Cleveland Mining Company Limited Management, Strategy &
Projects August 2013 David Mendelawitz Managing Director ASX
CodeCDG Slide 2 Cleveland Mining Company Limited Important
Information 2 This presentation contains certain forward looking
statements. All statements, other than statements of historical
fact, that address activities, events or developments that
Cleveland Mining Company Limited (Cleveland or the Company)
believes, expects or anticipates will or may occur in the future
are forward looking statements. Forward looking statements are
often, but not always, identified by the use of words such as seek,
anticipate, believe, plan, estimate, target, expect, and intend and
statements that an event or result may, will, can, should, could,
or might occur or be achieved and other similar expressions. These
forward looking statements reflect the current internal
projections, expectations or beliefs of Cleveland based on
information currently available to Cleveland. Forward looking
statements are subject to a number of risks and uncertainties,
including those detailed from time to time in filings made by
Cleveland with securities regulatory authorities, that may cause
the actual results of Cleveland to differ materially from those
discussed in the forward looking statements, and even if such
actual results are realised or substantially realised, there can be
no assurance that they will have the expected consequences to, or
effects on Cleveland. Cleveland expressly disclaims any obligation
to update or revise any such forward- looking statements. Slide 3
Cleveland Mining Company Limited Investment Highlights 3
Experienced team with clear strategy & significant skin in the
game Located in a region with a strong mining culture, large
skilled labour pool and extensive mine service providers
Development risk now largely removed with mine ramp up progressing
well as the Premier mine transitions into production Now positioned
for game-changing growth through exploration upside and/ or
acquisition Strategy designed to mitigate variable market
conditions Track record of fast track success Location of Cleveland
Projects Slide 4 Cleveland Mining Company Limited Why Gold in
Brazil? 4 Brazil Traditional mining country Low sovereign risk
Acceptable royalties and taxes Low cost energy, labour, on-costs
Example Cost BrazilAustraliaCost Difference Truck driver (cost to
business) $15,000 - 20,000 p.a. 150,000 200,000 p.a 1000% + Power
Source 7c 15c per Kwh (hydroelectric) +30c (Gas) +50c (Diesel)
50-700% Diesel$1.08/L1.42/L130% Gold Low barriers to entry High
potential profit margin in right jurisdiction Easy to understand
Easy to sell Constant strong demand Declining world in-ground
resources Slide 5 Cleveland Mining Company Limited Start Small to
Build Strong Foundations Establish strong relationship with local
partner Edificia Participaes Low technical risk development funded
by equity to minimise debt servicing pressure Room to understand
environment what affects budgets and schedules what can and cant be
done Time to pull together a team Sort out teething issues Strong
foundation for growth 5 Slide 6 Cleveland Mining Company Limited
From Concept to Cash Flows in 3 Years Starting with no resource, no
team, no permits and minimal funds, Cleveland has: Secured projects
Identified a resource Designed and licensed the project Built a
team and solid understanding of Brazil Established production
Secured a growth horizon Within FY13/14 Cleveland will have:
Stabilised production Established profitability Commenced expansion
6 Slide 7 Cleveland Mining Company Limited Premier Mine February
2012 Premier Mine June 2012 A Mine Built in Six Months Premier Mine
June 2013 Slide 8 Cleveland Mining Company Limited Premier Gold
Mine 8 Stage 1 (ongoing) 50:50 Joint Venture with Edifica
Participaes Mining and production commenced 40tph processing
capacity Installed plant capability to deliver 10,000oz 20,000oz
with current ore (1.0 3.0 gt) and 60% recovery. 34,000t @ 1.79gt of
crushed or containing approx. 60kg of gold on ROM currently being
processed. Achieving >60% recovery Stage 2 (Q4 2013 Q1 2014)
Introduction of higher-grade material from Premier and O Capito
(3.0 10.0 gt) Addition of cyanide and floatation circuit to
increase recovery from 60% to 90%+ Stage 3 Expansion of resources
through further drilling and possible acquisition of other gold
projects held in immediate region Slide 9 Cleveland Mining Company
Limited Easy Mining with Exploration Upside 9 Initial Foundation
Inferred Resource of 1.96mt @ 1.41 g/t for 89,000 ounces defined to
underpin production start and payback of investment Early access to
high grade mineralisation Ore-body is outcropping and shallow
dipping Open along strike and down dip Unit repeats below and an
order of magnitude thicker Multi million ounce prospectivity
demonstrated through drilling, geophysics, soil sampling and
mapping Slide 10 Cleveland Mining Company Limited O Capito Gold
Project 10 Resource expansion potential Less than 10km from Premier
Mine Site of large artisanal mine (5-10t Au extracted by hand) Two
mineralised areas identified: 1.Lavra 2.Dona Maria Multiple stacked
lodes identified with significant high- grade intercepts,
Including: Lavra 1.30m @ 14.29 g/t Au from 44.7m 2.00m @ 17.21 g/t
Au from 39.0m Dona Maria 11.00m @ 1.01 g/t Au from 51.00m to 62.00m
4.40m @ 3.55 g/t Au from 91.00m to 95.40m Planning for processing
at Premier Mine Lavra Dona Maria Premier 9km Dona Maria Lavra Slide
11 Cleveland Mining Company Limited Premier Gold Mine The Next 18
Months 11 PeriodMilestone Event 3Q2013Resumption of mining and
crushing 4Q2013Start of mining of Premier underground
1Q2014Commissioning of cyanide circuit Start of mining of Lavra at
O Capito 2Q2014Start of mining of Dona Maria at O Capito 3Q2014
Start of mining Premier Pit 3 Slide 12 Cleveland Mining Company
Limited Multiple Sources of Ore 12 Current production from ROM
stockpiles Open pit mining re- commencing Q4 Relatively low
reliance on underground sources Slide 13 Cleveland Mining Company
Limited Premier Financial Metrics Targets 13 Based on 1H2014
production targets @ 7,000 ounces per Qtr Tonnes processed 70,000 /
qtr with average head grade 3.22 g/t Processing recovery at 90%
Brazil C1 cash cost target A$400 per ounce Australian Head Office
expense target A$125 per ounce Sustaining CapEx and exploration
expense target A$100 per ounce Cleveland JV profit share 70/30
reducing to 50/50 as JV funding debt repaid by Edifica to Cleveland
Slide 14 Cleveland Mining Company Limited Growth Potential Gold
Mara Rosa Gold Project 100 km from Crixas Strike extension of
Amarillo Gold Corps 1.2m ounce Posse Deposit Iron Ore Alliance with
BC Iron 3 Projects comprising 80 tenements Early stage iron ore
Exploration on highly prospective ground Strategically located next
to developing Port and Rail Infrastructure 14 Slide 15 Cleveland
Mining Company Limited Company Overview and Capital Structure 15
Issued and Paid UpNumber Shares Shares on issue 211,486,669 Options
Options ($0.20)3,527,000 Options ($0.62)500,000 Performance Options
($0.20 - $0.84, against significant progress milestones) 24,540,000
Total Options 28,567,000 Cleveland Mining Company Ltd. (ASX:CDG)
Major Shareholders Mrs Sarah L. Mendelawitz 20.93% Mr Wang Zhe6.00%
BC Iron (SA) Pty Ltd. 4.39% Finook Pty Ltd3.40% Penwerris Pty
Ltd2.56% Share Price$0.13 Market CapA$23m 1-year RangeA$0.07 0.95
Cash (at 30/6/13)
