colt exploration projects

TUNGSTEN

MINERALIZATION

IN PORTUGAL

THE CASE OF THE

SÃO PEDRO DAS ÁGUIAS

DEPOSIT (TABUAÇO)

TUNGSTEN IN PORTUGAL – S. PEDRO DAS ÁGUIAS (TABUAÇO)

1

This document has been prepared by Colt Resources Inc. (the “Company”) solely for presentation on December 4th, 2013, at the “Mineral Resource Assessment

Workshop: Assessment of the tungsten potential in Greenland”, Copenhagen. This document does not constitute an offering document. This document is the sole

responsibility of the Company. Information contained herein does not purport to be complete and is subject to certain qualifications and assumptions and should not be

relied upon for the purpose of making an investment in the Company’s securities or entering into any transaction in relation therewith. The information and opinions

contained in this document are provided as at the date hereof and are subject to change without notice and, in furnishing this document, the Company does not

undertake or agree to any obligation to provide recipients with access to any additional information or to update or correct the document. No securities commission or

similar regulatory authority has passed on the merits of any securities referred to in this document, nor has it reviewed this document.

Forward Looking Information

Certain of the information contained in this presentation may contain “forward-looking information”. Forward-looking information and statements may include, among

others, statements regarding the future plans, costs, objectives or performance of the Company, or the assumptions underlying any of the foregoing. In this presentation,

words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used

to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be

accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on

information available at the time and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties,

assumptions and other unpredictable factors, many of which are beyond the Company’s control. These risks, uncertainties and assumptions include, but are not limited

to, those described under “Risk Factors” in the Company’s revised annual information form dated February 8, 2013 available on SEDAR at www.sedar.com and could

cause actual events or results to differ materially from those projected in any forward-looking statements. The Company does not intend, nor does the Company

undertake any obligation, to update or revise any forward-looking information or statements contained in this presentation to reflect subsequent information, events or

circumstances or otherwise, except if required by applicable laws.

National Instrument 43-101

Technical and scientific information contained in this document relating to the Company’s projects in Portugal is derived from the following National Instrument 43-101

Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant technical reports: “A Preliminary Economic Assessment on the Tabuaço Tungsten Project” dated

October 1, 2013, “A Preliminary Economic Assessment on the Boa Fe Gold Project, Portugal”, dated May 7, 2013, the “NI 43-101 Technical Report, Boa Fé/Montemor

Gold Project”, dated March 4th, 2013, the “Tabuaco Tungsten Project, Portugal. NI 43-101 Technical Report”, dated November 15th, 2012, the “NI 43-101 Technical

Report Boa Fé/Montemor Gold Project Alentejo Region of Southern Portugal” dated August 16th, 2012, the “NI 43-101 Technical Report Boa Fé/Montemor Gold Project

Alentejo Region of Southern Portugal” dated December 21, 2011, the “NI 43-101 Technical Report on Exploration, Montemor Gold Project, Alentejo Region of Southern

Portugal” dated March 4, 2011, the “Technical Report (NI 43-101) on the Armamar Meda Concession, Northern Portugal” dated September 6, 2010 and the “Technical

Report (NI 43-101) on the Penedono Gold Concession, Northern Portugal” dated August 27, 2010 (collectively, the “Technical Reports”). The Company has filed the

Technical Reports under its profile on SEDAR at www.sedar.com.

Technical Advisor

SRK Consulting (U.S.) Inc. has been awarded a broad mandate to provide overall technical assistance to the Company in Portugal and will be producing several NI 43-

101 compliant reports as projects progress (see: January 18, 2011 press release). Gareth O’Donovan CEng MSc BA (Hons) FIMMM FGS - SRK Exploration Services

Ltd. is the independent qualified person, as defined in NI 43-101, for the Company’s projects in Portugal.

