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C R E A T I N G A D I V E R S I F I E D M I D - T I E R B A S E M E T A L S C O M P A N Y

Creating a diversified mid-tier base metals company INVESTOR

PRESENTATION APRIL 25, 2016


Forward Looking Statements This presentation contains forward-looking statements and/or forward-looking information within the meaning of the United States Private Securities

Litigation Reform Act of 1995, and applicable Canadian securities laws. Forward-looking statements are frequently, but not always, identified by words

such as “expects,” “anticipates,” “believes,” “intends,” “estimated,” “potential,” “possible” and similar expressions, or statements that events, conditions or

results “will,” “may,” “could” or “should” occur or be achieved. Forward-looking statements are statements concerning the Nevsun’s and Reservoir’s

current beliefs, plans and expectations about the future including but not limited to the arrangement and related transactions, Nevsun’s commercial

production, Bisha’s future production of copper and related cash flows, and development of the Timok project and related costs. These statements are

by their very nature inherently uncertain. The actual achievements of the combined company or other future events or conditions may differ materially

from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, the risks that:

(i) the conditions to completion of the arrangement will not be satisfied, including approval by Reservoir's and Nevsun’s shareholders, court approval and

successful exercise by Reservoir of the ROFO; (ii) an event, change or other circumstance that could give rise to the termination of the arrangement

agreement will occur; (iii) the retention of employees and other personnel will be adversely affected by uncertainty surrounding the arrangement; (iv) the

companies will be unable to successfully integrate their operations following completion of the arrangement; (v) any of the assumptions in the historical

resource estimates turn out to be incorrect, incomplete, or flawed in any respect; (vi) the methodologies and models used to prepare the resource and

reserve estimates either underestimate or overestimate the resources or reserves due to hidden or unknown conditions, (vii) exploration activities or the

mine operations are disrupted or suspended due to acts of god, internal conflicts in the country of Eritrea or Serbia, unforeseen government actions or

other events; (viii) operations will be disrupted due to equipment or power failures, uncertainties in the copper minerology, metallurgical recoveries or

concentrate grades, or other or other events; (ix) Nevsun is subjected to any hostile takeover or other unsolicited attempts to acquire control of Nevsun;

or (x) are associated with the speculative nature of exploration activities, periodic interruptions to exploration, failure of drilling, processing and mining

equipment, the interpretation of drill results and the estimation of mineral resources and reserves, changes to exploration and project plans and

parameters and other risks are more fully described in the Nevsun’s Annual Information Form for the fiscal year ended December 31, 2015, which is

incorporated herein by reference. Nevsun’s and Reservoir’s forward-looking statements are based on the beliefs, expectations and opinions of

management on the date the statements are made, and neither Nevsun nor Reservoir assume any obligation to update such forward-looking statements

in the future, except as required by law. For the reasons set forth above, investors should not place undue reliance on Nevsun’s or Reservoir’s forward-

looking statements and the forward-looking information presented here.

Further information concerning risks and uncertainties associated with these forward-looking statements and Nevsun’s business can be found in

Nevsun’s Annual Information Form for the year ended December 31, 2015, which is available on the Company’s website (www.nevsun.com), filed

under Nevsun’s profile on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov) under cover of Form 40-F. Further information concerning risks and

uncertainties associated with the forward-looking statements related to Reservoir and its business can be found in Reservoir’s Management Discussion

and Analysis for the year ended November 30, 2015, which is available on the Company’s website (www.reservoirminerals.com) and filed under

Reservoir’s profile on SEDAR (www.sedar.com).

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http://www.nevsun.com

http://www.reservoirminerals.com


Transaction Highlights

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Strategic combination • Creating a diversified mid-tier base metals company

Consolidates 100% ownership in Timok Copper-Gold Project in Serbia • 100% owner and operator of the high grade Upper Zone

Timok development funding • Development is underpinned by Nevsun’s strong balance sheet and operating cash flows

Further upside • Significant exploration exposure in two prolific mining districts

Significant benefits for Nevsun and Reservoir shareholders


Term Sheet

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FUNDING

TRANSACTION

Nevsun provides funding to enable Reservoir to exercise the ROFO (US$135 million):

Private Placement: Nevsun subscribes for 19.99% of Reservoir at C$9.40/share (US$90.3 million)

Unsecured cash loan: US$44.7 million

CORPORATE

TRANSACTION

Nevsun to acquire 100% of the issued and outstanding shares of Reservoir

Reservoir shareholders to receive two Nevsun shares for each Reservoir share held

124% premium to Reservoir’s on March 2, 2016, the day prior to the ROFO notice

35% premium to Reservoir’s 20-day VWAP

Nevsun 67% and Reservoir 33% ownership of combined company

Combined company owns 100% of Timok’s Upper Zone and 60% (1) of the Lower Zone

BOARD Reservoir to have two representatives on Nevsun’s Board of Directors

OTHER TERMS

Lock up from Nevsun’s and Reservoir’s directors and officers

Major shareholders of Nevsun have expressed support for transaction

US$20 million reciprocal break fee

APPROVALS

Subject to required regulatory filings/approvals

Reservoir shareholder vote required (66 2/3% of votes cast threshold; Nevsun can vote its19.99%)

Nevsun shareholder vote required (50% threshold)

(1) pre-feasibility study (post-feasibility combined company will own 46% and Freeport 54%)


Benefits to Nevsun Shareholders

On strategy for diversification: delivers on our stated goal to diversify geographically

