Nyngan Cobalt-Scandium-Nickel Royalty

Asset Overview

Nyngan Scandium Project Highlights

• Located 500 km north-west of Sydney, NSW, Australia
• Politically stable, mining-friendly jurisdiction
• Fully permitted and construction-ready Nyngan Scandium project
• World’s first scandium-only mine development project, 100% owned by Scandium International Mining
• Definitive Feasibility Study completed May 2016; US$87M Capex with +3X expansion potential
• NI 43-101 measured and indicated scandium resource
• Production targeted for approximately 38,000 kg per year of scandium oxide. (Sc2O3)

Royalty Highlights

• Life-of-Mine 1.7% Gross Revenue Royalty (“GRR”)
• Flemington & Nyngan royalties acquired for US$4.5 Mil, comprised of US$1.5 Mil in cash & US$3.0 Mil in common shares

Definitive Feasibility Study

Nyngan Scandium Orebody

• Project Reserve totaling 1.43 million tonnes, grading 409ppm Sc established on part of the resource
• Measured and indicated resource significantly larger (7X) than 20 year mine life outlined in the feasibility study
• Surface mining at the site is anticipated to be done by conventional truck and shovel; resource indicates a very low strip ratio

Fully Permitted & Construction Ready

Production Potential

• Feasibility Study concludes the Project has the potential to produce an average of 37,690 kilograms of scandium oxide (scandia) per year, at grades of 98.0%-99.9%
• Production potential to generate an after tax cumulative cash flow over a 20 year Project life of US$629 million, with an NPV10% of US$177 million.
• First offtake in place (225t Al-Sc master alloy), with group capable of in-house conversion to aluminum alloy