CORPORATE RESENTATION - Proactiveinvestors UK...November 2016 3 Stratex International - Corporate...

NOVEMBER 2016

CORPORATE PRESENTATION

November 2016 www.stratexinternational.com 2

Disclaimer

These presentation slides (the “Slides”) do not comprise an admission document, listing particulars or a prospectus relating to Stratex International plc (the ”Company”) or any subsidiary of the Company, do not constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase securities in the Company. The Slides and the accompanying verbal presentation are confidential and the Slides are being supplied to you solely for your information and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. 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The Slides and their contents are confidential and should not unless otherwise agreed in writing by Hannam & Partners Advisory LLP be copied, distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person. Hannam & Partners Advisory LLP has not authorised the contents of, or any part of, the Slides and no representation or warranty, expressed or implied, is made by as to any of its contents.


Stratex International - Corporate Overview

Stratex’s assets

Turkey

Operational: Altıntepe gold mine (45%) – achieved first gold pour Q4 2015. Expected to meet forecast production for 2016.

Exploration: Muratdere Copper-Gold feasibility-stage project (14.87%) – feasibility completed Q1 2015

Senegal

Exploration: Dalafin project (85%) - 472.5 sq km licence in prospective gold belt

Stratex’s partnerships

Goldstone

AIM listed exploration company focussed primarily on West Africa

Stratex holds 33.45% in Goldstone

ThaniStratex

An East and North African-focussed exploration and development company

Stratex holds 32.4% in ThaniStratex

Tembo Gold

A TSX-listed ; owns licence adjacent to Barrick’s 14 Moz Bulyanhulu Mine in Tanzania

US$0.75 m raised in Sept 2016 for 4,000 m RC drill programme

Stratex holds a minority stake

Management – New CEO

CEO: Marcus Engelbrecht

Marcus joined Stratex with more than 30 years’ experience in the global mining industry, and at Board level, with a strong corporate vision to build Stratex into a significant global gold producer. Previously he was MD of Archipelago Resources plc (150koz/pa producer), CFO of OceanaGold and spent 20 years at BHP Billiton.

Chairman: Christopher Hall

Christopher has over 40 years of wide-ranging experience in the mining sector. Christopher joined Stratex in February 2008 as a Non-Executive Director, becoming Chairman in January 2011. He recently retired as a former consultant to Grant Thornton where he assisted in Public Company Advisory for LSE and AIM clients.

Share data: AIM-listed (STI) as of Nov 1 2016 Shares in issue 467.31m Fully diluted shares 490.12m Share price 2.175p Market cap. £10.2m Group cash balance (June 2016) £2.7m

Anglogold Ashanti 11.5%

Blackrock 8.0%

Teck Resources 7.7%

Orion Trust 5.7%

G.P. Jersey 4.3%

Antofogasta 2.2% Thani Emirates

2.2%

Other 58.2%

Advisors

Broker:

NOMAD:

Capital Structure & Shareholders


Stratex International - Vision & Strategy

Vision To grow into a <100,000 ozpa gold producer and explorer

delivering substantial returns for shareholders

Strategy 1. Maximise value add from current portfolio

2. Seek acquisition opportunities of near- or in-production gold assets

3. Focus on acquiring and developing later stage exploration projects with path to production

4. Continue to develop exploration partnerships

5. Recruit an experienced executive management team

6. Have a global remit with focus on Africa, SE Asia and Europe


Stratex International – 12 Month Performance

400

600

800

1,000

1,200

1,400

1,600

Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16

US$

/oz

Gold Stratex Juniors index*Source: CapitalIQ as of 1 Nov 2016 Note: rebased to gold price * Unweighted Junior gold index includes Hummingbird Resources, Avnel Gold, Ariana Resources, Goldplat, Serabi Gold, Chaarat Gold, Sula Gold, Aureus Mining, Goldstone

5.3%

12.1% 7.4%

“Buy Gold No Matter Who Wins the Election”, HSBC

Says , November 2016

“The precious metal could reach levels not seen since

2013”

World Gold Council, October 2016

“Gold has already demonstrated its value as a

safe haven this year. With Brexit-induced

economic and political uncertainty likely to

persist for some time, we think the precious

metal will remain in high demand”


