#1Archi Indonesia PT Archi Indonesia Tbk Investor Presentation Update - 1H21 Published Date: 03 Aug 2021 E#2Disclaimer IMPORTANT: You must read the following before continuing. In accessing the presentation (this "presentation"), you agree to be bound by the following terms and conditions. The materials in this presentation have been prepared by PT Archi Indonesia Tbk (the "Company" or "Archi") and are general background information about Archi's consolidated business performances as at the date of this presentation and are subject to change without prior notice. This information is given in summary form and does not purport to be complete. Information in this presentation, including if there is any forecast on operational/financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments, as well as does not take into account their particular investment objectives, financial situation or needs. Before acting on any information, readers should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, readers should seek independent financial advice. This presentation may contains certain non-GAAP measures, including All in Sustaining Costs ("AISC") and Earnings Before Interests Tax Depreciation and Amortization ("EBITDA"), that are not audited, not included in the Company's audited financial statements and not presented in accordance with Indonesian Financial Accounting Standards. The measures have been used by management as a supplemental measure of the Company's performance. Although these measures are either contained in or fully reconcilable to line items on the Company's financial statements and/or based on management accounts, they may not be equivalent to similarly named measures used by other companies, and should not be considered as a measure comparable to income statement items for the year in the financial statements. This presentation may contain certain statistical data and analyses (the "Statistical Information") which have been prepared in reliance upon information furnished by the Company and/or third party sources for which the Company has either obtained or is in the process of obtaining the necessary consents for use. Numerous assumptions were used in preparing the Statistical Information, which assumptions may or may not appear herein. As such, no assurance can be given as to the Statistical Information's accuracy, appropriateness or completeness in any particular context, nor as to whether the Statistical Information and/or the assumptions upon which they are based reflect present market conditions or future market performance. Moreover, any information from third party sources contained in these materials may not be used or relied upon by any other party, or for any other purpose, and may not, directly or indirectly, be reproduced, disseminated or quoted without the prior written consent of such third party. This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Archi businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are cautioned not to place undue reliance on these forward-looking statements; past performance is not a reliable indication of future performance. The Company does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. The Company disclaims any responsibility or liability whatsoever arising which may be brought or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither Archi and/or its affiliated companies and/or their respective employees and/or agents accepts liability for any errors, omissions, negligent or otherwise, in this report and any inaccuracy herein or omission here from which might otherwise arise. 2#3Archi at a Glance PT Archi Indonesia Tbk ("Archi") is the 2nd largest (1) pure-play gold producer in Southeast Asia US$240mm of EBITDA for 2020, with a strong EBITDA US$393mm of Revenue for 2020, up from US$347mm for 2018, at a CAGR of 6.4% Margin of 61.1% 0) 0))) % $ A Archi Indonesia 3.9 Moz of Gold Ore Reserves and 5.5Moz of mineral resources as of 2020 Significant Expansion Upside supported by multiple development initiatives and c.40,000 ha of largely untapped concession area Lowest Cost Curve Quartile (2) with a 2020 AISC (3) of US$823/oz 207koz of Gold Production for 2020, up from 61koz for 2011, at a CAGR of 14.6% 10 YEARS Over 10 Years of operational experience with excellent ESG credentials Efficient Operation enabled by metallurgical simplicity, friendly topographical terrain, established infrastructure, skilled workforce and attractive location (2) According to CRU Report, based on 2019 global AISC index. (3) All-in Sustaining Cost ("AISC") as defined by the World Gold Council and calculated in terms of all costs which are required in the mining cycle from the exploration stage up and including the provisions to support the mine closure stage. Note: (1) According to CRU Report, in terms of gold production in 2019. 