ROYAL NICKEL CORPORATION Developing the Next Great Canadian Base - - PowerPoint PPT Presentation

ROYAL NICKEL CORPORATION Developing the Next Great Canadian Base Metal Mine

May 13, 2014

TSX: RNX

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Disclaimer

Cautionary Statements Concerning Forward-Looking Statements This presentation contains "forward-looking information" including without limitation statements relating to mineral reserve estimates, mineral resource estimates, realization of mineral reserve and resource estimates, capital and operating cost estimates, project and life of mine estimates, construction of the mine and related infrastructure, the timing and amount of future production, costs of production, success of mining operations, ability to obtain permitting by the time targeted, size and ranking of project upon achieving production, economic return estimates and potential upside and alternatives. Readers should not place undue reliance on forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RNC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The feasibility study results are estimates only and are based on a number of assumptions, any of which, if incorrect, could materially change the projected outcome. Even with the completion of the feasibility study, there are no assurances that Dumont will be placed into production. Factors that could affect the outcome include, among others: the actual results of development activities; project delays; inability to raise the funds necessary to complete development; general business, economic, competitive, political and social uncertainties; future prices of metals; availability of alternative nickel sources or substitutes; actual nickel recovery; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities. The MOU with Tsingshan is non-binding and there is therefore no assurance that the strategic alliance with Tsingshan will result in any transaction or venture with Tsingshan. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to RNC's filings with Canadian securities regulators available on SEDAR at www.sedar.com. Although RNC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this presentation and RNC disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or

• therwise, except as required by applicable securities laws

NI 43-101 Compliance The technical information pertaining to the Dumont project feasibility study in this presentation is based on RNC’s technical report dated July 25, 2013 that describes the results of the Dumont project feasibility study and was prepared in accordance with Canadian regulatory requirements by, or under the supervision of, Paul Staples, P. Eng. of Ausenco Limited, Sébastien Bernier, P.Geo. of SRK Consulting (Canada) Inc. and David A. Warren, Eng. of Snowden Mining Industry Consultants, all of whom are independent Qualified Persons as set

• ut in National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").

The Mineral Resource estimate set out in this presentation was classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2010) by Sébastien Bernier, P. Geo (OGQ#1034, APGO#1847), Principal Consultant – Resource Geology at SRK. The Mineral Reserve estimate set out in this presentation was classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2010) by David A. Warren (OIQ 121481), Principal Consultant – Mining at Snowden. All other technical information in this presentation has been prepared by or under the supervision of Alger St-Jean, P. Geo., Vice President, Exploration of RNC and Johnna Muinonen

• P. Eng., Vice President, Operations of RNC, each a Qualified Person as defined in NI 43-101. The full Dumont feasibility study, prepared as an NI 43-101 compliant technical report, is

available under RNC’s profile on SEDAR at www.sedar.com.

All currency references in U.S. dollars, unless otherwise stated.

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Nickel Stocks Could Run Out as Early as Mid-2015

• The Indonesia ban removes 25-30% of global nickel supply - equivalent to ALL OF THE OPEC GULF STATES

CEASING OIL PRODUCTION (29% of supply). RNC believes the ban unlikely to be overturned.

• Approximately 3/4 of Chinese NPI production was sourced from Indonesian ore and the export ban will

also severely impact nickel producers in Ukraine, Australia, and Japan

• China has a limited ability to replace Indonesian ore and there is no certainty that significant NPI/FeNi

capacity will be built in Indonesia in the near future

• RNC believes that the Philippines could only supply 5-10 Mt of high grade ore (only 10-20% of Indonesian current

exports). Please note that the Philippines has also considered export restrictions as well.

