Gunung Rosa Mine Q4 2012 An Indonesian gold mine that can be reopened immediately ASX - PCP

Important Notice and Disclaimer

Paramount Mining Corporation Limited has prepared this presentation based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. All dollar terms expressed in this presentation are in Australian dollars unless otherwise stated. To the maximum extent permitted by law, none of Paramount Mining Corporation Limited, its directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it. This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this presentation nor anything in it shall form the basis of any contract or commitment whatsoever. This presentation may contain forward looking statements that are subject to risk factors associated with gold exploration, mining and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. The information in this presentation that relates to exploration and production targets refers to targets that are conceptual in nature, where there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. Terry Holohan is a Member of the Institute of Materials, Minerals and Mining (UK) and is a Chartered Engineer with the Engineering Council (UK) as well a full time employee of Paramount and thus acts as their internal Competent Person. He has sufficient experience and knowledge relevant to an acquisition of this type as well as understanding the geology in the region and the engineering requirements for the development of such a mine under consideration. This knowledge and experience qualifies him as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). This presentation is based upon field inspection of the Gunung Rosa Project area, West Java, including the drill core and results during 2011/12 along with input from his associates who have worked on the property. All of the significant information reported herein was available to Mr Holohan and was reviewed by him for this presentation.

The Company ASX: PCP

Capitalisation (at 26 October 2012)
Share price Issued shares Unlisted options Convertibles Market Capitalisation 52 week high/low 8c ~318m 24m AUD 5.15m @ 4c (~130 million shares) ~AUD 25m 8.1c/3.7c

Shareholders
Top 20: 88%

Share Price Graph

Substantial shareholders Resource Global Finance Ltd 16% Zurily Resources 16% JP Morgan Nominees 13%

The People - Board and Management

Mohammed (Mo) Munshi, Non-executive Chairman: Geologist with Mining Engineering background and Businessman with >30 years of experience in finding, funding and developing mineral resource properties. Previously with Ashanti Goldfields, JCI, Normandy Mining and Ivanhoe Mines has worked extensively in Asia, Australia, Africa and South America Terry Holohan, CEO & MD: Metallurgist and Chartered Engineer with >30 years of experience in exploring, developing and operating mineral resources with specialist experience in precious and base metals. Previously with Anglo American, Gencor, Golden Dumps, BHP Billiton, Ivanplats and Platmin has worked extensively in Africa, Australia and Asia. Over the last ten years he has acted as a Competent Person on the TSX, ASX, AIM, and JSE bourses. Garry Taylor, CFO & Co. Sec: A Certified Practising Accountant with >30 years of experience in financial management, risk management, corporate governance and strategy implementation in publicly-listed resource companies. Previously with Mitsui & Co where he managed an international trading desk on steel products and has worked extensively in Australia and Asia Neil Rutherford, Head of Geology: Geologist with >35 years of experience in mineral exploration, project management and evaluation with specialist experience in base metals. A recognised industry consultant and lecturer in a range of mineral commodities has worked extensively in Australia, Asia (including Turkey) and Africa. Over the last fifteen years he has acted as a Competent Person on the ASX bourse Mufti Habriansyah, Non-executive Director: Resources and commercial lawyer with >15 years of experience in natural resources and corporate law in Indonesia. Previously a partner with S&T (Freehills) has advised to large mining corporations such as BHPB and PT Antam

Guy Anderson, Non-executive Director: Chemical Engineer, Chartered Accountant and Stockbroker with >30 years of experience in the resources industry. Previously with PWC, James Capel, CIBC WM and Ivanplats has worked primarily in Europe and Africa.

John Arbuckle, Non-executive Director: Accountant and corporate advisor with >20 years of experience in the minerals resources industry. Previously with Mount Gibson, Perilya, Rio Tinto, North Limited and Anaconda nickel his experience is predominantly in Australasia

The Asset - 125km from capital city Jakarta

GUNUNG ROSA PROJECT

The Asset - Gunung Rosa Mine

Purchasing 85% shares in PT CKP (72.25% attributable to PCP) containing the Gunung Rosa asset:
Mining License (IUP) valid for 20 years from 2010 Inferred Mineral Resource of 634koz of Au over 900m of 2.5km strike down to 250m still open on all sides 10-20m vein on surface could be accessed by open pit mining 600kg bulk underground sample collected measuring 11.4gpt Au Aeromagnetic Program and follow-up geochemistry confirmed presence of many significant geological targets including several parallel veins at surface

Original local shareholders will retain 15% shares represented, as Commissioner of PT CKP, by prominent captain of Indonesian Mining Industry Dr Ir Rozik Soetjipto
President and COO of PT Freeport, Indonesia Previously State Minister of Public Works and Director General of Mines

Not positioned in any Forestry or National Parks areas

Recent Highlights
Resource extended to 634koz Au (358koz) over 900m of strike
Inferred 3Mt at 6.8 gpt Au for 634koz Au at 1.5gpt cut-off By-products of 1Moz Ag, 59kt Zinc, 13kt Lead and 8kt Copper

