South32 Royalty Portfolio Acquisition
November 2020| ELE
Forward Looking Statements
2
Market and Industry Data
This corporate presentation includes market and industry data and forecast that were obtained from third-party sources, industry publications and publicly available information. Third-party sources generally state that
the information therein has been obtained from sources believed to be reliable, but there can be no assurances as to the accuracy or completeness of included information. Although management believes it to be
reliable, management has not independently verified any of the data from third-party sources referred to in this presentation or analyzed or verified the underlying studies or surveys relied upon or referred to by such
sources, or ascertained the underlying economic assumptions relied upon by such sources.
Forward-Looking Statements
This corporate presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995, (together, “forward-looking statements”), concerning the business, operations and financial performance and condition of the Company. Forward-looking statements include, but
are not limited to, statements with respect to the future price of gold, the estimation of mineral reserves and mineral resources; the realization of Mineral Reserve estimates; and the timing and amount of estimated
future production. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,”
“forecasts,” “intends,” “anticipates” or “does not anticipate,” “believes,” “projects” or variations of such words and phrases or state that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,”
“occur” or “be achieved.” Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements,
including, but not limited to, volatility in the price of gold, discrepancies between anticipated and actual production by companies in our portfolio, risks inherent in the mining industry to which the companies in our
portfolio are subject, regulatory restrictions, the impact of the current COVID-19 pandemic on the companies in our portfolio, activities by governmental authorities (including changes in taxation), currency fluctuations
and the accuracy of the mineral reserves, resources and recoveries set out in the technical data published by the companies in our portfolio. Although management of the Company has attempted to identify important
factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on
forward-looking statements. The Company cautions readers not to place undue reliance on forward-looking statements, as forward-looking statements involve significant risks and uncertainties. Forward-looking
statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. The
Company does not undertake to update any forward-looking statements except in accordance with applicable Canadian securities laws. Readers are directed to the Company’s Filing Statement filed under the
Company’s profile on SEDAR (www.sedar.com) for a complete list of applicable risk factors.
Investors are advised that National Instrument 43-101 Standards for disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators requires that each category of Mineral Reserves and Mineral
Resources be reported separately. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
JORC Code
Certain Resource and Reserve estimates covering properties related to certain mining assets in this corporate presentation have been prepared in reliance upon the JORC Code. Estimates based on JORC Code are
recognized under NI 43-101 in certain circumstances. In each case, the Mineral Resources and Mineral Reserves included in this presentation are based on estimates previously disclosed by the relevant property owner
or operator, without reference to the underlying data used to calculate the estimates. Accordingly, the Company is not able to reconcile the Resource and Reserve estimates prepared in reliance on JORC Code with that
of CIM definitions. The Company previously sought confirmation from its Qualified Person who is experienced in the preparation of Resource and Reserve estimates using CIM and JORC Code, of the extent to which an
estimate prepared under JORC Code would differ from that prepared under CIM definitions. The Company was advised that, while the CIM definitions are not identical to those of JORC Code, the Resource and Reserve
definitions and categories are substantively the same as the CIM definitions mandated in NI 43-101 and will typically result in reporting of substantially similar Reserve and Resource estimates.
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources
This corporate presentation uses the terms “measured”, “indicated”, and “inferred” Mineral Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the
United States Securities and Exchange Commission does not recognize these terms. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, as to their economic and legal feasibility. It
cannot be assumed that all or any part of an inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred Mineral Resources mat not form the basis of feasibility or
other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are
also cautioned not to assume that all or part of an inferred Mineral Resource exist or is economically or legally mineable.
Qualified Person
Richard Evans, FAusIMM, is Senior Vice President, Technical for the Company and a qualified person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the
scientific and technical disclosure contained in this presentation.
