Nickel Asia Corporation

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Nickel Asia Corporation

Presentation on NACPSE: NIKLRIC: NIKL.PSBBG: NIKL.PM

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NAC at a glance

► Listed in the PSE on November 22, 2010

► Largest nickel mining company in the Philippines and long operating history of mining nickel laterite since 1977

► 4 operating nickel mines, 5 nickel exploration properties, and 4 recently acquired exploration properties for gold and copper

► One of the largest supplier of lateritic nickel ore globally

► Substantial proved and probable ore reserves and long average mine lives

► Successful downstream processing with a 10%* interest in the world class Coral Bay HPAL facility

► Replicate successful technology with a 22.5% interest in the new Taganito HPAL facility to underpin earnings growth

► Strategic relationships with two key shareholders, Sumitomo Metal Mining (Sumitomo) and Pacific Metals (PAMCO)

*subject to final SEC approval of property dividend from 60%-owned subsidiary, Rio Tuba Nickel Mining Corp, in the form of Coral Bay shares

Antam NAC PT Inco Eramet Cerro Matoso

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Leading laterite ore producer with a strong reserve base

2012 Global Top 5 Laterite Ore Producers

We are one of the largest lateritic ore producers in the world. We have substantial reserves to support our dominant position and supply feedstock to our downstream

processing facilities

Source: NAC Study

Total Mineral Resources and Ore Reserves 1,2,3

Source: NAC, as of 31 December 2013

Notes:1 Mineral resources and ore reserves for four operating mines (Rio Tuba, Taganito, Cagdianao, Taganaan)2 Includes subsidiaries that are not wholly-owned by the Company3 Report prepared under the Philippine Mineral Reporting Code

Ore TypeDecember 31, 2013 December 31, 2012

%InckWMT %Ni %Fe kWMT %Ni %FeMineral Resources (Measured and Indicated) Saprolite 126,459 1.60 11.06 126,212 1.61 11.17 0%Limonite 258,630 1.10 43.28 264,912 1.10 43.18 -2%

Ore Reserves (Proved and Probable) Saprolite 119,594 1.50 11.22 119,058 1.50 11.69 0%Limonite 249,714 1.09 43.23 248,969 1.11 42.51 0%

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Rio Tuba MineOwnership

NAC (60%)PAMCO (36%)Sojitz Corp (4%)

Operations Commenced 1975

Remaining mine life1 Approx. 13 years

MPSA Renewal Year 2023

2012 Volume/Revenue 5.6 mWMT / 4.0 bPHP


OwnershipNAC (65%)PAMCO (33.5%)Sojitz Corp (1.5%)






Taganito Mine

Note: 1 Remaining mine lives from January 1, 2014, calculated based on December 31, 2013 ore reserves and estimated annual nickel ore shipments (and/or deliveries) for each mine

Ownership NAC (100%)






Cagdianao Mine

Ownership NAC (100%)






Taganaan Mine

Overview of our Mines

We have a proven track record in successfully operating mines in the Philippines.Most of our mines have significant exploration potentials.

Manicani Mine

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► MPSA granted on August 13, 1992.

► MPSA suspended by DENR on November 18, 2002 due to social issues. Operations put on care and maintenance status since then.

► On July 1, 2014, DENR authorized the disposal of nickel ore from the stockpile, which was the result of operations in the late 1990’s.

► Based on Company records, which are still subject to further drilling and testing for validation, available resources from the stockpile are:

► Actual shipments could commence in 1 to 2 months.

Ore Type Grade Volume

Saprolite ~1.75% Ni 90 kWMT

Limonite ≥45% Fe ≥1 million WMT

Our Investment in Downstream Processing Plants: Coral Bay

Facility High Pressure Acid Leach (HPAL) processing plant

Location In a Special Economic Zone adjacent to the Rio Tuba mine

Ownership NAC (10%*)Sumitomo (54%)Mitsui (18%)Sojitz (18%)

Ore Supply Low-grade limonite ore from Rio Tuba mine; approx. 3.3M WMT per year

Operations Line 1 (10,000tNi) commissioned 2005 at cost of $200MLine 2 (10,000tNi) commissioned 2009 at cost of $308M

Technology HPAL process licensed from Sumitomo

Product Nickel-cobalt sulfide sold exclusively to Sumitomo

Coral Bay Nickel Corporation (CBNC)

US$ MM 2013 2012 2011 2010 2009 2008 2007Sales volume (contained-Ni tons) 23,569 23,923 22,668 18,783 16,898 10,506 10,355

