TUNGSTEN MINERALIZATION IN PORTUGAL

THE CASE

OF THE SÃO PEDRO DAS ÁGUIAS DEPOSIT (TABUAÇO)

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

Cautionary Statement Disclaimer This document has been prepared by Colt Resources Inc. (the “Company”) solely for presentation on December 4th, 2013, at the “Mineral Resource Assessment Workshop: Assessment of the tungsten potential in Greenland”, Copenhagen. This document does not constitute an offering document. This document is the sole responsibility of the Company. Information contained herein does not purport to be complete and is subject to certain qualifications and assumptions and should not be relied upon for the purpose of making an investment in the Company’s securities or entering into any transaction in relation therewith. The information and opinions contained in this document are provided as at the date hereof and are subject to change without notice and, in furnishing this document, the Company does not undertake or agree to any obligation to provide recipients with access to any additional information or to update or correct the document. No securities commission or similar regulatory authority has passed on the merits of any securities referred to in this document, nor has it reviewed this document. Forward Looking Information Certain of the information contained in this presentation may contain “forward-looking information”. Forward-looking information and statements may include, among others, statements regarding the future plans, costs, objectives or performance of the Company, or the assumptions underlying any of the foregoing. In this presentation, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company’s control. These risks, uncertainties and assumptions include, but are not limited to, those described under “Risk Factors” in the Company’s revised annual information form dated February 8, 2013 available on SEDAR at www.sedar.com and could cause actual events or results to differ materially from those projected in any forward-looking statements. The Company does not intend, nor does the Company undertake any obligation, to update or revise any forward-looking information or statements contained in this presentation to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws. National Instrument 43-101 Technical and scientific information contained in this document relating to the Company’s projects in Portugal is derived from the following National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant technical reports: “A Preliminary Economic Assessment on the Tabuaço Tungsten Project” dated October 1, 2013, “A Preliminary Economic Assessment on the Boa Fe Gold Project, Portugal”, dated May 7, 2013, the “NI 43-101 Technical Report, Boa Fé/Montemor Gold Project”, dated March 4th, 2013, the “Tabuaco Tungsten Project, Portugal. NI 43-101 Technical Report”, dated November 15th, 2012, the “NI 43-101 Technical Report Boa Fé/Montemor Gold Project Alentejo Region of Southern Portugal” dated August 16th, 2012, the “NI 43-101 Technical Report Boa Fé/Montemor Gold Project Alentejo Region of Southern Portugal” dated December 21, 2011, the “NI 43-101 Technical Report on Exploration, Montemor Gold Project, Alentejo Region of Southern Portugal” dated March 4, 2011, the “Technical Report (NI 43-101) on the Armamar Meda Concession, Northern Portugal” dated September 6, 2010 and the “Technical Report (NI 43-101) on the Penedono Gold Concession, Northern Portugal” dated August 27, 2010 (collectively, the “Technical Reports”). The Company has filed the Technical Reports under its profile on SEDAR at www.sedar.com. Technical Advisor SRK Consulting (U.S.) Inc. has been awarded a broad mandate to provide overall technical assistance to the Company in Portugal and will be producing several NI 43101 compliant reports as projects progress (see: January 18, 2011 press release). Gareth O’Donovan CEng MSc BA (Hons) FIMMM FGS - SRK Exploration Services Ltd. is the independent qualified person, as defined in NI 43-101, for the Company’s projects in Portugal.

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TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

TUNGSTEN – THE PROPERTIES THAT MAKES IT A SPECIALTY METAL



Atomic Number – 74



Atomic Weight – 183.84



The highest melting point of all metals – 3422ºC



Very high density – 19.25 (comparable with Au=19.30, U=19.05)



High hardness – 7.5 in the Mohs scale



The highest tensile strenght of all metals



The lowest thermal expansion coefficient of all metals



High resistence to chemical corrosion (oxygen, acids, alkalis)



Very difficult recycling (~10%)



Without substitutes in its applications

2

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

TUNGSTEN INDUSTRY OVERVIEW APPLICATIONS

THE TUNGSTEN MARKET 

China hosts nearly two-thirds of the world’s reserves and accounts for over three-quarters of global production, however, in the recent years it went from exporter to a net importer to satisfy domestic demand.



