Committed to building long-term stakeholder value at the - - PowerPoint PPT Presentation

www.euromaxresources.com

Euromax Resources Ltd. | TSX: EOX

Committed to building long-term stakeholder value at the Ilovica-Shtuka copper-gold project in Macedonia through development and responsible mining

Disclaimer

This presentation contains statements that are forward-looking, such as those relating to results of operations and financial condition, capital spending, financing sources, commodity prices, mineral resources and property evaluation plans and programmes. Forward- looking statements are frequently characterised by words such as “plan”, “expect”, “project”, ”intend”, ”believe”, ”anticipate” and

• ther similar words, or statements that certain events or conditions “may” or “will” occur.

Forward-looking statements are based on the opinions and estimates of management at the dates the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The forward-looking statements contained in this document are as of the date of this document, and are subject to change after this date. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Euromax disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 2

The Ilovica-Shtuka Project

• In the heart of Europe, South-Eastern Macedonia
• Porphyry copper-gold deposit
• Low strip open pit
• Homogenous orebody with metallurgy receptive to basic,

traditional, low-cost processing

• Bulk tonnage
• Simple to develop
• Feasibility Study Completed in early 2016, optimisation

work underway towards construction

Concession area Located in the southeast of Macedonia Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 3

• 2004 – Exploration License • 2006 – Ilovica 6 Exploration Concession • 2008 – First mineral resource estimation • 2011 – Ilovica 11 Exploration Concession

Project Timeline

2012 2013 2014 2015 2016 2017

• Resource

Estimate

• Preliminary Assessment
• Pre-Feasibility
• EIA Submission (Ilovica 11)
• Main Mining Project Submission
• Int. ESIA
• Exploitation Concession (Ilovica 11)
• Exploitation Permit Application

Current Management Group Appointed and Invests $6 million

• Exploitation Concession (Ilovica 6)
• EIA Approval (Ilovica 6)

Exploration Drilling 2004-2013 and Baseline Additional Drilling and Geotechnical Investigations, Baseline and Monitoring Scoping Initial Engineering and Testwork Basic Engineering Front End Engineering Studies and Monitoring

Funding Site Work Project Phase Project Milestones Submissions & Approvals

• Feasibility
• EPCM
• Mining Contract

Private Placements $4.7 million EBRD $5 million Convertible Loans $8.9 million RG Advance Payment $11.3 million

• Aurubis Offtake Term Sheet

Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com

Investec Plc $5 million

4

Feasibility Study Results

Mineral Reserve

• 2 Million oz Gold
• 900 Million lbs Copper

Pre-tax NPV(5%/8%) US$ 513m / US$ 347m IRR: 19.8% Post-tax NPV(5%/8%) US$ 440m / US$ 285m IRR: 17.8% Initial capex (Inc. Contingency) Life of Mine After tax payback period C1 Cash Cost US$ 474.3 million 20 years 4.3 years US$ 0.42/lb

Years 1-5 6-10 11-20 Total Avg Annual Payable Production

(Rounded)

Au (oz/yr) 103,000 90,000 65,000 1,620,000 Cu (t/yr) 20,800 16,800 13,000 317,000 Total CuEq (t/yr) 40,500 34,100 25,600 638,000

Metal Prices: Au US$ 1220 /oz, Cu US$ 2.90 /lb; Early 2016 release date Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 5

• 1.5 km in diameter porphyry system, associated with a poorly exposed dacite-granodiorite plug
• Resource drilling completed to nominal 50m spacing
• A total of 42,032m have been drilled for 130 drillholes
• Consistent mineralisation with good grade continuity

Geology

Measured and Indicated Fresh Mineral Resource Based upon a Dollar Equivalent cut-off of US$16/t Classification Tonnage (Mt) Grade Contained Metal Au(g/t) Cu (%) Au (Moz) Cu (Mlb) Measured 147.1 0.31 0.23 1.5 729.500 Indicated 109.7 0.33 0.20 1.1 479.000 Total M & I 256.8 0.32 0.21 2.6 1,208.500 Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 6

Mining

• Strip Ratio 1:1 – open pit
• Conventional drilling and blasting together

with shovel and trucks supported by a fleet

• f

ancillary equipment

• Two hydraulic shovels with a fleet of up to 19 rigid

dump trucks

• Based on 0.17% Cu cut-off
• Mining cost, ore and waste US$ 1.84/t

Proven and Probable Reserves Classification Tonnage (Mt) Grade Contained Metal Au(g/t) Cu (%) Au (Moz) Cu (Mlb) Probable 112.6 0.30 0.19 0.84 355.0 Proven 85.5 0.32 0.22 1.17 543.9 Total P & P 198.1 0.32 0.21 2.01 898.9 Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com

