Company Presentation February 2020 Building a Nordic Base Metal - - PowerPoint PPT Presentation

Company Presentation

February 2020

Building a Nordic Base Metal Group

STRICTLY PRIVATE AND CONFIDENTIAL

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Important information

Acceptance of limitations: The information in this presentation (the “Material”) is furnished by Vilhelmina Mineral AB, reg. no 556832-3876 (the “Company” or “Vilhelmina Mineral”) solely for the recipient’s information. By attending a meeting where the Material is presented, or by reading the Material, you agree to be bound by the limitations and notifications described below. The Material is confidential and may not be disclosed or distributed to any other person unless expressly agreed by the Company. Use of the Material: This Material does neither constitute an offer to sell nor a solicitation of an offer to buy any securities, and it does not constitute any form of commitment or recommendation in relation thereto. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information in the Material. No financial advice: The Company is not giving and is not intending to give financial advice to any potential investor, and this Material shall not be deemed to be financial advice from the Company to any potential investor. Investors should not subscribe for or purchase any financial instruments or securities only on the basis of the information provided herein. Investors are encouraged to request from the Company and other sources such additional information as they require to enable them to make informed investment decisions, to seek advice from their own legal, tax and financial advisors and to exercise an independent analysis and judgment of the merits of the Company. No liability: Although the Company has endeavored to give a correct and complete picture of the Company, the Company can not be held liable for any loss or damage of any kind arising from the use of the Material. Information sources: The information in this Material is presented by the Company and has been produced by the Company exclusively for information purposes. This Material may contain forward-looking statements that reflect the Company’s current views with respect to certain future events and potential financial performance. Such statements are only forecasts and no guarantee can be given that such expectations are correct. The information relating to the Company does not constitute a complete overview of the Company and must be supplemented by the reader wishing such completeness. Actuality: The Material is dated April 2019. The Company can not guarantee that there has been no change in the affairs of the Company since such date, nor do they intend to, and assume no

• bligation to, update or correct any information included in the Material. The Material may however be changed, supplemented or corrected without notification.

Conflicts of interest: The Company’s management and/or board of directors may hold shares, options or other securities of any issuer referred to in this report and may buy or sell such securities. Prospectus: The Material does not constitute a prospectus for purposes of the Prospectus Directive (Directive 2003/71/EC). Accordingly, the Material has not been approved by any supervisory authority. Distribution: The information in this Material is not for release, publication or distribution, directly or indirectly, in or into the United States or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures. No securities referred to in this Material have been or will be registered by the Company under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any state of the United States. This Material may not be distributed into or in the United States or to any “US person” other than as permitted under applicable securities laws. Applicable law: The Material is subject to Swedish law, and any dispute arising in respect of the Material is subject to the exclusive jurisdiction of Swedishh courts (with District court of Stockholm as court of first instance).

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Agenda

I. Investment highlights and overview II. Market overview III. Project portfolio

• IV. Organization

V. Project economics

• VI. Appendix

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Building a Nordic base metal group

Current mineral resources of 15 million tons

Resources

4

Site overview

Norway Sweden Finland

Site mt Cu% Zn% Stekenjokk / Levi 7.4 1.17 3.01 Ankarvattnet 0.8 0.45 5.48 Jormlien 0.6 0.4 4.75 Joma 5.7 1.55 0.82 Gjersvik 0.9 1.51 1.22 Total 15.4 1.3 2.3

Source: (a): IGE, 2007 (b): SGU 1964 (c): Boliden 1981 (d): Dr. Gee, 2011 (e): Outokumpu 1977 mt: Million tons

(a) (c) (d) (b) (e)

