Akie Project Akie Project Akie Project Akie Project & & Kechika Regional Project Kechika Regional Project Kechika Regional Project Kechika Regional Project February 2020 February 2020 February 2020 February 2020 1
Legal Disclaimer This presentation contains forward looking statements; including in particular, statements about ZincX Resources plans, strategies and prospects. These have been based on the Company's current assumptions, expectations and projections about future events. Although the Company believes that the expectations reflected in these forward looking statements are reasonable, the Company can give no assurance that these expectations will prove to be correct or that the results anticipated in the forward looking statements will be achieved. These forward looking statements include risks and uncertainties, which relate to, amongst other things, market conditions, industry uncertainty and other such factors which may cause the Company’s actual results to be materially different. The presentation also contains information about a preliminary economic assessment (PEA) of the Company's Cardiac Creek deposit. The PEA is considered preliminary in nature and includes mineral resources, including inferred m ineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized. Ken MacDonald P.Geo., Vice President of Exploration, is the designated Qualified Person as defined by National Instrument 43-101 (NI 43-101) and is responsible for the technical information contained herein. Michael Makarenko P.Eng, JDS Energy and Mining, is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the PEA technical information contained in this release. Robert Sim, P.Geo., is an independent consultant and served as the Qualified Person responsible for the preparation of the 2016 NI 43-101 Technical Report on the Akie Project and is responsible for the 2017 mineral resource estimate for the Cardiac Creek deposit, situated on the Company’s 100% owned Akie Property. 2
Zinc: Construction & Infrastructure Metal • Zinc is the third most-used nonferrous metal in the world, after aluminum & copper • Primarily used as a coating on iron & steel to protect against corrosion – used in buildings, bridges, railways and automobiles – zinc is a “construction & infrastructure” metal • As global economic recovery progresses over the next few years – with continued growth in China, India & other emerging economies – along with the recovery in the USA – a corresponding increase in the demand for zinc is expected to put upward pressure on global zinc prices • Continuing long-term urbanization and industrialization will mean that the developing world will support growth in global zinc demand • Chronic shortage of supply of zinc is being forecasted. The coincidental closure of major zinc mines (Brunswick, Perseverance, Century, Lisheen, Skorpion) through depletion coupled with a very limited number of new zinc mines in the development pipeline is expected to lead to robust zinc price • Major mine closures during the last several years and forecast over the next few years will remove 15% of the current global zinc concentrate supply 3
Opportunity From TD Securities I nc: We expect that total zinc stocks will remain very low at ~ 32-33 days of consumption through 2020 (lowest since 1985), lending support to prices. Low stocks and limited mine supply in 2018 could result in a sharp upward spike in prices. We have increased our 2018 zinc price forecast to US$1.76/ lb (from US$1.65/ lb); our 2019 and 2020 price forecasts increase to US$1.75/ lb and US$1.50/ lb, respectively (from US$1.45/ lb and US$1.30/ lb). Zinc fundamentals remain supportive, with global exchange stocks at 10- year lows (equivalent to just six days of consumption) and the forward price curve now in backwardation through mid-2019, suggesting that the market expects supply to remain tight. We also note that LME zinc cancelled warrants now total ~ 42% of all zinc in LME warehouses, indicating that the draw-down of zinc inventory should continue. 4
Slowing Zinc Mine Production Growth 5 Source: Teck Resources
