Cononish Gold and Silver Project – An Overview IOM3 MTD Conference

4 October 2017

DisclaimerThis presentation is provided for the sole purpose of providing preliminary technical, financial and other background information to enable you to review the project and business activities of Scotgold Resources Limited (“Scotgold”).

The material provided does not constitute an invitation, solicitation, recommendation or an offer to purchase or subscribe for securities. The information in this document will be subject to completion, verification and amendment and should not be relied upon as a complete and accurate representation of any matters that a potential investor should consider when evaluating Scotgold. This presentation contains certain statements that may constitute “forward looking statements”. Such statements are only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward looking statements. The information in this report that relates to the following ASX announcements:

• 22/01/2015 - Resource Estimate Update;

• 26/05/2015 - Cononish Gold Project Study Update and Reserve Estimate; and • 05/08/2015 - Cononish Gold and Silver Project Bankable Feasibility Study and Finance Update.

Exploration Results were prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported (see Scotgold Annual Reports 2008 - 2015 and various corresponding ASX releases).

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the original market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

• Scotgold Resources Limited • AIM listed (AIM:SGZ) junior

exploration and development company

• Primary focus - high grade Cononish Gold and Si lver Deposit

Exploration interests • Five Crown Exploration Options

(4,200 km²) in SW Grampians • Portugal - Pomar - Sb / Au • France – Vendrennes - Sb

THERE IS GOLD IN SCOTLAND!

VG from Cononish core in HW of vein

VG from trenching above Cononish vein

Panned gold from burns around Tyndrum

Cononish Gold and Silver Project

Cononish Mine

Trace of Cononish Vein

Ben Lui

Ben Chuirn

Regional Geological Setting

Hosted in similar geological setting to other deposits to south west

• Dalradian sequence (+500Myo) between Great Glen / Highland Boundary faults

• Large granitic intrusives – Starav and Loch Rannoch

• Regional faults – Tyndrum - Glen Fyne and Ericht - Laidon in Tyndrum area

Starav and Rannoch Intrusives

Cononish

Tyndrum Glen Fyne fault

Highland Boundary fault

Great Glen fault

• Discovered in 1984 by Ennex Int. • Exploration 1985 – 1991 - 101

surface diamond drill holes and 1,2km of underground development

• Caledonia Mining Corporation acquisition in 1995

• Planning permission granted – 1996 • Care and maintenance -1999 • National Park promulgated - 2002 • Scotgold acquisition in May 2007 • Positive scoping study – Feb 2009 • New application for permission –

narrowly refused (12 to 10) - 2010

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• Revised application approved unanimously – 2011

• Project delay – Au price drop – 2013 • Company recapitalised - 2014 • Revised resource statement and BFS

- 2015 • Bulk Processing trial – 2016 – 2017 • Phased approach and revised tailings

disposal strategy and update to BFS - 2017

• Application for variation of planning – Aug 2017, determination Dec 2017

• It’s been a long haul!9

BFS Update Results (release 15/3/2017)FINANCIAL RESULTS COMPARISON

Financial Metric BFS Aug'15 Phased ProjectEBITDA (£) 67 427 626 100,040,640Gross Cashflow (£) 43 403 552 79,943,378Net Cashflow (£) 35 725 551 67,375,514Pre-Tax NPV @ 10% (£) 22 945 889 42,891,326Pre-Tax IRR (%) 45 80Post-Tax NPV @ 10% (£) 18 515 172 36,117,874Post-Tax IRR (%) 41 75Operating Margin (%) 53 59Life of Mine (years) 8 9Payback Period (months) 34 27Peak Funding Req. (£) 18 452 183 7,419,340Au price £ /oz 687 920

Mineral Resource Estimate

Classification K tonnes Grade AU g/t Metal Au koz Grade Ag g/t Metal Ag koz

Measured–In-situ 60 15.0 29 71.5 139

Indicated – In-situ 474 14.3 217 58.7 895

Indicated – Mined Stockpile

7 7.9 2 39.0 9

Sub-total M & I 541 14.3 248 59.9 1,043

Inferred - In-situ 75 7.4 18 21.9 53

Total MRE 617 13.4 266 55.3 1,096

(Estimated in accordance with JORC 2012)

Reported from 3D block model with grades estimated by Ordinary Kriging with 15 m SMU Local Uniform Conditioning adjustment. Minimum vein width is 1.2m. Totals may not appear to add up due to appropriate rounding.

