General Presentation for Cunico Resources Group-3 · ! Cunico Resources N.V. is a multinational mining and metal ... Ferro-Nickel Process Flow Chart 8 Ore ... FENI pioneers the health

NEWCO FERRONIKELI

http://www.cunicoresources.com

Corporate Presentation

! Cunico Resources N.V. is a multinational mining and metal processing group domiciled in Amsterdam. The smelting operations and mining of the Nickel ore from the group’s own mines are done in the Balkans as well as Guatemala in Central America, whilst marketing and sales of the finished goods as well as massive procurement of tropical-equatorial Nickel ores are done from Dubai.

! BSG Resources is a 50% joint shareholder of Cunico. ! Cunico is the largest Ferronickel (a Ferroalloy consisting between 20 - 25% Nickel) producer in Europe, and holds

a significant position in terms of world production. The production and mining sites are located in FYRO Macedonia (the fully owned subsidiary Feni Industries) and Kosovo (the fully owned subsidiary NewCo Ferronikeli). Cunico also has mining sites in Guatemala (Guaxilan) and Albania (Feni Korcha & Albanian Resources). The Cunico Group has also recently acquired mining assets in Turkey through its wholly owned subsidiary Cunico Madencilik. – World production of Nickel is ~ 1.61 million mt, of which Cunico produces cca. 2% with it’s 29,000+ mt forecasted

production for 2013. In the Ferro-nickel segment (~ 20% of the Nickel market), Cunico is within the top 10 producers and produces ~ 10% of global production (29,000+ mt expected out of 320,000 mt in 2013).

– For the year 2013 Cunico’s consumption of Nickel ores is expected to be ~ 2,626,000 wmt, and it is expected to consume: • 1,285,000 mwh of electricity, • 327,000 mt of solid fuel (coal & lignites) and • 94,000 mt of heavy oil in the conversion process.

! Cunico has a strong and well experienced management team with expert industry knowledge. ! Cunico strategically invests in the production process to inculcate advanced technologies which increase the

output, improve costs structure, reduce emissions, and save energy.

Cunico Background www.cunicoresources.com

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Cunico’s Balkan Operations

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The replacement cost of Cunico’s Balkan operations is estimated between USD 1.5 – 2.0 billion without considering the mining assets.

FERRONIKELI ! Ferro-Nickel plant situated in Gllogovac/Drenas, Kosovo ! Cikatova Mine (Duska) pit is in vicinity of plant ! Gllavica Mine is situated about 20km away near the Pristina airport ! Plant about 40km from capital Pristina ! Plant linked by Rail and Road to northern Albania and Montenegro

FENI ! Ferro-Nickel plant located in Kavadarci, FYRO Macedonia ! Rzanovo mine 40km South towards Greek border ! Plant about 100km south of capital, Skopje and 200km north of Port

of Thessaloniki in Greece (the main import/export avenue of the plants)

ALBANIAN MINES ! Albanian mines about 200km from FENI ! Treni and Bitincka Mines are located in Southern Albania near towns

of Korca and Kapstica ! Guri – I – Kuq is located in central Albania near the town of Pogradec ! Nome is located in Northern Albania in the Kukes area

Cunico’s Marketing Operations

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CUNICO MARKETING ! Marketing operations of the Cunico Group located in Dubai, UAE ! Clientele includes some of the world’s leading stainless steel producers in Europe and in Asia as well as small

foundries etc. across Europe for producing special steels ! Member of the Jebel Ali Free Economic Zone (JAFZA) ! Activities also include procurement of high grade ores from various locations across the world, and the

underlying shipping activities and logistic solutions for both the sale side and procurement side. ! Branding - Cunico is a registered Trade Mark in Benelux and is currently expanding the TM globally as part of

it’s branding policy

Cunico Advertisement in Metal Bulletin Magazine

Cunico’s Mining Operations

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Guaxilan ! Central American mining operations of the Cunico Group located in Guatemala ! Acquired mid 2012 and mining commenced from end Q3 – From an exploration asset to an exploitation asset in

almost 3 months – An achievement par excellence ! High Grade Saprolite Nickel ores production at reasonably low costs ! Total resources expected to be close to 18 mil tonnes ! Activities also include mining, logistical and freight forwarding activities and fobbing – Completely developed as

a Profit Centre within the Cunico Group ! Cunico Group is in the process of new investments in Guatemala in the form of new acquisitions as well as

processing equipment – A unique Cunico effort

! Recently Cunico acquired mining assets in Turkey ! Operations in Turkey will commence during 2013 ! Cunico Group will undertake a detailed exploration programme initially and thereafter commercial exploitation

will commence ! Turkish ore has high grades, logistically is a better option owing to smaller vessel size and is reasonable in

terms of costs ! Plans of further acquisitions in Turkey over a period of time

Cunico Madencilik

All in all, the Cunico Group plans to expand operations in high grade Nickel ore mining operations beyond the Balkans. Instead of the procurement model, the Group is aiming for a mining model