3#4Asset Overview Asset / Project Operating Companies Location Toka Tindung Gold Mine PT Meares Soputan Mining ("PT MSM") & PT Tambang Tondano Nusajaya ("PT TTN"); both are wholly-owned subsidiaries of PT Archi Indonesia Tbk North Sulawesi, Indonesia Mineral Resources 5.5 Moz (as of end 2020) 3.9 Moz (as of end 2020) Ore Reserves Contract of Work Contract of Works ("CoWs"), expires on 2041 (extendable as IUPK for another 2x10 years) Mine Life Operation History c. 22 years with expansion (as of end 2020) Commenced mining operations in 2009, first gold pour in 2011 Jakarta Toka Tindung Gold Mine Open Pit (with future prospect of underground mining) Mining Method Processing Plant Capacity 4.0 Mtpa lanado Worl Mapanget Likupang Garat COW of PT TTN COW of PT MSM WESTERN CORRIDOR Likupang Selatan Likupang Timur Marawuwung Toka Tindung Araren Blambangan Kopra Talawaan EASTERN CORRIDOR Minahasa Utara Ranowulu Alaskar#5Key Highlights -1H 2021 (30th June 2021) 1 2 3 Consolidated revenues was 9% higher at US$142.4mn, compared to US$130.1mn in the same period last year, supported by higher average gold selling price of US$1,802 per oz compared to US$1,656 per oz. EBITDA was 5% higher at US$75.5mn, net profit recorded 24% higher at US$32.6mn compared to same period last year. Ore processed reached 1.75mn tons, 3% higher compared to 1.70mn tons in the same period last year. Average gold head grade of ore processed lower from 1.81 g/t to 1.66 g/t. Consequently, gold production was 6% lower at 81.6 koz compared to 86.4 koz in the same period last year. 4 5 Promising results from the ongoing exploration program at the high grade Bima gold deposit in Western Corridor. Total net debt was at US$314.2mn, reflecting debt to equity ("DER") ratio of 1.7x, a significant improvement compared to 4.1x as at 31st December 2020. 6 Capex during 1H 2021 amounted to US$76.2mn. All capex spending was funded from internal cash. 7 Company listed its shares on Indonesia Stock Exchange ("IDX") main trading board on the 28th June 2021. Company is expected to achieve gold production of 138 koz - 148 koz in 2H 2021, bringing total gold production to 220 koz - 230 koz for the full year 2021 based on the current mine, reflecting 5% -10% growth in the gold produced YoY. Note: Information as of 30 June 2021. 5#6Mining, Processing & Production Lower gold produced mainly due to lower average gold head grade, despite higher ore processed Total material mined during 1H 2021 increased significantly, due to higher waste removal from a higher grade gold Araren Pit transitioning from stage 3 to the new stage 5. Therefore, total ore mined decreased from 2.3 mn tons to 1.9 mn tons. This resulted in an increase of stripping ratio from 3.3x to 10.2x compared to the same period last year. Strip ratio is expected to normalize as Araren stage 5 Pit moves into production in 2H 2021. Processed higher volume of ore at lower average gold head grade of 1.66 g/t, resulting in lower gold produced of 81.6 koz compared to 86.4 koz in 1H 2020. In 2H 2021, we expect to start mining ores from Araren stage 5 Pit, which contains higher grades of ores. Based on current mine plan, target gold production of 138 koz - 148 koz in 2H 2021, bringing total gold production to 220 koz - 230 koz for the FY 2021, reflecting 5% - 10% growth over FY 2020. Operational Data UOM FY 2019 FY 2020 1H 2020 1H 2021 Ore Mined mn tons 3.5 5.0 2.3 1.9 Waste Mined mn tons 15.5 18.6 7.6 19.5 Material Mined mn tons 19.0 23.6 9.9 21.4 Strip Ratio X 4.4 3.7 3.3 10.2 Ore Processed mn tons 3.30 3.44 1.70 1.75 Avg. Gold Head Grade g/t 2.75 2.12 1.81 1.66 Gold Recovery Rate % 89.3 87.7 87.2 87.2 Gold Produced koz 261.3 206.8 86.4 81.6 CO 6#7Exploration Updates During 1H 2021, the Company continued to intensify its exploration activities, both in the Eastern and Western Corridor, in order to accelerate the finding of new Mineral Resources and Ore Reserves. Toka Tindung Gold Mine's deposits are classified as low sulphidation epithermal gold and silver deposits, with more "free" or native gold and better gold recovery rates compared to other types of deposits. During 1H 2021, Archi predominately mined Toka Pit (a large tonnage lower grade deposit) and the Kopra Pit (medium grade). In addition, completed mining of remaining tonnage in the high grade Araren stage 3 Pit, whilst developing a new mining area at the Alaskar Pit. 1 In Araren stage 5 Pit requires 5 months of waste mining prior to accessing high grade gold. This pre-stripping commenced in March and