Portfolio: Toubal Licence No. 163

Company

Tougue Bauxite and Alumina Corporations S.A.

Licence

Toubal No. 163

Location

North Guinea

Activity

Resource Statement

Environmental and Social Impact Study (ESIA)

Feasibility Study

Tougue Bauxite and Alumina Corporations S.A. ("Toubal"), a subsidiary of AAM, owns one advanced exploration license (bloc 163) on a total area of 750 km2 in the Tougué Préfecture (North Guinea) and hosts estimated resources of more than one billion tonnes of high grade bauxite (42.6% Al203 and 3.2% Si02).

An Environmental and Social Impact Notice (N.I.E.S) has been completed by the Guinean Office of Engineering studies and Environment (B.E.G.I.E). Progress will be made to complete the full ESIA during 2017.

The maiden Inferered Mineral Resources Estimate has been completed and issued by SRK Consulting and the highlights are as follows:

• Inferred Mineral Resources Estimate of 722 million metric tons, averaging 42.6% total alumina and 3.2% total silica within three main deposit plateaux; Sibiko, Soumbalako and Tiankounguele.

• Estimates are based on assay results of 744 auger drill holes that were completed in the 2011 exploration campaign at 150m x 150m, 300m x 300m and 600m x 600m spacing.

Another drilling campaign was undertaken in December 2016 and January 2017 consisting of drilling 145 holes (1533 m) to upgrade the existing resource to a higher confidence Measured Mineral Resource category on Soumbalako and Sibiko plateaux. Currently, only three of the target plateauxs have been explored. The AAM management expects the facility to grow exponentially as further drilling is completed on the undrilled 77% of deposits.

The Toubal license is currently being considered for development into a vertically integrated bauxite mining and alumina refinery project in combination with a bauxite export project, with alumina production outputs of 0.6 million metric tons per annum and 1.8 million metric tons per annum being considered, with accompanying 3.2 million metric tons per annum and 4.5 million metric tons per annum bauxite export tonnages respectively (5.0 million metric tons per annum and 10 million metric tons per annum total bauxite mined respectively).

Subject to further infrastructure being in place, Toubal suggests that a bauxite export operation may be established to generate revenue whilst an alumina refinery is being constructed.