0.00% 0.02% 0.04% 0.06% 0.08% 0.10% 0.12% 0.14% 0.16% 0.18%

CuEq Grade Recovered/t Mined

7

Processing

• 10Mt pa throughput
• Primary gyratory in pit crusher with conveyor

from pit to plant

• SAG mill with two ball mills
• Work index 12-16
• Flotation to a clean copper concentrate
• Cleaner scavenger tails feeds into CIL circuit for further gold

production as doré

• Process recoveries of 84% Cu & 88% Au to concentrate & doré
• Process operating costs US$ 6.73 /t
• 1. Mining
• 2. Crushing
• 3. Grinding and Flotation
• 4. Thickening
• 5. Tailings

CIL Au Dore Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 8

Tailings Management Facility

• Downstream method of construction and wall raising

to safeguard the long term integrity

• Conservative slopes of 2.5:1 constructed from rockfill

from the open pit waste rock

• Design based on the 1 in 10 000 year Maximum

Design Earthquake event (9.2 on the Richter Scale)

• The spill ways are sized for a 1:100 year rainfall event.

Any further spill will be captured by storm water dam.

• Complies with International Commission on Large

Dams (ICOLD) “Tested to 10,000 year seismic event which shows damage to the dam is acceptable as long as the integrity and stability is maintained and the release of the impounded tailings is prevented” i.e. no breach and spill even with an earthquake.

Conservative slopes Sterile Rockfill – Downstream Construction Starter Wall (625 masl) Tailings Final Embankment (776 masl)

Pit Plant Tailings Embankment Storm water dam

Foundation Material Bedrock (Impenetrable)

Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 9

Logistics

• Bulk flotation - produces clean concentrate of 24% Cu & 24g/t Au
• 60,000 – 100,000 tpa concentrate production using 30t trucks
• Road Transportation (A3 Motorway) directly to the Pirdop

smelter at costs of US$26.4 per tonne of concentrate

• 300km / 4-5 hour Journey time
• Customs @ Site & Smelter
• Aurubis Offtake

Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 10

Regional Infrastructure

Power Distribution Power infrastructure based on new 110 kV overhead transmission lines from existing substations at Berovo and Sushica

Existing MEPSO 110kV Substation Sushica

Water Supply Water pumping scheme maximises water retention from tailings and ensures sufficient make-up water in all seasons and at start-up

• Turija reservoir via new pipeline to Ilovica dam
• Groundwater as possible cheaper source

Access Roads Haul road and access road costs developed based on local quotes

• Within 7 kilometres of main road
• Main Access Roads
• Primary & Secondary Roads

Turijareservoir Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 11

Capex & Opex

Initial Capex Breakdown (US$m) Mining & Fleet $75.2 Processing Plant $199.6 Owner’s Costs $33.2 Infrastructure $26.0 Tailings Management Facility $42.9 EPCM Contractor $53.2 Temporary Works $3.7 Sub-Total $433.8 Contingency $40.4 Total $474.2 Operating Costs (US$/t ore) Mining (average – inc. labour) $3.54 Processing $6.73 Labour $0.88 Reagents $1.76 Operating Consumables $1.08 Power $2.29 Maintenance Materials $0.65 Mobile Equipment $0.01 Laboratory $0.05 Sub-Total $10.26 General Administration $0.38 Total $10.64

• Strip Ratio 1:1
• US$ 1.8/t of material

moved 12 Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com

Capex Breakdown

• 60
• 10

40 90 140 190 240 5,000 10,000 15,000 20,000 25,000 30,000

Halilaga Karchiga Harper Creek Ilovica-Shtuka La Arena Ajax Rosemont Morrison Schaft Creek Prosperity (Fish Lake) Turkey Kazakhstan Canada Macedonia Peru Canada USA Canada Canada Canada

Capital Intensity (US$/tpa Av. CuEq) & C1 (USc/lb)

Capital Intensity (US$/tpa Av. CuEq) C1 (USc/lb) Capital Intensity (US$/tpa Av. CuEq) C1 (c/lb)

13 Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com

• Mine plan

SRK (UK) Optimisation, including new fleet size and detailed production schedule, detailed equipment specs and pricing available

• Geotechnical drilling

SRK Additional holes in the open pit to confirm slope stability

• Contract mining

Euromax Tender process complete

• TMF construction

Golder (UK) Embankment construction methodology advanced, design criteria for detailed design agreed