will be completed by August 2021. Araren stage 5 high grade gold will be the major source of ore to be processed in 2H 2021. Excitement came with the continuing success from the exploration drilling in the Bima gold deposit at Western Corridor, which is located approximately 15km west of the Toka Pit. Five diamond drill rigs have been in operation there since September 2020 and at the time of this announcement, they have completed 80 diamond drill holes amounting to 22,800 metres. These drillings have returned 33 intersections above a nominal cut-off of 20 gram metres, which represents a nominal minimum width of 4 metres at grade of 5 g/t gold. ☐ As of December 2020, the deposit in Western Corridor contained an Indicated and Inferred Mineral Resource of 2.2 Mt at 7 g/t of gold, for a potential of 493 koz of gold produced. These latest results, and additional drilling underway, are expected to significantly increase the Mineral Resources for 2021. Note: (1) Based on Toka Tindung Gold Mine Mineral Resources and Ore Reserves Reports, prepared and verified by SRK Consulting (Australasia) Pty Ltd. NORTH SULAWESI Toka Tindung Marawuwung Blambangan Araren Arch PROGRAM PEMBORAN EKSPLORASI PADA Q2 TAHUN 2021 Kopra Western Corridor Project Alaskar Legend Drillhole Status Compet ⚫On Progress MGM Boundary TTN Boundary 10 KM 7#8Downstream Business Continuous good performance in the gold minting bar business to penetrate domestic retail market In 2019, Archi has started to penetrate downstream business by establishing a 51%-owned JV company, PT Elang Mulia Abadi Sempurna ("EMAS"), which its main business to produce and sell gold minted bars under brand name "Lotus Archi" directly to domestic retailer market. In 1H 2021, PT EMAS recorded US$5.3mn of revenue, 288% higher compared to the same period last year, which reflects c.4% of the Company's total consolidated revenue for the period. PT EMAS Total Revenue (US$ Mn) 0.5 6.9 1.4 5.3 2019 2020 1H20 1H21 8#9Consolidated Profit & Loss Statement -1H 2021 Higher revenue and profitability as results from higher average gold selling price Archi's consolidated revenues of 1H 2021 was at US$142.4mn, an increase of 9% compared with US$130.1mn of 1H 2020. Increase in revenue was mainly driven by higher average gold selling price of US$1,802 per oz, an increase of 9%. Archi's EBITDA of 1H 2021 was at US$75.5mn, an increase of 5% compared with US$71.7mn of 1H 2020. Net profit increased by 24% to US$32.6 mn. Increase in profitability was mainly driven by 9% higher average gold selling price and 16% lower mining costs from US$3.35 per ton to US$2.83 per ton. Absolute mining costs were higher due to short term increase in stripping ratio due to opening Araren stage 5 Pit. Selected Key Items In US$ million, For the year ended 30th June unless stated otherwise 2021 2020 % chg Revenue 142.4 130.1 9 Cost of goods sold (81.8) (64.9) 26 Gross profit 60.6 65.1 (7) Selling, general & administrative expenses (4.4) (7.3) (40) Other income/ (expenses) 6.1 (1.2) 618 Income from Operations 62.2 56.6 10% Finance income/ (costs) (10.9) (12.4) (11) Share of profit in associates 0.5 100 Profit before income tax expenses 51.8 44.3 17 Income tax expenses (19.2) (18.0) 6 Net profit 32.6 26.2 24 EBITDA (1) 75.5 71.7 5 Note: The financial results for the six months' period ended 30th June 2021 and 2020 have been prepared in accordance with Indonesian Financial Accounting Standards and are unaudited. (1) EBITDA refers to profit for the year before finance costs, finance income, income tax expense, depreciation and amortization. 6#10Consolidated Statement of Financial Position - 30th June 2021 Selected Key Items In US$ million, unless stated otherwise As at As at % chg 30th Jun 2021 31st Dec 2020 Cash and cash equivalents (1) 16.1 40.2 (60) Inventories current Other current assets 35.5 31.2 14 86.8 30.6 184 Total current assets 138.4 101.9 36 Inventories - non current 93.9 89.1 15 Fixed assets 174.6 143.1 22 Mine properties 222.0 196.7 13 Exploration and evaluation assets 55.4 48.9 13 Other non-current assets 29.4 20.5 43 Total assets 713.7 600.2 19 Short term bank loans 19.6 2.3 752 Trade payables 36.9 8.3 343 Current maturities of long term liabilities 68.2 68.6 (1) Total current liabilities 178.1 126.0 41 Non-current liabilities 293.1 326.4 (10) Total liabilities 524.5 505.9 4 Non-controlling interest Total equity 0.05 189.2 0.02 166 94.3 101 Note: Healthy balance sheets position with low debt to equity ("DER") level Approximately US$65mn of gross IPO proceeds received at the end of June 2021, with c.US$60mn recorded as restricted cash toward debt reduction. Higher fixed assets and mine properties mainly from higher