Stratex International – Geographic Footprint

EGYPT, DJIBOUTI (THANI STRATEX)

• Private vehicle (32.4%)

• Multiple prospects

SENEGAL

• Dalafin (85%) – greenfield

TANZANIA (TEMBO)

• Tembo – greenfield

GHANA (GOLDSTONE)

• Homase-Akrokerri 602,000 oz gold project (33.45%)

TURKEY

• Altıntepe Gold Mine (45%)

• Muratdere Copper-Gold feasibility-stage project (14.87%)

Operational asset

Development asset

Stratex-managed projects

Stratex Investments


Stratex International - Overview of Altintepe Gold Mine

• Operational gold mine in northern Turkey. 8km from the Black Sea near Fatsa

• 45% ownership in partnership with Bahar Madencilik, an experienced local mining contractor

• Bahar acquired 55% of Altintepe and funded and constructed the operating mine

• The first gold pour was achieved in November 2015

• Annual production 2016 expected at circa 30,000 oz au

• Once the mine achieves profitability, capital repayment and cash distribution will occur

• Addition capital expenditure on Phase II expanding leach pad


Stratex International - Operations Altıntepe Gold Mine

Camlık East -

section

Resource

• 3 mt @ 1.34 g/t Au and 0.5 mt @ 0.35 g/t Au (a total of 130 koz)

Stage 1 capital

• Recover c.110 koz oxide gold over 40 month

Production Capacity

• Operating at 30,000 oz/pa Au nameplate production capacity

• On track to achieve target for 2016

Cost

• H1 Operating costs of US$560/oz, excluding additional capital, working capital, closure costs and royalties

Expansion

• Potential for 8-9 year total mine life as other zones are brought into production

• Kayatepe, Camlik East, Extention Ridge,Karakışla

• Sulphides at Extension Ridge (potential)

Cashflow

• Stratex to recover 20% of net free cash flow until Bahar recovers capital development costs, thereafter Stratex will receive 45% of net free cash flow

Challenges

Sovereign risk perception

Water management

Ground control

Land acquisition

Opportunities

Expand LoM

Oxides

Sulphides

Other regional ventures with JV partner


Stratex International - Turkey Gold Exploration Projects

Camlık East -

section

Muratdere Project • Owned and managed by Lodos (mining investment) a subsidiary of Pragma (investment bank)

• A copper/molybdenum/gold porphyry project

• Owned 14.87% by Stratex

Karaağac Project • 37 RC and 9 DD holes over property

• Acquired by Anadolu Export in 2015 for success based payment and 1.5% NSR royalty

• Exploration and drilling managed by Stratex

Karacaören Project • Some RC holes. Awaiting finalisation of forestry permit

• Once operating licence obtained Turkish company to acquire for 1.5% NSR royalty and historical cost to Stratex

Doğanbey Project • 3 RC (412m)and 3 DD(1308m) holes. Awaiting finalisation of forestry permit.

• Potential for gold and molybdenum.

• Once finalised Turkish company to acquire for 1.5% NSR royalty

Hasançelebi Project • 19 DD holes for 5,295 m with a number of good intercepts

• High-sulphidation epithermal gold project

Enez Project • Have transferred mining licences with 1% royalty over Bentonite

• Have retained all rights over gold discoveries in licence area

Doğala Project • Two DD holes. Awaiting finalisation of forestry permit


Stratex International – Dalafin Greenfields Exploration Project, Senegal

472.5 sq km licence in prospective gold belt

Stratex holds 85% equity in JV company

33,400 m RAB/AC drilling programme completed – multiple mineralised zones intersected

First phase RC and diamond drilling completed on four key gold targets

• Outcrop sampling has returned best results of 1.6 g/t Au from Baytilaye East and 1.37 g/t Au, 1.23 g/t Au, and 0.92 g/t Au from Baytilaye West

All data currently being reviewed with a

view to project reassessment

Excellent early drilling results including:

