Zelpy 1363 (Pty) Ltd in business rescue and Koos van Rensburg appointed as

Business Rescue Practitioner by the Northwest Province High Court .

 EXECUTIVE SUMMARY

ZELPY 1363 (PTY) LTD is the holder of a Mining Right for gold that was granted 20/09/2017, north
west of Klerksdorp.

This presentation supports the view of combining gold and diamond resources in order to support a feasible plan to
rescue and turn around the business of Zelpy 1363 (Pty) Ltd. This joint venture will create a new highly profitable
mining company, capable of settling the existing debt as well as the raising of capital for future ventures.

Projected cash flows indicate potential for attractive returns.

This new venture will also supply a guarantee to the BRP for settling the creditors of
Zelpy 1363 (Pty) Ltd and ensure the erection of a gold plant to produce between 40 and
50kgs of gold from a production of 25,000 tons per month at 3g/t.

Advantage: No time delay of Sect 11 submission and completion before

creditors paid, mine operations can commence immediately.
 ZELPY 1363 (PTY) LTD (BUSINESS RESCUE)

• THE MINING RIGHT OF ZELPY 1363 (PTY) LTD IS ON THE KAFFERSKRAAL FARM
400IP IN THE KLERKSDORP AREA.
• GRANTED MINING RIGHT NUMBER: NW30/5/1/2/2/10088 MR
• WELL POSITIONED FOR OPEN PIT MINING.
• Total Area of Mining Right is 4,686 Ha
• 6.5 m tons available on drilled area, 180Ha
• Grade of 3.06 g/t determined from drilled core samples
• THIS WILL BE THE INITIAL TARGET AREA ON GOLD FOR THE COMBINED
BUSINESS PLAN.
• MINING CAN START IMMEDIATELY AFTER EXECUTION OF MINING RIGHT.
 G O L D R E S O U R C E - K A F K R A A L E X P LO R AT I O N

35 Boreholes were sunk over 3 reefs. This provides a

confidence level of 85% on the resource of the
investigated area.

Indicated and Inferred Resources amount to 6.52 million

tonnes at 3.06 g/t amounting to 641,000 ounces of gold
insitu.

Source: CPR provided by C. S. KINGSLEY Ph.D., Pr. Sci.Nat, 2016

“Analyses of boreholes KA 12 to KA 19 have demonstrated conclusively
that this area is a viable proposition for an open cast gold mining
operation.”
 MINE PLAN - KAFKRAAL

“The resource calculation and laboratory results

from Super Labs, Performance labs and SGS
Laboratory is a clear indication of the reef value and
mineability of the reefs for a low cost opencastable
mine that can be operational and productive in a very
short period of time.” – CPR 2016

Open Cast Crusher Gold Gold bar off

Mining and & Processing take and/or
Transport Mill Plant Turnover
 GOLD RESOURCE – FINDINGS KAFKRAAL

Indicated Inferred
Resource: Resource:
REEF BOS BOS TOTAL
Bon 1 Bon 1
Bon 2 Bon 2
“This low cost mining operation has sufficient
information to start a mining operation that can be GRADE (g/t) 2.01 3.66 3.06
extremely profitable. With the correct planning and
production the first gold can be produced within
two months.” – CPR 2016 TONS 2 362 932 4 157 418 6 520 350

Kg Au 4 749 15 216 19 966

Ounces Au 152 696 489 199 641 895

Source: CPR provided by C. S. KINGSLEY Ph.D., Pr. Sci.Nat

GEOTECH GEOLOGICAL & GEOTECHNICAL
CONSULTANTS – 10 January 2016
 PRODUCTION TABLES

PRODUCTION START DATE

Zelpy 25,000 tons per month Immediately

• Need R150m to build plant and start mine

• CIL Plant designed by SGS Bateman
• Take off agreements can be arranged

The Mining Teams with Experience in Diamonds and Gold

opencastable mining operations form part of the CMT and Zelpy
personnel. Plant and equipment for operational mining are available
to start immediately. Outsourcing contracts in place.
 COMBINED MINING – PROJECTED CASHFLOWS

A Financial Model was used with inputs provided by the MONTHLY USES OF CASH
PCDS/ZELPY/DCM teams to project the Mine’s cash flows, in
order to determine the mine’s ability to repay creditors and
funding agreements. Overburden / mining
cost
Repayment Electricity
Key inputs: Financing
• Real Values for a typical Month’s cashflow Overheads
Labor

Reagents /
Processing Consumables
Cash Remaining

Misc
Revenue R 27 176 015 ZAR
Cash Remaining Tailings disposal

Operating Expenditure R 11 715 281 ZAR

Cash Remaining (after TAX) R 11 202 330 ZAR

Current estimates show significant available

cash (after OPEX) - will be used for repayments
SEE DETAIL CASH FLOWS SEPARATELY ATTACHED
 C O N C LU S I O N A N D WAY F O R WA R D

CONCLUSION

Cashflow projections indicate that the projects will be able to repay funding and creditors for the outstanding or funded
amounts and still maintain impressive returns.
Creditors can earn 100 cents for each Rand with in three months not only via production but backed by Funder’s guarantee.
There is an opportunity to create work immediately for more than 200 workers and effect the life's of 1600 people indirect.

WAY FORWARD

Negotiate an agreement with share holding and EPCM contract.

CONTACT PERSON: TIENIE FERREIRA (082 326 3228)

 REFERENCES

• Resource and Mine plan

• Dr Charles S Kingsley – Ph.D, Pr. Sci. Nat
• HC van der Merwe – B.Sc. (Hons) Geology; Grad. Dip. Eng. (Mining, Mineral Resource
Evaluation); GSSA 965381
• E Nel – Pr. Tech. Engineering; MBA
• D Dempers – B. Tech. Mining Engineering; Mine Managers Certificate; PMI 2717215