Click to edit Master subtitle style Nickel Asia Corporation Presentation on NAC PSE: NIKL RIC: NIKL.PS BBG: NIKL.PM Analysts Presentation April 2015

Click to edit Master subtitle style

Nickel Asia Corporation

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

Analysts PresentationApril 2015

2

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, 4 nickel exploration properties, and 4 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

► 2014 Revenues of Php 24.7 B1 (+123%); Attributable Income of Php 8.6 B (+316%). Cash balance of Php 16.4 B2.

► Successful downstream processing with a 10% interest in the Coral Bay HPAL facility and 22.5% interest in the new Taganito HPAL facility, commissioned in 2013.

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

1 Consolidated

2 Consolidated, including AFS financial assets

3

Leading laterite ore producer with a strong reserve base

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

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%

Lim

on

ite

Sa

pro

lite

Rio Tuba Mine Pit

4

Rio Tuba MineOwnership

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

Operations Commenced 1975

Remaining mine life1 Approx. 11 years

MPSA Renewal Year 2023

2013 Volume/Revenue 5.8 mWMT / 3.0 bPHP


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






Taganito Mine

Note: 1 Remaining mine lives from January 1, 2015, calculated based on December 31, 2013 ore reserves and estimated annual nickel ore shipments and 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.

Nickel exploration

55

Our exploration programs are geared towards strategically expanding resources and confirming significant potential reserves to support growth in the long run

Overview of our Exploration Projects

Bulanjao1 Manicani2 Kepha3 Boa4

Location Palawan Eastern Samar Surigao del Norte Surigao del Norte

Ownership RTN HMC TMC CMC

Area (ha) 3,605 1,165 6,981 226

Resources (m WMT)Saprolite Notes:

Measured 5.4 (1.97% Ni) - - - 1

Indicated 2.0 (1.92% Ni) - - -

Inferred 8.3 (1.80% Ni) 2.6 (1.85% Ni) 2.5 (1.61% Ni) 1.76 (1.70% Ni)

Limonite

Measured 7.6 (1.31% Ni) - - 2

Indicated 11.6 (1.06% Ni) - 3.8 (1.00% Ni)

Inferred 5.4 (1.17% Ni) 35.6 (1.19% Ni) 7.2 (0.97% Ni) 0.6 (0.8% Ni)3 Currently being dri l led.4 Awaiting renewal of Exploration Permit.

Granted permiss ion to ship ore from the s tockpi les . Dri l l ing of l imonite s tockpi les under way.

Bes ide the RTN mine. Environmental clearance now obta ined from the Palawan Conci l for Susta inable Development. Other required s tudies under way.

MPSA expiring in 2017

*other areas have different prospective

ore

MPSA/OperatingAgreement

Operating agreement expiring in 2017

Mining lease contract, for

conversion to MPSA

Operating agreement expiring in 2032

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 2014 2013 2012 2011 2010 2009 2008 2007Sales volume (contained-Ni tons) 24,066 23,569 23,923 22,668 18,783 16,898 10,506 10,355

US$ MMRevenue 331.1 274.2 324.5 382.1 352.7 234.4 153.5 291.1 Cost of goods sold 254.9 260.6 270.6 255.0 203.8 166.0 142.7 115.6 Operating expenses 7.9 8.7 8.4 7.4 6.3 5.8 4.7 5.0 Income from operations 68.3 4.9 45.5 119.7 142.6 62.7 6.1 170.5 Net income 59.4 3.6 46.6 117.4 139.8 59.1 1.9 166.0 Net income margin 17.9% 1.3% 14.4% 30.7% 39.6% 25.2% 1.2% 57.0%Average realized Ni LME price 7.65 6.47 7.95 10.51 10.15 7.68 7.78 16.19

6

► Pilot plants to test for commercial recovery of Chromium and Scandium are operating.

► Direct P&L recognition of income from 10% interest (2014 equity income: P198 million)

7

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. 5.0M 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$1,590 million, 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.(THPAL)

8

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 derive from the THPAL facility: Additional limonite ore sales of +5.0m WMT/year (2014 sales: 4.0m WMT) Direct P&L recognition of income from 22.5% interest (2014 equity income: Php324m)

9

Our Entry Into Power Generation

$10.2 M mezzanine loan to Emerging Power Inc. (EPI) to partially fund initial two ‘slim holes’ in the 40 MW, $185M Montelago geothermal project, convertible to equity1.

Drilling completed. Target depth and temperature attained. Flow rate tests on-going.

The conversion plus additional $10.6 M equity will result in 66% ownership of EPI. Expected IRR: 17 to 19%.