| ELE
South32 Royalty Portfolio Acquisition
3
• Acquisition of three high quality gold royalties in Western
Australia from South32 for US$40m in cash and US$15m in
Elemental Equity
• Karlawinda is a transformative asset for Elemental: 2% NSR
royalty with first gold expected Q2/2021, targeting annual
production of 110,000 – 125,000oz over the long term, with
upside potential in the medium term
• Significant cash flow from mid-2021 – expected to
approximately double existing revenue alongside further
growth from 2022
• Re-weights Elemental to Western Australia – a tier 1 jurisdiction
• Elemental welcomes South32 as a cornerstone shareholder
• Strong support from existing shareholders, new investors, and
US$25 million Term Loan with Sprott Resource Lending
Kwale4%
Mt Pleasant1%
Mercedes4%
Wahgnion17%
Amancaya19%
Karlawinda42%
Laverton13%
Kwale8%
Mt Pleasant2%
Mercedes10%
Wahgnion38%
Amancaya42%
Kenya2%
Chile17%
Australia6%
Burkina Faso60%
Mexico15%
Kenya1%
Chile7%
Australia60%
Burkina Faso25%
Mexico7%
• Elemental Royalties’ valuation now underpinned by Australian gold assets
Three Australian Gold Royalties
4
Elemental has agreed to acquire the South32 Royalty Portfolio, comprising gold royalties in Western Australia with near term production
• Karlawinda – 2% Net Smelter Royalty
─ Operator: Capricorn Metals (ASX: CMM)
─ Development Stage: Construction
─ Market Cap(1): US$433m
─ Life of Mine: 12 years
─ First Production: H1/2021
─ Targeted Production: 110-125kozpa
• Laverton – 2% Gross Revenue Royalty
─ Operator: Focus Minerals (ASX: FML)
─ Development Stage: Brownfield Restart
─ Market Cap(1): US$51m
─ First Production: Estimated 2022
• Western Queen – A$6-20/oz Royalty
─ Operator: Rumble Resources (ASX: RTR)
─ Development Stage: Advanced Exploration
─ Market Cap(1): US$50m
• Material revenue contributions from 4 mines from 2021, 6 from 2022
Evolution of NAV by Country
Evolution of 2022E Revenue Split by Royalty
1 S&P Market Intelligence as of November 20, 2020, Company Filings, and Elemental Estimates
5
The South32 Royalty Portfolio acquisition provides the catalyst for a material re-rating
Source: S&P Capital IQ, *Elemental Estimates: Gold Price US$1,900/oz Q4/2020, US$1,850/oz 2021, US$1,800/oz thereafter. Assumes first production from Karlawinda in 2021, Laverton in 2022 and Western Queen in 2023.
1. Equity calculations assume a C$12m private placement at C$1.50/share, 13,065,100 shares issued to South32, and 653,255 shares issued to Sprott Resource Lending. 1.31 CAD:USD
2. Estimate following transaction completion
Current Elemental Shares Outstanding (m) 44.5
South32 Consideration Shares1 (m) 13.1
Private Placement1 (m) 8.7
Pro Forma Shares Outstanding (m) 66.2
Share Price (C$/share) 1.50
Pro Forma Market Capitalisation (US$m) 76.0
Net Cash/(Debt)2 (US$m) (20.7)
Pro Forma Enterprise Value (US$m) 96.7
A Transformational Combination
Small-Mid Cap Gold Royalty Universe (2020E Revenue, US$m) Pro Forma Capitalisation
MetricsElemental
Today
Elemental
Pro FormaChange
# Royalties 6 9 ↑ 50%
Market Cap US$51m US$76m ↑ 49%
Enterprise Value US$41m US$97m ↑ 139%
NAV* US$43m US$74m ↑ 72%
2022E Revenue* US$5.4m US$11.8m ↑ 121%
1.13.1 3.5
5.2
11.8
24.8
42.9
Vox Metalla Ely Elemental Elemental2022E
Nomad Maverix
Acquisition moves
Elemental into Mid Cap
Royalty Universe
Existing
Institutions
22.8%
Directors and
Management
17.5%
HNW/Retail
26.9%
New Equity
13.1%
South32
19.7%
Transformational Revenue Growth
6
Addition of South32 Royalty Portfolio gives Elemental a pathway beyond US$10m Annual Revenue by 2022
Source: Elemental Estimates. Gold Price US$1,900/oz Q4/2020, US$1,850/oz 2021, US$1,800/oz thereafter. Assumes first production from Karlawinda in 2021, Laverton in 2022 and Western Queen in 2023
0.4
1.4
2.4
5.2
7.9
11.8
14.5
-
2
4
