Audley Funding £200m MTN Programme

NQ MINERALS 12% BONDSDUE FEB 2022

Fact Sheet - Series 2017-F2ISIN: GB00BDCJX280

Contact us: +44 (0)203 368 8907dealing@audleyfunding.com

NQ Minerals PLC (NXT: NQMI) is a London listed, Australian based exploration and mining company, focusing on projects where past exploration work has established the presence of mineral occurrences. The Company’s management team has decades of experience in the exploration for and production of gold, silver and a variety of base metals.

NQ Minerals’ flagship project is the Hellyer Gold Mine in Tasmania, which is currently in the process of acquisition. Robust revenues and cash flows are projected based on the use of existing plan facilities to reprocess tailings material located on the property.

NQ Minerals evaluation of Hellyer indicates the opportunity to fully process and commericalise the in-situ tailings of 11.24mt comprising a 9.5mt JORC compliant resource of Gold at 2.61 g/t (796,500 oz), Silver at 104 g/t (32 Million oz), Lead at 3.03% (287,800 tonnes) and Zinc at 2.5% (237,900 tonnes).

Recent test work indicates the overall metal recoveries from in situ ore to metal in concentrate to be: Gold - 65%; Silver - 72%; Zinc - 32%; Lead - 40%.

BUSINESS CASE

NQ MINERALS

The bond is asset-backed and has senior security over mining assets worth at least Au$200m. An independent technical valuation of the tailings completed in May 2016 gave a value of Au$86m. In order to progress this project, the company is looking to secure funding to cover the cost of acquisition, plant refurbishment and operational start-up. The total required funding is Au$45m comprised of:

• Acquisition Au$20m• Plant Refurbishment and Start-Up Au$20m• Corporate & Working Capital Au$5m

ABOUT THE SECURITY

• Existing and sufficient dredging and base metal processing facilities on site.• Suitable on-site/local infrastructure for planned operation – water, power, roads, railway spur line, and nearby port.• Established, nearby market for precious metal concentrate eliminates investment typically required to recover precious metals on site.

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THE BOARD AND MANAGEMENT TEAM

The Board of NQ Minerals reflects deep and broad experience of the mining sector from project development through to operation. As part of this acquisition process the Company has further strengthened this team by adding individuals with specific experience and understanding of the project, the resource and its processing characteristics. The Company has completed resource evaluations; metallurgical and process test work; an environmental and permitting review; an updated mining plan and a marketing/sales validation.

ARRANGER

Bedford Row Capital Advisers is a corporate finance and advisory business, with a specific focus on financing businesses and projects via the origination and placement of listed, freely transferrable debt securities. Bedford Row Capital Advisers Limited is an Appointed Representative of Laven Advisors LLP which is Authorised and Regulated by the Financial Conduct Authority.

BEDFORD ROW CAPITAL ADVISERS

RISK• Proven and tested JORC compliant resource, mining and metallurgy.• Similar mining and processing approach to previous operations.• Tailings Dam with known and relatively homogeneous grade and particle size.• Australia is a mining friendly jurisdiction with readily available skills.• Applicable existing mining licenses already in place.

KEY ATTRIBUTES

ROBUST MARGIN

• Existing and sufficient dredging and base metal processing facilities on site.• Suitable on-site/local infrastructure for planned operation – water, power, roads, railway spur line, and nearby port.• Established, nearby market for precious metal concentrate eliminates investment typically required to recover precious metals on site.

LOW CAPITAL INTENSITY

• High grade tailings as the result of limited precious metal extraction and low base metal recoveries during prior processing operations.• High all-in margin due to metal content combined with low mining and processing costs.• Potential for optimisation and associated improvements in metallurgical recoveries/ returns.

• Deployment of 3-stage sequential flotation to maximise metal-in-concentrate saleability.• Optimisation based on product values rather than engineering potential.• Tailored marketing approach for each of the three concentrates to be produced.• Off take agreements under discussion.

MARKET SAVVY

• Low cost implementation and near term production leading to early cash and break-even.• Low risk project based on an economically viable asset with a clear plan for commercialisation.

BONDHOLDER VALUE

Disclaimer: This document is the confidential property of Audley Funding PLC and is not for general release. The information presented here does not constitute investment advice or a recommendation, and is not an invitation to invest. Nothing in this document is intended to nor will create any binding obligation on anyone. Applications should only be made on the basis of the Pricing Supplement and Listing Particulars which are available from authorised distributors. Prospective investors should be capable of evaluating the risks and merits associated with this investment and have sufficient resources to bear any losses. This investment is intended to be held by the investor for the full investment term of 5 years. Whilst a secondary market exists, there is no guarantee of a purchaser. Liquidity may therefore be limited and should not be relied on when choosing this investment.