KOPY GOLDFIELDS AB - Redeye

KOPY GOLDFIELDS AB
Growing gold explora;on company in gold rich Lena Goldfields in Russia
Redeye Seminar, March 20, 2013
NASDAQ OMX First North: KOPY

Disclaimer -­‐ Forward looking statement
Forward Looking Informaon
• This presentaon is for informaonal purposes only and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. The informaon contained in this Presentaon is regarded as being
strictly confidenal and shall remain the exclusive property of Kopy Goldfields AB (“Company”). Readers are not permiUed to disclose the contents of this Presentaon to any other person without the Company’s prior wriUen
approval. This presentaon does not constute an offer to sell or a solicitaon of an offer to buy any securies of the Company and should not be relied on in connecon with a decision to purchase or subscribe for any such securies.
There are no securies being offered by this presentaon in any jurisdicon. This presentaon contains “forward looking informaon” which may include, but is not limited to, statements with respect to the future financial and
operang performance of the Company, its subsidiaries and affiliated companies, and its mineral projects, the future price of gold, the esmaon of mineral reserves and resources, the realizaon of mineral resource esmates, costs
of producon, capital and exploraon expenditures, costs and ming of the development of new deposits, costs and ming of future exploraon, requirements for addional capital, governmental regulaon of mining operaons and
exploraon operaons, ming and receipt of approvals, licenses, environmental risks, tle disputes or claims, limitaons of insurance coverage and the ming and possible outcome of pending regulatory maUers. O\en, but not
always, forward looking statements can be idenfied by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “esmates”, “forecasts”, “intends”, “ancipates”, or “believes” or variaons (including
negave variaons) of such words and phrases, or state that certain acons, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward looking statements involve known and unknown risks,
uncertaines and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries and/or its affiliated companies to be materially different from any future results, performance
or achievements expressed or implied by the forward looking statements. Such factors include, among others, general business, economic, compeve, polical and social uncertaines; the actual results of current exploraon, mining
and metallurgical acvies; conclusions of economic evaluaons and studies; fluctuaons in the value of the United States dollar relave to the Swedish Kronas and Russian Rubles; changes in project parameters as plans connue to
be refined; future prices of gold; possible variaons of grade or recovery rates: failure of plant, equipment or processes to operate as ancipated; accidents, labor disputes and other risks of the mining industry; polical instability,
insurrecon or war; delays in obtaining governmental approvals or financing or in the compleon of development or construcon acvies. There may be other factors that cause acons, events or results to differ from those
ancipated, esmated or intended. Forward looking statements contained herein are made as of the date of this presentaon and the Company disclaims any obligaon to update any forward looking statements, whether as a result
of new informaon, future events or results or otherwise. Accordingly, readers should not place undue reliance on forward looking statements due to the inherent uncertainty therein. Except as otherwise expressly required by
applicable law or as agreed to in contract, no representaon, warranty, or undertaking (express or implied) is made and no responsibilies or liabilies of any kind or nature whatsoever are accepted by the Company as to the accuracy
or completeness of the informaon contained in this presentaon or any other informaon provided by the Company in connecon with the offering of the securies described herein. All informaon not separately sourced is from
the Company. The informaon and opinion contained in this presentaon are made of the date of this presentaon and are subject to change without noce.
Naonal Instrument NI 43 101 or JORC
• This presentaon is not NI 43 101 or JORC compliant. The economic analysis contained in this presentaon is based Russian C1 to P2 reserves and resources. Investors should be parcularly cauous in relying on P1 and P2 resources.
P1 and P2 resources are considered too geologically speculave to have mining and economic consideraons applied to them and to be categorized as mineral reserves. There is no certainty that the reserves development, producon
and economic forecasts on which the preliminary assessment is based will be realized.. The terms “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are Australian mining terms as defined in
accordance with The Code for Reporng of Mineral Resources and Ore Reserves (the "JORC Code") as published by the Australian Joint Ore Reserves CommiUee and are compliant with Australian securies laws. These definions differ
from the definions in Industry Guide 7 (“Industry Guide 7”) under the U.S. Securies Act. Under Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, a three year historical average price is
used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. In addion, the terms “mineral resource”, “measured
mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by the JORC Code; however, these terms are not defined terms under Industry Guide 7 and are normally not
permiUed to be used in reports filed with the United States Securies and Exchange Commission (“SEC”). Investors are cauoned not to assume that any part or all of mineral deposits in these categories will ever be converted into
reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource
will ever be upgraded to a higher category. Under the Australian rules, esmates of inferred mineral resources may not form the basis of feasibility or pre feasibility studies, except in rare cases. Investors are cauoned not to assume
that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained kilo tones” in a resource is permiUed disclosure under Australian regulaons; however, the SEC normally only
permits issuers to report Mineralizaon that does not constute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures.
U.S. Securies Law Disclaimer
• Our securies have not been and will not be registered under the United States Securies Act of 1933, as amended (the "Securies Act"), or the securies laws of any state of the United States and, subject to certain excepons, may
not be offered or sold within the United States. Investors resident in the United States will be required to acknowledge that the securies are "restricted securies" within the meaning of Rule 144, and that if in the future an investor
decides to offer, resell, pledge or otherwise transfer any of the securies, it may do so only (a) to the Corporaon; (b) outside the United States in accordance with Rule 904 of Regulaon S under the Securies Act and in compliance
with applicable Canadian and provincial laws and regulaons; (c) within the United States in accordance with Rule 144, if available, and in compliance with any applicable state securies laws of the United States; or (d) in another
transacon that does not require registraon under the Securies Act or any applicable state securies laws of the United States. Accordingly, informaon contained in this Investor Presentaon may not be comparable to similar
informaon made public by U.S. companies subject to the reporng and disclosure requirements under the United States federal securies laws and the rules and regulaons there under the Securies Act or any applicable state
securies laws of the United States.
Currency
• Unless otherwise indicated, all dollar values herein are in US Dollars.
NASDAQ OMX First North: KOPY

