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1 22 March 2016 MINING ACTIVITIES COMMENCE AT BAOBAB PHOSPHATE PROJECT, SENEGAL PROJECT ON TRACK FOR 2016 PRODUCTION Highlights Site and pit access roads complete, mining workshop concrete works complete, civil works and construction underway Mining equipment delivery to site is almost complete Mining operations have started and are ramping up to optimise mining fleet Processing plant fabrication underway in Johannesburg First production remains on target for the second half of CY2016 Avenira Limited ('Avenira' or the 'Company') is pleased to announce continued steady progress has been made on all key critical path items at the Baobab Phosphate Project ( Project ) including mining, processing, infrastructure and water supply. The progress reflects Avenira's accelerated strategy to break into the buoyant nutrient and fertiliser sector. The Company's strategy to develop the Project is based on an initial Stage 1 operation producing 500,000 tonnes per annum of phosphate concentrate. Total capital expenditure to production is $US15 million and the Project is fully funded. The operation has been designed to enable multiple stages of expansion across the Project. Avenira s Managing Director and CEO Cliff Lawrenson commented: It is very pleasing to see the Baobab Phosphate Project development advancing rapidly. The project team is making solid progress in all key areas and the Project remains on budget and on schedule for first production in the second half of calendar The Project is fully funded to production, while separately Avenira retains cash reserves allowing the Company to proceed with development beyond Stage 1 of the project."
2 Project Status Development of the Project is well advanced with mining activities now commenced and production of first phosphate rock on schedule for early in the second half of Mine and Process Plant access roads are complete with the open pit ramp being established. Mining operations have now commenced. Figure 1: Stage 1 Open pit access ramp establishment in progress. Site Infrastructure is being established with office and accommodation units on site and main access roads complete. Figure 2: Project access road construction 2
3 Figure 3: Project mine site facilities and offices being installed German company BAUER Resources Senegal has been contracted to drill and install 2 water bores for the Project, principally for processing the phosphate ore. This drilling is well underway with the first of two 500m-deep water bores drilled and airlifting water. Once complete the drill rig will start the second process water bore. Figure 4: BAUER Resources Senegal drilling rig operating at the Project 3
4 Mining contractor Agromines has completed top soil clearing of the first stage of the open pit and the main mining fleet has commenced overburden removal and is ramping up to be fully operational by the end of March. Figure 5: Ore haulage fleet on start line. South African-based specialist engineering group Consulmet is progressing with the fixedprice design and construction of the Project modular wet screening plant. The plant is being fabricated in Johannesburg and will be transported to site for final erection and installation. The preferred tenderer for road transport of product to the Port of Dakar has been selected and draft contracts are currently being reviewed. Avenira has signed MOUs for approximately double the initial annual production target of the Project and is currently working with buyers to convert the MOUs into offtake contracts. Further updates will be provided throughout the construction process. Cliff Lawrenson Managing Director 4
5 Baobab Mining and Chemicals Corporation SA Gadde Bissik Mine Site Visit 18 March 2016
6 Gadde Bissik Mine Location
7 Gadde Bissik Mine Layout
8 Mine Site Offices
9 Manar Ba BMCC GM
10 Completion of the first process water bore by Bauer
11 Water bore gravel samples from the aquifer zone
12 Process water bore showing good initial water flow
13 Completing road access to the initial mine pit
14 Site of the inital mine pit, cleared of topsoil Start of pit ramp
15 Paul Richardson - Project Director with mining contractor Agromines
16 Agromines excavator ready to start stripping overburden
17 Mansour Gaye BMCC Moustapha Sy Agromines President
18 Agromines dumptruck fleet at the site
19 Macoumba Gaye BMCC President Ibrahima Diop Agromines GM Manar Ba BMCC GM
20 Agromines maintenance shop under construction
21 Completing the water bore for the local community Russell Fulton Avenira Geological Manager
22 Dirt road from the minesite to Bambey going through the village of Darou Khoudoss
23 An excavator en route to the mine site on the paved national road from Bambey to Dakar
24 Avenira Limited ABN Ground Floor, 20 Kings Park Road West Perth, WA 6005 AUSTRALIA PO Box 1704 West Perth WA 6872 AUSTRALIA info@avenira.com 2016 Avenira Limited
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