#1NIUMINCO NIUMINCO GROUP LIMITED Expanding Gold Producer in Papua New Guinea Investor Presentation | September 2016 ASX Code: NIU#2Important Information NIUMINCO This presentation is not a prospectus nor an offer of securities for subscription or sale in any jurisdiction nor a securities recommendation. The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions, investors should rely on their own examination of Niuminco Group Limited and consult with their own legal, tax, business and/or financial advisers in connection with any acquisition of securities. The information contained in this presentation has been prepared in good faith by Niuminco Group Limited. However, no representation or warranty, express or implied, is made as to the completeness or adequacy of any statements, estimates, opinions or other information contained in this presentation. To the maximum extent permitted by law, Niuminco Group Limited, its directors, officers, employees and agents disclaim liability for any loss or damage which may be suffered by any person through the use of, or reliance on, anything contained in or omitted from this presentation. Certain information in this presentation refers to the intentions of Niuminco Group Limited, but these are not intended to be forecasts, forward looking statements, or statements about future matters for the purposes of the Corporations Act (Cth, Australia) or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause Niuminco Group Limited's actual results, performance or achievements to differ from those referred to in this presentation to occur as contemplated. The presentation contains only a synopsis of more detailed information to be published in relation to the matters described in this document and accordingly no reliance may be placed for any purpose whatsoever on the sufficiency or completeness of such information and to do so could potentially expose you to a significant risk of losing all of the property invested by you or incurring by you of additional liability. Recipients of this presentation should conduct their own investigation, evaluation and analysis of the business, data and property described in this document. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and you should satisfy yourself in relation to such matters. The information in this report that relates to exploration results is based on Information reviewed by lan Plimer (BSc [Hons], PhD) who is a Fellow of the Australasian Institute of Mining and Metallurgy. Professor Plimer is a director of Niuminco Group Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. He consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. 2#3Corporate Snapshot NIUMINCO Capital Structure Major Shareholders Ordinary Shares on Issue 1,475,556,749 Australian Metals Group 26.7% Options Nil Victoria Park Investments/Nepean 13.9% Market Capitalisation (@ $0.008) $11.8m Directors & Management 15.4% 6 Month Liquidity $4.2m Top 20 74.6% Cash (30/6/2016) $0.15m Debt (P&E Finance and Notes) $0.7m Board and Management 12 Month Share Price Performance Professor lan Plimer Independent Chairman 12 Month Share Price Performance and Volume 35,000 0.010 Tracey Lake Managing Director 0.009 30.000 0.008 25,000 Matthew Roberts Non-Executive Director 0.007 Neill Arthur Non-Executive Director Volume ('000) 20,000 15,000 = 0.006 0.005 0.004 10,000 5,000 0 Sep-15 Dec-15 ли 0.003 0.002 0.001 0.000 Mar-16 Jun-16 Sep-16 3 Price ($)#4Overview of Projects NIUMINCO Highly Prospective Projects Niuminco is currently focused on its gold projects including highly prospective properties adjacent or close to existing large mines or deposits, including PanAust's +18Moz AuEq Frieda River deposit and Harmony/ Newcrest's Hidden Valley Mine, which produced ~190Koz of AuEq in 2015. Niuminco, through its 72.54% shareholding in TNT Mines Limited, controls and manages a suite of advanced exploration assets highly prospective for tin and tungsten in Tasmania, Australia. Growing Gold and Silver Production Niuminco owns and operates a gold