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1912 The resources were discovered in 1910 and sold to Grong Gruber in 1912 1913-1914 Exploration activities in the area ended when WW1 broke out 1972-1998 Reopened in 1972 and produced about 11.5 million tones of ore until 1998, with an average grade of 1.49% copper and 1.45% zinc. The mine was shut down in 1998 due to due low commodity prices 2017 Exploitation concession (“utvinningsrett”) obtained for Joma 2018 During the spring of 2018 a drilling program of 2,465 meters was carried out in the Joma field to verify the remaining resources and investigate possible mineralization's near the old mine 1918 The resources were discovered by Sveriges Geologiska Undersökning (SGU) 1976-1988 Producing period under Boliden’s ownership: 7.1 million tones were produced with 1.5% copper and 3.0% zinc. The mine was shut down in 1988 due to low commodity prices 2011 Vilhelmina Mineral acquired the project from the Swedish company IGE Nordic AB (current Nickel Mountain Resources AB) 2012 Stekenjokk has since 2012 been classified as nationally interesting mining deposits by the Swedish government 2017-2018 Vilhemina submitted the supplemented concession application in 2017 to the Government and the responsible authority, the Mining Inspectorate.

History of Stekenjokk and Joma

5

• Long history for mining in the region stemming back to the start of the

20th century

• Historical productions stop has mainly been driven by low commodity

prices

• Increased demand and higher prices give mining in the region a

second chance

• Wide support for mining projects in the community

Tradition provides wide support for the mining industry

Mining in the region Site pictures History of Stekenjokk History of Joma

Stekenjokk 1976-1988 Joma 1972 -1998

Source: Vilhelmina Mineral

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Key investment highlights

• Multi-national management team with long industry experience
• Strategic investment from Forbes & Manhattan – leading Canadian mineral resource investor

Solid experience of management and board

• Copper and zinc will be scarce resources
• Solid grades and tonnage
• Exploration upside

Attractive resource

• Brownfield – historic data, mineral resources and infrastructure in place, world leading low capital

intensity factor

• Nordic region - long history for mining in the region stemming back to the start of the 20th century

Strategically located with development infrastructure

• Demand for copper driven by Chinese power and infrastructure sector, global power sector and EV
• EV uses 2-4 x times more copper than a traditional vehicles
• Very tight supply / demand balance in the copper market with a structural deficit most likely from 2020

Strong market fundamentals

• NPV for base case of USDm 201 and competitive cash operating cost of USD 1.56 lb
• IRR of 54% and solid cash flow generation from year 1 with payback period of ~1.8 years
• Very low capital intensity

Strong project economics

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Area Item 2019 2020 2021 2022 2023 Mining Studies

Mineral resource update Preliminary Economic Assessment Pre-Feasibility Study Bankable Feasibility Study

Permitting

Exploitation Concession Environmental Permit Designated Land Construction Permit

FID

Final Investment Decision

Project development Norway (Joma– Zinc & Copper) Project development Sweden (Stekenjokk – Zinc & Copper)

Area Item 2019 2020 2021 2022 2023 Mining Studies

Mineral resource update Preliminary Economic Assessment Pre-Feasibility Study Bankable Feasibility Study

Permitting

Exploitation Concession Zoning Plan Environmental Permit Mining License

FID

Final investment decision

Long-term development plan 2019 - 2023

Source: Vilhelmina Mineral

STRICTLY PRIVATE AND CONFIDENTIAL 8

Agenda

I. Investment highlights and overview II. Market overview III. Project portfolio

• IV. Organization

V. Project economics

• VI. Appendix

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Market outlook copper

• Global growth in copper demand outpace supply growth
• Demand from China’s power and infrastructure sectors
• Demand from global power sector
• Increased production EV (“Electrical Vehicles”)

Driving forces

9

Market outlook prices (LME 3-months price USD/t)

Source: (a): Million metric tons, statista.com, (b): Wood Mackenzie, (c): Macrobond, median value from 24 major banks forecast in Q1 2019 –see appendix

World’s third most consumed metal Supply and demand – expected gap

20 40 60 80 100 120 140 2007 2012 2017 Nickel Lead Zink Copper Primary aluminum Smelter grade alumina

(a) (b) (c)

4 8 12 16 20 24 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Expected supply Expected demand for mine production capability (refined metal)

• 2 000

4 000 6 000 8 000 10 000 12 000 2017 2018 2019 2020 2021 2022 Analyst curve LME 3 months Mmt Mt Cu USD/t

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Market outlook zinc

• 50-60% of world consumption used for galvanizing steel
• Demand largely driven by infrastructure sector in China

and globally

• New demand coming from batteries used in EV
• An end to US-China trade war could drive increased prices