• RC - 7 m @ 86.39 g/t Au, 1 m @ 4.39 g/t Au and 2 m @ 1.26 g/t Au

• DD - 96 m @ 1.51 g/t Au; 3 m @ 10.47 g/t and 4.8 m @ 1.06 g/t Au

• Infill soil sampling has extended the gold anomaly (>30 ppb) at Faré South

• Second NW-trending anomaly (10-60 ppb) over 1,250 m strike identified

Initial trenching programme identified 30-45 m-wide mineralised zone over 1,200 m strike. Supported by drilling:

• RC - 15 m @ 6.10 g/t Au, 2 m @ 4.90 g/t Au and 3 m @ 3.69 g/t Au

• DD - 9.6 m @ 16.08 g/t Au, 3.8 m @ 1.48 g/t Au and 1.5 m @ 2.84 g/t Au


Stratex International - Opportunities via GoldStone (AIM:GRL) investment

Assets include:

602,000 oz Homase/Akrokerri project, Ghana. Goldstone is focussed on increasing existing oxide resource of 100,000 oz @ 1.3 g/t Au

Sangola project in Senegal

Uyem and Ngoutou projects in Gabon

Goldstone successfully raised £1m in July 2016 to fund project development

In September 2016 Stratex and Goldstone entered into a Technical Services Agreement

Stratex has also recently converted a short-term loan facility of US$0.35m to equity

Ghana exploration programme has recommenced following recent capital injection

Goldstone is focussed on new gold exploration opportunities to grow its portfolio

Homase/Akrokerri Project

Located within the Ashanti Gold Belt (~70 Moz Au), adjacent to AngloGold Ashanti’s 42 Moz Obuasi gold mine.

Stratex owns 33.45%


Stratex International – Opportunities via ThaniStratex Resources Ltd Investment

ThaniStratex Resources Ltd (TSRL) is a gold exploration and development company focussed in East and North Africa

In 2014, Thani Emirates Resource Holdings and Stratex combined their East and North African assets in the region (including Stratex's Blackrock and Pandora projects) and each contributed US$1.0m of initial working capital towards development of the portfolio Stratex Chairman on TSRL Board Assets included Stratex-vended gold projects in Djibouti and Thani’s former 0.52moz (non-JORC) gold project in Egypt US$1.25m raised by TSRL in February 2016 to fund drilling programme in Djibouti – drilling underway Further US$2m raised by TSRL in April 2016 to advance Egyptian prospects

Thani Emirates Resource Holdings

52.4%

Stratex 32.4%

Resource Capital Funds

15.2%

ThaniStratex ownership

Egypt • Hutite:

• Non-JORC Inferred resource of 1,410,000 tonnes grading 1.41 g/t Au for 520,000 in-situ ounces using 0.4 g/t Au cut-off

• Anbat-Shakoosh • 15km south of Hutite • Diamond drilling results

of 69 m @ 1.21 g/t Au, 65 m @ 1.12 g/t Au and 160 m @ 0.99 g/t Au

Djibouti • 12 concessions • Asaleyta Licence

• Channel sampling with values of 19m @ 4 g/t Au and 6m @ 10 g/t Au

• 5 grab samples > 20 g/t Au • Maiden drilling programme

underway

• Oklila Licence • 93 sq km licence • Rock-chip sampling results

of 25.9 g/t Au

Overview

Assets


Stratex International - Conclusion

The primary focus of the Executive and Board is shareholder value.

Stratex has a committed Board and a management team with proven successes at the corporate, operating and exploration level.

Our strategy of now focussing on near or in production assets and later stage exploration projects enables us to better manage the companies’ risk profile and to deliver into our corporate vision.


14

APPENDIX


Metallurgical flotation testwork of supergene material yielded 80% recovery of sulphide-copper with concentrates averaging 33.6% Cu

In-house resource of 51 Mt @ 0.36% Cu (186 kt), 0.12 g/t Au (205 koz) and 0.0125% Mo (6 kt)

Advanced Exploration at Muratdere (Cu-Au), Turkey

Feasibility study defined initial optimised resource of 16 Mt resource (Ind. & Inf.) based on three-pit design using 0.3% Cu cut-off

Resource defined by Stratex - retains 14.87% interest

Feasibility study indicated post-tax project income of US$90 M, IRR of 29%, and NPV of US$35.9 M at 7.6% discount and US$6,000/t Cu

16 Mt optimised pit design:

80,000 t Cu @ 0.54% 48,000 oz Au @ 0.10 g/t

0.5 km


Christopher Hall, Chairman

Christopher has over 40 years of wide-ranging experience in the mining sector. He has recently retired as consultant to Grant Thornton UK LLP, principally assisting the Public Company Advisory team with clients listed on London Stock Exchange and the AIM market. Christopher joined Stratex in February 2008 as a Non-Executive Director, becoming Chairman in .