6
8
10
12
14
16
2017 2018 2019 2020 2021E 2022E 2023E
Reven
ue (
US$m
)
Kwale Amancaya Mt Pleasant
Wahgnion Mercedes Karlawinda
Laverton Western Queen
C$0.50
C$1.00
C$1.50
C$2.00
2017 2018 2019 2020
MERCEDES
1.0% NSR
FROM JULY 2022
AMANCAYA
2.25% NSR
WAHGNION
1.0% NSR
2
3
1
4
KWALE
0.25% GRR
Corporate Timeline
7
South32 Royalty Portfolio is Elemental’s 4th transformational acquisition, and 1st after TSX-V listing
LAVERTON
2.0% GRR
KARLAWINDA
2.0% NSR
WESTERN
QUEEN
A$6-20/OZ
South32 Royalty
Portfolio
South32 Royalty
Portfolio
LAVERTON
2.0% GRR
KARLAWINDA
2.0% NSR
WESTERN
QUEEN
A$6-20/OZ
Upgraded Elemental Royalties Portfolio
8
WAHGNION
1.0% NSR
MERCEDES
1.0% NSR
FROM JULY 2022
AMANCAYA
2.25% NSRKWALE
0.25% GRR
PANTON
0.5% NSR
MT PLEASANT
A$10/OZ OR
5% NPI
Existing Principal Royalties Other Royalties Management and BoardS32 Royalties
The addition of three Australian gold royalties enhances and diversifies the Elemental Royalties Portfolio
Kwale4%
Amancaya14%
Mt Pleasant1%
Wahgnion16%
Mercedes3%
Karlawinda47%
Laverton15%
9
NAV – Contribution by Asset (% of total) NAV – Contribution by Country (% of total)
South32 Royalty Portfolio acquisition will significantly increase diversification within the portfolio, increase average mine life and lower geopolitical risk, increasing the overall attractiveness and rating of the pro forma business
Key Assets - Average Mine Life (Years)2022E Revenue by Asset (%)
Kenya2%
Chile17%
Australia6%
Burkina Faso60%
Mexico15%
Kenya1%
Chile7%
Australia60%
Burkina Faso25%
Mexico7%
Kwale9%
Amancaya37%
Mt Pleasant3%
Wahgnion42%
Mercedes9%
Wahgnion57%
Amancaya18%
Mercedes16%
Other9%
Source: Elemental Assumptions. Mine life assumptions for Amancaya, Mercedes, and Wahgnion from Canaccord Research
Karlawinda39%
Wahgnion22%
Laverton20%
Amancaya7%
Mercedes6%
Other6%
0
2
4
6
8
10
12
14
16
Aman. Merc. Wahg. Aman. Merc. Wahg. Karl. Lave.
ELE ELE Pro Forma
Value Creation + Increased Diversification
1.52.4
4.54.0
5.2
1.5
6.5
7.9
1.5
2.4
6.0
10.5
13.1
2
4
6
8
10
12
14
16
2019 2020 2021E 2022E 2023E
Elemental Elemental PFUS$m
The South32 Royalty Portfolio will provide a material revenue contribution from 2021, expanding margins after accounting for Elemental’s low overheads. Increased scale is expected to increase funding opportunities and facilitate future growth
Enhanced Financial Returns and Scale to Facilitate Growth Options
10
Revenue1 (US$m) Adjusted EBITDA2 (US$m) EBITDA Margin (%)
↑ 178% ↑ 447%
1. Gold Price US$1,900/oz Q4/2020, US$1,850/oz 2021, US$1,800/oz thereafter. Assumes first production from Karlawinda in 2021, Laverton in 2022 and Western Queen in 2023
2. Adjusted EBITDA is calculated as Earnings before Interest, Tax, Depreciation, Amortisation, and unusual non-recurring items including RTO expenses and may not relate to underlying operating performance of the Company
2.4
5.25.8
5.4
6.6
2.1
6.5
7.9
2.4
5.2
7.9
11.8
14.5
2
4
6
8
10
12
14
16
2019 2020 2021E 2022E 2023E
Elemental Elemental PFUS$m
71%74%
77% 75%80%
6%14%
11%
71%74%
83%
89%91%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2019 2020 2021E 2022E 2023E
Elemental Elemental PF
Project
Location: Pilbara, WA
Operator: Capricorn Metals Ltd
ASX: CMM
Market Capitalisation US$433m
Commodity: Gold
Mine Type: Open pit
Stage: Construction
Targeted Production: 110-125koz Au
Mine Life:
(Reserves only)12 years
Royalty
Royalty: 2% NSR
Production: Commissioning Q1‘21, First Pour Q2 ‘21
Reserves & Resources
Reserves: 1.2Moz @ 0.9 g/t Au
Resources (Ind): 1.7Moz @ 0.8g/t Au
Resources (Inf): 0.4Moz @ 0.7g/t Au
11
Source: CMM ASX Release ‘Karlawinda Gold Project Ore Reserves Increase to 1.2MOz’ dated April 17, 2020 available on the Company’s website at www.capmetals.com.au and ASX at www.asx.com.au Mineral Reserves are included in Mineral Resources.