Driving forces

10

Market outlook prices World’s fourth most consumed metal Supply and demand – expected gap

(a)

Mmt 3 6 9 12 15 18 Zink mine production capacity Demand 1 000 2 000 3 000 4 000 5 000 6 000 2017 2018 2019 2020 2021 2022 Zinc historical prices Analyst curve USD/t

Source: (a): Million metric tons, statista.com, (b): Wood Mackenzie, (c): Macrobond, median value from 24 major banks forecast in Q1 2019 –see appendix

Mt Zn 20 40 60 80 100 120 140 2007 2012 2017 Nickel Lead Zink Copper Primary aluminum Smelter grade alumina

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Copper demand outlook (1/2)

• The IEA (International Energy Agency) stated

in its 2017 Renewables Report that between 2017 and 2022, renewable electricity capacity is set to grow by 920 GW, an increase of 43%

• Copper demand from the electricity generation

sector is expected to change considerably over the coming decade

• The utility-scale PV market is expected to

require 13.5mt copper within 2040

• Renewable Energy is 4-12x more copper-

intensive than non-renewable

Renewable energy is a strong driver for copper demand

Comments

11

Yearly copper demand from renewable energy (mt)

Source: Bloomberg

2 4 6 8 10 12 14 16 18 20 22 24 26 Onshore wind Offshore wind Utility-scale PV Small-scale PV

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Copper demand outlook (2/2)

The Electric Vehicle (EV) Market and Copper demand

Comments EV uses more copper than traditional vehicles (kg)

12

Projected copper demand from the EV market (mt)

• The EV stock was c.3m in 2017, an increase of 57% from

the previous year, by 2030 is the EV stock expected to reach between 130-230m depending on political support

• EV’s forecasters such as OPEC, BP and BNEF expects an

EV’s market share of the total passenger car fleet to range between 15-35% in 2040, compared to c.0.2% in 2017 – This is expected to raise copper demand in EVs from 0.14t in 2017 to 2.7mt in 2027

1 2 3 4 5 6

Source: Bloomberg, Global EV Outlook 2018

Policy and regulation Customer demand Fuel economy and emissions targets Driving range Financial incentives Cost premium City access restrictions Charging infrastructure 23 40 60 83 89 Traditional internal combustion engine (ICE) Hybrid electric vehicle (HEV) Plug-in hybrid electric vehicle (PHEV) Battery electric vehicle (BEV) Hybrid electric bus (Ebus HEV)

Key drivers for the EV buildout

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Agenda

I. Investment highlights and overview II. Market overview III. Project portfolio

I. Stekenjokk II. Joma III. Development plan

IV. Organization

V. Project economics

• VI. Appendix

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Re-start of Stekenjokk copper and zinc mine

• Production 1976 – 1988 (Boliden)
• 7.2 million tons mined
• Grades 1% Cu and 3% Zn
• 7.4 Mt indicated + 2.7 Mt inferred
• 100,000m core drilling + 3 km ramp / tunnel
• Road, electricity, water, tailing ponds
• Little / no effects on animals and vegetation
• Jobs opportunities
• New investments infrastructure constructions
• Short term objective: exploitation concession
• Long term objective: re-start mine

Historic data, mineral resources and infrastructure available

Project highlights Project location

14 Source: Vilhelmina Mineral

STRICTLY PRIVATE AND CONFIDENTIAL 15 Source: SGU and IGE

Mineralization in Stekenjokk

Two ore bodies at 500 meters depth

Levi Stekenjokk

Drill hole collars

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• 2 000

4 000 6 000 8 000 10 000 12 000 14 000 1955 1958 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006

Co-existence mining and reindeer herding

• Historic evidence
• Mining and reindeer herding could co-exist
• Number of reindeers actually increased during mining
• No negative long term impact

Co-existence arguments for

16

Previous mining period 1976-1988

Soruce: (a): Agneta Bäckman, data for empty years are not available

Number of reindeers

(a)

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Development of new permitting strategy