and silver mine at its Edie Creek project which has significant infrastructure in place. Niuminco is positioning itself to increase throughput of ore through its plant by over 600% from 6.0tpd to over 40tpd. With minimal fixed operating overheads, the increase in plant throughput is expected to significantly increase revenues to the Company, with attractive margins. Near-Term Exploration Upside Niuminco's gold projects remain highly underexplored. Niuminco is currently drill testing at its operating mine, Edie Creek, to delineate a maiden JORC Resource and to test for extensions of known vein and lode systems, as well as bulk tonnage targets. Niuminco has completed limited exploration on its May River and Bolobip projects since over $6.7 million was spent on exploration activities during 2011 - 2013. Niuminco is now planning to follow up identified targets through two drilling programmes. 4#5Operating in World Class Geological Provinces Papua New Guinea Edie Creek Mine - Producing gold and silver mine May River Project - Major copper-gold porphyry and epithermal anomalies. Adjacent to +18Moz AuEq Frieda River deposit. Bolobip Project - 60km east of Ok Tedi. Large drill ready, copper-gold porphyry target. Tasmania - Aberfoyle Project Advanced brown-field Tin and tungsten project including Royal George, Storey's Creek, Kookaburra, Lutwyche and satellite Great Pyramid deposits. Sorongo Numinco/Mincor JV tenements Mobile Belt Faults Sarmi Jayapura Grasberg May River 146 E NIUMINCO Frieda River Porgera Ok Tedi Bolobip Edie Creek Madange Yandera Kimbe Wafi-Golpu Hidden Valley Merauke Saibai Port Moresby BASS STRAIT Port Latta Bridport Burnie Bell Bay Derby Devonport Scottsdale Anchor Moina Ringarooma St Helens Launceston Great Pyramid Oonah Rosebery Storey's Creek Aberfoyle Avoca (Exploration Office) Zeehan SOUTHERN OCEAN Queenstown Royal George INT WA QLD Perth (Corporate Office) NSW Map Area TNT MINES Location of Projects TASMANIA Hobart PartArthur TASMAN SEA 50 km 5#6Edie Creek Gold and Silver Mine An operating gold mine with significant infrastructure in place NIUMINCO#7Edie Creek NIUMINCO Epithermal Gold and Silver Deposit Edie Creek is located in the Morobe Province, approximately 5km from Harmony/Newcrest's Hidden Valley Mine, which produced ~190Koz of AuEq in 2015. Edie Creek is a granted ML covering 3.92km2 including high grade Au-Ag veins. Within the ML, Niuminco has developed a 200 person camp, mining/processing infrastructure and maintenance / admin facilities. Edie Creek provides high-grade vein mineralisation and lower grade bulk tonnage options with substantial economic potential identified. Measured scale-up of pilot mining & processing continuing. Buiolo 9,187 000N 401,000mE 402.000mE Enterprise Enterprise Diatreme 9,180,000 N 9,1858.000mN Enterprise- Karuka Stockwork 463.000E 464.000mE Identified bulk tonnage targets Edie lodes EMD 005 EMD 004 EMD 002 EMD 001 Edie Creek Stockwork EMD 003 Mounts Edie Creek Diatreme Edie Creek Tenements Mincor Drilling Kia Ora Pre Mincor Drilling Known Gold Lodes Edie Porphyry Intrusive River END 007 Surmans Mounts to Midas Target Zone EMD 016 Midas All weather gravel road Hidden Valley 1 Kilometre 7#8Current Drilling Program NIUMINCO ◉ " Niuminco is currently undertaking a shallow (<50m) drilling program (+20 holes) to delineate a maiden JORC Resource at the Enterprise and Karuka vein systems. Edie Creek is highly underexplored - with only 38 drill holes for 6,118m since drilling commenced in 1988. Niuminco is testing for extensions of known vein and lode systems and bulk tonnage targets using their own drill rigs and crew. Despite being in operation since 1930's, Edie Creek has never had a Mineral Resource due to the narrow, high grade veins and minimal drilling. 