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GOLDEN HOLDINGSIN SA

Paul WittwerASX: WPGSAEMC2 Dec 2016

GOLDEN HOLDINGS IN SA ● SAEMC ● DECEMBER 2016 2

Note 1: The information pertaining to the Challenger gold project ore reserve estimate was detailed in the market announcement entitled “Challenger 30 June 2016 Mineral Resource and Ore Reserve estimates” released on 25 Oct 2016 and is available to view on www.wpgresources.com.au. WPG confirms that it is not aware of any new information or data that materially affects the information included in that announcement and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed except to the extent of production since the mine was brought back into production in late May 2016.The information pertaining to the Challenger gold project mineral resource estimate was detailed in the market announcement entitled “Challenger 30 June 2016 Mineral Resource and Ore Reserve estimates” released on 25 Oct 2016 and is available to view on www.wpgresources.com.au. WPG confirms that it is not aware of any new information or data that materially affects the information included in that announcement and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.The information pertaining to the Challenger gold project exploration activities and results were detailed in the market announcement entitled “September 2016 Quarterly Activities Report” released on 18 October 2016 and is available to view on www.wpgresources.com.au. WPG confirms that it is not aware of any new information or data that materially affects the information included in that announcement.

Note 2: The information pertaining to the Tarcoola gold project ore reserve estimate was detailed in the market announcement entitled “Tarcoola gold project Feasibility Study and Ore Reserve Estimate” released on 1 September 2016 and is available to view on www.wpgresources.com.au. WPG confirms that it is not aware of any new information or data that materially affects the information included in that announcement and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.The information pertaining to the Tarcoola gold project mineral resource estimate was extracted from the report entitled “December 2012 Quarterly Report” released on 24 January 2013 and is available to view on www.asx.com.au. The information for both projects was first disclosed by Mungana Goldmines Ltd under the JORC Code 2004. WPG has not undertaken any work on the project that would impact this published resource estimate. WPG confirms that it is not aware of any new information or data that materially affects the information included in that announcement and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

Note 3: The information pertaining to the Tunkillia gold project mineral resource estimate was detailed in the market announcement entitled “Tunkillia resource estimate enhanced at higher cut-off grade” released on 4 February 2015 and is available to view on www.wpgresources.com.au. WPG confirms that it is not aware of any new information or data that materially affects the information included in that announcement and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The latest information pertaining to the Tunkillia gold project exploration activities and results were detailed in the market announcement entitled “Encouraging gold assays received from Tunkillia drilling” released on 4 May 2016 and is available to view on www.wpgresources.com.au. WPG confirms that it is not aware of any new information or data that materially affects the information included in that announcement.

Note 4: This document may include forward-looking statements. Forward-looking statements include, but are not limited to statements concerning WPG’s planned mining and exploration programs and other statements that are not historical facts. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward-looking statements. In addition, summaries of Exploration Results and estimates of Mineral Resources and Ore Reserves could also be forward looking statements. Although WPG believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.WPG cannot guarantee the accuracy and/or completeness of the figures or data in this presentationAll dollar amounts indicated in this presentation are in Australian dollars unless otherwise stated

DISCLAIMER

http://www.wpgresources.com.au/




http://www.asx.com.au/




CORPORATE OVERVIEW (ASX: WPG)

Board of DirectorsBob Duffin Executive ChairmanMartin Jacobsen MD & CEOGary Jones Technical DirectorLim See Yong Non-Executive DirectorDennis Mutton Non-Executive DirectorHelen Wiseman Non-Executive Director

Capital Structure Share price (30 November 2016) $0.078Quoted shares 695.5 millionQuoted options (3.8¢ exercise price)

Option price (30 November 2016)

60.5 million

$0.036Incentive rights (none vest before June 2017) 21.9 millionMarket capitalisation (diluted for options) $55.3 millionCash and doré (30 September 2016) $12.1 millionEnterprise value $43.2 million