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Feni Industries: FYRO Macedonia & Albania

! Formed as a Yugoslav state owned company in 1982 ! Original business model was based on processing of local ores from Rzanovo mine, with annual capacity of 5,000 mt of Nickel. ! Feni was first privatized in 2001, and acquired by Cunico’s shareholders from previous owners in February 2005. ! Under the new management rapid changes in production technology were implemented, and imported richer ore were added, which

resulted in almost doubling the previous production and reaching 10,000 mt annual capacity by the end of 2005. ! In 2006 major mile stones were changing end product from Ingots to Granules, commissioning the 2nd furnace, and resuming the

excavation of Albanian ores from Bitinska & Treni. ! By the year 2008, three years after acquisition, production capacity was tripled to 15,000 mt, a significant metallurgical achievement ! During the 2008-2009 global economic crisis, production was slowed down (one of the furnaces was idled and 2009 production was

11,762 mt), but as the markets improved, Feni gradually increased production once again and in 2010 produced 14,413 mt (post refurbishment of the 2nd Furnace)

! Following the refurbishment and relinining of the second furnace in 2011 and additional technological improvements completed, production reached to more than 17,000 mt. In 2012 continuing with the achievements, the plant produced 19,247 mt. The 2013 production plan envisages a production of around 21,000 tonnes

! Ferro Nickel Production is very energy intensive – and when 2 lines at Feni plant are working at full capacity energy needs are at capacity levels of 100 - 120 Mwh, which due to the limitations of the local power generation capacities, Feni is importing cross border

! Today Feni is one of the biggest private companies in FYRO Macedonia , and one of the biggest exporters generating a very substantial portion of the hard foreign currency entering the country

! Feni is very active in contributing to the community, helping the near by municipality, the university and many other institutions, and is also sponsoring a youth sports club

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FENI Production, mtpa FENI Granules - End Product

FENI Industries

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5000

10000

15000

20000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013P

Ferro-Nickel Process Flow Chart

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Ore Sources

• Mining Activities

• Ore Purchasing

Inbound Logistics

• Conveyor Belt • Barges • Shipping • Railing • Trucking

Outbound Logistics

• Packing • Containerization • Railing • Trucks • Shipping

Customers

• STS Makers • Europe • Asia

Ore Preparation

• Crushing • Drying • Milling • Additives Mixed-in • Pelletizing

Reduction

• Rotary Kilns (800 C) • Carbon Reduction • Production of Calcine / Pre-reduced Pellets

Smelting

• Electric Furnaces (1600 C)

• Separating FeNi /Slag

Refining

• Oxygen Refinery

• Final Impurities Removal

Finishing

• Water Granulation

• Ingots Casting

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FENI: Process Flow Chart

The FENI production process is unique in itself.

FENI was the first plant to start blending of different types of ores with acceptable chemical balance as well as high Nickel Grade – Other competitors who tried, failed.

FENI started importing ores since 2005 and from a low share in the ore mix has reached a very high share currently.

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Corporate Responsibility Health, Safety and the environment

Cunico’s goal is to conduct all of its business operations to best industry standards and to behave in a socially responsible manner.

FENI Medical Centre The Group is committed to sound environmental management of its operations in a manner that will result in compliance with applicable regulatory requirements and good practice standards (such as the IFC EHS Guidelines on mining).

FENI pioneers the health and fire safety cause and provides support to the Kavadarci town as and when needed with respect to fire fighting.

There are numerous environmental laws in the Balkans that apply to the Group’s operations and development projects. These laws address such matters as protection of the natural environment, air and water quality and emission standards and disposal of waste.

FENI is an ISO 9001 and ISO 14001 certified entity and is shortly applying for ISO 18001 (OHSAS) certification

Community Relations

Cunico believes it has a responsibility to give back to the communities in which it operates. Consequently, it has developed and implemented a number of community related projects.

FENI, Kavadarci Basketball team

Feni is a well regarded employer in FYRO Macedonia where unemployment is very high.

In Kavadarci Feni provides internships to students, sponsors the local basketball team, has started several donation programmes, such as sponsoring infrastructure improvements through the Mayor’s office.

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Ferronikeli: Kosovo, creating new growth opportunities

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! NewCo Ferronikeli Complex, located in central Kosovo, consists of 3 open pit mines (Dushkaja, Suka and Gllavica) with substantial ferronickel ore reserves, and a large metallurgical complex close to the town of Gllogovac/Drenas.

! Formed In 1989 as a state company, it employed 2,000 workers and produced ~ 6,800 mt of Nickel cast in Ferronickel ingots.

! The mines and the plant were under-utilized and deteriorated during the 1990’s, and eventually ceased to function in 1998. The site was further damaged during the NATO bombing campaign in 1999.