80#9FY2016 - Production Review ◉ Successful scale-up of mining and gold production capacity at Edie Creek FY2016 Production: 689oz Au and 602oz Ag Procured key infrastructure to increase production rate: Small jaw crusher, and commissioning of 2 t/h ball mill and vibrating screen; Gekko in-line spinner processing concentrator plant; Orders currently being placed for larger 5t/h ball mill, roller crusher, vibrating feeders and conveyer belts to increase mining rates and processing throughput. Commenced drilling at Edie Creek with own rigs and crew. NIUMINCO HYUNDAI Niuminco is positioning to increase processing throughput from 6.0tpd to +40tpd, 6#10Edie Creek Production ◉ Successful Scale Up Niuminco produced 281oz Au in June (the best months production since recommencing processing in Feb 2014). At current gold prices, operating break-even production at Edie Creek is 76oz per month. With the successful implementation of critical infrastructure to improve throughput and recoveries, Niuminco is well placed to significantly increase production at relatively low cash costs. NIUMINCO Gold produced and ore processed by month 450 10000.00 400 350 300 250 Ore (t) 200 150 100 50 0 Jul 14 Aug po das Nov Dec Jan 15 Feb Mar Арг May Inr Month Aug AON PO das 9000.00 8000.00 7000.00 6000.00 5000.00 Au (g) 4000.00 3000.00 2000.00 1000.00 0.00 Proc'ed Ore (kg&t) Au (g) 10#11Edie Creek Production NIUMINCO Av Tonnes per Day Mined & Processed, and Grade 14.00 35.0 ☐ Significantly Scaling Existing Operations Edie Creek was mined at an average rate of 12.2tpd and ore processed at 13.0tpd in June - V 12.00 a significant increase from the T 10.00 0 previous monthly averages. With new infrastructure in place, it is anticipated Edie Creek will scale up to run at +40tpd a 3.0x increase over June's record production rate. Niuminco is well placed to scale existing operations at Edie Creek towards becoming cash flow positive. Π n 8.00 e 5 6.00 P 4.00 30.0 25.0 G 20.0 r а 15.0 d e 10.0 2.00 5.0 D a 0.00 0.0 Jan Ma Ma Y Feb Mar Apr Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Jun 15 y Y -Grade Mined Ore 3.55 3.36 2.99 2.16 1.83 2.62 3.49 4.03 3.76 4.33 3.80 2.73 1.79 1.93 3.52 5.90 6.0 12.2 Processed Ore 6.15 6.51 5.97 3.98 2.51 4.66 6.45 6.62 6.91 6.85 6.68 6.17 4.44 3.09 3.62 5.90 6.13 13.0 19.4 31.3 16.7 10.5 17.9 17.6 7.76 8.89 10.0 6.79 3.39 4.17 8.42 10.5 9.72 3.39 2.6 22.3 With minimal fixed operating overheads, the increase in plant throughput is expected to significantly increase revenues to the Company, with attractive margins. 11#12Processing Upgrades NIUMINCO Current crushing and processing circuit includes: - Jaw crusher, vibrating screen, 2t/h ball mill and a Gekko ISP concentrator plant, with new cyclone currently being installed. Increased throughput and recoveries planned as a result of installing new infrastructure next quarter: - 5t/h ball mill, roller crusher, vibrating feeders, conveyor belts for USD$40,000 Operating a single 11 hour shift, Niuminco is targeting 40-50tpd of throughput, a significant increase on the current production rate. CRUSHED MILL FEED Water Near Term TAILINGS Cyclones water water variable split screen water 0/s Knelsons water Concentrate to Acacia The Future CONSEP INNOVATION IN PROCESS TECHNOLOGY CRUSHING AND SCRUBBING BY OTHERS ROM ORE STOCKPILE JAW CRUSHER PHASE 1 PHASE 2 VIA BELT CONVEYORS 6mm product CLOSED CIRCUIT IMPACT AND/OR 6 PACK CRUSHED ORE STOCKPILE CONE CRUSHER CYCLONES TAILINGS HOPPER VIA LOADER FEED BIN C/W APRON FEEDER VIA BELT CONVEYORS SCRUBBER C/W 6MM TROMMEL SCREEN Niuminco EDIE CREEK PROJECT PROCESS FLOWSHEET mag flow meter GRAVITY FEED SCREEN TAILINGS STORAGE FACILITY Water addition concentrate KNELSON ACACIA +6mm Oversize Pulp VIA BELT CONVEYORS MILL BY OTHERS Fluidising Water Addition water waste water and residue DETOXIFIED WASTE SOLUTION Water addition LEACHAID CYANIDE CAUSTIC CHLORINE HYDROCHLORIC ACID- CAUSTIC- RECYCLE PREG BARREN EW Cel Dissolution D EW Module Barren Byproduct Recycle Treatment LOADED CATHODES Cathode Washing Module Smelting Furnace Ball Mill water Mill Discharge Hopper Cydone Feed Hopper 12#13May River Project Niuminco's May River Project is a large tenement package adjacent to the Frieda River deposit, and is highly prospective for both Porphyry deposits and smaller, high-grade