CORPORATE PRESENTATION - August 2019 Corporate Presentation

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CORPORATE PRESENTATION - August 2019 Corporate Presentation
CORPORATE PRESENTATION
      August 2019 Corporate Presentation
CORPORATE PRESENTATION - August 2019 Corporate Presentation
DISCLAIMER
These presentation slides have been prepared by, and are the sole responsibility of, the directors of Hummingbird Resources plc (“Hummingbird Resources” or the
“Company”). Those directors have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief. The
information in this document is subject to updating, revision and amendment. This document neither constitutes nor forms nor should be constructed as constituting or
forming part of any offer or invitation to sell or any solicitation of any offer to purchase or to subscribe for any securities in Hummingbird Resources or any other body
corporate or an invitation or inducement to engage in investment activity under section 21 of the UK Financial Services and Markets Act 2000 nor shall it or any part of
it form the basis of or be relied on in connection with any contract therefore. This document does not constitute an invitation to effect any transaction with
Hummingbird Resources nor to make use of any services provided by Hummingbird Resources. No reliance may be placed for any purpose whatsoever on the
information contained in this document nor on assumptions made as to its completeness. No representation or warranty, express or implied, is given by Hummingbird
Resources, any of its subsidiaries or any of its respective advisers, officers, employees or agents, as to the accuracy, fairness or completeness of the information or
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The information and opinions contained in this document and the presentation are provided as the date of this document and the presentation and are subject to
change without notice.

This presentation contains forward-looking statements that are based on Hummingbird Resources’ current expectations and estimates. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated
events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and
Hummingbird Resources disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or
otherwise. Forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be put on such statements due to the
inherent uncertainty therein.

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CORPORATE PRESENTATION - August 2019 Corporate Presentation
A MULTI-ASSET AFRICAN GOLD PRODUCER
WITH STRATEGIC FRAMEWORK TO DELIVER VALUE & GROWTH
                                                                                         MALI

                                                                                    Bamako Office
  • A producer with significant gold inventory of over 6Moz
    across two projects in West Africa                        Yanfolila Gold Mine

     - Guidance of 110-125Koz gold production in 2019
                                                                              Monrovia office
  • Significant stake in growing exploration firm
                                                                   LIBERIA
                                                                                Dugbe Gold Project
  • Experienced team with a track record of delivery

  • Strong in-country relations with two pro-mining
    governments

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CORPORATE PRESENTATION - August 2019 Corporate Presentation
THE STORY TO DATE
A DISTINCTIVE & FOCUSED JOURNEY FROM EXPLORERS TO PRODUCERS

                                                                                             Jul 2018            May-July
                                                     June 2016             Dec 2017          Exploration         2019
                                2014                                       First gold        drilling begins     2nd Ball   M&A
                                                     US$76m
                 2010           Acquisition of       equity raised         pour at           at Yanfolila        Mill       opportunities,
                 Listed on      Yanfolila Gold                             Yanfolila         across a            complete   greenfield &
                                                     to fund
                 AIM with       Project from                               Gold              number of           & MDA at   brownfield
                                                     construction
                 812koz Au      Gold Fields for                            Mine              deposits to         Dugbe      exploration
                 Resource:      US$20m                                                       target LoM                     and growing
                 Dugbe                                                                       increase                       production

    2005                                  Feb 2016
    Founded             2014              Yanfolila Gold                                                 2019
    by Dan              Dugbe             Project DFS           Oct 2017                April 2018       110,000 –
    Betts to            Resource          (US$1,250 AU)         Plant and TSF           Commercial       125,000 oz
    explore in          grows to          NPV=US$162m           construction            production       forecast in
    Liberia             4.2Moz Au         IRR=60%               complete                begins           2019

                                                                                                                                   4
CORPORATE PRESENTATION - August 2019 Corporate Presentation
STRATEGIC FRAMEWORK TO DELIVER VALUE & GROWTH
HIGH MARGIN GOLD COMPANY FOCUSED ON SHAREHOLDER VALUE

         EXPLORE                     DEVELOP             PRODUCE           GROW VALUE
    Disciplined investment      Proven on time and on   110-125Koz 2019   Cash flow generation
       in brownfield and          budget developers        guidance        Capital allocation
      greenfield targets                                 High margin          discipline
         Conversion of                                   production              M&A
     Resources to Reserves                                                   Balance sheet
                                                                                strength

                                                                                                 5
CORPORATE PRESENTATION - August 2019 Corporate Presentation
SENIOR MANAGEMENT & COMMITTEES
SEASONED MANAGEMENT & ADVISORS WITH A WEALTH OF EXPLORATION, DEVELOPMENT & OPERATIONAL EXPERIENCE

