#MiningDoneRight

Source: Geological Survey of Colombia, Annual Survey of Mining Companies: 2017 (Fraser Institute).

Cocos and NazcaTectonic plate

Caribbeantectonic plate

South American tectonic plate

Andes System

PacificOcean

AtlanticOcean

Caribbean Sea

AmazonianCraton

2017 Best Practices Mineral PotentialIndex

Strategic geographic location:Access to the Pacific and Atlantic Oceans.Low logistic costs due to proximityto the Panama Canal.

Colombia ranked 3rd in Latin America

A country to exploreColombia:

Land of mining opportunities

Progress: 32%;Target: 35% by 2017.

HIGH POTENTIAL GOLD

COPPER

URANIUM

PHOSPHATE

Source: www.andesresources.com/wp-content/uploads/2017/11/South-America.jpg. Geological Survey of Colombia- GSC, National Mining Agency- NMA.

KNOWLWDGE OF SUBSOIL

GEOLOGICAL

GEOPHYSICAL

GEOCHEMICAL

70%

60%

35%

A country to exploreColombia:


Emeralds

Coal

Nickel

Gold

Copper

LATAM

1

1

5

4

6

1

11

13

18

42

WORLD

http://www.andesresources.com/wp-content/uploads/2017/11/South-America.jpg

Potential Areas

3,705Mining Concession

Proposals(6,006,710 ha)

1,344 Titles - Exploitation(1,427,098 ha)

300 Titles - Construction & Assembly(490,195 ha)

128 Titles - Exploration(206,802 ha)

1,772 Titles(1.86% of national territory)

Gold deposits are clustered in districts associated with metallogenic belts in the provinces of Antioquia, Santander, Tolima, Huila, Caldas, Nariño, Cauca and Bolivar. Deposits are also found along the Pacific coast, which are formed by the erosion

of the western branches of the Andes mountain chain. With an average tenor between 0.7 g/t and 10.8 g/t Au.

Gold mining activities

Marmato

El Roble

Cisneros

Buritica

CondotoChoco

Yaraguá

El Limon

Aluvial Nechi

Mina Guayos

Mina La Ye

Mina Carla

Segovia

Gramalote

Santa Rosa

2017: Rionegro, Alicanto MiningCondoto, Ulloa Resources

2016: Buritica, Continental GoldCisneros, Antioquia Gold

2015: Gramalote, AngloGold AshantiSanta Rosa, Red Eagle

Colombia:Land of mining opportunities

“In 2017, Colombian gold exports increased 21.7%”

2015---------5,463Ton

2016---------8,493Ton

2017--------9,355Ton

Colombia presents three (3) belts of copper porphyries in which important prospects for copper are found:

Central: El Alacran, Quebradona, El Pisno, Piedrasentada-Dominical and Mazamorras. Western: Acandi, Murindo, Pantanos-Pegadorcito, Andagueda and Piedrancha. Eastern: Andes, Infierno-Chili, Dolores and Mocoa.

491 Titles(0.68% of national territory)

252 Titles - Exploration(383,693 ha)

88 Titles - Exploitation(190,949 ha)

151 Titles - Construction & Assembly(205,900 ha)

Potential Areas

1,174Mining Concession

Proposals(2,238,309 ha)

Source: NMA, Aticomining.com

Copper mining activitiesColombia:


In Colombia deposits with an average tenor between

0.70% and 3.46% Cu, are explored.

El Roble

San Matias

Anza

El Dovio

Quebradona

Pantanos

Murindo

Cobrasco

La Mina

Gold production is expected to increase by 44% in 2020

Projects underexplorationInvestments 2017

2020 - Buritica

2022 - Gramalote

2018 - Rionegro

2018 - Cisneros

Projects with an approved environmental license


A country to explore

Source: DANE, NMA.

Total area

114,218,901 Ha 8,285 Mining titles

0.25 % Exploration

Titled area

3,933,924 Ha

0.64 %Constructionand assembly

2.55%Exploitation

3.44%of the territory

Construction materials

41%

Gold and precious metals

21%

Other minerals18%

Coal

Emeralds

16%

4%

MINERALS


Mining, an opportunity for peace

Is the peace process an opportunity or a risk for the

mining sector?*

* Survey Brújula Minera answered by 266 mining companies in Colombia

Opportunity

Risk

Not sure


Tax incentives in 344 ZOMAC municipalities

53% of the territory

“Most Affected Areas by the Armed Conflict”

** 50% between 2017 and 2021, 75% between 2022 and 2027 and 100% from 2027 onwards.

Special tax regimeDiscounted income tax ratefor the next 10 years**

Public works in lieu of taxesCompanies can pay for publicworks in these areas in lieu ofup to 50% of taxes.

