PETER KUKIELSKI: “FULL SUPPORT OF THE OFFER FROM ZIJIN MINING COMPANY” QUARTERLY PAGE 5 NEWSLETTER JULY - SEPTEMBER 2018 REPRESENTATIVES OF ZIJIN, NEVSUN AND RAKITA MEET WITH PRESIDENT ALEKSANDAR VUČIĆ WE PRESENT: Chris Lupaschuk PAGE 16 REPAIRING OF REGIONAL ROADS PAGE 20 IN SLATINA 586WITHOUT A WORKPLACE INJURY - SAFETY AT THE HIGHEST LEVEL - JOINT ACTIVITIES TO RESOLVE STRAY DOG PAGE 21 PAGE 13 OVERPOPULATION IN BOR EMERGENCY RESPONSE STUDENT EDUCATION ACTIVITY: TRAFFIC SAFETY SIMULATION 14 LIVELIHOOD IMPROVEMENT MECHANISMS FOR LAND OWNERS RAKITA – RESPONSIBLE PARTNER IN THE COMMUNITY: NEW SOFTWARE FOR GREATER RETROACTIVE PAYMENT ANNEXES FINALIZED WORKPLACE SAFETY AND PROTECTION 15 EXPLORATION DECLINE ACTIVITY UPDATE CONTENTS INFORMATION ABOUT THE COMPANY AND MANAGEMENT ACTIVITIES Ÿ Zijin Mining Company: Friendly takeover of Nevsun Resources 4 Ÿ Peter Kukielski: “Full support of the offer from Zijin Mining Company” 5 Ÿ Representatives of Zijin, Nevsun and Rakita meet with President Aleksandar Vučić 6 FIELD INFORMATION Ÿ Four-month overview of the construction of the exploration decline 8 Ÿ Continued exploration drilling program of the Čukaru Peki Upper Zone 12 SAFETY AND PROTECTION Ÿ days without a workplace injury – safety at the highest level 13 Ÿ Emergency response simulation 14 Ÿ New software for greater workplace safety and protection 15 HUMAN RESOURCES Ÿ We present – Chris Lupaschuk, Senior Land Acquisition Manager 16 COMMUNITY OUTREACH Ÿ Strengthening relationships with local communities 18 Ÿ A word from local community leader: Milovan Matović, President of the Parents' Association “Bebironče” 19 COMMUNITY CONTRIBUTIONS Ÿ Repairing of regional roads in Slatina damaged by floodwaters and machinery 20 Ÿ Joint activities to resolve stray dog overpopulation 21 Ÿ Supporting the “15th International Youth Work Exploration Environmental Camp” 22 Ÿ “Millennials Writing - The Role of Youth in the Development of Mining in Bor” 23 Ÿ Ethnic food masters from five countries visit Brestovac 24 Ÿ Lecture for beekeepers in Slatina 25 Ÿ Support for the “26th Dance Festival in Slatina” 26 Ÿ Student education activity regarding “Traffic Safety” 27 LAND ACQUISITION Ÿ Responsible partner in the community: retroactive payment annexes finalized 28 Ÿ Livelihood Improvement Mechanisms For Land Owners 29 ENVIRONMENTAL PRESERVATION AND PROTECTION Ÿ Exploration decline construction update 30 PHOTO GALLERY 31 ZIJIN MINING OFFERS TO TAKE OVER THE SHARES OF NEVSUN RESOURCES FOR US $1.41BILLION The Board of Directors of Nevsun (the parent company of Rakita Exploration) unanimously recommended to its shareholders to accept the offer by Zijin. The CTIVITIES offer needs to be approved by Canadian and Chinese authorities and involves the purchase of at least 66% ( i.e. two thirds) of Nevsun's total shares in circulation. GEMENT A 05 September 2018 – Vancouver, Canada / “Zijin is a proven mining company with a market Fujian, China – The companies Nevsun and Zijin capitalization of USD 10 billion and successful have made an agreement whereby Zijin offered international transactions. The Board unanimo- to take over all Nevsun shares in circulation for a usly recommends that the shareholders of cash sum of six Canadian dollars per share. The Nevsun offer their shares and accept this offer so ANY AND MANA offer is worth USD 1.41 billion. as to obtain the significant value it represents”, The details of the bid were presented in a said Pearce. takeover memo submitted by Zijin to the share- Chen Jinghe, President of Zijin, added: “Nevsun holders of Nevsun, leaving them an initial pe- is an exceptional mining company with a firm riod of 105 days to decide on the sale of shares. focus on safe, efficient and sustainable mining The offer is subject to approval in accordance practices. As its new owners, we will retain this with the Investment Canada Act, and the focus and look forward to working with stake- Competition Act of Canada, the approval of holders in Serbia and Eritrea and improving these competent bodies in China, and the usual clo- mining and development resources. In Serbia, on TION ABOUT THE COMP sing conditions. The final agreement also pro- the Čukaru Peki project, we intend to quickly vides for Zijin to respond to any competitive develop the upper zone and start production, offer, if there is one. along with continued improvement and defini- INFORMA “This premium transaction represents an exce- tion of the first-class potential of the lower zone.” llent outcome for our shareholders, and it is the result of a rigorous and competitive global pro- cess aiming to maximize value for the total sha- res in circulation for Nevsun”, said Ian Pearce, Chairman of the Board of Directors of Nevsun, adding: “The cash offer of six Canadian dollars per share better reflects the basic value of the mining and development resources of Nevsun, while at the same time providing our share- holders appropriate changes to the control premium”. 