• The nickel “project cupboard” was “emptied” during prior peak and few new projects have been developed

to replace them resulting in long-term structural supply shortfall

• 2013 marked a milestone as the last of the “tidal wave” of new projects launched in peak in prior nickel

cycle began commissioning. A number of these projects continue to struggle

• Nickel prices could return to 2006-2007 ranges of $30-50,000+ per tonne as prices will once again have to rise

to force demand in line with available supply

• The combination of the Indonesia ban and structural supply shortfall will lead to multi-year nickel

shortages as early as mid-2015 despite record LME inventories of 260kt and ore stockpiles in China.

• Demand will need to shrink by 8% by 2016 and cannot exceed 2% annual growth by 2020 in an optimistic

supply scenario and most likely no more than 1% growth in a more conservative scenario

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Nickel – “From Worst to First”

Nickel has been the best performing base metal in 2014

Source: Metalprices.com

• 10%
• 5%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% Nickel Tin Zinc Aluminum Lead Copper

LME Base Metals Prices 2014 YTD Change

(as of May 13)

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Indonesia Has Filled Supply Gap Globally by Allowing Export of High-Grade Ore

5% 10% 15% 20% 25% 30% 2005 2006 2007 2008 2009 2010 2011 2012 2013F

Indonesian Mine Supply as a % of Global Nickel Supply

Source: Wood Mackenzie Ltd.

In just 5 years, Indonesia’s share of global nickel supply has nearly tripled with most of the increase shipped as unprocessed ore to China – Indonesia now equivalent to “2 Saudi Arabias”

As of

• Jan. 12, 2014,

Indonesian nickel ore exports are ZERO

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Indonesia Ore Export Ban Likely to Stay Strictly Enforced

Many commentators cite upcoming elections, various economic , and other issues which will cause Indonesia to water down the ban – none of which hold up well under closer observation

• Political?
• When the Indonesian parliamentary committee (Commission Seven) responsible for the law

was presented with potential exemptions for companies building smelters, all nine factions in the committee voted UNANIMOUSLY against any exemptions

• Based on RNC research to date, there appears to be little political support from ANY party for

exemptions

• Economic?
• The central government derives little direct economic benefit from the $1-1.5 billion of

annual nickel ore exports particularly compared to the billions of dollars of potential investment which would be required to transform even a fraction of the ore exports into finished product

• The central government owns 51% of PT Antam, the 2nd largest nickel producer in Indonesia,

which would directly benefit from higher nickel prices

• Strategic?
• Any changes to the export ban will reduce the incentive for investment and undercut the

rationale for the ban in the first place

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Significant Barriers To Building NPI/FeNi Production in Indonesia

Some commentators are also suggesting that substantial capacity could be added quickly in

• Indonesia. There are a number of key challenges that they may be failing to fully take into

account.

• The nickel ore is located in areas with virtually no infrastructure, few people, and none
• f the power required to produce NPI/FeNi
• Unlike NPI plants in China, projects will have to incorporate the construction of a power

plant and all of the related support infrastructure. PT Antam – the state nickel producer has a project with an estimated capital cost of $1.6 billion for 40ktpa of nickel output

• $1+ billion investments will be challenging given Indonesia’s investment climate

(Indonesia ranks 114th on Transparency International Corruption Perceptions Index between Egypt and Albania) and proposed regulations which would limit foreign

• wnership to 49%
• Operating costs could be lower than Chinese NPI production due to reduced ore and

coal shipping costs which can be potentially more than offset by differences in labour costs and productivity and the need to source many inputs from outside

• Chinese companies have a very mixed track record when investing and building mining

projects outside China

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Nickel – Chinese Portside Ore Stocks are Declining and Ore Prices are Rising

Source: Ferroalloynet.com Limited

10 20 30 40 50 60 70 80 90 100 110 120 US$/wmt FOB

Nickel Ore Prices (2014 YTD 13-May)

Laterite 1.8% Ni Ore (12-18% Fe) Until Jan 12: Indonesia Post Jan 12: Philippines Laterite 1.5% Ni Ore (Philippines 25-30% Fe)

