Developing High Grade Tungsten and Lithium Assets€¦ · FEBRUARY 2017 PREMIER AFRICAN MINERALS | AIM : PREM 2. Premier African Minerals – Overview . Profile. Strategy. Key Projects

Developing High Grade Tungsten and Lithium Assets

MINING INDABA 2017 | CAPE TOWN

Disclaimer

The information contained in this document has been prepared based uponinformation supplied by Premier African Minerals Limited (the Company). ThisDocument does not constitute an offer or invitation to any person to subscribe for orapply for any securities in the Company.

While the information contained in this Document has been prepared in good faith,neither the Company nor any of its shareholders, directors, officers, agents, employeesor advisers give any representations or warranties (express or implied) as to theaccuracy, reliability or completeness of the information in this Document, or of anyother written or oral information made or to be made available to any interested partyor its advisers (all such information being referred to as Information) and liabilitytherefore is expressly disclaimed.

Accordingly, to the full extent permitted by law, neither the Company nor any of itsshareholders, directors, officers, agents, employees or advisers take any responsibilityfor, or will accept any liability whether direct or indirect, express or implied,contractual, tortious, statutory or otherwise, in respect of, the accuracy orcompleteness of the Information or for any of the opinions contained in this Documentor for any errors, omissions or misstatements or for any loss, howsoever arising, fromthe use of this Document. Neither the issue of this Document nor any part of itscontents is to be taken as any form of commitment on the part of the Company toproceed with any transaction and the right is reserved to terminate any discussions ornegotiations with any person. In no circumstances will the Company be responsible forany costs, losses or expenses incurred in connection with any appraisal or investigationof the Company. In furnishing this Document, the Company does not undertake oragree to any obligation to provide the recipient with access to any additionalinformation or to update this Document or to correct any inaccuracies in, or omissionsfrom, this Document which may become apparent.

This Document should not be considered as the giving of investment advice by theCompany or any of its shareholders, directors, officers, agents, employees or advisers.Each party to whom this Document is made available must make its own independentassessment of the Company after making such investigations and taking such advice asmay be deemed necessary. In particular, any estimates or projections or opinionscontained in this Document necessarily involve significant elements of subjectivejudgment, analysis and assumptions and each recipient should satisfy itself in relationto such matters.

This Document may include certain statements that may be deemed forward-lookingstatements. All statements in this discussion, other than statements of historical facts,that address future activities and events or developments that the Company expects,are forward-looking statements. Although the Company believes the expectationsexpressed in such forward-looking statements are based on reasonable assumptions,such statements are not guarantees of future performance and actual results ordevelopments may differ materially from those in the forward-looking statements. TheCompany, its shareholders, directors, officers, agents, employees or advisers, do notrepresent, warrant or guarantee, expressly or impliedly, that the information in thisDocument is complete or accurate. To the maximum extent permitted by law, theCompany disclaims any responsibility to inform any recipient of this Document of anymatter that subsequently comes to its notice which may affect any of the informationcontained in this Document. Factors that could cause actual results to differ materiallyfrom those in forward-looking statements include market prices, continued availabilityof capital and financing, and general economic, market or business conditions. Investorsare cautioned that any forward-looking statements are not guarantees of futureperformance and that actual results or developments may differ materially from thoseprojected in forward-looking statements.

FEBRUARY 2017 PREMIER AFRICAN MINERALS | AIM : PREM 2

Premier African Minerals – Overview

Profile Strategy Key Projects Value

AIM-listed mining and resource company

Developing tungsten, lithium, tantalum, rare

earth elements and industrial minerals

(limestone)

Experienced management team

Board with track record of successful mineral

development

Bringing RHA into profitable production

Advancing the Zulu Lithium and Tantalum

project

Other near-term resource opportunities

RHA Tungsten Project

Zulu Lithium/Tantalum Project

TCT Industrias Florestais

RHA Tungsten ProjectCommencing production

Exploration upside Zulu Lithium & Tantalum

52% interest in TCT Industrias Florestais

A US$4 million shareholding in Circum

Minerals Limited, a private potash developer

4.5% interest in CasaMining Limited, a gold

developer FEBRUARY 2017 PREMIER AFRICAN MINERALS | AIM : PREM 3

0

1

2

3

Capital Structure

Average daily trading volumes

2016 Q42016 Q32016 Q2 2016 Q1

21,020,20629,015,37735,607,29440,945,735

Capital Structure as of 1 February 2017

Share Price 0.52 pence

Shares Outstanding 3,159,722,734

Warrants/options 443,684,541

Fully Diluted 3,603,407,275

Market Capitalisation £16.4 million

52 Week Share Price Major Shareholders

AIM 0.15-1.15p George Roach – 15.1%

AIM

Clo

sing

Pric

e (p

ence

) Daily Share Price


Board of Directors

Highly experienced Board and management team with extensive experience in exploration, mining and corporate management

George RoachChairman & CEO

Extensive experience in natural resource business development in Africa. He has held positions in and/or initiated a number of start-up businesses listed on AIM and/or TSX-V. Other interests include Anglo African Agriculture and Agriminco Corp.

