FIRST BAUXITE CORPORATION (FBX) ANNUAL GENERAL MEETING May 25, 2016 TSX-V: FBX
Disclaimer This document is intended to be strictly informational. The Company reserves the right, at its sole discretion, to modify all or any part of this document without any liability or notification to any person. In no event shall the Company, its directors, officers, employees, agents or advisors be liable for any damages of any kind arising out of or relating to the use of this document, including, but not limited to, any of loss of income or profits, incidental, special, indirect or consequential or any similar losses or damages, whether or not advised of the possibility of damages, and on any theory of liability, arising out of or in connection with the use of the information contained herein. This document does not constitute, nor should be construed as, an offer or solicitation of an offer for the purchase of any securities of the Company, nor investment advice or an offering memorandum. Readers should review all of the Company s public disclosure. No securities commission or similar authority or stock exchange in any jurisdiction has in any way passed on any of the information contained herein. Certain information contained herein has been prepared by third-party sources, and such information has not been independently audited or verified by the Company. Certain statements contained herein constitute forward-looking statements. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business of the Company. Forward-looking statements include the Company s strategy, priorities and plans for the Bonasika project. These forward- looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, the reproduction of test results on an industrial scale or in the field; the effect of capital market conditions and other factors on capital availability; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; continuing support of the Government of Guyana for the project; changes in project parameters as plans continue to be refined and other risks more fully described in the Company s public disclosures, available on SEDAR at www.sedar.com. Readers are cautioned not to place undue reliance on the forward-looking statements contained herein. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Page 2
Board FBX Overview Larry Washow. Non-Executive Chairman. - Company Director and previously CEO of AMCOL International Corp. Alan Roughead. President, CEO and Director. - Previously CEO of Queensland Magnesia Pty Ltd. Lee Graber. Non Executive Director. - Director of Pacific Road Capital Management Pty Ltd. Mason Hills. Non Executive Director. - Partner of Resource Capital Funds. Management Alan Roughead. President, CEO and Director. Bill White. Chief Financial Officer and Corporate Secretary. - Previously CFO of US Silica Holdings Inc. Page 3
FBX Overview Market Cap (End Mar 2016): Cash Liquidity (End Mar 2016): Ownership (Undiluted basis): - RCF 46% - Pacific Road 11% C$4.7M $11.9M FBX Stock Price (C$) Page 4
FBX and Guyana GUYANA Page 5
FBX and Guyana Bauxite Deposits Bonasika Proppants Bauxite Refractory Bauxite Refractory Mullite Chemical Bauxite High Quality High Alumina High Titania Low Iron Low Silica Low Alkalis Bosai Linden Mine Rusal s Kwakwani Mine Bonasika Deposits Page 6
FBX Bonasika Deposits Location River Access Bulk Shipping Capability 70km From Georgetown Labour/Infrastructure Resource High Quality 30 Years Reserves Open Cut Mining Simple Beneficiation Guyana Stable Government English Language English Law Page 7
FBX Fiscal 2015 Highlights Nov 2014. Government of Guyana ( GoG ) granted a one year extension on construction commencement date to end Jan 2016. Dec 2014. Strategic review completed. Change in project scope: - Bauxite mining and beneficiation taking place in Guyana. - Bauxite calcining and sintering taking place in the USA. - Plant technology revised from shaft kilns to a rotary kiln - Switching market focus from refractory bauxite to ceramic proppants. Dec 2014. $4M convertible note financing with RCF for: - Completing a feasibility study ( FS ) on the changed project concept. - General working capital. Jun 2015. Positive FS results announced: - Verified the financial feasibility of the project. - Established a reserves life of 30 years. - Generated positive ceramic proppant testwork results. Page 8
FBX Fiscal 2015 Highlights Aug 2015. NI 43-101 Compliant Technical Report filed. Oct 2015. $15M convertible note financing with RCF for: - Initial detailed design and engineering, permitting and construction activities for the mine plant in Guyana. - Further analysis of the ceramics proppant market. - Mining a bulk sample to manufacture large scale ceramic proppant samples in an established plant for market tests in select oil and gas wells. - General working capital. Oct 2015. Commenced bulk sample mining in Guyana for shipment to an offshore ceramic proppant plant. Dec 2015. GoG granted a further two year extension on construction commencement date to end Jan 2018. Page 9
