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INVESTOR SITE VISITMAGARENG MINE - 10 NOVEMBER 2017

Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017

Legal notice/disclaimer

This presentation is published solely for informational purposes and does not constitute investment, legal, tax or other advice nor is it to be relied upon in making an investment decision. Information contained herein has been taken from sources considered by MerafeResources to be reliable but no warranty is given that such information is accurate or complete and it should not be relied upon as such. Views and opinions expressed in this presentation reflect the judgment of Merafe Resources as of the date of this presentation and are subject to change. Merafe Resources will not be responsible for any liability for loss or damage of any kind which arises, directly or indirectly, and is caused by the use of any of the information provided. The entire presentation is subject to copyright with all rights reserved. The information contained herein shall not be published, rewritten for broadcast or publication or redistributed in any medium without prior written consent from MerafeResources. Prospective investors should take appropriate investment advice and inform themselves as to applicable legal requirements, exchange control regulations and tax considerations in the countries of their citizenship, residence or domicile. The distribution of the information contained in this presentation in certain countries may be restricted by law and persons who access it are required to inform themselves and to comply with any such restrictions. This information does not constitute an offer or solicitation in any jurisdiction in which such an offer or solicitation is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Past performance is not a guarantee of future performance. The price of shares can go down as well as up and may be affected by change in exchange rates, market conditions and risks associated with a mining venture.

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Itinerary

• 09:00 – 09:30 Arrival, welcome and Presentation

• 09:30 – 09:45 Induction

• 09:45 – 11:30 Change and depart for Underground visit

• 11:30 – 11:45 Plant drive through

• 11:45 – 12:00 Refresh from underground visit

• 12:00 – 12:30 Lunch and Q&A

• 12:30 – 13:00 LION smelter presentation

• 13:00 – 14:30 Depart for LION visit and drive through

• 14:30 - Depart LION to Winterveld

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Presentation

• HSEC

• Background

• Mine layout

• Mining methodology

• Ore processing and products

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• Your safety is important to us

• SAFEALLOYS

• 9 Life saving behaviours

• Fatal hazard protocols

• Major Risks:

– FOG/Strata Control

– TMM

– Electricity and Lockout

– Conveyors

– Fire/Explosion

– Working at heights

• Behaviour Based Safety System (Meerkat)

• We Work Safe – One Day At A Time


Background

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• Location and geology


Background (cont.)

• History of chrome mining

– World’s largest known layered intrusion (Bushveld Complex)

– Thirteen chromite seams in the upper and lower critical zones 7-LG’s, 4-MG’s,

2-UG’s.

– Chromite – discovered in S.A. in 1865 by Carl Mauch in the Hex River near

Rustenburg.

– Mining chromite started in the Burgersfort and Steelpoort area in 1916.

– Un the 1960’s S.A. became a major force in the Chromium industry.

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Background (cont.)

• Geology - stratigraphy

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Background (cont.)

• Location

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Background (cont.)

• Thorncliffe mine: Started – 1997

• Rom 115 000 tons per month

• Helena mine - Started – 2004


• Magareng Mine – Started – 2008


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Background – Chromite seams mined

• Mining the MG1 and UG2 seams on the Eastern and Western limb of the bushveld

complex

• The mining width varies from 170cm to 240cm

• Dip (inclination) varies from 9° - 16° below the horizontal

• Internal waste and lenses in the reef up to ±90cm

• MG2 and other MG’s being explored currently (alternative seams)

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Background (cont.)

• Mine site 2008

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Background (cont.)• Opencast development

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Background (cont.)

• Opencast stabilisation

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Background (cont.)

• Completed high walls and start of main decline development 2010

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Background (cont.)

• Started project in 2008

• First sinking commenced in 2010

• Mining ramp up and plant construction from 2012

• Production build up to capacity from 2014

• Current production on 115 000t run of mine and plant feed

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Life of Mine including Richmond (deeper

reserves)

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Mine layout

• Trackless bord and pillar mine, all excavations on reef

• Reef width of 1.7m and mining height of 2.0m

• Main sinking comprising of 4 cluster declines, 6m wide

• Stoping sinking comprising of 4 cluster declines, 6m wide

• Stoping sections with 12 x 8m bords per section serviced by 2 strike conveyors

with tips

• Strike distances vary from 600m to 900m

• Strike conveyors transfer ore to the main dip conveyors to surface stockpile

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Mine layout (cont.)

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Declines – Ledging Vehicle Conveyor Chairlift

Sections of 12 Panels Access ledging Panels

Adit / portal Ventilation shafts


Mine layout (cont.)

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Mining methodology

• Triple decline shaft systems from surface

• All development and mining done on Reef horizon

• Low Profile Mechanised Room and Pillar Mining

• Mechanised Drilling and Loading

• Tips with vibratory feeders and herringbone Conveyor network system to transport

ore

• Monitoring Systems and Automation

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Basic mining equation

• Mining Cycle:

– 3 shifts per day – 22 working days per month

– One blast per day – end of day shift

– Blast clearance/re entry of 2 hours

– Production sections of 12-16 panels dedicated to a drill rig section:

• Cleaning – 3,5 ton lhd

• Drill and install support – remote autorock

• Face drilling and charge-up – Drill rig

• Blast – emulsion

– Face advances:

• Panels – 20 m/month

• Declines – 25-30 m/month

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Support installation

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Drill rig – panel drilling

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Charged up panel for Blasting

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Load haul dumper

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Underground tip

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Underground conveyor

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Ore flow

diagram

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ROM FEED FROM UNDERGROUND

ROM IS STORED ON A LIVE 1500 t STOCKPILE

AND CRUSHED

CRUSHED ROM IS STORED ON A 7000 t LIVE

STOCKPILE ROM IS FED INTO PREPARATION PLANT

AND SORTED INTO LUMPY AND CHIPS

LUMPY AND CHIPS FRACTIONS ARE

TREATED IN THE HMS PLANT

LUMPY PRODUCT CHIPS PRODUCT

WASTE STOCKPILE

CHEMICAL GRADE PRODUCT METALLURGICAL GRADE PRODUCT

TAILINGS

SPIRALS BUILDING

MILLING AND

CFC BUILDING


Chrome products produced

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Eastern Chrome Mines Production

Capacity/month

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Questions

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