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www.shantagold.com
New Luika Gold Mine – Analysts Visit
5-6 December 2017
NLGM Analysts Visit
Mission
“To produce superior returns as a responsible mining company”
06/12/2017 NLGM Analysts Visit - 05th December
Vision
“To be a respected mining company that makes a meaningful difference”
➢Protects its people, environment and community from harm
➢Seeks to continually improve
➢Creates opportunities for growth
Values
Shanta has at its heart a set of beliefs that define our behaviour, as Individuals and as a company, at work and beyond:
➢ Safety and Health and protection of the Environment are our first priority
➢ Integrity – in all that we do, we are honest, ethical, law-abiding and transparent
➢ Respect – we are respectful towards one another and we acknowledge and value our diversity
➢ Accountability – we are accountable for our performance and for upholding the policies and values of the Company
➢ Add value to the community – we provide enduring benefits in health, education, training, infrastructure and economic opportunity
06/12/2017 NLGM Analysts Visit - 05th December
SMCL Board of Directors is majority Tanzanian
406/12/2017 NLGM Analysts Visit - 05th December
Eric ZurrinCEO
Luke LeslieCFO (Interim)
Scott YellandCOO
Philbert RweyemamuGM Singida
Honest MremaGM New Luika
W. Romani UrasaChairman SMCL
Mahesh PatelNon-Executive Director
► Senior Tanzanian representation in key roles
► Recent changes for senior management include an average 15% salary reduction and discretionary remuneration now 100% share-based
Stella Malimi NyawawaCompany Secretary SMCL (non director)
► Since starting official gold production in 2013, Shanta has made payments to the Tanzanian government totalling US$67 million1 and employed an increasing number of talented Tanzanians
Longstanding commitment to Tanzania including US$67 million of contribution to the Government
Payments to government1 (US$m) Tanzanian employee base (%)
91
92
93
9696
2013 2014 2015 2016 Current
9
13
12
15
18
2013 2014 2015 2016 2017 ²
1. Includes employment taxes, statutory contributions, service levies, taxes, royalties. Excludes VAT receivable
2. H1 actual and H2 management estimate
06/12/2017 NLGM Analysts Visit - 05th December
606/12/2017 NLGM Analysts Visit - 05th December
Shanta has not enjoyed an MDA (Mine Development Agreement)
No Mine Development Agreement (MDA)
▪ Shanta has never enjoyed preferential taxes given under MDA’s
▪ Shanta has always paid full royalties, duties and levies
▪ Shanta has operated according to the Mining Law and Tanzanian laws
► Shanta does not have a Mine Development Agreement (MDA)
► Shanta has never enjoyed any preferential treatment in Tanzania
Significant investment into Tanzania
▪ Shanta has invested over US$150 million since inception
▪ Long track record of investing in local communities and villages
▪ US$24 million invested in Singida at Ikungi District
3.64
8.2 7.91
6.145.53 5.26
6.166.85
6.125.52
5.01 4.6
23.57
9.83
6.1
4.463.52
2.94 2.63 2.98 2.75
0
5
10
15
20
25
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cummulative TIFR 2016 vs 2017
2016 2017
Safety - Total Injury Frequency Rate
Last lost time injury in January ,
over 258 days and 1.74M man -
hours worked injury free
706/12/2017 NLGM Analysts Visit - 05th December
Shanta in Tanzania
Songwe
District
Lupa
Goldfield
New Luika
Gold Mine
Singida Project
• Producing gold at
the New Luika
Gold Mine
• Developing Gold