The price of nickel ore in China has more than tripled in 2014 Portside nickel ore stocks in China have steadily declined since mid-February

25.4 25.8 25.2 25.0 25.3 26.1 24.7 23.8 23.4 22.5 21.6 20.6 20.2 20.0 19.9 19.3 19.3 19.2

15 20 25

Chinese Nickel Ore Stocks Total (Mt)

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China & Indonesia – An Important relationship China NOT Self-Sufficient in Nickel

<5% 15% 18% 29% 54% 57% 67% 85%

Platinum Palladium Nickel Copper Iron Ore (62% Fe-eq) Lead Aluminium (Bauxite) Tin Zinc

Chinese Self-Sufficiency Mine Supply as a % of Demand (2012)

Source: USGS, Wood Mackenzie Ltd., Macquarie Research, RNC Analysis

China to struggle to replace Indonesian ore as nickel is one of the metals in which China is least self-sufficient

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Few Alternatives for High Grade Laterite Ore Outside Indonesia

There are few alternatives for high grade laterite ore outside Indonesia. RNC estimates that the Philippines could supply a maximum of 5-10 Mt of high grade ore (10-20% of current Indonesian exports) and New Caledonia only exports

• re to partners in Japan and Korea.

Source: Glencore: “The Realities of the Nickel Market”, November 2013

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New Nickel Supply Fundamental Issue: An Empty “Project Cupboard”

Even without the strict implementation of the ban, the fundamental issue facing the nickel industry by 2015–2016 is an empty “project cupboard”

• At the beginning of the last decade prior to the significant run-up in nickel prices, the

“project cupboard” was very full with many projects known for decades

• Today’s picture is very, very different, setting the stage for an exciting nickel cycle

Project Cupboard 2001 (20+kt) TOTAL: 500+ kt Project Cupboard 2014 (20+kt) TOTAL: 200+kt

Barro Alto Tsingshan (Indonesia) Koniambo Weda Bay Onca Puma Dumont Tagaung Taung Enterprise Ambatovy Kabanga Goro Nova-Bollinger Ramu Ravensthorpe Weda Bay Talvivaara* Kabanga Voisey’s Bay Sulphide Laterite (HPAL) Laterite (ferronickel) Sulphide Laterite (leach)

*bioheapleaching process

Laterite (ferronickel)

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RNC Forecast New Nickel Supply

The source of future nickel supply growth is NOT clear

• HPAL?
• Large capex overruns (projects $5+ billion), numerous delays and start-up issues
• Operating costs also much higher than anticipated
• FeNi?
• Best projects already being developed
• No new large scale high-grade (2%+) discoveries for over 30 years
• Sulphides?
• Largely empty project pipeline – only Enterprise, Nova-Bollinger, Dumont
• Future growth likely to come from large scale, lower grade deposits
• NPI?
• Largely dependent on availability of higher grade Indonesian ore
• No NEW technology – China now using 30+ year old RKEF technology + hot charging
• Combination of lower grade ore and higher input costs will drive costs higher

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RNC Forecast Nickel Supply – “Tidal Wave” Projects

1,000+ 248 242

Projected Nickel Demand Growth Nickel Supply In Construction 2011-15

Global Nickel Demand Growth

• Vs. Potential Supply

2010-2020

490

Source: Wood Mackenzie Ltd., RNC Analysis

New supply growth from the “tidal wave” of new projects financed during prior nickel cycle is still <40% of capacity and RNC expects that it will only reach 60%+ by 2020

Project Annual Capacity 2012 2013 RNC Forecast 2015 2020 VNC (Goro) 60 4 16 Ambatovy 60 25 Koniambo 60 1 Onca Puma 55 6 2 Talvivaara 50 13 9 Barro Alto 40 22 25 Ravensthorpe 39 33 29 Ramu 33 5 11 Taganito 30 7 Santa Rita 26 19 16 Eagle 17 Niquelandia 10 Kevitsa 10 4 9 Total 490 106 150 310 360

