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PDAC INVESTOR PRESENTATION March 2013 TSXV: KBT
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Page 1: Kombat March 2013 Investor Presentation

PDAC INVESTOR PRESENTATION March 2013

TSXV: KBT

Page 2: Kombat March 2013 Investor Presentation

NAMIBIA

Significant copper region

Stable, democratic and mining friendly*

9% of GDP

8,000 Namibians employed

37.5% tax rate

3% royalty rate

Well supported government and local partnership model

Track record of success

*Namibia Central Bureau of Statistics and Transparency International, 2010 2

Page 3: Kombat March 2013 Investor Presentation

ONE OF THE WORLD’S MOST PROSPECTIVE COPPER REGIONS

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Page 4: Kombat March 2013 Investor Presentation

4 Source: Mineral Deposits of Southern Africa, Geological Society of South Africa

EXPLORING FOR THE NEXT TSUMEB

24.7 Million tonnes

90+ Years of production

5.5% Cu 11.8% Pb 171 g/t Ag

Page 5: Kombat March 2013 Investor Presentation

WELL POSITIONED

5 mining licenses

5 prospecting licenses covering ~ 2200 km2

3 past producing mines (Cu, Ag, Pb, Zn, V)

Historical deposits and new discoveries

Infrastructure: power, water, roads, rail access

Mill and concentrator with replacement value of more than $100M

On Walvis Bay Corridor with proximity to smelter at Tsumeb and Port at Walvis Bay

*Namibia Central Bureau of Statistics and Transparency International, 2010

Kombat

Walvis Bay

Tsumeb

Windhoek

5

Paved Road Rail

Page 6: Kombat March 2013 Investor Presentation

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REGIONAL GEOLOGY

Otavi

KOMBAT

Tsumeb

0 40km

23S 23S

17E

WINDHOEK

N 17

30’E

19 30’S

Karoo Dyke – olivine dolerite

Tschudi & Kombat Fms – feldspathic sandstone, slate

Tsumeb Subgroup – dolostone, limestone, mixtite Abenab Subgroup – dolostone, limestone, marl, shale Nabis, Askevold & Varianto Fms – quartzite, meta-andesite, agglomerate, mixtite

Grootfontein Basement Complex – granite, gneiss, mafic schist

LEGEND

Adapted after Galloway

Otavi Mountainland; situated on northern Carbonate Platform of the Damara Orogen

Late Proterozoic to early Phanerozoic (500-550Ma) complex deformation 2 phases of folding generally EW to NE metamorphism; lower greenschist

(prehnite-pumpellyite in some areas)

Kombat is situated on the northern flank of the canoe-shaped Otavi Valley Syncline; a double-plunging syncline with the northern limb dipping at 20-75o to the south. The southern limb is overturned.

KOMBAT

Page 7: Kombat March 2013 Investor Presentation

Berg-Aukas – Zn, Pb, V stratabound lenses brecciated pipe-like stratabound with north-south trending, steeply dipping lenses

or ore-filled fractures Tsumeb – Cu, Pb, Zn, Ge breccia pipe single largest known deposit of germanium over 200 mineral types and type location for over 50 Tschudi – Cu, Py metal precipitation by replacement of epigenetic py Kombat – Cu, Pb, (Zn), Ag enigmatic?

MAIN BASE METAL TYPES IN OTAVI MOUNTAINLAND

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Page 8: Kombat March 2013 Investor Presentation

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MINE GEOLOGY

= Dolomitic units of the Huttenberg Fm Slates, phyllites of the Kombat Fm

= Mineralized zone (projected) showing axis of elongation

Fault Zone Kombat monocline trend (projected to surface)

(Adapted from J. Deane after Innes and Chaplin (1986) and C. and S. Galloway 1985)

Asis Ost

E900 Kombat East

Kombat Central

Kombat West

Asis West

Asis Far West

AsisAsisAsisAsis

N

7860

00m

E

7800

00m

E

7818000mN

Page 9: Kombat March 2013 Investor Presentation

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IDEALIZED KOMBAT CROSS SECTION

Monoclinal Structure

Stockwork Zone

Phyllite (Kombat Fm)

Unconformity

Dolomitic Phases of Huttenberg Fm

Otavi Valley Sandstone

Fe-Mn Oxide Silicate Assemblage

Massive Ore

Legend

(looking East)

Adapted after Galloway

Page 10: Kombat March 2013 Investor Presentation

Recruited Geological Team Re-assessed historical work and data Commenced exploration and drilling programs and

identified targets on mining licenses and EPLs Completed mechanical survey of mill and

concentrator including power supply requirements and delivery options

Advanced discussions with NamWater on off-take Advanced discussions with Epangelo and other

strategic partners Strengthened Board and Management

MILESTONES

10

Page 11: Kombat March 2013 Investor Presentation

KOMBAT COPPER TECHNICAL TEAM

Technical Advisors

Robert Friesen, P.Geo. 45+ years of experience worldwide in underground and open pit mining operations, mine area exploration, and the development of projects from pre-feasibility through production.

