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This presentation may contain forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of I-Minerals to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements may include statements regarding exploration results and budgets, resource estimates, work programs, strategic plans, market price of industrial minerals or other statements that are not statements of fact. Although I-Minerals believes the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Various factors that may affect future results include, but are not limited to, fluctuations in market prices of minerals, foreign currency exchange fluctuations, risks relating to exploration, including resource estimation and costs and timing of commercial production, requirements for additional financing, political and regulatory risks, and other risks described in I-Minerals ’ management discussions and analyses as filed on SEDAR. Accordingly, undue reliance should not be placed on forward-looking statements 2
Supplier to the Economic Rebound o US domestic reporting issuer located in mining friendly Idaho o June 2014 PFS indicates IMA will be a low cost producer of four unique high value industrial minerals: K-spar, high purity quartz, kaolin, halloysite all contained in one deposit o minerals are consumed in manufacturing of products that are consumed in housing and infrastructure – sectors that are key contributors to the economic recovery • K-spar: N.A. class; used in glazes tiles and sanitaryware • Quartz: N.A. class; used in high end glass • Kaolin: N.A. class; metakaolin = pozzolan used in cement • Halloysite: world class; plastics, polymers, life sciences o Low CAPEX; short lead time to production (~1.5 year after FS funded) 3
Quantifiable Value: o Market Cap <$20 million; PFS (after tax) NPV > $200 million o 2014 PFS: $73mm CAPEX; $212 NPV (6%); 30%IRR (SRK; after tax) o 70% of “ ore ” mined is processed into mineral products o PFS EBITDA averages $36mm per annum o PFS Free Cash Flow $24mm per annum (unlevered) o November 2014 Imerys acquired S&B at 9.2 times EBITDA o Euro Pacific Capital Inc. “ Buy ” $0.70 target (02/20/15) o FS underway; expected completion November 2015 o Non-metallic mine, simplified State level permitting = no EIS o Experienced Management led by Thomas Conway (Newmont) o Insider ownership ~35% led by Allen Ball 4
Helmer-Bovill Project Location: Latah County NW Idaho; ~110 miles South of Spokane, WA Brownfield project, previously mined / logged. Prior mining in 70s developed excellent infrastructure; • Power and gas within 2 miles • State highway about 5 miles; < 100 miles to Interstate • Rail: 50 miles to Lewiston (BN& UP); trunk lines to Spokane (UP); • Tidewater Access to Portland by barge via Snake / Columbia Rivers or truck / container via Interstate 84; to Seattle by truck via Interstate 90 Supportive community - economically depressed resource based county Land Tenure: Idaho Department of Land Mineral leases. Subject to 5% royalty to State Education Fund State ’ s financial interest aligned with I-Minerals. 5
MINERAL PRODUCTS 6
Clay Minerals (from weathering of Na feldspar) Halloysite [Al 2 Si 2 O 5 (OH) 4 ·2H 2 O] o Biodegradable tubular morphology o I-Minerals world class: high aspect ratio; low heavy metals no crystalline silica, alunite or cristobalite (Durtec) o Traditional uses porcelain / fine bone china o Emerging uses: plastics/polymers ( strength weight), life sciences (delivery mechanism, cosmetics), Environmental(nanoporous membranes for separation), Kaolin [Al 2 Si 2 O 5 (OH) 4 ] Kaolin calcined (heated to 770 o c), bonded water evaporates Metakaolin = a pozzolan -a silicate-based material that consumes calcium hydroxide (lime) to produce additional calcium silicate hydrate, the material responsible for holding concrete together. Consuming lime increases the strength and density of concrete, decreases efflorescence; virtually eliminates alkali-silica reaction. Metakaolin is currently sourced from S.E. USA = expensive. Fly ash (from coal) a low cost alternative; environmental issues. 7
Sand Minerals Quartz [SiO 2 ] Value determined by purity (SiO 2 % and how impurities react in melt tests) and fineness of the grind I-Minerals has achieved 99.98% SiO 2 purity through flotation (Cerium 2014) - the low end of high purity quartz market Applications: solar glass, LCD monitors/flat panels, specialty lighting. Removal of a few ppm of Ti opens higher value markets: fiber optics, LED lighting (Dorfner results) K (Potassium)-Feldspar [KAlSi 3 O 8 ] ( “ K-spar ” ) Value: determined alkali content, purity, K 2 O%, grind I-Minerals K-spar products are best in class: very high K 2 O, very low iron, high alumina (Al) Applications: ceramic bodies and glaze (tiles, sanitary ware, tableware); technical ceramics (aerospace, medical, military), flux in high temperature glazes 8
