an african gold mining and exploration company

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AN AFRICAN GOLD MINING

AND EXPLORATION

COMPANY

Corporation Presentation / February 2017

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DISCLAIMER

Disclaimer

This presentation has been created to provide general information, solely for the reader’s general knowledge, about Metallon Corporation (“Metallon”), its subsidiaries, properties and

activities, as well as the countries it operates in.

Although Metallon believes that the information included in this presentation is accurate and current, such information is not intended to be a comprehensive review of all matters and

developments concerning Metallon and Metallon does not warrant or make any representations or claims as to the authenticity, validity, accuracy, completeness or currency of the information

provided in this presentation.

Moreover, Metallon, its directors and officers assume no responsibility for the information or representations contained in this presentation and shall not be liable or responsible for any claim

or damage, direct or indirect, arising out of the interpretation, reliance upon or other use of the information provided herein.

No information in this presentation constitutes a solicitation, offer or recommendation to engage in any investment activity, to effect any transactions, or to conclude any legal act of any kind

whatsoever.

Forward-looking statements

Certain statements included in this presentation constitute “forward-looking statements” which, based on numerous assumptions, involve known and unknown risks, uncertainties and other

factors which are beyond Metallon’s control that may affect the results, performance or achievements of Metallon.

In certain cases, forward-looking information can be identified by the use of words such as "aim", "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates",

"forecasts", "intends", "continues", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could",

"would", "should", "might" or "will be taken", "occur" or "be achieved" and include the negative variation of such phrases.

With respect to forward-looking information contained in this presentation, Metallon has made assumptions regarding, among other things, Metallon’s ability to generate sufficient cash flow

from operations and access to existing credit facilities and capital markets to meet its future obligations, the regulatory framework in its countries of operation with respect to, among other

things, permits, licenses, authorizations, royalties, taxes and environmental matters, and Metallon's ability to obtain qualified staff and equipment in a timely and cost-efficient manner to meet

Metallon's demand.

Although Metallon believes that its expectations reflected in forward-looking information are reasonable, such forward-looking information involves known and unknown risks, uncertainties

and other factors that may cause the actual results, performance or achievements of Metallon or Metallon's projects in its countries of operations, or any of them, to be materially different

from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, but are not limited to, risks related to failure to convert

estimated mineral resources to reserves, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, unexpected increases in

capital or operating costs, possible variations in mineral resources, grade or recovery rates, failure of equipment or processes to operate as anticipated, accidents, labour disputes and other

risks of the mining industry, labour risks, delays in obtaining governmental consents, permits, licences and registrations or financing or in the completion of development or construction

activities, risks of title to properties, partner risks, legal and litigation risks, political risks arising from operating in Africa, risks relating to changes in governmental regulations and in operating

internationally, risks relating to the infrastructures, uncertainties relating to the availability and costs and availability of financing needed in the future, indebtedness risks, changes in equity

markets, inflation, changes in exchange rates, exchange control and export restriction risks, fluctuations in commodity prices and uninsured risks.

Although Metallon has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there

may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be

accurate, as actual results and future events could differ materially from those anticipated in such information. Past performance of Metallon or its shares cannot be relied on as a guide to

future performance. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein, unless stated otherwise, is made

as of the date of this presentation and Metallon makes no responsibility to update them or to revise them to reflect new events or circumstances, except as required by law.

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CONTENTS

ABOUT US KEY DATA ASSETS PERFORMANCE STRATEGY OUTLOOK

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ABOUT USCORPORATE SNAPSHOT

A Private African gold mining and

exploration company

• Four underground gold mines in Zimbabwe

• Globally significant Mineral Resource of

8.3Moz of gold and exploration

targets of between 4-6Moz

• Gold production of 94,212oz in 2016

• Low cost producer – C1 costs of US$809/oz

and AISC of US$1,023/oz in 2016

• Net revenue of US$113m, operating profit of

US$38m and EBTIDA of US$18.6m in 2016

• Rising free cash flows from expansion plans

to become a 500,000oz pa producer

over next five years

• Run by an experienced Zimbabwean

management team with ability

to operate in Africa

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ABOUT USEXECUTIVE MANAGEMENT