Nickel Supply “Tidal Wave” – High Nickel Price Scenario Ramping Up or In Construction 2010-2015 (kt)

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Project Annual Capacity RNC Forecast 2015 2020 Weda Bay 35 Kabanga 20 Enterprise 40 Nova-Bollinger 28 Dumont (1st Phase) 331 Tsingshan (Phase I&II) 60 Total 216 80 200

Source: Company reports, RNC Analysis

• 1. Average production over phase 1 of mine life

Many of the new large scale projects will struggle to be financed and be put into production by 2020

RNC Forecast Nickel Supply – New Large Projects

Nickel Supply Growth: New Projects (kt) – High Nickel Price Scenario

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RNC Forecast – Supply / Demand Balance

292 288 319 346 410 418 1,542 2,621

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800

2010 2013 2014 2015 2016 2017 2018 2019 2020 Existing Supply NPI Underlying Demand

Nickel Supply / Demand Forecast (Kt)

New NPI / Price Driven Demand Destruction

Nickel prices will once again have to rise to force demand in line with available supply as in 2006-2007 ($30,000-$50,000+/t), particularly 2016 when demand must DECLINE by 8%+ to balance the market

Source: Wood Mackenzie Ltd, , RNC Analysis

Demand (constrained by available supply)

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RNC’s Dumont Nickel Project: A Billion Dollar Opportunity

Note: Price and exchange rate assumptions contained in “Key Assumptions” table found on slide 42 of this presentation

4.31/lb

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RNC’s Dumont Nickel Project: A Billion Dollar Opportunity

Source: Company reports and Wood Mackenzie Ltd. (December 2011); RNC 105ktpd (LOM) vs 2012 production for other projects

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Structurally Low Cost Project in Excellent Jurisdiction

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Structurally Low Cost Project in Excellent Jurisdiction

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Structurally Low Cost, Large Scale Project

Source: Technical Report on the Dumont Ni Project, Launay and Trecesson Townships, Quebec, Canada, July 25, 2013, available at www.royalnickel.com and on www.sedar.com.

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Tsingshan Strategic Alliance Leads to World’s 1st Integrated Stainless Steel Plant Utilizing Sulphide Concentrate

Tsingshan currently constructing the world’s first integrated nickel pig iron (“NPI”) plant to directly utilize nickel sulphide concentrate as part of the stainless steel production process

• The plant, located in China, is expected to begin operation in 2014
• Significant potential benefits to producers of suitable nickel sulphide

concentrate feed such as RNC’s Dumont Project:

• Lower costs due to simpler processing compared to traditional smelting and refining
• Higher payability than traditional smelting and refining
• Greater flexibility for more potential partners and customers
• Roasted nickel concentrate is effectively a very high grade laterite ore feed –

creates new source of demand for nickel sulphide concentrate notably at a time when many NPI and ferronickel producers face feed shortages as a result of Indonesia’s recently implemented nickel ore export ban

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Well-positioned on Cost Curve

Source: RNC technical report dated July 25, 2013, Wood Mackenzie Ltd.

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Lower Capital Intensity

Source: RNC technical report dated July 25, 2013, publicly available disclosure, Wood Mackenzie Ltd. (figures shown to two significant digits)

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Developing the Next Great Canadian Base Metal Mine

Based on RNC analysis. All mines based on reported 2012 production with exception of Dumont (technical report-July 25, 2013) expected Phase I and Phase II life of mine production, Gibraltar Expansion (Taseko website) life of mine production. Ni-eq., Cu- eq production calculated using the average long-term prices per tonne as of May 31, 2013 based on the 4 of 5 analysts who cover RNC and regularly publish commodity forecasts : Au: $1,250/oz, Cu: $6,283, Mo: $29,542, Ni: $19,842, Zn:$2,315 .