Cautionary Statement Disclaimer


2

Atomic Number – 74

Atomic Weight – 183.84

The highest melting point of all metals – 3422ºC

Very high density – 19.25 (comparable with Au=19.30, U=19.05)

High hardness – 7.5 in the Mohs scale

The highest tensile strenght of all metals

The lowest thermal expansion coefficient of all metals

High resistence to chemical corrosion (oxygen, acids, alkalis)

Very difficult recycling (~10%)

Without substitutes in its applications

TUNGSTEN – THE PROPERTIES THAT MAKES IT A SPECIALTY METAL

3


APPLICATIONS

WORLD PRODUCTION

THE TUNGSTEN MARKET

WORLD RESERVES

China hosts nearly two-thirds of the world’s reserves

and accounts for over three-quarters of global

production, however, in the recent years it went from

exporter to a net importer to satisfy domestic

demand.

Non-Chinese sources of tungsten are scarce and

generally have contractual or ownership ties to

consumers

Additional western concentrate capacity is required

to guarantee access to raw materials

TUNGSTEN INDUSTRY OVERVIEW

Machinery

Lighting

Mining and

Construction

Electrical

Tools

Alloys

4

Tungsten prices are close to all-time highs

Tungsten APT European, $ per mtu

Source: Bloomberg

• APT (“Ammonium paratungstate”) the intermediate product obtained chemically from the tungsten concentrates, is the

normal form of trading of tungsten mine products, and is used for the production of the final products (tungsten metal, ferro-

tungsten, tungsten carbide);

• The above price is of APT per MTU (“metric tonne unit”), which equates with 10kg of contained WO3 – equivalent to 7.93 kg

of contained tungsten (W);

• In June 2010 the European Union declared tungsten as a “critical raw material for the EU”, and this is the reason for the

main price raise shown in the graphic, which happened in that year, establishing a new price level.


5

PORTUGAL – A TUNGSTEN-RICH COUNTRY THE CENTRAL-IBERIAN ZONE AND

THE GALICIA–TRÁS-OS-MONTES ZONE HAVE

ABUNDANT W±Sn MINERALIZATION,

ASSOCIATED WITH THE VARISCAN GRANITOIDS

The two main tungsten

minerals occur in Portugal:

Scheelite – Ca WO4 ; and

Wolframite – (Fe,Mn) WO4

UNTIL THE MID 1980’S PORTUGAL HAD

SEVERAL TUNGSTEN MINES IN OPERATION.

AT PRESENT ONLY PANASQUEIRA REMAINS

IN PRODUCTION.


6

TUNGSTEN DEPOSITS AND OCCURRENCES IN

COLT’S EXPLORATION AREAS IN NORTHERN

PORTUGAL (VISEU AND GUARDA DISTRICTS)

Prospecting Work done by COLT in its

Exploration Licences of Penedono,

Armamar-Meda, Moimenta-Almendra

and Cedovim, between 2007 and 2013

Geologic Setting:

• Metasediments of the Douro Schist-Graywacke Complex at NE

• Variscan Granitoids of the Armamar-Penedono-Escalhão antiform at SW

• SE extension of the NW-SE trending Vigo-Braga-Amarante semi-ductile shear zone

• NNE-SSW trending sinistral strike-slip faults of the Vilariça fault system

• Low grade regional metamorphism

• Important contact metamorphism and metasomatism

W – skarn-type

Au(±W) – vein/greisen

W-Sn – vein-type

Mineralization

(scheelite)

(wolframite ± scheelite + cassiterite)

(arsenopyrite + gold ± wolframite)


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LOCALIZATION

Tabuaço

São Pedro

das Águias

Lisboa

Porto

It’s the Municipality seat

Area:135,72 km²

Nº of inhabitants: 6350

300km NNE from Lisbon

100km ESSE from Porto

Tabuaço

São Pedro das Águias (11,9 Km from Tabuaço)

http://www.google.pt/url?sa=i&source=images&cd=&cad=rja&docid=z6y9B9-GNmGaTM&tbnid=8zMHecP9TEx6-M:&ved=0CAgQjRwwAA&url=http://terrasdeportugal.wikidot.com/tabuaco&ei=Ec01Uab2PIyJhQeM7IHoCw&psig=AFQjCNHPvMRRd3bWFulk-dZcRIUdhZGxHQ&ust=1362566802027478

8


CURRENT TABUAÇO EXPERIMENTAL MINING CONCESSION

Colt concession with an area of

45.128km2, located in the municipalities

of Tabuaço and S. João da Pesqueira

(Viseu district); covering part of Colt’s

previous Armamar-Meda exploration

licence (436,81km2)

