0

2015Interim Results Corporate Presentation

24 August 2015

Disclaimer

1

This presentation has been prepared based on publicly available information and information provided by China Vanadium Titano-Magnetite Mining Company Limited (the “Company”). The information contained in this presentation has not been independentlyverified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness,accuracy, completeness or correctness of the information or opinions contained herein.

The Company does not intend to provide, and you may not rely on this presentation as providing, a complete or comprehensiveanalysis of the Company’s financial or trading position or prospects. The information contained herein is subject to change andreaders are cautioned not to place undue reliance on forward-looking information contained in this presentation. Such forward-lookinginformation reflects various assumptions of the management concerning the future performance of the Company, and theassumptions may or may not prove to be correct. The Company is under no obligation to correct or update any such forward-lookinginformation.

The views contained in this presentation are based on financial, economic, market and other conditions prevailing to date. Thispresentation is not intended to form the basis of any investment decision and does not constitute or form part of any advice or anyoffer to sell or an invitation to subscribe for, hold or purchase any securities or any other investment, and neither this presentation norany of its contents shall form the basis of or be relied on in connection with any contract or commitment whatsoever. Thispresentation is not, and should not be treated or relied upon as investment research or a research recommendation under theapplicable regulatory rules.

None of the Company nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (in negligenceor otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection withthe document. No person is authorised to give any information or to make any representation not contained in this document and, ifgiven or made, should not be relied upon.

Agenda

1

2

3

Market Review 3

2015 Interim Results Overview

Business Presence & Outlook 12

6

2

3

Market Review

3

2,000

2,500

3,000

3,500

4,000

4,500

Jan-13

Apr-1

3

Jul-13

Oct-13

Jan-14

Apr-1

4

Jul-14

Oct-14

Jan-15

Apr-1

5

Chengdu Steel’s Price Trend (1)

(RMB/t)

Source: www.steelhome.cnNote:(1) HRB400, diameter 20mm, including VAT

• Overcapacity in steel industry continued to be a serious issue

• China faced anti-dumping policies which have exacerbated theoverall poor operating environment of the steel industry

• Some steel companies were forced to halt operating furnaces due totightening pollution controls and were required to invest further infacilities upgrades

� Capital investments for environmental control are substantial

Market Review

60

70

80

90

100

110

120

Jan-1

3

Apr-

13

Jul-13

Oct-

13

Jan-1

4

Apr-

14

Jul-14

Oct-

14

Jan-1

5

Apr-

15

China Steel Price Index

Source: China Iron & Steel Association

4

Steel Industry

0200400600800

1,0001,2001,400

Jan-13

Apr-1

3

Jul-13

Oct-13

Jan-14

Apr-1

4

Jul-14

Oct-14

Jan-15

Apr-1

5

China Iron Ore Price Index (1)

Source: China Iron & Steel Association

• The overall iron ore market was still weak

• Unfavourable market conditions of steel industry adverselyaffected the price of iron ore

• Local iron ore price slumped due to competitive price andlarge volume of foreign imports

Market Review (cont’d)

• Price of high-grade titanium concentrates showed slightincrease from January to June 2015 due mainly totemporary stocks replenishment

• However, the price of high-grade titanium concentrates hasdeclined since July 2015 due to the weakened marketdemand

• This may exert additional risks of titanium miningcompanies suspending production due to declining profits

High-grade Titanium Concentrates’ Price Trend (2)

Source: www.cnv168.com

Note:(2) Dry base packaging, TiO2 46%, not including VAT

(RMB/t)

Note:(1) Based on ordinary iron ore

160

210

260

310

360

410

460

510

560

Jan-13

Apr-1

3

Jul-13

Oct-13

Jan-14

Apr-1

4

Jul-14

Oct-14

Jan-15

Apr-1

5

5

Ordinary Iron Ore

Titanium

6

2015 Interim Results Overview

6

1H 2014

(RMB mm)

1H 2015

(RMB mm)

Revenue 383.9 151.5

Gross profit/(loss) 17.4 (17.0)

Gross profit/(loss) margin 4.5% (11.2%)

Impairment losses (166.9) (438.4)

Fair value loss on financial assets at fair value through profit or loss - (59.9)

LBIT (191.9) (743.9)

LBITDA (99.0) (670.9)

Loss before tax (222.8) (777.3)

Income tax credit/(expense) 94.4 (91.3)

Loss and total comprehensive loss attributable to owners of the

Company (“net loss”)(129.0) (865.5)

(RMB) (RMB)

Basic and diluted loss per share (1) (0.06) (0.42)

Financial Performance Overview

Note:(1) Weighted average number of shares of 2,075,000,000 in issue

7

Low Utilisation Rate of Some Processing Plants

8

Products

Annual

capacity

(ktpa)

(wet basis)

Production volume

in 1H 2015

(kt)

(dry basis)

Capacity

utilisation

(%)

Vanadium-bearing iron

concentrates2,600 242.3 20.7

Baicao processing plant 700 36.6 11.6

Xiushuihe processing plant 800 147.4 40.9

Heigutian processing plant 800 0 0

Hailong processing plant 300 58.3 43.2

High-grade titanium concentrates 280 19.1 15.2

Baicao processing plant 60 12.8(1) 47.4

Xiushuihe processing plant 100 6.3 14.0

Heigutian processing plant 120 0 0

Note:(1) This figure represented the production volume of medium-grade titanium concentrates

Under poor operating environment:

• Severely weak market sentiment

• The group recorded a net loss of RMB336.4million for the year 2014

• Continual low utilisation rate, particularlybeing no outputs from the Heigutianprocessing plant

