Frieda River Copper-Gold Project

Dr Fred HessAPNG Association, 10 November 2015

Project overview

Koki

Ekwai

Nena

The project history is approaching 50 years

First discovered

1960s 2014

Several project owners

PanAust 80% acquired

1970s 1980s 1990s 2000s

Frieda River has its challenges

We are aware of the risks

The prize…

For PanAust:A strategic project that could

operate for 30+ years

For PNG:A nation-building ‘Project of

National Significance’ capable of opening up the region and boosting economic development

We can leverage ourexperience gained in Laos

Phu Kham Copper-Gold Operation Ban Houayxai Gold-Silver Operation

Operational excellence

Frieda River Copper-Gold Project, PNGPhu Kham Copper-Gold Operation, Laos

Familiar terrain

We value sustainability

Education

Small businessdevelopment

Infrastructure

Health careAgriculture

We enjoy strong government and community support

What our partner can contribute

Highlands Pacific has a wealth of experience in PNG

What our predecessors have contributed

Much quality work was done at Frieda River prior to PanAust’s acquisition

However….PanAust saw a different pathway to unlocking value

Our strategic pathway to success

Start small

Think big

Our strategic pathway to success

Think big

Frieda River will be executed as

an integrated set

of smaller projects

MineOperations

ProcessPlant

Integrated storage facility

PowerSupply Non

ProcessInfrastructure

Transport Logistics

A wealth of development and operational experience in the team

Dr Fred HessManaging Director

Stacey BarlowExecutive GM,

Projects

Peter Walker

GM, Tech Services & Processing

Improvement

Peter Trout

GM, Tech Services Mining

& Geology

Scott Cowie

GM, Frieda River Studies

Herman Dittmar

GM, Project Implementation

Andrew PriceChief Financial

Officer

Joe Walsh

GM, Corporate Development

David Hairsine

GM, Finance & Treasury

Glen Connell

GM, Government & Community

Relations (PNG)

Paul Scarr

General Counsel

Adrian Bell

GM, HR & Risk Management

Geoff Kernick

GM, Commercial

We have gained further knowledge following acquisition

• Seismic, hydrogeological, geotechnical and river bathymetry field programs

• Laboratory testing to support geotechnical and metallurgical evaluations

• Geological modelling

• Engineering studies relating to mining, ore processing, waste rock storage, logistics and power generation

• Technical and economic evaluations to support the proposed development concept

• Planning for an exploration access track between the Frieda River and the project site

• Preliminary discussions with potential financiers

The dream is taking shape

HIT pit

ISF embankment

Access road

ISF high water level

concentrator

Waste conveyor

power station

quarries

Raw water intake

Tailings pipeline

camp

A world-class copper deposit being advanced by an experienced project team

who are applying the many lessons of the past to define a robust project scope of work

that will operate for 30+ years, and generate immense economic benefit to Papua New Guinea.

…now, if only metal prices would recover!

Em tasol Lukim yu bihain