Canadas Most Active Diamond Explorer December 2019 CAUTIONARY - - PowerPoint PPT Presentation

TSXV:NAR TSXV: NAR

Canada’s Most Active Diamond Explorer

December 2019

This presentation contains projections and forward looking information that involve various risks and uncertainties, including, without limitation, statements regarding the potential extent of mineralization, resources, reserves, exploration results and plans and

• bjectives of North Arrow Minerals Inc. These risks and uncertainties include, but are

not restricted to, the amount of geological data available, the uncertain reliability of drilling results and geophysical and geological data and the interpretation thereof and the need for adequate financing for future exploration and development efforts. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward looking statements should circumstances or management's estimates or

• pinions change.

1

CAUTIONARY STATEMENT

Forward Looking Information Qualified Person under NI 43-101

Disclosure of a scientific or technical nature related to North Arrow’s projects in this presentation has been reviewed and approved by Ken Armstrong, P.Geo. President and CEO of North Arrow and a Qualified Person under NI 43-101.

CORPORATE OVERVIEW

as of November 12, 2019

• Capitalization

Listing: TSX Venture – NAR Issued: 110.7 M Options: 10.3 M* Warrants: 44.4 M (25 M @ $0.225, 17.9 M @ $0.10) Fully diluted: 165.4 M Estimated Working Capital: ~$1.0 M

• Main Shareholders

Management/Directors/Advisors ~24.4% Zebra Holdings and Investments ~10.3% Electrum Strategic Opportunities Fund ~10.3% Ross Beaty ~8.8% Corporate Highlights 2 *Includes stock options issued November 8, 2019

• D. Grenville Thomas (Chairman) Founder of Aber (now Dominion Diamond), discoverer
• f the Diavik Diamond Mine; Canadian Mining Hall of Fame inductee.

Ken Armstrong P.Geo.(ON) (President, CEO, Director and Qualified Person under NI 43-101) Diamond exploration and evaluation experience with Diavik, Aber, De Beers, Navigator, and Stornoway. Christopher Jennings (Director) Founder of SouthernEra, consultant to Aber; formerly with International Corona Corp., BP Minerals (Canada) and Falconbridge. Blair Murdoch (Director) More than thirty years experience in senior management of private and public companies. Eira M. Thomas (Advisor) Extensive diamond exploration and development experience in Canada and Africa; Founder, CEO & director of Lucara; former officer and director of Aber; former CEO of Kaminak Gold Corporation (acquired by Goldcorp in 2016 for $520 million); currently director of Suncor. Robin Hopkins (Advisor) 25+ years diamond exploration, evaluation and development experience with Stornoway, Navigator, and Aber. Allison Rippin Armstrong (Advisor) 20+ years CSR experience; Ex-Kaminak Gold.

CORPORATE OVERVIEW - PEOPLE

Management Highlights 3

• Six kimberlite fields

discovered in the last six years.

• North Arrow discovered

two of them: (1) Pikoo & (2) Mel; the only junior explorer to make a discovery in that period.

• Both significantly

diamondiferous.

J:\1Maps\NorthAmerica\CanadaDEM\DEM

Kimberlite and related rocks Pre-1981 1981-2012 2013-2019

DIAMOND DISCOVERIES: A CANADIAN LEADER

North American Diamond Exploration 4

1 2

CORPORATE OVERVIEW – PROJECTS

EXISTING DIAMOND MINE

Grassroots

7. Timiskaming (JV w SWY)

7

DIAVIK EKATI VICTOR RENARD GAHCHO KUE

Discovery Stage

2. Mel (100%) Kimberlite Field discovery 3. Loki (100%) Kimberlite 465 discovered 2018;

1st Lac de Gras discovery in > 5 years

4. LDGJV (Dominion) Kimberlite discovery in 2019 5. Pikoo (100%) Kimberlite Field discovery 6. Luxx (100%) Permitted & drill ready

Advanced Stage

1. Naujaat (100%) Significant diamond inventory;

potential value upside: fancy orange-yellow diamonds

Assessing a known kimberlite or diamond deposit

8

Brownfields Gold

1

8. Hope Bay (100%)

Next stage of diamond exploration could lead to discovery

2 5 6

Target development Within 3km of TMAC’s Doris Mine; similar geology and structures

