170720-1 New Century Resources Investor Presentation · $&48,5,1* 2) &(1785< 0,1( 9,$ 0 ($51 ,1 )25...

$: 170720-1 New Century Resources Investor Presentation · $&48,5,1* 2) &(1785< 0,1( 9,$ 0 ($51 ,1 )25 :,7+ 237,21 29(5 5(0$,1,1* $ 0 sd\phqwv rffxuulqj prqwko\ )xqgv dydlodeoh iru ixwxuh$
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CENTURY ZINC MINE‘DEVELOPING THE LARGEST NEAR TERM ZINC & LEAD PRODUCER ON THE ASX’

Investor PresentationJuly 2017

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Disclaimer

Forward-Looking StatementsThis presentation contains forward-looking statements which are identified by words such as "believes", "estimates", "expects", "targets", "intends", "may","will", "would", "could", or "should" and other similar words that involve risks and uncertainties. These statements are based on an assessment of presenteconomic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this presentation, areconsidered reasonable. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties,assumptions and other important factors, many of which are beyond the control of the Company and the Directors of the Company. Actual results todiffer materially from those expressed in any forward-looking statements. The Company has no intention to update or revise forward-looking statements, orto publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the informationcontained in this presentation, except where required by law. The Company cannot and does not give assurances that the results, performance orachievements expressed or implied in the forward-looking statements contained in this presentation will actually occur and investors are cautioned not toplace undue reliance on these forward-looking statements.

Competent Persons StatementsThe information in this presentation that relates to Exploration Results and Mineral Resources (as that term is defined in the JORC Code 2012) in respect tothe Century Project was reported by the Company in its prospectus released to ASX on 20 June 2017. The Company confirms that it is not aware of anynew information or data that materially affects the Century Project resource estimate, and that all material assumptions and technical parametersunderpinning that estimate continue to apply and have not materially changed.

The information in this report relating to Exploration Results and to JORC Compliant (Coal) Resources and Reserves for the Gurnee Property at the KodiakCoking Coal Project in Shelby County, Alabama, USA has been reviewed and is based on information compiled by Mr Alan Stagg of Stagg ResourceConsultants Inc. Mr Stagg is a Registered Member of the Society of Mining, Metallurgy, and Exploration, Inc. (SME), registration number 3063550RM, andhas sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he isundertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Mineral Resources and OreReserves”. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it waslast reported. The information in this report relating to the JORC Compliant (Coal) Resource for the Seymour Property has been reported in accordancewith the JORC Code 2012. Mr Stagg consents to the inclusion in the report on the matters on this information in the form and context in which it appears.

Photographs and DiagramsPhotographs used in this presentation which do not have descriptions are for illustration only and should not be interpreted to mean that any personshown endorses this presentation or its contents or that the assets shown in them are owned by the Company. Diagrams used in this presentation areillustrative only and may not be drawn to scale. Unless otherwise stated, all data contained in charts, graphs and tables is based on information availableat the date of this presentation.

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Presentation Summary

2. Company & Zinc Market Overview

3. Mine Overview & Economic Rehabilitation Plans

4. In-Situ Resources & Exploration Overview

5. Kodiak Coal Project Update

1. Acquisition Highlights

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• JORC Indicated & Inferred resource: 2,185,000t Zn, 341,000t Pb, 11Moz Ag• Century Tails (surface ore): 71.0Mt at 2.73% Zn• Silver King (OP & UG): 2.7Mt at 6.9% Zn, 12.5% Pb, 120g/t Ag• East Fault Block (OP): 0.52Mt at 11.6% Zn, 1.1% Pb, 48g/t Ag

• 40 high grade vein style targets with significant historical drilling intercepts

• Significant phosphate mineralisation amenable to processing via existing plant

• 783km2 tenement package* for exploration upside (Zn, Pb, Cu, Co, P2O5)

*Package includes EPM10544, transfer to New Century is still underway as at date of this presentation. See Prospectus dated 20 June 2017 for further information.

