Regency Mines
Corporate Presentation
Dec 2018 UpdateLondon Stock Exchange AIM Listed: RGM
Nickel-Cobalt
“Energy Revolution”
Battery Metals
Metallurgical Coal
Natural Gas
Hydrocarbons
EsTeq Ltd.
Battery Storage
Battery Technologies
Mining Technologies
Technology
Joint Ventures
Disposals
Asset Sales
Transactions
www.regency-mines.com Regency Mines PLC : AIM RGM
Regency Overview
Mambare - PNGNickel - Cobalt JORC Resource
Large Scale and 3% Explored to Date
New Framework Agrement with JV Partner
Licenses Renewed – 2019 Workplan
Curzon Energy PLC– OR, USACoal Bed Methane Project
$20m Historic Spend
5 Wells in Place
Further Development Planned
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Mining Equity Trust- USAMet Coal Roll Up Vehicle
Completed First Acquisition – Omega Holdings
Production at Omega Ongoing
Additional Targets Under Consideration
Global Footprint
EsTeq Limited - UK RGM Subsidary – 100% Owned
Battery Storage and Related Technologies
2 Investments Made to Date
RGM Leveraged to Disruptive Changes in Global Battery Technologies and Battery Proliferation
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Strategic Themes
Battery Metals
o Mambare – Nickel / Cobalt Project
o Key Elements of Cathode Raw Materials
o Metals for Lithium Ion Batteries
o Electric Vehicles / Battery Storage / Grid Storage
Battery Technologies
o EsTeq – Energy Storage Technologies
o Battery Focused Subsidiary
o Whitecar Ltd –all Electric Rental Cars
o Battery End Uses
o Allied Energy Services -power generation and grid management
o Future Targets Under Consideration
Hydrocarbons
o Curzon - Coal Bed Methane Project
o Natural Gas
o Cleanest Fossil Fuel
o Metallurgical Coal
o High Value Special Use Coals
o Use in Steel/Filters/Other
PROJECTSMINERAL
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o Coal roll-up vehicle set up to acquire US coal assetso 47% interest in MET with Legacy Hill Resources (LHR)
o LHR - UK Based Private Mining Houseo RGM funded $2m towards first acquisition o Aug 18 MET acquired Omega Holdings LLCo Omega currently in production in SW Virginia, USA
Metallurgical Coal Interests
MET – US Met Coal Acquisitions Vehicle
47%
o Speciality Producto Carries Higher Priceso Multiple Offtake Opportunities
• Coke - Steel Producers• Ferrosilicon• Filters• Cosmetics
Metallurgical Coal
2015 2020e 2025e 2030e 2035e
Supply Demand
Mining Equity Trust (MET)
Coal with a Future – Demand Expected to Remain Strong
Omega Holdings LLCFirst MET Acquisition
100%
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EconomicsLarge offtake partner under contractProvides baseline and stabilityAdditional tons sold into met coal marketsDedicated trading function addedMET to improve margins
In Production 2 HW300 Highwall Miners OperatingMultiple historic seams – from existing highwallSmall footprint – 70 person teamMultiple years of production in place 3rd Party Coal Purchases Added
Multiple Historic Coal Seams Exploited at 2 Sites
100% owned by METCurrently in production in SW Virginia5 Year track record of operationHigh quality management teamExisting operation with room for optimization
Omega Holdings LLC
700,000 Tons
$30m+ Revenues
Production Forecasts
Highwall ~1,000ft Depth
Omega Coal Operations
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Met Coal Operations
2 x Highwall Miners Located at 2
Sites at Omega
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o Historic Nickel/Cobalt project at Mambare in Papua New Guinea
o Option to acquire interest in North American Vanadium exploration project
o Seeking to leverage exposure and upside to the raw materials making the energy storage revolution possible
o Nickel – key to battery density
o Cobalt – key to battery stability
o Vanadium – utilized in vanadium-redox batteries providing efficient storage and controlled energy release in industrial and grid applications
Battery Metal Interests
Cobalt
Nickel + Cobalt + Vanadium
60,000
100,000
140,000
180,000
220,000
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Supply Demand
Nickel
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Supply Demand
o Significant gap between supply and demand is projected after 2020
o Uses:• Steel production• Batteries• Metal plating• Coins• Turbine blades• Kitchenware
o Imbalance of supply and demand is expected to widen
o Uses:• Batteries• Aircraft engines• Corrosion/wear resistant
alloys• Jewelry
Source: Wood Mackenzie
Source: Canaccord Genuity
o One of World’s Largest Laterite Deposits o Main target 3% Drill Tested – Significant Upside Potential
o JORC compliant Mineral Resource Estimate (MRE) – 2012:• 162.5 Mt @ 0.94% Ni and 0.09% Co (combined Indicated & Inferred)• 47 Mt @ 1.23% Ni and 0.08% Co• Compares Favorably to CleanTeq’s Sunrise Project
o Mambare Licensed to use the DNi Process – 40,000t p/a
o New framework agreement in place with JV Partner
o 2019 workplan being prepared
o DSO options under consideration
Kokoda Township
Plateau
EL1390
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Mambare Nickel Cobalt Project
WORLDWIDE BUSINESS
o Designed to Process Nickel Laterites
o Tested at Pilot Plant Scale, Perth, AUS
o Uses Nitric Acid – 95% Recycled
o Sustainable and Cost Effective
o Low CAPEX and OPEX
o Unlocks World’s Lateritic Nickel Resources
Direct Nickel Technologies
Nickel – Cobalt Project1.53m tonnes Nickel
