The Case for Kun-Manie

Amur Minerals " ■ Nickel Market Status - Supply Deficits To Persist Nickel market has entered a sustained period of deficits from years of Market registers fifth straight quarter of deficit in Q1 2017 Market balance '000 tonnes LME 3-month $/t 80 30,000 under investment in new mines due to years of falling prices Nickel price unsustainable as at current spot prices with almost half of the nickel mining industry losing money Industry living off drawdown of inventory which is dampening price recovery in the immediate term but which can not last Around half of the industry losing money at $10,000/t Business costs $/tonne, 2017 60 40 20 HIL 25,000 20,000 15,000 0 10,000 -20 -40 Balance ⚫LME 3-month 5,000 -60 0 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 20,000 18,000 16,000 NiS Hydro FeNi NPI Price Line 10000 $/t Ni 14,000 12,000 10,000 L 8,000 6,000 4,000 2,000 0 0 500 1,000 1,500 2,000 Cumulative nickel production '000 tonnes Data: CRU Reported and unreported stocks fall further into 2017 Change in stocks '000 tonnes -40 582° 27 0 -20 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 Data: CRU 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 Unreported ■Reported 1Q2017 7

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