Substantial Shareholders Bob Duffin 51,445,068 7.55%Jalinsons Pty Ltd 38,216,664 6.60%CBA 34,877,381 6.01%

Brief Corporate History• Acquired South Australian iron-ore assets for $4 million and

5 years later in August 2011, sold the assets to OneSteel Ltd for $320 million

• Acquired Tarcoola and Tunkillia gold projects in May 2014, transitioning its strategic focus from iron ore to gold

• In March 2016, finalised acquisition of Challenger gold mine and associated South Australian exploration assets

SharePrice($)

6 TradingVolume(million)


CREATING A GROWING GOLD PRODUCER

Board & Management with

strong track record of delivering

shareholder value

• Acquired iron-ore assets for $4 million which were sold 5 years later in August 2011 for $320 million – significant capital returned to shareholders

• Added Challenger to existing portfolio bringing total gold resources to 14.1 million tonnes at 2.02g/t for 919 thousand ounces and gold reserves to 1.27 million tonnes at 3.93g/t for 160 thousand ounces.

Creation of a growing Australian

gold producer

• Existing portfolio with a strong South Australian geographic focus

• Challenger an attractive gold asset – proven large-scale operation with total aspirational FY17 production of ~50 koz

• Tarcoola minimal capex spend - significant synergies with Challenger operations with annual production aspiration of ~20 koz

Platform for further growth

• Anticipated market re-rating as WPG moves to 70koz/annum producer

• Generation of cash flow and increased financial capacity to fund exploration and development activities

• Pursue logical, value accretive opportunities to improve and diversify asset portfolio


THE GOLDEN TRIFECTA

Tunkillia (100%)• Pre-development asset with JORC

resource• Highly prospective Yarlbrinda shear

zone• Mineral Resource estimate is 12.32mt at

an average grade of 1.41g/t Au containing 558koz of gold

• Exploration Drilling Mar-Apr 2016• Reviewing previous DFS

Challenger (100%)

• Acquired in March 2016• First gold pour on 31 May 2016• ML 6457 granted for ‘Challenger

Deeps’• 30 June 2016 Mineral Resource

estimate is 838kt at an average grade of 9.76g/t Au containing263koz of gold

• 30 June 2016 Ore Reserve estimate is 558kt at an average grade of 4.98g/t Au containing89koz of gold – similar for last 4 years

Tarcoola (100%)• ML 6455 granted in March 2016• Mineral Resource estimate is 973kt at an

average grade of 3.12g/t Au containing97.5koz of gold

• Ore Reserve estimate is 710kt at an average grade of 3.1g/t Au containing71koz of gold

• PEPR approved and mining contractor mobilised

• Ore to be processed at Challenger

PROJECT TOTAL RESOURCES

As at 30 June 2016

Tonnes (kt)

Au Grade (g/t)

Au Metal (koz)

Challenger 838.0 9.76 263.0Tarcoola 973.0 3.12 97.6Tunkillia 12,320.0 1.41 558.0TOTAL 14,131.0 2.02 918.6


CHALLENGER GOLD PROJECT

FIRST GOLD POUR IN MAY 2016


Established Operations• Challenger mine acquired by WPG in March 2016• Acquisition cost of $1m, inclusive of $2.7m bonds• Production history of >1 million ounces• >91% of CJV workforce South Australian based• >84% of overall workforce South Australian basedShort-Term Production• Re-deployment of workforce from 16 May 2016 with first

gold poured on 31 May 2016• Restart achieved within budget (both $ and time)• Key contracts renegotiated• Minimal Restart Capital cost• WPG acquired 100% of the asset from previous 50% JV

with and Diversified Minerals effected 1 August 2016 • Gold production of 12,138oz in Sep Qtr

SUCCESSFUL RE-START OF OPERATIONS


CENTRAL INFRASTRUCTURE HUB

Established Infrastructure• Challenger CIP processing facility throughput capacity of

650ktpa• Other key infrastructure on site includes: diesel power stations (~5MW total capacity) tailings storage facility offices and workshop facilities unsealed airstrip a mine village housing up to 200 personnel