TABUAÇO

9

HISTORY OF THE TABUAÇO TUNGSTEN PROJECT

1977-1979 ‒ Discovery of Scheelite-bearing Skarns in the Tabuaço region, by geologists of

the Portuguese Government

1980-1982 ‒ SPE–BRGM joint venture: Prospecting of the Skarns in the Tabuaço region;

diamond drilling program at S. Pedro das Águias (6 holes, 544 metres)

1983 ‒ Interruption of the program of SPE–BRGM j.v., as a result of difficulties in

proceeding negotiations with the landowner of the São Pedro das Águias farm

1985 ‒ World Tungsten crisis, originated by large exports from China, and which originated

the closure of several tungsten mines in Portugal and worldwide

1985-2007 ‒ The maintenance of unfavourable conditions in the world tungsten market prevent

Tabuaço from attracting the attention of mining or exploration companies

Dec. 2007 ‒ COLT signs with the Portuguese Government the Exploration Contract for the

“Armamar–Mêda” concession (436.81km2) which includes the Tabuaço tungsten area

Jul. 2008 ‒ COLT starts its surface prospecting and sampling work at the Tabuaço tungsten

area; confirming favourable widths and grades

Dec. 2009 ‒ COLT starts its first diamond drilling program at the São Pedro das Águias

deposit (Tabuaço)

Jul. 2010 ‒ Environmental and Heritage Diagnosis (“Diagnóstico Ambiental e Patrimonial”)

completed, confirming that the Tabuaço project is “permittable”

Nov. 2010 ‒ COLT starts its 2nd drilling program at Tabuaço, which would be continued

without interruption until January 2013

May 2010 ‒ COLT concludes its 1sty drilling program at the São Pedro das Águias deposit

(9 holes, 766 metres); the results confirm the economic potential


10

Oct. 2012 ‒ A positive reply is received from the Portuguese environmental authority (APA)

regarding the evaluation of the Environmental Scoping Study for Tabuaço project

Jan. 2013 ‒ Concluded 2nd drilling program; COLT drilled to date a total of 82 exploration and

evaluation holes (9760m), 8 metallurgical holes (736m), 2 geotechnical holes (154m)

Mar. 2013 ‒ Started data collection and studies for the execution of the Environmental Impact

Assessment (EIA) for the Tabuaço project

Aug. 2012 ‒ COLT submits to the Portuguese environmental authority (APA) the Environmetal

Scoping Study for the Tabuaço project (PDA)

Sep. 2013 ‒ COLT releases the Preliminary Economic Analysis (PEA) report for the Tabuaço

mining project, produced by consulting firm SRK (UK)

Nov. 2011 ‒ COLT releases its first resource estimate for Tabuaço (S. Pedro das Águias

deposit), in accordance with Canadian regulation NI 43-101

Mar. 2012 ‒ Metallurgical testwork initiated (in Canada, Germany and China) on samples of

ore from the S. Pedro das Águias deposit

Aug. 2011 ‒ COLT acquires the São Pedro das Águias vineyard farm, where the São Pedro

das Águias deposit is located

Feb. 2013 ‒ COLT signs with the Portuguese Government the Contract for the Tabuaço

Experimental Mining Licence; total investment to date totalling € 4 million

Oct. 2012 ‒ COLT updates the resource estimate for Tabuaço (including both S. Pedro das

Águias and Aveleira deposits), in accordance with Canadian regulation NI 43-101

Feb. 2012 ‒ Discovery of the Aveleira deposit by a drill hole positioned to test a soil

geochemical anomaly


HISTORY OF THE TABUAÇO TUNGSTEN PROJECT

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EXPLORATION METHODS LEADING TO THE DISCOVERY OF TUNGSTEN MINERALIZATION IN THE TABUAÇO REGION

• The initial discovery of skarns and calcsilicate rocks outcropping in the Tabuaço region, in the 1970’s,

resulted during the execution of geologic mapping work performed in the Douro Valley by Portuguese

Government geologists. The sampling os such units indicated scheelite contents with economic interest.