capex spending on mine development for Araren stage 5 Pit, plant expansion project, exploration activities and land acquisitions. Increased in short term bank loans due to additional working capital loans drawdown in March 2021. Higher trade payables were mainly due to significant increase in mine development and exploration activities. Total net debt (2) was at US$314.2mn on 30th June 2021, calculated as total interest bearing debts of US$380.9mn reduced by restricted cash in relation to Debt Service of US$66.7mn. In early July 2021, the Company had paid a portion of the long term bank loan amounted to US$59.3 mn from the IPO proceeds. Therefore, Archi's debt to equity ("DER") ratio is now at 1.7x, a significant improvement compared to 4.1x as at 31st December 2020. The financial position as at 30th June 2021 have been prepared in accordance with Indonesian Financial Accounting Standards and are unaudited. The financial position as at 31st December 2020 has been prepared in accordance with Indonesian Financial Accounting Standards and audited in accordance with the auditing standards established by the Indonesian Institute of Certified Public Accountants. (1) Cash and cash equivalents were excluding restricted cash in relation to Debt Service amounted to US$66.7 mn, (2) Net Debt is calculated as the total balance of interest bearing debt reduced by current restricted cash in relation to Debt Service. 10#11Consolidated Statement of Cash Flow -1H 2021 Selected Key Items In US$ million, unless stated otherwise For the year ended 30th June 2021 2020 chg Net cash flows provided from operating activities 64.4 14.7 Net cash flows used for investing activities (75.7) (20.1) 49.7 (55.5) Net cash flows used for financing activities (12.7) (2.9) (9.8) Net increase / (decrease) in cash & cash equivalents (23.9) (8.3) (15.6) Net effect of foreign exchange rate changes (0.1) 0.03 (0.1) Cash on hand and in banks at the beginning of the period Cash on hand and in banks at the end of the period 40.2 48.4 (8.2) 16.1 40.2 (24.1) Strong liquidity to support sustainable operations and capital expenditures requirements Cash flows provided from operating activities of 1H21 was US$64.4mn, primarily comprising cash receipts from customers of US$146.6mn, partly offset by cash paid to contractors and suppliers of US$35.0mn and corporate income tax payment amounted US$18.8mn. Cash flows used for investing activities of 1H21 was US$75.7mn, mainly used for capex spending for mine development activities on the Araren stage 5 Pit, plant expansions, as well as land acquisitions in the Western Corridor area. Cash flows used in financing activities of 1H21 was US$12.7mn, primarily for repayment of bank loans amounted to US$34.1mn, partially offset with additional working capital loan of US$17.5mn. Overall, as at 30th June 2021, the Company's cash and cash equivalents were at US$16.1mn. This cash balance excluded restricted cash in relation to Debt Service amounted US$66.7mn, which include IPO proceeds, of which US$59.3mn has been used in early July for reduction of long term debt. Note: The financial results for the six months ended 30th June 2021 and 2020 have been prepared in accordance with Indonesian Financial Accounting Standards and are unaudited. 11#12AISC and Cost Reduction Initiatives All-in Sustaining Costs (1) in 1H 2021 increased to US$1,122 oz due to higher absolute mining costs In 1H 2021, total absolute mining costs was higher due to higher stripping ratio resulting from pre-stripping of new Araren stage 5 Pit. However, mining costs per ton was lower by 16%. We expect the stripping ratio to normalize in 2H 2021. | Processing costs increased due to lower average gold head grade of total ore processed during the period. Site Support 8% Processing 27% 1H20 US$938/oz Mining 38% Royalty 2% Royalty 8% Sustaining capex 24% Site Support 12% Others 3% By credit (2%) Processing 25% Sustaining capex 30% Others (4%) 1H21 US$1,122 / oz By credit (5%) Implemented Cost Reduction Programs to Further Reduce Operating Cost Profile Upgraded mining fleets used by mining contractors Appointed new mining contractors on better terms: through associate company PT Geopersada Mulia Abadi (PT GMA) Increased Processing Plant capacity to 4.0 Mtpa in 2021 and 5.6 Mtpa by end 2022 Opting for cheaper power sources, secured through PLN as the main energy supplier Note: Mining 34% (1) All-in sustaining cost ("AISC") as defined by the World Gold Council and calculated in terms of all costs which are required in the mining cycle from the exploration stage up and including the provisions to support the mine closure stage. 