Endomines AB (publ€¦ · 19th Jan 2016. 2 Disclaimer Statements in this presentation which are not purely historical facts, including without limitation statements regarding future

Endomines AB (publ)

Exploring the true potential of the Karelian Gold Line

Erik Penser Bankaktiebolag19th Jan 2016

2

Disclaimer

Statements in this presentation which are not purely historical facts, including withoutlimitation statements regarding future estimates, plans, objectives, assumptions orexpectations of future performance are “forward-looking statements”. Investors areadvised that by their nature as visual aids, presentations provide information in asummary form and are prepared as a presenter’s aid and support - not a standalonedocument.

Please note that such forward-looking statements involve known and unknown risksand uncertainties that could cause actual results and future events to differ materiallyfrom those anticipated in such statements. Such risks and uncertainties includefluctuations in metal prices, unpredictable results of exploration activities,uncertainties inherent in the estimation of mineral reserves and resources,fluctuations in the costs of goods and services, problems associated with explorationand mining operations, changes in legal, social or political conditions in Finland, andlack of appropriate funding, all of which could among other things, prevent any of theforward looking statements in this presentation from coming to fruition or lead to adelay in the development of mining operations.


Endomines AB in a nutshell

Quoted on NASDAQ OMX Stockholm and OMX HelsinkiFocus on gold production and exploration along theKarelian Gold Line - 40 km of gold prospectivegreenstone beltPampalo Gold Mine project completed in December

2010 in line with the budget of €20 millionCommercial production commenced in February 2011Production target 800-900 kg gold/yearLong term development plans implementedWell operating mine and organizationStrong Social License to operate

Zero Harm HSE-policyStraightforward environmental permittingExcellent safety recordLong term commitment to local community development

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PampaloKarelianGold Line

Helsinki

Ilmenite

Kivimaa

Porkonen

Finland

GoldIndustrialmineral


Discovered in 1990 and explored by Finnish Geological SurveyDeveloped by Outokumpu 1995-1999 as an open pit anddecline operation down to 280m undergroundHistorical production 115,000 tons of ore 15.3 g/ton

strong indication of high grade deposits in the area

Efficient production plant:The initial design capacity of 230,000 tpa in 2011 wassuccessfully upgraded in 2013 to > max 450,000 tpaHigh utilization rate 93%

PersonnelSignificant local employer – 70 % locals60 own staff and 30 contractors

Strong social license and local support for operationsCompany applies Zero Harm-policy in all operationsExcellent safety performanceNo environmental issues

Pampalo – in the Centre of the Karelian Gold Line

4 Exploring the true potential of the Karelian Gold Line

Pampalo Gold Mine

7 20-Jan-16

MuckingVentilation raise drifting 14 Apr 2010

Safety

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Number of days withoutaccidents:• Endomines 426 days• Contractors 336 days


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Environmental

Positive local publicity

10 29-Apr-11

Several mines have had environmentalchallenges in Finland during last year /monthsBut not Endomines or Pampalo !!!


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Reasonably small operatorLocal operator - company founded 1996 inHattuvaaraLocal presence since thatTraining and employing localsSupporting local communityRegular open doors – lots of visitorsZero Harm principle for nature andemployees

Excellent Safety recordsNo environmental problems

Social License to Operate

Pampalo underground: Production and Exploration

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1999-2014 Stopes2015 Stopes

S-3 depth 755m2,55m@4,3g/t

S-1 depth 570m6,8m @4,64 g/t

N S

Pampalo main lodesopen at depth

S2+500

+400

+600

Exploration plan 2015:Expand infill drilling between leves+535 and +570Exploration drilling of depthextensionsExploration of Pampalo South

Historical mining 1995-1999:115,000t @ 15.3 g/t (~1 600 kg Au)High gold content in small ”pockets”

Hidden high-grade”pockets”potentially

Pampalo South –Exploration target area

Status November 2014

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Significantly increased mineral resources and reserves as a result of six years of committed exploration

Silver Lake Gold Mine, Australia

It has been done before !!Committed exploration led to success !!!