Founded

2010

Mining Inspectorate rejects concession conflict reindeer herding Stekenjokk and Levi acquired Application for Exploitation Concession National interest for minerals obtained

• New partners
• Joma acquired
• Revised application
• New round

2011 2011 2012 2013 2014

Appeal Swedish Government

2017 2019

• Stekenjokk and Levi stand alone
• Co-exist with reindeer herding
• Joma new hub
• Stekenjokk and Levi satellite
• Seasonal mining
• Adaptation reindeer herding

New strategy for permitting

Source: Vilhelmina Mineral

STRICTLY PRIVATE AND CONFIDENTIAL

Adaption to reindeer herding via seasonal mining in winter

• Year round mining of 700 kt
• Operations

‒ Underground mining ‒ Processing ‒ Tailings dam

• Surface impact industrial site approx. 130 ha

Minimum surface impact

New application exploitation concession

18

Previous application exploitation concession

• Minimum surface impact
• Seasonal mining during winter 300 kt
• Operations

‒ Underground mining ‒ Transportation or ore to Norway

• Surface impact industrial site approx. 4 ha

Ramp, Levi Ramp, Stekenjokk

STRICTLY PRIVATE AND CONFIDENTIAL Source: Vilhelmina Mineral

STRICTLY PRIVATE AND CONFIDENTIAL Source: Golder Associates

Mining in winter and ore transportation to Joma

19

60 km transportation to processing plant

• Ore transportation from Stekenjokk to Joma in

Norway

• Distance to Joma approx. 60 km
• Västerbotten – Jämtland – Tröndelag
• 60 ton trucks
• 25-30 trucks one way per 24 hours
• 6 months operation (winter time)
• No negative impact on wildlife expected

New application exploitation concession

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Agenda

I. Investment highlights and overview II. Market overview III. Project portfolio

I. Stekenjokk II. Joma III. Development plan

IV. Organization

V. Project economics

• VI. Appendix

20

STRICTLY PRIVATE AND CONFIDENTIAL

Re-start of Joma copper and zinc mine

• Production 1972 – 1998 (Grong Gruver AS)
• 11.5 million tons mined
• Grades 1.5 % Cu and 1.5 % Zn
• 5.7 Mt indicated
• Buildings, roads, electricity, water, tailing ponds
• Jobs opportunities
• New investments infrastructure constructions
• 2017: ”utvinningsrett”
• 2018-2020: ”reguleringsplan”
• 2020-2022: environ. permit & mining concession
• 2023: Final investment decision

Historic data, mineral resources and infrastructure available

Project highlights Project location

21 STRICTLY PRIVATE AND CONFIDENTIAL Source: Vilhelmina Mineral

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Drill results 2018 indicates zinc rich near surface mineralization

DH ID From (m) To (m) Length (m) Estimated True Width (m) Zn% Cu% Ag g/t Mine 15 NSA Mine 16 116.23 117.53 1.70 1.70 0.77 3.2 11 Mine 19 36.00 60.00 24.00 20.60 2.06 0.58 27 Includes 39.00 44.00 5.00 4.30 0.66 1.25 35 Also 55.00 58.00 3.00 2.60 6.22 0.21 26 Mine 20 30.00 54.00 24.00 23.00 3.23 0.22 27 Includes 31.00 43.00 12.00 11.50 4.17 0.15 29 Mine 21 27.00 61.00 34.00 32.00 1.74 0.37 28 Includes 40.00 47.00 7.00 6.60 3.20 0.18 21

• Joma Ore deposit shape:

‒ Extends to surface, in fold hinge zone 20-35 meters thick, with gentle dip ‒ May be partly amenable to open pit mining

Source: Vilhelmina Mineral and ALS Laboratories in Piteå, Sweden Mineral

STRICTLY PRIVATE AND CONFIDENTIAL Source: Dr. Gee and Vilhelmina Mineral

Project development case 1: Joma underground only

• Location: Joma
• Tonnage: 700 kt
• Head grades (10% dilution):

‒ Cu: 1,38% ‒ Zn: 0,90% ‒ Ag: 24,3 g/t

• Recovery

‒ Cu: 88% ‒ Zn: 85% ‒ Ag: 35%

• Opex: 1.97 USD/lbs
• Capex: USDm 51 (SEKm 462)