Gerald Gauthier, P.Eng. 40+ years international experience in the mining industry building and operating open pit and underground mines.

Nathaniel Chouinard, P.Eng. 18+ years experience operating international mining and mineral processing projects. Specialty in Mining Engineering.

Tom Neelands, P.Geo. 35+ years experience as geologist within Canada and internationally. Three significant discoveries including FDN in Ecuador.

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Geological Team

Colin Russell, P.Geo. 25+ years exploration experience managing exploration programs from grassroots to advanced resource definitions.

Gwendal Madec, M.Sc. 10+ years Namibian experience focused on hydrogeology and resource definition campaigns.

Ralf Wartha, M.Sc. and Mineralogist 30 years Namibian resident. World recognized mineralogist with wide ranging Namibian experience.

Dr. Roger Laine, Ph.D. 35 years of international industry experience throughout the Americas, West & Central Africa and Europe, specializing in exploration, development, geostatistics and reserve estimating, underground and open-pit mining, grade and quality control.

Page 12: Kombat March 2013 Investor Presentation

SUBSTANTIAL ASSETS IN PLACE 12

Page 13: Kombat March 2013 Investor Presentation

1,200 Ha

5 Licenses

2019 Renewable

13

Kombat

Harasib

Gross Otavi

MINING LICENSES

Page 14: Kombat March 2013 Investor Presentation

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50 YEARS OF MODERN MINING OPERATIONS

8.7Mt 3.1% Cu, 1.1% Pb, 26g/t Ag

Page 15: Kombat March 2013 Investor Presentation

NamPower

Facility

NamPower

Facility

Rail AccessRail Access

Flotation

Filtration

Flotation

Filtration

Rod/Ball MillsRod/Ball Mills

Diesel Power FacilityDiesel Power Facility

Jaw CrusherJaw Crusher

Thickening

Tanks

Thickening

Tanks

Ingress/Egress RampIngress/Egress Ramp

No 1 CrusherNo 1 Crusher

Secondary CrusherSecondary Crusher

Rod and Ball Crushers

Flotation and Filtration Circuits

Diesel Power Generators

Shaft Hoist

KOMBAT MINE: COMPLETE MINING FACILITY ESTIMATED $100 MILLION REPLACEMENT COST

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Page 16: Kombat March 2013 Investor Presentation

ADD TALBLE Of Historical production and the cashflow that came from the mill in a full yesr when everything was running smooth

EXAMPLE OF PRODUCTION AT KOMBAT MINE

Year Ore Milled (t) Cu (%) Pb (%) Ag (g/t)

1911–1925 4 957 17.8 * *

1985 332 088 4.00 1.42 32

1986 358 427 3.65 1.34 31

1987 325 153 3.88 1.29 30

1988 350 689 3.09 1.04 24

1989 233 970 1.82 0.36 32

1990 363 262 2.52 1.14 16

1991 409 279 3.13 0.93 22

TCL historic data, non-compliant * no data available

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Page 17: Kombat March 2013 Investor Presentation

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FOCUSED ON DEFINITION OF NEW RESOURCE

Page 18: Kombat March 2013 Investor Presentation

800 m exploration shaft circa 2002

Total cost ~ $30M

Designed to provide underground access to AFW potential ore and facilitate economic resource definition

Significant reduction in exploration costs and timing compared to surface drilling

Significant hoisting and pumping capacity

Controllable water management

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WORLD CLASS EXPLORATION SHAFT

Page 19: Kombat March 2013 Investor Presentation

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CONFIRMATION OF HIGH-GRADE COPPER & SILVER

Page 20: Kombat March 2013 Investor Presentation

SIGNIFICANT ASSAYS FROM HISTORIC ASIS FAR WEST DIAMOND DRILLING RE-SAMPLING

20

Hole From (m) To (m) Width (m) Cu (%) Ag (g/t)