• FEED package

Amec Foster Wheeler (SA) Engineering advanced, bids for long lead items of equipment received

• HAC (High Angle Conveyor)

Dos Santos International Detailed design study completed end of November 2016

• Phase III Metallurgical test

work SGS - UK Confirmatory programme to optimise reagent types and consumption

• Geotechnical drilling

AFW Additional holes in the specific process plant equipment locations

• Hydrogeological drilling

WSP (SWS) Boreholes in the Strumica valley to determine additional water supply

• EPCM/EPC

Euromax Bids received (31/10) including Ausenco proposals

• Permitting

Euromax EIA and MMP submitted for review in accordance with the concession agreement deadline

• Land Acquisition

Euromax/LA consultant (EBRD approved) Negotiation and legal team in place, work started with land within the concession and with other users of the area

• Human Resources

Euromax HR Consultant engaged by Euromax to assist with policies, procedures, recruitment and operational readiness

Post Feasibility Study Activities

Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 15

Contract Mining

• Received 3 bids through a tender process
• First 7 years of mine life (prestrip & 5 year ops)
• US$ 1.79/t of material moved with US$ 58.5m capex

Engineering, Procurement and Construction Contract Ausenco Engineering Canada

• Guaranteed Maximum Price Delivery
• Transparency of initial open book
• Lump Sum Turnkey EPC Contract
• Comminution equipment costs reduced from more

detailed quotes from suppliers

• Lower infrastructure costs using local quotes and

supply together with reducing foot print

Optimisation & Execution

Direct costs Indirect costs Contractor Risk Accuracy/ Escalation Fixed Price EPC

OPEN BOOK

Phase 3 Engineering / Initial Procurement

CLOSED BOOK

Fixed Price EPC Execution Guaranteed Maximum Price (GMP) Direct costs Indirect costs Contractor Risk Accuracy/ Escalation 3 months Time

OPEN BOOK

Phase 2 Value Improvement / Basic Engineering Scope Definition Engineering & Cost Review 1 month

OPEN BOOK

Phase 1 Project Review 3 months

Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 16

Environmental and Social Aspects

Environmental Baseline Social Baseline

• Water monitoring
• Air quality monitoring
• Meteorology
• Ecology and biodiversity
• Noise
• Landscape and Visual
• Geomorphology and Soils
• Socio-economic survey
• Stakeholder engagement Rounds 1, 2, 3
• SE presentations
• Focus group meetings
• Key informant interviews
• Archaeology and Cultural Heritage
• Traffic survey

Macedonian Regulative & International best practice standards governing the mining sector EBRD Performance Standards| Equator Principles III

Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 17

Macedonia

• Former Yugoslav Republic
• Independent since 1991

Parliamentary democracy

• EU & Nato Candidate Country
• Leading Parties:

SDSM (Current Prime Minister) VMRO DPMNE (Past 10 yrs)

• Ethnic groups:

Macedonian 64% Albanian 25% Turkish, Serbian and others 11%

• Population – 2.1 million (41.5% under the age of 30)
• Currency – Macedonian Denar, pegged to EUR
• Unemployment rate – 23%, educated workforce
• Country Risk Rating – 7 year 4% Eurobond issued in 2014

Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 18

Mining in Macedonia

CAML SASA - MK Kamenica Lead, Zinc and Silver MINSTROY HOLDING TORANICA – Kriva Palanka Lead, Zinc and Silver MINSTROY HOLDING ZLETOVO – Probishtip Lead, Zinc and Silver SOLWAY GROUP BUCHIM - Radovish Copper, Gold Porphyry Open Pit Cu 0.2% Au 0.2g/t Production: 20,000t/yr CuEq SARDICH MC KAZANDOL - Valandovo Copper and Gold Production: 4,400 t/y of Cu cathodes GENESIS RESOURCES PLAVICA – Kratovo Gold, Copper and Zinc

Operating Development

EUROMAX RESOURCES ILOVICA-SHTUKA Copper and Gold Cu 0.21% Au 0.32 g/t Production: 28,000 t/y CuEq

Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 19 Albania Serbia Bulgaria Greece

Towns

24

Varshan Gokool, President & CEO

• Extensive project finance experience.
• Corporate and banking background, including European Goldfields,

Treasurer at Katanga Mining Limited, Vice President in Societe Generale's Mining Finance team.

Patrick Forward, COO

• +25 years global experience in project development and execution:

exploration, managing engineering studies up to detailed engineering, operational management.