Non-Chinese sources of tungsten are scarce and generally have contractual or ownership ties to consumers



Additional western concentrate capacity is required to guarantee access to raw materials WORLD RESERVES

Machinery

Mining and Construction

Tools

Lighting

Electrical

Alloys

WORLD PRODUCTION

3

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

Tungsten prices are close to all-time highs

Tungsten APT European, $ per mtu

Source: Bloomberg

• APT (“Ammonium paratungstate”) the intermediate product obtained chemically from the tungsten concentrates, is the normal form of trading of tungsten mine products, and is used for the production of the final products (tungsten metal, ferrotungsten, tungsten carbide); • The above price is of APT per MTU (“metric tonne unit”), which equates with 10kg of contained WO 3 – equivalent to 7.93 kg of contained tungsten (W); • In June 2010 the European Union declared tungsten as a “critical raw material for the EU”, and this is the reason for the main price raise shown in the graphic, which happened in that year, establishing a new price level. 4

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

PORTUGAL – A TUNGSTEN-RICH COUNTRY

THE CENTRAL-IBERIAN ZONE AND GALICIA–TRÁS-OS-MONTES ZONE HAVE ABUNDANT W±Sn MINERALIZATION, ASSOCIATED WITH THE VARISCAN GRANITOIDS THE

The two main tungsten minerals occur in Portugal: Scheelite – Ca WO4 ; and Wolframite – (Fe,Mn) WO4

UNTIL THE MID 1980’S PORTUGAL HAD SEVERAL TUNGSTEN MINES IN OPERATION. AT PRESENT ONLY PANASQUEIRA REMAINS IN PRODUCTION.

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TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

TUNGSTEN DEPOSITS AND OCCURRENCES IN COLT’S EXPLORATION AREAS IN NORTHERN PORTUGAL (VISEU AND GUARDA DISTRICTS)

Prospecting Work done by COLT in its Exploration Licences of Penedono, Armamar-Meda, Moimenta-Almendra and Cedovim, between 2007 and 2013

Geologic Setting: • Metasediments of the Douro Schist-Graywacke Complex at NE • Variscan Granitoids of the Armamar-Penedono-Escalhão antiform at SW • SE extension of the NW-SE trending Vigo-Braga-Amarante semi-ductile shear zone • NNE-SSW trending sinistral strike-slip faults of the Vilariça fault system • Low grade regional metamorphism • Important contact metamorphism and metasomatism

Mineralization W – skarn-type (scheelite)

W-Sn – vein-type (wolframite ± scheelite + cassiterite)

Au(±W) – vein/greisen (arsenopyrite + gold ± wolframite) 6

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

LOCALIZATION

Porto Tabuaço

Lisboa

Tabuaço It’s the Municipality seat Area:135,72 km² Nº of inhabitants: 6350

São Pedro das Águias

São Pedro das Águias 300km NNE from Lisbon 100km ESSE from Porto

(11,9 Km from Tabuaço)

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TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

CURRENT TABUAÇO EXPERIMENTAL MINING CONCESSION

TABUAÇO

Colt concession with an area of 45.128km2, located in the municipalities of Tabuaço and S. João da Pesqueira (Viseu district); covering part of Colt’s previous Armamar-Meda exploration licence (436,81km2)

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TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

HISTORY OF THE TABUAÇO TUNGSTEN PROJECT 1977-1979 1980-1982

‒ Discovery of Scheelite-bearing Skarns in the Tabuaço region, by geologists of the Portuguese Government ‒ SPE–BRGM joint venture: Prospecting of the Skarns in the Tabuaço region; diamond drilling program at S. Pedro das Águias (6 holes, 544 metres)

1983

‒ Interruption of the program of SPE–BRGM j.v., as a result of difficulties in proceeding negotiations with the landowner of the São Pedro das Águias farm

