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Corporate PresentationMay 2020
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Disclaimer
This presentation does not constitute, or form part of, any offer to sell or issue or any solicitation of any offer to purchase or subscribe for,any shares in Trans-Siberian Gold Plc (“TSG” or the “Company”), nor shall it (or any part of it) or the fact of its distribution, form the basisof, or be relied on in connection with, or act as an inducement to enter into any contract or agreement thereto.
Any potential investor is made aware that an investment in any form of equity carries the risk of a potential total loss of the investedcapital. Potential investors are therefore advised to seek professional investment, legal or tax advice prior to making any investment inthe Company.
Certain forward-looking statements may be contained in the presentation which include, without limitation, expectations regarding metalprices, estimates of production, operating expenditure, capital expenditure and projections regarding the completion of capital projects aswell as the financial position of the Company.
Please note that past performance is no reliable indicator of future results: although TSG believe that the expectations reflected in suchforward-looking statements are reasonable, no assurance can be given that such expectations will prove to be accurate. Accordingly,results could differ from those projected as a result of, among other factors, changes in economic and market conditions, changes in theregulatory environment and other business and operational risks.
Accordingly, TSG nor any of TSG' directors, officers, employees, advisers, associated persons or subsidiary undertakings shall be liablefor any direct, indirect or consequential loss or damage suffered by any person as a result of relying upon this presentation or any futurecommunications in connection with this presentation and any such liabilities are expressly disclaimed.
This information is confidential and must not be passed to any third parties except to personal investment, legal or tax advisors of theaddresses.
As of May 2020
2
3Trans-Siberian GoldA low cost, high grade gold producer in Russia 3
Introduction
Trans-Siberian GoldA low cost, high grade gold producer in Russia 4
OverviewIntroduction
2000
2003
2004
2005
2006
2007
2011
2016
Company incorporated
AIM listing
AngloGold Ashanti acquire 17.6% stake
UFG acquire 29.1% stake
Veduga and Bogunay sold for $40m
Asacha mine commenced production
UFG holding increased to 79.6% • Maiden Dividend
AngloGold Ashanti increase holding to 29.9%
2017 Board Changes • Interim Dividend
2018 Asacha licence extension • CEO succession • Final Dividend
Organisational structureBrief History
UK Listing
Head Office
Asacha Mine & Rodnikova deposit
Corporate & Operational Footprint
2019 Acquisition of licence for Rodnikova deposit • Share Buyback
ZAO Trevozhnoye Zavevo
(TZ)
Management company
OOO Trans-Siberian Gold Management (TSGM)
Exploration & Production
100%100%
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Share Price Performance (LTM) TSG Ownership
Capital Structure
Corporate & Capital StructureIntroduction
Notes: Market Data as at 1 May 2020.
Source: Q4
Shares in issue 87,158,508
Shares in treasury 22,894,565
Share price £0.85
Market Capitalisation £74.1m
Net Debt £13.3m
Enterprise Value £87.4m
Options / Warrants in issue Nil
Source: Argus Vickers / public filings
• * denotes connected to UFG Asset Management• UFG is a multi-asset investment manager having invested institutional and private
capital in Russia and CIS since 1996.• UFG’s aggregate capital commitments exceed $1.5Bn• UFG is PRI signatory
5
GB
p
UFG Special Situations Fund L.P.* 29.8%UFG Investment Company I Ltd * 12.3%
Charles Ryan* 8.3%
KST Beteiligungs AG 5.4%
RAB Capital 4.8%
Florian Fenner* 3.9%
UFG Private Equity Fund I, L.P.* 3.3%
Firebird Management LLC 2.2%
Vadim Ognestsikov* 2.0%
Petrovka GmbH* 2.0%
UFG Russia Select Master Ltd.* 1.4%
Robert Sasson * 1.3%
Quilter Cheviot 1.0%
UBS Wealth Management 0.5%
0
20
40
60
80
100
120
140
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Charles Ryan Non Executive Chairman
• Chairman of UFG Asset Management
• Non-executive Chairman of Deutsche Bank in Russia.