• Efficiency of mill to be maintained through supplementing mill feed from: existing stockpiles Tarcoola ore treatment Potential other third party toll treatment

• Key contract terms including mining, power, air transport and camp services renegotiated and finalised

• Located centrally to prospective exploration assets


CHALLENGER GEOLOGY & MINERALISATION

• Garnet rich Christie Gneiss• Gold is associated with “vein-like”

polymineralic leucosomes forming migmatites

• Understanding structure is key – many differences between lodes and within lodes

CW OD1

M2 S2

250m

Plan View of lodes


WGCJV – TYRANNA RESOURCES

• 100% ownership to ML6457 (‘Challenger Deeps’) now confirmed after dispute resolved amicably

• No change to existing JV arrangements with other partners Iron Road and Coombedown Resources

TYX-WPG JVTYX-WPG-CBD JV100% WPG

25 Km


CHALLENGER RESOURCE & RESERVE ESTIMATES

Resource Category Tonnage (000 t) Grade (g/t gold) Contained ounces (Gold 000 oz)

Measured 214 5.42 37Indicated 475 11.14 170Inferred 149 11.61 56Total 838 9.76 263

Reserve Category Tonnage (000 t) Grade (g/t gold) Contained ounces (Gold 000 oz)

Proved 190 3.52 22Probable 368 5.74 68Total 558 4.98 89

As at 30 June 2016


CHALLENGER RESERVE CHANGE APR-JUN 16

June 2016 Ore Reserve estimate compared to April 2016 Ore Reserve estimate

June 2016 – April 2016 FY Production (-oz)

Change in Reserve from June 2016 to April 2016 (-oz)

Change in Reserve from June 2016 to April 2016 (+oz)


79%

17%

3% 1%

CW Aminus

Budgeted production from various levels for FY 2017 – no Challenger deeps included

UNDERGROUND MINING FY 2017

New

Min

ing

Leas

e –

Cha

lleng

er D

eeps


Challenger deeps on new mining lease and plans being made to re-establish services

CHALLENGER DEEPS


Above: CSSW drilling targets

Below: Flitch of 955 CSSW showing significant intercepts and geologicalinterpretation.

14 YEARS ON – STILL SIGNIFICANT EXPLORATION POTENTIAL

Exploration Upside • +1 Million Oz gold system and open at depth with numerous

conceptual targets• Ability for extensions of mine life in deeps and through

discovery• Sufficient drilling capability to systematically define new

mining areas in advance of expected mining• Reviewing old areas not previously mined due to lower gold

price at the timeCSSW• Challenger SSW discovery has an exploration drive with

development on structure• New mineable lodes generally associated with sporadic very

high grade intersections• Encouraging mineralisation on several horizons down plunge• More drilling being conducted to identify continuity of new

target zones

CW-Aminus

CSSW


TARCOOLA GOLD PROJECT

MINIMAL CAPITAL COSTS BY PROCESSING AT CHALLENGER


Project Overview• Original Definitive Feasibility Study based on

conventional open pit mining and heap leach recovery of gold

• ML 6455 granted in March 2016 based on heap leach processing

• Compelling case to process ore through Challenger CIP treatment plant: Significantly reduces capital expenditure Provides a higher confidence of gold recovery Potential for increase in reserve grade Reduces overall unit processing costs at Challenger

• DFS revised to reflect this option in Sep 2016• PEPR approved by DSD on 4 Nov• Mining commenced in early Nov after approvals and first

ore will be delivered to Challenger for processing by mid-December

STRONG PROJECT ECONOMICS

MINERAL RESOURCESCategory 000s Tonnes Au g/t Au ozMeasured - - -

Indicated 919 3.14 92,680

Inferred 55 2.77 4,860

TOTAL 973 3.12 97,540ORE RESERVES

Category Ore Type 000s Tonnes Au g/t Au oz

ProbableOxide 310 3.8 37,000Transitional 140 2.3 11,000Primary 260 2.7 23,000

TOTAL 710 3.1 71,000

DFS SummaryCapital Expenditure $4mAverage AISC ($AU\Oz) $916Mine Life 2 yearsProcessing period 3.5 yearsPlant Recovery 95%Return on capital invested (Pre-Tax) 350%Average Strip ratio 10.6:1Ungeared pre-tax NPV7.5 $39.6m