5

CORPORATE OVERVIEW – PROJECTS

EXISTING DIAMOND MINE

6

DIAVIK EKATI VICTOR RENARD GAHCHO KUE

1

Advanced Stage

Assessing a known kimberlite or diamond deposit

1. Naujaat (100%) Significant diamond inventory; potential value upside: Fancy

• rangey-yellow

& yellow diamonds

NAR Laydown Q1-4 Kimberlite

NAUJAAT PROJECT

• Q1-4 Kimberlite
• Access Trail
• Access to Multiple Kimberlites
• Bulk Sample

7

• Passes within 1.5 km of Q1-4 diamond deposit
• Within 6 km of three other large

diamondiferous kimberlites

• Community led initiative
• Funding options: Federal, Territorial,

North Arrow

• >20M carats to 200m below surface*
• >12 ha; low potential strip ratio (<2:1)
• Within municipality of Naujaat
• ~8km from coast
• Access trail designed to handle 20 tonne truck
• ‘Spur road’ will give truck access to Q1-4
• Flexibility to process at site or at Laydown

Access Trail ATV Upgrade: Access Trail New Alignment: Spur Road: Kimberlite: Bridge: Culvert: Aggregate Deposit:

11 km 4 km 1.5 km

* CAUTION – Inferred Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability

Q1-4 DIAMOND DEPOSIT: STATUS

Q1-4 “run of mine” from 2014 sample; +9DTC and above.

8 2015 – Commenced two phase approach to show value upside of Q1-4 diamonds: 1) Cutting/polishing of yellow diamonds 2) Analysis of diamond size frequency distributions (SFD) Primary conclusions from the 2015 valuation:

• Parcel too small
• Yellow diamonds were considered of little interest.

2015 diamond valuation was based on 384 carats recovered from ~1,350 t $92 per carat modelled “possible high” | $43 per carat modelled “possible low”

Q1-4 DIAMOND PROJECT: STATUS

How the project advanced (2015 to present):

• 1. Cut & Polished Yellow Diamonds:
• Certified by GIA as fancy vivid orangey yellow diamonds
• Desirable to the luxury gem/jewelry trade

9

Q1-4 DIAMOND PROJECT: STATUS

How the project advanced (2015 to present):

• 1. Cut & Polished Yellow Diamonds:
• Certified by GIA as fancy vivid orangey yellow diamonds
• Desirable to the luxury gem/jewelry trade
• 2. Nitrogen aggregation studies show the yellow and white

diamonds are distinct populations 10

Q1-4 DIAMOND PROJECT: STATUS

How the project advanced (2015 to present):

• 1. Polished Yellow Diamonds:
• Certified by GIA as fancy vivid orangey yellow diamonds
• Desirable to the luxury gem/jewelry trade
• 2. Nitrogen aggregation studies show the yellow and white

diamonds distinct populations

• 3. Yellow diamonds show a much coarser size frequency

distribution (SFD) implying potential for higher abundance

• f yellow diamonds in coarser sizes

11

Q1-4 Grade/Size Curve Comparative Curves

Total Parcel ‘Dark Yellow’

• nly

Q1-4 DIAMOND PROJECT: STATUS

How the project advanced (2015 to present):

• 1. Polished Yellow Diamonds:
• Certified by GIA as fancy vivid orangey yellow diamonds
• Desirable to the luxury gem/jewelry trade
• 2. Nitrogen aggregation studies show the yellow and white

diamonds distinct populations

• 3. Yellow diamonds show a much coarser size frequency

distribution (SFD) implying potential for higher abundance

• f yellow diamonds in coarser sizes
• 4. 2015 possible low to high model prices applied to the coarse

yellow SFD scenario results in low to high price range of $60 to $220 per carat 12

Q1-4 Grade/Size Curve Comparative Curves

Total Parcel ‘Dark Yellow’

• nly

Q1-4 DIAMOND PROJECT: STATUS

How the project advanced (2015 to present):

