ASX Announcement 

16 May 2016 

Dark Horse Resources at Latin America Down Under 

The Board of Directors of Dark Horse Resources Limited (the Company, ASX: DHR) will be presenting at the Latin America Down Under conference in Perth from the 17th and 18th May.   Location: Pan Pacific Hotel, Perth.   Please see following the presentation to be presented by Managing Director‐ David Mason of Dark Horse Resources Limited.    

 On behalf of the Board Mr Karl Schlobohm Company Secretary   For further information contact:  

Mr Nicholas Mather          Pru Maclean Chairman, Dark Horse Resources Ltd      Investor Relations, Dark Horse Resources Ltd Ph: 07 3303 0650           Ph: 07 3303 0650  About Dark Horse Resources:  

Since  listing  on  the Australian  Stock  Exchange  in  2011, Dark Horse  Resources  (formerly Navaho Gold)  has slowly evolved  into a diversified exploration company, with  interests  in gold projects  in  the USA, numerous mineral  licences  in Australia, oil and gas projects  in Australia  (held via NavGas Pty Ltd), and coal projects  in Argentina.  

The Company’s coal projects in Argentina consist of the Marayes project (San Juan province) and the Nirihuau project  (Rio  Negro  province).    Both  projects  are  located  within  close  proximity  to  access  to  existing  rail networks with links to industrial areas and ports.  

The Company had previously signed an MOU with Sunset Power Pty Ltd (headed by Mr Trevor St Baker) for the development of a thermal, mine mouth power station at the Nirihuau project in Rio Negro, to supply low‐cost base‐load power to the local region and into the main Argentinean electricity supply network which has been terminated by mutual agreement.   The Company will now pursue discussions with other parties  to advance this project. 

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ASX: DHR 1

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RELIABILITY:

Help alleviate Power shortfalls in Argentina

Unreliable base load power

Compliment the pressured hydro system (CAPEX maintenance and availability problems) and future wind development costs and availability.

ENVIRONMENT:

Address Clean Power requirements of the Paris Accord 2015.

Potential to reduce Rosario region thermal generation emissions- Carbon, Sulphur and Nitrogen.

ECONOMIC:

Broaden the fuel mix, and reduce the cost of thermal power.

An indigenous Argentinian fuel supply

Assist the Government in the early reduction of energy subsidies and subsequently the Argentinian budget deficit.

• Pico Power can save Argentina up to $375 million / annum in power generation costs

• 8.5% of Current account deficit and 15% of Government budget

Create employment, infrastructure and economic stimulus within Rio Negro province and Argentina.

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Buenos Aires

51%

Santa Fe, Entre Rios

12%

Cordoba, San Luis

9%

La Pampa, Neuquen, Rio

Negro

4%

Mendoza, San Juan

6%

Chaco, Corrientes,

Formosa, Misiones

6%

Chubut, Santa Cruz

4%

Catamarca, Jujuy, La Rioja,

Salta, Santiago del Estero,

Tucuman

8%

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32,559 MW

26,047 MW 25,380 MW

-6,512 MW

-

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Installed Available Peak demand

The current system is vulnerable to demand growth and capacity failure

Unserviceable or Unavailable

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• Drainage of Forex Reserves (↑ current account deficit)• Energy Subsidies 50% of overall fiscal deficit

5

• ↑Energy Imports• ↑Dependence on

Natural Gas Imports

Deficit is largely power costs

Government budget right hand scaleCurrent Account left hand scale

Approximately 500 Pjs/year worth $5 billion

• Pico Power can save Argentina up to $375 million / annum in power generation costs –

• 8.5% of Current account deficit and 15% of Government budget For

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Aluar Aluminium Smelter

Rosario Industrial Area

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Source: eia.gov/beta

0%

20%

40%

60%

80%

100%

120%

Argentina Brazil Canada Japan United

Kingdom

United

States

Colombia Germany India Australia China Mexico

Various Countries Fuel Mix used for Power Generation

Coal Natural Gas Oil & Derivatives Nuclear Petroleumn BioMass Uranium Other Gases Hydro Renewable Other

All countries mentioned in this Graph have signed the Paris Accord.