1985

‒ World Tungsten crisis, originated by large exports from China, and which originated the closure of several tungsten mines in Portugal and worldwide

1985-2007

‒ The maintenance of unfavourable conditions in the world tungsten market prevent Tabuaço from attracting the attention of mining or exploration companies

Dec. 2007

‒ COLT signs with the Portuguese Government the Exploration Contract for the “Armamar–Mêda” concession (436.81km2) which includes the Tabuaço tungsten area

Jul. 2008

‒ COLT starts its surface prospecting and sampling work at the Tabuaço tungsten area; confirming favourable widths and grades

Dec. 2009

‒ COLT starts its first diamond drilling program at the São Pedro das Águias deposit (Tabuaço)

May 2010

‒ COLT concludes its 1sty drilling program at the São Pedro das Águias deposit (9 holes, 766 metres); the results confirm the economic potential

Jul. 2010

‒ Environmental and Heritage Diagnosis (“Diagnóstico Ambiental e Patrimonial”) completed, confirming that the Tabuaço project is “permittable”

Nov. 2010

‒ COLT starts its 2nd drilling program at Tabuaço, which would be continued without interruption until January 2013 9

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

HISTORY OF THE TABUAÇO TUNGSTEN PROJECT Aug. 2011

‒ COLT acquires the São Pedro das Águias vineyard farm, where the São Pedro das Águias deposit is located

Nov. 2011

‒ COLT releases its first resource estimate for Tabuaço (S. Pedro das Águias deposit), in accordance with Canadian regulation NI 43-101

Feb. 2012

‒ Discovery of the Aveleira deposit by a drill hole positioned to test a soil geochemical anomaly

Mar. 2012

‒ Metallurgical testwork initiated (in Canada, Germany and China) on samples of ore from the S. Pedro das Águias deposit

Aug. 2012

‒ COLT submits to the Portuguese environmental authority (APA) the Environmetal Scoping Study for the Tabuaço project (PDA)

Oct. 2012

‒ COLT updates the resource estimate for Tabuaço (including both S. Pedro das Águias and Aveleira deposits), in accordance with Canadian regulation NI 43-101

Oct. 2012

‒ A positive reply is received from the Portuguese environmental authority (APA) regarding the evaluation of the Environmental Scoping Study for Tabuaço project

Jan. 2013

‒ Concluded 2nd drilling program; COLT drilled to date a total of 82 exploration and evaluation holes (9760m), 8 metallurgical holes (736m), 2 geotechnical holes (154m)

Feb. 2013

‒ COLT signs with the Portuguese Government the Contract for the Tabuaço Experimental Mining Licence; total investment to date totalling € 4 million

Mar. 2013

‒ Started data collection and studies for the execution of the Environmental Impact Assessment (EIA) for the Tabuaço project

Sep. 2013

‒ COLT releases the Preliminary Economic Analysis (PEA) report for the Tabuaço mining project, produced by consulting firm SRK (UK) 10

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

EXPLORATION METHODS LEADING TO THE DISCOVERY OF TUNGSTEN MINERALIZATION IN THE TABUAÇO REGION • The initial discovery of skarns and calcsilicate rocks outcropping in the Tabuaço region, in the 1970’s, resulted during the execution of geologic mapping work performed in the Douro Valley by Portuguese Government geologists. The sampling os such units indicated scheelite contents with economic interest. Subsequently, the following methods were applied in the region, with some rate of success, for the prospecting for additional occurrences of scheelite-bearing skarns:

• Geologic prospecting (day-time) and Mineralight prospecting (night-time); accompanied by collection or rock samples for examination under UV light as well as for chemical analysis; • Stream sediment surveys, comprising the collection of both geochemical samples (analysis for W, Sn, and other elements), as well as pan-concentrate samples (counting of points of scheelite, cassiterite, etc.); • Soil geochemical surveys, with multi-element analysis of soil samples (W and skarn indicator elements, such as Ca, Ti, Sr, Mg, Mn);

• Only occasionally some trenches were open, for the exposure of the bedrock, its examination and sampling – this methodology was most limited in the region, due to the steep topography, with man-made walls and terraces, and the need to avoid damage to the vineyards; • Finally the execution of diamond drilling, first for the confirmation of mineralization at depth, then for its delineation and evaluation.