Ian StalkerNon-Executive Director

Over 30 years of development and operational mine experience in Europe, Africa, and Australia. Chairman and Director of TSX-listed Azincourt Resources Inc., Chairman and former CEO of TSX-listed Brazilian Gold Corp, former CEO of Berkeley Resources, former CEO of Uramin Inc. and former Vice President of Gold Fields Ltd

Michael FosterNon-Executive Director

Over 30 years’ experience of all aspects of the mining industry. Founding shareholder and Director of the AIM traded Zinc Ox Resources plc. Former Non-Executive Chairman of Copperbelt Minerals Limited, Director of CASA Mining Limited and director of Solantera Resources

Russel SwartsNon-Executive Director

South African Chartered Accountant and has held senior financial roles in both public and private companies, more recently as CFO for Uru Metals Ltd (formerly Niger Uranium Limited). Mr. Swarts has extensive experience of operating companies across Africa

JANUARY 2017 PREMIER AFRICAN MINERALS | AIM : PREM 5

Management Team

George RoachChairman & CEO

Extensive experience in natural resource business development in Africa. He has held positions in and/or initiated a number of start-up businesses listed on AIM and/or TSX-V. Other interests include Anglo African Agriculture and Agriminco Corp.

Anthony Michalec Chief Operating Officer

A mining professional with in excess of 35 years’ of experience in mining engineering gained at both open pit as well as underground operations across Africa with companies like Shanta Gold, First Quantum Minerals and Anglo American. Mr Michalec has significant experience in mine planning and production management as well as supervising large mining operations.

Russel SwartsFinancial Consultant

South African Chartered Accountant and has held senior financial roles in both public and private companies, more recently as CFO for Uru Metals Ltd (formerly Niger Uranium Limited). Mr. Swarts has extensive experience of operating companies across Africa

Wolfgang HampelSenior Geologist

Mr Hampel has 26 years' experience in the African, American, European and Asian exploration and mining industry and holds a Diploma in Economic Geology (Dipl.-Geol.) from the Technical University of Munich. He is a registered European Geologist (EurGeol), n° 1261, with the European Federation of Geologists

Gerard EvansSenior Resource Geologist

Mr Evans has 27 years' experience in geology and resource geology, primarily in the Southern African mining industry. He holds an Honours Degree in Geology from the University of the Witwatersrand and is registered with SACNASP. He is a Competent Person in gold


Highly experienced Board and management team with extensive experience in exploration, mining and corporate management

Southern African Assets

Tinde ProjectFluorite & Barite

Katete ProjectRare Earths

RHA ProjectTungsten

Globe ProjectGraphite

Zulu ProjectLithium & Tantalum


TCT (CatapuProject)Forestry & Limestone

Exploration Projects In Southern Africa

Project Mineral Geology Status Update / Potential

Zulu Project Lithium & Tantalum

Two pegmatite bodies totaling 3.5km in length with lithium oxide (Li₂O) grades up to 2.67%, tantalum oxide (Ta2O5) to 1037 ppm

Metallurgical test-work commissioned through Dorfner Anzaplan in Germany 2,500 meter drilling programme completed at the end of January 2017

Globe Project

Graphite At least 4 parallel graphite horizons between 1.40m and 6.40m wide; mineralised zone at least 450m long; best graphite grades to date 6.40m @ 10.14% graphitic carbon.

Potential for polymetallic Cu, Zn, and Ag mineralisation

TindeProject

Fluorite & Barite Numerous up to 3m wide hydrothermal fluorite veins in granites and gneisses. Small scale industrial mining took place until the 1970s.

Potential for wider, open-pittablemineralization

KateteProject

Rare Earths A massive carbonatite with continuous rare earth mineralisation

TCT IF Limestone Planning an initial exploration assessment, maiden resource and scoping study over the course of 2017



Location Hwange Area, Zimbabwe

Product Wolframite – (Fe,Mn) WO4 Concentrate

Resource Underground Measured, Indicated and Inferred resource of 1.267 million tonnes at composite grade of 4.25kg/t WO3Open Pit Measured, Indicated and Inferred resource of 20.882 million tonnes at 2.34 kg/t WO3

Development Strategy

Underground mining development as well as open pit operations In conjunction with a XRT technology to increase the feed grade to the plant

Mining Method Underground and open pit mining operations

Production Rate Target throughput of 40,000 tonnes per month, 16,000 tonnes from the underground mine and 24,000 tonnes from the open pit operations, producing up to 10,000 mtu tungsten trioxide concentrate per month