Metallurgical Gold recovery presently 86% Base Case EBITDA of ~USD 1k/ounce AMDAL/EIA study being initiated Exploration confirmed strike 2.5km and located several veins parallel to main vein with exciting geochemistry values

The Asset A Brownfields Project

The Asset - Metal in the Ground

Above 900m RL at 3 gpt cut-off ~ Century
Grade at 11.73 gpt Au1 drilling supported by underground sampling Bulk metallurgical sampling at 11.4 gpt Au in Level 1 Lower levels flooded to be drained shortly

Below 900m RL at 1.5 gpt Au cut-off ~ PCP

Grade at 5.5 gpt Au2 not supported by underground sampling

Historically Dutch and Japanese miners recovered ~20koz of gold at >15gpt Au Alteration mineralogy in drill holes and Aeromag indicates the potential for a porphyry system source for precious and base metals
1 The portion of the Mineral Resource and Reserves estimated by Century is appended as Appendix I 2 The PCP Mineral Resource is appended as Appendix II

Historic Mineral Resource and Reserve1

Century based this on 34 intersecting drill-holes: the metal grade of this resource was significantly boosted by over 2,500 channel samples from the underground development despite a top-cut at 50gpt Au.
Cut-off 3gpt Au Measured Resource Indicated Resource Inferred Resource Total Tonnes 125,470 302,878 371,000 799,348 Au g/t 12.77 13.59 14.67 13.96 Au oz 51,514 132,336 174,983 358,832 Zn % 3.33 2.99 3.71 3.38 Zn t 4,178 9,056 13,764 26,998

Cut-off 3gpt Au Proved Ore Reserves Probable Ore Reserves Total

Tonnes 142,000 258,000 400,000

Au g/t (cut) 11.20 11.52 11.41

Au oz 51,133 95,557 146,690

Zn % 3.31 2.88 3.03

Zn t 4,700 7,430 12,130

1 For more information see Companys ASX announcement of 08 September 2011

Combined Century and Paramount Resource

Cut-off
1.5gpt Au

Tonnes
2,992,710

Au gpt
6.8

Au oz
633,900

Ag oz
1,045,220

Zn t
59,488

Pb t
13,020

Cu t
8,230

Conservative mining cuts have been used with 0.5m dilution either side for competent rock and 1m either side for less-competent rock as well as a minimum mining width of 2m: further engineering studies will determine the optimal mining parameters

The Asset Progress on Metallurgical Test-work

The preliminary saleable product metallurgical recoveries on bulk sample as determined by Rob Burger of SGS Perth are:
Gold ~86% - from preliminary sighter tests
82% of the gold recovered by CIL; Further 4% of the gold recovered in the base metal concentrates

Base Metals and Silver into Concentrates

~96% of the Zinc ~87% of the Lead ~92% of the Copper ~94% of the Silver

Now focussing on optimising these recoveries, including alternative unit operations, however expect Indonesian-standard CIL/flotation circuit for this type of ore

The Asset - The 2012 Development Plan

Complete metallurgical optimisation test-work, to improve on present Gold recoveries of 86% (target >90%), and alter plant design accordingly Pre-Development Engineering:
Initiate AMDAL Investigate open-pit options on surface veins of 10-20m thick Revise Base Case engineering study scope Purchase both surface rights (63ha) and long lead items Drain the mine fully and resample drives

Enter into refining agreement with Indonesian entities to treat products from late 2014

The Asset - Plant has adequate space for expansion

Cap Palu Portal

The Asset 2013 Mine Development

Re-open sub-level adits to drain mine to start refurbishment of development

drives and shafts Start open pit mining if feasible Start cut and fill underground panel development with hand-held drills,

focusing on the high grade material initially Start stoping when development

advanced a la Way Linggo!

The Asset Base Case without Open Pit Acceleration

Start mining in Q2 2013
Within ~20 months (Q3 2014) mine at a rate of 30-35koz of Au per annum (>100ktpa run-of-mine) from existing development drives; expected cash-cost of <USD 500 per oz Au in high grade areas (>900m RL)

First metal pour Q4 2014 (~18 months plant construction) Expand mining during 2015
increase production to 40-50koz per annum during 2015-16

Post 2016
expand into optimal size as identified by Exploration

The Asset Position on the Enterprise Value Curve

Paramount

1 2 3

Key: 1 - AGM approve purchase of WL 2 - KRM buys WL 3 - Mine development starts/Plant ordered 4 Forestry Permit Received 5 - 15k tons of ROM (8 months of mining) 6 - Plant commissioning starts 7 - first gold poured (17mths from plant ordered) 8 - Producing at 20koz Au per annum rate (20 months of mining) 9 Producing at 40koz Au per annum rate (24 months of mining - plateaud)

The Asset - Target Position on Cost Curve

Gunung Rosa - Should be in First Quartile!

