Kipoi Copper

completed

Tiger Resources Limited (“Tiger”) is an Australian listed copper producer and holds 100% of Société d’Exploitation de Kipoi (“SEK”) which operates the Kipoi copper mine in Katanga Province, Democratic Republic of Congo (DR Congo), approximately 75 km NNW of Lubumbashi. The site is adjacent to the main rail, road and power lines running between Lubumbashi, Likasi and Kolwezi on the Katanga “Copper Belt”. It is connected to the main Route Nationale (RN) Lubumbashi - Likasi by a 7 km private road. Kipoi started producing concentrate from a Dense Media Separation (DMS) plant in 2011 using high grade ore from a small open pit operation. Lower grade ores are placed on a fully lined acid leach pad from which leach solution is fed to a 25ktpa Solvent Extraction-Electrowinning (SXEW) plant, which started cathode production in July 2014 (at which time the DMS plant ceased operating). The SXEW operation is referred to as Kipoi Phase 1. Mining during the last three years has resulted in stockpiling 4.8 mt of copper ore, so mining is not required to restart until 2017. Kipoi is producing 99.995% London Metal Exchange grade “A” copper cathode which leaves the site by road.The proposed expansion project has three elements: (i) Reclamation and removal of the two existing tailings storage facilities and processing through an acid leach tank which has the benefit of rehabilitation of an environmental legacy issue as well as recovery of fine material not amenable to heap leach; (ii) Construction of a new engineered tailings storage facility on land within the existing mine site adjacent to the heap leach pads and (iii) Construction of an additional 14 electro-winning cells (the SX plant does not require expansion) with an increase in design capacity to 32.5 ktpa. However, there is potential to extend the mine life due to additional resources within the concession which are still under exploration. IFC is expected to provide debt financing of up to US$40.5 million to SEK and equity financing up to US$5 million to Tiger to fund the Phase 2 expansion. The debt portion of the financing would be part of a US$162.5 million package provided together with Taurus Mining Fund. Tiger also holds two other exploration concessions within DR Congo, La Patience (10 km south east of Kipoi) and Luputo (10 km south of Kipoi) plus a small minority interest in Chrysalis Resources which has copper projects in Zambia. Should any of the additional resources in the Kipoi area be proposed for development Tiger is committed to follow an ESIA process consistent with the IFC Performance Standards including cumulative impact assessment, if appropriate.