Development Stage

Process plant being optimized with XRT sorting technology Open pit mining to resume in Q1 2017Underground shaft being upgraded and more stopes being prepared to resume mining in Q1 2017. Ramp up to the design rate of 40,000 tonnes per month by the end of Q1.2017

Installation of the cone crusher



High Grade Resource with upside potential〉 Underground MI&I Resource of 1.267mt at

4.25kg/t WO3

〉 Open Pit I&I Resource of 20.882mt at 2.45kg/t WO3

Historic mining record〉 1,919t WO3 concentrate between 1931 – 1979

〉 Vertical shaft, numerous adits and underground development exists

Simple gravity process flow sheet

Locally indigenized〉 51% Owned by NIEEF


RHA gravity plant

Tungsten Market

〉 World’s hardest metal with the highest melting point

〉 Tungsten is used in essential applications such as steel tools, cutting blades, military applications, alloys, lighting and electronics

〉 Strong demand growth - global tungsten demand is growing at an annual rate of approximately 3.7%

Opex curve for tungsten projects Forecast global primary tungsten consumption to 2018


〉 Price trend - Prices have increased from around US$50 per mtu in 2002 to over $400 per mtu in 2011. Tungsten is currently trading around US$180 – US$200 per mtu

〉 The general trend of decreasing APT prices over the last couple of years appears to have bottomed with prices recovering this year and anticipated to return to higher prices over the next couple of years

Source: Roskill Source: Northland Capital Partners

Zulu Lithium & Tantalum Project

〉 The Zulu Lithium and Tantalum project covers 3.5 km² and is located 80 km east of Bulawayo

〉 The project is generally regarded as potentially the largest undeveloped lithium bearing pegmatite in Zimbabwe

〉 It was initially pegged in 1955 and intensely explored in the 1960s by Rhodesian Selection Trust (“RST”)

〉 Recent 3D modelling indicates a strong correlation of both historic data from RST with recent surface drilling

〉 Exploration has extended the strike of the two pegmatite zones to 3,500 meters and the depth extension has indicated continuity below 200 meters

〉 The orebody remains open along strike and to depth

Pegmatite boulders with lithium mineralisation

Drill cores containing lithium mineralisation


Zulu Lithium & Tantalum Project

〉 Finalising a 2,500m exploration programme to test for extensions on strike as well as depth

〉 Initial results include significantly elevated tantalum oxide (Ta₂O₅) grades encountered in all holes sampled to date, with grades reported as high as 706 ppm Ta₂2O₅ in borehole ZDD 14 and lithium oxide (Li₂O) grades of over 2% over 20m in borehole ZDD-16

〉 Massive lithium enriched mineralised intersections in excess of 40 meters in hole ZDD-05

〉 Latest assay results include:

〉

From left to right:lepidolite spodumene pegmatite @ 0.94% Li2O and 42 ppm Ta2O5spodumene (pink) pegmatite @ 2.09% Li2O and 106 ppm Ta2O5petalite pegmatite @ 2.39% Li2O and 46 ppm Ta2O5holmquistite gneiss / amphibolite and pyrite @ 0.55 % Li2O

Large pegmatite boulder with petalite crystals


DDH

Number

From To Length

(metres) *

Li2O

(%)

Notes

ZDD-10111.34 121.57 10.23 1.56%

Including 1.66 metres

@2.35 %Li2O (111.34 –

113.0 metres)

ZDD-10 97.34 105.72 8.38 1.60%

Including 2.16 metres @

2.12% Li20 (97.34 – 99.50

metres) and

2.03 m @ 2.26% Li2O

(102.67 metres – 104-70

metres)

Zulu 1A 230 238 8 1.85%Including 2 metres @

2.33% Li2O (232.38 -

234.38 metres)

* Drilled widths

Lithium Market

World forecast demand for Lithium by first use (t LCE)


〉 Lithium-ion batteries driving demand〉 20%+ annual growth since 2000

〉 Currently 30% of global market

〉Electric Vehicles and E-bikes 〉 Currently 3% of global lithium market

〉 Accelerated growth expected from 2015

〉Conventional applications〉 Currently 70% of global market

〉 Glass % ceramics typically use technical grade concentrate

Source: Roskill

Global Motor Vehicle Lithium Demand


〉Tesla Series 3 to be released in 2017, retail price of US$36,000, 400,000 orders already and growing

〉Mercedes Benz releasing 12 new models of EV’s in 2017

〉BMW i3 Series due for release in 2017 in direct competition with Tesla Series 3

〉Audi, Volkswagen major EV model expansion in 2017-2018

〉China, Japan and Korean Government policy strongly supports EVs with large rebates, zero sales tax and free licensing