Subsequently, the following methods were applied in the region, with some rate of success, for the prospecting

for additional occurrences of scheelite-bearing skarns:

• Geologic prospecting (day-time) and Mineralight prospecting (night-time); accompanied by collection or

rock samples for examination under UV light as well as for chemical analysis;

• Stream sediment surveys, comprising the collection of both geochemical samples (analysis for W, Sn,

and other elements), as well as pan-concentrate samples (counting of points of scheelite, cassiterite, etc.);

• Soil geochemical surveys, with multi-element analysis of soil samples (W and skarn indicator elements,

such as Ca, Ti, Sr, Mg, Mn);

• Only occasionally some trenches were open, for the exposure of the bedrock, its examination and sampling

– this methodology was most limited in the region, due to the steep topography, with man-made walls and

terraces, and the need to avoid damage to the vineyards;

• Finally the execution of diamond drilling, first for the confirmation of mineralization at depth, then for its

delineation and evaluation.

The methods applied allowed the discovery of outcropping, or sub-outcropping scheelite-bearing skarns,

located at shallow depth under man-made vineyards and other terraces (particularly in the case of the soil

geochemistry and the Mineralight prospecting).

No effective method was discovered to date, for the detection at depth of this kind of mineralization at

Tabuaço, or in the greater Douro region. While the application of the geophysical methods normally used in

exploration is limited by the fact that the type of mineralization gives a weak or null response; as well as for the

difficulty of execution of such surveys in areas with vineyards in terraces.


12

DOURO

SCHIST-GRAYWACKE

COMPLEX

ARMAMAR-TABUAÇO

GRANITE INTRUSION

GEOLOGIC SETTING OF THE TUNGSTEN MINERALIZATION OF THE TABUAÇO REGION

STRATIGRAPHY: BATEIRAS FORMATION, THE LOWEST OF THE DOURO SCHIST-GRAYWACKE COMPLEX (LOWER CAMBRIAN)

TÁVORA ANTICLINE, WITH THE BASAL UNIT OF THE BATEIRAS FM. (BLACK GRAPHITIC SCHISTS) IN ITS CORE

HORIZONS OF CARBONATE, SKARN AND CALCSILICATE ROCKS LOCATED IN BOTH LIMBS OF THE ANTLICLINE (BOTH BANKS OF THE TÁVORA RIVER), STRATIGRAPHICALLY SHORTLY ABOVE THE BASAL BLACK GRAPHITIC SCHISTS

GREAT PROXIMITY TO THE ARMAMAR-TABUAÇO GRANITE

LOCATIONS WITH SCHEELITE-MINERALIZED SKARNS: 1. Quinta das Herédias 2. Qta. de S. Pedro das Águias 3. Quinta da Aveleira 4. Quintã 5. Azenha Velha 6. Quinta do Paço

Sketch geologic map

adapted from Alves (1982)


13

Scheelite-mineralized outcrop

PANORAMIC VIEW OF THE AREA OF THE TABUAÇO TUNGSTEN PROJECT, LOOKING WEST

Base: Photo composition of A.F.Faria, 2008 Area of delineated tungsten resources


14

LOCAL GEOLOGY OF THE TABUAÇO TUNGSTEN DEPOSITS

Among the several occurrences of scheelite-bearing skarns occuring in the Tabuaço region, those

locating in the SW limb of the Távora anticline (west bank of the Távora river) have greater economic

potential, with particular emphasis on the São Pedro das Águias and Aveleira deposits.

The local geology of this zone is characterized by:

• Two skarn horizons richly mineralized in scheelite (Main Skarn Principal and Lower Skarn), separated

between them, as well as from the basal black schists, by micaceous, pelitic to psamitic schists;

• Occurrence locally of one carbonate horizon, above the Main Skarn, and also separated from it by

micaceous schists; sometimes contains some scheelite mineralization;

• Both the skarn and carbonate horizons have generally metric widths, sometimes exceeding 20m, and in

general gentle dips (~20º) to SW;

• Very close proximity in relation to the Armamar-Tabuaço granitic intrusion, in its marginal leucocratic facies

(albitic-muscovitic);

• Metasedimentary sequence (incl. skarns and carbonates) extending under the granitic intrusion;

• Frequent occurrence of aplitic apophyses (sills), of frequently metric widths, intrusive in the skarns and

enclosing schists;

• Late faults, oriented NE-SW to ENE-WSW, NNW-SSE, and more rarely WNW-ESE, sometimes originating

significant vertical and/or lateral slips.


