MineSense Technologies Ltd. Presentation to CMIC Mining Innovation Round Table: Shovel-based Mineral Telemetry Systems for Ore Routing Decision Support

Leading Resource Business Optimization Solution for Mining Industry Bulk Sensing, Data Analytics and Decision Support in Mining Reject Waste from Ore Recover Ore from Waste Decrease Operating Costs (25%), and Increase Revenues (15%) Multi Billion $ Potential Market Revenue Generating Customer-Funded Pilots Near-term Horizon Raising Series B Funding Completing Product Development Increasing Market Penetration

Colossal Industry Large dollar flow: However: Low margins +6 Billion Tonnes of Rock Moved +$1.0 Trillion Revenue Base +$100 Billion Capex Spend +$150 Billion Energy Spend However: Low margins Historically Low Levels of Automation Labouring under misconceptions

And, Facing a Tough Future… Therefore desperately seeks new efficiencies… Refs: Walters et al, 2013; www.minecost.com/historical; www.mundi.com; ABS CAT 5620; 2011

Opportunity: Unrecognized Heterogeneity within Ores & between Ore Types can be exploited to Create Value Ore Grade Heterogeneity exists within orebody… …and within ore types from the same orebody. Ore Ore

The Solution Sensors High capacity, low cost Low switching cost Simple process integration > Extraction > Recovery Adds 15-50% to NPV depending on application Opportunity Shovel Sense SortOre Product Shovel Bulk (70T) 5000T/hr Conveyor Belt Semi-Bulk (<100kg) 2000T/hr Conveyor Belt Particle (<1kg) 500T/hr Location Scale Targeted Capacity Integration of Sensors & Data Analytics with Material Handling Suite Enables Smarter Production

Groundbreaking Sensor Tech Measures Value Sensor Technologies: HFEMS Detects & Reports Metallic Content of Conductive, Magnetic Ore Low-cost, high-capacity waste rejection HSXRF Proprietary algorithms for chemical analysis Multi-stage, multi-sensor system (Ni, Fe, Cu, Al…) HFEMS coil, with mineral * MineSense Patent plus new modalities e.g. LIBS, NIR being added Groundbreaking Sensor Tech Measures Value

Integration with Shovel Buckets – Sorting at the Rock Face Armoured Control and Power In-cheek Sensors Current Status 70yd3 shovel system (500t/hr) Field testing BHP 2014/15 Multi-Sensor telemetry integrates with mine planning/scheduling Scalable to 5000 t/hr

And Integration of Bucket Measurements with Short Range Mine Planning & Dispatch Control System

With Resource Business Optimization Software at the Heart Monitor Evaluate Decision Support Intervention Optimization VIASIM is a technoeconomic simulator for mine operations Locally hosted or cloud-based Models and simulates a wide variety of mine flowsheets and allows comparison of values with operational scenarios Geared to add custom 3rd party process models over time Connected to value telemetry via the www, VIASIM can be used to perform data analytics and provide decision support to mining customers Big Data and Industrial Analytics Optimize the Process

BHP Pampa Norte Case Study 65,000 tpd open pit copper mine in Region IV, Atacama Chile Reserves: Supergene & Transition 1117Mt @ 0.59% CuT @ 0.4% Cu cutoff Mine life = 8 years // hypogene zone uneconomic at current grade, ops cost & price 16 x 16m block model suggests some heterogeneity with grade ranges of 0.03% Cu > 3.6% Cu Study Objectives: Improve understanding of heterogeneity Take samples & measurements of end-members Input to MRM, Evaluate Build & test pilot telemetry system Build & test operating telemetry system Integrate with MES CuT 2.10 0.03 3.60 1.20 0.60

1. Improve Understanding of Orebody Heterogeneity 16 x 16 block model 1117Mt @ 0.59% Cu Broken down 12x12, 8x8, 5x5 down to 2m drillhole composites to understand variance 6 x 200kg samples taken of each ore type and analyzed by particle New grade/tonnage distributions developed

Results – by block 15-30% value enhancement (grade and total contained Cu) revealed through re-classifying blocks at 2mx2m composite level Head grade increases from 0.59% Cu to 0.65% Cu through enhanced selectivity @ 5m x 5m, even higher at 2x2 Cutoff Grade (CuT%) CuT (%) Tonnage (Mt) 5x5x5 model 20x20x15 model - 0.24 0.25 4,764 4,774 0.1 0.38 0.37 2,809 2,912 0.2 0.48 0.46 1,989 2,080 0.3 0.56 0.52 1,461 1,571 0.4 0.65 0.59 1,033 1,117 0.5 0.75 0.68 691 692 0.6 0.86 0.79 451 395 0.7 0.98 0.90 287 220 0.8 1.10 1.02 189 123 0.9 1.23 1.14 122 72 1.0 1.37 1.26 83 45 Thomas et al, 2012 Espinoza et al, 2011

Results – by particle 6 x 200hg samples taken overall Average head grade of samples 0.3% – 1% Cu 500 particles weighed and scanned individually 60-80 individual assays to calibrate sensor results Grade distribution 0.05-4% Cu 42-55% by mass below 0.3% Cu cutoff; 67-70% by mass below 0.4% Cu reserve cutoff Represent end-members of block analysis

2. Identification Phase – Economic Analysis Reduce cutoff to 0.3% from 0.4% Increase reserves by 300Mt Separation of ore/waste at 5x5m scale with 80% efficiency Head grade increases by 8% Contained Cu remains constant, recovered Cu increases $400M revenue increase $25M capex (4 trucks & 2 FELS) 8% OPEX Increase ($75M) $300M increase in NPV at Pampa Norte

3. Trials – ShovelSense Mk0 Resilience Platform Deployed in Chile

Ultimate Vision: Shovel Systems Integrate with SMART IPCC® for Complete System: To waste

4. Next Steps MkI trial at Pampa Norte: measurement and reporting at bucket scale Integration of MkI system via mobile device to operator Integration of MkI system with MIS (mine planning & fleet management systems) Seek additional shovel trial customers Seek underground system trial customers

Conclusion Commercialization of Industrial-Scale Sensor-based Bulk Sorting Solutions for Mining Industry Multi-billion $ Opportunity Solution-, not technology-focused approach Collaboration with End Users (BHP, others) for Product Development Collaboration between MineSense and Shovel OEMS to deliver ShovelSense systems via Channel Collaboration with OEMS (ABB, GE etc) for Pit:Port integration also being explored Discussion and next steps?