NAMMO Overview - A Technology Driven Aerospace & Defense Group

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NAMMO Overview - A Technology Driven Aerospace & Defense Group Corporate HQ in Norway Presence in 9 countries 2200 employees Revenue $620 million (2013) 85% defense / 15% civil Nammo Inc HQ in Virginia Nammo Talley (SSA) Nammo Pocal Nammo Tactical Ammunition Nammo Demilitarization Nammo Composite Solutions ~ 1 / 3 Nordic ~ 1 / 3 USA & Americas ~ 1 / 3 Europe & ROW 2

Core Business & Technologies Ammunition Specialty producer of small, medium and large caliber ammunition Shoulder-Launched Munitions Advanced multi-purpose SLMs for current and emerging warfighter missions Missile Products Highly engineered rocket motors, warheads, composite/metallic cases and actuation systems Demilitarization World leader in safe and environmentally responsible recycling of ammunition and energetic materials 3

Nammo Has Supported US Ammunition Supply With.50cal MK211 for 31 years More than 30M projectiles delivered through Lake City AAP Sniper and Machine Gun linked configurations 2011: Nammo Tactical Ammunition established Small quantity sniper ammunition assembly Special Loads/Configurations Research and Development Support Improved Logistics Support (Foreign Trade Zone) 4

.50 Caliber Multi-Purpose Agenda Multipurpose Concept: 20mm Performance in a 12.7mm form Evolution of MP Ammunition: 21st Century Improvements Effectiveness Study results System Safety Handling and Unexploded Ordnance (UXO) MP Traning Analog: SG-M Round MP MP-T MP-DT(IR) 5

.50 cal Multipurpose Concept - Unleash the Potential Armor Piercing High Explosive Fragmentation Incendiary 6

.50 cal Multipurpose Concept - Unleash the Potential 8 inch reinforced concrete, range 200 yards 7

Next generation.50 cal MP F3 New PBXN-5 Explosive New Cobalt Free Tungsten Carbide Penetrator New Next Generation Propellant 8

Next generation MP: Better Penetration and Temperature Stable Velocity Penetration - Standard Penetration F3 12.7 mm (0.5 ) at 200 yds 22.0 mm (0.85 ) at 200 yds 10.6 mm (0.4 ) at 1000 yds 12.7 mm (0.50 ) at 1000 yds (Full penetration of 80 degree NATO target) Accuracy/Velocity Stability - Standard Accuracy/Velocity Stability F3 1.5 MOA 1.5 MOA 120 m/sec Delta Velocity from -50C to 70C 5 m/sec Delta Velocity from -50C to 70C 9

Next Generation Propellant STANAG 4170 qualified & REACH compliant Standard propellant Next gen. propellant 10

Suppression Effect Fragment zone LOF 12 10 8 6 4 2 0 m P H MP 1.0 API 0.5 12 10 8 6 4 2 0 m 11

MP Effectiveness Study Two Rounds Stop Light Armor at 1200m Light armoured vehicle defeated by an average of 1.4 MP rounds @ 1200m in 0, 45 and 90 > 3.5x better P(k/H) than a standard AP round. 12

MP Effectiveness Study Five MPs Stop Armored Personnel Carrier at 600m The BTR-70 200m away defeated by 1-2 MP rounds. 200m at 0 and 45 The BTR-70 600m away defeated by 4-5 MP rounds. 600m at 0 13

Multipurpose Safety No fuze/stored energy in the MP technology. 100% safe to handle even after firing. Requires significant energy to start the pyrotechnic chain Impact velocity of ~1000 ft./s is needed to ignite the round. Lot Acceptance Tests to verify round safety round: 50 ft. cartridge drop, nose down on an armor plate No ignitions - ever, and post-test round is safe to handle and fire. 8 ft. projectile drop, 3 lbs. load dropped onto projectile nose No ignitions - ever, and post-test projectile is safe to handle and fire. Muzzle sensitivity test Rounds fired into aluminum sheet at 65 ft. No ignitions - ever 14

SG-Marker Round Ball round with «flash-on-impact» similar to the MP round Trajectory match with MP Family No explosives/can be used as a training round for the MP Zero UXO Hazard Easy for sniper/spotters to see impact without tracers Linkable for «low signature» impact report Steel body RS41 compound 15

16 Bruce Webb bwebb@nammoinc.com Andreas Gaarder andreas.gaarder@nammo.com