                                                                   SENIOR MANAGEMENT

                                                       Dan Betts                                 Tom Hill
                                                         CEO                                 Finance Dir ector

                                                     Saidou Idé                               Shaun Bunn
                                                GM, Finance & Admin                    Senior VP Project Delivery
                                               20yrs’ experience incl senior             Over 30yrs’ experience in
                                             positions at Resolute, Glencore &       exploration, mining , processing &
                                                Avocet. Superb jurisdiction          project development across Africa
                                                   knowledge & relations

                                 Wayne Galea                           Bert Monro                                Murray Paterson
                                  VP EPCM                       Head Business Development                         VP Geology
                         Over 30yrs’ experience for leading       Joined 2009, Previously a Non-             Over 20yrs’ experience as a
                                                                          Exec Director                       mine, mineral resource &
                         engineering companies, including
                                                                of Cora Gold & 8 years as Head of              exploration geologist
                              AMEC, Bateman & Signet
                                                                                BD

      TECHNICAL ADVISORY                                                                              ENVIRONMENT, SOCIAL &
          COMMITTEE                                                                                   GOVERNANCE COMMITTEE
                                        Ernie Nutter
                                       Non-Executive                                                                                        Kate Harcourt
            CHAIR                        Director
                                                                                                              CHAIR
          Attie Roux                                                      SENIOR VP
                                                                                                          Edward Bickham                   Kate Harcourt
         Non-Executive                                                    PROJECT DELIVERY
            Director                 John Meneghini            David Lunt

                                                                                                                                                            6
CORPORATE PRESENTATION - August 2019 Corporate Presentation
CAPITAL STRUCTURE
COMPETITVE VALUATION & STRONG ANALYST COVERAGE

  AT A GLANCE: AIM:HUM                                       SIGNIFICANT SHAREHOLDERS
  Market Cap    (at 06.08.19)          US$ 106M
                                                                             Sustainable
  Cash balance (at 30.06.19)           US$ 8M                                  Capital
                                                                                 12%
  Debt repaid during Q2                US$ 5M
                                                                                     Gold Fields
  Debt total at end Q2                 US$ 51M                                         6.2%
                                                                                                   Odey
                                                                                                    6%
  Ordinary shares in issue             353,688,201

                                                                                               Majedie
                     BROKER COVERAGE                                                            5.4%

                                                     Other
  CANACCORD GENUITY             MIRABAUD                                                     Aberdeen
                                                     57%
                                                                                             Standard
   CENKOS                                                                                       5%
                                                                                           Management
                                                                                              3.2%
                                                                                            M&G 6.4%
                                                                                     Jupiter
                                                                                       3%

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CORPORATE PRESENTATION - August 2019 Corporate Presentation
PEER COMPARISON
        UNDERVALUED AGAINST OUR PEERS

                                             P/NAV             EV/Resource ($/oz)
       1.20x                                            $600

       1.00x                                            $500

       0.80x                                            $400

       0.60x                                            $300

       0.40x                                            $200

       0.20x                                            $100

          nm                                             $-

                                                                                    8
Source: Thomson Reuters and Canaccord Genuity Limited
Note: prices as at 07/08/19
CORPORATE PRESENTATION - August 2019 Corporate Presentation
MALI’S NEWEST GOLD PRODUCER
CORPORATE PRESENTATION - August 2019 Corporate Presentation
THE YANFOLILA GOLD MINE
MALI’S NEWEST GOLD MINE

 • Built on time and on budget

 • High grade deposit: Pre-production Reserve base
   of 710koz at 3.14 g/t and over 2Moz Resource

 • Carbon-in-leach process plant with current
   blended ore throughput capacity of up to 1.4
   Mtpa

 • Significant scope to increase Reserve base and
   Life of Mine through on-going near mine
   exploration

 • High local workforce rates & local training
   programmes ongoing

       25% WOMEN            95% LOCAL
       PLANT OPERATORS      WORKFORCE

                                                     10
Q2 2019 PERFORMANCE                                         Quarterly Gold Production (oz)
WITH QUARTERLY PRODUCTION FIGURES TO DATE                                               27,466
                                                        22,206               23,807
                                                                  17,895

• Q2 2019 production of 27,466 oz , 15% increase from
  last quarter

• AISC of US$998/oz, 23% decrease on last quarter       Q3 2018     Q4 2018    Q1 2019      Q2 2019