US$ MMRevenue 274.2 324.5 382.1 352.7 234.4 153.5 291.1 Cost of goods sold 260.6 270.6 255.0 203.8 166.0 142.7 115.6 Operating expenses 8.7 8.4 7.4 6.3 5.8 4.7 5.0 Income from operations 4.9 45.5 119.7 142.6 62.7 6.1 170.5 Net income 3.6 46.6 117.4 139.8 59.1 1.9 166.0 Net income margin 1.3% 14.4% 30.7% 39.6% 25.2% 1.2% 57.0%Average realized LME price 6.47 7.95 10.51 10.15 7.68 7.78 16.19

* subject to final SEC approval of property dividend from 60%-owned subsidiary, Rio Tuba Nickel Mining Corp, in the form of Coral Bay shares 6

► Pilot plants to test for the commercial recovery of Scandium and Chromite to be commissioned later this year

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Our Investment in Downstream Processing Plants: Taganito HPAL

Facility HPAL processing plant

Location In a Special Economic Zone adjacent to the Taganito mine

Ownership NAC (22.5%) Sumitomo (62.5%) Mitsui (15.0%)

Ore supply Low-grade limonite ore from our Taganito mine; approx. 4.5M WMT per year

Operations Nameplate capacity: 30,000 tNi 20% capacity increase to 36kT from 2016 First shipment commenced Oct 2013

Technology HPAL process licensed from Sumitomo

Investment cost

Capital cost of US$1,300m revised to US$1,590 million due to forex loss and effects of insurgency attack in Oct 2011, funded by JBIC loan (US$750m), equity (US$455m) and shareholders' loans. SMM funding NAC portion of shareholders' loans in return for 1% fee.

Financing JBIC Loan contract was signed on July 5. Initial drawdown was made on August 4, 2011.

Product Nickel-cobalt sulfide sold exclusively to Sumitomo

Taganito HPAL Nickel Corp.

► Civil works have started for the construction of a pilot plant to test for the recovery of Hematite

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Our Investment in Downstream Processing Plants: Taganito HPAL

► Sumitomo is one of the few companies with the technological know-how and proven execution capability to successfully develop HPAL facilities

Present

October 2010 April 2013January 2012

We will derive from the THPAL facility: Additional limonite ore sales (+4.5m WMT) Direct P&L recognition of investment income from 22.5% interest

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Product portfolio breakdown

Hi Grade Low Grade Hi Grade High Fe Low Grade≥1.8% Ni ≥1.5% Ni ≥1.5% Ni 0.6-0.9% Ni; 48-50% Fe 1.0-1.3% Ni

2013 Volume (kWMT) 1,147 2,447 539 5,586 4,280

2013 % Volume 8% 17% 4% 40% 31%

2013 % of Revenue 16% 16% 2% 52% 14%1 Pricing method correlated with the iron ore price

Pricing Method: LME Ni Pricex Payable Ni

Negotiated US$/WMT

Negotiated US$/WMT

Negotiated

US$/WMT 1LME Ni Pricex Payable Ni

For Use In: 300 Series Stainless Steel

300 Series Stainless Steel

300 Series Stainless Steel

200 Series Stainless Steel / Carbon Steel

Ni Smelter

Ni-Co Sulfide55% Ni

Sold To:Japan FeNi Smelter

Japan FeNiSmelter / China NPI Smelter (EF & RKEF)

China NPI Smelter (Blast

Furnace)

China NPI Smelter (Blast Furnace) /

China Pig Iron Smelter (Blast Furnace)

PhilippinesCBNC

Taganito HPAL

Final Products: FerronickelFerronickel / Hi-Grade NPI: 10-12% Ni

Medium GradeNPI: 6-8% Ni

Low Grade NPI (1-3% Ni) / Pig Iron

Type of Ore:

Saprolite Limonite

Supplied By:

Rio TubaTaganitoCagdianaoHinatuan

Rio TubaTaganitoCagdianaoHinatuan

CagdianaoRio TubaTaganitoHinatuan

Rio TubaTaganito

NAC sales tonnages

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'77-'04 Ave.

2005 2006 2007 2008 2009 2010 2011 2012 2013 -

2,000

4,000

6,000

8,000

10,000

12,000

14,000

772 1,285 988

3,494

1,421 1,897

3,217 3,436 4,236

3,594

108

1,400

5,553

3,774

2,027

4,562

5,122

6,951

7,494

10,404

Saprolite Limonite

(Tho

usan

d W

MT)

880

2,685

6,5417,26865%

32% 10,387

8,339

11,730

13,998

6,459

3,448

► From 1977 to 2004, annual

sales volume averaged 880

thousand WMT

► In 2005, CBNC commenced

commercial operations

► From 2005 to 2007, sales

volume grew at an effective

annual rate of 65%

► In 2008, following the global

financial crisis, volume down

by 53%

► From 2008 to 2013, sales

volume grew at an effective

annual rate of 32%

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Low cost nickel producer

► Favorable geologic conditions at all of our four mines, with near-surface open-pit deposits ► Mining does not require explosives, chemicals or complex waste handling► Ability to sell limonite ore and lower grades of saprolite ore to the China NPI market and