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Continuing to Advance Project, Only Financing and Permits Remain

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Highly Experienced Management Team and Board

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Quebec Has Permitted Many Mines

APPROVAL EXPECTED: 2014

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Financing Options

RNC intends to pursue project financing options that minimize shareholder dilution as it did during the feasibility study stages

• In addition to the target of approximately $500- 600 million in project debt, there

are a number of other sources of potential financing which will likely be less dilutive than raising equity

• Sale of direct minority interest in project
• Subordinated debt structures
• Monetization of precious metal streams (PGMs)
• Offtake financing
• Conversations have occurred with multiple parties during the past year and are
• ngoing
• Several additional interested parties elected to wait until the feasibility study

was completed before entering into further discussions

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A Leading Base Metal Project Shovel Ready for Coming Development Cycle

Values above sourced from latest publicly available technical reports filed on each project and reflects the base case pricing used in each report. Producing properties sourced from financial statements for recent periods selected when pricing consistent with long-term average pricing. Sources are detailed on slide 43 of this presentation.

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SPC - Transaction Overview

• RNC has acquired 6 MM units of Sudbury Platinum Corporation (“SPC”) for C$0.25 per

unit, each unit comprising a share and full warrant. Each warrant is exercisable at C$0.45 per share for 18 months

• SPC is private subsidiary of Transition Metals Corp. (83% interest). RNC’s investment

represents a 25% interest of the issued and outstanding shares

• RNC would obtain 1 seat on the SPC Board (1 of 5 members)
• RNC has right to maintain pro rata share
• SPC’s key asset is an option to earn up to a 70% interest in the Aer-Kidd property located
• n the Worthington Offset Dyke in the Sudbury Basin
• The investment is consistent with RNC’s strategy to target high quality Ni-Cu-PGM and
• ther base metal opportunities and RNC’s market outlook for nickel with a structural

shortfall in supply through the end of the decade

• The investment allows RNC to gain exposure to one of the world’s highest potential

nickel exploration opportunities with an exploration team that has a proven track record

• f success in the Sudbury basin
• Aer-Kidd is also one of few properties in the Sudbury basin that does not have a captive offtake

with either Vale or Glencore

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Aer-Kidd – Significant Untested Potential

Worthington Offset Longitudinal Section, Looking Northwest

Victoria (deep): 14.5 Mt

2.5% Ni, 2.5% Cu, 7.6 g/t PGM2

• 2. Resource reported by KGHM in news release

dated January 16, 2012

Totten (deep): 10.1 Mt

1.5% Ni, 1.97% Cu, 4.8g/t PGM1

• 1. Resource reported by Inco Limited in news

release dated January 18, 2001

Totten

Vale

Aer-Kidd

McIntyre Vale

Victoria

KGHM (QuadraFNX)

Untested Potential At Depth

2.6 km 4.3 km

Mined Out Massive & Disseminated Sulphide DDH Pierce Point Mineralized Non-mineralized

Howland Robinson Rosen Source: Sudbury Platinum Corp.

Appendix 1 Sources

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Dumont Feasibility Study Highlights

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After-Tax NPV8% (US$ millions)

$1,137

After Tax IRR

15.2%

Initial Capital (US$ millions)

$1,191

Project Life (years)

33 52.5 ktpd 2016-2020 105 ktpd 2021-20361 Stockpile 2036-2049 Average

Ni Production (kt/year)

33 51 31 41

Net (C1) Cash Costs (US$/t)

$8,840 $9,833 $9,171 $9,502

Concentrator Nickel Recovery

53% 48% 34% 43%

Strip Ratio2

0.75 1.22

• 1.13

NSR (US$/t)

$30.90 $22.63 $13.67 $19.40

Site Operating Costs (US$/t)

$11.39 $10.31 $5.34 $8.27

• 1. 2036 is a transition year with expit operations being completed by end of Q2 2036.
• 2. Totals include pre-stripping of 55 Mt, including 21 million tonnes of ore and 34 million tonnes of waste before mill production commences.

