Navarre Minerals : EGM Presentation - November 2021

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E X T R A O R D I N A R Y G E N E R A L M o n d a y , 1 5 N o v e m b e r

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TRANSACTION OVERVIEW

U N E A R T H I N G P R O S P E R I T Y

ASX: NML

• Navarre Minerals Limited ("Navarre"), via its 100% owned subsidiary Navarre Minerals Queensland Pty Ltd ("Navarre Minerals

	Queensland"), has agreed to acquire the Mt Carlton Gold Mine ("Mt Carlton") and Crush Creek project ("Crush Creek"), located in
	Queensland, Australia (collectively, the "Mt Carlton Operations") from Conquest Mining Pty Limited ("Conquest Mining"), a 100%
	owned subsidiary of Evolution Mining Limited ("Evolution") (the "Transaction")
	• Acquisition consideration up to A$90 million ("Consideration"), comprised of:
	• A$40 million in upfront consideration paid at the time of Completion, of which payment of A$13.2 million will be satisfied by
	Navarre issuing ordinary shares to Evolution, calculated by reference to the issue price per share under the Placement
	• Up to A$25 million in additional cash consideration payable upon the realisation of the following aggregate recoverable gold
Tra saction	production milestones from Crush Creek:
Overview	• A$5 million at 50koz of gold production;
only	• A$5 million at 100koz of gold production; and
• A$15 million at 175koz of gold production
	• Up to A$25 million in additional cash consideration linked to the future gold price, with payments commencing 1 July 2023 and
	running for a maximum of 15 years, calculated as follows:
	• If the average spot gold price in any quarter exceeds the equivalent of A$2,250/oz, 5% of the average spot gold price multiplied
	by the aggregate ounces produced from the Mt Carlton Operations and sold in that quarter
	• Completion of the Transaction is expected to occur 5 business days after relevant customary closing conditions (including shareholder
	approval) have been satisfied
Transaction	• The Transaction and associated costs to be funded from the fully underwrittenconditional placement of A$36.8 million to new and
useF nding	existing institutional and sophisticated investors at an issue price of A$0.075 per fully paid ordinary new share
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ASSET OVERVIEW

U N E A R T H I N G P R O S P E R I T Y

ASX: NML

The Mt Carlton Operations comprises an open pit and underground mine, and a 950ktpa processing plant situated on a tenement package of ~815km2

Overview
Location	▪	150km south of Townsville, Queensland
Tenement Package	▪	~815km2 (3MLs, 1 MDL, 11 EPMs)
Mi	eralisation Type	▪	High sulphidation epithermal deposit	Townsville
Mi	i g Method	▪	Open pit and underground (open stoping)
	Mt Carlton Operations
Pr	cess Method	▪	Conventional crushing, grinding and flotation to produce a	Mackay
	polymetallic concentrate
onlyPr cess Capacity		Queensland
▪	950ktpa
Brisbane
Workforce	▪	153 Full-time Employees / 120 Contractors (at 30 June 2021)

	Acc ss		▪ via ~40km gravel road (off Bruce Highway)
	Pow r		▪ Grid power supplied to site mine through 22kV lines with a
			combined capacity of 6MW
	Water		▪ Burdekin river pipeline (225mm, 36km) 600ML agreement in
			place
	Safety		▪ Total Reportable Injury Frequency: 7.4 (12mth moving avg. at
			30 June 2021)
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(1)	▪ 9.53Mt @ 1.26g/t for 387koz Gold
	Mineral Resources
		▪	2.69Mt @ 0.49% for 13kt Copper
	Ore Reserves(1)		▪ 6.43Mt @ 0.81g/t for 168koz Gold
			▪	0.62Mt @ 0.74% for 5kt Copper							3
	(1) Extracted from Evolution's ASX Release dated 17 February 2021 entitled "Annual Mineral Resources and Ore Reserves Statement". See pages 35-37 for further details and also refer to Evolution's ASX Releases dated 12 February 2020 entitled
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"Annual Mineral Resources and Ore Reserves Statement" and dated 19 June 2020 entitled "Mt Carlton Update"

Telstra Hill open pit. Requires verification of prior drilling data but a likely supplemental ore source. Not currently included in MROR

POTENTIAL FOR MINE LIFE EXTENSION

AT MT CARLTON

U N E A R T H I N G P R O S P E R I T Y

ASX: NML

Residual resources at Mt Carlton economic under current prices, with underground extensions possible through investment in underground drilling. Permitting of satellite deposits advanced

Overview	Mt Carlton (V2 and A39) and Satellites
	• Economic extensions identified through technical due
	diligence as a greater flexibility with price assumptions
	and incremental drilling not captured in last MROR
	(December 2020)
	•	V2 pit: Link Zone/Western Feeder Zone.
only	Mineralisation continues to extend beyond existing
		planned extraction
	•	V2 Underground. Mining ongoing, extents remain
use	untested
A39 Underground
	•
	•	Mt Carlton United open pit. Ore body remains open at
		depth and along strike

•

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CRUSH CREEK LOCATION AND

PROJECT AREA OVERVIEW

Crush Creek is located ~30km southeast of Mt Carlton in Queensland

U N E A R T H I N G P R O S P E R I T Y

ASX: NML

Location of Crush Creek in Relation to Mt Carlton

Crush Creek Project Area Showing Regional Targets

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