15


LOCAL GEOLOGY OF THE TUNGSTEN DEPOSITS OF THE TABUAÇO REGION

(WEST BANK OF THE TÁVORA RIVER)

16

SKARNS OF THE TABUAÇO DEPOSITS

“M-type” Skarn , most frequent in the

MainSkarn Horizon (upper);

coarser and more massive, mostly

composed of albitic plagioclase and

vesuvianite; generally richer in scheelite

“L-type” Skarn, most frequent in the

Lower Skarn Horizon;

finer grained and more layered,

principally made of K-feldspar, epidote-

group minerals, vesuvianite and

diopside; generally poorer in scheelite

The mineralogy of the Tabuaço skarns is made of

combinations of the following minerals:

sodium-plagioclase, K-feldspar, vesuvianite, epidote,

zoisite/clinozoisite, diopside, garnet (grossular),

hornblende, tremolite-actinolite, quartz, sericite,

calcite, fluorite, apatite, scheelite.


17

For the exploration and evaluation of the Tabuaço scheelite deposits, the following field,

laboratory or desktop works were completed:

Surface geologic reconnaissance, detail geologic mapping;

Stream sediment surveys, including geochemical and pan-concentrate sampling;

Mineralight prospecting and soil geochemical traversing;

Structural geology studies;

Sampling of outcropping mineralization (including either grab, chip and channel samples);

Diamond drilling program: 82 exploration & evaluation holes (9760m), 8 holes for metallurgical

samples (736m), and 2 geotechnical holes (154m);

Study of alternatives for the location of the industrial infrastructure (chosen Passafrio);

Mineralogic studies and metallurgical testwork;

3-D modelling and resource estimation (in accordance with canadian regulation NI 43-101);

Conceptual studies of mining engineering, and of planning of mining infrastructures;

Social,environmental and heritage diagnosis of the project enclosing area;

Environmental Scoping Study (PDA);

Preliminary Economic Analysis (PEA).

EXPLORATION AND EVALUATION WORKS PERFORMED AT TABUAÇO


18

Pan-concentrate anomalies of scheelite and cassiterite in the

tributary streams of both banks of the Távora river

(data from the SPE–BRGM joint venture)

GEOCHEMICAL AND PAN-CONCENTRATE STREAM SEDIMENT SURVEY CARRIED OUT IN THE TABUAÇO REGION


19


MINERALIGHT PROSPECTING AND SOIL GEOCHEMICAL TRAVERSING

IN THE WEST BANK OF THE TÁVORA RIVER

Methods utilized for the detection of sub-outcropping

mineralization, hidden under the vineyard terraces

20

SAMPLING OF SCHEELITE SKARN OUTCROPS IN THE WEST BANK OF THE TÁVORA RIVER

Main Skarn, S. Pedro das Águias

Lower Skarn, S. Pedro das Águias

Lower Skarn, Herédias

Main Skarn,

Herédias


21

PLAN MAP OF THE SÃO PEDRO DAS ÁGUIAS DEPOSIT (TABUAÇO)


22

DIAMOND DRILLING AT THE S. PEDRO DAS ÁGUIAS DEPOSIT (TABUAÇO)


23

INTERPRETATIVE CROSS-SECTION OF THE SÃO PEDRO DAS ÁGUIAS DEPOSIT (TABUAÇO)

ARMAMAR-TABUAÇO

GRANITIC INTRUSION

DOURO-GROUP

METASEDIMENTS


24

MINERALIZED DRILL CORE FROM THE MAIN SKARN OF THE

SÃO PEDRO DAS ÁGUIAS DEPOSIT (TABUAÇO)

UNDER DAY LIGHT →

UNDER SHORT-WAVE UV LIGHT →


25


AVELEIRA DEPOSIT DISCOVERED IN FEB. 2012

BY A DRILL HOLE POSITIONED BASED ON A SOIL GEOCHEMICAL ANOMALY

(W, Ca, Ti, Sr, Mg, Mn)

26

PLAN MAP OF THE AVELEIRA DEPOSIT (TABUAÇO)


27

DIAMOND DRILLING AT THE AVELEIRA DEPOSIT (TABUAÇO)


28

INTERPRETATIVE LONG SECTION OF THE AVELEIRA DEPOSIT (TABUAÇO)


DOURO-GROUP

METASEDIMENTS

29


MINERALIZED DRILL CORE FROM THE MAIN SKARN OF THE

AVELEIRA DEPOSIT (TABUAÇO)

UNDER DAY LIGHT →

UNDER SHORT-WAVE UV LIGHT →

30

Hole # Inclination Azimuth

From

(m)

To

(m)

Interval

(m)

True Width

(m) WO3%

(weigh.ave.)