epithermal deposits. The Company has an established base camp area that acts as a regional exploration base at Hotmin -An ideal locality in centre of May River Exploration Licence. Existing airstrip, and major supplies brought in by low-cost river transport. Over $3.6 million spent by Mincor/Niuminco in 2011-2013. Major airborne geophysical survey completed. Airborne VTEM and ZTEM, covering North & South May River completed in 2012/2013. NIUMINCO 13#14Copper / Gold Porphyry and Epithermal Adjacent to World-Class Frieda River Niuminco's May River Project adjoins the Freida River porphyry deposit, owned by PanAust and Highlands Pacific Limited (ASX:HIG), which has delineated +18Moz AuEq. Niuminco has completed significant geophysical exploration programs which has identified walk-up drill targets at South May River. May River has historical drilling, with historical highlights of: - 06SK98: 109m @ 1.53g/t Au - 11SK98: 54m @ 1.83g/t Au 93SK001: 96m @ 0.89g/t Au 540,000mE 9,54000mN 9,520,000mN 9,500,000mN 9,480,000mN 560,000 E NIUMINCO 580,000mE Ufou Prospects-Historic Drilling 009UF97 11m 10.6 % Cu 1.98gt Au 010UF97: [email protected]% Cu, 2.17gt Au Tuwavi Alluvium Wogamush Formation Frieda River Andesite & Volcanicastic Frieda River Intrusions Paleogene Diorite/Granite Dimaio Basats Ambunti Metamorphics Ultramafic, Minor Mafic Salumei Fm-Metamorphic Phase Om Beds - Metamorphic Phase Hotmin Village 20 Kilometres Nena Mt Gate Foya Skiraisa-Historic Drilling 06SK98 [email protected] Au 11SK96: [email protected] Au 935K001: 96m @0.89gt Au Koki Horse-vaal Frieda River Resources -11 Mt Co -18Moz Au 14#15May River Work Program 540,000mE 560,000mE 580.000mE Ofou Prospects 1-6 as shown in Figure 8 9,540,000mN North May River VTEM Survey Area 9,520,000m South May River VTEM & ZTEM Survey Area Hotmin Village South May River VTEM anomalies as shown in Figures 6 and 7 Preliminary VTEM anomalies N 20 Kilometres NIUMINCO Niuminco plan on drilling 3 drill holes at South May River - immediately adjacent to the Frieda River deposit, in 2H2016, following up the promising geophysics data and historical drilling results. Niuminco's consulting geologist has formed the view that May River shares the same geological structures as Frieda River. 50000ME 568,000m 570.000ME 572,000m 574.00 5768000m 9,500,000mN 9,482,000 9,450.000m 9,450,000m Preliminary VTEM anomalies Strong VTEM anomaly Moderate/off-end VTEM anomaly Weak VTEM anomaly Preliminary ZTEM anomalies 2 Kilometres Mountain Gate Skirasia Foya VTEM anomalies over magnetics - South May River 15#16Bolobip Project In 2012/13, JV partners Mincor and Niuminco spent over $3.1 million on exploration of the 320km² tenement. The JV exploration program centred around the Koum Stock and focused on detailed mapping of geology, alteration and structure along with execution of a heli-magnetic and radiometric program. Potential for discovery of economic gold/copper mineralisation is considered significant and an initial 3 hole, 900m diamond drill program is planned. A Major Copper Gold Porphyry Target 60km East of Ok Tedi Mine NIUMINCO 16#17Bolobip - Drill Targets W 2000m A 1500m Bolopip Au-Cu project - Mineralisation Model - Interpretive Section A-A' 1:1: Vertical:Horizontal Scale ANSIG Magnetic Anomalism Soil/Wacker Gold Anomalism Soil/Wacker Copper Anomaliam Fresh Intrusive 1000m 572,000mE Intense Magnetite-Hematite & Hydrothermal Brecca 573,000mE DEMAGNETISED ANNULUS Bench 3-95m @ 1.28 Au, 521 Cu E (Incl. 10m @ 2.59 Au, 894 Cu) Pyritic Fracture Stockwork Bench 1-70m @ 0.86 Au, 440 Cu (off-section) Silica-Clay Lithocap H Distal Carbonate-Base-metal Veining Phyllic Alteration Quartz Propylitic Alteration Stockwork TARGETS ZONE 574,000E Koum Monzonite $75,000mmE Propylitic Alteration Fresh Intrusive (Strongly magnetic) Recent Chaotic Colluvium Deposits Magnetite-Hematite Gossan (minerali Polymicitc Hydrothermal Breccia (partially milled- mineralised) Lithocap (Silica-Clay alteration) (Undifferentiated Protoliths) Monzonite (contain primary biotite) Mineralised Monzonite (contain primary biotite) Pre/Post Mineral Undifferentiated Diorites, Dacites & Hornblende-Felspar Porphyrys (Bolopip Stock) Limestone (fossiliferous) of the Darai Limestone Group Undifferentiated siltstone, mudstone, sandstone & shale of the Kuabgen Group Ep Major Structure Epidote Zone (Strong Propylitic Alt'n) Possible Drill Target Increasing Stockwork Intensity 573,600E A A multi-phase intrusive complex. 