Kenneth MekaniChief Executive Officer

Ken has been with Metallon for 30 years after joining the then Lonrho Mining as Graduate Trainee Metallurgist

in June 1987. He spent several years in the group’s various operations and was involved in major metallurgical

projects. In June 2013 he was appointed General Manager for How Mine and in June 2015 was appointed

Chief Executive Officer. Ken holds a BSc. Metallurgical Engineering (1987) from New Mexico Institute of Mining

and Technology (USA) and a Masters in Business Administration (MBA) from the University Of Zimbabwe

Graduate School Of Management (2006).

Tulani SikwilaFinance Director

Tulani joined in 2005 and became Group Finance Director in March 2012. He has a decade of operational,

accounting and finance expertise in the mining industry having started his career at Ernst & Young in 2001,

where he spent four years as an Audit Supervisor. A chartered accountant by trade, he holds a B.Com in

Accounting from Rhodes University, B. Compt (Honours) from UNISA, and a Diploma in Management

Accounting (CIMA).

Dr Isadore MatunhireTechnical Director

Isadore joined in 2013 as Head of Technical Services and in April 2014 became Technical Director. He is

responsible for leading the expansion programme, bankable feasibility studies and business integration. He

has over 25 years operational mining experience and five years in the mining consultancy field. He worked for

TWP Projects as Lead Mining Engineer/ Project Manager where he completed feasibility and due diligence

studies for Lonmin Platinum, African Consolidate Resources, Metallon, Anglo Platinum, Zimasco Chrome,

Wesizwe Platinum, and BCL Selebi-Phikwe. Isadore also worked as a Senior Mining Lecturer at the University

of Pretoria for 4 years. He graduated with a PhD in Mineral Economics from University of Nottingham, England

and MSc in Management from City University, London.

Mark TsomondoDirector, Exploration and

New Business

Mark joined in 2010 as Group Exploration Manager. Mark undertook an in-depth review of Mineral Resource

estimation of Metallon’s assets. In September 2014 he was appointed Director - Geology and New

Business. Mark’s experience spans over 30 years and covers mining and exploration for gold, platinum,

chrome and copper. Joining Union Carbide Zimbabwe in Kwe Kwe in 1981, he worked on the Great Dyke

deposits and gold in greenstone belts rising through the ranks from Junior to Chief Geologist. Mark formed

Midlands Geological Services in 1992, a consultancy that lasted for over a decade. He holds a BSc (Hons)

from University of Rhodesia and an MSc and D.I.C. in Mineral Exploration from Royal School of Mines,

London (1985).

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KEY DATA 2016

8.3MozGOLD MINERAL RESOURCE (June 2016) = 8.3Moz

94,212oz

GOLD PRODUCTION

US$809/oz

C1 COSTS

US$38m

OPERATING PROFIT

US$113m

REVENUE

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MINING OPERATIONSZIMBABWE

OUR OPERATING MINES

• How Mine

• Shamva Mine

• Mazowe Mine

• Redwing Mine

METALLON’S ASSETS – 8.3Moz gold

resource and mining infrastructure –

considered to be best high-grade, low-cost

gold mining operations in Zimbabwe

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Mining recommenced in Nov

2015

Ramp up to capacity by Q3 2017

QUALITY MINING ASSETS100% OWNED

Repairs made across the

mine

Contract miners appointed

and targeting installed

capacity

New processing plant

and tailings storage

facility constructed

Commissioning

expected Q1 2017

Flagship mining operation

Over 50% of production

Zimbabwe's

biggestgold producer

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HOW MINEFLAGSHIP MINING OPERATION

