The Road to Production Kobada Gold Project Investor Presentation Mining Indaba, Cape Town February 2015 1
Cautionary Statement No regulatory authority has approved or disapproved the information contained in this presentation. This presentation includes certain statements that may be deemed forward looking statements. All statements in this presentation, other than statement of historical facts, that address future production, reserve potential, exploration drilling, exploration activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors should be cautious that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws. The scientific and technical content of the African Gold Group, Inc. presentation was reviewed and approved by Mr. Declan Franzmann, CEO of the Company, who is a Qualified Persons within the meaning of National Instrument 43-101. 2
Corporate Fact Sheet Trading Symbol Toronto, Canada TSX-V: AGG Capitalization Shares Outstanding Options Warrants ($0.12 expire 2015, $0.18 expire 2016, $0.075 expire 2017) Fully Diluted Stock Performance Share Price (Nov 25, 2014) 52-week Range Avg. Daily Volume (3 month) Market Capitalization Debt Major Shareholders 200,057,735 12,690,000 43,881,373 256,629,108 C$0.065 C$0.04-$0.22 325,000 ~C$13 MM Nil Management ~10% Sentry 5.5% Sprott 3.5% TD Asset Mgmt 1.85% 3
AGG Management & Board Management Team Declan Franzmann, FAusIMM, President and CEO Mining engineer with 22 years of operational and management experience; Significant experience in gold projects, both hard and soft rock environments; Track record in project development. Torben Michalsen, Chief Operating Officer Engineer with 15 years of resource industry experience; Significant experience with developing gold projects in remote locations. Pierre Lalande, P. Geo., Director & Chief Geologist 40 years field experience 35 years West African experience Michael A. Nikiforuk, Director, Past President and Founder Former Vice President, Corporate Development and Former Director, Banro Resource Corp. Significant experience managing exploration companies; Focus on corporate social responsibility programs, community stakeholder and government relations initiatives. Marco J. Durante, Director, Secretary and Founder Substantial past experience with mining companies including Banro Resource Corporation and Lyndex Exploration; Focus on Investor Relations strategies and financing initiatives. Sékou Konate, Country Manager, Mali Significant and invaluable experience facilitating explorat ion and mining activities in Mali. Board of Directors David S. Brown, LL.B, Chairman Partner, Corporate Practise, WeirFoulds LLP, Toronto, Canada; Founding President & Director Private Capital Markets Association of Canada; Past Chair & Co-Founder, Toronto Venture Group and Toronto Angel Group (now the Maple Leaf Angels). Mark Raguz, Director Vice President, Investment Banking, Edgecrest Capital; Former Mining & Metals Analyst at Pinetree Capital, a former member of GMP Research. Jean-Jacques Lefebvre, MSc, (Belgium); Eng. (France), Director Negotiated the acquisition of Kobada for African Gold Group; Significant geological and management experience throughout Africa. 4
Mali Fostering Development Southern Mali. Long history of gold production. 3 rd largest gold producer in Africa with a large representation of major mining companies. Highly trained and educated work force. Favourable fiscal regime and Government supportive of mining investment. 5
Corporate Strategy Mine Development Our Vision To be a 50,000 oz Au per annum producer by 2016 Targeting the processing of 1.6 million tonnes of ore per annum Simple Mining + Simple Processing = Low capital costs Simple Mining + Simple Processing = Low operating costs 6
Project Overview Kobada concession 215km 2 7
Mineral Resource MIK estimation, constrained within grade shells. Estimation technique widely used for this style of mineralisation. Average M&I grade up by 20% on previous estimate. +1g/t average grade has a significant impact on project economics. 8
Metallurgy Simple process flow sheet 1.6 million tonnes per annum throughput 9
Metallurgy Test Work Pre-concentration; Gravity Concentration; Direct leaching of table concentrates possible; Grinding and leaching of table tailing; Overall recovery of 85% of gold; 10
Project Overview PEA Highlights 1.6Mtpa gravity concentration and concentrate leaching operation; Annual production in first two years of more than 50,000 Au ounces; Low cash costs. $482 per ounce for the first two years of operations; All in sustaining costs (AISC) of $792 per ounce life of mine; Preproduction Capital Expenditure $46.6M ($6.1 in contingency) Project NPV 5% (after tax) of US$126 million; Project IRR (after tax) of 53%; and Significant exploration potential remaining. 11
Project Overview Kobada Infrastructure 12
Current Work Program Environmental and social impact assessment (ESIA) commenced in July 14. Baseline studies completed. ESIA submitted to Gov.; Enviro. permits pending final community consultation meeting; Application for mining licence underway; Bankable feasibility study work includes: geotechnical study for pit slopes; detailed design of tailing storage facility; Detailed design of processing plant. 13
Why Invest in AGG? Look beyond the Explorer. Look beyond the Market. Scalable modular production Simple open pit free digging materials Excellent metallurgical characteristics high mass rejection with high gold recovery Simple mining + simple processing = Low CAPEX Simple mining + simple processing = Low OPEX High free cash flow = fast payback Look beyond the Deposit. Kobada 2.4 M ounces gold resource; brownfields exploration targets with potential to double resource. 14
The Road to Production Low Cost Gold from Southern Mali Investor Relations declan@mail.africangoldgroup.com +61 438 758 960 www.africangoldgroup.com 15