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$73

$124

$210.00

$20

$110

$150

$60

$330

$450

$-

$100

$200

$300

$400

$500

$600

$700

Coal Gas Distillate Average Hydro * Average Wind * Average Solar*

TOTAL GENERATION COST per 1 MWh $USD

Price / Mwh 33% Availability

*The availability factor of Wind, Solar and Hydro power plants depends on the wind blowing, the sun shining, and the snowand rain falling. Wind, Solar and Hydro Power are not efficient base load power suppliers and are only available approximately33% of the time.

Renewables

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Coal has a 90% efficiency factor

Gas has 80% efficiency factor

Hydro and Wind Power have 33% efficiency factor

Nuclear has 80-90% efficiency factor

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Note that the carbon emission cost of coal over non-fossil renewables on an Advanced Ultra Supercritical Power Station is on the basis of US Carbon cost settings likely to be equivalent of approximately $14/MWh however the extra carbon cost over LNG gas is only $3.52 and over diesel fuel its only $2.23

$24

$80

$56

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

Coal Gas

FUEL COST to Generate 1 Mwhour $USD

Saving Coal to Gas

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**Cost of LNG, imported piped gas and distillate carbon emissions does not yet include production and transport and are estimated to be 10% higher.

CommodityUS$ Cost per

Unit

Unit Energy

Content GJ

$US Cost / GJ

CO2

Emissions kg/GJ

**

Fuel Cost/MWh

CO2

Emission cost/MWh

Total Fuel Cost/MWh

Coal US$/Tonne

1 tonne 70 25 $2.80 86* $24.00* $13.60 $37.60

Gas LNG US$/GJ

Gigajoule 10 1 $10.00 59 $80.00 $10.78 $90.78

Natural Gas US$/MMBTUMmbtu 7.5 1.05 $7.87 62 $63.00 $11.31 $74.31

Oil - Distillate US$/Barrel

1 barrel 117.2 5.86 $20.00 75 $180.00 $11.99 $191.99* Ultra Supercritical Plant

Ultra Supercritical Coal fired Power station

8.6GJ/MWh (42% efficiency)

Standard Combined Cycle Gas Station

8GJ/MWh (45% efficiency)

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10%12%

19%

2%

14%

25%

15% 14%

21%

10%

16%

45%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

Pico Quemado AustralianPrimary

AustralianSecondary

Indonesian South Africa India (domestic)

Ash

%

Cal

ori

fic

Val

ue

(kca

l)

Calorific Value (kcal) Ash %

Internationally Traded Coal Quality

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Develop the Pico Quemado Advanced Ultra-Supercritical 750-1,500MW mine mouth coal fired power station in Rio Negro Province.

Provide inexpensive and clean base load electricity to the Argentine national power grid.

Deliver Economic savings of up to $375m ( $50/MWh ).

• Pico Power can save Argentina up to $375 million / annum in power generation costs –

• 8.5% of Current account deficit and 15% of Government budget

Compliment Argentine’s renewable energy targets.

Utilise the large and indigenous Pico Quemado thermal coal resources as the primary fuel.

Supported by the Rio Negro government.

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Dark Horse Resources Limited pursuant to an Exploration and option to purchase Agreement earning up to 75% of the Nirihuau Basin with TrendixSA in Rio Negro Province.

The Nirihuau Basin has potential for steaming coal suitable for a variety of thermal and coking applications particularly power generation.

Dark Horse intends to join with a Developing Partner to develop an Advanced Ultra-Supercritical Power Station. The Agreement is yet to be negotiated.

The Power Project will be owned 50/50 by Dark Horse and the Developing Partner.

The Project will be funded by a mix debt funding Forward Power Sales Facilities andGeneration Equipment Manufacturers and private investment

Equipment Supplier Funding will come from recognised power industry generation equipment manufacturers.

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PPA with Argentine Power

Authority

Operational Surplus 50% DHR

50% PartnerUS$ 400M

Supply Power to Argentina

50%

Debt FundsUS$ 1,600M

500KV Transmission lines

50%

750-1500 MW Power Station

Up to 75%

Pico Quemado coal mineRio Negro Province Argentina

Fuel Purchase Agreement

Power StationDeveloper

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Alicura Hydro Plant 98km to Proposed Power Project.