Industrial Mineral Consumption 1990-2013 USGS Basket of 9% K-spar, 48% Na-spar & 43% Nepheline Syenite Strong Growth; Steadily Increasing Prices 5.4% annual growth Divergence 3.1% p.a. nominal growth 0.6% p.a. real growth 9
MINERAL PRODUCT VALUES Average operating costs about $70 per ton of product or $50 per ton of ore Market Size (000s tons) (1) Price & Revenue Estimates ($/t) IMA % PFS $/t Mineral Min Max Location Target Growth $ Min $ Max Revenue Growth (2) (3) Halloysite 150 180 Global 12 300 +2500 20% (4) (5) Kaolin 50 +250 West US 45 100 500 13% (6) Quartz 800 1000 US & Asia 108 50 500 45% (8) K-spar 200 250 US 47 (7) 100 500 22% Notes (1) Based upon study by Charles River Associates (5) IMA price growth as shift ceramic apps to metakaolin (2) Increased use in plastics polymers key (6) Demand for HPQ off as solar growth currently slow (7) Imerys now closed Monticello GA plant was 50k tons (3) IMA best purity and aspect ratio (8) N.A. production @$240/t Custer- lower grade; +$350/T (4) Metakaolin makes in roads into fly-ash market FOB Spain for IMA comparable K-spar 10
Mineral Market Events & Catalysts: o Imerys closes Monticello K-Spar Mine in Georgia (Dec. 2014) after 47 years of operation. Pacer Corp. ’ s Custer K-spar (10% K 2 0) only domestic supply. Imerys/Unimin offer Spanish/Indian K-spar at $350/T FOB Spain/India. o Metakaolin reduces Greenhouse Gas Emissions: an alternate pozzolan to flyash (ash from coal fired power plants); in producing cement, significant heat (1500 o C) is required to fuse elements into cement clinker producing major greenhouse gas emissions and even more CO 2 is produced from the reaction caused by burning the limestone. One study estimated that every ton of cement produced created one ton of CO 2 . Metakaolin reduces energy requirements and greenhouse gas emissions – and makes superior cement. o Commercialization of Life Science Application: Hallopure is the best halloysite (aspect ratio, purity) available, commercialization of prototypes being tested (e.g. wound dressings); limited supply option pricing. o Recovery of Solar Sector through shift to thin film technologies; solar power championed in presidential speeches will firm quartz pricing to 2013-14 levels 11
MINING AND METALLURGY 12
Simple Mining “ Ore ” is a fine white clayey sand created by the weathering of Thatuna Granodiorite, a unique border phase of the of the Idaho Batholith. Weathering takes place to depths of 75 to 200 feet; little overburden, shallow pits Ore is excavated without drilling or blasting using contract miners utilizing 3 yd 3 excavator and 30 ton trucks Short haul to process facility -10 minute cycle time during daylight hours PFS Mining Costs $9 / ton product 13
Basic Flow Sheet Wet Screen separation Sand fraction from Clay Quartz K-Spar Sand Fraction • K-spar is separated from quartz via basic flotation • Quartz fraction is ground finer and then re-floated TrueQ1 product, re-floated up to 2 more times to remove residual K-spar to make high purity quartz products (TrueQ2 and TrueQ3) Kaolinite Halloysite Clay Fraction • Halloysite is separated from kaolinite with centrifuge • Differential flotation +90% halloysite product • Halloysite slow dried to preserve tubular shape • Kaolin calcined (heated to 700 0 C) to make Metakaolin High value, high purity products are created without chemical processing or leaching. PFS processing costs $60/t product 14
Permitting • EPA has ruled Bovill Kaolin a non-metal mine • Brownfields property logged and previously mined • Project designed to not impact wetlands to avoid NEPA process. USACE has conducted preliminary site visit, updated information, road design submitted; Waiting for final USACE field verification No NEPA = NO EIS required (akin to permitting a gravel quarry) • Preliminary meeting with IDEQ on air permitting with procedures being put in place. All permitting can be obtained 6 months from application. • Only State level permitting required; expected completion Q4 2015 • Company is selling tailings under similar permit and has precedents established and relationships with regulators in place 15
ECONOMIC VALUATION 16
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