São Pedro das Águias deposit

DHT-01B -90º 000 19.15 37.95 18.80 17.67 0.71

DHT-02 -90º 000 52.60 66.20 13.60 12.78 0.99

DHT-08 -90º 000 42.40 54.40 12.00 11.28 0.60

DHT-09 -45º 210 93.60 115.20 21.60 19.40 0.54

DHT-12 -90º 000 58.35 68.00 9.65 9.07 1.33

DHT-13 -50º 030 92.80 100.45 7.65 7.13 1.11

DHT-14 -90º 000 77.30 85.65 8.35 7.84 1.29

DHT-15 -60º 055 108.35 122.55 14.20 13.95 0.89

DHT-25 -65º 210 53.78 64.62 10.84 10.75 0.95

DHT-26 -90º 000 14.10 27.50 13.40 12.59 0.76

DHT-31 -60º 126 147.75 154.75 7.00 5.88 0.74

DHT-33 -50º 330 18.20 24.40 6.20 4.11 0.84

DHT-51 -90º 000 60.35 66.35 6.00 5.64 0.99

Aveleira deposit

DHT-49 -90º 000 24.40 30.35 6.05 5.69 1.25

DHT-70 -90º 000 67.00 78.00 11.00 10.34 0.88

SELECTION OF DRILL INTERSECTIONS FROM COLT’S DIAMOND DRILL HOLES AT THE TABUAÇO DEPOSITS


31

3D Solid

Model

3D Block

Model

3-D MODELING OF THE SÃO PEDRO DAS ÁGUIAS DEPOSIT (TABUAÇO)


32

The São Pedro das Águias and Aveleira (Tabuaço) deposits have a number of characteristics that

make them particularly attractive from the mining point of view:

Mineralized bodies (skarns) very thick (normally between 5m and 20m), with some hundred metres

extension, and with a gentle inclination;

Metasedimentary sequence, including the skarns, continuing under the granitic intrusion, and the

deposits are still open;

Good quality ore, essencially made up of silicates, practically without sulphides or heavy metals

(contaminants);

High scheelite contents, i.e. generally high average WO3 grades;

Scheelite with high degree of purity, without molibdenum (penalizing element);

Metallurgical testwork indicating the possibility of obtaining high-grade (70%) WO3 concentrates

through the application of a combination of gravity and flotation methods;

Possibility of recovery of fluorite as a by-product with significant commercial value.

Besides, it is considered as likely the discovery of new scheelite skarn deposits in the gap between

São Pedro das Águias and Aveleira, as well as beyond Aveleira to the northwest.

THE FAVOURABLE CONDITIONS OF THE TABUAÇO TUNGSTEN DEPOSITS


33


CURRENT STATUS OF DELINEATION OF THE TABUAÇO TUNGSTEN

DEPOSITS

CURRENT RESOURCE INVENTORY OF THE TABUAÇO TUNGSTEN DEPOSITS

(S. PEDRO DAS ÁGUIAS & AVELEIRA)

( 71% of resources at S. Pedro das Águias, 29% at Aveleira )

Resource Category

Tons of ore

grade (%WO3)

Contained metal

(MTU WO3)

Indicated 1,495,000 0.55 815,000

Inferred 1,230,000 0.59 720,000

Total 2,725,000 0.56 1,535,000

34

Underground Mine

The following operations have been considered for the concentration plant:

• Primary crushing

• Secondary crushing

• Milling and pre-concentration in jigs

• Desliming and thickening

• Preconcentration in shaking tables

• Concentration in jigs

• Concentration in shaking tables

• Flotation

• Magnetic separation

Concentration plant

• Production ROM – 375 x 103 ton/year, with an average grade of 0.47 % WO3

• Production of scheelite concentrate with a grade of 70% de WO3

Underground mining method

• Drift & Fill

Prevision for the start of production • 2016 - 2017

• Back filling)