AW90A 527.00 530.20 3.20 7.66 25.8

(includes) 528.00 529.00 1.00 21.60 72.5

AW90B 482.00 485.00 3.00 1.52 7.8

AW95C 598.00 605.00 7.00 * 34.7

(includes) 601.00 603.00 2.00 4.37 106.0

AW98C 705.30 715.00 9.70 1.60 *

(includes) 709.30 713.10 3.80 3.31 33.5

AW101A 735.00 745.00 10.00 8.09 124.1

(includes) 739.00 745.00 6.00 12.98 205.3

(includes) 741.00 742.00 1.00 29.70 457.0

Page 21: Kombat March 2013 Investor Presentation

SIGNIFICANT ASSAYS FROM HISTORIC ASIS FAR WEST DIAMOND DRILLING RE-SAMPLING

21

Hole From (m) To (m) Width (m) Cu (%) Ag (g/t)

AW105E 878.00 883.00 5.00 * 4.1

(includes) 880.00 882.00 2.00 1.70 4.8

AW105G 711.00 720.00 9.00 1.84 23.2

(includes) 714.00 718.80 4.80 2.93 39.2

AW108A 850.00 858.00 8.00 * 10.4

(includes) 854.00 856.00 2.00 2.73 26.5

AW114 1081.00 1088.80 7.80 * 8.6

(includes) 1082.00 1084.00 2.00 0.80 12.5

AW118B 876.00 885.30 9.30 * 10.9

(includes) 878.40 881.00 2.60 1.09 19.0

Page 22: Kombat March 2013 Investor Presentation

SIGNIFICANT EXPLORATION UPSIDE 22

Page 23: Kombat March 2013 Investor Presentation

PRICE INCREASE SINCE 2009

225% Copper

IMPROVED MINERAL ECONOMICS

95% 140% 67%

Zinc Lead Silver

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Page 24: Kombat March 2013 Investor Presentation

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Paved Road Rail

5 Exclusive Prospecting Licenses

2,258 Km2

Cu, Ag, Pb, V Highly prospective exploration region

EXCLUSIVE PROSPECTING LICENSES

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Page 25: Kombat March 2013 Investor Presentation

HIGHLY-PROSPECTIVE TARGETS IDENTIFIED

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Page 26: Kombat March 2013 Investor Presentation

Domingo targets are situated on the southern limb of the well-known Tsumeb syncline

Heckers breccia is a silicified breccia, with malachite and chalcocite

Target is the contact zone down dip of the Domingo showing on the south limb of the Tsumeb syncline

DOMINGO PROSPECT

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Domingo Hecker’s Breccia

Domingo

Page 27: Kombat March 2013 Investor Presentation

Tschudi underground mine historically produced Cu and Ag. Presently planning for opencast mining.

*Resources: 45Mt ore @ 0.8% Cu and 10g/t Ag.

Ore was shipped to nearby smelter in Tsumeb.

Located in the prospective Tschudi area are nearby old workings producing Cu-V; Karavatu, Bobos and !Uris.

* historical, non 43-101 compliant

TSCHUDI EXTENSION TARGET

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Area of interest to be explored

Page 28: Kombat March 2013 Investor Presentation

1. Complete verification drilling and historical re-evaluation study to define economics of deposit

2. Prove and expand the existing resource from exploration targets within the AW and AFW mine area

3. Evaluate Gross Otavi and Harasib mining licenses

4. Advance existing EPL exploration with specific targets identified on known historical mineralisation

5. Capitalize on opportunities to acquire additional EPLs

6. Monetize redundant equipment to fund exploration

7. Economic evaluation of tailings

8. Acquisitions and strategic partnerships

2013 OBJECTIVES

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Page 29: Kombat March 2013 Investor Presentation

MANAGEMENT & DIRECTORS

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Strategic Consultants Duane Parnham • +12 years African experience

• Successful track-record of developing projects

Knowledge Katti • Identifies strategic resources

• Forms partnerships with capital/expertise and host countries

Alex Helmel Director and President Scott Kelly Director & Executive VP Amish Patel Director & CFO Mike Slater Director & Corporate Secretary Rick Vaive Director Tom Neelands Director Nathaniel Chouinard Director

Page 30: Kombat March 2013 Investor Presentation

Item Share Information

Symbol TSXV: KBT

Share Price $0.22

Basic Shares 82,295,047

Warrants** 33,561,031

Options 4,250,000

FD Shares 119,806,078

Market Capitalization ~$18.1M

CAPITAL STRUCTURE *

30 *All values as at Feb 28 2013 ** Warrant proceeds on exercise of $25.5 million

Page 31: Kombat March 2013 Investor Presentation

One of the world’s most prospective copper regions

Opportunity to materially increase resources

Significantly improved mineral economics

Experienced exploration team in place

Focus on resource definition and exploration potential

Excellent infrastructure

Unparalleled partnerships and local support

Access to capital and talent

WHY INVEST?

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Page 32: Kombat March 2013 Investor Presentation

Contact Scott Kelly Executive Vice President [email protected] TF +1 855 565 8114 x.4 TSXV: KBT

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