Note: MRE prepared by CSA Global (UK) Ltd in accordance with JORC 2012 – see ASX/ AIM release: 22/01/2015 - Resource Estimate Update

•Orebody untested and open at depth •Possible lithological controls and faulted offset section •Current Measured and Indicated resources matched to planning permission duration

Ben Lui

Ben Chuirn

Vein projectionRiver Cononish (headwater of Tay - SAC)

Adit entrance

Eas Anie waterfall

Hosted by Argyll and Grampian meta-sediments + 500M yo Pelites and psammites Mineralisation 400M yo - Caledonide

•Evidence for possible extensions to vein along strike • Geophysical and soil anomalies to west •Soil anomalies to east •Possible parallel veins systems close to mine •High regional potential – prospectivity plan

•65% of material above adit level • Simple sub level open stoping on retreat, •Drives in ore – 2.4m wide, 3.5m high with 15m level intervals •Mine plan 530kt @ 11.4g/t Au, 49g/t Ag. Dilution – c. 25% •1m3 LHDs, single boom face and production rigs,11t diesel trucks.

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Rib Pillars

Ore Drive (production drilling – upholes)

Ore Drive (production loading)

Open void

Ore Drive Developing

Ore(Broken Stock)

•Existing adit widened for access with central spiral ramp (3.5 * 3.5m) and twin ramp for upper and lower sections • 3.5km waste and 6.8km ore development – waste generally used in tailings construction •Strategic rib and sill pillars left for support and waste storage •Crown pillar left to protect surface – no surface expression • Additional inferred resources below current design pending further drilling

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Ore Reserve Estimate

As at 25 May 2015 (JORC 2012 Code)

Classification Proven Probable Total

Tonnes (‘000) 65 490 555

Au Grade (g/t) 11.5 11.1 11.1

Au Metal (k oz) 24 174 198

Ag Grade (g/t) 51.5 47.2 47.7

Ag Metal (k oz) 108 743 851

(Bara Consulting Limited Ore Reserve Statement dated May 2015)

(Estimated in accordance with JORC 2012, Gold price US$1,100/oz & Silver price US$15/oz)

Note: Ore Reserve Estimate prepared by Bara Consulting Limited in accordance with JORC 2012 – see ASX/ AIM release: 25/05/2015 – Cononish Gold Project Study Update and JORC 2012 Ore Reserve Estimate.

•Processing •Gold occurs as ‘free gold’ (90% sub 100µ, average 50 µ) and around and in fractures in sulphides •Two stage crushing and milling to p80 125µ •‘Gravity concentration, on site doré, 25% of gold, 5% of silver. Scottish Gold. •Flotation of base metal sulphides with concentrate (containing Cu, Pb, Zn ,Au, Ag, Te) to external smelter. •5% of mass, c.150g/t Au 700g/t Ag •Estimated recovery 93% gold, 90% silver

• Tailings

•Predominantly quartz with some carbonate – mildly acid consuming

•Metal levels in tailings equivalent to local soils – classified as inert.

•Previously permitted (2011 permission)- engineered containment dam – rock toe and compacted till embankment – upstream construction method, compacted till lining, burn diversion. Dam built in incremental lifts with on going restoration of slopes

•Tailings water re-circulated through recirculation pond back to process plant, excess discharged (+2.5m of rain on site)

• Surplus clear water discharge to the Cononish river under SEPA consent, electronically controlled to meet discharge limits with failsafe mechanism

•Revised methodology study by Knight Piesold - dry stack with 10 stacks replicating glacial features in Cononish Glen

•Dewatering through filter press at plant (18% moisture)

•Transport from stockpile by ADT to stack area for placement / compaction.

•Collection drains to settlement pond and recycle / discharge.

•Site specific advantages •Significantly reduced upfront capital costs

•Better ‘visual fit’ within the glen

•No longer Category A facility

•Burn diversion no longer required

•Concurrent restoration / on going restoration trial

Progressive Stack Construction

• 52 ‘direct permanent jobs’ in Tyndrum/ Crianlarich area – manufacturing / industrial skills – above average wage rates – some specialist skills to be imported •C.£80M contribution to national economy • Appropriate multiplier to local services sector’ 1:1 to 1 : 2 • Opportunities for Scottish gold jewellery • Community initiative to develop on going tourism potential at Tyndrum -interpretive centre reflecting the geo-diversity of the area – gold mine, lead mine, glacial features etc. A possible appropriate sustainable legacy

•Key ‘Planning’ conditions (2011 Permission)

•Restoration and TMF bonding

•Decommissioning, Restoration plan and Construction phasing plan and method statements, peat and turf management

•Working hours (plant operations – amended 2014)

•Planning and Community gain, Cononish Glen Management plan

• Appointment of PMO, ECoW and LCoW for construction / monitoring

•Blast, noise and groundwater monitoring

•Ice climb on Eas Anie waterfall

• Bulk Processing Trial (“BPT”) • Treating stockpiled material from

adit • Demonstrate that Scottish mined

gold with a proven provenance can be sold at a premium.

• Assisted in developing phased approach and led to development of dry stack methodology

BPT Plant Feed Conveyor, Hammer Mill and Spirals

BPT Plant Shaking Table

Conclusions• Cononish is a high grade, high return, low risk, near term

production gold project. • Opportunities identified by BPT have led to improved project

economics and reduced capital hurdle. • Potential for marketability of Scottish gold proven • The Grampian Project has the potential to provide a pipeline of

future projects.