Growing gold explora;on company
• Founded in 2007 to explore gold deposits in
Russia
• 15 gold exploraon properes with mulple
targets covering 2,338 km 2 (233,800 ha)
license area within Lena Goldfields, Irkutsk
region, Russia
• 1.4 Moz JORC bedrock gold resources within Krasny and Kopylovskoye
deposits. Addional Russian historic C2&P1,P2 resources within other
properes
• Eldorado Gold Corporaon -­‐ 29% shareholder
• 45 MUSD invested in exploraon, acquisions and fixed assets since 2007
• 63 MSEK Market Cap and 4,100 shareholders
• Listed on NASDAQ OMX First North, Sweden (cker KOPY)

Lena Goldfield – Unique gold explora;on poten;al
§ Irkutsk region – 530 kOz gold produced in 2011, 70%
alluvial
§ Sukhoy Log deposit (60Moz) – state owned, called for
privazaon
§ Vysochayshy (3 Moz), Verninskoye (5.8 Moz) – under
producon
District Oz Au Produced + Resources Deposit Size
Witwatersrand, S. Africa Largest District + 300M oz 1 -­‐ 20 M oz
Lena Goldfields, Bodaibo +100M oz 100k to 30M oz
Carlin, Nevada +100M oz 100k to ~20M oz
Timmins, Canada ~ 100M oz 100k to ~20M oz
Kalgoorlie, Australia + 100M oz 100k to 50M oz
California +100 M oz Highly variable
NASDAQ OMX First North: KOPY

We look for bedrock sources of placer gold
We explore here
Krasny mountain
Logs from 19 th century underground alluvial mining
Alluvial mining around Krasny project
NASDAQ OMX First North: KOPY

Russia -­‐ Favorable mining and tax regime
• Favorable taxaon:
– 6 % royalty
– 20 % profit tax
– 13 % flat personnel income tax
• Gold is not “strategic mineral” in Russia:
– 2011 -­‐ 52 % of gold is produced by internaonal
companies
– Top 5 gold producers in Russia: Polyus Gold Int (#1) –
registered in Jersey; Petropavlovsk (#2) – UK; Kinross
Gold (#3) -­‐ Canada, Polimetal (#4) – Jersey; NordGold
(#5) – The Netherlands
• 8-­‐12 months to get producon permits
• 400-­‐500 USD/oz producon cash cost for peers
within the Lena Goldfields
• Qualified and loyal personnel
• Strong support from local authories – Gold mining
is the ONLY industry in Lena Goldfields and crucial
for local employment
6