Based on block model using cut-off grade 1% Cu-equivalent

Key assumptions

23

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Project development case 2: Joma small OP and UG

• Location: Joma
• Tonnage: 700 kt
• Head grades open pit (5% dilution):

‒ Cu: 0,80% ‒ Zn: 2,00% ‒ Ag: 26,6 g/t

• Head grades underground (10%

dilution):

‒ Cu: 1,38% ‒ Zn: 0,90% ‒ Ag: 24,3 g/t

• Recovery

‒ Cu: 88% ‒ Zn: 85% ‒ Ag: 35%

• Opex: 1.78 USD/lbs
• Capex: USDm 50 (SEKm 448)

Based on block model using cut-off grade 1% Cu-equivalent

Key assumptions

24 Source: Dr. Gee and Vilhelmina Mineral

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Project development case 3: Joma small OP and UG + Stekenjokk

• Location: Joma year around

Stekenjokk seasonal mining in winter

• Transportation ore from Stekenjokk to

Joma

• Tonnage (Joma / Stekenjokk):

‒ 700 kt / 300 kt

• Grades (Joma UG + OP + Stekenjokk):

‒ Cu: 0,80% / 1,38% / 1% ‒ Zn: 2,00% / 0,90% / 2-4% ‒ Ag: 26,6 g/t / 24,3 g/t / 23,4 g/t

• Recovery (Joma / Stekenjokk):

‒ Cu: 88% ‒ Zn: 85% ‒ Ag: 35%

• Opex: 1.56 USD/lbs
• Capex: USDm 70 (SEKm 635)

Based on block model using cut-off grade 1% Cu-equivalent

Key assumptions

25 Source: Dr. Gee and Vilhelmina Mineral

STRICTLY PRIVATE AND CONFIDENTIAL 26

Existing infrastructure in Joma – used until 1998

Joma process plant building Joma office buildings Storage buildings and silos Gjersvik mine entrance Joma mine entrance Joma office and process plant

STRICTLY PRIVATE AND CONFIDENTIAL Source: Vilhelmina Mineral

STRICTLY PRIVATE AND CONFIDENTIAL 27

Agenda

I. Investment highlights and overview II. Market overview III. Project portfolio

I. Stekenjokk II. Joma III. Development plan

IV. Organization

V. Project economics

• VI. Appendix

STRICTLY PRIVATE AND CONFIDENTIAL

STRICTLY PRIVATE AND CONFIDENTIAL 28

Area Item 2019 2020 2021 2022 2023 Mining Studies

Mineral resource update Preliminary Economic Assessment Pre-Feasibility Study Bankable Feasibility Study

Permitting

Exploitation Concession Environmental Permit Designated Land Construction Permit

FID

Final Investment Decision

Project development Norway (Joma– Zinc & Copper) Project development Sweden (Stekenjokk – Zinc & Copper)

Area Item 2019 2020 2021 2022 2023 Mining Studies

Mineral resource update Preliminary Economic Assessment Pre-Feasibility Study Bankable Feasibility Study

Permitting

Exploitation Concession Zoning Plan Environmental Permit Mining License

FID

Final investment decision

Long-term development plan 2019 - 2023

Source: Vilhelmina Mineral

STRICTLY PRIVATE AND CONFIDENTIAL 29 Location Long term budget (USD) 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Total Norway Resource update 312,208 1,043,040

• 1,355,248

Reconnaissance exploration 12,880 16,240 30,720 38,720 38,720 137,280 Mining studies 84,000 572,000 800,000 2,700,000

• 4,156,000

ESIA + permitting 150,000 150,000 150,000 150,000 150,000 750,000 Opex 86,667 86,667 86,667 86,667 86,667 433,333 Capex (700 kt Joma)

• 50,555,556

50,555,556 Total Norway 645,755 1,867,947 1,067,387 2,975,387 50,830,942 57,387,417 Sweden Resource update 115,600 590,660

• 705,600

Mining studies 66,000 60,000 700,000 1,000,000

• 1,826,000

ESIA + permitting 150,000 150,000 150,000 150,000 150,000 750,000 Opex 638,444 638,444 638,444 638,444 638,444 3,192,222 Capex

