Nickel Overview:
The Structural Shortfall in Supply Begins
Mark Selby, President & CEO
Royal Nickel Corporation
January 13, 2015
Disclaimer
Cautionary Statements Concerning Forward-Looking Statements
This presentation contains "forward-looking information" including without limitation statements relating to the future price and supply
and demand and the positive implications the Indonesian ore export ban will have on the outlook for nickel; and statements relating to
construction and production at the Dumont Nickel Project.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual outcome,
events, results, performance or achievements of RNC to be materially different from any future outcome, events, results, performance or
achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others:
future actions taken by the Indonesian government as well as mining companies operating in Indonesia; general business, economic,
political and social uncertainties; availability of alternative nickel sources or substitutes; and financing to complete construction and
achieve production at Dumont. 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 outcome, events or results to differ materially from
those described in forward-looking statements, there may be other factors that cause outcome, 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
otherwise, except as required by applicable securities laws.
All currency references in U.S. dollars, unless otherwise stated.
TSX: RNX
www.royalnickel.com
1
Summary
Nickel entering a multi-year period of structural nickel supply shortages

Nickel demand continues to be robust - growing at an average of 6.8% since 2010



Existing sources of nickel supply will struggle to provide required overall supply
Supply to decline in 2015-2016 and net supply growth of just over 2% by 2020





“Big 15” nickel operations are shrinking with little prospect of potential expansions
Scrap supply deeply tapped the “pool” in 2006-2007; pool “contaminated” by significant 200 series production
growth and indeterminate specifications
“Tidal Wave” of projects started in 2007-2010 continue to struggle
Project cupboard largely “empty” and pace of discoveries a fraction of what’s required -now need
~2 Voisey’s Bay and 3-4 Nova-Bollinger EACH year
Nickel market will depend on Indonesia, Philippines and lower grade sulphides





Nickel demand forecast to grow by more than 6% in 2014. Strong demand expected to continue in 2015
Large increase in LME stocks more than compensated by massive destocking in China
Indonesia commitment to ban remains resolute
China took 6 years to get to current NPI levels – how many $ billions and how long in Indonesia given lack of
infrastructure ? Indonesia to become world’s largest nickel producer but will be mid-2020s at least to get there
Philippines – possible ban? How much saprolite exports can be supported ?
Lower grade sulphides with significant infrastructure and low cost power a competitive alternative?
Long way to go in nickel cycle – only 14 months into cycle that typically takes 16-29 months to unfold

