Canadas Most Active Diamond Explorer Corporate Presentation for - - PowerPoint PPT Presentation

TSXV:NAR TSXV: NAR

Corporate Presentation for Investors Diamond Session PDAC

March 4, 2019

Canada’s Most Active Diamond Explorer

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.

2

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 October 31st, 2018

• Capitalization

Listing: TSX Venture – NAR Issued: 92.8 M Options: 8.9 M Warrants: 26.5 M (20 M at $0.40) Fully diluted: 128.2 M Estimated Working Capital: ~$1.3 M

• Main Shareholders

Management and Directors ~16.1% Zebra Holdings and Investments ~10.4% Electrum Strategic Opportunities Fund ~8.6% Ross Beaty ~8.6% Corporate Highlights 3

• 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; Founder of Stornoway; Currently director of Suncor. William Lamb (Advisor) Former CEO of Lucara, 20+ years project development experience with Lucara, De Beers, Kvaerner and Rand Mines. Allison Rippin Armstrong (Advisor) 20+ years CSR experience; Ex-Kaminak Gold.

CORPORATE OVERVIEW - PEOPLE

Management Highlights 4

• 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 2013-2018

DIAMOND DISCOVERIES: A CANADIAN LEADER

North American Diamond Exploration 5

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. LDG (JV w Dominion) 2019 drilling & sampling 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

CORPORATE OVERVIEW – PROJECTS

EXISTING DIAMOND MINE

7

DIAVIK EKATI VICTOR RENARD GAHCHO KUE

1

Advanced Stage

1. Naujaat (100%) Significant diamond inventory;

potential value upside: fancy orange-yellow diamonds

Assessing a known kimberlite or diamond deposit

Naujaat Proposed Community Access Trail NAR Laydown

NAUJAAT PROJECT – TICKS ALL THE BOXES

 Jurisdiction  Near tide water  Large tonnage  Low strip ratio  Significant diamond inventory*  Blue sky potential

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

Unique diamond value proposition

8

<3:1 vs >10:1 for NWT diamond mines ~48 Mt down to 205m below surface ~26M contained carats; ~50cpht 15 additional kimberlites for evaluation Freight costs 50% of NWT diamond mines Clear permitting path in Nunavut Q1-4 Kimberlite

Q1-4 DIAMOND DEPOSIT: STATUS

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

9 2016 – 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 WWW Conclusions from the 2015 Valuation:

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

2015 WWW Diamond Valuation 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 gem/jewelry trade

10

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 gem/jewelry trade
• 2. Nitrogen aggregation studies show the yellow and white

diamonds distinct populations 11

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 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

12 Potential value upside is based on SFD alone; does not take into account the fact that the yellow diamonds are fancy colours, worth a premium price, and of interest to high fashion jewelry trade

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 gem/jewelry trade
• 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 SFD alone; does not take into account the fact that the yellow diamonds are fancy colours, worth a premium price, and of interest to high fashion 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

Q1-4 10,000 TONNE BULK SAMPLE PLAN

16

Q1-4 Kimberlite NAR Laydown Area

• Economic diversification -

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

• Safer access to the land for traditional land

use activities and education

• Entirely within municipal boundary
• Community involved in route selection
• Permitting underway

NAUJAAT PROJECT – WAY FORWARD

Timeline: Start construction in 2019

17

Community Access Trail

Community led initiative: Economic & Cultural opportunities: Funding:

• Opportunities for government funding

• Take advantage of access trail & free digging

character - reduced cost & more local investment

• Test at least 3 phases (A28, A88, & A61)
• On site processing would allow for

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

• Innovative flow sheet & recovery options

NAUJAAT PROJECT – WAY FORWARD

Timeline: Sample collection & diamond recoveries in 2020

18

~ 10,000t bulk sample

Sample Collection: Sample Processing Options: Bulk Sample funding:

• Non-dilutive, project level funding options

Sample Goal:

• Confirm coarse SFD & value upside of orange –

yellow diamonds in Q1-4

CORPORATE OVERVIEW – PROJECTS

EXISTING DIAMOND MINE

19

DIAVIK EKATI VICTOR RENARD GAHCHO KUE

Discovery Stage

Mel Project (100%)

2

2

Kimberlite Field Discovered 2017

• New diamondiferous kimberlite field
• East central Melville Peninsula
• 18 km from ocean; 140 km south of Hall Beach;