Location 35km South East of Bulawayo, Zimbabwe

Geology Situated on Bulawayo greenstone belt and

exploits several individual mineralised pods

situated within a structure which dips at 70° to

80°

Reserves & Resources

(30 June 2016)M,I&I: 14.8Mt @ 2.12g/t = 1,009koz Au

Processing Central facility, using combination of

conventional milling, gravity recovery and

carbon-in-leach process

Current hoisting capacity 35ktpm

Current milling capacity 33ktpm

Average mined grade 5g/t Au

Life of mine 9 years based on current capacity

Production and costs (2016) Production: 50,191oz Au

C1 costs: $520/oz Au

AISC: $660/oz Au

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SHAMVA MINE

Location 90km North East of Harare, Zimbabwe

Geology Situated in Shamva greenstone belt and exploits

numerous orebodies which occur within a 300-

to 400-m wide Riedel-type shear system. Silver

occurs with the gold and represents some 50%

of gold content



Processing Conventional crushing, milling, gravity recovery

and combination of carbon-in-solution and -pulp

processes


Current milling capacity 33ktpm

Average mined grade 3g/t Au

Life of mine 22 years based on current capacity

Production and costs (2016) Production: 21,061oz Au

C1 costs: $1,085/oz Au

AISC: $1,244/oz Au

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MAZOWE MINE

Location 50km North East of Harare, Zimbabwe

Geology Orebodies generally comprise shear zones in-

filled with gold-bearing sulphides and quartz.

Mineralised zones are up to 1m in width, have

average grades of 4 to 5g/t, and mostly dip

between 10° and 60° to the north. Approximately

70% of gold is ‘free gold’ recovered by gravity

concentration



Processing Conventional crushing, milling, gravity recovery

and carbon-in-leach facility


Current milling capacity 10.5ktpm

Average mined grade 4.2g/t Au

Life of mine 10 years on current capacity

Production and costs (2016) Production: 12,060oz

C1 costs: $1,116/oz

AISC: $1,272/oz

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• 65ktpm Processing Plant – one of the largest in Zimbabwe

• Construction 95% complete

• Commissioning expected Q1 2017

• Total CAPEX of US$13m

• New tailing storage facility completed with CAPEX of US$5m

• 66 additional plant workers employed

MAZOWE MINE CONTINUED

NEW PROCESSING PLANT

Impressive project economics

KPI Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 TOTAL

Tonnes pa 720k 720k 720k 720k 720k 720k 4,320k

Grade (g/t) 1.15 1.10 0.85 0.75 0.65 0.60 0.83

Recovery (%) 82.7 80.0 77.5 76.0 72.0 65.0 75.5

Oz pa 22,016 18,519 15,249 13,195 10,834 9,028 88,84

C1 ($/oz) 976 447 543 627 764 917 612

Profit (gold at $1,100) $15.9m $12.1m $8.5m $6.2m $3.6m $1.7 $48.1m

Profit (gold at $1,200) $18.1m $13.9m $10m $7.6m $4.7m $2.6m $56.9m

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MAZOWE MINE CONTINUED

NEW PROCESSING PLANT, JANUARY 2016

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REDWING MINE

Location 20km North East of Mutare, Zimbabwe

Geology Two main orebodies, the felsite and quartz, are

where mining has taken place. Gold

mineralisation is associated with sulphide

mineralisation comprising pyrite, galena,

chalcopyrite, minor arsenopyrite and sporadic

native gold. Silver occurs with the gold and

represents some 50% of gold content


(30 June 2016)

M,I&I: 34.1Mt @ 2.26g/t = 2,478koz Au

Processing Conventional crushing, milling, flotation and

carbon-in-leach facility

Average mined grade 5.5g/t Au

Life of mine 14 years on current capacity

Ramp up to capacity Production:

• began at 15,000tpm

• 10,106oz produced in 2016

• 23000tpm by Q3 2017

• 83000tpm by Q1 2018

• 193,000tpm by Q4 2018

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• Gold production of 94,212oz in 2016 – approximately 25% of Zimbabwe’s total production

• Metallon is Zimbabwe’s biggest gold producer

• All gold bullion produced is sold to Fidelity Printers, a subsidiary of the Reserve Bank

of Zimbabwe

• 100% of the spot gold price is paid on delivery, minus the 5% Government royalty