Market Capitalisation from Capital IQ as of November 20, 2020. Mineral Reserve and Resource Statement in Appendix. Estimated production and revenue based on 59koz Au produced in 2021 at a US$1,850/oz gold price and 140koz Au produced in
2022 at a US$1,800/oz gold price
South32 Royalty Acquisition: Karlawinda
Project
Location: Yilgarn, WA
Operator: Focus Minerals Ltd
ASX: FML
Market Capitalisation US$51m
Commodity: Gold
Mine Type: Open pit & underground
Stage: Feasibility (Stage 1 PFS due December 2020)
Estimated
Production:40-120kozpa Au
Royalty
Royalty: 2% GRR
Production: Stage 1 Open Pit, estimated 2022
Reserves & Resources1
Resources (M&I): 0.49Moz @ 2.1g/t Au
Resources (Inf): 0.91Moz @ 4.7g/t Au
South32 Royalty Acquisition: Laverton
12
Source: FML ASX release ‘Beasley Ck Resource Grows by 29pc’ dated August 20, 2020 and FML Corporate Presentation dated February 18, 2020 available at the Company’s website at www.focusminerals.com.au and ASX at www.asx.com.au
*Reserves and Resources within the royalty area. Mineral Reserves are included in Mineral Resources. Market Capitalisation from Capital IQ as of November 20, 2020. Mineral Reserve and Resource Statement in Appendix
Estimated production and revenue based on Elemental estimates of 43koz Au produced in 2022 and 91koz Au produced in 2023 at a US$1,800/oz gold price
Project
Location: Yilgarn, WA
Operator: Rumble Resources Ltd
ASX: RTR
Market Capitalisation US$50m
Commodity: Gold
Mine Type: Open pit & underground
Stage: Advanced Exploration
Estimated Production: 25-50kozpa Au
Royalty
Royalty: A$6-20/oz + 2% non Au
Estimated Production: 2023+
Reserves & Resources
Resources (M&I): 0.03Moz @ 3.5g/t Au
Resources (Inf): 0.09Moz @ 4.0g/t Au
13
Source: Monax Mining Ltd ASX: MOX release ‘Western Queen Mineral Resource’ dated January 1, 2018 available at ASX at www.asx.com.au
Market Capitalisation of Rumble Resources Ltd from Capital IQ as of November 20, 2020. Mineral Reserve and Resource Statement in Appendix
Estimated production and revenue based on 43koz Au produced in 2022 at a US$1,800/oz gold price and 91koz Au produced in 2023 at a US$1,800/oz gold price
South32 Royalty Acquisition: Western Queen
Appendix 1 Asset Information
Project
Location: Burkina Faso
Operator: Teranga Gold
TSX: TGZ
Market Capitalisation US$1.8bn
Commodity: Gold
Mine Type: Open pit
Stage: Production
2020E Production: 150-165koz Au
Mine Life:
(Reserves only)11 years
Royalty
Royalty: 1% NSR
Deal Date: January 2020
YTD 2020 Revenue: US$1.94m
Reserves & Resources
Reserves: 1.55Moz @ 1.59 g/t Au
Resources (M&I): 2.37Moz @ 1.49g/t Au
Resources (Inf): 0.24Moz @ 1.41g/t Au
Portfolio: Wahgnion
15
Source: NI 43-101 Technical Report on the Wahgnion Gold Operations dated July 31, 2019 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com.
