nevsun exploration presentation

Bisha: Untapped Exploration PotentialTSX: NSU | NYSE MKT: NSU July 2016

Bisha: untapped exploration potentialDelivering organic growth through the drill bit

VMS deposits commonly form in “Districts” or “Camps” Bisha licenses are District in scale

VMS deposits well understood with established exploration techniques

Bisha District remains underexplored with potential for additional tonnage and deposits Re-started greenfield exploration in 2014 after a decade of development

Targeting both new deposits and extension of known deposits at depth and on-strike

Successful 2015 Regional Exploration Program Added a new discovery at Asheli

Continued to expand Harena; new expanded resource released Feb ‘16

2016 focus on expanding Bisha and Asheli; work to begin in Q1

2VMS = Volcanogenic Massive Sulphide

Potential to increase Bisha District VMS tonnage through Extending current deposit tonnage at depth and on-strike Adding new district deposits

3

Bisha District

6deposits

40Mt measured & indicated resource

Open

Noranda District

25 deposits

>200Mt*

V M S D I S T R I C T D E P O S I T S I Z E & D I S T R I B U T I O N

District scale license positionAggressive district exploration program in 2016

* Noranda and Flin Flon districts include many deposits that were discovered and mined prior to NI43-101 disclosure requirements and tonnages are estimates

Source: Sangster, Quantitative characteristics of VMSs and Company data

5 km Scale

District

Mine

Flin Flon District

18 deposits

>180Mt*

See news release dated Feb 3, 2015 for detailed resource tables and assumptions. Qualified person for resources is Phil Jankowski, (BMSC.)

T Y P I C A L V M S M O R P H O L O G Y

Source: Lydon, Ore Deposit Models: Volcanogenic Massive Sulphide Deposits. Part 2: Genetic Models.

Highly

Conductive

(Copper)

VMS deposits well understoodExploration techniques based on morphology and well established

Copper &

Gold Stringer

High

Copper

High

Zinc

Volcanic

Rocks

Sea Water

Exhalite or Favourable

Time Horizon

4

Massive

Sulphide

Metal

Zonation

Trace favorable time

horizons and contacts with felsic volcanic rocks

Lithogeochemistryto assess alteration

Airborne and down-hole electromagnetics (conductivity) to target drilling on copper sulphides

VMS = Volcanogenic Massive Sulphide

Mineral

Alteration

Standard VMS exploration methodology – EM and lithogeochemistry

5

Borehole TEM

(BTEM)

VMS = Volcanogenic Massive Sulphide TEM = Transient electromagnetics EM = electromagnetics

Current resources (effective Dec 31, 2015) detailed in news release dated Feb 17, 2016. Qualified person is Phil Jankowski (BMSC).Current reserves (effective Dec 31, 2014) detailed in 2014 AIF. Qualified person is Anoush Ebrahimi, Ph.D. at SRK Consulting 6

Depletion

Reserve

Reserve

0

5

10

15

Startup Dec 2014

Mine Life, years

B I S H A R E S E R V E L I F E +50%

0

10

20

30

40

50

60

Feasibility Jan 2011 Jul 2012 Dec 2013 Dec 2014 Dec-15

Inferred M&I ResourcesMt

B I S H A D I S T R I C T R E S O U R C E S +115%

Bisha District has track record of growthResource development delivered growth until 2014

Exploration focused on known deposits thru 2013, delivering significant resource and reserve growth

In 2014 switched to greenfield exploration, discovering new deposit at Aderat and adding 7MT of greenfield resource at Harena

Re-started exploration in 2014Bisha previously focused on development for over a decade

7

1998

2002

2004

2006

2008

2010

2012

2014

D I A M O N D D R I L L H O L E S ( D D H ) B I S H A , H A R E N A A N D M O G O R A I B

Nevsun Eritrean exploration starts

0 50 100 150

DevelopmentExploration

Focus switches to new discoveries

Bisha feasibility completed

Bisha discovery hole drilled

Bisha Main resource development

Resource development for known mineralization

at Harena, Northwest Zone and Hambok

2015 regional exploration successesSignificant resource growth at Harena and a new discovery at Asheli

8

Harena drilling continued to expand the resource at depth (resource update issued Feb ‘16)

New greenfield discovery at Asheli further highlights the potential for more deposits on the Mogoraib River License

Methodology of employing electromagnetic geophysics (EM) and focussing on defining and understanding the geology and alteration patterns proving effective

2016 Regional exploration program

2016 Objectives1. Harena: drill down dip following increasing thickness and grade with

depth and drill along strike of the deposit to the north and south. 2. Bisha Main: drill below the proposed ultimate open pit where the

deposit remains open3. Asheli: greenfield exploration will mainly target opportunities in the

