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ZincOx Resources plc

ZincOx Resources plc. Corporate Overview February 2013. Using today’s technology to make yesterday’s waste into tomorrow’s resource “ubi est squales est æ re”. Disclaimer.

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ZincOx Resources plc

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  1. ZincOx Resources plc Corporate Overview February 2013 Using today’s technology to make yesterday’s waste into tomorrow’s resource “ubi est squales est ære”

  2. Disclaimer This document is for informational purposes only and must not be used or relied upon for the purposes of making any investment decision or engaging in any investment activity. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation, nor on assumptions made as to its completeness. No representation or warranty, express or implied, is given by ZincOx Resources plc or any of its advisers, directors, officers, employees or agents, as to the accuracy, fairness or completeness of the information or opinions contained in this Presentation and no liability is accepted for any such information or opinions (which should not be relied upon) or for any loss howsoever arising, directly or indirectly, from any use of this document or its contents or information expressed in the Presentation. The information contained in this Presentation is subject to amendment, revision and updating in any way without any notice or liability to any party. Certain statements in this document relate to the future, including forward looking statements including but not limited to those with respect to the financial position and strategy of the Company, the price of zinc, the estimation of mineral resources and reserves, the realisation of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. These forward looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause the actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such statements. Such risks, uncertainties, assumptions and other important factors include, among other things, general economic conditions, exchange rates, interest rates, the regulatory environment, structural changes in the industries in which the Company operates, competitive pressures, selling price and market demand. The forward looking statements in this document reflect views held only as of the date of this document and the Company expressly disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.

  3. Business Overview Zinc rich steel industry waste (EAFD) Free ZincOx Recycling Plant Iron bearing product  Sold to Steel Mills (10% Revenue) • Zinc bearing product Sold to Zinc Smelters (90% Revenue) Game Changing Technology Global Roll-outs planned First Plant in S. Korea Production ramping up

  4. Corporate Overview History95% of zinc comes from sulphide ore depositsZincOx set up (1998) to develop non-sulphide zinc minesEach one different – bespoke solutionExceptional technical team, >128 years of zinc experience Technology driven but not technology providerTrack record in development of game changing technology Modify existing technology, not “black box” Objective: To become the largest and most sustainable zinc recycler StatusHQ in Surrey (7 - strategy, finance, etc)Technical support in Belgium (12 - technical and development)Regional offices: USA (5), Thailand (2), Korea (5578) AiM quoted 113 million shares (fully diluted)

  5. FEED - Electric Arc Furnace Dust (EAFD) Steel produced by: 1. Reduction of iron ore in Blast Furnaces (e.g.Posco) 2. Recycling scrap in Electric Arc Furnaces (EAF) Electric Arc Furnaces generate waste Dust (EAFD) Scrap contains steel that is increasingly galvanised (zinc coated) During iron melting zinc is driven off into the EAFD as an oxide Dust contains: zinc: 18-24% (average mine: 5-6% zinc) iron: 26-30% cadmium, lead: <2% (harmful elements = Hazardous Waste) Korea, strictly controlled  landfill (disposal fee)

  6. TECHNOLOGY – Rotary Hearth Furnace (RHF) Based on established (“iron making”) technology modified to optimise for zinc recovery and energy efficiency • Unlike existing processes • It produces no waste • Has more product revenue Double Breakthrough  Environmentally superior  Economically superior (no subsidy required)

  7. RHF – Feed & Products Zinc Smelter HZO Zinc Concentrate 58% zinc + lead + salts Briquettes EAFD (83%) coal (14%) binder (3%) heat gas 27 meters NO WASTE RHF 1,300oC solid ZHBI Iron Product 50% iron 50% slag EAFD Electric Arc Furnace

  8. KRP Korean Recycling Plant

  9. Korean Scrap recycling No. 2 scrap importer No. 1 concentration of scrap recyclingSteady growth

  10. South Korean Recycling Project Until ZincOx, EAFD has been landfilled ZincOx Supply Agreement10 year contracts with all steel recyclers400,000 tpa EAFD @ 23.1% zinc EAFD only paid for at high zinc price Transport paid by mills at low zinc prices Strong SupportKorea Iron and Steel Association Zinc Industry Government Foreign Investment Zone StatusYears 1-5, tax free (Years 6-7, 11% tax)Tax free import of capital goods Site LeaseGovernment purchase site, US$ 20 million50 year renewable lease, 5 years rent free 100 km KRP92,000 tpa zinc in conc 100,000 tpa Fe in ZHBI Korea Zinc smelter 600,000t zinc in concimported per annum Scrap Recycling Plants ( EAFD generation) 101