4 “I would like to use this occasion to assure all members of our hard-working Rakita team that we do not expect the envisaged friendly offer by Zijin to take over Nevsun to have a significant im- PETER KUKIELSKI: pact on our business operations in Serbia. Our Board of Directors supports the offer by Zijin “FULL SUPPORT Mining Company to purchase Nevsun shares at a “ price of six Canadian dollars per share. The Board OF THE OFFER FROM believes this price correctly reflects the value of Nevsun's property regarding mining and deve- ZIJIN MINING lopment potential, unlike the earlier offer pre- sented by Lundin Mining Company with a price of 4.75 Canadian dollars per share, rejected by our Board believing it does not reflect the true value of the company. The offer by Zijin is yet to be accepted by two thirds of our shareholders and approved by com- petent institutions in Canada and China. This pro- cedure allows the possibility that another buyer, or Lundin Mining Company, will offer a higher price. On our side, we have implemented a thoro- CTIVITIES ugh process of identifying potential buyers on the global market, and among all buyers, Zijin has shown the greatest interest. GEMENT A Zijin has a strong portfolio of gold and heavy me- tals mines worldwide. It is the third largest com- pany listed on global stock exchanges trading in gold ore, with an exceptionally capable manage- ment and an excellent track record in inter- national transactions. Zijin wishes to become the leading international company in the mining ANY AND MANA sector, and thus expresses its dedication to the goal of standing shoulder to shoulder with the COMP largest global companies in regards to com- pliance with best practices in sustainable deve- lopment. The purchase of Nevsun would repre- sent the largest transaction to date for this com- pany, and thus we are certain that the successful implementation of the transitional process will be a priority. I am certain that the Zijin team has the expertise and resources to successfully con- tinue the development of all Nevsun projects”. Sincerely yours, Peter Kukielski President & Chief Executive Officer Nevsun Resources Ltd. 5 REPRESENTATIVES OF THE ZIJIN, NEVSUN AND RAKITA MEET WITH PRESIDENT CTIVITIES ALEKSANDAR VUČIĆ GEMENT A The President of Serbia, Aleksandar Vučić, held a meeting with representatives of Zijin, Nevsun and Rakita, to review all aspects of potential investments in the mining sector in eastern Serbia. The initial basis for these investments is the signed strategic partnership agreement with the Mining- ANY AND MANA Smelting Basin Bor (RTB Bor). The res-ponse of Nevsun shareholders to the offer of the Zijin Corpo-ration is expected during the forthcoming period. Representatives of Zijin have informed Pre- On the other hand, representatives of sident Vučić on their capability, noting that Nevsun relayed to President Vučić the Zijin has a strong portfolio in gold ore and views of their Board of Directors of this heavy metals worldwide. Zijin is the third lar- company, unanimously recommending gest company listed on global stock exchanges TION ABOUT THE COMP thatshareholders accept the current offer trading in gold ore, with an exceptionally capable management and an excellent track by Zijin. At this time Rakita is continuing the record in international transactions. It was par- implementation of activities on the Čukaru ticularly noted that Zijin wishes to become the Peki project in accordance with current INFORMA leading international company in the mining plans and in accordance with the agreed- sector, and thus expresses its dedication to the upon schedule. goal of standing shoulder to shoulder with the largest global companies in regards to com- Nevsun representatives noted that Čukaru pliance with best practices in sustainable deve- Peki is one of the largest greenfield invest- lopment. The purchase of Nevsun would repre- ments in Serbia, representing a significant sent the largest transaction to date for the Chi- economic boost for the local and national nese company, and thus the successful imple- economy. The planned capital investment mentation of the transitional process will re- by Nevsun in the Čukaru Peki project from present a priority for Zijin. The representatives 2018 to 2022 is USD 590 million, with the of the company explained to President Vučić expected employment of 600 workers that the Zijin team has the expertise and within Rakita and an additional 300 to be resources to successfully continue the develop- ment of all Nevsun projects. hired by contractors on the project. 6 CTIVITIES GEMENT A ANY AND MANA COMP It was emphasized that Serbia and the City of The meeting with President Vučić and Minister Bor will benefit directly from the Čukaru Peki of Mining and Energy Aleksandar Antić was project to an amount of approximately USD attended by Chen Jinghe (Zijin), Peter Kukielski 450 million through taxes and ore rent. It is par- (Nevsun), Jerzy Orzechowski (Rakita) and ticularly important that the work schedule on Predrag Lukić (Rakita).