Frieda River – a nation-building Project | August 2017 Page 1

Frieda River:A nation-building ProjectNovember | 2017

Frieda River – a nation-building Project | August 2017 Page 2

PanAust overview

Frieda River – a nation-building Project | August 2017 Page 3Project Update to the State Team | 14 August 2017 Page 3

PanAust Limited

Australian-headquartered

Chinese-owned

Operating assets in Laos

Ban Houayxai Gold-Silver

Phu Kham Copper-Gold World-class development

project in Papua New Guinea

Exploration Licences in Myanmar Frieda River

Copper-Gold

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Investment rationale

Established mining jurisdiction with a skilled workforce

Major resource sector projects including PNG LNG (US$19 billion)

PNG actively seeking foreign investment

Familiar operating conditions

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Frieda River is approaching its

golden anniversary

Familiar operating conditions

Frieda River – a nation-building Project | August 2017 Page 6Project Update to the State Team | 14 August 2017 Page 6

1968 to 1986

Discovery and initial exploration phases

1986 to 2007

Exploration and pre-feasibility studies

2007 to 2013

Xstrata resource definition and study work

2014PanAust

acquisition

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Excellent progress

2015 Study execution

2017 Value enhancements

Under PanAust’s management

2016 Feasibility study completed SML application lodged EIS lodged

2014PanAust

acquisition

2014 PanAust acquired an

80 per cent interest in the Project

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Sepik River Port

Road and pipeline

Logistics/product route (707 km)

2016 Feasibility Study

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Road and pipeline (330 km)

2018 Study Scope

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Improving the value proposition

Power for the mine plus export

30+ year mine life

Shared-use infrastructure

Western economic corridor

2016 Feasibility Study 2018 Study Scope

17-year mine life

Sole-use infrastructure

Sepik River logistics route

Hydro-electric power plus fuel oil

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Post-mining legacy 400 MW hydropower for 50+ years

Proven solutions

Issues Solutions

Sole-use infrastructure Shared-use infrastructure

Sepik River barging Western corridor road access

Downstream water quality Subaqueous deposition

Tailings and waste rock disposal Contained behind embankment

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Value enhancements

Shared-use infrastructure to benefit other industries

Broader economic benefits for Sepik region and PNG

Lower capex and longer mine life

Improved mine plan and lower power cost

Frieda River barge offload facility and exploration access track

PanAust has invested

US$ 100 million since 2014

Updated HITEK and Nena Mineral Resource estimates

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A nation-building Project

Frieda River – a nation-building Project | August 2017 Page 14Project Update to the State Team | 14 August 2017 Page 14Frieda River – a nation-building Project | November 2017 Page 41

Frieda River Copper-Gold Project

Developing a world-class copper-gold resource

A major foreign direct investment in PNG

Pioneering trilateral collaboration

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A showcase for leading-practice mining

Design, engineering

and technology

Construction and project

management

International standards

Sustainability

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No longer just a mining project...

Sepik Development Project

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Sepik Development Project

Sepik Infrastructure Project

Linking:

Communities Markets PNG to Asia

Sepik Power Grid Project

Powering:

Mining Commerce People

Frieda River Copper-Gold Project

Creating:

Jobs Revenue Business opportunities

Frieda River Hydro-electric Project

Providing energy:

Renewable Stable Clean

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Economic Impact Assessment

Large initial and ongoing capital investment

Substantial employment opportunities

Shared-use infrastructure model will drive economic growth

Major new revenue steam

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Next steps

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The way aheadProgress road development in Sandaun Province

Engage with potential infrastructure partners

Government-to-Government support as a flagship project

Secure PNG permits and confirm State participation

Create a conducive investment environment

Final Investment Decision and Project development

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