Project at Singida
806/12/2017 NLGM Analysts Visit - 05th December
NLGM Operations and Current LOM Reserves (31.12.2016)
906/12/2017 NLGM Analysts Visit - 05th December
Significant Milestones in 2016
June 2016 ▪ Completion of the Luika Open Pit over
12.4Mt mined for 85koz
June 2016▪ Commencement of the New Luika
Underground Development
July 2016▪ Commencement of the new
satellite Illunga Open Pit
Sept 2016▪ Completion of the Bauhinia Creek Open
Pit over 25Mt mined at an average grade
of 8.4g/t for 283koz
1006/12/2017 NLGM Analysts Visit - 05th December
Dec 2016▪ First underground development
ore produced
July ▪ Completion of the Ilunga Open Pit
over 3.8Mt mined
May ▪ First underground stope ore
produced
Underground schedule and milestones
Year 2016 2018 2019 2020 2021 2022
Portal construction
Surface construction
Ramp development
Ventilation and Emergency Egress shafts
Access BC orebody
Access Luika orebody
BC production
Luika production
Underground exploration drilling
Mid December 2016 , Access High Grade ore
July
BC Pit – 960mRL Complete
Four 3mø raise bored raises (350m)
06/12/2017 NLGM Analysts Visit - 05th December
100% Complete
Ramping up to 30,000 tpm
Ramping up to 15,000 tpm
Testing down dip extensions at BC East
BC and Luika
06/12/2017 NLGM Analysts Visit - 05th December
NLGM Production Dash Board – End of September 2017
06/12/2017 NLGM Analysts Visit - 05th December
Processing Plant Flow Chart
GVC 27/11/2017
Mill No 2
Capacity : 37.5 Dtph
25,000 Dtpm
Mill No 1
Capacity : 37.5 Dtph
25,000 Dtpm
Sandvik Crushing Plant
Capacity : 150 Dtph
150,000 Dtpm
Crushed Ore Stockpile
2,000 DtJaw
Crusher
Primary
Cone Crusher
Secondary
Cone
Crusher
Sizing Screen
Mill Feed -9 mm
Tailings Storage Facility 1
Pre-Leach Tanks
10 Hours
Residence Time
Cyanide and
Lime Addition
Loaded Carbon Harvesting
Carbon in Leach
16 Hours Residence Time
Acid
Treatment
Vessel
Elution Column
2t Capacity
Stripping:12-13 hrs
125˚C
Elution Boiler
Gold Sludge Filter Press
Smelting
Furnace
Borax,Soda Ash and Silica
1,215˚C
Doré Bars to Refinery
35% Au
64% Ag
Electrowinning Cells
Carbon Regeneration Kiln
Regenerated Carbon return to Circuit
Drying Oven
Loaded Carbon Tank
Emergency Stockpile
TSF return water
Luika River
Weir Hydrex TankProcess Water Tank Process Water Tank
Strip Solution TankCaustic Soda
Cyanide
Detoxification
Ferrous
New Luika River Dam
:+300,000m3
storage
Smooth Transition to Underground Mining
Mined Out Development
Mined Out Stopes
Future Development
Luika UG Bauhinia Creek UG
Luika Open Pit Bauhinia Creek Open Pit
Return Airways and
Emergency Egress
1000mRL
690mRL
810mRL
Both ore bodies open at depth
06/12/2017 NLGM Analysts Visit - 05th December
Bauhinia Creek : Underground Long Section
06/12/2017 NLGM Analysts Visit - 05th December
Bauhinia Creek Long Section – Reserve/Resource Distribution
1606/12/2017 NLGM Analysts Visit - 05th December
06/12/2017 NLGM Analysts Visit - 05th December
Luika: Underground Long Section
Luika Long Section: Reserve/Resource Distribution
1806/12/2017 NLGM Analysts Visit - 05th December
Illunga Underground
1906/12/2017 NLGM Analysts Visit - 05th December
Ilunga Underground Mine
Main Ramp
Ventilation Raise
Proposed Portal location
Diamond Drilling Stations
Colour Grade
0 - 4
4 - 6
> 6
Ilunga Long Section: Reserve/Resource Distribution
2006/12/2017 NLGM Analysts Visit - 05th December
06/12/2017 NLGM Analysts Visit - 05th December
Investing for the future
New Luika Reservoir : +150,000m3 storage