Century Acquisition HighlightsMINERAL RESOURCES ACQUIRED

Century Tails

SK Cross Section

Silver King

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Century Acquisition HighlightsSITE INFRASTRUCTURE ACQUIRED

• 7.0Mtpa processing plant & operationally ready mine site

• 700 man accommodation camp

• Grid power connection available

• Private airport with sealed runway

• Significant mobile fleet remaining

• Full on-site laboratory (to be NATA certified)

• Three full storage warehouses

Maintenance & Admin Buildings

Processing Plant

Accommodation Camp

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Century Acquisition HighlightsSITE INFRASTRUCTURE ACQUIRED

Flotation Circuit(1 of 2 trains)

Maintenance Area & Mobile Fleet

Milling Circuit

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Century Acquisition HighlightsSLURRY PIPELINE ACQUIRED

• 304km slurry pipeline

• Pipeline within fully permitted 80m wide easement

• Only economic route for the transport of bulk concentrates within 150km

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• Karumba Port Facility (80,000t storage & bulk loadout)

• MV Wunma - 5,000t capacity transshipment vessel

MV WunmaKarumba Port Facility

Century Acquisition HighlightsPORT FACILITIES ACQUIRED

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Century Acquisition HighlightsOTHER COMMERICAL ASSETS ACQUIRED

• Cattle Stations: • 49% interest in the Lawn Hill & Riversleigh Pastoral Company

• >7,000km2 of land across two adjoining stations

• Currently running 38,000 head of cattle (underutilised)

• Property Portfolio: 13 residential properties in Karumba

• Ongoing Financial Assistance:• MMG providing $46.6M over 3 years (~$23.6M received)

• MMG maintaining $193.7M financial assurance bond (as calculated by QLD government) until 31 December 2026

Lawn Hill Station Lawn Hill Cattle Muster

Cattle Station Map

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Century the largest near term producing zinc & lead mining project on the ASX

1. Accurate as at May 20172. Source: The Sophisticated Investor (from publicly available information)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

JORC

Con

tain

ed M

etal

(t)

Zinc Lead

Heron[HRR]

Venturex[VXR]

Consol. Tin[CSD]

Red River[RVR]

PNX Metals[PNX]

Energia[EMX]

NEW CENTURY[NCZ]

ASX Listed Near Term Zinc Producers

Potential near term producer

Infrastructure in Place

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Presentation Summary





5. Kodiak Coal Project UpdateFor

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New Century Resources Capital StructureACQUIRING 100% OF CENTURY MINE VIA $10M EARN IN (FOR 70%) WITH OPTION OVER REMAINING 30%

* A$5.75M payments occurring 6 monthly ** Funds available for future native title commitments only

NCZ 295,724,750 80,500,000 $44.3MASX CODE SHARES OPTIONS

($0.25 - $1.00/share, av. price $0.41/share)

MARKET CAP(at $0.15/share)

Cash at Hand

Further MMG Payments*

Native Title Payments Trust**

$10.5M

$23.1M

$8.3M $41.9MCASH POSITION TOTAL CASH & RECEIVABLES

(at 14 July 2017 )

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New Board & Management

Patrick WaltaManaging Director

Metallurgist & Mineral Economist Co-founder of the Raging Bull Group of entities Former Executive Director of Carbine Resources & Primary Gold Expertise in resource project development & environmental management

Tolga KumovaCorporate Director

Corporate finance specialist Co-founder and former Managing Director of Syrah Resources Raised over A$500M for ASX listed mining companies Current Non-Executive Chairman of European Cobalt

Evan CranstonExecutive Chairman

Corporate lawyer specialising in capital raising, IPOs, JVs and M&A Principal of advisory services firm Konkera Corporate NED of Boss Resources, Primary Gold, Carbine Resources & Clancy Resources

Thomas EadieNon Executive Director

Geologist with significant industry experience from juniors to majors Founding Chairman of Syrah Resources Former GM Exploration at Pasminco (former Century mine owners) Current NED of Alderan Resources & Strandline Resources

Bryn HardcastleNon Executive Director

Managing Director of law firm Bellanhouse Lawyers Specialising in corporate, commercial and securities law Current Non-Executive Director of Cre8tek and MHM

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Zinc Market Fundamentals: VERY STRONG

