performance. 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. Factors that could cause developments to differ materially from those statements expressed in this presentation include, without limitation, the results of further exploration activities, technical analysis, general economic and business conditions, industry trends, competition, changes in government regulations, interest rate fluctuations, currency fluctuations, changes in business strategy or development plans and other risks. Neither the Company, its directors, its management, its advisors nor any of their affiliates represent or guarantee that the assumptions underlying such forward- looking statements are free from errors nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation. No obligation is assumed to update any forward-looking statements. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the information presented. None of the Company, its advisors or any of their respective affiliates, directors, officers, employees and advisors nor any other person shall have any liability whatsoever for any losses arising, directly or indirectly, from any information contained in the presentation. This presentation and information made available does not constitute an offer or invitation to purchase or subscribe for any shares of the Company, and no part of this presentation shall form the basis of, or be relied upon in connection, with any contract or commitment. By accepting this presentation you acknowledge that you will be solely responsible for your own assessment of the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.

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