TABUAÇO MINING PROJECT – TECHNICAL INFORMATION


35

SPA Convent

TABUAÇO MINING PROJECT 3D Model of the Underground Workings planned for

the S. Pedro das Águias and Aveleira deposits

S.PEDRO DAS ÁGUIAS

DEPOSIT

QSPA Winery

AVELEIRA DEPOSIT


36

TABUAÇO MINING PROJECT Concentration Plant (Simplified Flowsheet)


37


TABUAÇO MINING PROJECT Main alternatives considered for the location of the mining infrastructures

The Passafrio location was chosen, for reasons related with distance, accessability,

environment, favourable topography, minimization of impacts in the landscape and in

the acquifers, and also facility in reaching an agreement with the landowners

38

Tailings Dam

Waste Dump

Safety Dam

TABUAÇO MINING PROJECT Location of the S. Pedro das Águias and Aveleira planned underground work,

as well as of the mining infrastructure of Passafrio


39

Economic Model Summary Units Results

Production

Ore Processed (kt) 3,557

Recovered Metal (MTU WO3) 1,387.239

Financial

Revenue (USDm) 496.2

Operating Costs (USDm) (244.6)

Operating Profit (USDm) 246.6

Net Profit (USDm) 196

Capital Expenditure (USDm) (86.8)

Cashflow (USDm) 109.2

Post-Tax Reporting

NPV @ 5% (USDm) 67.4

IRR (%) 30.7

Cash Cost

Cash Cost (USD/tore) 70.17

(USD/MTU WO3) 201.20

TABUAÇO MINING PROJECT Preliminary Economic Assessment (September 2013)


40

TABUAÇO MINING PROJECT – SOCIO-ECONOMIC ASPECTS

TOTAL INVESTMENT: € 84 MILLION (APPROX.) (DOES NOT INCLUDE EXPLORATION EXPENDITURE, NEITHER OTHER PRE-OPERATION EXPENDITURE, NOR GROUND ACQUISITION COSTS)

POSITIVE INFLUENCE IN THE ECONOMY AND SUSTENTABILITY OF THE LOCAL AND

REGIONAL BUSINESS ACTIVITIES

DINAMIZATION OF THE LABOUR MARKET, WITH THE MAINTENANCE AND CREATION OF

JOBS FOR SPECIALIZED PROFESSIONALS

ACTIVATION OF COMMERCIAL RELATIONS, BOTH UPSTREAM AND DOWNSTREAM, WITH

OTHER ECONOMIC ACTIVITIES

JOB CREATION IN THE PROJECT AREA: 119 DIRECT JOBS (PLUS AROUND 600 INDIRECT JOBS; AROUND 1200 JOBS DURING THE CONSTRUCTION PHASE)

SIGNIFICANT CONTRIBUTION TO THE NATIONAL AND LOCAL TAXES

MAINTENANCE OF THE LANDSCAPE AND OF THE HISTORIC HERITAGE (SÃO PEDRO

DAS ÁGUIAS CONVENT, ETC.)


41

THE MAKING OF APT OR OF THE TUNGSTEN END PRODUCTS, DEMANDS A SIGNIFICANT “SCALE OF PRODUCTION” THAT WOULD

HARDLY BE ATTAINED BY ONE SINGLE PROJECT. SO, IN ORDER TO VIABILIZE ONE APT PLANT IN PORTUGAL, IT WOULD BE

NECESSARY TO CONSIDER JOINING THE PRODUCTION OF THESE THREE DEPOSITS IN A SINGLE APT PLANT.

POSSIBLE SINERGIES: RELATIVELY CLOSE DEPOSITS WITH SIMILAR MINERALOGY

Base: Cartogr.Geol.1:500.000 do LNEG

TAROUCA, AND SPECIALLY ARMAMAR, HAVE SCHEELITE ORES WITH VERY SIMILAR COMPOSITION TO TABUAÇO,

SO IT IS ADMITTED THAT THEY COULD VERY LIKELY BE PROCESSED THROUGH THE SAME PLANT


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