ThankyouFor additional information contact:Grant Davey Managing DirectorE: admin@cradleresources.com.auT +61 8 9389 2000

Panda Hill Niobium Project

Cradle Definitive Feasibility Study – Panda Hill

Investor Update April 2016

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Panda Hill Overview

Cradle owns 50% of the Panda Hill Project

Single Open Pit Operation

Mining 72Mt at 0.54% Nb over 30 years

Producing 1.3Mtpa ramping up to 2.6Mtpa after 4th year of production

Mining Licence and Environmental Licences are in place

Panda Hill is located in Mbeya region in South Western Tanzania

• 680km west of capital Dar es Salaam

• Tanzania has a well-established mining industry and culture

• Panda Hill deposit is covered by three Mining Licenses

• Title of these licenses extended to 16 Nov 2026

Excellent local infrastructure

• TAZARA Rail line (2km away)

• Dar es Salaam – Tunduma Highway (5km away)

• Songwe Airport (8km away)

• Major power infrastructure in Mbeya (26km away)

• 26km from industrial city Mbeya

Panda Hill Overview

Panda Hill Project

Panda Hill Niobium Deposit

Panda Hill Proximity to Infrastructure

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Panda Hill will be the worlds next Niobium mine due to robust economics

DFS Overview• NPV8 US$542M (post tax)

• LOM average EBITDA of US$112Mpa

• 4.75 year pay back

• Initial capital expenditure of US$196M (expansion US$93m in year 4 to increase capacity from 1.3Mtpa to 2.6Mtpa)

• LOM of 30+ years

• LOM Average Niobium price of US$41.89/kg

DFS results demonstrated• NPV8 US$542M (post tax)

• NPV10 US$404M (post tax)

• IRR 27% (post tax)

• LOM C1 US$18.30/kg

• LOM Total Opex US$21.34/kg

Panda Hill Overview

Panda Hill Project DFS Results

Panda Hill Operations

Panda Hill 2015 ResourceReported Above a 0.3% Nb2O5 Lower Cut-off

Combined Carbonatite

Classification Million Tonnes Nb2O5 % Nb2O5 Content (KT)

Measured 16 0.63 9Indicated 53 0.50 263Inferred 109 0.48 528

Total 178 0.50 891

Panda Hill Resource

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US$

M

Low Capex, strong margin & long life generates compelling economics and returns with significant leverage to positive niobium outlook

Panda Hill Overview

Compelling Economics

Project Free Cashflow

Niobium Price (US/kg Nb) 38 40 42 44 46

Ungeared NPV10 (post-tax) 282 343 404 465 526

Project IRR (post-tax) 23% 25% 27% 30% 32%

NPV & IRR Sensitivity to LT Niobium Price (Management Case)

Running NPV10 (100% basis ungeared)

Peak NPV10~US$898m

Assumed Case

(3,000)

(2,000)

(1,000)

-

1,000

2,000

3,000

(150)

(100)

(50)

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50

100

150

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046

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048

Cu

mu

lati

ver

Cas

hfl

ow

(U

S$M

)

Cas

hfl

ow

(U

S$M

)

Cashflow

Cumulative Cashflow

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$122,533

$96,667

$37,615

Elk Creep (NioCorp) Aley (Taseko) Panda Hill (Cradle)

Low capital costs due to favourable metallurgy & existing infrastructure, making Panda Hill extremely capital efficient vs. other undeveloped niobium deposits

Panda Hill Overview

Panda Hill Project Capital Cost

Capital Intensity vs. Other Undeveloped Deposits (US$/t annual Nb Production)

Capital Costs Summary

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1. Production based on average LOM

Item US$m %

Summary

Project Capital Costs 165.2 84%

Pre Production 30.5 16%

Total 195.6 100%

Project Capital Costs

Mining 3.1 2%

Plant 75.4 46%

Infrastructure 7.8 5%

TSF & Water 42.5 26%

In-directs 4.2 3%

Management Costs 14.3 9%

Subtotal 147.3 90%

Project Contingency 17.8 10%

Project Escalation 0.0 0%

Total 165.2 100%

Pre-Production

First Fills 2.7 9%

Spares 1.9 6%

Owners 4.7 15%

Pre Production 15.0 50%

Prison Relocation 6.2 20%

Total 30.5 100%

1. Figures have been rounded2. Peak Working Capital is estimated at US$8.7M

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DFS Demonstrates a Highly Economic Project

