Portfolio

Royalty Investments

Metal Tiger holds the following three Royalties (under four Royalty agreements):

1)

A US$2m capped 2% net smelter royalty over Sandfire Resources T3 project in the Kalahari Copperbelt (within PL190/2008 which is held by Sandfire Resources subsidiary Tshukudu Metals Botswana).

2)

(b) An uncapped 2% net smelter royalty over any future production over Sandfire Resources 100% held subsidiary Tshukudu Exploration Limited’s circa 8,000km2 licence holding in the Kalahari Copperbelt (including the area covered by PL190/2008 that is outside of the T3 project, in which Tshukudu Exploration Limited holds a beneficial (but not legal) interest in).

Map of licence area covered by Royalty highlighting A4

Metal Tiger is very encouraged by the latest set of drill results highlighted by Sandfire Resources at the A4 project.

Metal Tiger’s announcement 17 December 2019

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3)

(c) An uncapped conditional 2% net smelter royalty over all Kalahari Metals Group's (“Kalahari Metals”) wholly owned licences, being seven licences covering, in aggregate, 6,650km2. These are structured as two separate royalty agreements based on how the licences are held under Kalahari Metals' corporate structure but the ultimate guarantor is Kalahari Metals.

Note: This royalty will fall away should Metal Tiger invest a further amount at a lower valuation than the last funding round in Kalahari Metals, subject to a cap of US$500k. In other words, any further investment into Kalahari Metals up to US$500k must be at the same valuation as Metal Tiger's initial investment if the Kalahari Metals royalty agreement is to remain valid and enforceable. There is no obligation to invest further capital into Kalahari Metals.

Areas covered by the royalty

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Background on Net Smelter Royalties

Net Smelter Return means, the gross revenue from the sale of mineral products less allowable deductions. Allowable deductions can include, amongst other items, the reasonable costs of smelting and refining, transportation and security costs, handling costs and expenses, actual sales costs, and any taxes, royalties, duties, levies and charges lawfully imposed by an authority.

They do not include exploration, development, construction, mining, crushing, milling, concentrating, administrative, marketing or corporate costs of the payer of the royalty.

 

Cobre Pty Ltd

Southern Gold

Kalahari Metals Limited