Source: RNC news release dated June 17, 2013

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Feasibility Study Capital and Operating Cost Summary

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($ millions) Initial Capital Expansion Capital LOM Capital1 Mine 304 194 879 Process Plant 523 472 1,220 Tailings 32 55 242 Infrastructure 83 24 107 Indirect Costs 149 73 222 Contingency 100 73 173 Total 1,191 891 2,843 Operating Costs $ per tonne $ per tonne2 Mining 3,285 3.50 Processing 4,034 4.30 G & A 441 0.47 Total Site Cost 7,760 8.27 TC / RC 2,800 By-products (1,058) Total 9,502

Capital Cost Summary

2 $/tonne ore milled .

Mining cost $/tonne material mined $1.49

Operating Cost Summary

1 Life-of-mine capital includes $761 million of sustaining capital

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Feasibility Study Summary

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1. Includes transportation of concentrate 2. Based on $19,842/t ($9/lb) Ni, $26,455/t($12/lb) Co, $1,500/oz Pt, $750/oz Pd ; revised PFS is base case + trolley assist. 3. Based on price and exchange rate assumptions contained in “Key Assumptions” table found on slide 31 of this presentation 4. Average over 20 year-mine life. Over 33-year project life average annual EBITDA is $381 million per year and average annual cash flow is $228 million per year.

Units PFS

• Dec. 16, 20112

Revised PFS

May 14, 20122

Feasibility Study

• Jun. 17, 20133

Ore Mined Mt 1,070 1,066 1,179 Strip Ratio Waste : Ore 1.18 1.19 1.13 Nickel Recovery % nickel 41 45 43 Project Life Years 31 31 33 Annual Production (contained) Nickel (life of mine) Mlbs (kt) 96 (44) 108 (49) 104 (47) Nickel (life of project) Mlbs (kt) 82 (37) 91 (41) 90 (41) Cobalt (life of project) Mlbs (kt) 6 (3) 4 (2) 4 (2) PGEs (life of project) Koz 18

• 19

Total C1 Cash Costs $/lb Ni ($/t Ni) $4.68 ($10,582) $4.32 ($9,524) $4.79 ($10,560) By-product Credits $/lb Ni ($/t Ni) $0.55 ($1,213) $0.25 ($551) $0.48 ($1,058) Net C1 Cash Costs $/lb Ni ($/t Ni) $4.13 ($9,105) $4.07 ($8,973) $4.31 ($9,502) Average EBITDA4 $M $410 $470 $427 Average Free Cash Flow4 $M $228 $262 $238 Initial Capital $M $1,112 $1,112 $1,191 Total Capital $M $2,578 $2,680 $2,843 Pre-Tax NPV8% $M $1,918 $2,437 $2,003 Pre-Tax IRR 20.2% 23.5% 18.7% Post-Tax NPV8% $M $1,083 $1,420 $1,137 Post-Tax IRR 16.6% 19.5% 15.2%

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Source: RNC technical report dated July 25, 2013, available on www.sedar.com. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Resource Category Quantity Grade Contained Nickel Contained Cobalt (000 t) Ni (%) Co (ppm) (000 t) (Mlbs) (000 t) (Mlbs) Measured 372,100 0.28 112 1,050 2,310 40 92 Indicated 1,293,500 0.26 106 3,380 7,441 140 302 Measured + Indicated 1,665,600 0.27 107 4,430 9,750 180 394 Inferred 499,800 0.26 101 1,300 2,862 50 112 Resource Category Quantity Grade Contained Palladium Contained Platinum (000 t) Pd (gpt) Pt (gpt) (000s ounces) (000s ounces) Measured 372,100 0.024 0.011 288 126 Indicated 1,293,500 0.017 0.008 720 335 Measured + Indicated 1,665,600 0.020 0.009 1,008 461 Inferred 499,800 0.014 0.006 220 92 Resource Category Quantity Magnetite Contained Magnetite