Eldorado Gold -­‐ experience and financial stability
• Major owner in Kopy Goldfields with 29%
• Invested 17 MSEK @10 SEK/share + 12 MSEK@12
SEK/share (at market share price ~7SEK)
• Fast growing mid er Canadian gold producer
listed in Canada, USA and Australia
• Eldorado Gold:
– Market cap – 7 Billion USD
– Producon > 650 kOz/year (at less than 480 USD/Oz)
– 8 mines in operaon: Brazil (1), Turkey (2), China (3),
Greece (2) and several under construcon and
development (China, Greece, Romania)
– 47 MOz gold resources
– 2013 exploraon budget – 99 MUSD
– In December 2011 made acquision of European
Goldfields for 2.5 Billion CAD
– Shareholder in Nordic Mines
• Eldorado is represented by two people on the
Technical CommiUee to evaluate and advise on
exploraon plans, development and acquisions
7

Krasny project – flag asset of Kopy Goldfields in 2012
• Ini;al resource es;ma;on – 1.28 Moz Inferred resources JORC (November 23,
2012) for open pit mining
• Mineralizaon is confirmed for 1650 m strike and open along strike and to depth.
Current resource esmaon covers 1300 m along strike. Total strike is possible
for 4 km based on historic geophysical data, recent drilling and area geology (all
extensions are within Krasny license)
• Most significant drill gold intersecons: 38m@3.3g/t (hole#141401),
40m@2.38g/t + 22.4m@1.24g/t (#141413), 43m@2.82g/t + 31m@2.81g/t
(#141419), 23.5m@2.25g/t (#141416), 23.6m@5.28g/t (#141424), 13m@1.79g/t
(#141404), 79m@1.86g/t (#141420).
• Mineralizaon is coming close to surface and outcropping in the Center (Upper
structure) and on the West flank (Lower structure)
• Processing tests results: gravitaon (77% recovery) + flotaon (extra 17%)
• License valid for bedrock gold prospecng, exploraon and producon unl 2035
with potenal extension. Historic Russian C2+P1 resources of 650kOz@2.67g/t
• Exploraon 2011 -­‐2012: 7 km ground geophysics (IP, Magnec, Resisvity);
1,161m of channel sampling ; 12,803 meters core drilling and assay; Mineralogy
study; Metallurgy preliminary study; Topographic survey 1;2000 scale
NASDAQ OMX First North: KOPY

Krasny plan view – 1,650 m strike confirmed
1300 m
16
1645 m
22
26 27
28 32
35
31
45
1300 m
Total license area-­‐ 31 km2
NASDAQ OMX First North: KOPY

Ресурсы и качество руд месторождения
в зависимости от бортового содержания,
ОК
1.28 Moz -­‐ Krasny ini;al resource es;ma;on
Металл,кг
Ресурсы руды, тыс.т
Среднее содерж.,г/т
60000.00
3.00
50000.00
2.50
ресурсы руды (тыс.т) и металл (кг)
40000.00
30000.00
20000.00
10000.00
Cut off
Ore
Average Au
Au (mOz)
(g/t) Million m3 Million tons grade (g/t) (tons)
2.00
0.20 18.6 48.3 0.94 45.21 1.45
0.40 14.5 37.8 1.10 41.72 1.34
0.60 10.9 28.5 1.30 37.09 1.19
0.80 7.9 20.6 1.54 31.64 1.02
1.00 6.0 15.6 1.74 27.17 0.87
1.50
1.20 4.5 11.8 1.95 22.99 0.74
1.40 3.4 9.0 2.16 19.35 0.62
1.60 2.5 6.6 2.40 15.77 0.51
1.80 2.0 5.1 2.61 13.25 0.43
2.00 1.5 3.8 2.85 10.85 0.35
1.00
0.50
0.00
0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4
борт.сод-е, г/т
0.00
NASDAQ OMX First North: KOPY

Explora;on poten;al within Krasny license area
Zones of stretching
and cleavage are
Poten;al traps for
Gold mineraliza;on
NASDAQ OMX First North: KOPY

Kopylovskoye and Kavkaz: ready for FS
• Kopylovskoye cluster project
– Area 1.5 km 2 . License valid unl 2020.
– June 2011 -­‐ Inial JORC report by SRK
a\er 6.8 km of RC and core drilling.
117kOz inial I&I resources
– Pilot producon plant (100 kt capacity)
– Negoate JV deal
• Kavkaz cluster project
– Area 4.5 km 2 . License valid unl 2015.
Russian historic reserves C1&C2
33kOz@9g/t + resources P1 80kOz
– In 2011 drilled 2,550 meters diamond
and RC holes
– Look for JV partner

