Saracen Mineral : 200219 ASX - SAR Corporate Presentation - Theres nothing like Australian Gold

ASX GOLD PRODUCER -

THERE'S NOTHING LIKE AUSTRALIAN GOLD

CORPORATE PRESENTATION - FEBRUARY 2020

RALEIGH FINLAYSON - MANAGING DIRECTOR

MORGAN BALL - CHIEF FINANCIAL OFFICER

TROY IRVIN - CORPORATE DEVELOPMENT OFFICER

Qualification

This presentation has been prepared by Saracen Mineral Holdings Limited (Saracen or the Company) based on information from its own and third party sources and is not a disclosure document. No party other than the Company has authorised or caused the issue, lodgement, submission, despatch or provision of this presentation, or takes any responsibility for, or makes or purports to make any statements, representations or undertakings in this presentation.

You should be aware that as an Australian company with securities listed on the ASX, the Company is required to report reserves and resources in Australia in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code 2012 Edition ) ("JORC Code"). You should note that while the Company's reserve and resource estimates comply with the JORC Code, they may not comply with the relevant guidelines in other countries.

This is a presentation about geology, geoscientific interpretation, geoscientific speculation, gold deposits, gold potential, engineering, infrastructure, potential values, costs, risks, and related matters pertinent to Saracen's present and future activities as a publicly listed mineral exploration and production company. It includes forecasts, predictions, targets and estimates of future expenditures which may vary over time.

It is uncertain if further exploration will result in the determination of a Resource or Reserve. Where exploration, evaluation, operational and feasibility study expenditure estimates and budgets amounts are presented herein, ongoing prioritisation and scaling of expenditures will be subject to results and, where applicable, scheduling changes. Targeted production and other outcomes are subject to change, and may not eventuate, depending on the results of ongoing performance and assessment of data. All Reserves and Resources as referred to herein are in accordance with the JORC Code. Refer to Appendix A of this presentation for the relevant Competent Person statements. Resources are inclusive of Reserves.

Certain statements contained in the Presentation Materials, including information as to the future financial or operating performance of the Company and its projects, are forward looking statements. Such forward looking statements:

1. are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies;
2. involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements; and
3. may include, among other things, statements regarding estimates and assumptions in respect of prices, costs, results and capital expenditure, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.

The Company disclaims any intent or obligation to publicly update any forward looking statements, whether as a result of new information, future events or results or otherwise. The words "believe", "expect", "anticipate", "indicate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward looking statements.

All forward looking statements contained in the Presentation Materials are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and accordingly recipients are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein. The Presentation Materials do not purport to be all inclusive or to contain all information about the Company.

This presentation is not a prospectus, disclosure document or other offering document under Australian law or under any other law. It is provided for information purposes and is not an invitation nor offer of shares for subscription, purchase or sale in any jurisdiction.

Take care to question and carefully evaluate any judgments you might make, on the basis of the Presentation Materials, as to the value of Saracen and its securities. This presentation is not intended to provide the sole or principal basis of any investment or credit decision or any other risk evaluation and may not be considered as a recommendation by Saracen or its officers. Any investor reading the Presentation Materials should determine its interest in acquiring securities in Saracen on the basis of independent investigations that it considers necessary, prudent or desirable.

Saracen and its officers do not accept any liability for any loss or damage suffered or incurred by any investor or any other person or entity however caused (including negligence) relating in any way to this presentation including, without limitation, the information contained in it, any errors or omissions however caused by any other person or entity placing any reliance on the Presentation Materials, its accuracy or reliability.

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS	2

Corporate Overview

Key metrics (ASX:SAR)

Shares on issue	1,103m
Share price	A$4.12
Market cap	A$4.5b	At 19 Feb
		2020
Liquidity	30-day ADV 9.8m shares
Major indices	ASX200, GDX/GDXJ, MSCI Small cap
Cash, bullion, investments	A$284m
Debt	A$385m	At 31 Dec
		2019
Hedging	565koz @ A$2,027/oz (31 Jan 2020)
Safety - LTIFR	0.37 (v industry average 1.9)
Mineral Resources	15.0 Moz	At 30 Jun
Ore Reserves	7.0 Moz	2019

	0.2%	18%		Institutional - Australia
Geographic-		Institutional - Europe (ex-UK)
	4%		36%	Institutional - North America
		Institutional - UK
	3%
Ownership
7%			Institutional - Asia
				Institutional - Other
		33%		Retail

