Securing an enduringsocial license to operateat Frieda River

PanAust Managing DirectorDr Fred Hess

PanAust Limited

Australian-headquartered

Chinese-owned

Operating assets in Laos

Ban Houayxai Gold-Silver

GRAMPhu Kham Copper-Gold

Development Project In Papua New Guinea

Exploration Licences in Myanmar

Frieda River Copper-Gold

The Frieda River Copper-Gold Project

Frieda River Copper-Gold Project

PanAust holds an 80 per cent interest in the Frieda River Copper-Gold Project with joint venture partner, Highlands Pacific holding the remaining 20 per cent.

The Frieda River Copper-Gold Project is in a least developed area of Papua New Guinea and is poised to provide a substantial boost to Sepik economies.

Project status

Feasibility study

completed

Application for a Special

Mining Lease submitted

Permitting and approvals

Pre-conditions for

development met

FINAL INVESTMENT

DECISION

Project status

Feasibility study

completed

Application for a Special

Mining Lease submitted

Permitting and approvals

Pre-conditions for

development met

FINAL INVESTMENT

DECISION

Why hasn’t the Frieda River

Project been developed yet?

Great resource burdened by remoteness and a lack of

infrastructure

High capital costs associated with supporting infrastructure

Perceptions of risks in PNG

How will PanAust unlock the Project?

Not just a mining project. A nation-building opportunity and

mining is only one element.

Broader and stronger positive economic benefits that will drive socio-economic

development

…and securing an enduring social licence to operate

Protect the Project from disruption

Stakeholders should have ‘skin in the

game’

Minimise cash handouts where

possible

Benefits flow when impact occurs

Benefits to those impacted by the

project

Deliver development with existing partners

Build governance capacity

Benefits commensurate with level of impact

Minimise discretionary spend Align with key Project milestones

Build local capacity

Strong law and order

Provide enduring uplift for current and future generations

Focus on vulnerable groups

Securing our social licence to operate

Tailoring our approachLand dispute settlement

Resolved land ownership through a benefit sharing arrangement and formula

Community developmentPrograms focused on core pillars of health, education and law and order

– skilful, healthy and safe –

Capacity building in our communitiesGetting ready for meaningful participation

at the development forum. Managing expectations and clarifying

benefit streams.

Benefits: empowerment

versus obligationWe want to empower our communities

and generate sustainable socio-economic development.

Priority areas for our landowning communities are ‘bread and butter’: health, education, jobs and training, security and safety, culture and environment.Quality of life is a higher priority than ownership of a mining project and the risks that entails.

Important to take a holistic approach and ensure benefit streams continue to the overall objective:• Holding equity in major projects

creates substantial and immediate financial obligations

• No revenue in early years• Financing equity participation is

difficult• History of equity participation is

chequered

The Way Ahead

The Project can only be developed in partnership with communities and the government

Benefits will only be sustainable if the

Operation is successful

Frieda River is not a replacement for

government

Thank you

Important notices

This presentation has been prepared solely for informational purposes and not as specific advice to any particular party or person. The information is based on publicly available information, internally developed data and other sources. No independent verification of those sources has been undertaken and where any opinion is expressed in this presentation it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information. PanAust Limited (Company) disclaims and excludes all liability (to the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. The Company does not have any obligation to advise any person if it becomes aware of any inaccuracy in, or omission from, the information contained in this presentation.