Project Pipeline (for evaluation):

Resource Location MW Cost ($M) IRR

Geothermal Biliran 200 900 17%

Wind CamSur 70 186 18%

Hydro Cordillera 60 268 17%

Solar-Bunker Hybrid Palawan 25 88 18%

Solar CamSur 10 22 13%

Biogas Quezon 8.6 23 12%

1 Subject to satisfactory “P90” Volumetric Resource Assessment by ISOR

1010

Product portfolio breakdown

Hi Grade Mid Grade Mid Grade High Fe Low Grade≥1.8% Ni ≥1.4% Ni ≥1.2% Ni 0.6-0.9% Ni; 48-50% Fe 1.0-1.2% Ni

2014 Volume (kWMT) 1,065 4,676 461 4,266 7,406

2014 % Volume 6% 26% 3% 24% 41%

2014 % of Revenue 18% 45% 3% 22% 12%

1 Benchmarked against China prices (US$/WMT) effective Q2 20142 Pricing was correlated with the iron ore price until Q2 2014 when pricing started to be linked to nickel

Pricing Method:LME Ni Price

x Payable Ni 1Negotiated US$/WMT

Negotiated US$/WMT

Negotiated

US$/WMT 2LME 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)

PhilippinesCBNCTHPAL

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 TubaTaganito

CagdianaoHinatuan

Rio TubaTaganito

CagdianaoHinatuan

CagdianaoRio TubaTaganitoHinatuan

Rio TubaTaganito

Shipment seasonality by quarter

11

1Q 2Q 3Q 4Q -

1,000,000.0

2,000,000.0

3,000,000.0

4,000,000.0

840,205.8

2,728,128.3

3,799,547.8

1,625,762.5

Average Shipment Volume (exclusive of HPAL) for the Last 4 Years

% Volume 10% 30% 42% 18%

NAC sales tonnages

12

'77-'04 Ave.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 -

5,000

10,000

15,000

20,000

772 1,285 988

3,494

1,421 1,897 3,217 3,436

4,236 3,594

5,741

108

1,400

5,553

3,774

2,027

4,562

5,122

6,951

7,494

10,404

12,133

Saprolite Limonite

(Tho

usan

d W

MT)

880

2,685

6,541

7,26865%

32%

10,388

8,339

11,730

13,998

17,873

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 2014, sales

volume grew at an

effective annual rate of

32%

13

Low cost nickel producer

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

Taganito and Coral Bay HPAL facilities 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

2012 Pct. 2013 Pct. 2014 Pct.Production 7.71 60.9% 5.86 56.1% 6.04 51.3%Shipping & Loading 2.79 22.1% 2.25 21.5% 2.18 18.5%Excise Tax & Royalties 1.43 11.3% 1.09 10.4% 2.23 19.0%General & Admin 0.72 5.7% 1.25 12.0% 1.32 11.2%Total Cash Costs / WMT 12.65 100.0% 10.44 100.0% 11.77 100.0%

Revenue (US$/WMT) 22.43 17.25 30.17

Operating Margin (US$/WMT) 9.78 6.81 18.40

Average Nickel LME Price (US$/lb.) 7.95 6.80 7.65

Cash Costs (US$/WMT sold)

2007 2008 2009 2010 2011 2012 2013 2014

4,800

1,596

303

1,547

3,538

2,207 2,054

8,552

2007 2008 2009 2010 2011 2012 2013 2014

10,529

2,252 1,650

4,110

6,862

5,080 4,883

15,842

2007 2008 2009 2010 2011 2012 2013 2014

16,572

5,827 4,687

8,336

12,695 11,607 11,110

24,746

Sale of oreServices and others

14

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 2014

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

Net income margin2 29% 27% 6% 19% 28% 19% 18% 35%

Ave. Ni price per pound (US$) 16.87 9.54 6.67 9.89 10.35 7.95 6.80 7.65

Source: Company data

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

65%

-6%

-16%-24%

123%

316%224%

15

Year Type Payment / Issue Date

DividendRate 1 %of PY Earnings

2011Regular Cash May 9, 2011 ₱ 0.12/sh. 30.3%

Special Cash December 8, 2011 ₱ 0.05/sh. 13.0%


Stock September 24, 2012 50% N/A


Stock July 12, 2013 25% N/A

2014

Regular Cash May 8, 2014 ₱ 0.20/sh. 36.9%

Special Cash December 10, 2014 ₱ 0.33/sh. 61.6%

Stock January 28, 2015 50% N/A

2015Regular Cash April 27, 2015 ₱ 0.70/sh. 31.1%Special Cash April 27, 2015 ₱ 0.30/sh. 13.3%

Stock TBA 100% N/A

► 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)

1 Cash dividend rates are adjusted for the effects of the 50%, 25%, and 50% stock dividends issued on September 2012, July 2013, and January 2015, respectively.