• Founder director of United Financial Group (UFG)
• Principal Banker with the EBRD in London
• Harvard University graduate
Alexander Dorogov Chief Executive Officer
• Former CFO of the Alumina division of UC Rusal
• Senior positions at Arlan, private investment fund
• Financial management graduate from Finance Academy in Moscow
Eugene Antonov Chief Operating Officer
• 20yrs+ experience working in the mining industry
• Senior positions at Kinross, Bema Gold Corporation and Teck Resources
• MBA, Rotman School of Management
Robert Sasson Non Executive Director
• Partner, UFG Asset Management
• EBRD, Head of St. Petersburg office
• Russian Studies and International Government, Exeter University
Florian Fenner Non Executive Director
• Managing Partner of UFG Asset Management
• Unifund, Head of Moscow office
• Deputy Head of Research at Brunswick Brokerage
• CFA charter holder
Lou Naumovski Non Executive Director
• 30yrs+ of experience working in Russia
• Vice President & General Director Kinross Gold Corporation Moscow office
• SVP & GM Visa International Service Organisation (VISA), CEMEA region.
• EBRD, Senior Banker and Head of Mission for Russia
Stewart Dickson Non Executive Director
• 10yrs+ investment banking experience
• Former Head of Metals & Mining, Cantor Fitzgerald Europe
• MBA, Henley Business School
6
Board of DirectorsIntroduction
Investment Case
7
Key Facts Key Strengths
Low Cost Gold Producer
Growth Opportunities
Attractive Dividend
Favourable Mining
Jurisdiction
Low gearing
Strong Institutional
Shareholders
Robust Financials
Supportive, long-term shareholders:Majority owned by UFG Asset Management (~72%)
Beating expectations: Record production of 43,479 oz gold in doré in 2019 (FY18: 42,128 oz)
Unaudited Revenue of $63.1m in 2019 (FY18: $59.8m)
High yield stock: $21.5m in dividends paid 2016-2019. 2019 special dividend of $5.7m paid in Feb 2019. Approved 21% share buyback in May 2019
Robust corporate governance
High grade mine: 7.8 g/t average in 2019 (FY18 average: 7.4 g/t)
Rosnedra approval for mining license extension 6 years. Recent award of Rodnikova licence
Low energy costs due to Far East Russia subsidies
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Becoming a premier mid-tier gold producer & developer
8
Enhance existing operations
Utilise stable platform for future growth opportunities
Pursue selective accretive M&A opportunities
1 2 3
Strategy
Trans-Siberian GoldA low cost, high grade gold producer in Russia 9
2020 Priorities & Enablers
Drilling:• N extension• S extension deep• Vein 18• Vein K2
• Vein 25N & Vein 25 infill drilling
• Resource verification
• Technical studies
• JORC MRE• Exploration
drilling • Scoping study
• Selective M&A opportunities
• Judicious investments or JVs
AsachaMain Zone
AsachaEast Zone Rodnikova Other
Production Resource Growth / Future Production
FCF & Dividends Value / Capital Growth
+ + +
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Rising Gold Price Falling Oil Price (WTI)
10
Devaluation RUB:USD
Market Trends (last 90 days) Introduction
Source: World Gold Council; EIA; www.ofx.com
1,300.0
1,350.0
1,400.0
1,450.0
1,500.0
1,550.0
1,600.0
1,650.0
1,700.0
1,750.0
1,800.0
-60
-40
-20
0
20
40
60
80
US$
/bbl
40
45
50
55
60
65
70
75
80
85
11Trans-Siberian GoldA low cost, high grade gold producer in Russia 11
Asacha Gold Mine
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Location Geology• Pliocene age • Low-sulphidation, quartz, sericite, adularia epithermal Au/Ag
deposit• The deposit has formed in a collapsed caldera complex that
consists of volcaniclastic tuffs, overlain by coarse-grained dacites-andesites and tuffs.
