The Munali Nickel Mine, ZambiaMay 2015

Forward Looking Statements

Except for historical information contained herein, this presentation may contain forward looking statements

including but not limited to comments regarding predictions and projections. Forward looking statements address

future events and conditions and therefore involve inherent risks and uncertainties. Although Consolidated Nickel

Mines believes that such expectations are reasonable, there can be no assurance that such expectations will

prove to be correct, and therefore actual results may differ materially from those currently anticipated in such

statements. You are cautioned not to place undue reliance on any such forward looking statements, whether

made in this presentation or in any question and answer period related to this presentation.

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Munali Nickel Mine – Current Status

THE MUNALI ASSET

• Established JORC/NI 43-101 Reserves & Resources

• Fully developed and dewatered mine

• All operational permits remain in place for restart

• Strong support from Government & local communities

• Infrastructure in place (power, road and rail)

• Key personnel still employed

• Offtake currently un-committed

KEY PROJECT TARGETS

• Targeting low cost 45-50kt/pa Ni concentrate over 7yr LoM

• Recovered metal: 4,750tpa Ni, 690tpa Cu, 230tpa Co, 7,500oz PGM

• Estimated US$39.0m to start-up in 12 months ($24M if mining fleet is leased)

• Target annual revenue of US$65.0m 12-24 months after start-up

• Target annual EBITDA of US$20-25m for 7 years @ US18,700/t

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Proven & Probable Reserves (Tt March 2015)

Nickel 39,000 t

Copper 4,800 t

Cobalt 2,020 t

Platinum 21,600 ounces

Palladium 49,000 ounces

Munali Nickel Mine85km South of Lusaka

Feasibility Study – Resource and Mining

RESOURCE

• New Resource Model completed

• Ordinary Kriging

• Resource categorized mostly as Measured & Indicated

• 57,1kt Nickel Metal

MINING

• Mine is dewatered and ready to operate

• Complete review of mining plan

• Mining method optimized to maximize extraction

• Sublevel open stoping above 845m level

• 5m pillar left at 820m level

• Cemented Rock Fill from 620m level upwards

• 4 Months to production post equipment delivery

• Owner operated, lower mining costs

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Mining Reserve (Tt 2015)

Proven & Probable 4.1Mt @ 0.96% Ni

Nickel Metal 57.1 kt Ni

NI 43-101 Resource Statement (Tt March 2015)

Measured & Indicated 5.648Mt @ 1.01% Ni

Inferred 0.360Mt @0.84% Ni

Total 6.008Mt @ 1.00% Ni

Feasibility Study – Process Plant Testwork & Optimisation

METALLURGICAL TESTWORK

• 1 Tonne Sample from 3 open levels

• WAI (UK) & SGS (RSA) completed DMS and Flotation

• WAI (UK) continuing with optimization

IMPROVED RECOVERY, CONCENTRATE GRADE & QUALITY

• Head grade improved through DMS

• Reduced overall throughput as result of DMS

• MgO rejected in DMS tails

• Retention time increased through the flotation circuit

• Higher grade low MgO concentrate produced

FUTURE UPSIDE

• Cleaner tails regrind to improve grade and recovery

• Unused grinding capacity (low cost capital expansion)

• Copper concentrate pre-flotation to improve payability of nickel conc and copper

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Testwork Highlights

DMS 1%-1.8% upgrade

Overall Ni Recovery 74%

Concentrate Grade 10 – 12% Ni

8.0 g/t PGM

<5% MgO

Feasibility Study – Concentrate Offtake and Logistics

CONCENTRATE OFFTAKE

• Offtake open for tender

• Concentrate offtake and destinations identified

• 4 Logistics Companies engaged for Concentrate

LOGISTICS

• Road – 85 km South of Lusaka on new sealed roads

• Rail – Siding 20km from site

• Cement – Lafarge plant at Chilanga 40km

CONCENTRATE DESTINATIONS

• Walvis Bay 1,960 km

• Beira 1040 km

• Durban 2,160km

• Dar es Salaam 2,050 km

• BCL 1,150 km

• Bindura 650km

• RSA Smelters 1,750 km

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Feasibility Study – Nickel Costs Curves vs. Munali – 1st Quartile C1

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MunaliC1=$4.5/lbsNi

MunaliC3Spot@$14,500=$6.1/lbsNi

MunaliC3Base@$18,500=$6.8/lbsNi

CurrentPrice

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Cummula vePercen leProduc on

2015NickelCostCurves(C1,C2,C3,TotalCashCosts-NETofCredits)