INDONESIAN ORE BAN

Ni LME and Ni Ore Prices

17

Ni ore price declined along with LME Ni price. Nevertheless, prices of mid-grade and high-grade ore are still about double compared to pre-export ban.

Nickel ore imports into China reached 53.5M wmt in 2014, down 24M wmt y-o-y. The Philippines accounted for 44M wmt.

0

25

50

75

100

125

150

5.00

6.00

7.00

8.00

9.00

10.00

11.00

1.5%Ni1.8%NiLME Ni

Ore PriceUS$/WMT

LME NiUS$/Lb

Source: LME, Macquarie Research, January 2015

Nickel prices spiked in the first half of 2014 only to fall back in the 2nd half, failing to meet analysts expectations

The large overhang of primary nickel coupled with stocks of high-grade Indonesian ore in Chinese ports and the unexpected rise in ore exports from the Philippines delayed any physical market tightness

NPI37%

Re-fined Ni / FeNi49%

SS Scrap13%

Ni Ore Flow for China NPI

18

Due to the increase in MG/HG nickel ore shipments from the Philippines and 10M wmt of HG nickel ore shipments from Indonesia in 2014, tightness of nickel ore supply will be delayed to 2H 2015.

Philippine ore exports to China will decline compared to last year. In particular, the decline will be in the high Fe type as prices are approaching break-even level due to over-supply mainly brought about by the effects of the Shandong closures. This will result in lower NPI production this year.

Lower dependence on NPI would translate to Chinese STS mills consuming more refined nickel, which will result in a decline in LME warehouse inventory and a recovery in Ni LME price.

2014 Ni Ore Flow

Beginning Import* Used End

M

wmtK Ni ton

Mwmt

K Ni ton

Mwmt

K Ni ton

Mwmt

K Ni ton

1.8%Ni 21.5 221 18.0 185 29.0 299 10.5 1081.45%Ni 1.0 9 17.0 141 13.5 112 4.5 380.8%Ni 2.0 8 20.0 83 18.0 75 4.0 17Total 24.5 238 55.0 410 60.5 485 19.0 162

*6M wmt of 0.6% Ni is not included in the import volume due to carbon steel use

2015 Ni Ore Flow

Beginning Import Used End

M

wmtK Ni ton

Mwmt

K Ni ton

Mwmt

K Ni ton

Mwmt

K Ni ton

1.8%Ni above 10.5 108 6.0 62 16.5 170 0.0 01.45%Ni 4.5 38 22.0 182 17.0 141 9.5 790.8%Ni 4.0 17 15.0 62 12.0 50 7.0 29Total 19.0 162 43.0 307 45.5 361 16.5 108

IDN 10PHL 8NPI

52%Refined Ni / FeNi

34%

SS Scrap14%

Source of Ni in China SS Production

2014 Ni Use in China SS Prod. ~935 Ni-kT

485kT

2015 Ni Use in China SS Prod. ~963 Ni-kT

361kT

Indonesian Ore Ban

19

The building of refined nickel capacity in Indonesia is much slower than anticipated.

Chinese NPI Projects in Indonesia

Chinese Nickel Ore Port StocksSource: Macquarie Research, February 2015

China port stocks of high-grade Indonesian ore is expected to be depleted by 2H and could trigger a rally in ore prices.

20

Nickel Supply-Demand Forecast

Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18

10,000

14,000

18,000

22,000

19842

2036020971

19842

Spot

Analyst Consensus

Macquarie Forecast

Spot vs. Forecast Nickel Prices

Sources:

Spot – LME

Analyst Consensus – Bloomberg, Equity Research

Source: Macquarie Commodities Research, February 2015


EO 79 ON MINING POLICIES

Impact of Presidential Executive Order No. 79 on Mining Policies

22

► 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.

► 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


END


APPENDIX

Stainless Steel Production

25

NAC Shipments Profile (Nickel Ore in kWMT)

26

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 10%

48%

41%

2014 Japan1,822

China8,644

HPAL7,406

21%

66%

13%

2014

NAC Shipments Profile (Nickel Ore Revenue in Php Million)

27

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


HPAL2,973 Japan

5,008

China15,760

Documents

Click to edit Master subtitle style Nickel Asia Corporation Presentation on NAC PSE: NIKL RIC: NIKL.PS BBG: NIKL.PM Analysts Presentation April 2015