12#13Debt Repayment Schedule Existing Debt Conventional Facility and MMQ (excl. amortized costs) Repayment Schedule (US$ Mn) 400 Outstanding Balance Interest Rate (as at 30th June 2021) Tenor (Years) Maturity Date US$367mn (1) LIBOR JIBOR + 4.00% (1) 5.0 2025 127 68 68 68 273 205 137 69 2020 2021 2022 Debt Position (end of year) Note: (1) In early July 2021, a portion od Debt amounted to US$59.3mn had been paid from the IPO proceeds. (2) Project life coverage ratio = Remaining free cash flow up to Life of Mine (LOM) + ending cash balance for the period ) / net debt. (3) Ratio is based on JORC Compliant Ore Reserves / Ore reserves at the Maturity date up LOM. 2023 Debt Repayment Schedule Covenants Total debt/EBITDA < 3.0x DSCR > 1.1x Project life coverage ratio (2) > 1.25x Ore reserve tail ratio (3) > 20% 69 69 2024 2025 13#14Corporate Action(s) On the 28th June 2021, PT Archi Indonesia Tbk officially listed its shares on the main trading board of the Indonesian Stock Exchange ("IDX") through an Initial Public Offering ("IPO") scheme. Archi's stocks are traded on IDX main board with ticker code "ARCI". Sold 3,725,250,000 of common stocks, representing 15.00% from issued and paid-up capital of the Company after the IPO, at initial price of Rp750 per share. Archi appointed PT Citigroup Sekuritas Indonesia, PT Credit Suisse Sekuritas Indonesia, PT Mandiri Sekuritas, PT BNI Sekuritas, and PT UOB Kay Hian Sekuritas as the joint-lead underwriters. Arch. Indone. 14#15Archi Indonesia Appendix#16Key Investment Highlights 1 2 The 2nd Largest Pure-play Gold Producer in Southeast Asia, with 10 years of Proven Operation Track Record Strong and Proven Exploration Track Record Supports Significant Development Potential and Exploration Upside 3 Structurally Low Cost Base with Proven Track Record of Efficient and Uncomplicated Operations 4 Strong and Sustainable Free Cash Flow Generation Even at Low Gold Prices 5 6 Strong Sponsorship from a Reputable Indonesian Conglomerate with a Track Record of Building World-class Operations and Creating Shareholders' Value Highly Experienced Key Senior Management 7 Strong ESG Commitment with Established Policies 16#17Mineral Resources & Ore Reserves Resources and Reserves (1): 3.9 Moz gold reserves and 5.5 Moz gold resources as of 31 December 2020 Note: Category Tonnage (Mt) Gold Grade (g/t) Contained Gold (Koz) Silver Grade (g/t) Contained Silver (Koz) Proven 18.2 1.1 667 2.6 1,521 Reserves Probable 80.1 1.3 3,218 2.6 6,597 TOTAL 98.3 1.2 3,884 2.6 8,118 Measured 19.7 1.1 696 2.0 1,583 Indicated 97.2 1.3 3,942 3.0 7,969 Resources Inferred 28.8 1.0 890 2.0 1,401 TOTAL 145.8 1.2 5,528 2.0 10,953 Toka Marawuwung Deposit Alaskar Araren Talawaan Корга Stockpile Total Ore Reserves Contained Ore Reserves Ore Reserves Grade Mining Companies Gold (Koz) Silver (Koz) Gold (g/t) Silver (g/t) 1,124 2,336 0.8 1.6 MSM 331 465 0.9 1.3 MSM 146 532 3.0 11.0 TTN 1,448 2,583 2.0 3.6 MSM & TTN 215 325 7.6 11.5 TTN 459 1,506 1.5 4.9 TTN 161 371 0.8 1.7 MSM & TTN 3,884 8,118 1.2 2.6 (1) Based on Toka Tindung Gold Mine Mineral Resources and Ore Reserves Reports, prepared and verified by SRK Consulting (Australasia) Pty Ltd. 17#18Growth Strategy - Exploration Note: Low Range High Range Exploration Targets Tonnage (Mt) Grade (g/t Au) Ounces (Koz) Tonnage (Mt) Grade (g/t Au) Ounces (Koz) Near mine 40 1.5 2,000 54 2.7 4,800 Talawaan 23 2.9 2,100 36 3.6 4,200 Greenfields 36 1.1 1,200 83 1.6 4,000 TOTAL 100 1.7 5,300 173 2.4 13,000 TFG0012 TFG0013 Near Mine Target Area TGF0007 TFG0014 4 TGF0006 MARAWUWUNG TGF0001 TOKA ★ TGF0002 TFG0008 TFG0011 TFG0010 TGF0003 * KOPRA BONE X TGF0004 TFG0009 TALAWAAN TGF0005 X Existing Deposits Greenfields Targets Near Mine Targets External consultants have identified a potential multi-million ounces target range for growth within the CoWs concession areas of Toka Tindung Gold Mine. In addition, the resource to reserve conversion ratio is lower than its historic level, providing immediate drill targets for additional reserves in 2021 and 2022. The exploration budget is sufficient to make new discoveries and bring them into production. With a 22 year mine life (1), Archi has the time to repeat the success of the past few years. *ENMINTECH notes that the potential quantity and grade of the exploration targets are conceptual in nature. There has been insufficient exploration completed in the areas of the exploration targets and it is uncertain if further exploration will result in the estimation of a mineral resource. (1) SRK reserves validation case using mining and stockpiles in later years 18#19Growth Strategy - Processing Plant Upgrade and expansion of the Processing Plant to enable higher processing throughput to become a centralized plant to process ores from both the Eastern Corridor and the Western Corridor. 