Past cycles indicate that nickel prices could get to $30-$50,000 per tonne by early 2016 and structural supply
shortages to maintain prices at above average price levels through end of decade
www.royalnickel.com
2
Nickel Demand
Evolution of Chinese Nickel Demand
As an economy industrializes, demand moves from more basic materials like
carbon steel into stainless steels and ultimately into specialty alloys that require
a lot of nickel and will drive non-stainless nickel consumption in China
Carbon Steel
Stainless Steel
2010 Kg/capita consumption
600
500
400
300
200
100
0
503
441
Nickel
2010 Kg/capita consumption
China
2013
20
China
2010
15
1.5
18.4
13.5
2010 Kg/capita consumption
China
2013
1
1.1 1.1
10
203
China
2010
5
0.5
3.8
0
China
2013
0
China
2010
0.2
Source: World Steel Association, INSG, World Stainless Steel Statistics, Woodmac, Macquarie Research, RNC Analysis
www.royalnickel.com
3
Chinese Nickel Demand
At Least ½ Million Tonnes More to Go …
Despite huge growth in demand, Chinese per capita consumption is still only just
over half that of industrial economies such as Germany and Japan
Nickel Consumption per Capita
2010 (kg/capita)
1.2
1.1
1.1
1.0
0.8
0.7
0.6
0.4
0.4
At Japanese and German per
capita consumption levels,
Chinese nickel demand alone
would increase by nearly
½ million tonnes annually
from 2013 to 2020
0.2
0.0
Source: Wood Mackenzie, RNC Analysis
www.royalnickel.com
4
LME Inventory Increase Dwarfed by Massive
Destocking
A key market factor has been increase in LME nickel stocks – Qingdao trading
scandal forced liquidation of known off-warrant stocks in China; however, this
increase in visible stocks has been dwarfed by massive destocking of other nickel
stockpiles in China
LME Nickel Stock Increase and China Nickel Destocking
(kt)
400
350
300
250
200
150
100
50
0
?
99
Other Ore Stocks
China Nickel Exports1
Indonesia
Port Ore Stocks
143
137
YTD Nov 2014 LME Ni
Stock Increase
YTD Nov 2014 China
Nickel Destocking
1. YTD October 2014, adjusted for YTD November 2014
Source: metalprices.com, Antaike, GTIS, RNC analysis
www.royalnickel.com
5
Nickel Demand
Rest of World (ROW) Demand
ROW demand is forecast rebounded in 2014 for the first time since 2010
Global Nickel Demand ex-China
2000 – 2014F (Kt)
1,067
1,060
987
Other
915
918
894
907
909
2010
2011
2012
2013
842
954
South Korea
Taiwan
Japan
Western Europe
U.S.
2000
//
2005
//
2007
2008
2009
2014F
Source: Wood Mackenzie, CRU, RNC Analysis
www.royalnickel.com
6
WHERE WILL NEW NICKEL SUPPLY COME FROM ?
Existing sources of nickel supply will struggle to provide required supply; overall supply
to decline in 2015-2016 and net supply growth of only just over 2% by 2020

“Big 15” nickel operations, more than 60% of supply in 2005, have actually shrank by 3% and are likely to
continue to decline going forward with little expansion potential

Increased scrap supply requires significantly higher prices – market went deep into the scrap “pool” in 20062007. Scrap supply declined by 12% since 2006, “pool” contaminated by significant 200 series growth
production and indeterminate specifications in China

“Tidal Wave” of projects started in 2007-2010 continue to struggle and will contribute only another 100ktpa of
supply by the end of the decade

Project cupboard now largely empty and pace of discovery is only a fraction of what’s required to meet
demand - ~ 2 Voisey’s Bay or 4 Nova-Bollinger EACH year (but only finding a few per DECADE)