Start of 500 kv lines to Buenos Aires.

Aluar Aluminium SmelterPuerto Madryn>>

Futaleufu Hydro Plant 181 km from Proposed Power Plant.Start of 330 Kv lines to Puerto Madrynand Aluminium Smelter.

Proposed Power Plant and PQ Mine Site

Buenos Aires Demand 69,360GWh

in 2015

Proposed Power Plant and mine site with existing infrastructure and power distribution options

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Area enlarged in previous slide

Buenos AiresDemand 69,360GWh in 2014

Puerto Madryn

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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Business case to Argentine

Authorities

Pico Quemado Coal exploration

and PFS

Power Project Concept design

and financial model

Power Purchase Agreement

(PPA) Term Sheet

Power Station Feasibility and

design

PPA & FSA Finalisation and

Execuation

Project Financing and Financial

Close

Engineering Procurement and

Construction (EPC)

Beginning of Commercial

Operation

2019Power ProjectTimetable

2016 20182017

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$650

$650

$200

$300

$100 $100

Cost of Construction $ Million

Boilers

Turbines

Transmission

Balance of Plant

EPCm construction and fees

Coal Mine and Transport facilities

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$1,300 $100

$200

$400

Debt and Equity Funded $ Million

Debt: Export credit agencies

Debt: EPCm Contractor

Debt: Other Banks

Equity: Discounted forward power

sales agreements and other

stakeholder arrangements

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Located in western part of Rio Negro, northern Patagonia.

DHR and Trendix JVhave tenure over the Tertiary synclinal Nirihuau Basin containing the southern Pico Quemado deposit and northern Chenqueniyeu.

4 main seams with up to 12m aggregate coal thickness dipping 10-30 degrees over a 22kms strike length.

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Pico Quemado coal quality:

Moisture 2 - 3%

Ash 10 - 25%

Volatiles 24 - 33%

Energy 6000 – 7000 Kcals/kg

Sulphur 0.2 - 0.6%

Nitrogen gases - low

Efficient and cost effective, best practice, open cut and underground mining technology.

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3D VIEW LOOKING NORTH – 4 COAL SEAMS AND HISTORICAL DRILLING

Seam 1 - Lower Pack

Seam 2 - Lower Pack

Seam 3 - Upper Pack

Seam 4 - Upper Pack

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Non- Executive Chairman - Nick Mather

Mr Mather’s area of experience and expertise is the financing and development of unrecognised resource exploration opportunities. He has been anexecutive and investor in the junior resource sector at all levels for more than 35 years and in that time has been instrumental in the delivery of majorresource projects resulting in nine (9) corporate transactions delivering over five (5) billion dollars to shareholders. Nick is Managing Director and CEOof DGR Global, a worldwide resources project generator and the major shareholder of several Petroleum, Copper, Iron, Zinc and Coal companies.

Executive Director - David Mason

Mr Mason has a broad business, corporate and mining background achieved through working in the exploration and mining industry for 35 yearsthroughout Australasia, Asia and Africa. David is a Director of Intra Energy Corporation Limited (ASX:IEC), a coal producer in East Africa. Prior to this,David had roles as Managing Director of Overseas & General Limited (ASX:OGL) an Indonesian mining company, and Operations Director ofHaddington Resources (now Altura Mining, ASX:AJM) a diversified resource company, which took over the resource investment and mining servicecompanies of Minvest International, a group he co‐founded and managed. David was formerly General Manager of the Swabara Group, whichdeveloped the Adaro Indonesia coal mine, the MHU coal mine, a suite of Indonesian exploration assets and mining service companies.

Non- Executive Director - Neil Stuart

Mr Neil Stuart is a highly experienced exploration geologist with over 40 years of experience in the minerals industry. Earlier in his career, he workedwith Utah Development Company (for uranium base metals and coal) with activity in all states of Australia, Kenya, Morocco, South Africa, Madagascarand Indonesia, and then managed a highly successful coal exploration program for Marathon Petroleum Australia Ltd. Since 2000, he has been heavilyinvolved in project delineation and acquisition in Australia and Argentina. As a founding Director of Oroplata Ltd, Mr Stuart was instrument inacquiring the highly prospective Cerro Negro Epithermal Gold Project from MIM Holdings Ltd and advancing the project until the company mergedwith Andean Resources Ltd, which was itself taken over by the large Canadian miner, Goldcorp in 2010 for $3.7 billion. Mr Stuart was also a co-founder of ASX and TSX listed Orocobre Limited, which is now developing the Salar Olaroz lithium project in north-west Argentina.

