ASX Announcement 9 November 2016 Investor Presentation Advanced Gold in the Pilbara We are pleased to release an updated presentation with respect to our 100% owned Turner River Project and to be presented to a number of brokers, institutions and shareholders over the coming weeks. The information provides a current update following on from recent drilling activities, resource upgrades as well as near-term planned exploration and development initiatives. For further information: Simon Lill (Executive Chairman) or Andy Beckwith (Geology Manager) De Grey Mining Ltd Phone +61 8 9381 4108 admin@degreymining.com.au ABN 65 094 206 292 Level 2, Suite 9, 389 Oxford Street, Mt. Hawthorn WA 6016 PO Box 281, Mt. Hawthorn, WA 6915 Tel: +61 8 9381 4108 Fax: +61 8 9380 6761 Email: admin@degreymining.com.au Website: www.degreymining.com.au
Flagship Wingina Gold Deposit 5.5Mt @ 1.6g/t for 288,000oz including 1.1Mt @ 4.1g/t for 144,000oz De Grey Advanced Gold in the Pilbara November 2016 Andy Beckwith Website: degreymining.com.au
Statements Cautionary Statement The historical mining study information was previously reported by De Grey Mining in 2009 and is not JORC 2012 compliant. Therefore the Company wishes to emphasise that there is no certainty that mining or positive economics will eventuate once the new drilling of deeper extensions is completed. The Company intends to complete the drilling and update the current JORC 2012 resource estimate and if warranted it is the intention of the Company to progress to a JORC 2012 compliant Mining Study. The 2009 desktop study was based on mineral resources that included inferred resources. There is a low level of geological confidence associated with inferred mineral resources and there can be no certainty that further exploration work will result in the determination of additional measured and indicated mineral resources or that the production targets referred to in the 2009 desktop study will be realised. Competent Persons Statement The information in this report that relates to exploration results is based on, and fairly represents information and supporting documentation prepared by Mr Andrew Beckwith, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy. Mr Beckwith is a consultant engaged by De Grey Mining Limited. Mr Beckwith has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 JORC Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves. Mr Beckwith consents to the inclusion in this report of the matters based on information in the form and context in which it appears. Forward Looking Statements Statements regarding De Grey s plans with respect to its mineral properties and programmes are forward-looking statements. There can be no assurance that De Grey s plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that De Grey will be able to confirm the presence of additional mineral resources/reserves, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of De Grey s mineral properties. 2
De Grey 5 Things to Remember 1. Aiming for Production oxide open pits and centralised mill strategy 2. 366,000oz and targeting 500,000oz in next 6 months 3. High grade internal lode (>4g/t) 4. Actively drilling new resource extensions 5. 100km of prospective shear zone with walk up drill targets Under Valued add DEG to your Watch List 3
Turner River Project ~1000km 2 of prospective tenure Gold Resource BM Resource Planning for gold production from an initial series of oxide open pits and centralised CIL plant Advanced gold project 3 x oxide resources defined Numerous gold targets 100km of prospective shear zone Infrastructure rich mining area Building to economic study Simple metallurgy and processing CIL High recovery >90% 100% owned 4
Corporate Post Consolidation Revitalised explorer Advanced projects Targeting development Funded for further discoveries Actively exploring Board & Management Simon Lill Davide Bosio Steve Morris Craig Nelmes Andy Beckwith Phil Tornatora Exec Chairman Non Exec Director Non Exec Director Company Secretary Geology Under Valued On peer to peer comparison Quality defined oxide resources Excellent exploration potential Large 100% owned portfolio Board and management are focused on building sufficient quality gold resources to enable initial development and production through organic exploration, accretive acquisition and hard work! 5