Mineral Reserves are included in Mineral Resources. Market Capitalisation from Capital IQ as of November 20, 2020. Mineral Reserve and Resource Statement in Appendix
2020 estimated production and revenue based on production guidance, published on August 8, 2020, on Teranga’s website at a US$1,900/oz gold price
Project
Location: Chile
Operator: Austral Gold Ltd
ASX: AGD
Market Capitalisation US$85m
Commodity: Gold & Silver
Mine Type: Open pit & Underground
Stage: Production
2019 Production: 56koz Au, 527koz Ag
Mine Life:
(Reserves only)
2 years, ongoing exploration for Resource
conversion and new prospects in royalty area
Royalty
Royalty: 2.25% GRR
Deal Date: June 2018
2019 Revenue: US$1.7m
Reserves & Resources
Reserves: 102koz Au @ 6.3g/t Au, 470koz Ag @ 29g/t Ag
Resources (M&I): 171koz Au @ 8.8g/t Au, 748koz Ag @ 38g/t Ag
Resources (Inf): 140koz Au @ 5.9g/t Au, 426koz Ag @ 18g/t Ag
Portfolio: Amancaya
16
Source: Austral Gold Limited’s 2019 Annual Report dated March 5, 2020. The report is prepared in accordance with NI 43-101 and is available on the Austral Gold’s website at www.australgold.com and SEDAR at www.sedar.com
Mineral Reserves are included in Mineral Resources. Market Capitalisation from Capital IQ as of November 20, 2020. Mineral Reserve and Resource Statement in Appendix
Project
Location: Mexico
Operator: Premier Gold Ltd
TSX: PG
Market Capitalisation US$465m
Commodity: Gold & Silver
Mine Type: Underground
Stage: Operating
2019 Production: 60koz Au, 191koz Ag
Mine Life:
(Reserves only)
6 years, awaiting updated Reserve and Resource
estimate following 40,840m 2019 drilling program
Royalty
Royalty: 1% NSR after hurdle (July 2022)
Deal Date: June 2018
2019 Revenue: n/a
Reserves & Resources
Reserves: 395koz Au @ 3.6g/t Au, 2.7Moz Ag @ 25g/t Ag
Resources (M&I): 356koz Au @ 3.4g/t Au, 4.0Moz Ag @ 38g/t Ag
Resources (Inf): 231koz Au @ 4.2g/t Au, 2.0Moz Ag @ 36g/t Ag
Portfolio: Mercedes
17Source: Premier Gold Mines Limited’s Management Discussion and Analysis for the year ending December 31, 2019. The report is prepared in accordance with NI 43-101 and is available on Premier’s company profile at www.sedar.com
Mineral Reserves are not included in Mineral Resources. Market Capitalisation from Capital IQ as of November 20, 2020. Mineral Reserve and Resource Statement in Appendix
Portfolio: Other Assets
18
Asset Information Kwale Mt Pleasant Panton
Location: Kenya West Australia West Australia
Operator: Base Resources Ltd Zijin Mining Group Panoramic Resources Ltd
ASX/AIM: BSE HKSE: 2899 ASX: PAN
Market Capitalisation US$250m Market Capitalisation US$32.5bn Market Capitalisation US$195m
Commodity: Mineral Sands Gold Platinum, Palladium, Gold
Mine Type: Open Pit Open-pit & underground Open-pit & Underground
Stage: Production Production Historical feasibility study
2019 Production:74kt Rutile, 348kt Ilmenite,
31kt Zircon2.2koz Au -
Mine Life:
(Reserves only)4 years - -
Royalty
Royalty: 0.25% GRR A$10/oz or 5% NPI 0.5% NSR
Deal Date: Feb 2017 Sept 2017 Feb 2017
2019 Revenue: US$0.5m US$0.02m n/a
Reserves & Resources
Reserves: 1.4Mt HM @ 3.4% HM -
Resources (M&I): 2.4Mt HM @ 3.1% HM 469koz Au @ 1.9g/t1 879koz Pt @ 2.3g/t, 963koz Pd @ 2.5g/t
Resources (Inf): - 711koz Au @ 2.8g/t1 129koz Pt @ 1.9g/t, 139koz Pd @ 2.0g/t
Source: Market Capitalisation from Capital IQ as of November 20, 2020
Note 1: The Mount Pleasant royalty contains a historical resource estimate based on the Norton Gold Fields Limited announcement dated February 3, 2015, titled “January 2015 Mineral Resource & Ore Reserve update”, which was prepared in accordance with
the JORC Code, and is available on the ASX website at https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01596085 . Elemental believes that the resources disclosed are reliable but should not be relied on as a current
resource estimate, and no qualified person of Elemental has done sufficient work to classify the above estimate as current mineral resources. Elemental is not treating the historical estimate as current Mineral Resources or Mineral Reserves.