We encourage investment in mining

MINING EXPLORATION:Investments in assets for the assessment and exploration of non-renewable natural resources, will be amortized using the straight-line method over a period of 5 years.

FOREIGN DIRECT INVESTMENT IN MINING: A tax refund certificate (CERT) is granted to companies increasing their investments in hydrocarbon and mining exploration activities, and will correspond to a percentage of the total increase in the investment.

PUBLIC WORKS IN LIEU OF TAXES:Companies dedicated to the exploration and exploitation of mineral resources will be able to take advantage, for up to 50% of their taxable income, of the mechanism of paying for public works in lieu of taxes.

RESEARCH, TECHNOLOGICAL DEVELOPMENT AND INNOVATION IN THE MINING SECTOR:A 25% reduction on income taxes is available for investments in research, technological development and innovation projects.

IMPORTS OF MACHINERY:Sales taxes paid on purchases or imports of heavy machinery for basic industries can be discounted from income tax.


HEALTH AND PAYROLL TAXES: An exemption from payroll taxes and contributions to the social security system for workers earning less than ten (10) OMMW* is granted to income tax paying companies

* The official minimum monthly wage in Colombia (OMMW) for year 2018 is COP $781,242 (USD $282.41). Average exchange rate USD/COP: 1 / 2,766.29 (April -2018).

ENVIRONMENTAL PROTECTION:A 25% reduction on income taxes is available for investments in conservation, control and improvement of the environment.

How to invest?

Two ways to obtain a Mining Title

ApplicationprocessFirst-come

First-served

Negotiationof an existing title

Any mineral Any available area Any natural or legal

person, Colombian national or foreigner

General requirements

Mineral rights can be freely transferred between investors

Concession Contract

Exploration Constructionand

assembly

Exploitation

30 years renewable for 30 additional years

Concertation with local authoritiesPublic Hearing


Colombia will be the 3rdcountry in

LATAM having a Resources and Reservations Code –May 2018

Sustainable and responsible mining

Territories

Government

Companies CommunitiesImproving governance and transparency

in revenues from mining activities."Colombia is a member of the

International Board of Directors."


Colombia is committed to promoting responsible mineral supply chains, in

accordance with OECD guidelines.

CONCERTATION

168 local authorities

PUBLIC HEARINGS

28 municipalities

73Titles granted


An economic compensation must be paid during the exploration and construction and assembly

stages

• Official minimum daily wage in Colombia – OMDW / hectares• OMDW 2018: COP $26,041.40• Average exchange rate USD/COP: 1 / 2,766.29 (April -2018)

EXPLORATION FEE

Number ofHectares

0 to 5 yearsOMDW/ha

5 to 8 yearsOMDW/ha

8 to 11OMDW/ha

0 - 150 0.5 0.75 1

151- 5,000 0.75 1.25 2

5,001 –10,000

1.0 1.75 2

Economic considerations

An investment destination!

Source: DANE, Central Bank, S&P Ratings, Bloomberg, Doing Business 2018, Unctad- Global Investment Trend Monitor, No28.

3rd Largest population in Latin America

49.7 million inhabitants.

4a Largest economyin Latin America

GDP 2017 USD $237.7 B• Financial sector 23%

• Services 17%• Trade and tourism 14%

• Manufacturing sector 12%

• Mining sector 2%

+3.2%Average GrowthIn the past 5 years

3rd

Most important destinationfor FDI in LATAM

USD $14.5 billion in 2017

Doing Business Ranking2018

4 59 LATAM --- World

INVESTMENT GRADE

BBB-

BBB

Baa2

Colombia is working towards meeting the member country standards and is expected to

join the OECD in June

2018

12 Free Trade

Agreements -FTAwith

55 countries


An investment destination!

Source: DANE, Migration Colombia, Ministry of Commerce, Industry and Tourism.

Australia is currently negotiating a Free Trade

Agreement with the Pacific Alliance member countries: Colombia, Chile, Mexico and

Peru.


56 Australian enterprises are established in Colombia,

including IFM Investors, Macquarie, Orica and Amcor.

are mining companies.36

Exports(to Australia)

Imports(from Australia)

FDI(from Australia)

2016(USD Million)

48

43

7

57

42

24

2017(USD Million)

Tourism2017

The Australian Government opened an

Embassy in Bogota, Colombia in 2017

16,837People

8,140 People

Average GrowthIn the past 3 years

+42%

+45%

Some companies established in ColombiaColombia:


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