The methods applied allowed the discovery of outcropping, or sub-outcropping scheelite-bearing skarns, located at shallow depth under man-made vineyards and other terraces (particularly in the case of the soil geochemistry and the Mineralight prospecting). No effective method was discovered to date, for the detection at depth of this kind of mineralization at Tabuaço, or in the greater Douro region. While the application of the geophysical methods normally used in exploration is limited by the fact that the type of mineralization gives a weak or null response; as well as for the difficulty of execution of such surveys in areas with vineyards in terraces. 11

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

GEOLOGIC SETTING OF THE TUNGSTEN MINERALIZATION OF THE TABUAÇO REGION  STRATIGRAPHY: BATEIRAS FORMATION, THE LOWEST OF THE DOURO SCHIST-GRAYWACKE COMPLEX (LOWER CAMBRIAN)  TÁVORA ANTICLINE, WITH THE BASAL UNIT OF THE BATEIRAS FM. (BLACK GRAPHITIC SCHISTS) IN ITS CORE  HORIZONS OF CARBONATE, SKARN AND CALCSILICATE ROCKS LOCATED IN BOTH LIMBS OF THE ANTLICLINE (BOTH BANKS OF THE TÁVORA RIVER), STRATIGRAPHICALLY SHORTLY ABOVE THE BASAL BLACK GRAPHITIC SCHISTS

 GREAT PROXIMITY TO THE ARMAMAR-TABUAÇO GRANITE DOURO SCHIST-GRAYWACKE COMPLEX

ARMAMAR-TABUAÇO GRANITE INTRUSION

Sketch geologic map adapted from Alves (1982)

LOCATIONS WITH SCHEELITEMINERALIZED SKARNS: 1. Quinta das Herédias 2. Qta. de S. Pedro das Águias 3. Quinta da Aveleira 4. Quintã 5. Azenha Velha 6. Quinta do Paço 12

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

PANORAMIC VIEW OF THE AREA OF THE TABUAÇO TUNGSTEN PROJECT, LOOKING WEST

Scheelite-mineralized outcrop

Area of delineated tungsten resources

Base: Photo composition of A.F.Faria, 2008

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TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

LOCAL GEOLOGY OF THE TABUAÇO TUNGSTEN DEPOSITS Among the several occurrences of scheelite-bearing skarns occuring in the Tabuaço region, those locating in the SW limb of the Távora anticline (west bank of the Távora river) have greater economic potential, with particular emphasis on the São Pedro das Águias and Aveleira deposits. The local geology of this zone is characterized by: • Two skarn horizons richly mineralized in scheelite (Main Skarn Principal and Lower Skarn), separated between them, as well as from the basal black schists, by micaceous, pelitic to psamitic schists; • Occurrence locally of one carbonate horizon, above the Main Skarn, and also separated from it by micaceous schists; sometimes contains some scheelite mineralization; • Both the skarn and carbonate horizons have generally metric widths, sometimes exceeding 20m, and in general gentle dips (~20º) to SW; • Very close proximity in relation to the Armamar-Tabuaço granitic intrusion, in its marginal leucocratic facies (albitic-muscovitic); • Metasedimentary sequence (incl. skarns and carbonates) extending under the granitic intrusion; • Frequent occurrence of aplitic apophyses (sills), of frequently metric widths, intrusive in the skarns and enclosing schists; • Late faults, oriented NE-SW to ENE-WSW, NNW-SSE, and more rarely WNW-ESE, sometimes originating significant vertical and/or lateral slips.

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TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

LOCAL GEOLOGY OF THE TUNGSTEN DEPOSITS OF THE TABUAÇO REGION (WEST BANK OF THE TÁVORA RIVER)

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TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

SKARNS OF THE TABUAÇO DEPOSITS The mineralogy of the Tabuaço skarns is made of combinations of the following minerals: sodium-plagioclase, K-feldspar, vesuvianite, epidote, zoisite/clinozoisite, diopside, garnet (grossular), hornblende, tremolite-actinolite, quartz, sericite, calcite, fluorite, apatite, scheelite.