3 drill targets ready to drill. Latest data shows coherent 1km diameter copper and gold anomaly. Classic geochemical signature of a leached cap above a mineralised copper-gold porphyry system. Extensive surface gold mineralisation in trench channel samples (CRA exploration, 1990s). 17 NIUMINCO#18Tasmanian Projects NIUMINCO Focus to remain on the advanced exploration assets that represent potential near-term development projects: The Aberfoyle Tin & Tungsten Project Comprising the Aberfoyle/Lutwyche/Kookaburra/Storey's Creek/Royal George and Great Pyramid tin and tungsten deposits. Current JORC 2012 Inferred Mineral Resources for the Royal George and Great Pyramid deposits. Drill targets ready to drill at Aberfoyle/Lutwyche deposits with aim of achieving a JORC Inferred Mineral Resource. Niuminco's Tasmanian assets provide exposure to the tin price - which is up 35% CY2016. 146°E BASS STRAIT Port Latta Bridport Bell Bay Burnie Derby Devonport Scottsdale Ringarooma Launceston Anchor St Helens Great Pyramid Moina Oonah Rosebery Storey's Creek Aberfoyle Zeehan SOUTHERN OCEAN Queenstown Perth (Corporate Office) NT QLD NSW Map Area TNT MINES Location of Projects TASMANIA Avoca (Exploration Office) Royal George Hobart TASMAN SEA Port Arthur 50 km 18#19Aberfoyle and Great Pyramid TNT MINES Aberfoyle Prospect - Cross Section Proposed Open Pit Outline ◉ ☐ ◉ Aberfoyle Tin & Tungsten Project represents a near term development opportunity. Potential for combined open-cut and underground mine feeding low CAPEX gravity separation plant. Royal George JORC 2012 Inferred Mineral Resource of 800,000 tonnes at 0.33% tin for 2,640 tonnes of contained tin. Royal George Mine represents a planned development satellite mine to supplement the Aberfoyle deposit. B- North West -50m Proposed in Pit Outline Open No. 5 Level 100m 150m - B with Quartz Veining ABRC002 ABRC001 NIUMINCO -B South East SECTION TNT MINES SURFACE No 1 Level No.2 Level No.4 Level Minemaker Drill Holes Underground Development Drives Underground Development Drives Downhole Sn ppm (Results Clipped to 5000ppm) >3% Quartz Vein Content >2% Quartz Vein Content Permian Sediments Mathinna Group ☐ Great Pyramid Tin Project has a JORC 2012 inferred Mineral Resource of 5.2m tonnes @ 0.2% Sn for 10,400 tonnes contained tin. ☐ Shallow, near surface deposit with low stripping ratio. ☐ Excellent infrastructure and access to site. ☐ Undergrunt Develpmat Horal Pit Ou Royal George Mine EL27/2014 BROCKS TNT MINES Great Pyramid Project RL2/2009 Brocks North Block South NOR- PASSPOR GP Block Low CAPEX potential as planned operation can be utilised as a satellite mine to Aberfoyle. Historical Drilling Historical Shaft Historical Adit Zone of Mineralisation Fault Dionte Dyke Shale Mainly Sandstone with Interbedded Shale (locally Silicfied) 599,400 E SOUTH BLOCK NORTH BLOCK 5996 599000mE POUSS 100m 00504 MGA 25 FO 19#20Near-Term Strategy NIUMINCO Continued scale-up of mining & production at EDIE CREEK to achieve a consistent daily processing rate of +40tpd (targeting >200oz per month Au) Consistent production at Edie Creek will provide sufficient positive cash flow to allow Niuminco to: Continue low cost exploration and extension drilling at Edie Creek using own rigs and crew. Complete low cost drilling of 3 targets at BOLOBIP using own rig and crew. Confirm drill targets and commence exploration drilling at SOUTH MAY RIVER. 20 20#21Contact Us NIUMINCO Registered Office Niuminco Group Limited Suite 50 14 Narabang Way Belrose NSW 2085 Australia Tel: +61 2 9450 0828 Fax: +61 2 9450 0877 Email: info@nium inco.com.au Web: www.nium inco.com.au AL 21 21