GOLD PRODUCTION

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EXPANSION PLAN2017-2021

Increase to

500,000oz/paby 2021

PRODUCTION

Achieve

US$650/oz

C1 COSTS

Larger plants

Increase volumes

BUILD

Near-surface

targets and

inferred resource

EXPLORATION DRILLING

On-mine

re-engineering to

lower mining costs

FOCUS

Open pit/near

surface resources

PRIORITISE

Brownfield sites in

Tanzania

DIVERSIFICATION

STRATEGY

TARGET

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PLANNED ACTIVITY PROGRAMME*2017-2021

MINE ACTIVITY DATE RESOURCE

HOW MINE • Shaft upgrade and deepening

• 28Level Sub-vertical Hoist Installation

• Water and power upgrade

• Open pit feasibility

• New processing plant and TSF

• Drilling programme

– 2017 & 2018

– 2017 & 2018

– 2017 & 2018

– 2017

– 2018

– 2017 – 2020

1.2Moz

SHAMVA MINE • Shaft and underground upgrading

• Power upgrade

• Plant upgrade to 50Ktpm

• Shamva Hill exploration

• Shamva Hill 100Ktpm plant & new TSF

• 2nd New 75Ktpm plant

– Ongoing

– 2017

– 2018

– 2017 & 2018

– 2018

– 2021

2.6Moz

MAZOWE MINE • New processing plant

• Drilling programme

• UG2 development

• Shaft upgrade

• UG2 floatation plant

• New TSF and power upgrade

– Commenced 2015

– 2017 - 2020

– 2017 - 2019

– 2017 - 2019

– 2020

– 2020

2.1Moz

REDWING MINE • Surface exploration

• Plant upgrade and new TSF

• Power upgrade

• Shaft sinking & development

• New processing plant and TSF

– Ongoing

– 2017 & 2018

– 2017

– 2018 & 2019

– 2020

2.4Moz

*dependent on external funding.

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STRATEGY

WORLD CLASS MINERAL RESOURCE8.3MOZ

Proved and Probable Reserves

as at 30th June 2016

Measured and Indicated Resources


Inferred, Measured and Indicated Resource


Proved Probable Total Measured Indicated Total Measured Indicated Total

Ton Grade Ounces Ton Grade Ounces Ton Grade Ounces Ton Grade Ounces Ton Grade Ounces Ton Grade Ounces Ton Grade Ounces Ton Grade Ounces Ton Grade Ounces

kt g/t oz kt g/t oz kt g/t oz kt g/t oz kt g/t oz kt g/t oz kt g/t oz kt g/t oz kt g/t oz

How – U/g 430 5.0 69 1,794 3.5 201 2,223 3.8 270 1,609 5.1 265 2,250 3.7 265 3,858 4.28 530 3,969 3.5 444 3,858 4.3 530 7,828 3.9 973

Surface 817 1.1 30 817 1.1 30 817 1.1 30 817 1.10 30 6,917 0.7 156 817 1.1 30 7,734 0.7 186

Total 430 5.0 69 2,611 2.7 231 3,040 3.1 300 1,609 5.1 265 3,067 3.0 295 4,675 3.73 560 10,886 1.7 600 4,675 3.7 560 15,562 2.3 1,159

Shamva – U/g 929 2.87 86 3,608 2.95 342 4,537 2.93 428 1,992 2.54 163 8,576 2.85 785 10,568 2.79 948 12,021 2.35 907 10,568 2.79 948 22,589 2.56 1,855

Surface - - - - - - - - - 167 1.19 6 167 1.19 6 7,193 2.37 549 167 1.19 6 7,360 2.34 555

Surface 2 - - - - - - - - - 2,325 0.80 60 2,325 0.80 60 9,227 0.52 153 2,325 0.80 60 11,552 0.58 213

Total 929 2.87 86 3,608 2.95 342 4,537 2.93 428 1,992 2.54 163 11,068 2.39 851 13,060 2.42 1,014 28,441 1.76 1,609 13,060 2.42 1,014 41,501 1.97 2,623