“M-type” Skarn , most frequent in the MainSkarn Horizon (upper); coarser and more massive, mostly composed of albitic plagioclase and vesuvianite; generally richer in scheelite

“L-type” Skarn, most frequent in the Lower Skarn Horizon; finer grained and more layered, principally made of K-feldspar, epidotegroup minerals, vesuvianite and diopside; generally poorer in scheelite 16

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

EXPLORATION AND EVALUATION WORKS PERFORMED AT TABUAÇO For the exploration and evaluation of the Tabuaço scheelite deposits, the following field, laboratory or desktop works were completed:  Surface geologic reconnaissance, detail geologic mapping;  Stream sediment surveys, including geochemical and pan-concentrate sampling;

 Mineralight prospecting and soil geochemical traversing;  Structural geology studies;  Sampling of outcropping mineralization (including either grab, chip and channel samples);  Diamond drilling program: 82 exploration & evaluation holes (9760m), 8 holes for metallurgical samples (736m), and 2 geotechnical holes (154m);  Study of alternatives for the location of the industrial infrastructure (chosen Passafrio);  Mineralogic studies and metallurgical testwork;  3-D modelling and resource estimation (in accordance with canadian regulation NI 43-101);

 Conceptual studies of mining engineering, and of planning of mining infrastructures;  Social,environmental and heritage diagnosis of the project enclosing area;  Environmental Scoping Study (PDA);  Preliminary Economic Analysis (PEA). 17

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

GEOCHEMICAL AND PAN-CONCENTRATE STREAM SEDIMENT SURVEY CARRIED OUT IN THE TABUAÇO REGION

Pan-concentrate anomalies of scheelite and cassiterite in the tributary streams of both banks of the Távora river (data from the SPE–BRGM joint venture) 18

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

MINERALIGHT PROSPECTING AND SOIL GEOCHEMICAL TRAVERSING IN THE WEST BANK OF THE TÁVORA RIVER

Methods utilized for the detection of sub-outcropping mineralization, hidden under the vineyard terraces

19

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

SAMPLING OF SCHEELITE SKARN OUTCROPS IN THE WEST BANK OF THE TÁVORA RIVER

Lower Skarn, S. Pedro das Águias

Main Skarn, S. Pedro das Águias

Main Skarn, Herédias Lower Skarn, Herédias 20

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

PLAN MAP OF THE SÃO PEDRO DAS ÁGUIAS DEPOSIT (TABUAÇO)

21

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

DIAMOND DRILLING AT THE S. PEDRO DAS ÁGUIAS DEPOSIT (TABUAÇO)

22

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

INTERPRETATIVE CROSS-SECTION OF THE SÃO PEDRO DAS ÁGUIAS DEPOSIT (TABUAÇO)

ARMAMAR-TABUAÇO GRANITIC INTRUSION

DOURO-GROUP METASEDIMENTS

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TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

MINERALIZED DRILL CORE FROM THE MAIN SKARN OF THE SÃO PEDRO DAS ÁGUIAS DEPOSIT (TABUAÇO)

UNDER DAY LIGHT →

UNDER SHORT-WAVE UV LIGHT → 24

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

AVELEIRA DEPOSIT DISCOVERED IN FEB. 2012 BY A DRILL HOLE POSITIONED BASED ON A SOIL GEOCHEMICAL ANOMALY (W, Ca, Ti, Sr, Mg, Mn)

25

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

PLAN MAP OF THE AVELEIRA DEPOSIT (TABUAÇO)

26

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

DIAMOND DRILLING AT THE AVELEIRA DEPOSIT (TABUAÇO)

27

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

INTERPRETATIVE LONG SECTION OF THE AVELEIRA DEPOSIT (TABUAÇO)

DOURO-GROUP METASEDIMENTS

28

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

MINERALIZED DRILL CORE FROM THE MAIN SKARN OF THE AVELEIRA DEPOSIT (TABUAÇO)

UNDER DAY LIGHT →

UNDER SHORT-WAVE UV LIGHT → 29

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

SELECTION OF DRILL INTERSECTIONS FROM COLT’S DIAMOND DRILL HOLES AT THE TABUAÇO DEPOSITS Hole #

Inclination

Azimuth

From (m)

To (m)

Interval (m)

True Width (m)

(weigh.ave.)