Attractive deployment of capital: Puts Nevsun’s cash and cash flow generation to use

in an attractive development project with a high projected return

High quality asset: The Upper Zone is a high grade copper-gold development project in

a historic mining jurisdiction, with excellent local and regional infrastructure

Increased growth potential: Upper Zone increases Nevsun’s growth profile, with further

upside potential from the Lower Zone

Strategic partner: forms strategic partnership with Freeport with a leading copper and

gold producer

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A stronger, more diversified and valuable platform for growth


Benefits to Reservoir Shareholders

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Expedited Development of Timok: Project to be expedited to production for benefit of all

stakeholders

Premium value: Premium of 124% since March 2, 2016; 35% premium to 20-day VWAP at April

22, 2016

Low risk option to exercise ROFO

Increases long-term exposure in Timok: new company will hold 100% interest of the Upper

Zone

Strong balance sheet and cash generation to fund Timok’s growth potential: exposure

to cash generated at Bisha and cash on Nevsun’s balance sheet

Strong operating team to advance Timok: demonstrated ability to develop and bring

production online, on time and under budget

Increase capital market profile: more share liquidity and institutional shareholder base

Participation in a diversified mid-tier base metals company


Serbia and Timok Infrastructure

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Serbia is a great country to build a mine:

• Working toward EU membership

• Long history of mining in Timok project area (Bor)

• Supportive federal government (pro foreign investment)

• Municipality with experienced & educated labour force

Timok

Project

Timok has all the characteristics for a successful development

Close proximity to existing mine

infrastructure: • Power

• Roads

• Rail

• Water

• Bor and Aurubis smelters

• Ports


Timok Project Upper Zone

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Upper Zone

Semi Massive Sulphide (“SMS”) high

sulphidation epithermal pyrite and copper sulphide

Subject of the April 2016 Reservoir PEA

Lower Zone

Extensive porphyry style copper-gold

mineralization below the Upper Zone

Block cave mining potential

Potential15-20 years from production

1. The cut-off grade used for the estimate is 0.75% Cu.

2. All figures are rounded to reflect the relative accuracy of the estimate.

3. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

4. Mineral Resource is given on 100% basis, currently 45% is attributable to Reservoir.

See detailed table of resources in Appendix

Inferred Mineral Resource

35 MT @ 2.9% Cu and 1.7 g/t Au

1.7 MT @ 13.5% Cu and 10.4 g/t Au

Large, high grade Upper Zone

Upper Zone Block Model Copper grade distribution

Indicated Mineral Resource


Timok JV Structure

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45% Upper Zone (55% Freeport)

45% Lower Zone (55% Freeport)


60.4% Lower Zone (39.6% Freeport)


46% Lower Zone (54% Freeport)

Current ROFO + Transaction (1) Post-Feasibility

Proforma Nevsun Ownership:

Transaction Consolidates 100% of the Timok Upper Zone

(1) Nevsun becomes project operator post ROFO and transaction


Nevsun’s Track Record of Success

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Depletion

Reserve

Reserve

0

5

10

15

Startup Dec 2015

Mine Life, years

B I S H A R E S E R V E L I F E +50%

Capital and operating delivery

Built and expanded Bisha on-time and under budget

over 3 phases

Deployed over $430 million in capital

Operated Bisha 5 years, delivering strong earnings

and cash flow

Financial delivery

5 years of dividend growth

Returned $130 million to shareholders

Growth delivery

Continuous reserve and resource growth at Bisha

Current reserves (effective Dec 31, 2015) detailed in 2015 AIF.

Qualified person is Anoush Ebrahimi, Ph.D. at SRK Consulting

Managing and Delivering Results – Development & Operations


Transaction Highlights

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Strategic combination • Creating a diversified mid-tier base metals company

Consolidates 100% ownership in Timok Copper-Gold Project in Serbia • 100% owner and operator of the high grade Upper Zone

Timok development funding • Development is underpinned by Nevsun’s strong balance sheet and operating cash flows

Further upside • Significant exploration exposure in two prolific mining districts

Significant benefits for Nevsun and Reservoir shareholders


Thank You.

Further information at: www.nevsun.com

www.reservoirminerals.com

Media Inquiries Longview Communications

Trevor Zeck

+1 604 694-6037

[email protected]

Nevsun Resources Scott A. Trebilcock

Chief Development Officer

+1 604 623-4700

[email protected]

Reservoir Minerals Chris MacIntyre

VP, Corporate Development

+1 416 346-7660

[email protected]


Cukaru Peki Mineral Resource

1. The cut-off grade used for the estimate is 0.75% CuEq.

2. All figures are rounded to reflect the relative accuracy of the estimate.

3. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

4. The Mineral Resource is given on 100% basis, currently 45% is attributable to Reservoir.

5. Qualified Person: is Martin Pittuck, Corporate Consultant (Mining Geology) from SRK Consulting

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Arsenic

% CuMetal (Cu

Mt)Au g/t

Metal (Au

Moz)% As

>10.0 1.2 15.5 0.2 12.4 0.5 0.21

0.75-10.0 0.5 8.2 0.04 5.1 0.08 0.27

>10.0 1.2 13.2 0.2 10.5 0.4 0.20

0.75-10.0 33.8 2.5 0.8 1.4 1.5 0.17

Total - Indicated 1.7 13.5 0.2 10.4 0.6 0.23

Total - Inferred 35.0 2.9 1.0 1.7 1.9 0.17

Copper Gold

Inferred

Indicated

CategoryGrade Category

%Cu

Tonnes

(Mt)

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