Recent Acquisi;on: 231 km 2 in February 2012
• Add 231 km 2 of exploraon properes:
Purpolskaya 150 km 2 + Verkhnyaya Orlovka
81 km 2
• Roads and other basic infrastructure in place
• Historic exploraon data available
• Purpolskaya license:
– Borders Chertovo Koryto 3 MOz @1,84 g/t M&I
resources owned by Polyus Gold
• Verkhnyaya Orlovka license:
– Borders license of Nord Gold acquired for 10 MUSD
– Borders Karalon-­‐deposit with proven resources
C1+C2
• Low acquision costs of 1,000 USD and
beneficial license terms
• We plan carrying ground geophysical and
geochemical survey in 2013
NASDAQ OMX First North: KOPY

Recent Acquisi;on: 1,852 km 2 in November 2012
• November 29, 2012 – won 6 new license
properes in Maly Patom area -­‐ North of Lena
Goldfields:
– Total area – 1,852 km 2 (182,500 ha)
– Total acquision costs – 315 kUSD
– License terms: dra\ licenses for bedrock gold
prospecng, exploraon and producon for 25
years with potenal extension
• New properes located within the last
unexplored area in the Lena Goldfields – last
prospecng acvies date back to 1970s
• New prospects create blue sky potenal for
Kopy Goldfields as they have geology and rock
similar to Sukhoy Log and carry strong
possibility to host elephant gold deposits
• License exploraon terms are very beneficial
with 5 years le\ for prospecng
• We intend to commence field exploraon
during 2013
NASDAQ OMX First North: KOPY

Targets for 2013
• Krasny 2013 – proceed with
further exploraon along strike
to esmate full scope of
mineralizaon by summer 2013
• Krasny 2013 – test other parallel
structures
• Commence exploraon on the
newly acquired properes
• Finalize JV relaons over
Kopylovskoye and Kavkaz
projects and move into
producon

Devoted and growth oriented shareholders
• Major shareholders
– Eldorado Gold Corp 29 %
– KGK Holding 14 %
– UBS AG Clients account 10 %
– Markus Elsässer 6 %
– Commodity Quest 6 %
– Nordnet Pensionsförsäkring 5 %
– S. Petrov & Shimanova 4 %
– Board and Management (excl Petrov) 2 %
– 4,100 retail investors 26 %
• Total number of shareholders 4,100
• Total number of outstanding shares 22,851,621
• Total number of outstanding warrants 3,950,668
– Whereof Board and Management 728,163
• Total investments 45 MUSD
• Market Cap (February 21 @ 2.86 SEK/share) 10.4 MUSD
• Ticker -­‐ KOPY (NASDAQ OMX First North, Sweden)

Experienced Board and Management
Kjell Carlsson, Chairman, MSc (Mechanics), former
director from Sandvik Mining and Atlas Copco.
Holding – 64,000 shares (0.3%)
Markku Mäkelä, prof. Geology. Director at EU Fund
for Natural Resources, Exploraon Manager at
Outokumpu Co. , Heard of Finnish Geological Survey
Mikhail Damrin, CEO Kopy Goldfields , MSc,
MBA. Former top manager from Central Asia
Gold and West Sibirien Resources. Holding –
91,085 shares (0.4%), 230,224 warrants
Tim Carlsson, Ms Business, CFO, former auditor
at KPMG. Holding – 21,000 shares (0.1%),
112,606 warrants
Johan Österling, lawyer, former partner Foyen Law
Firm. Holding – 200,000 shares (0.9%), 25,000
warrants
Alexander Vamboldt,CEO Kopylovsky OOO and
Producon Director, MSc Mining Engineer
Holding – 108,606 warrants
Sergey Petrov, MSc (Physics), investment banker
from Moscow. Holding – 426,554 shares (1.9%)
Evgeny Boshkov, Chief geologist, PhD geology,
Long experience from exploraon in Africa and
Russia
Holding – 108,606 warrants
Andreas Forssell, Ms Business, CEO Crown Energy.
CEO of Tomsk Refining. Experience from
development in Russia
NASDAQ OMX First North: KOPY

Ques;ons
Kopy Goldfields AB
Skeppargatan 27, 4th floor, 114 52 Stockholm, Sweden
Mikhail Damrin, CEO, mikhail.damrin@kopygoldfields.com
Tim Carlsson, CFO, ;m.carlsson@kopygoldfields.com
NASDAQ OMX First North: KOPY