(000 t) (%) (000 t) (Mlbs)

Measured Indicated 1,114,300 4.27 47,580 104,905 Measured + Indicated 1,114,300 4.27 47,580 104,905 Inferred 832,000 4.02 33,430 73,702

Mineral Resource Statement (inclusive of mineral reserves), Dumont Nickel Project, SRK Consulting (Canada) Inc., April 30, 2013

Grades Contained Metal Category Quantity (000 t) Ni % Ni Co (ppm) Pd (gpt) Pt (gpt) Ni Mlbs Co Mlbs Pd 000 oz Pt 000 oz Proven 179,600 0.32 114 0.029 0.013 1,274 45 166 77 Probable 999,000 0.26 106 0.017 0.008 5,667 233 550 250 Total 1,178,600 0.27 107 0.019 0.009 6,942 278 716 328

Mineral Reserve Statement, Dumont Nickel Project, Snowden, June 17, 2013

1 Billion Tonne Reserve

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Parameter 2015 2016 2017 Long Term Nickel Price ($ per pound) $9.50 $10.00 $10.50 $9.00 Nickel Price ($ per tonne) $20,944 $22,046 $23,148 19,842 US$/CDN$ exchange rate $0.95 $0.95 $0.90 $0.90 Platinum Price ($ per ounce) $1,800 $1,800 $1,800 $1,800 Palladium Price ($ per ounce) $700 $700 $700 $700 Cobalt Price ($ per pound) $14 $14 $14 $14 Cobalt Price ($ per pound) $30,865 $30,865 $30,865 $30,865 Electricity (CDN$ per kilowatt hour) $0.0445 0.0445 $0.0445 $0.0445 Oil ($ per barrel) $90 $90 $90 $90

Note: Price assumptions for nickel, cobalt, platinum and palladium based on average forecasts for group of five institutions currently covering RNC where published forecasts are available (4 of 5 analysts for long-term nickel price as of April 25, 2013). Oil price assumption based on Thomson Reuters’ analyst consensus estimates.

Price Assumptions

Project Source Price Assumptions Au; Ag; Pd; Pt: $/oz, Others $/lb Additional Comments

RNC Dumont Technical report dated, July 25, 2013 Long term Ni $9; Co $14; Pt $1,800; Pd $700 All figures based on feasibility study highlights reported in news release. Inmet, Cobre Panama Basic engineering report, May 2012 Cu $2.75; Au $1,250; Mo $15.00; Ag $20 All figures quoted directly from basic engineering report except NSR/revenue per tonne, calculated by dividing total project NSR by total ore milled. Quadra FNX, Sierra Gorda Technical report, June 8, 2011 Cu $2.50; Mo $12.00 Au $1,000 All figures except NSR directly from technical report. NSR calculated using Table 23.23 by multiplying total payable metals X (base metal price assumptions less treatment charges for each metal outlined in Section 23.4) divided by total ore milled. Site operating costs calculated as operating costs less transport and port costs. HudBay Minerals Constancia Technical report,

• Oct. 15, 2012

Long term Cu $2.75; Mo $14.00; Au $1,150; Ag $23.00 All figures quoted directly from technical report. Terrane, Mt. Milligan (Thompson Creek) Technical report, October 23, 2009 Cu $2.00; Au $800; All figures quoted directly from technical report. Capstone, Santo Domingo Technical Report,

• Sep. 28, 2011

Cu $2.50; Magnetite $1.00/dmtu Fe; Au $1,000 All figures directly from technical report. Site operating costs calculated as operating costs less port facility costs.