The Company Juniors best leverage on gold price

Kingsrose1 (Way Linggo) Total Au Resources (koz) Total Au Reserves (koz) Enterprise Value (AUD million) EV/Resource oz (AUD/oz) (Attributable) 486 290 701 Medusa1 (Co-O) 3,119 568 1,070 343 PCP (G Rosa) 634 1472 30 65*

* Significant further upside available when considering the recently

identified mineralisation
1 Annual Reports of June 2012 2 Original Reserve ex Century in Appendix III

The Company Equity Raising Q4 2012

Use of Proceeds estimate for Pre-Development of AU$ 3 million:

Geology and Mine Survey Met Work, Mine Design, Engineering Study and Amdal G&A Total (including Land Acquisition applications) AU$ 1 million AU$ 1 million AU$ 1 million AU$ 3 million*

*of which AU$1.5 million raised on 19 October 2012 through an issue at 7 cents per share

Contacts
Mo Munshi +86 139 1017 5192 (M) mamfus@gmail.com Terry Holohan +65 9230 7751 (M) terry.holohan@paramountmining.com Operations Office 6 Temasek Boulevard 25-03 Suntec Tower 4 Singapore, 038986 +65 6884 9423 (O) Website www.paramountmining.com Garry Taylor +65 9665 5840 (M) garry.taylor@paramountmining.com Corporate Office 100 Parry St Perth, WA Australia, 6000 +61 8 9328 5600 (O) Information info@paramountmining.com

Appendix

The People Commissioners and Directors of PT CKP

Mohammed (Mo) Munshi Chairman Commissioner Dr Ir Rozik Soetjipto Commissioner COO/Director, PT Freeport Indonesia

Mufti Habriansyah President Director

Terry Holohan Director

Donny Padmanagara Commissioner Jasir Karwita Commissioner Police General (Ret) Ir Koswara Sasmitapura Commissioner Head of Resources, PT Antam (Ret) Ir Prianda Raspati Director

The Asset on Indonesian Sunda-Banda Volcanic Arc

GUNUNG ROSA

The Asset Schematic Model of the Magmatic Arc

Gunung Rosa position - Mesothermal!

The Asset Host Intrusive Rocks and Breccias

Outcrop of intrusive breccia in porphyritic intrusive

Pebble dyke cutting porphyritic intrusive. The pebble dyke and hydrothermal breccias precede the mineralisation event

Narrow mineralised quartz-sphalerite-pyrite veins cutting altered hydrothermally altered breccia in massive porphyritic diorite

Hydrothermal breccia in massive porphyritic diorite typical host to mineralised veins

The Asset Sulphide Vein Ores

Banded quartz-sphalerite-pyrite-clay vein

Massive quartz-chalcopyrite-pyrite vein

py-cpy gn

sphal

High grade sphalerite-galena-chalcopyrite-pyrite vein intersection - generally with high Au-grades

Multiple events are shown by distinct colour changes to sphalerite

The Asset Century Block Model for 198/358koz Au above 900m RL

The Asset PCP Resource of 436koz Au from 900m RL

The Asset Isopacs show High Grade Areas

Blue Sky - The Future

The Aeromagnetic program of April 2012:
6 major target centres discovered within the IUP under soil cover Supports the interpretation that the cluster of veins are part of a porphyry system Could indicate the potential for discovery of a Au-Cu porphyry system at depth related mesothermal

Blue Sky 8 Outcrop Veins Sampled within Target 2

Vein 3: Leugok Haji 600m east several collapsed adits along the vein

Structure 6: Nagrak 1.2km east floats and outcrops

Qtz-Py-Cpy-Sphal-Gn with associated clay alteration

Highly oxidised, gossanous hydrothermal Breccia

Blue Sky - Geochemistry

Cluster of parallel veins showing significant anomalous values of gold, silver and base metals

Ground magnetics program being undertaken east-west to cross vein strike

Target 2 area incorporating main vein clusters east of Gunung Rosa Vein to be soil sampled at 100m x 50m spaced intervals

Blue Sky Ground Magnetics

RTP Ground Magnetics over main target areas - 100 m line spacing showing veins and old workings. Test area of 25m detail at Cap Palu illustrated below showing drill hole magnetic response in relation to ground survey. Target 2 area to be detailed at 25 m line spacing.

Blue Sky Ground Magnetics

RTP Ground Magnetic image draped over topography showing main target veins and old workings - 100 m line spacing. Test area of 25m detail at Cap Palu Mine site shown

Historic Gold Price & Project History

Paramount open discussions with PT CKP

Key: 1 PT Antam drill 4 holes 2 PT Antam form JV with PT CKP 3 Century Metals contracted as Technical Partner and spend USD10m; drill 60 holes, develop 2 x vertical shafts, 1 x decline and 2.5km of drives, positive engineering study, receive Mining License 4 PT Antam publish internal positive DFS work stops due to lack of finance 5 Delta Gold and Chase Manhattan contracted as Technical Partner Snowden Group carries out positive Technical Review 6 BreX scandal and Asian Financial Crisis 7 PT Antam cede their Shares to PT CKP 8 Paramount open discussions with PT CKP