TARCOOLA GEOLOGY & MINERALISATION

• At Perseverance, gold mineralisation is hosted within sedimentary rocks of the Tarcoola Formation and granite, (both Proterozoic)

• Gold has locally been remobilised and enriched in the weathering profile.

• The base of partial oxidation occurs at a depth of ~20-60m

• Primary mineralisation tends to occur in discrete high-grade fracture zones.


Site Layout• Open pit and waste rock facility• Potential expansion of open pit with higher recoveries in primary

zone• No requirement for leach pads or processing facilities• Reduced requirement for on-site infrastructure = reduced

environmental impact• Haulage route with low capital requirements for “fit for purpose”

165km road to Challenger• Utilisation of other Challenger infrastructure• Accommodation in Tarcoola townshipMining• Using Exact Mining Services for the mining and ore haulage

contracts• 350ktpa ore to be mined using conventional open pit equipment;

treated at Challenger at 240ktpa• Pit depth 110m

MINIMAL CAPITAL REQUIREMENTS


PROGRESS TO DATE

Access Road Construction

RO Plant Infrastructure

Inaugural FIFO Flight

Access Road

Refurbished Hospital Accommodation and camp infrastructure

Turkey’s Nest


• Extensive areas of old workings indicate potential for increasing the resource and mine life

• Near term exploration program planned which is aimed at expanding Tarcoola mine life

TARCOOLA ML UPSIDE POTENTIAL


TUNKILLIA GOLD PROJECT

PROSPECTIVE OPPORTUNITY WITH JORC RESOURCE


PROSPECTIVE EXPLORATION OPPORTUNITY

Project Overview

• WPG holds 100% interest in all tenements

• Cornerstone “223 Deposit”

• Strategy to identify additional resources to feed central mill

• Extensive ground position on two major shear zones: Yarlbrinda & Yerda

• Significant bedrock gold mineralisation present at a number of prospects

• Excellent discovery potential

• Analogous to major Kalgoorlie shear zone systems

223 Deposit: 12.3 million

tonnes @ 1.41g/t

(84% Measured & Indicated)

558,000 oz Au1,482,000 oz Ag


223 DEPOSIT GEOLOGY

• Primary mineralisation hosted in steep to moderately dipping quartz veins associated with sulphides in the primary zone

• Some lateral supergene dispersion of mineralisation has occurred above the base of partial oxidation


FORWARD DEVELOPMENT STRATEGY

Development Strategy

• Previous owner completed Scoping Study and PFS on the “223 Deposit” – based on a lower grade resource (1.04g/t rather than the current 1.41g/t)

• Indicative mine life 5 to 6 years

• Opportunities to re-engineer Project

• Previous PFS undertaken shows project economics would be significantly enhanced with an expanded resource to amortise capital cost

Work underway

• Undertaking a quartz vein study to identify any high grade deeper targets (feeders)

• Developing strategy to find satellite resources from within the project area through exploration


2016 EXPLORATION

• RC drilling completed at Area 51 and Tomahawk Prospects earlier in the year following up new calcrete anomalies


EXPLORATION OPPORTUNITIES

• Extensive ground position on two major shear zones: Yerda& Yarlbrinda

• 3 Exploration Licences covering an area of 1,604 km2

• 33 identified prospects• Only minor follow-up work on

most prospects• 95% of drilling is in northern

12km• Significant discovery

opportunities through systematic exploration of these shear zones

223 Deposit


SUMMARY

• Proven Operational Mine

• New mine with strong economics

• Advanced Exploration Project with JORC Resource


PROVEN MANAGEMENT UP TO THE CHALLENGE

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