WO3%

São Pedro das Águias deposit DHT-01B

-90º

000

19.15

37.95

18.80

17.67

0.71

DHT-02

-90º

000

52.60

66.20

13.60

12.78

0.99

DHT-08

-90º

000

42.40

54.40

12.00

11.28

0.60

DHT-09

-45º

210

93.60

115.20

21.60

19.40

0.54

DHT-12

-90º

000

58.35

68.00

9.65

9.07

1.33

DHT-13

-50º

030

92.80

100.45

7.65

7.13

1.11

DHT-14

-90º

000

77.30

85.65

8.35

7.84

1.29

DHT-15

-60º

055

108.35

122.55

14.20

13.95

0.89

DHT-25

-65º

210

53.78

64.62

10.84

10.75

0.95

DHT-26

-90º

000

14.10

27.50

13.40

12.59

0.76

DHT-31

-60º

126

147.75

154.75

7.00

5.88

0.74

DHT-33

-50º

330

18.20

24.40

6.20

4.11

0.84

DHT-51

-90º

000

60.35

66.35

6.00

5.64

0.99

Aveleira deposit DHT-49

-90º

000

24.40

30.35

6.05

5.69

1.25

DHT-70

-90º

000

67.00

78.00

11.00

10.34

0.88

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TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

3-D MODELING OF THE SÃO PEDRO DAS ÁGUIAS DEPOSIT (TABUAÇO)

3D Block Model

3D Solid Model

31

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

THE FAVOURABLE CONDITIONS OF THE TABUAÇO TUNGSTEN DEPOSITS The São Pedro das Águias and Aveleira (Tabuaço) deposits have a number of characteristics that make them particularly attractive from the mining point of view:  Mineralized bodies (skarns) very thick (normally between 5m and 20m), with some hundred metres extension, and with a gentle inclination;  Metasedimentary sequence, including the skarns, continuing under the granitic intrusion, and the deposits are still open;  Good quality ore, essencially made up of silicates, practically without sulphides or heavy metals (contaminants);  High scheelite contents, i.e. generally high average WO3 grades;  Scheelite with high degree of purity, without molibdenum (penalizing element);  Metallurgical testwork indicating the possibility of obtaining high-grade (70%) WO3 concentrates through the application of a combination of gravity and flotation methods;  Possibility of recovery of fluorite as a by-product with significant commercial value. Besides, it is considered as likely the discovery of new scheelite skarn deposits in the gap between São Pedro das Águias and Aveleira, as well as beyond Aveleira to the northwest.

32

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

CURRENT STATUS OF DELINEATION OF THE TABUAÇO TUNGSTEN DEPOSITS

CURRENT RESOURCE INVENTORY OF THE TABUAÇO TUNGSTEN DEPOSITS (S. PEDRO DAS ÁGUIAS & AVELEIRA) Resource Category

Tons of ore

grade (%WO3)

Contained metal (MTU WO3)

Indicated

1,495,000

0.55

815,000

Inferred

1,230,000

0.59

720,000

Total

2,725,000

0.56

1,535,000

( 71% of resources at S. Pedro das Águias, 29% at Aveleira ) 33

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

TABUAÇO MINING PROJECT – TECHNICAL INFORMATION

Underground Mine • •

Production ROM – 375 x 103 ton/year, with an average grade of 0.47 % WO3 Production of scheelite concentrate with a grade of 70% de WO3

Underground mining method • Drift & Fill • Back filling)

Concentration plant The following operations have been considered for the concentration plant: • • • • • • • • •

Primary crushing Secondary crushing Milling and pre-concentration in jigs Desliming and thickening Preconcentration in shaking tables Concentration in jigs Concentration in shaking tables Flotation Magnetic separation