SPP and Consolidation underway Corporate Total Current SPP* Currently underway Total Pre Consolidation* (assuming 100% SPP take up) TOTAL POST CONSOLIDATION* (subject to shareholder approval at AGM on 30 Nov 2016) ASX Listing DEG, July 2002 $1.25M @ $0.0029 1 for 20 Ordinary Shares 3,323,315,806 431,034,483 3,754,350,289 187,717,514 Options 42,500,000 @ $0.004 Nov 2017 478,692,212 @ $0.002 June 2019 144,887,720 @ $0.005 Oct 2018 1 free option : 3 shares acquired 143,678,161 @ $0.005 Dec 2018 42,500,000 @ $0.004 Nov 2017 478,692,212 @ $0.002 June 2019 288,565,881 @ $0.005 Oct/Dec 2018 40,487,905 ($3.1M) 2,125,000 @ $0.08 Nov 2017 ($0.17M) 23,934,611 @ $0.04 June 2019 ($0.96M) 14,428,294 @ $0.10 Oct/Dec 2018 (1.44M) Market Cap $9.97M @ $0.003 Cash (Sept 2016) $0.4M $1.25M Oct placement $1.25M $2.85M $2.85M *Subject to SPP fully taken up and $1.25M raised Shareholder approvals 6
Corporate The Rebuild 2004 $50M Market Cap same project 2016 $9M YET GOLD NEARLY THREE TIMES THE PRICE 2000 $60,000,000 $900 rise in gold price GOLD AUD$ 1800 1600 1400 1200 1000 800 600 400 200 0 ASX Float Exploration and Discovery Phase Heap Leach Evaluation New Management Third Party JV Phase Exploration Push Overseas Projects Cash spend Exited overseas projects Conserve cash! $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $ MARKET CAP Project Returned Feb 2016 New Geological Review and Team Revitalised Exploration Development Potential Increased gold price DATE AUD$ Au Market Capitalisation $1.25M Placement $1.25M SPP Consolidation Wingina Discovery $0.5M Placement Brink of administration New Management $1.7M Placement 7
Objective & Assets Focus Transition into gold development and mining Gold Pegmatites Base Metals Exploration 366,000oz 3 shallow oxide deposits Wingina 288,000oz 4.1g/t high grade lode from surface Satellites 88,000oz Mt Berghaus 43koz 5000m drilling programme starting next week Amanda 35Koz Drilling extensions Open pit and CIL plant development strategy Recently discovered 7.5km lithium bearing pegmatite trend Li 2 O to 4.2% World class Li Cs Ta style pegmatite province ~40km north of Pilgangoora deposit VMS Zn Pb Ag Au Occur in clusters 2 resources defined Discovery Orchard Tank High grade intercepts Open at depth Untested priority IP targets 60km of prospective Tabba Tabba Thrust 40km of Mallina Shear 6km long Wallareenya gold target Recently acquired untested 10km strike length Numerous other targets Large landholding Ni Cu sulphide and PGE potential Extensive database 100% tenure 8
Development Strategy Wingina Centralised Mill Mt Berghaus Amanda New Deposit(s) 9
Development Strategy Centralised stand alone gold processing facility at Wingina Well with additional oxide ore sourced from satellite pits within 25km trucking distance Stand alone Plant Production Crush, grind and CIL plant with >90% recoveries expected Processing Staged mining of oxide ore from open pits and transitioning to selective underground mining of the high grade ore Mining 366,000 oz Au only 100% owned Potential to increase Wingina (288,000 oz) is the key deposit with consistent high grade (>4g/t) lodes from surface with plunging shoots that may support underground mining Resources 10
Metallurgy Historical Mining Studies (Non JORC 2012 compliant) Assessed in a lower gold price environment - circa $600-900 Focussed on heap leach extraction with only 65% recovery 3rd party JV partner corporate activity halted assessment never completed Review of baseline mining evaluation data indicates: Preferred CIL processing High recovery +90% (likely 94%) Coarse grind (+106 micron) on oxide material Rapid leach times (<12 hours) and low reagent consumption Simple circuit - gravity circuit not required which should help reduce capex Staged mining of initially high grade lodes prior to low grade not evaluated Excellent local infrastructure road, airports, accommodation, port Significantly higher gold price today circa $1700 11