High competition for con. forcing smelting charges

to record lows

Stockpiles at 9 year lows

Scarcity of con. causing smelter

capacity reduction

China importing more zinc due to domestic

mine closures

TCs Fall to Historic Lows Chinese Smelter Utilisation Falls

US Premiums Spike HigherLME/SHFE Stocks Declining

Spot TC Annual TC

LME Stocks SHFE Zinc Special High grade - High

Smelter Utilisation Rate

Large Smelters (200kt+)

Medium Smelters (100-200kt)

Small Smelters (20-100kt)

Source: Teck, CRU, Wood Mackenzie

Source: LME/SHFESource: LME/SHFE

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Global Zinc Supply Shortage: Production Cuts

Source: The Sophisticated Investor

Zinc Production Cuts (ktpa)

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Presentation SummaryF

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Century Mine Location783km2 OF TENEMENTS IN THE PROLIFIC NORTH WEST MINERALS PROVINCE OF QLD

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Century Production HistoryPREVIOUSLY 3RD LARGEST ZINC MINE IN THE WORLD

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

2,000

1,750

1,500

1,250

1,000

750

500

250

0

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

Pro

du

ctio

n (

ktp

a)

Zn $

US/

tn

Pasminco begins first operation at the Century open pit

Zinifex acquires Century via refloat of Pasminco insolvency

Zinifex merges with Oxiana creating Oz Minerals

MMG Acquires Oz Minerals MMG places

Century into Care & Maintenance

Raging Bull Group acquires Century via

Century Bull subsidiary

New Century Resources enters earn-in agreement

for Century restart

Zinc Production Lead Production Zinc Price

Century Zinc Production vs Zinc Price

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• Planned hydraulic mining of TSF using evap dam water

• Zinc extraction from tails:

• Existing hard rock plant capacity

7Mtpa+ (potential long life operation)

• Tails sent back to open pit

• >50% recovery demonstrated to date

• Zinc extraction from water:

• Recovers soluble zinc in tailings

• Potential for additional recovery

• Plant restart Feasibility Study

commencing shortly

Reprocessing

Tailings Reprocessing OperationsPROGRESSIVELY REDUCES OVERALL DISTURBANCE FOOTPRINT & ENABLES MINE REHABILIATION

TSF Deposit Tonnes (Mt) Zinc (%) Lead (%) Silver (g/t) Zn Metal (t)

Total (IND & INF) 71.0 2.73 - - 1,940,000

Open Pit

TailingsStorage Facility

EvapDam

Century Mine Overview

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• 2,350m drilling program

• 125m × 125m spacing

• Average depth 13m

• Completion scheduled August 2017

• Targeting upgrade in confidence of current Inferred Resource to Indicated

Drilling Underway on the Century Tailings DepositF

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Lead Product to Thickening

& Pipeline

Zinc Product to Thickening &

Pipeline

To Tailings Dam

ROM Stockpile

SAG Mill

Ball Mills

Cyclones

Carbon Prefloat

Zn Rougher

Zn Scavenger

Classification & Regrind

Zn Cleaner 1

Pb Rougher

Pb Cleaner

(1&2)


Zn Cleaner

(2-5)

LEAD CIRCUIT

ZINC CIRCUIT

MILLING & CLASSIFICATION

Current Plant FlowsheetAPPLICABLE FOR PROCESSING IN-SITU RESOURCES (SILVER KING, EAST FAULT BLOCK, ETC)

TAILINGS DISPOSAL

From Mine Pit

Tailings Thickener

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Zinc Product to Thickening &

Pipeline

Ball Mill

Cyclones

Zn Rougher

Zn Scavenger

Zn Scavenger


Tailings Thickener

Zn Cleaner 1

Zn Rougher


Zn Cleaner(2-5)

(Inc. Pb Cleaner)

From Tailings Dam

To MinePit

MILLING & CLASSIFICATION ZINC CIRCUIT

Tailings Operations FlowsheetSIGNIFICANT INCREASE IN ZINC FLOTATION TIME - MINOR MODIFICATION REQUIRED ONLY

Demonstrated performance of the tailings operations flowsheet:

• Three independent studies completed

• >50% total zinc recovery achieved to date (upside testwork underway)

• ~52% zinc concentrate grade achieved to date (upside testwork underway)