• Qualified Person for NI 43-101 reporting.
• Formerly VP head of projects at European Goldfields.

Martyn Konig, Executive Chairman

• +30 years’ experience in banking and commodities.
• Non-Executive Director of New Gold Inc. and Chairman of Nyrstar.

Steve Sharpe, Non-Executive Director

• +30 years in investment banking, focused on the mining sector in

Europe & The Americas.

• Senior management positions at European Goldfields, Canaccord,

Endeavour Financial, Standard Bank, and NM Rothschild & Sons Ltd.

Wealth of Experience

Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com

Tim Morgan-Wynne, Non-Executive Director

• Previously CFO at European Goldfields and Director of Resources and Energy Group at

HSBC Bank plc.

• Experience in financing projects: Europe, North America, Africa.

Randy Matkaluk, Non-Executive Director

• CFO of privately owned oil and gas company Capio Exploration Ltd.
• Director at Triangle Petroleum Corp.

Bill Abel, Non-Executive Director

• +40 years of senior professional experience at major international mining companies.
• Specialty in operations, management and project development and implementation.

Raymond Threlkeld, Non-Executive Director

• +30 years’ experience in mineral industry.
• Currently serves as Senior Advisor of Calibre Mining Corp. and he's been also a Director
• f Northern Empire Resources Corp. Former Executive Chairman of Newmarket Gold
• Inc. and Non-Executive Director of New Gold Inc.

Lou Naumovski, Non-Executive Director

• +35 years broad multi-disciplinary experience, including general management and

business development in gold mining and banking.

• Senior management positions at Kinross Gold Corporation, Visa International Service

Organisation, CERBA, CESO and is also member of the Board of Amur Minerals Corporation and Trans-Siberian Gold.

Share price against Market Vector Junior Gold Miners Index and Copper price

Corporate Information

Capitalisation Overview Market cap Closing price (13 Dec 17) 52 Week High 52 Week Low Shares Basic Shares Fully Diluted C$ 40.6 M C$ 0.275 C$ 0.68 C$ 0.265 135.8 M 213 M Major Shareholders Holding EBRD Richard Griffiths Richmond Capital Management* Equinox Partners Investec Bank Plc 17.3% 16.5% 10.1% 10.1% 9.9% 6.8%

Research Coverage: CIBC, Echelon Wealth Partners

*Including vested Incentive LTIP

Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 20.00 40.00 60.00 80.00 100.00 120.00 140.00 GDXJ Index Copper Price Index EOX Index 23

Next Steps & Conclusion

Development

• Technical
• Incorporate Ag into Resource
• Complete stage 1 of EPC Process –

Guarantee Maximum Price

• Complete Mining Contract negotiation
• Issue Optimised Technical Report
• Complete next permitting steps with the new

Macedonian Government in place

• Develop and optimise Finance Plan
• Market the Euromax Story

Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 25

Ilovica-Shtuka, a Company Builder

• Low Strip and good effective grade
• Low operating cost, with good infrastructure to

support this

• Decent size, good mine life, with capex achievable

for a junior mining company

• One of the first new copper projects coming into

production

• Good cashflow to shareholders
• Rerating potential with Optimised Technical Report

and permits

Early Copper Production

500 Mt 1,500 Mt Bubble size based on the size of total resource tonnage

200 400 600 800 1000 1200 1400 2018 2019 2020 2021 2022 2023 Initial CAPEX US$ M

Morrison Halilaga Rovina Valley Ajax (Permit declined) Ilovica-Shtuka La Arena Harper Creek

Total Resources Tonnage vs. Initial Capex

Production Start Year

Pre-Feasibility Study Feasibility Study 20 Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com

Low Cost Production

• 50.0
• 30.0
• 10.0

10.0 30.0 50.0 70.0 90.0 110.0 130.0 150.0 170.0 190.0 210.0 230.0 250.0 270.0

• 50.0
• 30.0
• 10.0

10.0 30.0 50.0 70.0 90.0 110.0 130.0 150.0 170.0 190.0

CuEq Avg Annual Production (Mlb) & C1 (USc/lb)

C1 (USc/lb) CuEq Avg Annual Production (Mlb) CuEq Avg Annual Production (Mlb) C1 (USc/lb)

21 Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com

Revenue Distribution

Total Revenue Distribution, LOM, US$ Billion

32% 17% 10% 2% 33% 6%

Total Revenue US$4.08 B Au Revenue US$1.5 B Cu Revenue US$2.0 B Ag Revenue US$0.08 B Doré Revenue US$0.5 B