Nickel market will depend on Indonesia, Philippines, and lower grade sulphide projects
 Indonesia to become largest nickel producer and one of world’s largest stainless producers but how long
and how many billions?
 Took China 7 years to get to current levels, why expect Indonesia is going to do faster with far less
infrastructure in place – should it take 10 years ? 15 years ?
 Will Philippines also implement ore export restrictions ? What level of saprolite exports can physically be
supported ? What level of mining activity will communities allow to occur ?
www.royalnickel.com
7
Core Nickel Mines Depleting
The “big 15” nickel operations have experienced declining production,
while NPI production in China, fed largely by Indonesian ore, met growth
in demand through 2013
World Nickel Production
2006
2013
“Tidal Wave”
(new projects
commissioned
in 2007-10)
8%
32%
25%
Other
Other
“The Big 15”
42%
“The Big 15”
NPI
3%
65%
NPI
25%
Source: Wood Mackenzie, RNC Analysis
www.royalnickel.com
8
Output from the “Big 15” Nickel Operation Has
Declined Despite Strong Demand Growth
Output from the “big 15” nickel operations declined overall by 3% and
declined in 10 out of 15 operations from 2006 to 2013
250
Nickel Production from Top 15 Operations (kt)
200
2006
2013
150
100
50
0
Source: Wood Mackenzie, RNC Analysis
www.royalnickel.com
9
Stainless Steel Scrap
An Important Source of Nickel Supply
As nickel prices have remained low relative to spike in prices in 20062007, scrap has declined significantly as a proportion of supply
World Nickel Production (including SS scrap)
2006
2013
28%
40%
Scrap
“The Big 15”
Scrap
39%
Other
Other
19%
6%
2%
“Tidal Wave”
(new project s)
18%
“The Big 15”
30%
NPI
18%
NPI
Source: Wood Mackenzie, RNC Analysis
www.royalnickel.com
10
Nickel in Stainless Steel Scrap
Higher Prices Needed to Generate Incremental Volume
Nickel industry high-graded the “scrap mine” in 2006-2007. Market requires even higher
nickel prices to generate a similar amount of incremental scrap in the future.
Nickel in Scrap
(Scrap nickel contained in stainless steel output)
Nickel in Scrap (t)
Scrap Ratio
50%
100+ kt increase
equal to adding
Vale Sudbury and
Manitoba
Ni Scrap in Stainless (tonnes)
850
800
45%
750
700
650
40%
600
550
500
Scrap Ratio (% Ni scrap in stainless)
900
35%
Source: Wood Mackenzie
www.royalnickel.com
11
Scrap Pool is Getting “Contaminated”
Increased proportion of 200 series nickel, particular in China, with
inconsistent specifications, will decrease relative amount of scrap available
at a given price.
200 Series Stainless Steel Output
( % of austenitic stainless production)
30%
Chinese Stainless Steel Consumption
( % of global output)
50%
45%
25%
40%
20%
35%
15%
30%
10%
25%
Source: Wood Mackenzie, RNC Analysis
www.royalnickel.com
12
China NOT Self-Sufficient in Nickel
Chinese domestic production not likely to add significant volumes of nickel
Chinese Self-Sufficiency
Mine Supply as a % of Demand (2012)
85%
67%
54%
57%
29%
18%
12%
<5%
Platinum
Palladium
Nickel
Copper
Iron Ore
(62% Fe-eq)
Lead
Aluminium
(Bauxite)
Tin
Zinc
Source: USGS, Wood Mackenzie Ltd., Macquarie Research, RNC Analysis
www.royalnickel.com
13
Nickel Supply – 2007-2010 Projects
A “Tidal Wave” that was more like a “Little Ripple”
2014 was another year where the large projects of the “tidal wave” of ~500kt of new
supply that began at the end of last nickel boom, continued to struggle
Despite
more than 400kt
of capacity already built,
production rates in 2013
remain at only a fraction
of name plate capacity
www.royalnickel.com
14
Nickel Supply — “Tidal Wave” Projects
New supply growth from the “tidal wave” of new projects is still ~50% of capacity
and RNC expects that it can reach 60%+ by 2020
Potential Supply
2010-2020
490
Higher risk
242
Lower risk
248
Nickel Supply
In Construction
2011-15
Nickel Supply “Tidal Wave”
Ramping Up or In Construction 2010-2015 (Kt)
RNC Forecast
Annual
WoodMac Actual WoodMac
Project
Capacity 2012
2013F
2013
2014F 2015 2020
VNC (Goro)
60
4
27
16
23
Ambatovy
60
0
33
25
42
Koniambo
60
0
16
1
14
Specifics
Onca Puma
55
6
2
2
11
Removed
Talvivaara
50
13
22
9
10
Barro Alto
40
22
31
25
26
Ravensthorpe
39
33
41
38
46
Ramu
33
5
13
11
21
Taganito
30
0
0
0
25
Santa Rita
26
19
18
16
11
Eagle
17
0
0
0
3
Niquelandia
10
0
5
0
10
Kevitsa
10
4
10
9
10
Total
490
106
218
153
252
280
345
Source: Wood Mackenzie Ltd., RNC Analysis
2013F based on Q4 2012 data
TSX: RNX
www.royalnickel.com
15
“Tidal Wave” Cleaned out the Cupboard

The bulk of the current wave of projects have been known for many decades: either
discovered/developed too late during the 1965–75 period or inferior to other projects
that were developed