• Two zones of mineralisation have been identified:– Main Zone – hosts the largest and most continuous veins– East Zone – veins are generally narrower and
less continuous• Gold exists in a free form, forms sulphides and tellurides with silver
and concretions with quartz, adularia, pyrites, chalcopyrite and argentite
12
OverviewAsacha Gold Mine
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Reserves & Resource Statement
JORC Reserves & Resources Statement (December 2019)
13
Asacha Gold Mine
Notes:
1. Resources are reported above 4m*g/t Au cut-off grade
2. Resources are reported after mining depletion
3. Tonnage and grades have been rounded to reflect an appropriate level of precision
4. Rounding may mean that columns do not sum exactly
5. Mineral Resources are classified according to the definitions of the JORC Code
Classification Zone ’000 tonnes Au (g/t)
Ag (g/t)
Au (‘000oz)
Ag (‘000oz)
Measured Main 72 12 37 28 85
Indicated Main 124 10 48 40 193
Indicated East 43 31 39 42 54
Total M&I 239 14 43 111 332
Inferred Main 101 14 30 45 98
Inferred East 211 23 36 157 245
Total Inferred 313 20 34 202 343
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Gold & Silver Production (Annual) Gold & Silver Production (Quarterly)
14
Ore Processed & Gold Grade AISC ($/oz)
Operational PerformanceAsacha Gold Mine
0.00
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
2011 2012 2013 2014 2015 2016 2017 2018 2019
Gold, oz (refined) Silver, oz (refined)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Gold, oz (refined) Silver, oz (refined)
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Ore processed, tonnes Grade, gold, g/t
1341
1049
850950
0
200
400
600
800
1000
1200
1400
1600
2017 2018 H1 2019 2020e
Trans-Siberian GoldA low cost, high grade gold producer in Russia
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
US$/
Oz
2020 AISC Guidance
15
Asacha Gold Mine
Source: Company reports
Trans-Siberian GoldA low cost, high grade gold producer in Russia 16
FY 2019 Operational Performance Asacha Gold Mine
Metric Unit 2018 2019 Y-o-YMine development metres 6,415 7,239 ▲ 12.9%
Ore extracted tonnes 173,597 142,151 ▼ 18.1%
Ore processed tonnes 189,695 179,373 ▼ 5.4%
Grade, gold g/t 7.4 7.8 ▲ 6.2%
Grade, silver g/t 22.8 23.4 ▲ 3.2%
Recovery, gold % 94.9 95.3 ▲ 0.4%
Recovery, silver % 76.7 81.5 ▲ 6.2%
Gold in dore oz. 42,128 43,479 ▲ 3.2%
Silver in dore oz. 105,069 111,557 ▲ 6.2%
Gold refined oz. 46,053 43,733 ▼ 5.0%
Silver refined oz. 108,191 109,851 ▲ 1.5%
Gold sold oz. 45,956 43,782 ▼ 4.7%
Silver sold oz. 108,749 115,801 ▲ 6.5%
Gold price $/oz. 1,265 1,399 ▲ 10.6%
Silver price $/oz. 15.2 16.0 ▲ 5.4%
Trans-Siberian GoldA low cost, high grade gold producer in Russia
MiningDeposit is developed by 2x adit levels • 200m (truck decline starts)• 240mMining methods used: • sublevel drifts method; • layer by layer stoping method.
17
Annual Mine Development
Operations (Mining) Asacha Gold Mine
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
8,000.00
2011 2012 2013 2014 2015 2016 2017 2018 2019
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Processing • Preliminary crushing • 2 stages of semi-autogenous grinding (ball mill & SAG)• Pulp classification in hydro-cyclones• Screening (0.75 mm) • Slurry thickening in high-capacity thickener • Cyanidation & carbon-in-leach (CIL) process • Electric elution of loaded carbon under pressure using IPS
technology • Acid treatment & thermal regeneration of carbon • Melting of cathode deposits into doré alloy • Cyanide destruction of slurry tailings by chlorination • Storing of neutralised tailings as diluted slurry
18
Operations (Processing) Asacha Gold Mine
Trans-Siberian GoldA low cost, high grade gold producer in Russia
0
1
2
3
4
5
6
7
8
9
10
Rave
nswo
od
Pion
eer
Bela
ya G
ora
Suak
ri
Alby
n
Ged
abek
Mal
omir
Seki
sovs
koye
Mno
gove
rshi
nnoy
e
Yanf
olila
Mak
o
Syam
a
Blan
ket
New
Luik
a
Kizi
ltepe
Novo
shiro
kins
koye
Palit
o / S
ao C
hico
Asac
ha
RSG POG HGM CEY POG AAZ POG ALTN HGM HUM RSG RSG CMCL SHG AAU HGM SRB TSG
g/t
Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19
Operations (Grade) – LSE Gold Producers
19
Asacha Gold Mine
Source: Company reports