! Privatized in 2006 by an international tender and bought by Cunico, an investment of USD100 million was made for rehabilitation and modernization of the plant, and 1,000 local employees were rehired.

! Activity was restarted with one line in 2007 and a second line in 2008, and annual production capacity is now 10,000 - 12,000 mt of nickel (similar to Feni, during the crisis production was slowed down, but is now back up).

! Following the economic slow down in 2012, the production was again reduced in Ferronikeli but with the possibility to scale up operations immediately as and when required.

! Ferronikeli is regularly investing in capital expenditure in energy saving projects and have ecological benefits as well as to change the form of the final product and thus being more customer friendly.

! Company supports and promotes various community projects (providing books and stationary to school pupils, civil works and infrastructure in neighboring towns, sponsoring sports clubs, park and playground, ambulance and upgrade of local hospital, and more).

! The Company has received an award for the biggest exporter of 2010 in the Country (Kosovo)

From: an acquired War Damaged Plant at 2006

To: an active producing operation since 2007

Ferronikeli Operations

2006 2012

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Ferronikeli Kosovo: Process Flow Chart

Ferronikeli Kosovo: Corporate Social Responsibility

Ferronikeli is also active in Corporate Social Responsibility (CSR) activities as under: • Food Distribution to poor people in the local community • Regular sponsorships and donations to deserving students, medical fraternity etc. • Distributing school bags, books & stationeries to poor children and orphans • Participating in the Community Project like building parks, schools, roads, hospitals etc in the vicinity • Supporting local Football and Basketball teams

14 Ferronikeli is an ISO 9001 and ISO 14001 certified entity

Ferro-Nickel (FeNi) Market Snapshot

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Ni products can be divided into these main groups:

Pure Ni (above 99.9% contained Ni), mainly Electrolytic Ni which is used in the production of nonferrous alloys, stainless steel, batteries, plating and aerospace industries etc.

FeNi , which usually contains between 20% - 40% Ni and balance Fe (Iron), is primarily used as a raw material for stainless steel (mainly in 300 & 200 Series – 75% of total STS market).

Other Ni compounds (around 70%+ contained Ni) viz Ni powder, Ni oxide and Ni nitrate are also used in specific chemical and other industries.

In 2011 global Ni production was 1.61 million mt of which cca 320 k mt was in the form of FeNi, and in 2013 it is estimated that global production will continue to be 1.61 million mt of which 320 k – 350 k mt will be in the form of FeNi. Two thirds of the Nickel produced in the world is consumed in the Stainless Steel industry.

Nickel Prices – Past, Present and Future

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• LME – As of 1979 Nickel became the seventh metal being traded and priced at the London Metal Exchange

•Nickel price is highly volatile and in the last 4 years has peaked at USD 52,179 per tonne and bottomed at USD 9,686, and even during 2012 has ranged between USD 15,600 – 20,500

•Nickel price is effected mainly by demand/supply of SST, global economic conditions, global Industrial indices, production capacities of Ni worldwide etc.

•Forecast for years 2013 per Analysts’ opinion range between USD 17,000 to USD 21,770 per tonne

Nickel prices during 2012

History of Average Nickel Prices (USD per metric ton)

1990 2000 2006 2007 2008 2009 2010 2011 2012

Avg Avg High Low Avg High Low Avg High Low Avg High Low Avg High Low Avg High Low Avg High Low Avg

8,860 8,640 34,570 14,555 24,254 52,179 25,992 37,230 31,225 9,686 21,111 19,642 9,696 14,655 27,600 17,035 21,809 28,252 17,882 22,894 20,465 15,658 17,536

• Cunico’s core competency is to turnaround stale operations in distress by

• Introducing modern management techniques

• Innovating in the technical arena – Continuous business process uplifting • Focusing on human factor

• Safety and environmental factors

• Cunico has proven technical and management skills in the ferronickel business and has demonstrated huge improvement since the past

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Executive Conclusion

Disclaimer

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Numbers contained herein are preliminary and may be subject to change or amendment without notice.

Certain statements made herein may contain statements about expected future events and financial and operating results of Cunico Resources N.V. (“Cunico”) and/ or any of its holding companies or subsidiaries (Herein: “Cunico”), that are forward-looking and subject to risks and uncertainties, and have not been reviewed by the auditors of Cunico or of any company within Cunico.

Accordingly Cunico’s actual results, performance, or achievements could differ materially from those expressed or implied by such statements and such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. No undue reliance shall be placed on such forward looking statements.

Factors that could cause actual results to differ materially may include items discussed in this document, but could also include other factors such as general business and economic conditions, competition, technological change, taxation, and other risk factors that are identified from time to time. Furthermore, historical results stated herein may not be indicative of Cunico’s or any of its member’s future performance.

Cunico disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This presentation is updated as of 10 April 2013