• Premium concentrate quality due to low iron/manganese impurities

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Near Plant Resources

Century Mine Overview

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Silver King Deposit Tonnes (Mt) Zinc (%) Lead (%) Silver (g/t) Contained Metal

Total (Inferred) 2.7 6.9 12.5 120 186kt Zn, 338kt Pb, 10.4Moz Ag

Silver King DepositHIGH GRADE UNDERGROUND (<2km FROM PLANT)

Identified SK extension potential:2.7m at 12.2% Zn+Pb from 284m4.0m at 7.48% Zn+Pb from 283m4.6m at 11.1% Zn+Pb from 311m2.0m at 10.2% Zn+Pb from 276m

Silver King Resource Model

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Silver King DepositEXTENSION POTENTIAL BACK TOWARDS OPEN PIT

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East Fault Block Tonnes (Mt) Zinc (%) Lead (%) Silver (g/t) Contained Metal

Total (Inferred) 0.52 11.6 1.1 48 60kt Zn, 5.7kt Pb, 0.8Moz Ag

• Located adjacent to existing open pit

• Resource begins at 35m, extending to 112m

• Simple open pit operation

• Identical mineralisation to adjacent ‘Big Zinc’ ore

• Upside potential via potential mineralisationbelow existing resource

Proposed Pit Shell

East Fault Block DepositOPEN PIT (200m FROM PLANT)

East Fault Block Resource ModelFor

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Century Exploration Targets

Exploration PotentialCOMPLETE HISTORICAL EXPLORATION DATABASE ACQUIRED – REVIEW OF DATA UNDERWAY

• Historical focus on exploration for another ‘Big Zinc’ ore body (>25Mt deposits)

• >40 high grade vein style deposits (e.g. Silver King) identified

• Vein style deposits represent suitable blending material for tailings ops

• Significant phosphate mineralisation identified (14,000m of drilling under review)

• New Century planning to be very active in exploration and definition of existing targets

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• 70% interest in premium hard coking coal project in Alabama, USA (option to acquire 100%)

• Measured & Indicated Resource of 76.4Mt (Reserves of 48.2Mt (ROM))

• Operation fully permitted on private land owned by New Century Resources

• Existing infrastructure - wash plant, rail load out, rail, power, water, offices, workshops

• Port of Mobile only 350km via existing rail infrastructure – ample capacity on both

• Strong change in sentiment towards coal due to Trump Administration

• 2014 Acquisition Bid:

• US$77M binding deal (subject to finance only) for Kodiak when coal price was US$110/tonne

• Proposed acquisition failed to complete due to coal market collapse - now recovered

Kodiak Coal Project UpdateOVERVIEW

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PFS Key Outputs

Physicals

Life of Mine ROM Production 48.2Mt

Rom production rate 4Mtpa

LOM Yield 48%

Annual Saleable Coal 1.8-2.0Mtpa

Operating Costs (LOM Mine gate) $61.21/t

Transport Costs $18.02/t

Royalties (assuming US$140 FOB) $11.41/t

Total all in cost LOM (FOB Mobile) $90.64/t

Kodiak Maintains Robust Project Fundamentals

• Low start-up CAPEX, fast payback, strong cashflow/NPV/IRR

• Cash costs of US$90/t FOB, inc taxes & royalties

• Total up-front funding of only US$52.1M

• Staged development reduces funding to US$27M

• Off-take free, maximising financial flexibility

Coal PriceUS$/t

NPV8%US$M

IRR%

PaybackYears

140.0 237.5 48% 2.7

172.5 493.2 100% 1.6

Focus now on near term restart of the Century Mine. New Century

Board to reinvigorate divestment process for the Kodiak Coal Project.

Kodiak Coal Project UpdatePFS RESULTS & PLAN FOR DIVESTMENT

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New Century Resources LimitedHead Office: Level 9, 350 Collins Street, Melbourne VIC 3000

Perth Office: Suite 23, 513 Hay Street, Subiaco WA 6008www.newcenturyresources.com

ContactPatrick Walta

Managing [email protected]

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170720-1 New Century Resources Investor Presentation · $&48,5,1* 2) &(1785< 0,1( 9,$ 0 ($51 ,1 )25...

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