Other sources: Base Resources Ltd.’s ASX announcement dated August 13, 2020, “2020 Mineral Resources and Ore Reserves Statement”. The ASX announcements are prepared in accordance with the JORC Code. The ASX announcements are available on Base
Resources’ website at https://baseresources.com.au/investors/announcements/. Mineral Reserves are included in Mineral Resources. Panoramic Resources Ltd.’s ASX announcements dated September 30, 2015, titled “Mineral Resources and Ore Reserves at
June 30, 2015”, The ASX announcement is prepared in accordance with the JORC Code and is available on Panoramic’s website at https://panoramicresources.com/asx-announcements/. Mineral Reserves are included in Mineral Resources.
Appendix 2 Royalty Portfolio Acquisition –
Reserves and Resources
Mineral Reserve and Resource Estimates
20
Indicated Resources
ProjectTonnes
(Mt)
Grade
(g/t Au)
Contained Metal
(koz Au)
Karlawinda1 67.2 0.8 1,722
Laverton Gold Project2
Telegraph 0.6 2.1 44
Beasley Creek 3.0 2.2 216
Beasley Creek South 0.8 3.6 87
Wedge 2.7 1.7 141
Total Laverton Gold Project 7.1 2.1 487
Western Queen3 0.2 3.5 27
Inferred Resources
ProjectTonnes
(Mt)
Grade
(g/t Au)
Contained Metal
(koz Au)
Karlawinda1 19.5 0.7 422
Laverton Gold Project2
Telegraph 0.5 1.4 25
Beasley Creek 0.6 1.7 31
Beasley Creek South 0.3 3.6 30
Wedge 0.7 1.1 27
Lancefield 3.9 6.3 793
Total Laverton Gold Project 6.0 4.7 905
Western Queen3 0.7 4.0 92
Sources:
1. Capricorn Metals’ ASX announcement dated April 17, 2020, titled “Gold Reserves Increase 35% to 1.2 Million Ounces”. The ASX announcements are prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (“JORC Code”). The ASX announcements are available on Capricorn’s website: http://capmetals.com.au/investor-centre/asx-announcements/
2. Focus Minerals’ ASX announcement dated October 20, 2020, titled “115% Increase to Burtville Mineral Resource “. The ASX announcements are prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (“JORC Code”). The ASX announcements are available on Focus’ website: http://www.focusminerals.com.au/investors/news-announcements/.
3. Rumble Resources’ ASX announcement dated August 6, 2020, titled “Option to Acquire the High-Grade Western Queen Project“. The ASX announcements are prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (“JORC Code”). The ASX announcements are available on Rumble’s website: http://www.rumbleresources.com.au/asx_announcements.php
Probable Reserves
ProjectTonnes
(Mt)
Grade
(g/t Au)
Contained Metal
(koz Au)
Karlawinda1 43.5 0.9 1,201
Appendix 3 Existing Elemental
Reserves and Resources
Mineral Reserve Estimates
22
Proven Reserves
ProjectTonnes
(Mt)
Grade
(g/t Au)
Contained Metal
(koz Au)
Grade
(g/t Ag)
Contained Metal
(koz Ag)
Amancaya1 0.3 6.9 59 32.0 274
Mercedes2 0.2 9.0 56 81.0 503
Wahgnion3 2.9 1.37 130 - -
HM Assemblage
Material
(Mt)
In Situ HM
(Mt)
HM
(%)
Ilmenite
(%)
Rutile
(%)
Zircon
(%)
Kwale South Dune4 35 1.2 3.5% 58% 14% 6%
Probable Reserves
ProjectTonnes
(Mt)
Grade
(g/t Au)
Contained Metal
(koz Au)
Grade
(g/t Ag)
Contained Metal
(koz Ag)
Amancaya1 0.2 5.5 43 25.0 196
Mercedes2 3.2 3.3 339 21.7 2,222
Wahgnion3 27.4 1.61 1,420 - -
HM Assemblage
Material
(Mt)
In Situ HM
(Mt)
HM
(%)
Ilmenite
(%)
Rutile
(%)
Zircon
(%)
Kwale South Dune4 5 0.2 2.9% 51% 12% 5%
Total Mineral Reserves
ProjectTonnes
(Mt)
Grade
(g/t Au)
Contained Metal
(koz Au)
Grade
(g/t Ag)
Contained Metal
(koz Ag)
Amancaya1 0.5 6.3 102 29.0 470
Mercedes2 3.4 3.6 395 25.1 2,725
Wahgnion3 30.3 1.59 1,550 - -
HM Assemblage
Material
(Mt)
In Situ HM
(Mt)
HM
(%)
Ilmenite