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Exploration
20
Asacha Gold Mine
• Ambitious exploration programme planned in 2020
• Total of 25,000 m planned for the 2019-2020 drill campaign over the Asacha licence area
• Fully funded capital expenditure of up to $7.9 million allocated for development and exploration
• Discovery of an extension of Vein 25, Vein 25 North, some 400 metres to the north
• Highly encouraging drilling results from recent surface drilling indicate high grade mineralisation:
235 g/tAu, 134 g/tAg over 1.4 m Hole ID C2012 56 g/t Au, 366 g/tAg over 5.6 m Hole ID C203751 g/t Au, 55 g/tAg over 5.5 m Hole ID C202049 g/t Au, 98 g/tAg over 5.4 m Hole ID C205061 g/t Au, 176 g/tAg over 4.0 m Hole ID C204718 g/t Au, 229 g/tAg over 8.1m Hole ID C205383 g/t Au, 231 g/tAg over 1.2 m Hole ID C204338 g/t Au, 450 g/tAg over 2.1 m Hole ID C204935 g/t Au, 225 g/tAg over 1.4 m Hole ID C204510 g/t Au, 90 g/tAg over 4.8 m Hole ID C202230 g/t Au, 255 g/tAg over 1.3 m Hole ID C203526 g/t Au, 21 g/tAg over 1.2 m Hole ID C2011
• Geological modelling being updated
• Drilling programme is ongoing with two full-time rigs deployed
Source: Company Announcement 27 April 2020
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Exploration – Vein 25 (East Zone)
21
Asacha Gold Mine
Source: Company Announcement 27 April 2020
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Lower Operating Energy Costs
22
Asacha Gold Mine
• Tariff levelling in Russia’s Far East – mechanism that aims to equalize energy tariffs in Russia and lower the cost burden for industrial consumers in developing Far East regions as well as increase the investment attractiveness of regional economies
2.1 3.3
14.517.3
2.25.2
2.63.2
2.6 5.8
2 0 1 7 2 0 1 8
Tota
l sur
char
ge
24 34.8Chukotka
Magadan region
Kamchatka
Yakutia (Sakha)
Sakhalin
Source: RusHydro; Company
• In 2019, TSG continued to benefit from significant energy cost savings to local producers.
• In 2020, it was confirmed that the Asacha mine will continue to receive energy subsidies at a reduced tariff. Energy tariff for H1 2020: RUR4.75/kWt, H2 2020: RUR5.07/kWt.2020 Avg RUR 4.97/kWt
23Trans-Siberian GoldA low cost, high grade gold producer in Russia 23
Rodnikova
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Close proximity to operating Asacha mine Geology• Situated in Yelizovo District of South Kamchatka
• Rodnikova high grade epithermal Au-Ag deposit is one of the largest gold fields of South Kamchatka
• Located 50 km from Asacha Gold Mine and 120 km from Petropavlovsk
• Low-sulfidation quartz adularia epithermal Au/Ag veins in a host rock of diorite (similar geological structure to Asacha)
• Occupies an area of ~ 22 km2
• Largest vein up to 25 m wide
• Access ground road ~ 5 km
• Mutnovskaya geoTES ~ 21 km
• The deposit is located in the vicinity of the Vilyuchinsk hot springs
24
• Geographic and operational synergies presented by close proximity to operating Asacha Mine
• Management expertise in bringing epithermal Au-Ag deposits to production in South Kamchatka
• +1Moz of gold Indicated & Inferred Resources (JORC Mineral Resource Estimate, 2020): initial scoping study on track for delivery in Q2 2020
OverviewRodnikova
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Rodnikova – Development
Historical Development Timeline
25
Rodnikova
1977 1994 - 2008 2014 2019
Rodnikova deposit discovered
TZ exploration work
Mineral Reserves Report approved by Kamchatka authorities
TZ licence expires
TSG acquires licence for the exploration and development; valid for 20 years
1977 – 92
CKGEexploration work
1994
Mining licenceissued to “TZ”
20112008
Completion of Pre-feasibility study
Key project enablers in place
TSG experience & know-how (10yr+ production experience)ü
High grade deposit (+1Moz Au at 5g/t and 7.4Moz Ag) ü
20yr exploration licence ü
Infrastructure is in close proximity (sealed roads, geothermal power) ü
Similar deposit geology to Asacha Gold Mine ü
Anticipated operational synergies ü
2020
Updated JORC Mineral Resource Estimate
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Reserves & Resource Statement
JORC Reserves & Resources Statement (December 2019)
26
Rodnikova
Notes:
1. Resources are reported above 3g/t Au cut-off grade