Prevision for the start of production •

2016 - 2017 34

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

TABUAÇO MINING PROJECT 3D Model of the Underground Workings planned for the S. Pedro das Águias and Aveleira deposits

AVELEIRA DEPOSIT QSPA Winery SPA Convent

S.PEDRO DAS ÁGUIAS DEPOSIT

35

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

TABUAÇO MINING PROJECT Concentration Plant (Simplified Flowsheet)

36

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

TABUAÇO MINING PROJECT Main alternatives considered for the location of the mining infrastructures

The Passafrio location was chosen, for reasons related with distance, accessability, environment, favourable topography, minimization of impacts in the landscape and in the acquifers, and also facility in reaching an agreement with the landowners 37

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

TABUAÇO MINING PROJECT Location of the S. Pedro das Águias and Aveleira planned underground work, as well as of the mining infrastructure of Passafrio

Safety Dam

Tailings Dam

Waste Dump

38

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

TABUAÇO MINING PROJECT Preliminary Economic Assessment (September 2013)

Economic Model Summary

Units

Results

Production Ore Processed Recovered Metal

(kt) (MTU WO3)

3,557 1,387.239

Financial Revenue

(USDm)

496.2

Operating Costs

(USDm)

(244.6)

Operating Profit

(USDm)

246.6

Net Profit

(USDm)

196

Capital Expenditure

(USDm)

(86.8)

Cashflow

(USDm)

109.2

(USDm)

67.4

(%)

30.7

(USD/tore)

70.17

(USD/MTU WO3)

201.20

Post-Tax Reporting NPV @ 5% IRR Cash Cost Cash Cost

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TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

TABUAÇO MINING PROJECT – SOCIO-ECONOMIC ASPECTS

TOTAL INVESTMENT: € 84 MILLION (APPROX.) (DOES NOT INCLUDE EXPLORATION EXPENDITURE, NEITHER OTHER PRE-OPERATION EXPENDITURE, NOR GROUND ACQUISITION COSTS)

JOB CREATION IN THE PROJECT AREA: 119 DIRECT JOBS (PLUS AROUND 600 INDIRECT JOBS; AROUND 1200 JOBS DURING THE CONSTRUCTION PHASE)

POSITIVE INFLUENCE IN THE ECONOMY AND SUSTENTABILITY OF THE LOCAL AND REGIONAL BUSINESS ACTIVITIES DINAMIZATION OF THE LABOUR MARKET, WITH THE MAINTENANCE AND CREATION OF JOBS FOR SPECIALIZED PROFESSIONALS ACTIVATION OF COMMERCIAL RELATIONS, BOTH UPSTREAM AND DOWNSTREAM, WITH OTHER ECONOMIC ACTIVITIES SIGNIFICANT CONTRIBUTION TO THE NATIONAL AND LOCAL TAXES

MAINTENANCE OF THE LANDSCAPE AND OF THE HISTORIC HERITAGE (SÃO PEDRO DAS ÁGUIAS CONVENT, ETC.) 40

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

POSSIBLE SINERGIES: RELATIVELY CLOSE DEPOSITS WITH SIMILAR MINERALOGY TAROUCA, AND SPECIALLY ARMAMAR, HAVE SCHEELITE ORES WITH VERY SIMILAR COMPOSITION TO TABUAÇO, SO IT IS ADMITTED THAT THEY COULD VERY LIKELY BE PROCESSED THROUGH THE SAME PLANT

THE MAKING OF APT OR OF THE TUNGSTEN END PRODUCTS, DEMANDS A SIGNIFICANT “SCALE OF PRODUCTION” THAT WOULD HARDLY BE ATTAINED BY ONE SINGLE PROJECT. SO, IN ORDER TO VIABILIZE ONE APT PLANT IN PORTUGAL, IT WOULD BE NECESSARY TO CONSIDER JOINING THE PRODUCTION OF THESE THREE DEPOSITS IN A SINGLE APT PLANT. Base: Cartogr.Geol.1:500.000 do LNEG

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