PROPRIETARY & CONFIDENTIAL

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Frome Basin ISR

Uranium Mining Operations

Dr Andrea Marsland-Smith

Heathgate Resources Pty Ltd., Adelaide, South Australia

South Australia Exploration & Mining Conference Adelaide Convention Centre

8 December, 2017

TECHNICAL EXCELLENCE DRIVING CHANGE

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Heathgate & Quasar Resources Pty Ltd

ISR U producer in the Frome Basin for over 17 years

Heathgate owns Beverley & Beverley North mines

Quasar owns the Four Mile Mine (Heathgate operator)

Fly-in/out operation, 24/7

>$1.5B invested in SA, >$28.8M royalties, >$24M in Native Title contributions

Jobs for ~285 employees & contractors

20% of on-site non-professional employees are Adnyamathanha

Frome Basin

Lake Frome

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Beverley

• ~16 out of 24 Mlbs (in place resource) produced • Wellfields now in care & maintenance

(~2.5 Mlbs)

(~3 Mlbs)

(~18 Mlbs)

(~26 Mlbs)

(~12 Mlbs)

(~30 Mlbs)

Four Mile + Bev Nth

• ~13.5% of the in place resource produced since 2011

• Majority production from Four Mile since 2014

Booster Pump & Reagent dosing Facility

Upper Limb

Lower Limb

Redox FrontRoll Nose Protore

Roll-front in an open cut mine – Texas

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Operations

Crystalline

Basement Frome Basin

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Operating History – 27 Years

1990

• Acquired Beverley project

(discovered in 1969)

1998

• Beverley EIS approved &

successful FLT

1999-2000

• Construction of processing

plant

2001

• Commercial production

commenced at Beverley

2004

• Discovery of Four Mile deposit

2009

•Discovery of Beverley

North deposits

2010-2011

•Construction of satellite plants & production from Beverley North

2013-2014

•Development & production of Four

Mile East

2015

•Full acquisition of Four Mile

project

2017

• FLT - Four Mile West

• Decision for full-scale mining at Four Mile West

BEV - 4 years to permit to production

BEV NTH - 1.5 years discovery to production

FOUR MILE – 13 years from discovery to production

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Operating History & The Future On track to produce a record 4Mlbs in 2017

• FME resource and recoverability as

expected

• Continued wellfield optimisation

FMW Field Leach Trial successful

• Resource upgrades with more drilling

• 4-5 times richer than FME

• Reduced permeability not an issue

• 10 years production possible

(1800 tonnes)

Milestone Decision for FMW Mine

• >$30M capital development

investment for 2018

• HGR strategy to leverage low operating costs in potential U price upside with development of high grade asset in FMW

Slight uplift in the U price at year end

• Nov 9, Cameco McArthur River and Key Lake operations suspended

Acquisition of additional projects

$25/lb

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Four Mile West – Field Leach Trial

View looking FMW FLT from the Northwest to Southeast

FMW FLT WELLHOUSE

FLT Pattern 1

FLT Pattern 2

12.2m

17.5m

17.1m

12.6m

• ~ 90% of production for 5% of flow capacity of current plants & infrastructure

• Leach trial commenced mid-Feb 2017 to determine future ISR development options

• Assessing observed data against modelled:

Permeability, flow rates

Contact of the ore

Breakthrough and leaching chemistries

Decline curve modelling and expected recoveries

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2018 – Infrastructure Changes/Expansion

Injection

Booster Beverley

FMW

FME

FMNE

FMN

5_IX

7_IX

3_IX 1_IX 3_IX3_IX

Pannikan

Pepegoona

Ferric Dosing &

Injection Booster

Beverley to

FMW Trunkline

11.5km

Beverley to

Pannikan

Road 15km

FMW to Beverley Trunkline Project

• 11.5 km new trunkline FMW to

Beverley Plant

• Associated Beverley Plant

modifications

• Construction proposed to

commence in March 2018.

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Example of Indirectly Heated Horizontal Rotary Calciner (Kiln).

Source: FEECO International

• Low Temp 150°C (UO4•2H2O product)

• Capacity 13,000 U3O8/day

• Annual Throughput 4.8 M lb U3O8/year

• In service since 2001 (16 years)

Existing Beverley Dryer – Bethlehem Porcupine

(Indirectly Heated with mixer & recycle)

• High Temp 750°C (U3O8 product)

• Capacity 14,000 to15,700 lb U3O8/day

• Annual Throughput 5 to 5.6 M lb U3O8/year

• Online by Q1 2019

• Estimate Cost $6.5M

EXISTING DRYER NEW DRYER (Calciner)

2018 – Infrastructure Changes/ExpansionDrying & Packing PlantExisting vs New (Calciner)

Future growth markets (India & China) require a high

temperature (U3O8) product vs Heathgate’s current low

temperature (UO4.2H2O)

product

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Power Generation

• Current Consumption ~3-4 MW

• Gas fired generators (offtake from Moomba line)

• Gas supply price is increasing & supply terms are becoming less

favourable

• $1M Gov grant awarded to SUNSHIFT HGR to install a 1MW modular

solar PV & battery at Beverley

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Environment

• Rationalisation of monitoring and licenses:

ISR is dynamic and so monitoring needs to be dynamic also

Focussing on important aspects using best practise maintains

environment protection without giving up on the level of protection.

Reduced labour with reduced monitoring, considerable savings realised.

Re-focus staff from excessive operational monitoring data collection to

proactive analysis (real time) and commence closure planning &

monitoring where appropriate.

• Closure planning

Beverley (+/- Beverley North) wellfields

In-field Natural Attenuation (NA) verification of models presented in

approval documents

North Beverley – partially decommissioned wellfield

Monitor Well Sampling

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Technology is the Cornerstone of the Company

Dedicated team focussing on the “value add” “Test fast, understand fast, embrace change”

Technical Excellence

Driving Change

Sensor development• In-line analysis • UAV sensors etc.

Improved data acquisition & communication

Remote process control & automation

Geological Data• APFN+ tools• CSIRO collaborations (geophysics)• High definition mineralogy • Downhole 4DT

Flow Modelling (wellfields) &3D Kinetic reactive transport models

• Fe-Flow • PHREEQC geochemical modelling• Column Leach Recovery Testing

(site facility)

Advanced Visualisation• Laser scanning• Erosion monitoring• Environmental Reporting• Design• VR/AR

Example output: FEFLOW 3D Concentration gradients and Flowlines

Thankyou TECHNICAL EXCELLENCE DRIVING CHANGE