C1CashCost C2Cost C3FullyAllocatedCost TotalCashCost($/lb) CurrentPrice

Tt FS Lease + Taxes ZG 2014 ZG Current ZG Proposal CNM Proposal

Mineral Royalty Tax 6% 8% 9% 0%

Corporation Tax 30% 0% 30% 30%

Labour Direct $43.29 m $43.29 m $43.29 m $43.29 m

Mine Consumables $108.02 m $108.02 m $108.02 m $108.02 m

Government Labour PAYE $18.55 m $18.55 m $18.55 m $18.55 m

Government Royalty $22.85 m $30.46 m $34.27 m $0.00 m

Government Income Tax $20.23 m $0.00 m $17.74 m $25.22 m

Government Withholding Tax $4.48 m $4.48 m $4.48 m $4.48 m

Infrastructure & Community $12.08 m $12.08 m $12.08 m $12.08 m

Investor Return (IRR) 12.51% 16.36% 8.45% 20.53%

The Mine Start Up – Implication of Zambian Tax Scenarios

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BASIS – TT FEASIBILITY STUDY PLUS

• Variable Tax Scenarios @ $18,700 per tonne Nickel

• Capital Allowances (Rough assumptions for depreciation)

The Mine Start-Up – Key Activities Post Finance Completion, Pre-startup

KEY ACTIVITIES INCLUDE:

• Albidon Tax resolution and potential acquisition of Albidon Ltd.

• Tax and Royalty rate negotiations with Zambia and Jinchuan

• Complete offtake agreements

• Complete mining fleet financing package

• Key leadership appointments (Re-validate operations structure, interview all key personnel and make key decisions about staff appointments

• Compete detailed 18 month operating and cash flow budget

• Complete all re-licensing requirements to start operations.

• Complete Mine site level bonus program.

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Blue Sky – Munali Gabbro Complex Near Mine Exploration Opportunity

• Significant large scale EM anomalies have been identified around the Munali Gabbro Complex (MGC) and are known to be coincidence with significant sulphide nickel mineralisation based on previous drill hole information

• CNM controls the entire know footprint of the MGC

• Extensive previous exploration has identified significant mineralisation in drilling (including Voyager Inferred Resource) that requires follow up to convert to Reserves and Resources

• Exploration to commence after achieving positive cashflow

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Local Community Support

SCHOOL AND CLINIC

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SOCIAL PROGRAMME

• Resettlement of 55 households out of mining area

into new homes

• 500 pupil school and staff houses completed and

handed over to Ministry of Educations

• Clinic houses completed and being handed over to

Ministry of Health

• Over $4m spent to date

• Further programs agreed with local community

Munali Nickel Project – Summary

• Completed NI 43-101 Base Case Feasibility Study

• Identification of upside programs and strategies to improve on current base case

• Leveraging off US$180m historical spend on mine, plant and infrastructure at a zero purchase price

• Strong Government support with all key mine infrastructure and permits in place

• Key technical operating management in place at site

• Short-run to cash-flow positive driven by low start-up Capital requirement

• Operating costs structured (e.g. Royalties) to protect project at deflated nickel prices, whilst maximizing project returns during periods of increased nickel prices

• Expert project development team with African operating experience, proven mine restart capabilities and a track record of delivering superior shareholder returns

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Outstanding Points

GOVERNMENT POLICY

• Stability on taxation, serious concerns from investors on whether the required returns can be achieved with

the tax variations

• Export tax on nickel concentrates waived, no nickel smelting capacity in country, the suggestion that export

tax’s should be increased to encourage investment further raises concerns on investment stability

• Investment incentives required, investment should be encouraged rather than forced “carrot not stick” as

investment is discretionary

MUNALI MINE

• Plant rehabilitation and modifications to be completed by year end

• Mining and production to restart in January subject to nickel price improvement

WE CAN’T CONTROL THE PRICES, BUT WE CAN CONTROL THE COSTS AND DELIVER VALUE THROUGH OPERATIONAL IMPROVEMENT, EXPLORATION, ORGANIC EXPANSION WITH STABLE GOVERNMENT POLICIES

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CONTACT

1919

CONSOLIDATED NICKEL MINES Ltd

180 Piccadilly

London

W1J 9HF

United Kingdom

Name Position Telephone email

Simon Purkiss Chief Executive Officer +44 779 883 6225 spurkiss@cnmplc.co.uk

Craig Bailey Chief Operating Officer +44 784 174 4181 cbailey@cnmplc.co.uk