Most of the “Tidal Wave” sat “in the cupboard” for many decades
(even back to the beginning of the last century)
Project
Discovery
Koniambo
Early 1900s
Goro
Early 1900s
Ramu
Early 1960s
Ambatovy
Early 1960s
Barro Alto
Early 1960s
Onca Puma
Mid 1970s
Talvivaara
Early 1980s
www.royalnickel.com
16
New Nickel Supply
Fundamental Issue: An Empty “Project Cupboard”
The fundamental issue facing the nickel industry by 2015–2016 is an empty
“project cupboard” outside Indonesia


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
Laterite
(ferronickel)
Laterite
(HPAL)
Sulphide
Project Cupboard
2001 (20+kt)
TOTAL: 500+ kt
Project Cupboard
2013 (20+kt)
TOTAL: 150+kt
Barro Alto
Koniambo
Onca Puma
Tagaung Taung
Ambatovy
Goro
Ramu
Ravensthorpe
Weda Bay
Talvivaara*
Kabanga
Voisey’s Bay
Weda Bay
Dumont
Enterprise
Kabanga
Nova-Bollinger
Laterite (leach)
Sulphide
*bioheapleaching process
www.royalnickel.com
17
Significant Nickel Discoveries by Decade
A Fraction of the Required Pace
Pace of discovery is only a fraction of what’s required to meet demand –
now the equivalent of ~ 2 Voisey’s Bay or 4 Nova-Bollinger discoveries EACH YEAR
1990s
2000s
2010s
Voisey’s Bay
Eagle
Nova Bollinger
Enterprise
Nickel Rim South
Musgrave
Araguia
Sakatti
Industry has only managed to deliver a few discoveries per DECADE
www.royalnickel.com
18
Indonesian Ore Export Ban
In January 2014, RNC correctly predicted Indonesian ban would remain resolute
through 2014 and little production capacity would be built in Indonesia in 2014
Indonesian
Ore Export
Ban
Indonesia
Production
1.
2.
3.
4.
5.
6.
RNC
January 2014
Market
H1 2014
Market
H2 2014
“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.”
“Indonesian restrictions are likely to
result in a higher cost curve for NPI in
the medium to long term as producers
source lower grade ore from
elsewhere; however, we do not
anticipate a material curb in NPI
supply.”
“it is clear that Indonesian imports did
collapse in 2014 and have never
rebounded since the ban came into
force.”
“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.”
“there could be around 20kt Ni/a of
new production capacity in Indonesia
by the end of 2014, rising to over 190kt
Ni/a by 2016.”
“progress is slowing and our 2015
forecasts have been downgraded from
30kt to 20kt.”
RNC, January 21, 2014 “Indonesian Ore Export Ban and Its Impact on the Nickel Market”
Scotiabank, January 16, 2014 “Updated Commodity Price Outlook”
Woodmac, April 2014 “NPI in Indonesia – When and at What Cost?”
Credit Suisse, November 19, 2014 “Steel/Raw Materials Update”
Macquarie, November 13, 2014 “Commodities Comment”
Woodmac, October 2014 “Global Nickel Short-term Outllook”
www.royalnickel.com
“following a visit to Indonesia in late
September it became clear that the rate
of progress on all of the projects, with
the exception of that of Tsingshan, was
much slower than had been indicated by
the companies in question and so we
have downgraded these to probable
projects, thereby removing them from
our base case.”
19
NPI Production Beginning to Decline and Declines
Expected to Continue
Chinese Nickel Pig Iron Production
(Annualized Monthly Production, Kt)
600
145 kt decline;
~7% of global supply
500
400
152 kt decline;
~8% of global
supply
300
297 kt decline;
~15% of
global supply
200
100
0
Source: Antaike, RNC analysis
www.royalnickel.com
20
What Will Be Capital Cost Intensity of NPI Projects ?
000s per tonne initial capacity
Will it be the $50-85,000 tpa seen in other recent FeNi projects, or will it approach the
performance of NPI plants China ? Please note that Dumont and other open pit sulphide
mine/mill operations are less capital intensive than other Western World projects.
100
90
80
70
60
50
40
30
20
10
0
Capital Intensity For Selected Nickel Projects
83
73
Sulphide
Laterite
47
36
53
92
79
60
47
37
Sulphide – Open Pit
Laterite – Ferronickel
Laterite – HPAL
Source: RNC technical report dated July 25, 2013, publicly available disclosure, Wood Mackenzie Ltd. (figures shown to two significant digits)
www.royalnickel.com
21
Chinese Mining Projects Outside China
Similar/Worse Performance to Western Producers ?
China’s recent track record outside China suggests it could be no better than other
Western projects.
Selected Examples – Recently Completed Chinese Mining Projects Outside China
Initial
Capex
Project Location Construction Estimate
Base
Metals
North
America
2007
Base
Metals
South
America
2011
2006
Bulk
Australia
Materials
Revised
Capex
~$500 M
$1 B (2013)
Expected
Start
Actual
Start
2010
2013
$1.5 billion $2.2B (2007) and
(2007)
$3.5 B in (2013)
2012
2013
$2.5 B
(2006);
$4 B (2009)
2010
2012
$9.9 B (2013)
www.royalnickel.com
Sources
Woodmac; Company
news release date
November 5, 2013;
Globe and Mail, Oct
16, 2009
Bnamericas.com,
January 18, 2013;
Worldal.com, June
13, 2007; Company
Company; Wall Street
Journal August 26,
2013; DOW JONES
SEPTEMBER 16, 2014;
Bloomberg, April 16,
2014
22
Indonesia is the Critical Factor for the Nickel Market
With the ore ban resolutely in place, Indonesia is in position to become the
world’s largest nickel producer and one of the largest stainless producers