210 km northeast of Naujaat

• Three kimberlites discovered to date
• Additional unexplained KIM anomalies
• 2018 property wide till samples

MEL – NEW CANADIAN DIAMOND DISCOVERY

20

Mel Project

MEL PROJECT – 2018 TILL SAMPLING

9

Arctic Ocean

ML8 Kimberlites ML345 Kimberlite

447 till samples collected in 2018 Preliminary results

• utline

several new target areas Quaternary study – an important tool for interpretation

• f till results

9

10 km

Total Kimberlite Indicator Minerals Mel Property Boundary Barren Sample Kimberlite 2018 Till Sample New Target Areas from Prelim 2018 Till Results

21

22 Legend

pyrope garnet eclogitic garnet ilmenite chromite chrome diopside drill hole

2 km

barren sample

18-ML-04 18-ML-02 & 03 18-ML-05 & 06 18-ML-01

ML8 Upper and Lower Kimberlites ML345 Kimberlite

MEL 2018 DRILL HOLE LOCATIONS

787.5 metres

• f drilling

completed in six holes. ML8 extended to

• ver 170m in

strike length; non magnetic intersections at depth - relationship unknown. Discovery of ML345 in holes 05 and 06 – target is >400 long.

?

Drill Holes 18-ML-02 18-ML-03 Country Rock Kimberlite Cracked Country Rock

ML8 (UPPER) & ML8 (LOWER) – SCHEMATIC CROSS SECTION

NE ML8 (Upper) Lake SW ML8 (Lower)

(18-ML-03 Looking South)

23

MEL KIMBERLITES – EXCELLENT MANTLE SAMPLE

24

• livine

pyrope garnet ilmenite

MEL PROJECT - MICRODIAMOND RESULTS

25

*Stones per tonne per Unit Interval

Body Sample Weight Dry Kg Number of Diamonds per Sieve Size (mm Square Mesh Sieve) +0.106

• 0.150

+0.150

• 0.212

+0.212

• 0.300

+0.300

• 0.425

+0.425

• 0.600

+0.600

• 0.850

+0.850

• 1.18

Total Stones ML8 (Lower) 24.15 3 2 1 1 1 8 ML8 (Upper) 270.5 20 16 17 10 1 2 3 69

1 cm

MEL PROJECT – PROXIMITY TO TIDE WATER!

OCEAN

ML-345 ML-8 Upper ML-8 Lower 26

EXISTING DIAMOND MINE

27

DIAVIK EKATI VICTOR RENARD GAHCHO KUE

Discovery Stage

Loki Project

(100%)

3 LDG Project

(JV w Dominion; ~26% NAR)

4

LAC DE GRAS PROPERTIES

• Large project area (147,200 ha) south
• f Diavik & Ekati; only 3 known kimberlites
• Dominion Diamond Mines (Operator) has

renewed focus on discovery to extend Ekati mine life

• $2.87M 2019 exploration program to include

exploration drilling

LAC DE GRAS PROPERTIES

28

• 8,607 ha; 100% NAR
• Kimberlite 465 discovered in 2018
• Diamondiferous EG05 kimberlite
• Additional targets near known kimberlites

and associated with unsourced KIMs

• Planning underway for till sampling,

geophysics in 2019 Lac de Gras (LDG) Joint Venture (NAR ~26%) Loki Property

EXISTING DIAMOND MINE

29

DIAVIK EKATI VICTOR RENARD GAHCHO KUE

Discovery Stage

Pikoo Project

(100%)

5

PIKOO PROJECT, SK

PIKOO PROJECT, SK

23 +0.85 mm stones recovered from initial 2013 209 kg PK 150 sample

• North Arrow (100%)
• Good local infrastructure - within 10 km
• f SK Hwy 911
• 10 kimberlite discoveries; 5 tested

kimberlites are diamondiferous

• PK150 – 1,232 diamonds > 0.106 mm

from 531 kg

• Till sampling suggests more

unique unsourced KIM trains

• 2018 staking of new claims

bordering the west of the property 30

PK150 PK314 & PK346 PK312 PK311

Mantle Nodule from PK150, 2016 drilling

2019/20 WAY FORWARD

20 31

Naujaat Community access trail; bulk sample permitting & funding; revised geological model Mel KIM results (447 till samples); geophysics & target generation LDG $2.8M program including ground geophysics & exploration drilling Loki Ground gravity, till sampling & target generation Pikoo Till sampling & target generation

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

4 kimberlite (~26 million carats)

• 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

32 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