Asheli area of the Mogoraib River exploration license, where a new massive sulphide deposit was discovered in 2015

2016 Budget: ≈$11 million ≈34,000 m of diamond drilling

Future: Nevsun expects BMSC will continue to fund significant exploration programs on a success basis

9

10

Northwest

Bisha Mine

Harena Mine

Hambok

Takewuda

Map scale is approximate

Bisha VMS districtCamp

NORTH

Plant

Asheli

Aderat

Shabayt

Current Mining Licenses

Mining Agreement Area

Tabakin Exploration License

New Mogoraib River Exploration License

Mines

Deposits

Showings

Favorable Trend

Felsic Volcanic

Harena Mining License

11

Right: Southern Extension Discovery Hole HX-005, May 2014

Harena down dip expansion

12

In 2013, recognized highly altered rhyolite footwall indicative of larger VMS system (top)

2014 drilling discovered major southern extension

Work in 2015 completed first pass drilling down to ~ 600 m depth

VMS = Volcanogenic Massive Sulphide

For summary of recent Harena results see December 1, 2015 news release. Harena resource statement (red in figure) is described in the 2014 Annual Information Form (AIF).

Deposit drilled to 600 m depth in 2015

Deposit still open at depth Zinc grades and widths

improving with depth 2015 internal underground

scoping study justifies continued work

12 km drilling budgeted in 2016

13

Harena extension drilling

HX-069:0.8% Cu, 5.0% Zn, 0.5g/t Au, 14g/t Ag over 115m, including

0.6% Cu, 10.2% Zn, 0.6g/t Au, 19g/t Ag over 40m

HX-071: 0.7% Cu, 7.9% Zn, 0.3g/t Au, 17g/t Ag over 50m, including

0.3% Cu, 10.2% Zn, 0.2g/t Au, 13g/t Ag over 36m

Additional high grade holes HX-050 and -051 (April 28, 2015 news release)

Coloured Rectangles

are the Geophysical

Plate Models

Derived From the

Boreholes BHEM

Planned 12km

2016 Drilling

Harena extension drilling cont’dMassive sulphides open at depth and remain thick

Increasing zinc and copper grades being encountered

Open to further expansion at depth Updated resource from 2015 drilling

issued Feb ‘16

For more sections and detailed results see news release dated December 1, 2015.

14

15

Massive Sulphides in hole HX-057 extending ~600 m depth

Harena extension drilling cont’d

15

16

Harena extension drilling cont’d

Deposit still open at depth

Also potential still remains along strike

Strong core of copper mineralization being defined that appears to be improving with depth

For a summary of recent Harena results see news releases dated: April 28, 2015, September 16, 2015 and December 1, 2015

Bisha Mining License

17

182014 VTEM Survey Conductance Map

Drill Hole

Bisha NW Zone

Extension Area

Considerable Number

of Untested EM

Anomalies

Bisha South

Bisha mining license targetsNumerous near-mine targets remain

2015 Target

2016 work to initially focus on Bisha South at depth

Bisha NW Gap

Bisha Harena Gap

EM = electromagnetics

Bisha south deposit (longitudinal)Testing for primary Zn-Cu resource extensions down dip

19

100 m

MogoraibRiver License

20

2014 VTEM survey tightened coverage to 100 m line spacing better defining anomalies

VTEM depth ~ 100m

21

Mogaraib River license targets

Drill Hole

Significant VTEM Anomaly

Future Target

2016 Target

Asheli

Hambok

Takewuda

Few holes outside of Hambok and Aderat

2015 work resulted in new discovery at Asheli

More work in 2016…

2 0 1 4 V T E M M A P

Mogoraib River License

Asheli Trend

Aderat

Hambok-Aderat

Trend

22

Asheli – 2015 greenfield discovery

Targeted on gold-rich gossan, EM and footwall alteration

High grade, thick, metal-rich massive sulphides intersections (see recent results below)

4km of untested strike length with similar geology

Currently drilling with two rigs in operation

EM = electromagnetics (geophysics)For Section B-B, plan map and detailed results see news release dated April 19, 2016.

MX-068: 2.0% Cu, 9.1% Zn, 0.4 g/t Au, 32 g/t Ag over 44m



Massive sulphide 20km from Bisha

For detailed results see news release dated April 19, 2016.

Asheli Cont’d

23

Massive Sphalerite33% Zn

143.8 –144.8m

Hole MX-056Zn – Cu Rich Massive Sulphide from 142.1–163.0m = 20.9 m

1.26% Cu – 6.08% Zn0.28g/t Au – 26g/t Ag

Banded Sphalerite

17.0% Zn144.8 –145.3m

Chalcopyrite6.0% Cu

146.0 –146.5 m

1.44% Cu – 7.64 % Zn152.5 –153.0m

For detailed results see news release dated June 18, 2015.