How quickly can 350kt of projects be built to replace NPI production from
Indonesian ore in China ?
 If China took 6 years to create 450ktpa of nickel production,
how long would it take for that capacity to be replaced in Indonesia given the
lack of infrastructure, skilled labour, and power ?
 Will it happen by early 2020s ? Mid 2020s ? Late 2020s ?

How willing are financial institutions to provide the billions of financing required to
replace 350kt of Chinese NPI production from Indonesian ore?
 Financing requirements would be $17-28 billion (at recent global examples of
$50-$85,000 per tonne)
 Will they require projects to be successfully commissioned before financing the
next ones ?
www.royalnickel.com
23
Nickel – Portside Indonesian Ore Stocks and Prices
Philippines Laterite Ore Price
Nickel Ore Prices
140
(2014 )
130
Chinese Nickel Ore Stocks
Total (Mt)
Laterite 1.8% Ni Ore
(12-18% Fe)
120
110
25
US$/wmt FOB
100
20
90
80
70
15
60
50
10
40
30
20
Laterite 1.5% Ni Ore
(Philippines 25-30% Fe)
5
17.0
8.4
17.5
8.3
17.4
7.8
17.6
7.4
18.1
7.2
18.9
7.2
18.3
6.4
17.6
6.3
16.9
6.5
16.6
6.0
16.2
5.4
15.1
5.5
14.7
5.6
14.4
5.6
14.3
5.5
14.0
5.3
13.5
5.8
13.2
6.1
13.1
6.1
12.9
6.5
12.4
9.9
11.9
10.7
11.3
11.4
10.9
11.8
10.7
12.3
10.5
12.5
10.3
12.5
10.1
12.9
10.0
13.2
9.8
13.6
9.4
14.1
9.0
14.7
8.7
14.9
8.7
15.0
8.6
15.2
8.5
15.1
8.2
15.8
7.9
16.2
7.9
16.2
7.8
15.9
7.8
16.1
7.6
16.1
7.5
16.0
7.3
15.8
7.0
15.6
7.0
15.3
6.8
14.9
6.4
14.6
6.3
14.5
6.3
14.4
150
Portside nickel ore stocks in China
10
0
Philippines
ore
Indonesia
ore
0
Source: Ferroalloynet.com Limited
www.royalnickel.com
24
Philippines Also Critical to Global Nickel Supply
The Philippines ability and willingness to increase saprolite supply to China
is another critical issue for nickel supply

Will Philippines implement ore export restrictions as well ?
 In absence of a ban, will Philippines attract additional investment ?