• Average mill grade of 2.86g/t
                                                                  Quarterly AISC (US$/oz)
• Full year guidance of 110-125Koz
                                                                      1,677
• Second ball mill completed on time and budget                                1,297
                                                          1,006                             998

                                                         Q3 2018 Q4 2018 Q1 2019 Q2 2019

                                                                                                      11
SECOND BALL MILL
INCREASING PLANT THROUGHPUT TO FACILITATE ANTICIPATED RESERVE GROWTH

• Construction successfully completed within Q2 2019 on time
  and budget

• To increase plant throughput from 1.24Mtpa to 1.4Mtpa based
  on a blend of ore types

• When operating at 100% fresh ore, the throughput capacity
  will increase from 1Mtpa to 1.24Mtpa and 1.24Mtpa to
  1.4Mtpa for blend of ore

• The preferential choice when considering the alternative
  option of installing a tertiary crusher, per the DFS

                                                                       12
DEVELOP & EXPLORE: YANFOLILA
KOMANA EAST & WEST RESERVES & RESOURCES
SIGNIFICANT RESOURCES TARGETED FOR RESERVE CONVERSION

                                                                      CURRENT GOLD INVENTORY
 Category                                                Tonnes (t)             Grade (g/t)             Gold (oz)
 Pre-production Reserve                                  7,039,000                 3.14                  709,800
 Total Mineral Inventory *                               27,952,200                2.23                 2,005,300
*Including non-JORC compliant figures at 31 March 2019

                              KOMANA WEST PIT                                                  KOMANA EAST PIT

                                                                                                                    14
YANFOLILA MINE LIFE UPSIDE

                                                       EXCELLENT
Over 1Moz of Indicated and Inferred Resources
outside the current mine plan. Historical             DRILL RESULTS:
Resource to Reserves conversion rate of 55%                                        Guirin West

                                                       Komana West:
Exploration Programme to convert significant           11.45m @ 8.6g/t
Resources to Reserves                                 25.75m @ 2.95g/t

1. Gonka: High grade Inferred deposit situated 5km
   from the plant                                          Gonka:
                                                       15m @ 16.03g/t
2. Komana East & West: Underground potential not
   currently in Reserves                              20.05m @ 4.63g/t

3. Sanioumale East & West: Currently only oxide ore   For full results visit the
   in the mine plan                                    news page on our
                                                              website

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CORA GOLD: MALI EXPLORATION
 ESTABLISHING A DOMINANT POSITION CLOSE TO THE YANFOLILA GOLD MINE

• Hummingbird is a significant shareholder

• IPO October 2017(AIM:CORA.L)

• Focused on two regions: Mali and Senegal, West Africa

• Proven team with comprehensive track record, incl.
LIBERIA
          17
DUGBE GOLD PROJECT: LIBERIA
OPTIONALITY AND SCALE TO DRIVE PORTFOLIO GROWTH

DISCOVERING & OPERATING IN LIBERIA                         DUGBE
•   Dugbe Shear zone a highly attractive mining region     •   Liberia’s largest gold deposit of 4.2Moz

•   Pro-mining government                                  •   Mineral Development Agreement (‘MDA’) passed into
                                                               law by Government of the Republic of Liberia in Q2 2019
•   Mining law based on Australian mining regulation
                                                           •   Situated just 70km from Greenville deep water port and
•   Favourable fiscal regime: expected 3% royalty &            accessible by road
    25% basic tax rate
                                                           •   Attractive economics
•   Mining contributes to 10% of economic growth
                                                           •   Long Life of Mine @ 20 years
•   Liberia remains democratic since political stability
    was restored in 2003                                   •   High annual production forecast of 125Koz gold

                                                           •   Strategy to now look towards taking the next steps at
                                                               Dugbe in the best interests of all stakeholders.

                                                                                                                         18
THE DUGBE GOLD PROJECT
A LARGE-SCALE RESOURCE WITH STRONG ECONOMICS

• 4.2Moz gold @ 1.4g/t

• 2,355km² of ground within Mineral Development
  Agreement (MDA) for 25 years, with over 140 targets

• PEA at US$1,300 gold with IRR of 29% & NPV (10%) of
  US$186m

 TUZON RESOURCE
 • 2.47Moz, including:
   - 2.03Moz @ 1.51 g/t Indicated
   - 0.44Moz @ 1.32 g/t Inferred
   - plus 15% better grade – PEA, was based
   on 1.3g/t
 • Shallow folding ore body
 • Low Strip ratio
 • Resource open at depth