  11. KRP 1 and 2

  12. KRP - Development Plan

  13. KRP1 Plant Layout View 1 View 2

  14. KRP Construction 12 months constructionCompleted on schedule and budget >500,000 man hoursNo lost time accidents

  15. Korean Recycling Plant January 2012 Hotbriquettingtower Briquettingtower Mega-silo Gas handling ZHBIstorage RHF EAFD silos Coalpulverising Workshop Office

  16. First Zinc Concentrate (27 April 2012) Zinc OxideConcentrate (HZO) Iron Product (ZHBI)

  17. KRP Production Status -1 Process Confirmation Zinc recovery rate 89-94% (target: 97%)Zinc concentrate grade 63%-66% (target 58%)Iron metallisation 70-85% (Target 80%-85%) SalesAll zinc concentrate sold to Korea ZincIron product (ZHBI) undergoing consumer trials OutstandingLong term remedial action for heat exchanger

  18. Production Ramp Up, 6/12 – 1/13

  19. Consensus long term zinc price ZincOx long term zinc price zinc price 12/2/13 Confidential

  20. KRP1 Cash Flow Estimate (in full production) Total Revenue Zinc Revenue Operating Cost EBITDA ZHBI (iron) Revenue

  21. KRP 2 Status Basic engineering study completed. Savings:Mega silo, infrastructure, HBI tower, offices, storeroom, control room, lab Additional cost:New: RHF, briquetters, mixers, foundation work Cost US$100-110 million Detailed engineering commenced Standard Chartered Bank mandated Production H1 2014

  22. Global Roll-Out

  23. Global Opportunity 1/3 of steel produced by recycling scrap EAFD contains zinc, 18-24% (average mine: 5-6% zinc, underground) >6,000,000 tonnes of EAFD produced annually from about 1,000 sites =1.3 MMt Zn pa (zinc production 12 MMt pa) Contains Cd, Pb Hazardous  Landfill or Recycling. Current technology: less profitable generates waste (no iron product)  needs subsidy (>US$80/t?) Developed countries, landfill expensive  mostly recycled Developing countries, landfill cheap  landfilled 50% of EAFD  landfill (2008) ZincOx’s “game changing” technology works without subsidy. Transforms waste into a resource

  24. Target Regions 200/300 400/400 200/1500 200/1200 200/350 200/400 200/200 200/400 Target RegionsKtpa RHF potential/EAFD prodn. Advanced Other New 51% JV

  25. Russian Joint Venture 51% ZincOx 49% Magnezit (Ural Recycling LLC)Major magnesite mine, at Satka (since 1901)Largest refractory producer in FSU1.5 million tonnes per annum75% to steel industry, of which 25% to Electric Arc Furnaces Magnezit recognised superiority of ZincOx technology approached ZincOx to form JV visited KRP in May, CEO plus senior management team Work Programme2012/13 Project Definition2013/14 Bankable Feasibility2015 Construction2016 Production

  26. Growth Potential ARP - Turkey ARP - Turkey 200k 200k

  27. Growth Potential ARP - Turkey SEARP - Thailand 200k 200k 200k

  28. Short term (2013) objectives • KRP1Full capacity • Iron product salesKRP2FinancingDevelopment commences • Plant 2Environmental permittingEAFD contracts • Plant 3Environmental permitting

  29. Summary • Focused on Korean Recycling Plant • 400,000 tpa EAFD 10 year supply agreed (23.1% zinc) • Phase 1 • to produce 76,000tpa zinc oxide concentrateRamping up from May 2012 • Full year EBITDA US$31 million pa (zinc = US$2,250/t) • Phase 1+2 • to produce 152,000 tonnes of zinc oxide concentrate Q2 2014 • EBITDA US$53 million per annum (zinc = US$2,250/t) • Excellent Additional Growth Potential • Plans to “roll out” concept in other countries • Using today’s technology to make yesterday’s waste into tomorrow’s resource

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