What level of mining activity will communities allow to occur ?
 Will communities support significantly higher levels of mining activity ?

What level of saprolite exports can physically be supported ?
Recent increase in shipments can come from two possible sources
 Stockpiles ?
 Given low 1.5% saprolite prices of <$20 in 2013 , a likely possibility
 Additional mining ?
 Given resource base, many deposits can generate 2+ tonnes of limonite per tonne
of saprolite. What price will be required to profitably mine saprolite if limonite
markets remain weak due to iron ore weakness ?
 How much saprolite production can be sustained at new mine in Tawi Tawi ?
www.royalnickel.com
25
Philippines Providing Little Additional Ore to Market
Philippines ore imports into China have increased, but are providing only a
fraction of the 50+ million tonnes imported from Indonesia. Portion of
increase in exports believed to be previously stockpiled material.
Chinese Nickel Ore Imports from Philippines
(2012-2014)
6
Nickel Ore (Millions of tonnes)
2014
Philippines Nickel Ore Exports to China
YTD November (Mt)
35
34.0
5
30
4
25
28.2
20
3
2
2012
15
2013
10
1
5
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0
YTD Nov 2013
Source: GTIS
www.royalnickel.com
YTD Nov 2014
26
Seasonality of Nickel Ore Exports to China
Historically, seasonality of Chinese nickel ore imports from Indonesia and
Philippines have been complementary. Following the January 2014
Indonesian ore export ban, Philippines shipping seasonality will become an
important short-term market factor
Source: GTIS, Macquarie Research
www.royalnickel.com
27
Why Sulphides Versus Laterites ?

Simpler mine/mill operations rather than fully integrated smelting/refining
operations

Conventional mine/mill operations have a long track record.
Breakthrough by BHP Billiton (originally WMC Resources) at Mt. Keith in
processing ultramafic ores has now operated successfully for almost 20 years

Capital intensity a fraction of largest scale laterite projects
For examples, RNC Dumont’s upfront capital estimate of $1.2 billion and $36,000
per tonne of nickel output is a fraction of the $5+ billion and capital intensity of
~$90,000 per tonne spent at Goro, Koniambo, Ambatovy

Inherently, sulphide minerals require much less energy intensive to liberate nickel
than laterites

Many deposits in more politically stable jurisdictions (e.g. Canada, Finland,
Sweden, Australia) versus (Indonesia, Philippines, PNG, New Caledonia)

Higher grade, low impurity concentrates like Dumont can be used in a roasted
form as a very high grade feed in any NPI / FeNi / stainless steel operation
www.royalnickel.com
28
RNC Forecast – Supply / Demand Balance
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 to balance the market
2,800
2,600
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Nickel Supply / Demand Forecast (Kt)
2,577 Demand
(underlying)
Structural
209
236
294
304
337
422 deficit
Demand
(constrained)
NPI
1,499
Existing
Supply
2010 2013 2014 2015 2016 2017 2018 2019 2020
Source: Wood Mackenzie Ltd, , RNC Analysis
www.royalnickel.com
29
Summary
Nickel entering a multi-year period of structural nickel supply shortages

Nickel demand continues to be robust - growing at an average of 6.8% since 2010

Existing sources of nickel supply will struggle to provide required overall supply to decline in 20152016 and net supply growth of just over 2% by 2020