Aderat – 2014 greenfield discovery

24

High grade, metal-rich massive sulphides intersections

BHEM indicates steep SW plunge Alteration indicates larger system Open along strike and at depth Drilling in late 2015 continued to

intersect interesting alteration (assays pending)

Open

Massive sulphide 10km from Bisha





MX-012

0.79% Cu

6.99% Zn

0.38 g/t Au

14 g/t Ag

over 16.0 m

BHEM = borehole electromagnetics (geophysics) For sections, plan map and detailed results for MX-011 and -012 see news release dated June 16, 2014.

MX-011

MX-012

MX-017

MX-016

2015

DDH

Hambok – large massive sulphide

Discovered in 2006; drilled extensively through 2013 Very large pyritic massive sulphide deposit Indicated and inferred open pit resources1

No alteration zone or feeder system found (yet) Open along strike (north and south) and at depth

25

1 For details of open pit resources see news release Feb 3, 2015

Still looking for the feeder system – likely towards Aderat

Hambok-Aderat trend2016 and future targets

6km under-explored trend

Several untested target areas including: • Aderat South • Hambok extension north & south

4km of untested strike length Drilling to continue in 2016

Aderat Deposit

26

Hambok Deposit

2016 Target

Aderat South

Hambok North

Hambok South

Future Target

Takewuda 2016 target

27

Untested VTEM anomalies associated with altered felsic volcanic rocks

Sericite – chlorite schist identical to

Guardian Hill overlooking Bisha pit

Numerous untested VTEM anomalies

28

Bisha exploration team

Bisha exploration team with drill core from Asheli hole MX-052

Middle, back row (no hat): Peter Manojlovic – Nevsun VP Exploration

Not present: Rob Foy – Bisha Exploration Manager (yellow shirt on page15)

Forward Looking StatementsThis Presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadiansecurities legislation concerning anticipated developments on the Company's continuing and future operations in Eritrea, the adequacy of the Company’s financial resourcesand financial projections. Forward-looking statements include, but are not limited to, statements concerning or the assumptions related to estimates of capital and operatingcosts, the timing, nature and extent of future copper, zinc and gold production, expanding exploration licenses, the estimation of mineral reserves and resources,methodologies and models used to prepare resource and reserve estimates, the realization of mineral reserve estimates, the conversion of mineral properties to reserves andresources, the potential to expand resources, reserves and mine life, future exploration budgets, plans, targets and work programs, capital expenditures and objectives,anticipated timing of grant of permits, mining and development plans and activities, construction and production targets and timetables, grades, processing rates, life of mine,net cash flows, metal prices, exchange rates, reclamation costs, results of drill programs, dividend plans and policy, litigation matters, integration or expansion of operations,requirements for additional capital, government regulation of mining operations, environmental risks, political risks and uncertainties, unanticipated reclamation expenses, andother events or conditions that may occur in the future. Forward-looking statements are frequently, but not always, identified by words such as "expects," "anticipates,""believes," "intends," "estimated," "potential," "possible", "budget" and similar expressions, or statements that events, conditions or results "will," "may," "could" or "should" occur orbe achieved. Information concerning the interpretation of drill results and mineral resource and mineral reserve estimates also may be deemed to be forward-lookingstatements, as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed, and in the case ofmineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited.

Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions maydiffer materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors. Although the Company has attempted toidentify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that causeresults not to be as anticipated, estimated or intended. The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management onthe date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future, except as required by law. There canbe no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. For thereasons set forth above, investors should not place undue reliance on forward-looking statements.

Please see the Company’s Annual Information Form and Management Discussion and Analysis of Nevsun for a more complete discussion of the risk factors associated withour business which have been filed with Canadian securities regulators and are available at www.sedar.com, and have also been filed or submitted to the U.S. Securities andExchange Commission on Form 40-F or Form 6-K and are available at www.sec.gov .

Except as otherwise noted herein, Peter Manojlovic, Vice President of Exploration and Frazer Bourchier, Chief Operating Officer, Qualified Persons as defined by NationalInstrument 43-101, have approved the scientific and technical information concerning Nevsun Resources Ltd. discussed herein.

29

TSX: NSU | NYSE MKT: NSU

I N V E S T O R R E L A T I O N S

T E L : +1 604-684-6730T O L L F R E E : 1-866-684-6730E M A I L : [email protected] E B : www.nevsun.com

mailto:[email protected]

http://www.kincommunications.com/

nevsun exploration presentation

Business