2. Tonnage and grades have been rounded to reflect an appropriate level of precision
3. Rounding may mean that columns do not sum exactly
4. Mineral Resources are classified according to the definitions of the JORC Code
Classification Tonnes(Mt)
Au (g/t)
Ag (g/t)
Au (‘000oz)
Ag (Moz)
Rodnikovy
Indicated 3.1 5.3 16.1 519 4.3
Inferred 1.7 4.3 7.4 238 1.8
Vilyuchinsky
Inferred 1.5 5.3 7.9 253 1.3
Total Indicated 3.1 5.3 16.1 519 4.3
Total Inferred 3.2 4.8 15.3 491 3.1
Trans-Siberian GoldA low cost, high grade gold producer in Russia 27
Financial performance
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Revenue Operating Profit
28
Profit before Tax Net Debt / Cash Generated from Operations
Financial ResultsFinancial Performance
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
-40,000,000
-30,000,000
-20,000,000
-10,000,000
0
10,000,000
20,000,000
30,000,000
40,000,000
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Net Debt Cash generated from Operations
-15,000,000
-10,000,000
-5,000,000
0
5,000,000
10,000,000
15,000,000
20,000,000
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Operating Profit
30%10%25%20%10%
Operating Profit Margin
1,2651,2601,248
Avg. realised gold price ($/oz.)
1,1461,2561,4021,668
-20,000,000
-15,000,000
-10,000,000
-5,000,000
0
5,000,000
10,000,000
15,000,000
20,000,000
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Trans-Siberian GoldA low cost, high grade gold producer in Russia
2019 Operational Key Performance Indicators
29
Financial Performance
Refined gold sales
43,782 oz. -4.7%
Average realised gold price
$1,399 +10.6%
Ore extracted (‘000)
142,151 tonnes -18.1%
Reported injuries
7 +75%
Average feed gold grade
7.8g/t +5.4%
Average employee numbers**
687 -2.1%
Ore processed (‘000)
179,373 tonnes -5.4%
Gold recovery rate
95.3% +0.4%
43,782
45,956
2019
2018
1,399
1,265
2019
2018 174
1422019
2018
95.3
94.9
2019
2018
179,373
189, 695
2019
2018
687
702
2019
2018
Notes:* Includes one fatality in 2018** 2019 figure is as at 30 June 2019 vs. 31 December 2018. Figures are for TSG’s 100% owned subsidiary, ZAO Trevozhnoye Zarevo
7
4*
2019
2018
7.8
7.4
2019
2018
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Dividend Pay-out
30
Dividends – Established Track Record Financial Performance
5.5
4.0
2.3
1.0
5.7
1.0
2.0 21.5
0
5
10
15
20
25
2016 Special 2017 Interim 2017 Final 2018 Interim 2018 Special 2018 Final 2019 Interim Total Payout
US
$(m
)
Notes: Excludes £7.6m Share Buyback announced in May 2019
Trans-Siberian GoldA low cost, high grade gold producer in Russia 31
Achievements, Future Objectives & Guidance Summary
Operations
Finance
Shareholder Return
Corporate
• Refined gold production of 43,733oz (FY19)• Gold grades improving to 7.8g/t in FY19 (7.4g/t in FY18) • AISC $850/oz (HY19) • Approval of Mining Licence Extension in June 2018 to 2024• Discovery off promising new vein extension, Vein 25 North• Acquisition of Rodnikova mineral deposit • Energy subsidy extended
• Record revenue generation of $63.1m (FY19)• High EBITDA margin operation of 48% (HY19)• Low gearing (Net Debt/EBITDA 0.33x) (HY19)
• Committed to returning capital to shareholders • $21.5m paid in dividends 2015-2019• Favourable yield vs. peer group • $9.5m Share Buyback completed in Q2 2019
• Stable corporate structure• New Board & senior management appointments• Adoption of QCA Corporate Governance Code • Relationship Agreement with UFG signed • ESG initiatives and reporting
• FY20 production guidance of 38,000oz – 42,000oz • FY20 Total Cash Cost guidance of $780/oz-$860/oz• FY20 AISC guidance $900-$1000/oz• Ambitious exploration programme underway at Asacha• Scoping Study on Rodnikova in Q2 2020
Achievements Objectives & Guidance
• FY19 Results expected in May 2020
• FY20 base case guidance of $3m dividend +potential for special dividends, as appropriate
• Increased focus on corporate development
32Trans-Siberian GoldA low cost, high grade gold producer in Russia 32
Sustainability
Trans-Siberian GoldA low cost, high grade gold producer in Russia
A Responsible Corporate CitizenTSG is committed to sustainability and we strive to integrate sustainable development principles into our operating activities.