EBITDA US$1.3 B • Smelting, Refining, Transport $0.25 B • Mining US$0.7 B •

• Direct Taxes US$0.4 B
• G&A US$0.08 B
• Processing US$ 1.3 B

14 Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com

Metal Prices: Au US$ 1220 /oz, Cu US$ 2.90 /lb

Cash Flows by Period (Au US$ 1220 /oz, Cu US$ 2.90 /lb) Yr 1-5 Yr 6-10 Yr 11-23 Average Annual Operating Cashflow Post Tax $112 million $84 million $24 million Total Operating Cashflow Post Tax $560 million $420 million $323 million

Cash Flow Profile

Operating EBITDA US$ M (LOM) Gold price (US$/Oz) Copper price (US$/lb) 1,020 1,070 1,120 1,170 1,220 1,270 1,320 1,370 1,420 2.30 676 756 835 915 994 1074 1153 1,233 1,312 2.50 813 893 973 1,052 1,132 1,211 1,291 1,370 1,450 2.70 951 1,030 1,110 1,189 1,269 1,348 1,428 1,507 1,587 2.90 1,088 1,167 1,247 1,326 1,406 1,485 1,565 1,644 1,724 3.10 1,225 1,304 1,384 1,464 1,543 1,623 1,702 1,782 1,861 3.30 1,362 1,442 1,521 1,601 1,680 1,760 1,839 1,919 1,998 3.50 1,499 1,579 1,658 1,738 1,817 1,897 1,976 2,056 2,135 Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com 22

Varshan Gokool

President & CEO

vgokool@euromaxresources.co.uk

Nikola Gulev

Chief Financial Officer

ngulev@euromaxresources.mk

Patrick Forward

Chief Operating Officer

pforward@euromaxresources.co.uk

Euromax Resources Ltd. | TSX: EOX | ww.euromaxresources.com

www.euromaxresources.com

Sensitivities

Sensitivities

Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com NPV Sensitivity US$ M Gold Price (US$/Oz), Cu 2.90/lb 1,020 1,120 1,220 1,320 1,420 Discount rate (%) 11.0% 96 159 222 286 349 10.0% 124 192 260 328 396 9.0% 156 228 301 374 447 8.0% 190 268 347 425 504 7.0% 227 312 397 481 566 6.0% 268 360 452 543 635 5.0% 313 413 513 612 712 4.0% 363 472 580 689 797 3.0% 418 537 656 774 893 NPV Sensitivity US$ M Copper price (US$/lb), Au 1,220/oz Discount rate (%) 2.30 2.50 2.70 2.90 3.10 3.30 3.50 11.0% 57 112 167 223 278 333 388 10.0% 84 142 201 260 319 378 437 9.0% 112 175 238 301 365 428 491 8.0% 143 211 279 347 415 482 550 7.0% 177 250 323 397 470 543 616 6.0% 214 293 372 452 531 610 689 5.0% 255 341 427 513 599 685 771 4.0% 299 393 487 580 674 768 862 3.0% 348 451 553 656 758 861 963 28

Sensitivities

IRR (%) – Pre Tax Gold price (US$/Oz) Copper price (US$/lb) 1,020 1,070 1,120 1,170 1,220 1,270 1,320 1,370 1,420 2.30 7.3% 9.1% 10.7% 12.2% 13.5% 14.8% 16.1% 17.2% 18.4% 2.50 10.3% 11.8% 13.2% 14.5% 15.8% 17.0% 18.1% 19.2% 20.3% 2.70 12.8% 14.2% 15.4% 16.7% 17.8% 18.9% 20.0% 21.1% 22.1% 2.90 15.1% 16.4% 17.5% 18.7% 19.8% 20.8% 21.9% 22.9% 23.9% 3.10 17.2% 18.4% 19.5% 20.6% 21.6% 22.7% 23.7% 24.7% 25.6% 3.30 19.2% 20.3% 21.4% 22.4% 23.4% 24.4% 25.4% 26.4% 27.3% 3.50 21.1% 22.2% 23.2% 24.2% 25.2% 26.1% 27.1% 28.0% 28.9% OPEX +/-% (LOM) US$/t Change IRR 8.6

• 15%

23.2% 9.1

• 10%

22.1% 9.6

• 5%

21.0% 10.1 0% 19.8% 10.6 5% 18.5% 11.1 10% 17.2% 11.6 15% 15.9% 29 Euromax Resources Ltd. | TSX: EOX | www.euromaxresources.com