Initial 10 years mining predominantly in the higher grade Angel Zone of exclusively Measured and Indicated Resources

Key production figures for first 10 years:

• Average grade: 0.68% Nb2O5

• Average recovery: 61%

• Strip ratio: 2.5 to 1

Key production figures for Life Of Mine:

• Average grade: 0.54% Nb2O5

• Average recovery: 61%

• Strip ratio: 1.5 to 1

Mining Study:

• SRK performed the pit optimisation using Whittle based on the following parameters

• LOM Average Niobium price of US$44/kg

• Processing cost US$22.5 to US$23.3/tonne (depending on material type)

• Processing recoveries of 55% to 68% (depending on material type)

• Average LOM mining cost

• $11.35/t ore ($4.42/t TMM)

• Pit wall angles of bench-stack pit slope angles of 46° and 49° for weathered domains and 55° for fresh material domains

• 30 year mine life

Panda Hill Overview

Panda Hill Project DFS Parameters

Panda Hill Ore Body

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$22.00/kg

$15.00/kg$18.30/kg

$21.96/kg

0

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Niobec(Magris)

Catalão(AngloAmerican)

Panda Hill LOM(Cradle)

Panda Hill Yrs 1-4(1.3Mtpa)(Cradle)

Operating costs are predominately mining & processing and provide a robust margin relative to long term niobium price

Panda Hill Overview

Robust Operating Costs

Mine Site Cash Costs

Assumed Long term Niobium PriceUS$42/kg Nb

US$/kg Nb

Average Niobium Price over Last 5 YearsUS$41/kg Nb

It is widely accepted in the industry that CBMMis the lowest cost producer given its enhanced

scale & grade, although does not publicly release any financial information

LOM Production Cost Breakdown US$/kg Nb

$5.01/kg

$11.62/kg

$1.67/kg

$18.30/kg

$3.03/kg

$21.34/kg

0.00

5.00

10.00

15.00

20.00

25.00

Mining Processing General &Admin

Mine SiteCash Cost

Transport,Marketing &

Royalties

Total CashCost

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Design based on successful existing operational Niobium processing facilities

• The flotation process is similar to Niobec

• The concentrate leach is similar to Catalao

• Final step in the conversion process is similar to CBMM

Process Plant Design and Flowsheet

• Based on extensive testwork undertaken at SGS Canada, including 3 piloting campaigns

• Expandable plant designed ramping up from 1.3Mtpa to 2.6Mtpa after 4th year of production

Panda Hill Overview

Processing Development

Panda Hill Flow Sheet

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Significant Resource Upside

• Total Carbonatite Mineral Resource of 178Mt at 0.50% Niobium

• Only ~40% of the area of the carbonatite has been properly drill-tested

• Mineralisation open in all directions

• Exploration upside potential for remaining untested 60% of carbonatite

contained with 22.1km2 of mining licenses

• Represents long asset life in a growing market positioning Panda Hill to

become a long term producer of Niobium

Panda Hill Overview

Geology

Carbonatite Boundary

Carbonatite Boundary

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37 37.2

41.142.9 42.8

41.1 40.8

2009 2010 2011 2012 2013 2014 2015

Niobium has a history of stable prices given increasing underlying demand and supply responsibility

Niobium Overview

Stable Pricing

Niobium Price History (Average annual value of ferroniobium imports, US$/kg)

Between 2006 and 2008 there was a significant increase in prices, instigated by CBMM to address the structural under-valuing of ferroniobium. The market accepted the increase and stability has been retained at the higher level.

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Demand has steadily increased since 2000 and is forecast to grow at ~3.0% p.a.

Niobium Overview

Global Demand for Niobium

Global Ferroniobium Demand Forecast (kt FeNb)

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

2012 2013 2014 2015 2016 2017 2018 2019 2020

Base Demand Demand Growth (Expected Steel Growth) Demand Growth (Normal Nb Intensity increase) Demand Growth (Increased China Nb Intensity to 60g/t)

4.1%

3.0%

1.5%

CAGRThe amount of Nb used per tonne of steel (Niobium Intensity) has been steadily

increasing as Nb steel represents the high quality, new-age end of the steel market.

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Next Steps

Finalise offtake agreements

Secure debt financing

Value engineering to look at cost reduction opportunities

Front end engineering and design on critical items to reduce the construction period

Construction permitting processes

Procurement of some long lead items

Early site establishment from the main site based contractor

Formal decision to Mine Q4 CY2016

Project Development

Where to from here?