Board

Non-Executive Chairman

Tony Kiernan

Managing Director

Raleigh Finlayson

Non-Executive Director

Martin Reed

Non-Executive Director

John Richards

Non-Executive Director

Dr Roric Smith

Non-Executive Director

Samantha Tough

Executive

Chief Financial Officer

Morgan Ball

Chief Operating Officer

Simon Jessop

Corporate Development Officer

Troy Irvin

Chief Geologist

Daniel Howe

GM People, Culture and Communications

Marianne Dravnieks

12.0%

Substantials-

Van Eck Global

9.8%

BlackRock Group

Ownership

Others

78.2%

Thinking and acting like OWNERS - 98% of

SAR employees own shares in our company

3

Australian dollars converted at an exchange rate of A$0.68 per US$1

The all-Australian gold growth stock

• Acquisition of 50% of the Super Pit catapults Saracen into the next league of gold miners
• More production and cash flow:
• • FY20 guidance +500koz, FY21 guidance +600koz…
  • …from three operations within 300km of Kalgoorlie - Super Pit, Carosue Dam and Thunderbox
  • Immediate step-change in cash flow from the Super Pit
• More mine life:

 +10 years based on 7.0Moz Reserves* at 30 June 2019…	~300km	Western Australia

• • …>90% within 500m of three processing centres
• Conservative management building a more sustainable Saracen:
• • 7 year track record of meeting or beating guidance
  • Future-proofingthe business
  • Seizing the ESG opportunity

*Refer to the ASX release 18th November 2018 "Binding agreement to acquire interest in Super Pit "

LEINSTERThunderbox

LEONORALAVERTON

Carosue Dam

KALGOORLIE Super Pit

PERTH

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS

A more sustainable Saracen

2019 Sustainability Report

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS	5

Sector leading financial returns

ROIC, EBITDA margin, profit margin:

• Competition for capital is fierce…
• • …internally (given outstanding organic growth opportunities)…
  • …and externally (highly selective M&A only)
• Ensures translation of production success and M&A success into financial success
• ROIC: SAR ranked 4th out of 32 producers (BMO 2020E)
• EBITDA margin: 44% (half-year ended 31 Dec 2019)
• Underlying NPAT margin: 20% (half-yearended 31 Dec 2019)

	ROIC (2019A)		ROIC (2020E)

35%

30%

25%

20%

15%

10%

5%

0%

Producers Large

Producers Medium

Producers Small

Producers Overall

AU) (SAR Saracen

Source: BMO "The GoldPages" 10th February 2020, Saracen

ROIC = NPAT (before interest) / (shareholders equity + net debt)

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS	6

Super Pit - Overview

• Acquisition of 50% of the Kalgoorlie Super Pit for US$750m
• Tier 1 asset in a Tier 1 mining jurisdiction, previously "hidden" in global major miners… enter Saracen
• Future proofing our business with an established long life asset:
• • Enviable 12 year mine life based on 7.3Moz of Reserves* (100% basis)
  • Pipeline of further growth opportunities underpinned by an additional 4.4Moz in Resources* (100% basis) and outstanding exploration upside from a ~70Moz gold camp
• ~245kozpa (50% basis) at an AISC of ~A$1,470/oz* anticipated during pit wall remediation (same level as FY19, pre-wall slip >700kozpa on a 100% basis)
• Enter Northern Star Resources (NST AU) - A like-minded JV partner with complementary skills to unlock latent value

*Refer to the ASX release 18th November 2018 "Binding agreement to acquire interest in Super Pit "

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS	7

Super Pit - An outstanding start…

One of Australia's largest gold mines:

 Excellent first month of production (50% basis):

 Gold production: 20,634oz at an AISC of A$1,522/oz

 Net mine cash flow: A$11m (after A$2.2m growth capital)

 Excellent start to new partnership with NST:

 Executive Management Committee established with two

representatives each from SAR and NST; Joint

operatorship agreed

 JV partners initiated a strategic review / optimisation

covering operations, exploration and growth

 Kous Kirsten appointed General Manager Operations (GM

Gwalia mine until 2018, before that AngloGold Ashanti)

733

689

730

490

Boddington

Super Pit

$1,241

606

	913
593	467	519

Cadia East

Tropicana

$991

732

465

525

426

452

370

365

284

272

Tanami

Telfer

St Ives

Sunrise Dam

$918$1,023

752730

283

295

283

277

Jundee

Granny Smith

$1,470

490

 September quarter 2020 - Update to Resources and Reserves

and FY21 production guidance

FY15	FY16	FY17		FY18	FY19
	Gold Production (Koz)		AISC (A$/oz)

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS	8

…with a lot more to come

Scale, longevity and growth:

• Resource averages a globally leading 45,000oz per vertical m…
• …significantly larger than our well endowed Carosue Dam and Thunderbox mines
• Underpinning historical production levels of >700koz pa (100% basis)
• Historical underground mining up to 550m below current Resources
• Deepest drilling highlights the mineralization is open at depth
• Significant inventory upside with further drilling and evolving geological focus and understanding

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS	9

Carosue Dam - Overview

• Simple business plan "we mine where we mill"…
• …afforded by the transformational growth of Karari - Dervish
• 1.8Moz in Reserve (including Karari - Dervish 1.2Moz)
• Mill expansion to 3.2Mtpa underway (currently 2.4Mtpa)
• Open pit mining to resume in FY21 - Simple single fleet mine plan underpinned by 9.0Mt Reserves (+10 years of additional mill capacity of 800ktpa)
• Future proofing - Ore stockpile of 44koz (31 December), 251koz drilled, broken and developed stocks underground
• Under-exploredmine corridor presents opportunity for further repeat deposits e.g. Atbara discovery within 4km of the mill
• Stellar regional exploration upside from a ~23Moz gold camp

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS	10

Carosue Dam - Sustainability

Solar farm:

 New array - Now live!

