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Nickel Asia Corporation

Nickel Asia Corporation. Presentation on NAC PSE: NIKL RIC: NIKL.PS BBG: NIKL.PM. NAC at a glance. Listed in the PSE on November 22, 2010 Largest nickel mining company in the Philippines and long operating history of mining nickel laterite since 1977

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Nickel Asia Corporation

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  1. Nickel Asia Corporation Presentation on NAC PSE: NIKL RIC: NIKL.PS BBG: NIKL.PM

  2. NAC at a glance • Listed in the PSE on November 22, 2010 • Largest nickel mining company in the Philippines and long operating history of mining nickel laterite since 1977 • 4 operating nickel mines, 5 nickel exploration properties, and 4 recently acquired exploration properties for gold and copper • One of the largest supplier of lateritic nickel ore globally • Substantial proved and probable ore reserves and long average mine lives • Successful downstream processing with a 10%* interest in the world class Coral Bay HPAL facility • Replicate successful technology with a 22.5% interest in the new Taganito HPAL facility to underpin earnings growth • Strategic relationships with two key shareholders, Sumitomo Metal Mining (Sumitomo) and Pacific Metals (PAMCO) *subject to final SEC approval of property dividend from 60%-owned subsidiary, Rio Tuba Nickel Mining Corp, in the form of Coral Bay shares

  3. Leading laterite ore producer with a strong reserve base 2012 Global Top 5 Laterite Ore Producers Total Mineral Resources and Ore Reserves 1,2,3 Source: NAC, as of 31 December 2013 • Notes: • 1 Mineral resources and ore reserves for four operating mines • (Rio Tuba, Taganito, Cagdianao, Taganaan) • Includes subsidiaries that are not wholly-owned by the Company • Report prepared under the Philippine Mineral Reporting Code Source: NAC Study We are one of the largest lateritic ore producers in the world. We have substantial reserves to support our dominant position and supply feedstock to our downstream processing facilities

  4. Overview of our Mines Cagdianao Mine Rio Tuba Mine Taganito Mine Taganaan Mine Note: 1 Remaining mine lives from January 1, 2014, calculated based on December 31, 2013 ore reserves and estimated annual nickel ore shipments (and/or deliveries) for each mine We have a proven track record in successfully operating mines in the Philippines. Most of our mines have significant exploration potentials.

  5. Manicani Mine • MPSA granted on August 13, 1992. • MPSA suspended by DENR on November 18, 2002 due to social issues. Operations put on care and maintenance status since then. • On July 1, 2014, DENR authorized the disposal of nickel ore from the stockpile, which was the result of operations in the late 1990’s. • Based on Company records, which are still subject to further drilling and testing for validation, available resources from the stockpile are: • Actual shipments could commence in 1 to 2 months.

  6. Our Investment in Downstream Processing Plants: Coral Bay Coral Bay Nickel Corporation (CBNC) • Pilot plants to test for the commercial recovery of Scandium and Chromite to be commissioned later this year * subject to final SEC approval of property dividend from 60%-owned subsidiary, Rio Tuba Nickel Mining Corp, in the form of Coral Bay shares

  7. Our Investment in Downstream Processing Plants:Taganito HPAL Taganito HPAL Nickel Corp. • Civil works have started for the construction of a pilot plant to test for the recovery of Hematite

  8. Our Investment in Downstream Processing Plants: Taganito HPAL We will derive from the THPAL facility: • Additional limonite ore sales (+4.5m WMT) • Direct P&L recognition of investment income from 22.5% interest October 2010 January 2012 April 2013 Present • Sumitomo is one of the few companies with the technological know-how and proven execution capability to successfully develop HPAL facilities

  9. Product portfolio breakdown 9

  10. NAC sales tonnages • From 1977 to 2004, annual sales volume averaged 880 thousand WMT • In 2005, CBNC commenced commercial operations • From 2005 to 2007, sales volume grew at an effective annual rate of 65% • In 2008, following the global financial crisis, volume down by 53% • From 2008 to 2013, sales volume grew at an effective annual rate of 32% 6,459 3,448

  11. Favorable geologic conditions at all of our four mines, with near-surface open-pit deposits Mining does not require explosives, chemicals or complex waste handling Ability to sell limonite ore and lower grades of saprolite ore to the China NPI market and Coral Bay HPAL enables lower unit cost per WMT of nickel ore sold All four operating mines are located within 3 to 7 km from the tidewater loading area Rehabilitation of our mining areas is a simple and straightforward process Low cost nickel producer

  12. Financial highlights We are one of the most profitable nickel miners in the world. Revenue (Php MM) EBITDA1 (Php MM) Net Income2 (Php MM) -6% 65% -16% -24% 104% 242% Source: Company data • Notes: • EBITDA is calculated as total revenue less costs and expenses (before depreciation and amortization of RTN LT stockpile) plus other income from RTN’s ancillary services • Represents net income attributable to equity holders adjusted for derivative transactions gains/losses. Derivative transaction gain was Php519 MM in 2007, while derivative transaction losses were Php1,417 MM, Php79 MM, and Php47 MM in 2008, 2009, and 2010, respectively.

  13. Historical Dividend Payout and Payable (since 2010 IPO) * Adjusted for the effects of the 50% and 25% stock dividends issued on September 2012 and July 2013, respectively. ** Adjusted for the effect of the 25% stock dividend issued on July 2013. • Our dividend policy entitles holders of Shares to receive annual cash dividends of up to 30% of the prior year’s recurring attributable net income based on the recommendation of our Board of Directors.

  14. Nickel Asia Corporation EO 79 ON MINING POLICIES

  15. Impact of Presidential Executive Order No. 79 on Mining Policies • Moratorium on new mining permits until higher taxes are legislated • No impact on existing operations. • No impact on exploration permits/activities. • Will delay conversion of exploration permits to mining permits. • Moving forward, amendments to tax structure are expected to be implemented in 2014-15. • Impact on higher taxes • Three of four NAC mines operating within Mineral Reservations will most likely not be significantly affected by higher taxes. • Currently our four mines are paying the following tax rates based on gross revenue: * under the Surigao Mineral Reservation Act

  16. Nickel Asia Corporation INDONESIAN ORE BAN

  17. Nickel Ore Flow – 2013 China’s Stainless Steel Production 510 MT China’s Importation of Nickel Ore 72% to NPI production 28% to stockpile

  18. Nickel Ore Flow Outlook – 2014 China’s Importation of Nickel Ore China’s Stainless Steel Production 39% (419kMT) from NPI World Nickel Consumption and Supply 1 Computed from 2013 consumption + 96 kMT growth in China’s stainless steel production. 2 Computed from 2013 supply + 50 kMT from new projects – 90 kMT reduction in NPI production.

  19. Price Increase Post Indonesian Ni Ore Ban • Ore prices to Japan are now benchmarked to China prices • Shipment volume to hit 17 million WMT in 2014 due to demand for 1.4% and 1.2% ore grades • Hi Fe ore is also used for NPI production

  20. Shipment seasonality by quarter

  21. Nickel Asia Corporation END

  22. Nickel Asia Corporation APPENDIX

  23. NAC Shipments Profile (Nickel Ore in kWMT) Source: Company data

  24. NAC Shipments Profile (Nickel Ore Revenue in Php Million) Source: Company data

  25. Nickel Forecasts Source: Energy & Metals Consensus Forecasts by Consensus Economics Inc. 2012 (June 2013)

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