Non- Executive Director - Brian Moller

Brian Moller is a corporate partner in the Brisbane based law firm HopgoodGanim. He was admitted as a solicitor in 1981 and has been a partnersince 1983. He practices almost exclusively in the corporate area with an emphasis on capital raising, mergers and acquisitions. He holds an LLB Honsfrom the University of Queensland and is a member of the Australian Mining and Petroleum Law Association. Mr Moller acts for many public listedresource and industrial companies and brings a wealth of experience and expertise to the board particularly in the corporate regulatory andgovernance areas. Mr Moller is currently a Non-Executive Director of ASX listed DGR Global Limited Limited, Platina Resources Limited and AusTinMining Limited, and SolGold plc, which is listed on the London Stock Exchange (AIM).

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Since listing on the Australian Stock Exchange in 2012 as Navaho Gold Limited, the company has evolved into a diversified exploration company, with interests in gold projects in the USA, numerous mineral licence applications in Australia, oil and gas project interests in Australia, and coal project interests in Argentina.

Dark Horse Resources coal projects in Argentina consist of Marayes project and the Pico Quemado project (JV with TrendixMining). DHR has exposure to shallow coal assets in Tertiary and Triassic aged formations on the eastern side of the Andes in Argentina. Both projects are located within close proximity to access to existing rail networks with links to industrial areas and ports.F

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This presentation is not a prospectus, disclosure document or offering document under Australian law or under any other law. It is for informational purposes only. This document does not constitute, and should not be construed as, an offer to issue or sell or a solicitation of an offer or invitation to subscribe for, buy or sell securities in Dark Horse ResourcsesLimited (DHR).

Any material used in this presentation is only an overview and summary of certain data selected by the management of DHR. The presentation does not purport to contain all the information that a prospective investor may require in evaluating a possible investment in DHR nor does it contain all the information which would be required in a disclosure document prepared in accordance with the requirements of the Corporations Act and should not be used in isolation as a basis to invest in DHR. Recipients of this presentation must make their own independent investigations, consideration and evaluation of DHR. DHR recommends that potential investors consult their professional advisor/s as an investment in DHR is considered to be speculative in nature.

Statements in this presentation are made only as of the date of this presentation unless otherwise stated and the information in this presentation remains subject to change without notice. Reliance should not be placed on information or opinions contained in this presentation.

To the maximum extent permitted by law, DHR disclaims any responsibility to inform any recipient of this presentation on any matter that subsequently comes to its notice which mayaffect any of the information contained in this document and presentation and undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in or derived from this presentation or any omission from this presentation or of any other written or oral information or opinions provided now or in the future to any person.

To the maximum extent permitted by law, neither DHR nor, any affiliates, related bodies corporate and their respective officers, directors, employees, advisors and agents (RelevantParties), nor any other person, accepts any liability as to or in relation to the accuracy or completeness of the information, statements, opinions or matters (express or implied)arising out of, contained in or derived from this presentation or any omission from this presentation or of any other written or oral information or opinions provided now or in the future to any person.

This presentation contains certain “forward-looking statements”. The words “expect”, “should”, “could”, “may”, “predict”, “outlook”, “guidance”, “plan” and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of DHR and the Relevant Parties, that may cause actual results to differ materially from those predicted or implied by any forward-looking statements. DHR makes no representations as to the accuracy or completeness of any such statement of projections or that any projections will be achieved and there can be no assurance that any projections are attainable or will be realized or that actual outcomes will not differ materially from any forward-looking statements.

Competent Persons Statement

The information herein that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Neil Stuart, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Neil Stuart is a Director of Dark Horse Resources Ltd.

Mr Stuart has more than five years experience which is relevant to the style of mineralisation and type of deposit being reported and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves’ (the JORC Code). This public report is issued with the prior written consent of the Competent Person(s) as to the form and context in which it appears.

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