Building the Gold Resources Systematically upgrading each existing resource model Extension infill confirmatory drilling New Resource updates Pit Optimisations Wingina Mt Berghaus Amanda Existing resource Existing resource Existing resource Drilling Drilling Drilling New Deposit(s) Targeting Drilling Environmental Surveys Planning Field surveys New resource model New resource model New resource model New resource model Resource update Resource update Resource update Resource update Nov 16 Pit optimisation Nov Dec 16 Jan 17 Jan 17 Feb 17 Q1 2017 Q1 2017 Q1 2017 Oct 16 Pit optimisation Pit optimisation Pit optimisation Reserve Reserve Reserve Reserve Mt Berghaus 5000m Resource drilling programme starting next week 12
Turner River Gold Resources Wingina High Grade Lode 1.1Mt @ 4.1g/t for 144,000oz Contains 50% of gold in 20% of rock Mt Berghaus extension and infill drilling planned to start mid November 13
Wingina Gold Deposit Averages 1200oz/vm from surface to 140m depth Wingina Shear Zone 1200oz/vm Section looking north east Wingina Shear Zone Au host Looking south west 14
Wingina Gold Deposit Measured Indicated Inferred Resource Categories Long section open open 1,340m Lower grade halo wireframe Long section open Resource 1,340m 700m Long section High Grade Lode 700m High grade (+4g/t) Lode internal wireframe 15
Wingina Gold Deposit - Sections Open pit optimisations to assess: Bulk mining total ore zone Potential flexibility to minimise capex and maximise early cash flow through staged processing of high grade lode Initial high grade feed from high grade lodes while stockpiling lower grade ore for later processing 16
Mount Berghaus Resource Upside 5000m RC Drilling Programme to begin Mid November Targeting extensions, infill and category upgrades Infill drilling Extension and Infill drilling Infill drilling Extension and Infill drilling 17
100km of Shear Zone Potential 60km of prospective Tabba Tabba Thrust and 40km of Mallina Shear Gold Resource BM Resource 18
Wingina Shear Zone Potential Wingina Resource: 5.5Mt @ 1.6g/t for 288Koz Au includes 1.1Mt @ 4.1g/t for 144,0000oz Au RC/DDH DRILLING ONLY RC/DDH drilling is sporadic and shallow except at Wingina Along strike soil anomaly identified not drill tested Amanda Resource: 0.7Mt @ 1.6g/tAu (35KozAu) Along strike soil anomaly identified not drill tested 16m @ 1.57g/tAu (RB96IND14) (Regional RAB intercept) 4m @ 26.9g/tAu (WRC105) (Not in resource) x 7m @ 19.5g/tAu (TRC023) 2m @ 43.2g/tAu (ERC011) (in resource) 3m @ 29.3g/tAu (ERC012) 3m @ 7.3 (incl 1m @ 17.7g/tAu) (ERC008) (No resource estimate done) 10km 19
Wallareenya Gold Target Nuggets recently found in an area where there is no drilling! 20
Base Metal Potential ~25km 2 resources already defined, new resource updates Gold Resource BM Resource De Grey s tenements cover >25km of mineralised Greenstone Belt and possible new extensions 21
Turner River Base Metal Resources Total combined resource 3.5Mt @ 3.2% Zn, 1.3% Pb, 0.8/t Au, 110g/t Ag (8.7%ZnEq) New resource models VMS style Zn Pb Au Ag deposits which are known to cluster Open in all directions Numerous other targets Hakea, Acacia,Cassia, Tabba Tabba 25km of prospective rocks VMS deposits around the world are known to cluster 14.4%ZnEq 8.9%ZnEq 8.6%ZnEq 22
Pegmatite Potential Early stage reconnaissance sampling King Col 7km long new Li Cs Ta prospective pegmatite discovery Lithium rock chip samples to 4.2%Li 2 O over 1.5km Tabba Tabba greenstone host Follow up sampling underway 23
Programs Completed & Planned High news flow, doing what we say and getting on with it! Project Programme Mar Apr May Jun Jul Aug Sep Oct Nov Dec Wingina Mt Berghaus Amanda Resource Review Resource Model Resource Extension DDH drilling Historic mining study review Economic Study Resource Review Resource Review Discovery Resource Review Resource RC drilling SG data Orchard Tank Resource Review SG data Pegmatites Reconnaissance sampling Wallareenya Au Target Reconnaissance sampling Regional Targets Reconnaissance sampling RESOURCE UPDATE GAP ANALYSIS & PIT OPTIMISATIONS RESOURCE DRILLING RESOURCE UPDATE RESOURCE UPDATE SAMPLING SAMPLING SAMPLING RESOURCE UPDATE 24
Investment in De Grey Mining Corporate revitalisation Strong news flow over next quarter Building quality resources Substantial exploration upside Targeting Gold Production 25