Redwing – U/g 40 3.43 4 167 3.48 19 207 3.47 23 1,402 2.73 123 7,946 3.99 1,018 9,347 3.80 1,141 14,481 2.62 1,222 9,347 3.80 1,141 23,828 3.08 2,363

Surface Sands - - - - - - - - - 9,924 0.33 105 9,924 0.33 105 9,924 0.33 105 9,924 0.33 105

Total 40 3.43 4 167 3.48 19 207 3.47 23 1,402 2.73 123 17,870 1.96 1,123 19,271 2.01 1,246 14,481 2.62 1,222 19,271 2.01 1,246 33,752 2.27 2,468

Mazowe – U/g 337 6.59 71 279 6.81 61 616 6.69 133 504 9.07 147 1,285 6.50 269 1,789 7.22 416 5,701 7.27 1,333 1,789 7.2 416 7,490 7.3 1,749

Surface - - - - - - - - - 5,116 0.78 128 5,116 0.78 128 1,300 5.00 209 5,116 0.8 128 6,416 1.6 337

Total 337 6.59 71 279 6.81 61 616 6.69 133 5,620 1.52 275 1,285 6.50 269 6,905 2.45 544 7,001 6.85 1,542 6,905 2.4 544 13,906 4.7 2,086

TOTAL 1,736 4.1 231 6,664 3.0 653 8,401 3.3 883 10,623 2.42 825 33,289 2.37 2,538 43,912 2.38 3,364 60,809 2.54 4,972 43,912 2.38 3,364 104,720 2.48 8,335

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• Globally significant Mineral Resource of 8.3Moz of gold (June 2016)

• Exploration results category contains about 4-6Moz from satellite ore bodies to operating

mines (SRK 2013)

• Near mine targets at Mazowe Mine, How Mine, Shamva Hill & Redwing Shallow mine

• All four mines have open-ended mineralisation at depth and are under-explored across

strike extensions

• Conceptual target sizes of:

• Mazowe Mine: 2.5 - 3Moz

• Redwing Mine: 5 - 8Moz

• Rich quartz veins offer huge

exploration upside potential

WORLD CLASS RESOURCEEXPLORATION UPSIDE

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AFRICAN EXPANSION EXPLORATION & DEVELOPMENT

Focus on additional gold development

sites and exploration projects

• Tanzania

• currently securing advanced

development projects in

brownfield sites in prolific

greenstone belts with target

to commence gold production

in 2019

• focusing on open-pit and shallow

underground mines

• looking at numerous strategic

options at projects located near

Lake Victoria gold fields

• Democratic Republic of Congo

• four exploration properties being

secured in Maniema province

near Bukavu

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BECOME A MID-TIER PRODUCERIN THE NEXT FIVE YEARS

Plan to be

500,000oz/paproducer over next

five years

PRODUCTION

Target exploration

opportunities in

Zimbabwe,

Tanzania and DRC

EXPLORATION

Focus on further

reduction of costs

COSTS

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• Zimbabwean gold mining industry operated for over 100 years

and has well-established base of mining skills, expertise and

local suppliers

• Zimbabwean Government expects mining sector to be key

driver of growth in near term and to attract most foreign direct

investment into country

• Metallon is largest gold miner in Zimbabwe and a key

contributor to the sector

• Metallon employs over 3,500 people and additional contractors

• The Government has implemented favourable policies for

mining companies to incentivise investment in the sector

including:

• reduction in royalty rate from 7% to 5% of revenue in

October 2014

• exploration, development and capital costs can be offset

against profit in the year incurred or capitalised over LoM

• Exemptions on customs duty and import taxes on capital items

during exploration and development phases

• Government is considering further policy review to assist

mining companies during times of declining commodity prices

ZIMBABWESUPPORTIVE MINING JURISDICTION

Companies operating in Zimbabwe

General

Population 15.6m (World Bank, 2015)

Capital Harare

Major religions Christianity & Indigenous

Economy

GDP $14.4bn (World Bank, 2015)

Annual GDP growth 1.1% (World Bank, 2015)

GDP / capita $924 (World Bank, 2015)