146,000 tonnes Cobalt
50%
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o 45-day Option to acquire a 50% interest in a North American vanadium exploration project
o Up to 45 km of potential strike
o Target – vanadium in black shale deposits, which favour low-cost mining and processing methods
o Historical soil, silt, rock sampling outlined broad zones of anomalous vanadium
o Limited to date drill testing identified multiple vanadium bearing intervals
Vanadium Project Option North American Vanadium Project Vanadium
o Vanadium price spiking in recent years
o >70% is produced through co-production with steel
o Uses:• Steel alloys• Chemical industry• Energy storage• Ceramics
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USD
/lb
V2O5 Vanadium Pentoxide 98% Price
& GASOIL
o US Focused E&P Companyo Listed in 2017 in UK on the LSE:CZNo 100% stake in Coos Bay, Oregon - Coal Bed Methane projecto Exploring other project opportunities
o Coos Bay – Acquired out of Bankruptcy - $20m+ historic spendo 1,000 BCF Gas in Place; 273 BCF of 2C contingent resourceso 45,000 acres / 400 potential well locations o 5 wells drilled by previous operator
o Coos Bay Advantageso 16 Year Historic Gas Premium to Henry Hubo Ready Access to Regional Pipeline and Gas Network o Low Cost Drilling on Industrial Logging Land
o 2018 Work Program Focused on Reworking Existing Wells o 5 wells currently on long term test o Curzon exploring further development optionso New wells under consideration o Discussions ongoing with potential farm-out partners
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Curzon Energy PLC
Natural Gas
o Natural Gas - bridge in transition to decarbonized economy – share expected to grow
o CO2 emissions 40-50% lower than thermal coal and 25-35% lower than petroleum
o 10% of US natural gas production from coal bed methane (CBM)
o Uses:• Electricity generation• Heating• Transportation
21%
22%
23%
24%
25%
26%
2000 2014 2035e
Worldwide natural gas share in primary energy (Source: BP)
Curzon Energy PLC
8.4%
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Workovers completed – May 2018
Opened Upper and Lower Coaledo to production
Perforated new zones and cleaned out wells
Targeting rate of 100Mscf/day
5 Existing Wells
Typical Well Costs: $350k~2,500ft depth 5-10 zones
2 x New Wells
Phase I
Crosses the property / ready for connection
Feeder line connects to interstate line
Letter of Intent signed to purchase Curzon gas at premium to Henry Hub
Coos Bay Gas Pipeline (12in)
Upper Coaledo
Two Horizons
Lower Coaledo
58 x New Wells
Phase II200 x New Wells
Phase III
Curzon Development Potential
Extensive Infrastructure
Oversized pads already pre-cleared
- includes several new well
locations
One of five existing wells on the
property – 2 new to be drilled
Existing Wells
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LimitedEsTeq
Current battery technologies rely heavily on scarce and often previously ignored metals – Lithium, Cobalt, Nickel and others
Battery Technologies/MetalsCreated to invest in and develop energy technology projects and applications
EsTeq Overview
Demand driven by transition to electric vehicles (EVs), home power storage units, industrial storage and consumer electronics
Battery End UsesGreater reliance on renewable energy sources means greater reliance on demand power, backup generation, frequency response, capacity management and energy storage services
Grid Services
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Energy Storage Technologies
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EsTeq Investments
o Grid Storage / Management / Services
o Battery Metals
o Battery Technologies
o Power Storage Applications
Additional Targets
o EV Only Rental Cars – 100% Electric Fleet
o Tesla + ultimately other EVs
o Order via app / no queuing/ once price / no extra charges
o Operating in the UK – European Expansion Underway
o Commenced operations in Oslo and Munich
o Entry planned into Germany and Switzerland
o Projected 915 Cars / 41 sites / £13.5m EBITDA in 4 years
o Nearest Comp – Silvercar Acquired by Audi in 2017 @ > $100m valuation
Whitecar Limited
o Distributed power generation and grid management services to the National Grid and other commercial clients across the United Kingdom
o Heads of Terms signed with major industrial partner on 50MW site in the UK
o Formal planning permission submitted on second 20MW site
o Partnership offered that may allow the purchase of several permitted sites varying between 20MW and 50MW
o Various forms and structures of finance being explored
Allied Energy Services
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Hydrocarbons/ Battery Metals/ Technology
Blue Sky Exploration and Development
Underpinned by Met Coal Production
Foundations for Outperformance
Optimal Positioning
London Stock Exchange AIM listing: AIM:RGM
Share Price: 0.40p
Market Capitalisation: £3.18m
Shares in Issue: 796,239,654
Directors:Andrew Bell Chairman and CEOScott Kaintz Director and COOEdmund Bugnosen Non-Executive Director
Corporate Advisers:Nominated Adviser Beaumont Cornish LtdAuditors Chapman Davis LLPAIM Broker First Equity Ltd Solicitors Druces LLP
Company Secretary: Stephen Ronaldson
Further Information
@Regency_Mines
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