Management and Directors Mr. Peeyush Varshney, LL.B. - CEO & Chairm an - Principal and Director of Varshney Capital Corp., director of Mountain Province Diamonds Inc. (TSX: MPVD) and E3 Metals Corp. (TSX.V: ETMC) Mr. Praveen Varshney, FCPA, FCA – CFO & Director - Principal and Director of Varshney Capital Corp., director of Mogo Finance Technology Inc. (TSX: MOGO) Dr. John Thom as, Ph.D – Metallurgist - I ndependent Director - Extensive project management experience; VP Operations of other publicly listed junior mining companies Mr. Marco Strub, Portfolio Manager – I ndependent Director - From 1997 to 2003 was a partner of Exulta AG and is currently a principal of Sircon AG Mr. Hu Xinfu, P.Eng. – I ndependent Director – Vice President Tongling in charge of acquisition and exploitation of mineral resources in China and abroad Mr. Ken MacDonald, P.Geo. – VP Exploration, QP - Over 30 years experience in the mineral exploration sector. Is qualified person (QP) as per NI-43-101 Standards of Disclosure for Mineral Projects Mr. Nicholas Johnson, B.Sc.H ( Queens 2 0 0 1 ) – Project Manager - Over 15 years experience as exploration geologist; including at Goldcorp’s Red Lake mine & also employed by Watts Griffis & McOuat (WGM) Mining Consultants and Bema Gold 6
Corporate Summary Share Share Struct Structure ure – a – as at Feb Februa uary ry 13, 13, 2020 2020 • Dominant landholder in British Issued & Outstanding 170.3 M Columbia’s highly prospective Options 12.1 M zinc-lead-silver Kechika District Warrants ‐‐ 52 week low/high range $0.09/$0.25 • Host to several base metal Average daily volume 150,000 shares deposits and numerous targets Cash +$1.5 Million • ZNX owns 100% of NI 43-101 compliant Cardiac Creek deposit (Akie) • Akie is an advanced stage project with 162 drill holes (68.8 km total) • Located next to Teck & Korea Zinc’s Zn-Pb-Ag Cirque deposit • Kechika Regional - Significant Key Key Sh Sharehol eholde ders rs district-scale new discovery Ton Tonglin ling Nonfer Nonferrous us Me Metal tals Gro Group potential Jintuo ntuo (Canada) ada) Inv Investment Co. Co. Ltd Ltd Te Teck Reso Resources Korea Zinc Kor Zinc 7
Akie & Kechika Regional Projects Akie Project: Zn ‐ Pb ‐ Ag Cardiac Creek Deposit Advanced Exploration 8
Akie & Kechika Regional Claim Map Akie Property: 1 1 6 km 2 ( yellow ) Kechika Regional: 5 0 5 km 2 ( red) Kechika Regional ( Pie Option) : 5 1 % ow nership acquired by Teck Resources/ Korea Zinc: 1 7 7 km 2 ( purple) 2 3 0 m ineral claim s Owned by ZNX • Claims overlie 140 km of strike length of highly prospective Gunsteel Form ation • All mineral claims in Good Standing to Oct 2 0 2 9 • 7 9 ,7 8 0 hectares in BC’s highly prospective Kechika Zn-Pb-Ag SEDEX belt • Belt hosts several base metal deposits ( Akie, Cirque, Driftpile ) & numerous lightly or untested drill targets 9
Tongling Nonferrous Metals Group In Integrated Chi China SOE: SOE: copper copper mi mining ng, mi mineral pr processing ssing, sm smelting elting & refining ning Ranked No.2 Rank No.2 in in Chi China & No.6 No.6 in in the the wo world in in ter terms of of copper copper ca cathode ode product oduction on (2008) 2008) Paid $678M Pa $678M in in 2010 2010 fo for Corrie Corriente Reso sources’ s’ unde undevelope loped Mi Mirador dor copper opper pr projects ts in in Ec Ecuador Tonglin ling ‐ le led Chi Chinese consorti nsortium um be began oper operations in in 2019 2019 at at its its $1 $1 billio billion Mi Mirador dor copper opper mi mine 10
Teck & Korea Zinc: Investors Teck & Korea Zinc Earn-in Agreem ent: Teck ( TSX: TCK.B) is: Option agreement to acquire interest in the One of the world’s largest producers of Pie, Cirque East & Yuen properties (three of mined zinc (705,000 tonnes of zinc the contiguous Kechika properties) concentrate in 2018) $3.5 million in cumulative exploration Red Dog mine in Alaska is one of the world's expenditures to end of 2017 largest zinc mines Teck & Korea Zinc have exercised Option: now own 51% of 3 of 10 Trail Smelter in BC is one of the world's Kechika Regional properties largest fully-integrated zinc & lead smelting and refining operations (303,000 tonnes in High priority drill targets identified for 2018) testing: JV formed with ZNX to continue exploration Teck/ KZ jointly own the Cirque deposit which lies 20 km NW of ZNX’s Cardiac Creek Teck & Korea Zinc Private Placem ent: deposit. Acquired 1,250,000 units of ZNX at a price per unit of $0.40 when share price was Teck/ KZ properties in Kechika Trough trading at $0.20 (Cirque, Elf & Fluke) are contiguous with ZNX mineral claims 11
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