Inflation 1.1% (World Bank, 2015)

Main currency US$ / Zim Bond Note

Mining as % GDP 20% (CoM Zim)

Country snapshot

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• Supports its employees & local communities

• Metallon is good corporate citizen and committed to maintaining its social licence to

operate

• long-established track record of social delivery to employees and local communities in

education, health, housing, other services

• 2017 CSR programme underway with targeted projects which will bring sustained

socio-economic development in communities where we operate

• Indigenisation

• indigenisation proposal submitted and approved by Zimbabwe Government

• new approved indigenisation structure involves 75% spend on local content

CSRWORKING WITH LOCAL COMMUNITIES

Construction of Mazowe School Block and Shamva Mortuary, Nov 2016

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METALLON CORPORATIONA GOLDEN OPPORTUNITY

• World-class Zimbabwean assets

with exciting prospects

• Quality mining operations

• skilled labour force

• good infrastructure

• 8.3Moz high grade resource

• low cost mining

• Massive expansion upside

• at current operations

• near surface deposits

• Good working relationship with

employees, local communities

and Government of Zimbabwe

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APPENDIX

ABOUT US KEY DATA ASSETS PERFORMANCE STRATEGY OUTLOOK

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ABOUT USBOARD OF DIRECTORS

Mzi KhumaloNon-Executive Chairman

Mzilikazi Khumalo founded Metallon in 2001 and is the main shareholder of the Company. He purchased the

assets in Zimbabwe from Lonmin in 2002. He has held the position of chairman at various companies including

JCI Limited, Capital Alliance Holdings Limited and Point Waterfront Corporation, as well as having been Non-

Executive Director at Mintek, Telkom, McCarthy Retail Limited, Ridge Mining and Anglo American Corporation.

He holds a Bachelor of Commerce degree from UNISA.

Dr Tomas SalomãoIndependent Non-

Executive Director

Dr Tomaz Salomão joined the Board of Metallon in December 2014. He is the former Executive Secretary of

the Southern African Development Community (SADC) and served from 2005 - 2013. Dr Salomão has made

significant contributions to the development of Mozambique and the Region in senior positions for 22 years.

During this period, he also served as Governor for Mozambique at the African Development Bank, IMF and

World Bank. Dr Salomão is qualified as Certified Public Accountant, has Bachelor of Arts and Master of Arts

Degrees in Economics. He is currently the Chairman of the Board of Directors of the Standard Bank,

Mozambique (non executive), and a visiting Research Fellow at the Wits School of Governance at the

University of Witwatersrand in Johannesburg.

Andile Reve Non-Executive Director

Andile Reve joined Metallon in 2002 as Chief Executive and became a Non-Executive Director in August 2010.

He was an analyst at Kwazulu Finance and Investment Corporation from 1987 to 1991 and a Commercial

Manager at Eskom from 1991 to 1996. He joined the Rennies Group as an Executive Director in 1996 and in

1998 he moved to the Industrial Development Corporation as Executive Vice President – industrial finance. He

holds an MBA from Rutgers University, State of New Jersey, USA, B .Com (Hons), UNISA and B.Com,

Kwazulu-Natal.

Kwaku Akosah-

Bempah Non-Executive Director

Kwaku Akosah-Bempah joined the Board of Metallon in August 2010. He was previously the Chief Financial

Officer of AngloGold Ashanti Limited’s West Africa Region, having previously served as General Manager:

corporate finance at Ashanti Goldfields Company Limited. He has also held several senior roles as finance

director at Freda-Rebecca mine in Zimbabwe. He holds a Bachelor of Commerce (Hons) Degree and a

Diploma in Education from the University of Cape Coast, Ghana, and an MBA from the Columbia Business

School, USA. He is also a chartered accountant and member of the Institute of Taxation, Ghana

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CO

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US

Address:

78 Pall Mall

London

SW1y 5ES

CONTACT US

Tel:

+44(0) 203 178 7431

www.metcorp.co.uk

Zimbabwe's

biggestgold producer

an african gold mining and exploration company

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