2021 - 2022 2022 - 2025 Upgrade and expand the Processing Plant capacity to 5.6Mtpa by end 2022. By end of 2025(1), the Processing Plant will be able to process up to 8.0 Mtpa of throughput to cater both the Eastern Corridor and the Western Corridor. 4.0 Q2 2021 5.6 2022E Note: (1) Processing Plant capacity of 8.0 mtpa is expected by end of 2025, full impact will be reflected in 2026 operation. ~450 koz of Gold Production Capacity (with the assumption of average Gold Head Grade maintained at least 2.0 g/t) 8.0 2026E 19#20Business Overview Exploration Mining Mine Planning Drill & Blast Grade Control Load & Haul Processing Processing Plant 00 Refining in-house Archi's team undertakes a range of exploration activities under the leadership of Shawn Crispin (CGO), Andri Taufik (Head of Exploration) and Sonia Konopa (Head of Mineral Resources), each with 30 years, 15 years and 30 years of industry experiences respectively. Archi has 5 drilling rigs available on site (1). Experienced exploration and geology team (exploration: c.95 members and geology: c.52 members)(1). Mining at site is undertaken by mining contractors using conventional commercial-scale open pit mining methods with low mining costs. Archi is responsible for the mining plan and overall management. Recently replaced 40-ton fleet with 100-ton fleet accommodate bigger operation and further reduce transportation costs. to Gold Dore Process utilizes a standard Carbon in Leach design. Its tailings storage facility has sufficient capacity to support its operations. The final product of processing operations is Dore bars which consist of approximately 30% to 45% gold, and 55% to 70% silver. Continually expand processing capacity from 1.7 Mtpa in 2011 to 4.0 Mtpa in 2021 with further expansion opportunities. The Gold Granule dore bars are sent to Refinery company which to be refined into granule (Au 99.99% and Ag ~ 99.95%). Buyer collects the product from refinery company by using transporter (ex-work). Buyers/ Cash Received Note: (1) Data as of 30 Jun 2021. Established exploration, mining and processing activities with no fatality incidents 20 20#21Strategy to Mitigate Covid-19 Pandemic Archi has adopted anti-pandemic measures and implemented health and safety guidelines for all its employees to mitigate the impact of COVID-19. Impact of COVID-19 on Archi's Operations The COVID-19 pandemic has affected and may continue to affect Archi's ability to continue doing business with its customers, suppliers, contractors, and other parties. The COVID-19 impact on 2020 production was around 50 koz, and insignificant impact YTD June 2021. Examples of COVID-19's impact on Archi's business: Measures to Mitigate Impact of COVID-19 ☐ Archi has spent a significant amount of effort and resources in 2020 and YTD June 2021 as a result of COVID-19 to implement countermeasures, preventative measures and other self-imposed health and safety practices to comply with regulations and HSE standards عليم Telecommuting Redesigning and refurbishment of the secondary mill electrical control system was postponed from Q1 2020 to Q4 2020 In early March 2020, Archi's foreign suppliers were unable to commission projects for process control and pebble crushers due to travel restrictions Limiting face-to-face meetings Restricting domestic and overseas business travel Mobilization of the mining fleet of 100-tons trucks owned by our associate company, PT GMA, was delayed from Q3 2020 to Q4 2020 L The regulatory approval for river diversion for the Araren pit was delayed from Q1 2020 to Q1 2021 Nonetheless, there has not been any significant disruptions to Archi's operations as a result of COVID-19 to date Implementing quarantines and 100% PCR testing for FIFO employees or external contractors prior to visits to mining sites Conducting regular COVID-19 tests, health and safety checks 21#22Key Milestones □ Rajawali Group privatized Archipelago Resources PLC and delisted Archipelago Resources PLC from the Alternative Investment Market of the London Stock Exchange Plc □ Acquired 5.0% stake of MSM and TTN from Rajawali Group ☐ First ore mined at Toka Tindung Gold Mine in January □ Completed the construction of the Processing Plant, and first gold poured in April PT Archi Indonesia (Archi) was incorporated □ Rajawali Group acquired a non-controlling minority stake in Archipelago Resources PLC ☐ Rajawali Group acquired a controlling interest in Archipelago Resources PLC Commenced mining operation at Toka Tindung Gold Mine with waste removal Commenced construction of the Processing Plant and infrastructure ☐ Engaged an associate