Directors and Management

Perry Ashwood, Chief Financial Officer

Perry qualified as a Chartered Accountant in 1971, training with Spain Brothers & Co. and KPMG. During his 40-year professional career he has worked in senior management with British Oxygen Ltd, Rank Xerox Ltd, and Intermec International Inc. before becoming an independent consultant in 2000.

Marcus Engelbrecht, Chief Executive Officer

Marcus has over 30 years’ experience in the global mining industry; at Board level and as managing director of a London listed company. Previously Managing Director and CEO of Archipelago Resources plc where he took the company from construction into production. Before that he was CFO of OceanaGold and also served as CFO of the Diamonds & Speciality Products group of BHP Billiton.

Peter Addison, Independent Non-Executive Director

Peter qualified as a solicitor in 1966 and practiced in the City of London, specialising in company and commercial law. In 1982, Peter became a director of English Trust, a corporate advisory bank, and for some twenty years was involved in providing corporate finance advice to a wide range of public companies in the UK and Ireland on all aspects of their businesses. He is currently non-executive chairman of SiRViS IT plc, a UK company.

Emma Priestley, Non-Executive Director

Emma has a background in mining and financial services having worked with mining companies and consultants, IMC Mackay & Schnellmann, investment bank CSFB, advisers VSA Resources, Ambrian Partners, where she worked as corporate broker and adviser, and most recently as an executive director of Lonrho Plc until its recent successful takeover. Emma is a graduate of Camborne School of Mines, is a Chartered Mining Engineer and Chartered Mineral Surveyor.

Chris Worcester, Independent Non-Executive Director

With a BSc in Chemistry and an MBA in Finance, Chris began his career in 1993 with Barclays de Zoete Wedd, where he worked in the metals and mining project finance team. During his career, Chris has also held positions with the Royal Bank of Scotland as Director and Head of Financial Modelling and Analysis, and WestLB Capital Markets, where he was responsible for building and managing the global metals and mining team.

November 2016 180 Piccadilly London W1J 9HF Tel: +44 (0) 20 7830 9550 Email: [email protected]

17

Directors and Management

Issouf Ouedraogo, General Manager, West Africa

A national of Burkina Faso, Issouf has built his 20 year career through exploration and evaluation of brownfield and greenfield gold projects across Africa, including Burkina Faso, Mali, Guinea, Tanzania, DRC, Ghana and Ethiopia. In Ethiopia he made a substantial contribution to finalising a positive due diligence that led to the signing of a US$21 M dollar agreement, securing two strategic gold projects for his former employer, Gold Fields Exploration.

Bahri Yildiz, General Manager, Turkey

A Turkish national with a career spanning more than 30 years dedicated to mineral exploration and mining geology throughout Turkey. Bahri commenced his career in 1980 with the government's General Directorate of Mineral Research and Exploration. More recently he was Exploration Manager Turkey for Dardanel Madencilik, the Turkish subsidiary of major Canadian mining company Inco Ltd, before joining Stratex in 2005.

Claire Bay, Group Manager

A Chartered geologist with 8 years’ experience in the resources sector, Claire joined Stratex in 2007 and has been instrumental in supporting and managing the group at all levels from project to senior corporate. In addition to managing the Company’s corporate and investor-based activities, Claire is heavily involved in data review and interpretation and project generation.

John Cole-Baker, Director Stratex West Africa Limited

With over 40 years of experience, John has been involved in infrastructure and mining development projects, at various levels up to Project Director, as well as restructuring projects in Africa, Europe, the Former Soviet Union, the Middle East, and the Indian sub-continent. Since the 1990’s he has also been director of a number of consultancy companies and is currently an adviser to UNCTAD.

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