 DUGBE F RESOURCE
 •   1.76Moz @ 1.28 g/t Inferred

                                                        19
BEST IN CLASS – RESPONSIBLE MINING
                                     20
RESPONSIBLE MINING
BUILDING A LASTING LEGACY & MAKING A SUSTAINABLE CONTRIBUTION TO OUR LOCAL COMMUNITIES

A TARGETED, YEAR-ROUND PROGRAMME TO ENHANCE
LOCAL LIVING. IN 2018 WE:

•   Pay the salaries of 12 local teachers
•   Established additional market gardens to create alternative
    livelihoods and generate an income for local women, with
    ability to employ 50+ people per garden
•   Established further soap-making enterprises to benefit 10 local
    communities and 300 women
•   Invested in initiatives to provide clean drinking water across
    villages local to Yanfolila
•   Run on-going training programmes between UK-qualified
    doctors and local nurses on essential medical techniques,
    such as new-born resuscitation
•   Built a brand new health centre in local village of Bougoudale,
    to benefit population of approx. 5,000
•   Established poultry projects across 4 villages, to contribute to
    youth employment and socio-economic development

                                                                                         21
SUMMARY
• Strong future cash flow from Yanfolila Gold Mine
• Significant gold inventory, with total 6.2Moz in
  West Africa
• Large scope to increase LoM at Yanfolila
  through increased plant throughput & nearby
  exploration campaign
• Additional Mali exposure through investment in
  Cora Gold
• Positioned for further growth through M&A
• Backed by strong institutional shareholders
• Team with proven track record

                                                     23
24
THE “HUMMINGBIRD 1OZ” COIN
A COLLECTION OF SINGLE MINE ORIGIN PURE GOLD COINS, ORIGINATING FROM YANFOLILA, ON SALE NOW

                                    Collectable coins representing HUM's
                                   industry, journey and company values:
                                      Explore; Develop; Mine; Produce;
                                         Community; and Conserve

                                   Priced based on the spot gold price at
                                           the time of purchase

                                   Minted at Betts Metals, HUM CEO Dan
                                   Betts’ family 260 year old gold refining
               1oz                 and trading company in Birmingham
          pure gold coin

      www.bettsinvestments.co.uk

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BOARD OF DIRECTORS                                  D a n Be t t s
                                                    CEO
                                                    •       Founded Hummingbird in 2005
                                                    •       Developed the business from a private
                                                            explorer to a listed company with 6Moz+ gold
   Ru s s e ll K ing                                •       18 years’ previous experience in metals          A t t ie Ro ux
                                                            industry
   Non-Executive Chairman                                                                                    Non-Executive Director
                                                    •       Former Management Consultant at
   •     Senior Independent Non-Exec of Aggreko
                                                            Accenture in 2000
         Plc                                                                                                 •   42 years operational , technical and
   •     Former Chief Strategy Officer at Anglo                                                                  executive experience
         American & member of the Executive
                                                        T o m H ill                                          •   Former COO of Endeavour Mining
         Committee for 8 yrs
                                                        Finance Director                                     •   Chairman of the TAC
   •     Former Senior Advisor to RBC on Metals &
         Mining
                                                        •    Former Senior Manager within BDO
                                                             LLP’s natural resources department
                                                        •    Metallurgy, Economics &
       St e p h e n Be t t s                                 Management Oxford university                    Er nie N ut t e r
       Non-Executive Director                                graduate
                                                                                                             Non-Executive Director
                                                        •    12 years’ experience in the resource
   •     Over 40 years’ experience in trading                sector                                          •   Mining analyst formerly with Capital Group
         with gold and related businesses in
         developing countries                                                                                •   Former Director and Managing Director of
   •     Chairman of the Stephen Betts group
                                                    D a vid St r a ke r - Smit h                                 RBC Capital Markets
         of companies                               Non-Executive D i r e c BUNN
                                                                  SHAUN     tor                              •   Former Chairman of RBC Dominion Securities
   •     Established several businesses in West                                      SENIOR VP               •   BSc Geology
         Africa during his career                   •       Director of London-based investment
                                                                                     PROJECT DELIVERY
                                                            research and advisory firm, CrossBorder
                                                            Capital Ltd
                                                    •       Director of New Vision Management Ltd and
                                                            Nomad Energy UK Ltd
                                                    •       Former positions at ING Barings Securities Ltd
                                                            and Gerrard & National Holdings Plc
                                                                                                                                                              26
www.hummingbirdresources.co.uk

  +44 (0)20 7409 6660                    Hummingbird Resources Plc   @HUM_gold

  enquiries@hummingbirdresources.co.uk   hum_gold                    Hummingbird Resources Plc

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