Actions taken by the group:

• Conducted strategic reviews of the minesand processing plants

• Intensified efforts to streamline operations

• Initiated plans to rationalise assets

• Classified the Heigutian processing plant asassets held for sale and recorded at fairvalue less cost to sell

Gross Loss Due to Significant Fall in Revenue

Decrease in Sales Volume by Products Decrease in Average Selling Prices by Products

9

Products 1H 2014(RMB/t)

1H 2015(RMB/t)

Vanadium-bearing iron concentrates 493 239

Ordinary iron concentrates (self-produced) 987 768

Ordinary iron concentrates (trading) 793 615

High-grade titanium concentrates 439 353

Products 1H 2014(kt)

1H 2015(kt)

Vanadium-bearing iron concentrates 363.2 263.5

Ordinary iron concentrates (self-produced) 22.6 26.7

Ordinary iron concentrates (trading) 220.8 107.4

High-grade titanium concentrates 16.9 5.1

17.4

(17.0)

1H 2014 1H 2015

Gross Profit/(Loss)

(RMB mm)

Significant Fall in Revenue

(RMB mm)

383.9

151.5

1H 2014 1H 2015

2011

Exchangeable notes of US$30 million

25 Nov 2014

Original maturity date

2 Dec 2014

1st time default of exchangeable notes

31 Dec 2014

Maturity date postponed to 25 Mar 2015

25 Mar 2015

Maturity date (extended)

1 Apr 2015

2nd time default of exchangeable notes

28 Jul 2015

Maturity date postponed to 25 Aug 2015

25 Aug 2015

Maturity date (further extended)

166.9 102.3

137.2

15.3

122.9

60.6

1H 2014 1H 2015

Assets held for sale

Trade receivables

Goodwill

Intangible assets

Property, plant and equipment

Impairment Losses and Fair Value Loss

Investment in Indonesian mine

10

(RMB mm)

Impairment Losses

• Significant drop in capacity utilisation adverselyimpaired the value in use and/or fair value of the keyoperating assets and hence, recognised impairmentlosses on property, plant and equipment, intangibleassets, goodwill and assets held for sale

• Certain customers were in financial difficulties due tothe weak market condition and the group’srecoverability of part of the receivables has specificallybeen affected, causing an impairment loss on tradereceivables

As at 30 Jun 2015,

• Recorded exchangeable notes at fair value of RMB230.3 million

• Recognised a fair value loss of RMB59.9 million in 1H 2015

438.4

Increased Expenses but Improved Operating Cash Flows

5.4 19.8

100.1

148.4 27.5%

111.0%

1H 2014 1H 2015

Selling & distribution expenses Administrative expenses

Total SD&A expenses as % of revenue

(RMB mm)

11

Loss and Total Comprehensive Loss Attributable to

Owners of the Company

(RMB mm)

94.4

(91.3)

1H 2014 1H 2015

(RMB mm)

129.0

865.5

1H 2014 1H 2015

Income Tax Credit/(Expense)Selling & Distribution and Administrative Expenses

Net Cash Flows Used in Operating Activities

621.5

29.3

1H 2014 1H 2015

(RMB mm)

12

Business Presence & Outlook

12

Business Presence in China

* Haibaodang Mine: Acquisition completed in January 2015 with 107.61 Mt of iron ore resources (Types 331 and 333) with an average TFegrade of 16.50%

** Shigou Gypsum Mine: Acquisition completed in July 2015 with 10.37 Mt of gypsum ore resources (Types 331 and 333) with an average “gypsum + anhydrite” grade of 90.64%

Maoling-Yanglongshan mine

Xiushuihe processing plant

Baicao processing plant

Hailong processing plant

Heigutian processing plant

Maoling processing plant

Baicao mine

Xiushuihe mine

Yangqueqing mine

Cizhuqing mine

Iron pelletising plant

1

2

3

4

5

6

7

9

10

11

8

13

Short Term

• “Steel Industry Adjustment Policy (2015 Revision)” 《鋼鐵產業調整政策（2015年修訂）》

� To transform and upgrade the domestic steelindustry

� To encourage large-scale structuralreorganisation in the steel industry

� By 2017, the contradictions of overcapacity isexpected to be resolved, and the industry’sprofit margins and return on assets shouldreturn to reasonable levels

� By 2025, the crude steel output of the top tensteel enterprises should account for no lessthan 60% of the national crude steel output

Long Term

14

• “Iron and Steel Industry Restructuring andDevelopment Action Plan for 2015-2017” 《鋼鐵工業轉型發展行動計劃（2015-2017）》

� To ease overcapacity imbalances by reducingiron and steel production capacity by 80 Mt

� To build 2-3 “intelligent” demonstration plants

� To encourage mergers and acquisitions aswell as restructuring within the industry

� To control number of steel companies in Chinaat around 300 and reduce levels ofenvironmental pollutants through industryconsolidation

Government Policies to Curb Industry Stagnation

Measures to Achieve Sustainable Development

15

Vigilant monitoring of

collection cycles to assess credit

risks

Strategically control costs,

improve efficiency and minimise loss

on operations

Adjust production volume according to order placement

Reduce capital

expenditure

Flexible in all operational levels to

cope with varying market conditions

Actively evaluating facilities usage for

better capacity utilisation

Thank you！！！！

16

Contact

Cornerstones Communications LimitedKylie Yeung / Tina Shi / Wendy LauTel: 2903 9293 / 2903 9283 / 2903 9286Fax: 2887 1712E-mail: ir@chinavtmmining.com