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Summary of Source Information

Appendix 2 SPC Transaction

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High Priority Drill Targets Already Identified Significant Geophysics Potential Remaining

Source: Sudbury Platinum Corp

Drill Targets & Historic Drilling

Long Section

Howland Pit AE-13: 0.20m @ 4.43%Ni, 6.95% Cu, 23.0g/t PGE’s U9E-23: 30m @ 0.33% Ni, 1.3%Cu Robinson Mine U-806: 6.8m @ 1.6%Ni, 0.80% Cu AE-1B: 2.34m @ 1.63%Ni, 0.70%Cu U9E-2: 28.65m @1.46%Ni, 0.60% Cu W03-03AW1: 8.90m @ 1.46%Ni, 0.56%Cu Rosen Mine U-610: 7.3m @ 1.0%Ni, 1.74% Cu W03-05: 1.0m @ 2.73%Ni, 0.35%Cu AE-07: 2.0m @ 1.2%Ni, 0.83%Cu AE-07A: 8.1m @ 0.30%Ni, 1.2%Cu

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SPC Management Team - Significant Sudbury Experience and Track Record of Discoveries

Scott McLean | Chairman & CEO - B.Sc. P.Geo.

• 23 years with Falconbridge/Xstrata (Responsible for the

Sudbury Exploration Investment)

• 10 years exploration in Sudbury Basin, responsible for 100k

m drilling/yr & 20-25 employees

• 2004 PDAC Prospector of Year (Nickel Rim South)
• Past president of APGO (Association of Professional

Geoscientists of Ontario)

Grant Mourre | President & COO- M.Sc., P.Geo.

• 14 years minerals exploration within NA focused primarily
• n Ni-Cu-PGE’s.
• 7 years with Falconbridge/Xstrata & Inco in Sudbury Basin
• 10 years deep drilling in the Sudbury Basin
• Masters thesis funded by Inco (Vale) & NSERC on Copper

Cliff offset dyke

Kevin Stevens | Chief Geophysicist - M.Sc. P.Geo.

• 27 years mineral exploration and research geophysics
• 12 years as Falconbridge Principal Geophysicist in the

Sudbury Basin

• 2004 PDAC Prospector of Year (Nickel Rim South)
• Geophysics (EM modeling) expert
• Developed key geophysics techniques for sulphide

detection at depth (3D EM and Radio-Imaging)

2004 Prospector of the Year Nickel Rim South Mine

Source: Sudbury Platinum Corp.

# Year Deposit Resources (t) Status 1 1994 Onaping Depth 17,000,000 Study (deep) 2 1995 Norman West 7,500,000 Idle (deep) 3 1997 Creighton West 10,000,000 Idle (deep) 4 1997 Fraser Morgan 8,000,000 Development 5 2001 Nickel Rim South 17,400,000 Production 6 2001 Beeper 3,904 Idle 7 2001 Roland Lake 500,000 Idle 8 2002 Rapid River 70,000 Idle 9 2003 Bowell Open Pit 363,000 Idle 10 2004 Capre Lake South 580,000 Idle 11 2006 Onaping-Craig Corner 250,000 Depleted 12 2007 Onaping 2 Zone 80,000 Depleted Total Ni Discovered 61.7 million

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Notes

www.royalnickel.com 48

Corporate Overview

Share Structure:

• Basic Shares Outstanding1:

94.4 million

• Options (average exercise price: C$0.67)

8.9 million

• Deferred/Restricted Share Units

2.1 million

• Contingent Shares

7.0 million

• Fully Diluted Shares Outstanding:

112.4 million

• Directors and Officers Share Ownership:

~9%

• Largest Shareholder –

RAB Special Situations (Master) Fund Limited: ~17% Balance Sheet Highlights2:

• Cash and Cash Equivalents:

C$9.7 million

• Current Tax Receivable:

C$2.1 million

• Working Capital:

C$10.2 million

• Market Capitalization:

C$66 million

1. Shares outstanding, fully diluted shares outstanding and shareholdings as at May 8, 2014 2. Balance sheet highlights as at March 31, 2014; market capitalization at May 8, 2014