Coral Bay HPAL enables lower unit cost per WMT of nickel ore sold► All four operating mines are located within 3 to 7 km from the tidewater loading area► Rehabilitation of our mining areas is a simple and straightforward process

2011 Pct. 2012 Pct. 2013 Pct.Production 7.01 56.9% 7.71 60.9% 5.86 56.1%Shipping & Loading 2.87 23.3% 2.79 22.1% 2.25 21.5%Excise Tax & Royalties 1.64 13.3% 1.43 11.3% 1.09 10.4%General & Admin 0.80 6.5% 0.72 5.7% 1.25 12.0%Total Cash Costs / WMT 12.32 100.0% 12.65 100.0% 10.44 100.0%

Revenue (US$/WMT) 27.06 22.43 17.25

Operating Margin (US$/WMT) 14.74 9.78 6.81

Average Nickel LME Price (US$/lb.) 10.35 7.95 6.80

Cash Costs (US$/WMT sold)

2007 2008 2009 2010 2011 2012 2013

4,800

1,596

303

1,547

3,538

2,207 2,054

2007 2008 2009 2010 2011 2012 2013

10,529

2,252 1,650

4,110

6,862

5,080 4,883

2007 2008 2009 2010 2011 2012 2013

16,572

5,827 4,687

8,336

12,695 11,607 11,110

Sale of oreServices and others

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Financial highlights

Revenue (Php MM) Net Income2 (Php MM)EBITDA1 (Php MM)

Notes:1. EBITDA is calculated as total revenue less costs and expenses (before depreciation and amortization of RTN LT stockpile) plus other income from RTN’s ancillary services2. Represents net income attributable to equity holders adjusted for derivative transactions gains/losses. Derivative transaction gain was Php519 MM in 2007, while derivative

transaction losses were Php1,417 MM, Php79 MM, and Php47 MM in 2008, 2009, and 2010, respectively.

104% 242%

2007 2008 2009 2010 2011 2012 2013

EBITDA margin 64% 39% 35% 49% 54% 44% 44%

Net income margin2 29% 27% 6% 19% 28% 19% 18%

Ave. Ni price per pound (US$) 16.87 9.54 6.67 9.89 10.35 7.95 6.80

Source: Company data

We are one of the most profitable nickel miners in the world.

65%-6%

-16%-24%

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Year Type Payment / Issue Date

Dividendrate

%of PY Earnings

2011Regular Cash May 9, 2011 ₱ 0.19/sh.* 30.3%

Special Cash December 8, 2011 ₱ 0.08/sh.* 13.0%

2012Regular Cash May 11, 2012 ₱ 0.43/sh.* 30.5%

Stock September 24, 2012 50% N/A

2013Regular Cash May 14, 2013 ₱ 0.28/sh.** 31.7%

Stock July 12, 2013 25% N/A

2014 Regular Cash May 8, 2014 ₱ 0.30/sh. 36.9%

► Our dividend policy entitles holders of Shares to receive annual cash dividends of up to 30% of the prior year’s recurring attributable net income based on the recommendation of our Board of Directors.

Historical Dividend Payout and Payable (since 2010 IPO)

* Adjusted for the effects of the 50% and 25% stock dividends issued on September 2012 and July 2013, respectively.

** Adjusted for the effect of the 25% stock dividend issued on July 2013.


EO 79 ON MINING POLICIES

Impact of Presidential Executive Order No. 79 on Mining Policies

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► Moratorium on new mining permits until higher taxes are legislated No impact on existing operations. No impact on exploration permits/activities. Will delay conversion of exploration permits to mining permits. Moving forward, amendments to tax structure are expected to be implemented in 2014-

15.► Impact on higher taxes

Three of four NAC mines operating within Mineral Reservations will most likely not be significantly affected by higher taxes.

Currently our four mines are paying the following tax rates based on gross revenue:Taxes and Fees RTN TMC CMC HMC

Excise tax 2% 2% 2% 2%

Royalty to the Government * - 5% 5% 5%

Royalty for Indigenous People 1% 1% - -

Local Business Tax 0.5% 1% 1% 1%

Total 3.5% 9% 8% 8%

* under the Surigao Mineral Reservation Act


INDONESIAN ORE BAN

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Nickel Ore Flow – 2013

Stainless Steel Production(million MT) Ni % Ni Tonne

(kilo MT)

