A New Direction October 2011 TSX.v:COL
FORWARD LOOKING STATEMENTS Statements contained in this presentation that are not historical fact, such as statements regarding the economic prospects of the Company’s projects, the Company’s future plans or future revenues, timing of development or potential expansion or improvements, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties include, but are not limited to, the Company’s ability to raise sufficient capital to fund development, changes in general economic conditions or financial markets, changes in prices for the Company’s mineral products or increases in input costs, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments in Canada, technological and operational difficulties or inability to obtain permits encountered in connection with exploration and development activities, labor relations matters, and changing foreign exchange rates, all of which are described more fully in the Company’s filings with the Securities and Exchange Commission. Cautionary Note to U.S. Investors: The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this presentation, such as “measured,” “indicated,” and “inferred” “resources,” that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in the Company’s Form 20-F, File No. 000-52231, which may be secured from the Company, or from the SEC’s website at www.sec.gov/edgar.shtml | 2 TSX.v: COL Copper North Mining
KEY FINANCIAL INFORMATION » CASH POSITION Cash on Hand C$ 2.0 M Short/Long Term Debt 0.0 October 2011 Share Price $0.34 » SHARE STRUCTURE Market Cap $1.6 M October 24, 2011 Common Shares 46,501,252 Options 2,156,834 Warrants 3,466,875 Fully Diluted 52,124,961 » COMMON SHARES Management & Board 9% Private Investors 44% October 2011 Institutional Investors 30% Other 17% Common Shares 100% | 3 TSX.v: COL Copper North Mining
PROPERTIES » Carmacks – 100% owned – High grade (1.04% Cu) copper oxide deposit – Permitted for construction » Redstone – 100% owned – High grade stratiform copper deposit – Drilling program planned | 4 TSX.v: COL Carmacks
CARMACKS DEPOSIT | 5 TSX.v: COL Carmacks
HIGH GRADE COPPER OXIDE DEPOSIT » Open pit mine – Heap leach, solvent extraction / electrowinning – 6+ year mine life » Prime Location – 220 km north of Whitehorse, Yukon – 400 km from year-round port of Skagway, AK – Existing road into site – 11 km from Yukon power grid » Advancing towards production – Feasibility Study completed May 2007 – Permitted for construction – 20 months from construction to production | 6 TSX.v: COL Carmacks
CARMACKS – RESERVE & RESOURCE ESTIMATE RESERVE 1 RESERVE G RADE CONTAINED METAL Class Tonnes Total Copper Oxide Copper G old Silver Cu Eq Copper G old Silver M % % g/ t g/ t % M lb k oz k oz Proven 3.2 1.23 1.028 0.659 6.20 1.70 86 68 636 Probable 7.4 0.97 0.822 0.408 3.94 1.26 158 97 940 Proven + 10.6 1.04 0.88 0.483 4.62 1.39 244 165 1576 Probable RESOURCE 2 RESOURCE G RADE CONTAINED METAL Total Oxide Tonnes G old Silver Cu Eq Copper G old Silver Category Copper Copper M % % g/ t g/ t % M lb k oz k oz Measured 4.0 1.10 0.90 0.59 5.7 1.52 98 76 739 Indicated 7.9 1.04 0.83 0.39 4.0 1.32 182 100 1,022 Oxide M + I 12.0 1.06 0.85 0.46 4.57 1.39 280 176 1,761 Inferred 0.1 0.73 0.53 0.13 1.8 1.4 0.4 5 0.83 Measured 0.7 0.80 0.02 0.26 2.5 0.99 12 6 56 Indicated 3.6 0.74 0.03 0.21 2.3 0.89 59 25 270 Sulphide M + I 4.3 0.75 0.03 0.22 2.33 0.91 72 30 325 Inferred 4.0 0.71 0.01 0.18 1.9 0.84 63 23 246 See notes 1,2 in Appendix | 7 TSX.v: COL Carmacks
PROPERTY GEOLOGY » Carmacks deposit open at depth & oxidised to ~230m » All Resources and Reserves based on zones 1,4, 7 & 7A » Upside potential in zones 12, 13 & 14 | 8 TSX.v: COL Carmacks
PRODUCTION PROFILE & AFTER-TAX CASH FLOW* * Cash flow includes operating costs (mining, processing, G&A, shipping & property tax), sustaining capex and royalties. Excludes capex ~C$151M. Spot price $3.85 (US/lb) and exchange rate 1.00 (US$:C$) - Feasibility Study $2.32 (US/lb) and exchange rate 0.85 (US$:C$). Assumes tax rate of 30% (combined Federal and Provincial) | 9 TSX.v: COL Title of Presentation Goes Here