We seek to ensure that our activities do not harm our employees, local communities or the environment. Instead, we want to contribute tothe development of local communities, deliver long term value to our employees, and invest in environmental protection.
33
Linking Mining & Sustainable DevelopmentGoals
• The 2030 Agenda for Sustainable Development and theSustainable Development Goals (SDGs) represent the world’splan of action for social inclusion, environmental sustainabilityand economic development.
• The mining industry has the opportunity to mobilize significanthuman, physical, technological and financial resources toadvance the SDGs.
• The mining activity of TSG is located in a remote, ecologicallysensitive, less-developed area in which we create jobs, spurinnovation and bring investment and infrastructure.
• As a smaller company TSG incorporates only the most relevantSDGs into our business and operations where practicable.
Selection of issues where Mining mayinfluence Sustainable Development Goals
Source: Mapping Mining to the Sustainable Development Goals. UNDP White Paper July 2016
Sustainability
Trans-Siberian GoldA low cost, high grade gold producer in Russia
TSG and the UN Sustainable Development Goals: Our activities
34
SDG What we do How we do it
No Poverty • Pay taxes & royalties• Inclusive employment• Local procurement
• Publicly disclose payments to governments• Equitable access to employment opportunities• Provide training• Use local suppliers in supply chain
Good Health & Wellbeing • Champion health & safety• Prevent toxic emissions• Careful waste management• Encourage personal well-being
• Rigorous practices & reporting• Publish safety record• Test for substance misuse
Quality Education • Refresh & upgrade skills • Provide training
Clean Water & Sanitation • Conserve water• Monitor water quality
• Water treatment• Provide monitoring data to authorities
Affordable & Clean Energy • Improve energy efficiency • Closely monitor fuel consumption• Examine opportunities to reduce energy consumption
& costs
Decent Work & Economic Growth • Communicate job opportunities• Economic growth
• Provide skilled work• Positive regional economic contribution
Industry, Innovation & Infrastructure • Support local procurement • Utilise local suppliers• Share infrastructure
Reduced Inequalities • Equal opportunities employer • Attractive wages
Responsible Consumption, Production • Minimise resource use and waste • Lower grade ore blended into processing plant• Seek to minimise production of waste• Careful disposal of waste
Life below water • Water life included in impact assessments • Proper disposal of waste• Upgraded tailings facilities• Water monitoring• Provide monitoring data to authorities
Life on land • Preserve existing ecosystems • Baseline and follow-up environmental impact assessments
Peace, justice and strong institutions • Prevent conflict • Stakeholder engagement• Open and transparent with authorities
Sustainability
Trans-Siberian GoldA low cost, high grade gold producer in Russia 35
Contacts & Corporate Directory Trans-Siberian Gold
UK – Head Office Trans-Siberian Gold plcP.O. Box 278St. Neots, PE19 9EAUnited Kingdom+44 (0)1480 [email protected]
Company Contacts Stewart Dickson
+44 (0) 77 9969 [email protected]
Nominated Adviser & Corporate Broker Arden Partners125 Old Broad St, London EC2N 1ARUnited Kingdom+44 (0) 2076145900
Russia – Moscow Office Trans-Siberian Gold Management, LLCOffice 1, 45th FloorFederation’s East Tower (Vostok)Presnenskaya Naberezhnaya, 12123112 MoscowRussian Federation+7 (495) 899 [email protected]
Financial PRHudson Sandler25 Charterhouse Square London, EC1M 6AEUnited Kingdom+44 (0) [email protected]
TSG LinkedInTSG Website
36Trans-Siberian GoldA low cost, high grade gold producer in Russia 36
Appendices
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Asacha Gold Mine – Development
Development Timeline
37
Appendices
1973 1994 1996 – 98 2001 2002 2004 – 05 2007 – 10 2008 2011
Asacha deposit discovered