 40% cheaper than current power generation

 Forecast to produce 1,647MWh p.a. (equivalent to ~300 households)

 Offsets 988t of CO2 p.a.

 Options to expand…

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS	11

Carosue Dam - Better at depth

Karari - Dervish mine:

• Reserve increased to 1.2Moz, up 20%
• Materials handling optimisation - Increased productivity / lower costs from one of the largest tonnage underground gold mines in Australia
• Drilling continues - Open at depth, grade continues to increase
• Potential exploration in the "gap"

via link drive…	"Reserves grow 32% to 3.3Moz, underpinning long life 400kozpa".
	Please refer to the ASX releases dated 1st August 2019 -

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS	12

Carosue Dam - Mill expansion on track

Capacity increase to 3.2Mtpa:

• Mill throughput increases to 3.2Mtpa (from 2.4Mtpa) during FY20/21
• A$34m capital cost
• Recovery increases to 94% (from 93%)
• Unit milling costs reduce by ~A$1.50 - A$2.50/t
• Commissioning targeted December Q 2020
• Additional ore required to fill the expanded mill will be sourced from a single fleet open pit mine plan (+10 years at 800ktpa in Reserves)
• Mill feed:
• • 70-75%underground ore
  • 30-25%open pit ore

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS	13

Carosue Dam - Seismic project

50km², +5km deep:

 Highest resolution hard rock 3D seismic survey in Australia

 Second largest by area (includes Karari- Dervish and Atbara)

 Interpretation underway

 Significant number of previously unknown structural and geological features identified

 Drill targeting to follow

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS	14

Thunderbox - Overview

• 'Does what it says on the tin' (~100% reconciliation to date)
• ~1.5Moz in Reserve
• Growth opportunities include:
• • "Thunderground" - 720koz Reserve @ 2.0g/t, high productivity, low cost, long life simple underground mine, development progressing, materials handling opportunities due to very large scale
  • Thunderbox D Zone - Growing near surface C / D Zone cut-back,upgraded by recent drilling including 43m @ 3.7g/t and 73m @ 1.9g/t
  • Otto Bore - 60koz Reserve @ 2.0g/t, shallow open pit, 9km from mill
  • Wonder North - "Bolt-on" acquisition, 660koz Resource^, drilling underway
• Future proofing - Record ore stockpile of 121koz at 31 December, eight levels already developed at "Thunderground" prior to stoping

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS

• Refer to the ASX:BGH release dated 24th April 2019 - "Quarterly activities and cash flow reports - 31 March 2019".

15

Thunderbox - 'Does what it says on the tin'

 High productivity / low cost

 Top down method (no pit staging)

 As the mine progresses:

 Grade rises (1.0 to 1.9g/t)  Strip ratio falls (10 to zero)  AISC falls to ~A$625/oz

 Stockpiles grow to 114,000oz  Cash flow increases

dramatically

16

…with a lot more to come

Please refer to the ASX releases dated 1st August 2019 - "Reserves grow 32% to 3.3Moz, underpinning long life 400kozpa".

• C Zone - FY20/21 base load…
• …supplemented by Kailis open pit high grade soft oxide
• "Thunderground" development underway, stoping from FY21 - Recent drill results include 89m
• • 2.0g/t and 72m @ 2.4 g/t
• D Zone cut-back long term open pit feed - Recent drill results include 86m @ 1.7g/t and 72m
• • 2.4 g/t
• All zones open down plunge
• Satellite pits e.g. Otto Bore,

Wonder North to be integrated
into the life of mine plan	17

"Thunderground" - Sleeping giant

One of Australia's largest tonnage underground mines:

A Zone	C Zone	D Zone
A Zone development
(existing)
	Main return	Additional fresh air
	A Zone portal	intake
		C Zone portal

• • 11Mt Reserve (710koz)…
  • …remains open
  • A$61m pre-production capital
  • A$97/t ore revenue
    (A$1,600/oz)…
  • …increases to A$133/t ore revenue (A$2,200/oz)
  • A$71/t ore operating costs
  • i.e. robust operating margins
  • A$1,251 / oz AISC*
• Post the pre-production period, 100% of capital is included in the AISC

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS	18

There's nothing like Australian gold

• We have a simple business plan - We mine where we mill, within 300km of Kalgoorlie
• We deliver - 7 year track record of meeting or beating guidance
• We have acquired 50% of the globally renowned Super Pit - Immediate step-changein cash flow generation
• We are future proofing our business
• We have an outstanding platform for growth in a sector bereft of growth - People, assets, balance sheet
• We have a premium product - 100% Australian gold

GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS	19

Contact Details:

Troy Irvin

Corporate Development Officer phone: [phone] email:[e-mail] www.saracen.com.au