Daicy Milano

Daicy Milano

Rosemary

Daley East

Daley West

-200

-400

-600

-800

-200

-400

-600

-800

Mine developed to -410 level

Mine developed to -640 levelHaoma

Haoma West

Multiple new structures

Ventilationraise

Pampalo Ore Reserves and Mineral Resources development(longitudinal projection)

D+500

+600

T-134

T-153

+700

D

Planned declineextension

Year 2010 Year 2015

Mined out

T-916: [email protected]/t Au

Pampalo South:- New mneralization

zone discovered

S2S

D

N-N2- CE-C

S2



+500

+600

+700

S3: [email protected]/t Au

T-134

T-153

Pampalo Deeps Exploration project- longitudinal projection(illustrative – not in scale)

Decline

?


T-960: [email protected]/t AuIncl. [email protected]/t Au

T-934: [email protected]/t Auand [email protected]/t AuIncl. [email protected]/t Au


T-942: [email protected]/t Au [email protected]/t Au



T-942: [email protected]/t [email protected]/t [email protected]/t Au





T-921: [email protected]/t AuAnd [email protected]/t Au


T-910: 6m@ 5.3g/t AuT-922: [email protected]/t Au [email protected]/t Au










T-965: [email protected]/t Auincl. 1m@108g/t Au










T-1023: [email protected]/t AuIncl. [email protected] g/t Au







T-1029: [email protected] g/t Au





T-1043: [email protected] g/t Auand [email protected] g/t Au

Mined out

D+500

+600

T-134

T-153

Pampalo Ore Reserves and Mineral Resources(longitudinal projection)

Decline

Planned reserve(Endomines estimate)

SRK resource(2016 mining 100 000t)

Planned stopes

+700

D-zone resource(Endomines estimate)

D

Planned exploration driftand core drilling

Planned decline extension

Planned coredrilling

Planned exchaustventilation raise

Southern Cross greenstone belt vs Karelian Gold Line- Archaean (2.7 Ga) old gold critical greenstone belts

Gold exploration and production summaryUnits Ilomantsi

(KarelianGold Line)

CentralSouthern

CrossBelt length km 90 110Belt width km 0.5–10 0.5–15Claims coverage % <20 100Gold exploration since year 1986 1888Gold produced total oz 100 000 >10 000 000Gold produced in 2008 oz 0 157 147Gold mines in production 2 4Known reserves & resources oz 350 000 >2 000 000

Ilomantsi vs. Southern Cross greenstone belt

Data compiled by GSF / Dr P Eilu

KARELIAN GOLD RUSH 2015

Individuals, Universities,Groups, Geoscientists,Mathematicians, Otherprofessionals, Amateurs, etc.

IS A GLOBALEXPLORATIONCHALLENGE OPEN TOEVERYBODY:

http://goldrush.endomines.com/

http://louhigold.sito.fi/

Reshaping of Endomines AB– Selective Mining and exploration

Hedge closed and converted to a long term loanVery promising exploration results from the Pampalo DeepsRecent high grade discoveries will allow selective mining plan for 2016

Targeting only high grade areasReduced personnel ~30+ personReduced tonnage ~ 125 000 tpaRun the processing plant in campaigns 7-10 days /month

=> Cash Cost reduction well below expected actual gold prices

Focus on Pampalo Deeps area exploration and developmentTarget to increase resources and reservesBe prepared for expected gold price increase (2017-2018)Processing capacity 400 - 450 000 tpa

Karelian Gold Rush !41 20-Jan-16

Board of Directors, CEO

Staffan Simberg (b. 1949), Chairman of the BoardBoard member since 2011, Chairman of the Board since 2013, Chairman of the RemunerationCommittee, Member of the Audit Committee and the Nomination Committee.Studies at the Helsinki Technical University and MBA, IMD, Geneva.Current positions include: Board chairman in NEZ-Invest AB and Simberg & Partners AB. Boardmember in Elektrobit Oyj, Elektrobit Technologies Oy, Nordic Vehicle Conversion AB and SilvaGroup AB.Holdings in Endomines, own and related parties: 1 500 000 shares.Principal work experience: 20 years with Nokia Corporation, Member of the Advisory Board inLandis & Gyr AG, Industral adviser in Metso Oyj and Cargotec Oyj, Board chairman in MetsoPanelboard Oy and Board member in Infocare AB. Board advisor in Valmet Automotive.

Meg Tivéus (b. 1943), Board memberBoard member since 2012, Chairman of the Audit Committee.Master of Science in Business and Economics, Stockholm School of Economics.Current positions include: Board chairman in Arkitektkopia AB, Folktandvården i Stockholm AB,Björn Axen AB, Readly AB and Close AB. Board member in Swedish Match AB, Nordea FonderAB and Styrelseakademin AB.Holdings in Endomines, own and related parties: 10 000 shares.Principal work experience: CEO of Svenska Spel AB, Senior Vice President at Posten, VicePresident Holmen AB and Åhlens AB.