〉Toyota will cease using lead acid batteries from 2017 with 100% adoption of EVs by 2020

〉1 million EVs in Korea by 2020

Tesla’s new Gigafactory opened in January 2017

Mercedes Benz Generation EQ range

TCT Industrais Florestais

Mining area

Game farm fence line

Railway line

Railway service road

Old mining area

NB; the northern part of the game farm and most of the mining area is within the TCT concession


TCT Industrais Florestais

〉 52% interest in TCT Industrais Florestais Limitada (TCT)

〉 TCT owns a sizeable limestone deposit covering 27km² located in the Sofala region of Mozambique

〉 The deposit is located 20km southwest of Caia and the property lies adjacent to a 3 line siding on the Tete/Beira rail link

〉 Preliminary test work on surface material indicates acceptable grades of CaCO₃ for limestone and cement production; solubility for Agri-lime and material that is suitable for aggregates production

〉 Planning a exploration program and preliminary scoping study over the course of 2017

〉 TCT’s current forestry operations are expected to contribute to the exploration and development expenditure of the limestone deposit

Re-forestation

Transporting logs to the mill


Circum Minerals Limited – Overview

〉 2 million shares in Circum Minerals limited (Circum) with a fair value of US$4 million

〉 Circum is a privately owned company, developing its 100% owned Danakil Potash Project, located in the Danakil Depression of Ethiopia. The Danakil project is one of the largest and lowest costs potash development projects in the world

〉 The DFS has a NPV of US$ 2.1Billion. Circum currently has 1,006.6m shares in issue

〉 Circum expects a near term liquidity event

〉 As a significant and world class resource, Premier’s holding in Circum Minerals provides security for any future financing, and significantly bolsters the Company’s financial position


CASA Mining Limited – Overview


〉 4.5% interest in Casa Mining Limited (CASA) plus the right to acquire an interest up to 30%

〉 Casa is a privately owned exploration company with a 71% interest in the Misisi Project which comprises mining licenses over 60km long exploration corridor with a number of highly prospective gold exploration targets. (US$30 million has been spent to date)

〉 Akyanga deposit is the most advanced with existing 1.2Moz JORC resource of 1.72g/t Au (completed by SRK in 2014)

〉 2014 Positive Scoping Study by MDM and SRK into a 80koz pa open pit operation

〉 2016 Re-interpretation identified target resource of up to 3moz at +2g/t

〉 US$4 million program to deliver Scoping Study by mid 2017, including 5,000 meter drill program to validate potential for 3Moz resource identified in 2016 geological re-interpretation

〉 To be followed by 12 month program to deliver a PFS by mid-2018

Investment Highlights

〉 PREM is on track to commence production at RHA

〉 Near term revenue from RHA Tungsten project with potential to deliver for the long term

〉 Completed a 2,500m drilling programme at Zulu to test strike as well as deliver a maiden resource

〉 Completed the TCT transaction which has the potential to be self financing

〉 Shareholding in Circum Minerals Limited and Casa Mining Limited

〉 Diversified natural resources company with a portfolio of significantly undervalued projects

〉 Experienced board and management team with a proven track record of successful development of mineral projects on the African continent


Appendix


Harare Skyline

Mining in Zimbabwe

〉 Population 13 million

〉 Area 390,759 square km (150,873 square miles)

〉 GNI per capita US$820 per annum

〉 Major languages English (official), Shona, Sindebele

〉 Major religions: Christianity, indigenous beliefs

〉 Currency: multi-currency system; US$ & ZAR

〉 Government: Zimbabwe African National Union Peoples Front (ZANU-PF)

〉 President: Robert Mugabe (aged 92) for the last three decades

〉 In December 2015, Mr Mugabe was endorsed once more as the ruling party candidate for the 2018 presidential elections but media continue to speculate about a potential successor


Mining in Zimbabwe

〉 African mining country with > 100 years of modern mining history

〉 Last mining boom between 1995-2004 saw 98% of the country under reconnaissance, exploration or mining license

〉 Major companies that have operated in Zimbabwe, Rio Tinto, BHP, Anglo American, Falconbridge, Impala Platinum, Anglo Platinum

〉 Skilled mining work force and well educated population

〉 Good infrastructure, road and rail, power transmission (mining takes precedent for power usage)

〉 Government is addressing the cost of doing business in Zimbabwe


Contacts

For additional information or

enquiries, please contact:

George Roach, Chairman & CEO

[email protected]

www.premierafricanminerals.com


mailto:[email protected]

http://www.premierafricanminerals.com/

Documents

Developing High Grade Tungsten and Lithium Assets€¦ · FEBRUARY 2017 PREMIER AFRICAN MINERALS | AIM : PREM 2. Premier African Minerals – Overview . Profile. Strategy. Key Projects