(%)
Rutile
(%)
Zircon
(%)
Kwale South Dune4 40 1.4 3.4% 57% 13% 6%
Sources:
1. Austral Gold Limited’s 2019 Annual Report dated March 5, 2020. The report is prepared in accordance with NI 43-101 and is available on the Austral Gold’s website at www.australgold.com and SEDAR at www.sedar.com
2. Premier Gold Mines Limited’s Management Discussion and Analysis for the year ending December 31, 2019. The report is prepared in accordance with NI 43-101 and is available on Premier’s company profile at www.sedar.com
3. NI 43-101 Technical Report on the Wahgnion Gold Operations dated July 31, 2019 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com
4. Base Resources Ltd.’s ASX announcement dated August 13, 2020, “2020 Mineral Resources and Ore Reserves Statement”. The ASX announcements are prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (“JORC Code”). The ASX announcements are available on Base Resources’ website at https://baseresources.com.au/investors/announcements/
Mineral Resource Estimates
23
Measured Resources
Project
Tonnes
(Mt)
Grade
(g/t Au)
Contained Metal
(koz Au)
Grade
(g/t Ag)
Contained Metal
(koz Ag)
Amancaya1 0.3 10.2 101 49.0 480
Mercedes2 0.3 3.3 27 51.2 417
Wahgnion3 3.3 1.36 140
HM Assemblage
Material
(Mt)
In Situ HM
(Mt)
HM
(%)
Ilmenite
(%)
Rutile
(%)
Zircon
(%)
Kwale South Dune4 55 1.8 3.2% 58% 14% 6%
Tonnage
(Mt)
Grade
(g/t Pt)
Grade
(g/t Pd)
Grade
(g/t Au)
Grade
(% Cu)
Grade
(% Ni)
Contained
(koz Pt)
Contained
(koz Pd)
Panton5 6.5 2.1 2.3 0.3 0.06% 0.25% 441 475
Indicated Resources
ProjectTonnes
(Mt)
Grade
(g/t Au)
Contained Metal
(koz Au)
Grade
(g/t Ag)
Contained Metal
(koz Ag)
Amancaya1 0.3 7.3 70 28.0 269
Mercedes2 3.0 3.4 329 36.9 3564
Wahgnion3 46.4 1.50 2,230
Mount Pleasant – Tuart6 3.6 1.8 212
Mount Pleasant - Racetrack6 4.3 1.9 257
HM Assemblage
Material
(Mt)
In Situ HM
(Mt)
HM
(%)
Ilmenite
(%)
Rutile
(%)
Zircon
(%)
Kwale South Dune4 20 0.6 2.9% 52% 12% 6%
Tonnage
(Mt)
Grade
(g/t Pt)
Grade
(g/t Pd)
Grade
(g/t Au)
Grade
(% Cu)
Grade
(% Ni)
Contained
(koz Pt)
Contained
(koz Pd)
Panton5 5.6 2.4 2.7 0.3 0.08% 0.28% 438 488
Sources:
1. Austral Gold Limited’s 2019 Annual Report dated March 5, 2020. The report is prepared in accordance with NI 43-101 and is available on the Austral Gold’s website at www.australgold.com and SEDAR at www.sedar.com. Mineral Reserves are included in Mineral Resources.
2. Premier Gold Mines Limited’s Management Discussion and Analysis for the year ending December 31, 2019. The report is prepared in accordance with NI 43-101 and is available on Premier’s company profile at www.sedar.com. Mineral Reserves are not included in Mineral Resources.
3. NI 43-101 Technical Report on the Wahgnion Gold Operations dated July 31, 2019 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com. Mineral Reserves are included in Mineral Resources.
4. Base Resources Ltd.’s ASX announcement dated August 13, 2020, “2020 Mineral Resources and Ore Reserves Statement”. The ASX announcements are prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”).
The ASX announcements are available on Base Resources’ website at https://baseresources.com.au/investors/announcements/. Mineral Reserves are included in Mineral Resources.
5. Panoramic Resources Ltd.’s ASX announcements dated September 30, 2015, titled “Mineral Resources and Ore Reserves at June 30, 2015”, The ASX announcement is prepared in accordance with the JORC Code and is available on Panoramic’s website at https://panoramicresources.com/asx-
announcements/. Mineral Reserves are included in Mineral Resources.