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Rauno Pitkänen (b. 1950), Board memberBoard member since 2010, Chairman of the Technical Committee, Member of the RemunerationCommittee.M.Sc (Geology, Mining and Metal Processing), Helsinki Technical University, Finland.Holdings in Endomines, own and related parties: 7 380 shares.Principal work experience: Senior manager positions at Sandvik Mining and Construction FinlandOy, Outokumpu Group and Tara Mines Ltd.

Stefan Månsson (b. 1951), Board memberBoard member since 2013, Member of the Audit Committee and the Technical Committee.Master of Science in Mining and Metallurgy, Royal Institute of Technology, Stockholm.Current positions include: Board chairman in smanson konsult AB, Board member NorthlandResources S.A. since 2013Holdings in Endomines, own and related parties: 0 shares.Principal work experience: Managing Director of Galmoy Mines Ltd and Zinkgruvan Mining AB,Chairman of the Board of the Irish Mining and Exploration Group, IMEG and of the SwedishMining Association, SGF, Chief Mine Geologist, Mine Manager and Production Manager at ABStatsgruvor, LKAB.

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Ann Zetterberg Littorin (b.1967), Board memberBoard member since 2015, Member of the Audit Committee.Degree of Master of Science in Business and Economics, University of Stockholm 1995Current positions include: Holdings in Endomines, own and related parties: 0 shares.Principal work experience: CFO positions in Private Equity operations and corporate acquisitions

Markus Ekberg (b. 1957), CEO of Endomines AB, Endomines Oy and Kalvinit Oy since 2009Current positions include: Board member in Kodal Minerals PLC; board member and deputychairman in FinnMin; Indirect part-owner, CEO and chairman of Tetra Minerals Oy; CEO andowner of Karelian Resource Service OyEurogeologistM.Sc (Geology and Mineralogy), Turku University, Finland. Qualified Person (Australian JORC andCanadian NI-43-101 stock exchange codes), Kvalificerad Person (Svemin/FinnMin)Principal work experience: 30+ years experience from international mining industry in Finland,Norway, Ireland and Australia,Holdings in Endomines, own and related parties: 180 000 shares, 800 000 options.

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Unique position for an exploration company to control mineral rightsof 40 km of coherent and prospective gold beltGreat potential for high grade deposits in the areaWell operating mine and processing plant in the center of the beltExperienced and efficient organizationSuccessful strategy of developing satellite minesStrong Social license to operate

Zero Harm HSE-policyStraightforward environmental permittingGood safety record

Long term commitment to local community development

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Endomines Summary

ONE TEAM – ONE GOALDETERMINED TO DELIVER

• Responsibility• Respect and appreciation• Safety and Zero Harm principle• Cooperation• Continuous development

Proposed rights issue - SEK 0.09/EUR 0.01 per share

Rights issue: Shares

Structure: One (1) existing share entitles to three (3) subscription rights. One (1)subscription right entitles to one (1) new share

Subscription price SEK: SEK 0.09 per share

Subscription price EUR: EUR 0.01 per share

Proceeds: Gross SEK 70.8 m, fully subscribed

Secured level: Rights issue is secured to 11.5 percent through subscriptionundertakings

Dilution 75 percent

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One (1) share onthe record date,December 21,2015 entitles tothree (3)subscriptionrights

One (1)subscription rightentitles tosubscription ofone (1) new shareat SEK 0.09/EUR 0.01

SEK 0.09/EUR 0.01

The rights issue structure

Indicative time schedule

Extraordinary General Meeting December 17, 2015Record date December 21, 2015Subscription period January 11-25, 2016Trading in subscription rights January 11-19 , 2016Board allocation meeting January 28 , 2016Proceeds distributed to Endomines Week 5 , 2016

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ONE TEAM – ONE GOALDETERMINED TO DELIVER

• Responsibility• Respect and appreciation• Safety and Zero Harm principle• Cooperation• Continuous development

Documents

Endomines AB (publ€¦ · 19th Jan 2016. 2 Disclaimer Statements in this presentation which are not purely historical facts, including without limitation statements regarding future