New Luika River Dam : +300,000m3 storage
06/12/2017 NLGM Analysts Visit - 05th December
Investing for the future
New Luika TSF2 Phase1 – 4.0Mt
06/12/2017 NLGM Analysts Visit - 05th December
Investing for the future
06/12/2017 NLGM Analysts Visit - 05th December
Investing for the future
NLGM Underground – The Future
06/12/2017 NLGM Analysts Visit - 05th December
NLGM Analysts Visit - 05th December
NLGM Environmental
06/12/2017
NLGM Analysts Visit - 05th December
Community Relations
06/12/2017
Employment
▪ NLGM has grown to be a major source of new employment
▪ 44% of workforce at NLGM currently employed from surrounding villages
▪ Growth of local business ventures dealing with poultry and farm products
Education
▪ Construction of 6 classrooms and 8 offices at Mbangala
▪ Built 2 Classrooms and 1 office in Patamela
▪ 600 desks donated
▪ 120 scholarships awarded
▪ 3 labs constructed for SazaSecondary school
▪ 20k liter rain water harvesting
Health
▪ Provision of the site ambulance to transport patients from Mbangala to hospital in Mkwajuni
▪ Bore hole drilling for water supply
▪ Installation of solar panel at Mbangala
▪ Assistance with medicine
Community
▪ Ongoing re-settlement program at Singida to conditions with sustainable land use
▪ Shamba resettlement complete and Elizabeth Hill resettlement on track
▪ Livelihood Improvement Programme
Shanta’s Ongoing Commitment to CSR
06/12/2017 NLGM Analysts Visit - 05th December
Q1 ‘17 Q2 ‘17 Q3 ‘17 Q4 ‘17 Q1 ‘18
New Luika underground development:
• First production of stope ore ✓
New Luika Planning:
• Update to Base Case Mine Plan to incorporate new Indicated
Resources at Elizabeth Hill and Ilunga ✓
Projects
• HFO power commissioning ✓
• TSF 2 commissioning
• Solar power project ✓
Positioned for growth – upcoming milestones
2906/12/2017 NLGM Analysts Visit - 05th December
Upcoming catalysts (as stated in Sept 2017)
3006/12/2017 NLGM Analysts Visit - 05th December
September 2017 December 2018
SingidaProject update
Announced new senior management team
Continue to de-lever balance sheet
Realign management incentives with shareholders
Exploration update:on-mine trenching results
Ramp-up Luika UG mine
January 2018 Guidance of 80,000oz gold production 2017 at $800/oz AISC
Continue execution of cost initiatives (2018)
Singida update—internal FS
Implement cost saving initiatives
Discussions with the Government of Tanzania around the current US$13.5 million VAT receivable are ongoing. US$3.4 million VAT refund was received in November 2017
Exploration strategic update
Debt re-financing update
VAT Receivable – for discussion
Cumulative VAT paid by Shanta (US$m)
1.1
2.4
3.7
4.9
6.06.7
7.78.7
9.4
10.5
11.712.5
13.514.1
14.615.2
15.916.9
13.5
May
-16
Jun
-16
Jul-
16
Au
g-1
6
Sep
-16
Oct
-16
No
v-1
6
Dec
-16
Jan
-17
Feb
-17
Mar
-17
Ap
r-1
7
May
-17
Jun
-17
Jul-
17
Au
g-1
7
Sep
-17
Oct
-17
No
v-1
7
VAT refunded of US$3.4 million was received in November but $13.5 million remains outstanding
Recent discussions held with various Ministries in Dodoma
06/12/2017 NLGM Analysts Visit - 05th December
06/12/2017 NLGM Analysts Visit - 05th December
New Luika Gold Mine Summary
• Strong record of operational delivery
• Smarts built into mine design and plans
• Expertise in development projects
• A team with capability to perform and grow
• Transition to underground firmly on track
• Continued low cost operations on the back of high grade resources
• Substantial contributor to cash generation
www.shantagold.com
ASANTE