6. The Mount Pleasant royalty contains a historical resource estimate based on the Norton Gold Fields Limited announcement dated February 3, 2015, titled “January 2015 Mineral Resource & Ore Reserve update”, which was prepared in accordance with the JORC Code, and is available on the
ASX website at https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01596085 . Elemental believes that the resources disclosed are reliable but should not be relied on as a current resource estimate, and no qualified person of Elemental has done sufficient work
to classify the above estimate as current mineral resources. Elemental is not treating the historical estimate as current mineral resources or mineral reserves
Mineral Resource Estimates (continued)
24
Total Measured and Indicated Resources
ProjectTonnes
(Mt)
Grade
(g/t Au)
Contained Metal
(koz Au)
Grade
(g/t Ag)
Contained Metal
(koz Ag)
Amancaya1 0.6 8.8 171 38.0 748
Mercedes2 3.3 3.4 356 38.1 3981
Wahgnion3 49.6 1.49 2370
Mount Pleasant - Tuart 3.6 1.8 211
Mount Pleasant - Racetrack 4.3 1.9 258
HM Assemblage
Material
(Mt)
In Situ HM
(Mt)
HM
(%)
Ilmenite
(%)
Rutile
(%)
Zircon
(%)
Kwale South Dune4 75.0 2.4 3.1% 56% 13% 6%
Tonnage
(Mt)
Grade
(g/t Pt)
Grade
(g/t Pd)
Grade
(g/t Au)
Grade
(% Cu)
Grade
(% Ni)
Contained
(koz Pt)
Contained
(koz Pd)
Panton5 12.2 2.3 2.5 0.3 0.07% 0.26% 879 963
Inferred Resources
ProjectTonnes
(Mt)
Grade
(g/t Au)
Contained Metal
(koz Au)
Grade
(g/t Ag)
Contained Metal
(koz Ag)
Amancaya1 0.7 5.9 140 18.0 426
Mercedes2 1.7 4.2 231 36.1 1997
Wahgnion3 5.2 1.41 240
Mount Pleasant - Tuart6 1.9 3.8 232
Mount Pleasant - Racetrack6 6.3 2.4 480
HM Assemblage
Material
(Mt)
In Situ HM
(Mt)
HM
(%)
Ilmenite
(%)
Rutile
(%)
Zircon
(%)
Kwale South Dune4 - - - - - -
Tonnage
(Mt)
Grade
(g/t Pt)
Grade
(g/t Pd)
Grade
(g/t Au)
Grade
(% Cu)
Grade
(% Ni)
Contained
(koz Pt)
Contained
(koz Pd)
Panton5 2.2 1.9 2.0 0.3 0.11% 0.31% 129 139
Sources:
1. Austral Gold Limited’s 2019 Annual Report dated March 5, 2020. The report is prepared in accordance with NI 43-101 and is available on the Austral Gold’s website at www.australgold.com and SEDAR at www.sedar.com. Mineral Reserves are included in Mineral Resources.
2. Premier Gold Mines Limited’s Management Discussion and Analysis for the year ending December 31, 2019. The report is prepared in accordance with NI 43-101 and is available on Premier’s company profile at www.sedar.com. Mineral Reserves are not included in Mineral Resources.
3. NI 43-101 Technical Report on the Wahgnion Gold Operations dated July 31, 2019 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com. Mineral Reserves are included in Mineral Resources.
4. Base Resources Ltd.’s ASX announcement dated August 13, 2020, “2020 Mineral Resources and Ore Reserves Statement”. The ASX announcements are prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”).
The ASX announcements are available on Base Resources’ website at https://baseresources.com.au/investors/announcements/. Mineral Reserves are included in Mineral Resources.
5. Panoramic Resources Ltd.’s ASX announcements dated September 30, 2015, titled “Mineral Resources and Ore Reserves at June 30, 2015”, The ASX announcement is prepared in accordance with the JORC Code and is available on Panoramic’s website at https://panoramicresources.com/asx-
announcements/. Mineral Reserves are included in Mineral Resources.
6. The Mount Pleasant royalty contains a historical resource estimate based on the Norton Gold Fields Limited announcement dated February 3, 2015, titled “January 2015 Mineral Resource & Ore Reserve update”, which was prepared in accordance with the JORC Code, and is available on the
ASX website at https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01596085 . Elemental believes that the resources disclosed are reliable but should not be relied on as a current resource estimate, and no qualified person of Elemental has done sufficient work
to classify the above estimate as current mineral resources. Elemental is not treating the historical estimate as current mineral resources or mineral reserves
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