TVX Gold Inc (TVX) acquired 50% stake
TVX exploration work
TSG acquired TVX 50% stake
TSG increased stake to 90%
TSG exploration drilling of Main Zone
TSG increased stake to 100%
Mining development work commenced
Mining commenced
1986 – 90
CKGE (1)
exploration work
1990
Mining licencegranted
Plan OperateBuild
2020
Updated JORC resources estimate
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Board of Directors
Age Tenure (yrs)
Charles Ryan 52 10
Alexander Dorogov 50 2
Eugene Antonov 45 <1
Robert Sasson 55 6
Florian Fenner 49 2(1)
Lou Naumovski 63 2
Stewart Dickson 42 2
Continuous Improvement
Board re-organisation in 2017
Planned CEO succession in 2018
COO Board appointment in 2019
Improved shareholder communication
QCA Corporate Governance Code adopted September 2018
Joined Union of Gold Producers of Russia November 2018
Relationship Agreement with UFG signed December 2019
Response to Church of England Pensions Board and Swedish Council on Ethics for the AP Funds and backed by the UN-supported Principles for Responsible Investment re. Tailings Dam Management in August 2019
38
TSG – Corporate Governance – Practical Developments Appendices
(1) Previously a Non-Executive Director of the Company between 2006 and 2013
ü
ü
ü
ü
ü
ü
ü
ü
Trans-Siberian GoldA low cost, high grade gold producer in Russia
2018 Global Gold Production Official Gold Reserves
39
Mining Industry – Russia – Attractiveness Scores
Russia – Leading Gold Mining JurisdictionAppendices
Source: World Gold Council Source: World Gold Council
Sources: Fraser Institute
52.3560.14
65.86 69.02 67.5174.23
48.67 48.3652.15
64.2260.44
67.71
2013 2014 2015 2016 2017 2018
Investment Attractiveness Policy Perception
050
100150200250300350400450
0.0 1,000.0 2,000.0 3,000.0 4,000.0 5,000.0 6,000.0 7,000.0 8,000.0 9,000.0
India
Japan
Switzerland
China
Russia
France
Italy
IMF
Germany
United States
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Key Facts Gold Production
40
Economy (GRP Structure, 2013)
Kamchatka – Far East RussiaAppendices
Source: www.eastrussia.ruSource: www.kamgov.ru
Source: www.investinruss ia.r u
Kamchatka Region (oz.)
TSG(oz.)
2017 214,831 36,714
Q1 2018 39,803 8,100
Area 464.3 km2
Distance to Moscow 6,776 km
Administrative Centre Petropavlovsk-Kamchatsky
Population 319,900
17.4
12.2
10
9.89.6
8.2
7.2
5.7
5.6
4.83.2
6.3State AdministrationFisheries & AquacultureHealthTradeManufacturingTransportPower generationReal estateEducationConstructionAgricultureOther
Kamchatka peninsula known for abundant hydrothermal activity and rich underground mineralisation
Trans-Siberian GoldA low cost, high grade gold producer in Russia
Kamchatka - Lower Operating Energy Costs
• 8th December 2015 – Russia’s President orders to develop anenergy support mechanism that reduces energy prices forindustrial consumers in the Far Eastern Federal District. The FarEast has historically suffered from significantly higher energycosts due to technologically isolated territorial electric powersystems.
• The mechanism of ‘levelling tariffs’ was devised whereby thedifference between the set tariff and the cost of energy togenerators is being compensated by consumers in the Europeanpart of Russia, the Urals and Siberia by means ofa surcharge.
• 1st July 2017 – the Federal Law on the Equalization of ElectricityTariffs came into force. The energy tariffs in the Far East areeffectively reduced by distributing the increased tariffs over thewhole territory ofRussia.
• The end-user tariff for 2017 was set at Rub 4/kWh; for 2018 it wasset at Rub 4.3/kWh; for 2019 it was set at Rub 4.69/kWh, keepingthe price for electricity in the Far East at the national average ratein Russia.
• Potential increase of surcharge to incentivize investment in FarEast is currently under discussion.
41
Appendices
Chukotka Magadan region Kamchatka Yakutia (Sakha) Sakhalin
Tarrif for beginning of 2017 2018 tariff
10.98
6.87
5.04
6.42
4.7-57% -37% -14% -33%-9%
Rub 4.3/kWh
Source: RusHydro
Corporate PresentationMay 2020