FEASIBILITY STUDY (MAY 2007) » CAPITAL COSTS MI NE CAPI TAL (C$ M) 134 ACI D PLANT CAPI TAL (C$ M) 18 TOTAL CAPEX (C$ M) 151 LONG SPOT PRE-FEAS TERM SEPT 2011 MAY 2007 » ECONOMICS COPPER (US$/lb) 3.85 2.50 2.32 FOREI GN EXCHANGE (US$:C$) 1.00 0.90 0.85 Pre- NPV @ 8% (C$ M) 248 92 85 Tax I RR (100% equity) (% ) 42.5 22.1 21.1 CASH FLOW (C$ M/y) 81 49 48 After- NPV @ 8% (C$ M) 150 49 39 Tax I RR (100% equity) (% ) 31.6 16.4 15.7 PAYBACK (y) 2.2 3.8 3.9 ORE THROUGHPUT (t/d) 5,000 » OPERATING DATA COPPER PRODUCTI ON (M lb/y) 32 STRI P RATI O 5.4:1 CASH COSTS (US$/lb Cu) 0.84 See note 3 in Appendix | 10 TSX.v: COL Carmacks
CARMACKS | PROGRESS HISTORY Basic engineering study initiated 1993 1997 Definitive capital cost estimate completed 1998 Project suspended due to low copper prices Permitting process commences 2005 Extensive exploration at Carmacks (~25,000m); Feasibility Study 2007 (NI43-101 compliant) completed in May 2007 YESAB recommends the Carmacks Project proceeds 2008 Yukon Government agrees with YESAB’s recommendation Quartz Mining License obtained; Carmacks permitted for construction. Yukon Water Board completes adequacy review of Water Use License 2009 (WUL) application Public hearing for WUL completed in March 2010. Company notified in 2010 May 2010 that WUL denied. Western Copper appealed decision in June 2010 (appeal favoured Water Board) Western Copper filed Notice of Appeal with Yukon Court of Appeal in 2011 March 2011 Carmacks project spun out to Copper North in October 2011 | 11 TSX.v: COL Carmacks
WATER USE LICENSE » Key issues identified by Water Board – Heap leaching technology – Closure and reclamation of heap – Discharge management plan » Actions – Considering engineering modifications – Seeking independent engineering review – Working with Yukon Government to determine alternative ways forward | 12 TSX.v: COL Carmacks
NEXT STEPS » Obtain Water Use License (WUL) – Anticipate WUL will be issued in 2012 » Get Project Ready for Production – Arrange financing » Explore Opportunities – Further exploration of additional ore zones 12, 13 & 14 – Assess economics of mining and processing sulphide ore | 13 TSX.v: COL Carmacks
REDSTONE PROJECT | 14 TSX.v: COL Redstone
REDSTONE » Underground Mine – Sediment-hosted stratiform deposit » A Mining District of the Future – Redstone Copper belt Nahanni Mining District, NWT – 300km north of Watson Lake, YT » Mineral Resource Tonnes Copper Silver Cu Eq Copper Silver M % g/ t % B lb M oz * Inferred 34 3.92 9.0 4.0 2.9 9.8 *See note 4 in appendix | 15 TSX.v: COL Redstone
REDSTONE » Redstone Project consists of 13 claims (blue) and 5 leases (red) extending NW-SE over 160 km | 16 TSX.v: COL Redstone
REDSTONE | PROGRESS HISTORY The Redstone property underwent extensive drilling by Redstone 1960 - 1980 Mines Ltd., Cerro Mining Company of Canada and Shell Canada Resources Redstone Mines Ltd. carried out a complete data review 1990 Lumina Resources Corp. completed a regional geological 2005 evaluation of the Redstone Copper belt Western Copper acquired Lumina Resources in November 2006, 2006 taking control of Redstone Research project to better understand regional geology 2007 commenced by University of British Columbia (UBC), funded by Western Copper UBC Research project continues 2008 - 2009 2010 field program commences, focusing on Coates Lake area 2010 Project spun out into Copper North, October 2011 2011 | 17 TSX.v: COL Redstone
REDSTONE » Work Plan – Develop drilling program for 2012 – Submit application for exploration permit – Continue regional geological study of the Redstone Copper belt | 18 TSX.v: COL Redstone
SUMMARY » Copper North owns a 100% interest in two high grade copper deposits in northern Canada – Carmacks: permitted for construction (Proven & Probable Reserves of 10.6Mt @1.04% Cu) – Redstone: significant upside potential (Inferred Resource of 34Mt @3.92% Cu & 9.0g/t Ag) » Resolve issues identified by Yukon Water Board – Seek independent engineering review » Consider financing options for Carmacks development (~C$150M) » Submit application for exploration permit at Redstone – Develop drill program » Build executive management team | 19 TSX.v: COL Copper North Mining Corp.
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