company, PT Geopersada Mulia Abadi (GMA), as the new mining contractor supported with a larger mining fleet ☐ Utilized electrified water pumps to replace diesel pumping to improve cost efficiency Expanded business into the downstream sector (gold minting bar) through establishment of PT Elang Mulia Abadi Sempurna (EMAS) ☐ Added an additional 941koz of Ore Reserves in the Eastern Corridor ☐ Directly owned 99.5% of MSM and TTN, and ARPTE owned 0.5% of MSM and TTN ☐ Completed expansion of the Processing Plant to exceed 3.0 Mtpa ☐ Enhanced exploration drilling program and increased exploration equipment to 17 rigs so to quickly identify additional Ore Reserves □ Commenced a 3.0 Mtpa expansion project for the Processing Plant 2018 2019 2020 on ☐ Listed Indonesia Stock Exchange (Initial Public Offering / IPO) 2021 2017 ☐ Pursuant to another restructuring, which acquired 95.0% of MSM and TTN. ARPTE now owns 5.0% of MSM-TTN □ Reached gold production above 200koz □ Increased Processing Plant to 2.1 Mtpa ☐ Revised feasibility study conducted on Toka Tindung Gold Mine ☐ Pursuant to a restructuring, which acquired ARPTE from Archipelago Resources PLC, which owns 95.0% of MSM and TTN ☐ Revised feasibility study conducted on Toka Tindung Gold Mine ☐ PT Tambang Tondano Nusajaya (TTN) was incorporated □ PT Meares Soputan Mining (MSM) was incorporated 2016 2015 2014 2013 2011 2010 2009 2005 1997 1986 Note: Information as of 30 June 2021. 22 22#23Shareholding Structure Note: 0.50% Public Archipelago Resources PTE LTD 99.50% 99.50% 100.00% 0.50% PT Meares Soputan Mining (MSM) PT Tambang Tondano Nusajaya (TTN) Toka Tindung Gold Mine CoW Concession Holders RAJAWALI CORP 84.99% 15.00% Archi Indonesia 99.96% 0.01% 99.99% 99.99% PT Wijaya Anugrah Cemerlang 51.00% PT Jasa Pertambangan Perkasa (JPP) (1) PT Karya Kreasi Mulia (2) (KKM) PT Elang Mulia Abadi Sempurna (3) (EMAS) 25.00% PT Geopersada Mulia Abadi (GMA) (1) Holding company of mining services, which holds 25.00% of PT GMA, our mining contractor. (2) Commenced operations in 2018, providing general management and support services in the areas of tax, legal and accounting exclusively for Archi, PT MSM and PT TTN. (3) A joint venture company incorporated in April 2019 to produce minted gold bars for which we hold 51.0%. 23#24Key Management Board of Commissioners Rizki Indra Kusuma President Commissioner ☐ Appointed as Commissioner in 2020 ☐ Currently Managing Director Legal of PT Rajawali Corpora ☐ Previously served as a lawyer at DNC Law Firm and Makarim & Taira S Law Firm Abed Nego Commissioner ☐ Appointed as Commissioner in November 2016 ☐ Currently Chief Financial Officer of PT Rajawali Corpora ☐ Previously served as Director of Finance at PT Rajawali Corpora and in various roles in the Rajawali Group Ali Abbas Badre Alam Commissioner Appointed as Commissioner in 2021 ☐ Currently Managing Director of Investment and Performance. Management of PT Rajawali Corpora ☐ Previously served as Managing Director Co-Head APAC Financing in Credit Suisse, A.G. Singapore and Hong Kong and also Assistant Manager Investment Banking in Citibank Pakistan Dr. Ir. Bambang Setiawan Independent Commissioner 41 ☐ Appointed as Independent Commissioner in February 2021 ☐ Currently Independent Commissioner at PT Golden Energy Mines Tbk, PT Jogja Magasa Iron, PT Kalimantan Surya Kencana and PT Thiess Contractors Indonesia ☐ Previously worked as General Director of Mineral and Coal, Ministry of Energy and Mineral Resources Hamid Awaluddin Independent Commissioner 10 ☐ Appointed as Independent Commissioner in February 2021 Currently President Commissioner at PT Delta Dunia ☐ Makmur and PT Surya Esa Perkasa Tbk and also President Director at PT Adimitra Barata Nusantara ☐ Previously worked as Special Advisor at Tambang Emas Australia Board of Directors and Key Management Ken Crichton President Director/CEO 35 Rudy Suhendra Vice President Director Deputy CEO Shawn David Crispin Director/CGO 30 Adam Jaya Putra Director/CFO David Sompie Director/CCO 25 Appointed as CEO in May 2021 ☐ Currently Managing Director Mining of PT Rajawali Corpora Previously President Director at Thiess Contractor Indonesia and Leighton Contractor Indonesia, Head of Operations at the Lihir Gold Mine of Newcrest, and had various roles with BHP ☐ ☐ Appointed as Deputy CEO in November 2019 Worked with Archi Indonesia since 2016 as Chief Financial Officer ☐ ☐ Appointed as Chief Geologist Officer in May 2021 Over 30 years' experience in mining and exploration. ☐ ☐ Held several positions in PT Eagle High Plantation Tbk ☐ Previously worked as an external auditor at PwC Indonesia ☐ Previously held senior management positions in Martabe Gold Mine and Ok Tedi Mine Appointed as Chief Financial Officer in November 2019 ☐ Employed at PT Rajawali Corpora since 2010 with the latest position as Investment Director ☐ Previously worked at financial institutions including MUFG and Nikko Securities ☐ Appointed as Chief Corporate Officer in early 2019 ☐ Has worked as President Director of PT Newmont Minahasa Raya from 2011. Previously served different roles in PT Newmont Minahasa Raya Marine Engineering from UNSRAT ☐ Position in NMR as Environmental Manager Number of years experience in respective industry. 