• 1. Polished Yellow Diamonds:
• Certified by GIA as fancy vivid orangey yellow diamonds
• Desirable to the luxury gem/jewelry trade
• 2. Nitrogen aggregation studies show the yellow and white

diamonds distinct populations

• 3. Yellow diamonds show a much coarser size frequency

distribution (SFD) implying potential for higher abundance

• f yellow diamonds in coarser sizes
• 4. 2015 possible low to high model prices applied to the coarse

yellow SFD scenario results in low to high price range of $60 to $220 per carat

• 5. At this price the project is very attractive

13 Potential value upside is based on coarse SFD alone; does not factor in that yellow diamonds are fancy coloured, worth a premium price, and of interest to luxury jewelry trade

Q1-4 - LARGE TONNAGE, EASY ACCESS

~700m ~200m

Q1-4 looking southwest: 12.5 ha kimberlite 14

• Easy surface

access to A28, A61 & A88 phases

• Current Q1-4

resource ~48Mt to 205m depth

• Modelling

suggests extending the resource to 300m depth could result in strip ratio < 3:1

• 2017 drilling

extended Q1-4 below 300m

Q1-4 DELINEATION DRILLING

• Several deep drill holes remained in kimberlite

>100m beyond the current model and well below 300m from surface. 15 B

Looking North

Current TFFE

0 m 100 m 300 m 200 m

B A A’ B’

2017 drill holes on 2013 resource model

Looking West

A A’

0 m 100 m 300 m 200 m

B’

Current TFFE

WAY FORWARD – TWO CURRENT OPTIONS

Two important questions regarding the Q1-4 diamonds 1. What is the size frequency distribution of the orangey yellow diamonds in the larger sizes? 2. What is the average diamond value per carat of the diamonds at Q1-4?

• Collect 1500-2000 tonnes of kimberlite in summer

2020, transport by helicopter to town and process down south.

• Will answer the first question regarding the SFD of the
• rangey-yellow population (blue or red trajectory).

Option 1

• Collect ~10,000 tonnes, transport by Community Access

Trail; process in Naujaat (complete in 2021).

• Will answer both questions.

Option 2

16

Q1-4 Grade/Size Curve Comparative Curves

Total Parcel ‘Dark Yellow’

• nly

• Mini-excavators & free digging character;
• Helicopter supported
• Test at least 2 phases (A28 & A88)

WAY FORWARD – OPTION 1

1 Year Timeline: Sample collection & diamond recoveries in 2020

17 ~ 1,500-2,000t Sample from Q1-4 Permitted & turn-key program Sample Collection:

• Ship sample south for processing

Sample Processing Options: Sample Goal:

• Confirm coarse SFD of orange – yellow diamonds

Pros:

• Staged approach – confirming coarse SFD is binary
• Permit and excavators in place – short ramp up
• Modelled on 2014/15 bulk sample – cost certainty

Cons:

• Diamond value remains unanswered

8

• Same as 2014 & 2017
• Small excavator
• Bags delivered by helicopter to

laydown area in Naujaat

• Transported by sealift to Montreal
• Trucked to laboratory for diamond

recovery 18

WAY FORWARD – OPTION 1

• Take advantage of free digging character & community

access trail - reduced cost & more local investment

• Test at least 3 phases (A28, A88, & A61)

Two Year Timeline: Sample collection & diamond recoveries in 2021

19 ~ 10,000t bulk sample from Q1-4 Sample Collection:

• Access could allow for on site processing:

i) simultaneous collection/processing ii) staged diamond recovery iii) faster results

• Innovative flow sheet & TOMRA optical sorting

Sample Processing Options: Bulk Sample funding:

• Non-dilutive, project level funding options

Sample Goal:

• Confirm coarse SFD & value

upside of orange – yellow diamonds

WAY FORWARD – OPTION 2

OPTION 2 – PROCESSING IN THE NORTH

20

• Economic diversification -

i) Access to aggregate ii) Access to carving stone iii) Tourism (outfitters; education) iv) Evaluation of Q1-4

• Safer access to the land for traditional land

use activities and education

• Hamlet is project proponent
• Entirely within municipal boundary
• Permitting & funding are underway

OPTION 2 – REQUIRES ACCESS TRAIL

Timeline: Start construction in 2020 Community led initiative: Economic & Cultural opportunities: Funding:

• Applications submitted for Territorial and

Federal government funding 21

NAR Laydown Q1-4 Kimberlite

Access Trail ATV Upgrade: Access Trail New Alignment: Spur Road: Kimberlite: Bridge: Culvert: Aggregate Deposit:

11 km 4 km 1.5 km

Community Access ATV Trail Upgrade

Q1-4 A34 A94 A76

ROAD ACCESS: FURTHER EVALUATION OF CLUSTER

A94

• ~10 hectares
• Diamondiferous
• 2 angled drill

holes (@450)

• Both >300m &

ended in kimberlite

All other kimberlites are under-evaluated with limited drilling – similar age & mantle sample as Q1-4

• ~3 hectares
• Diamondiferous
• 2 angled drill

holes (@450)

• 1 hole ends in

kimberlite

A34

• ~3 hectares
• Diamondiferous
• 3 angled drill

holes

A76:

22

23

A34 A94 A97 A76 A42 A152 A59

RENEWED EVALUATION OF OTHER KIMBERLITES

A34 A34 Cross Section - Looking West 100 m 2003-08-08 2003-08-07

220 m

RENEWED EVALUATION OF OTHER KIMBERLITES

2003-08-08 2003-08-07 220 m

?

satellite image airborne magnetics airborne EM 6200 Hz

Kimberlite A34

24

2003-08-25 2003-08-14 385 m

satellite image airborne magnetics airborne EM 6200 Hz 2003-08-14 2003-08-25 100 m

385 m

? A94 Cross Section - Looking Northwest

Kimberlite A94

RENEWED EVALUATION OF OTHER KIMBERLITES

25

WAY FORWARD – SUMMARY TIMELINE

26

• Fabrication – ~October order to meet June delivery
• Delivery/Commissioning – Earliest Summer 2021
• Currently permitted for 1,500t – Summer 2020
• Processing & Results fall 2020/spring 2021
• 10,000t sample – requires access road
• Permitting required (drafting stage)
• Earliest collection - 2021

Processing Plant: Design Engineering Study Access Trail: Permitting & Funding – In Progress

• Construction start – Summer 2020 (funding needed)
• Construction completion – Late 2020 / early 2021

Exploration Potential: Detail Review & Evaluation – In Progress Bulk Sample: Staged Approach

There is no other diamond project in the world at this stage of assessment without the involvement of a diamond producer. SFD & Diamond value are the last variables. All the other boxes are ticked.

$- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 Margaret Lake Arctic Star GGL Metalex Tsodilo Olivut Lithoquest North Arrow Pangolin Star Diamond $1.1 $1.3 $2.3 $2.8 $3.2 $3.2 $3.6 $5.5 $9.6 $132.9

MARKET CAP (IN MILLIONS) OF CANADIAN JUNIOR DIAMOND EXPLORERS

Millions of dollars

MARKET CAP COMPARISONS (as of November 29, 2019)

27

$- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 North Arrow Lucapa Gem Petra Mountain Province Lucara $5.5 $55 $126 $130 $244 $349

MARKET CAP IN MILLIONS – NORTH ARROW

• VS. DIAMOND PRODUCERS

Millions of dollars

• One of Canada’s largest under-evaluated diamond inventories at Naujaat’s Q1-4

kimberlite – clear evaluation path & soon to have road access!

• Two new diamondiferous kimberlite fields – Mel & Pikoo
• 465 – first Lac de Gras kimberlite discovery in over 5 years
• 6 drill-ready (and fully permitted) diamond properties; including 5 that

host known diamondiferous kimberlite – Naujaat, Mel, Pikoo, Loki & LDG

DIAMOND DISCOVERIES: A CANADIAN LEADER

29 NAR: Canadian diamond sector’s most active & successful explorer over the last 6 years

TSXV: NAR

Ken Armstrong

President & CEO

Nick Thomas

Community and Investor Relations Manager Suite 960-789 West Pender Street Vancouver, BC Canada V6C 1H2 Tel: +1.604.668.8354 Fax: +1.604.336.4813 info@northarrowminerals.com www.northarrowminerals.com @narminerals northarrowminerals