Nordic Mining (NOM) Status Update summary

DFS economics and operations

• Pre-tax NPV at 8% of $450m and IRR of 21.9%; post-tax NPV at 8% of $344m and IRR of 19.8%.

• Average annual free cash flow in the first 15 years of $70m; undiscounted net project operating cash flow of $2,160m.

• Initial capex of $311m plus $25m deferred underground capex; payback period under 5 years.

• Planned 42-year project life at 1.5 mtpa ROM: 15 years of open-pit mining and high-grade processing, 19 years of underground production, then 8 years using stockpiled ore with no mining costs.

• Low production costs, high-grade rutile and garnet, and a 1st-quartile rutile revenue-to-cost position support competitiveness; inferred resources could extend project life.

Permits and project readiness

• Extraction permits cover the whole deposit; landowner agreements, the full-life-of-mine zoning plan and environmental permit have been granted.

• Operational license and zoning plan for the fresh-water pipeline were in process.

• DFS described the project as execution-ready; detailed engineering (FEED) and supplier contract discussions were next steps.

• Offtake discussions for rutile and garnet were to continue toward bankable terms; bank due diligence was ongoing.

• Subject to construction financing, construction was targeted to start before end-2020.

Environmental and social approach

• Development commitments include high international environment, health and safety standards, aligned with IFC Guidelines and relevant Equator Principles.

• Low carbon footprint and limited land use were linked to compact infrastructure, minimal internal transport and sea freight; renewable hydroelectricity was the main energy source.

• Mining was characterized as clean, with no acid drainage and inert minerals; the operation was expected to employ 105 full-time staff and generate regional supplier and service-industry benefits.

• Planned social benefits included livelihood, education, employment and cultural opportunities; stakeholder engagement was intended to support dialogue and environmental monitoring.