FBX Fiscal 2016 YTD Highlights Jan 2016. Engaged Technical Marketing Consultant to assist in product and market development. Mar 2016. Closed on RCF $15M financing. Restructured all outstanding notes to common terms and common maturity date Aug 2017. Mar 2016. Completed bulk sampling mining programme in Guyana. 91,000 tonnes mined producing 17,200 tonnes of Direct Feed Bauxite ( DFB ) and 14,100 tonnes of Regular Grade Bauxite ( RGB ). Volumes consistent with FS geological model. Apr 2016. Shipped 2,400 tonnes DFB and 100 tonnes RGB to offshore ceramic proppant plant for industrial scale production trial. Chemistry consistent with FS geological model. May 2016. Completed upscale testwork with offshore ceramic proppant plant. Results confirmed superior crush strength/conductivity properties of FBX ultra high strength proppant ( UHSP ) results of earlier testwork. May 2016. Finalised short-term toll production agreement with an offshore ceramic proppant plant. Page 10
FBX Bonasika Project Guyana Production Trial Simple open cut mining. No drill and blast. Page 11
FBX Bonasika Project Guyana Production Trial Clear delineation of ores. RGB ore (upper darker colour bench). DFB ore (lower lighter colour bench). Page 12
FBX Bonasika Project Guyana Production Trial Stockpiled DFB ore drying under tarpaulins. Page 13
FBX Bonasika Project Guyana Production Trial Bagged DFB ore awaiting transport to Georgetown Port. Page 14
FBX Bonasika Project Guyana Production Trial Barge with bagged DFB ore arriving at Georgetown Port. Page 15
FBX Bonasika Project Guyana Production Trial Containers being loaded at Georgetown Port. Page 16
FBX Metallurgical Testwork Two leading ceramic proppant producers in USA have been developing high strength, high conductivity, high value UHSP products over the last 3-4 years. This has been in response to requirements from oil majors for a stronger ceramic proppant for use in offshore high pressure, high temperature, deepwater applications in the Gulf of Mexico. Specifically targeted in the Lower Tertiary GoM region with closure stresses of 15-20kpsi and temperatures of 220-500ᵒF. Laboratory proppant testwork using conventional dry process technology indicated Bonasika ore could produce a UHSP superior to the products being developed in the market place. Larger upscale testwork was conducted in Germany. Independent recognised laboratory test results confirmed the earlier testwork. Believed related to unique characteristics of Bonasika ore. High alumina, high titania, low silica, low alkalis. Page 17
FBX Metallurgical Testwork FBX UHSP-11. Page 18
FBX Metallurgical Testwork Conductivity (md/ft) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 FBX UHSP-11 Conductivity 0 6K 8K 10K 12K 14K 16K 18K 20K Stim-Lab 4 UHSP-11 (20/40) 4,712 4,438 3,917 3,362 2,539 2,039 1,622 1,308 Stim-Lab 2 UHSP-11 (20/40) 5,116 4,472 3,897 3,280 2,735 2,167 1,747 1,372 PropTester 1 UHSP-11 (20/40) 5,680 5,138 4,411 3,333 2,768 2,353 1,780 1,298 PropTester 2 UHSP-11 (20/40) 5,764 5,169 4,073 3,709 2,788 2,586 1,970 1,494 Independent test results on the upscale testwork were consistent. Page 19
FBX Metallurgical Testwork FirstBauxite UHSP 11 Competitor 1 UHSP Competitor 2 UHSP Mesh 20/40 30/60 25 V Sphericity& Roundness Specific Gravity Crush Fines 15K PSI Crush Fines 20K PSI 0.9 0.9 0.9 0.9 3.65 3.65 3.47 3.65 2.5 0.8 1.0 <4.0 4.5 2.0 4.0 <7.0 Page 20 On physical properties, UHSP-11 compares well with competitive products.
FBX Metallurgical Testwork Conductivity (md/ft) 8000 7000 6000 5000 4000 3000 2000 1000 FBX UHSP-11 vs Market UHSP Conductivity 0 6K 8K 10K 12K 14K 16K 18K 20K Competitor 1 UHSP (25) 3,400 2,900 2,475 2,050 1,650 Competitor 2 UHSP (V) 4,640 4,000 3,370 2,800 2,300 1,795 PropTester 2 UHSP-11 (25) 7,236 6,108 5,159 4,674 3,779 3,573 2,728 2,344 On conductivity, UHSP-11 was superior to competitive products. Page 21
FBX FS Metallurgical Testwork UHSP-11 microstructure. Reinforcing rod like formation during sintering. Mechanical effect is similar to reinforcing bar in concrete. Aluminum titanate is formed during sintering. Attributable to Bonasika mineralogy: - High alumina - High titania - Low silica - Low alkalis Page 22
FBX 2016 Priorities/Work Programme Complete the UHSP production trial in an offshore ceramic production facility to confirm the laboratory and upscale testwork results can be replicated on an industrial scale basis. Reach agreement with oilfield service companies and E&P operators to conduct market field trials. Further define the UHSP market and growth potential. Commence initial detailed design and engineering, permitting and construction activities for the mine plant in Guyana. Recent $15M RCF financing will fund the business through the 2016 priorities/work programme and into 2017. Page 23