200-series 7.5 1% 75

300-series 11.2 8% 896

400-series 3.8 0% 0

Total 22.5 971

Ore Type Indonesia Philippines Total

mWMT Ni-kMT mWMT Ni-kMT mWMT Ni-kMT

High Grade 1.8% 52.0 517.1 4.6 45.7 56.6 562.9

Med Grade 1.6% 5.3 46.9 3.5 30.9 8.8 77.8

Low Grade 1.0% 2.1 11.6 10.0 55.3 12.1 66.9

Subtotal for NPI 59.4 575.6 18.1 131.9 77.5 707.5

For Carbon Steel - 25.0 25.0

Total 59.4 43.1 102.5

China’s Importation of Nickel Ore

72% to NPI production

28% to stockpile

Stockpile mWMT Ni-kMT

Beginning 5 48.3

2013 imports 21 198.1

Total 26 246.4

China’s Stainless Steel Production

NPI53%Primary Ni

32%

SS Scrap15%

Source of Ni in China SS Produc-tion

510 MT

Nickel Ore Flow Outlook – 2014

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China’s Importation of Nickel Ore China’s Stainless Steel Production

2009 2010 2011 2012 2013 2014

Ni Consumption (MT) 1.28M 1.37M 1.59M 1.66M 1.82M 1.916M1

Ni Supply (MT) 1.32M 1.43M 1.60M 1.72M 1.96M 1.920M2

World Market Balance (MT) +40K -60K +10K +60K +140K +4K

Ave. LME Ni Price ($/lb.) 6.65 9.89 10.36 7.95 6.83 ???

World Nickel Consumption and Supply

1 Computed from 2013 consumption + 96 kMT growth in China’s stainless steel production.2 Computed from 2013 supply + 50 kMT from new projects – 90 kMT reduction in NPI production.

Stainless Steel

Prod(mMT) Ni %

Ni Tonne(kMT)

200-series 8.3 1% 83

300-series 12.3 8% 984

400-series 4.2 0% 0

Total 24.8 1,067

Ore Type Indonesia Philippines Stockpile Total

mWMT Ni-kMT mWMT Ni-kMT mWMT Ni-kMT mWMT Ni-kMT

High Grade 1.8% 1.0 9.9 5.5 54.7 22.0 218.8 28.5 283.4

Med Grade 1.6% - - 5.0 41.4 2.0 16.6 7.0 58.0

Low Grade 1.0% - - 12.0 66.3 2.0 11.1 14.0 77.4

Subtotal for NPI 1.0 9.9 22.5 162.4 26.0 246.4 49.5 418.8

For Carbon Steel - 25.0 - 25.0

Total 1.0 47.5 26.0 74.5 39% (419kMT) from NPI

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Price Increase Post Indonesian Ni Ore Ban

Q1 2014 Ave. Prices

Apr-May 2014 Ave.

Prices

Highest Contracted Prices YTD

Last Contracted

PricesLME ($/lb.) 6.64 8.35Saprolite ≥1.80% ($/WMT) 28.33 87.11 135.00 113.00Saprolite ~1.50% ($/WMT) 17.82 35.27 92.00 70.00Saprolite ~1.40% ($/WMT) N/A 50.00 82.00 40.00Limonite ~1.20% Fe ~40% ($/WMT) N/A 39.00 40.00 36.00Limonite HiFe ($/WMT) 21.71 23.51 42.00 35.00

Ore prices to Japan are now benchmarked to China prices Shipment volume to hit 17 million WMT in 2014 due to demand for

1.4% and 1.2% ore grades Hi Fe ore is also used for NPI production

Shipment seasonality by quarter

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1Q 2Q 3Q 4Q -

1,000,000.0

2,000,000.0

3,000,000.0

4,000,000.0

838,797.3

2,548,880.2

3,479,209.2

1,635,594.9

Average Shipment Volume (without HPAL) for the Last 3 Years

% Volume 10% 30% 41% 19%


END


APPENDIX

NAC Shipments Profile (Nickel Ore in kWMT)

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14%

54%

32%

2010 Japan1,146

China4,504

HPAL2,689 8%

63%

29%

2011 Japan843

China6,567

HPAL2,977

11%

60%

29%

2012 Japan1,313

China7,065

HPAL3,352 8%

62%

31%

2013 Japan1,051

China8,668

HPAL4,280


NAC Shipments Profile (Nickel Ore Revenue in Php Million)

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34%

46%

20%

2010Japan2,679

China3,657

HPAL1,632

20%

64%

16%

2011

Japan2,416

China7,805

HPAL1,909

22%

66%

12%

2012 Japan2,447

China7,368

HPAL1,339

14%

71%

14%

2013 Japan1,464

China7,377

HPAL1,482


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Nickel Forecasts

Source: Energy & Metals Consensus Forecasts by Consensus Economics Inc. 2012 (June 2013)

Nickel Asia Corporation

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