24#25ESG Commitment Archi will make continuous efforts on sustainable operations and strive to maintain its position as an ESG leader, as recognized by various industry bodies and the Indonesian government. Soil and Mine Management Progressive reclamation of mine sites Manage and minimize environmental impact Erosion and sedimentation control Community Relationship Maintain a strong relationship with the local communities Continue to be a major employer to the local residents Environmental Baseline and Monitoring Re-vegetation with the mine closure model approach Optimize the use of water resources Reduce greenhouse gas emissions and conventional emissions ESG Social Programs Infrastructural programs including village development Educational programs including scholarships, STEM training and apprenticeships Safety management New business programs Improving Mining Practices Optimize way to operate mines by adopting model practices from other established mine sites around the world Other Key Community Initiatives "Clean Water Project" Animal husbandry projects ☐ Healthcare programs including COVID-19 control 25#26ESG Practice Assessment ESG Assessment Results at Toka Tindung Gold Mine | On January 2021, Archi engaged voluntarily with PT Lorax Indonesia (¹), an independent environmental consultant company, to assess ESG practive in Toka Tindung Gold Mine. The assessment results came out that Toka Tindung Gold Mine received Outperform rating in Social aspects, while Exceed rating in the Environment and Governance aspects. The assessment was done by comparing Toka Tindung Gold Mine with the other operating mining companies in Indonesia. ENVIRONMENTAL SOCIAL GOVERNANCE Sub-Categories Score Sub-Categories Score Sub-Categories Score Environmental Management System & Improvement Outperform Safety Management & Employee Education Exceed ESG Reporting Technical Competency Opportunity Land Use & Biodiversity Outperform Community Relations Outperform Board of Directors Exceed Energy Use & Green House Gases Emissions Improvement Local Employment & Procurement Outperform Management Compensation Outperform Opportunity Water Use Exceed Employee Relations & Diversity Outperform Anti-Corruption Policy Exceed Tailings & Waste Management Exceed Mine Closure Plan Exceed Exceed Outperform Exceed Outperform Exceed Improvement Opportunity Complied with Indonesia Law & Mining Regulation and International Best Practice; Positioned in the Top 20 Percentile of Mining Companies in Indonesia Complied with Indonesia Law & Mining Regulation and International Best Practice; Positioned in the Top 50 Percentile of Mining Companies in Indonesia Complied with Indonesia Law & Mining Regulation and International Best Practice; Positioned in the Bottom 50 Percentile of Mining Companies in Indonesia Note: (1) PT Lorax Indonesia ("Lorax") is part of Lorax Environmental Services Ltd, an independent environmental consulting firm based in Vancouver, Canada. 26#27CSR Programs Social & Cultural ☐ Biodiversity conservation ☐ Forest conservation Worship facilities construction Health ☐ Health post centre 1,000-days life program ☐ Covid-19 prevention Education ☐ Scholarship education Teacher training Public library Note: M Economy ☐ Micro economy development Sustainable integrated farming Infrastructure ☐ Clean water project ☐ Public facility construction Information as of 30 June 2021. Jalan Likupang- Bitung, Minahasa Utara Monday, 25 January 2021 08.25 Basic foods donation in response to Covid-19 pandemic Integrated chicken poultry cultivation as part of animal husbandry programs Conservation of Mangrove and Coral Reefs in near-mine areas Rabu, 13 Jariuari 2021 11:35:32 1,0543N 125,1095E Unnamed Road Maen Likupang Timur Kabupaten Minahasa Utara Sulawesi Utar Altitude-0.2 Speed: 1.2 Development of corn seed production for independent group PUSKESMAS PEMBANTU PUT KELURAHAN PINASUNDHOLAN KADARZA Rice field cultivation program for villages Integrated health service (Posyandu) activities 27 22#28Archi Indonesia Thank You For further information, please contact: [email protected] ; or visit: www.archiindonesia.com