Nickel market will depend on Indonesia, Philippines and lower grade sulphides




“Big 15” nickel operations are shrinking with little prospect of potential expansions
Scrap supply deeply tapped the “pool” in 2006-2007; pool “contaminated” by significant 200 series production
growth and indeterminate specifications
“Tidal Wave” of projects started in 2007-2010 continue to struggle
Project cupboard largely “empty”
Pace of discoveries a fraction of what’s required – now need ~2 Voisey’s Bay and 3-4 Nova-Bollinger EACH year
China took 6 years to get to current NPI levels – how many $ billions and how long in Indonesia given lack of
infrastructure ? Indonesia to become world’s largest nickel producer but will be mid-2020s at least to get there
Philippines – no ban, no investment ? How much saprolite exports can be supported ?
Lower grade sulphides with significant infrastructure and low cost power a competitive alternative?
Long way to go in nickel cycle – only 14 months into cycle that typically takes 16-29 months to unfold

Past cycles indicate that nickel prices could get to $30-$50,000 per tonne by early 2016 and structural supply
shortages to maintain prices at above average price levels through end of decade
www.royalnickel.com
30
Nickel Price Cycle Analysis — Consistent Rebounds
A 2nd half 2013 trough in nickel prices would imply a 1st half 2015 or 1st 2016
nickel peak as time from trough to peak is relatively consistent; either 16–19
months or 26–29 months (with 1 exception)
Nickel Market Price Cycle
Trough-> Peak (months)
Nov 1982 to April 1985
29
Jan 1987 to Mar 1988
14
Sep 1993 to Jan 1995
16
Oct 1998 to Mar 2000
17
Oct 2001 to Jan 2004
26
Nov 2005 to May 2007
19
Dec 2008 to Feb 2011
27
Nov 2013* to ?
14
0
5
10
15
20
25
30
Source: MetalPrices.com, RNC analysis
*Note: November 2013 was deemed low as price approached within $100/tonne of prior July 2013 low before Indonesian news turned the market
www.royalnickel.com
31
Nickel Price Cycle Analysis — Explosive Price Moves
Nickel price moves have always been explosive even without China. Again, why would it be
different this cycle?
Remember that a 150-300% price increase from a $13,000 trough is $30-$50,000 !!
Nickel Price Increase
(Trough to Peak)
700%
600%
500%
400%
300%
595%
300%=$50,000
200%
301%
100%
84%
157%
184%
371%
221%
39%
0%
Trough Q4 1982 Q1 1987 Q3 1993 Q4 1998 Q4 2001 Q4 2005 Q4 2008 Q4 2013
Peak Q2 1985 Q1 1988 Q1 1995 Q1 2000 Q1 2004 Q2 2007 Q1 2011
?
150%=$30,000
to Q3 2014
Source: MetalPrices.com, RNC analysis
www.royalnickel.com
32
Notes
www.royalnickel.com
33
Corporate Overview
Share Structure:

Basic Shares Outstanding1:
 Options (average exercise price: C$0.70)
 Deferred/Restricted Share Units
 Warrants (exercise price: C$0.98)
 Compensation Warrants (ave. price C$0.60)
 Contingent Shares
109.6 million
10.0 million
2.1 million
5.7 million
0.6 million
7.0 million

Fully Diluted Shares Outstanding:
135.0 million


Directors and Officers Share Ownership:
Largest Shareholder –
RAB Special Situations (Master) Fund Limited:
Balance Sheet Highlights2:
 Cash and Cash Equivalents:
 Current Tax Receivable:
 Working Capital:
 Market Capitalization:
1.
2.
~9%
~17%
C$6.1 million
C$0.5 million
C$4.2 million
C$39 million
Shares outstanding, fully diluted shares outstanding and shareholdings as at November 6, 2014
Balance sheet highlights as at September 30, 2014; market capitalization at November 6, 2014
TSX: RNX
www.royalnickel.com
34