• 4,444,444

4,444,444 Total Sweden 970,044 1,438,444 1,488,444 1,788,444 5,232,889 10,918,267 Total 1,615,799 3,306,391 2,555,831 4,763,831 56,063,831 68,305,684

Long-term budget 2019 - 2023

Source: Vilhelmina Mineral

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Exploration and expansion opportunities

Project name Country Status MTO N Cu% Zn% Distance from Joma (km)

• wner

Joma Norway Exploitation concession 5.7 1.55 0.82

• VM

Orklumpen Norway Exploration permit

• 3

VM Borvasselv Norway Exploration permit

• 3

VM Gjersvik Norway Exploration permit 0.5 1.51 1.22 22 VM Jormlien Sweden Exploration permit 0.6 0.40 4.75 15 VM Ankarvattnet Sweden Exploration permit 0.8 0.45 5.48 15 VM Stekenjokk & Levi Sweden Exploitation concession application 7.4 1.17 3.01 58 VM Vilhelmina deposits 14.9 1.26 2.32 Skorovas Norway Exploration permit 1.3 1.20 1.80 43 Private Skiftesmyr Norway Exploitation concession 2.8 1.23 1.86 Na Private Godejord Norway Exploitation concession 0.3 0.57 4.22 116 Private External Deposits 4.4 1.18 2.00 Total deposits 19.3 1.24 2.25

Possible leverage on existing projects add on acquisitions

Existing projects and tentative acquisitions Development potential

30 Source: Vilhelmina Mineral

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Two Norwegian projects have recently received concession

Norway has demonstrated political willingness to support mining projects

31

• Sydvaranger received operating

license by the Norwegian Ministry

• f Trade, Industry and Fisheries in

March 2019 – The project now has all permits in place

• Sydvaranger will ramp up the
• rganisation and aim to reach COD

within spring 2020 – The projects is expected to employ over 400 persons

• The mine has been closed since

Sydvaranger Gruve faced bankruptcy in November 2015

• Nussir ASA received operating

license by the Norwegian Ministry

• f Trade, Industry and Fisheries in

February 2019 – The project now has all permits in place – Nussir will hold NOKm 15 in guarantees held for reclamation

• The project is expected to employ
• ver 150 persons
• The final license has been disputed

in the media due to the possible impact on reindeer herding in the area

STRICTLY PRIVATE AND CONFIDENTIAL 32

Agenda

I. Investment highlights and overview II. Market overview III. Project portfolio

• IV. Organization

V. Project economics

• VI. Appendix

STRICTLY PRIVATE AND CONFIDENTIAL 33

Management and board of directors

Extensive operational experience and multinational team

Management team

Jonas Dahllöf COO Peter Hjorth CEO Randy Ruff VP Exploration Peter Åkerström CFO

Extensive operational experience from the mining industry – CEO and mining professionals have previously worked for companies such as Botnia Exploration, Boliden, Anglo American, Cobalt Power Group, QMX Gold and Euro Sun Mining Broad mix of skills, knowledge and experience – board members have background from various fields such as finance, energy and mining exploration. Board is incentivised through stocks and options Board of Directors & Management Norway

Barbara Stefanini, Resource Geologist Andreas Rompel Technical Director Scott Moore Chairman Les Kwasik Director Neil Said Director Jan Olav Smalås CEO Joma Næringspark Arve Haugen Director Joma Gruver Odd Mikkelsen Director Joma Gruver

Supporting consultants and business partners

Source: Vilhelmina Mineral

STRICTLY PRIVATE AND CONFIDENTIAL

Overview of planned organisation during production

34 Source: Vilhelmina Mineral Note (a): Seasonal workers 6 months winter time

Joma Stekenjokk Management Mining Processing Logistics 75 35 35

• 15

115 50 165 staff

(a)

5

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Description of Forbes & Manhattan (“F&M”)

Hands on and operationally skilled owner

Key deals Relative performance (2005 – 2017 YTD)

35

• F&M is a leading private merchant bank with a global

focus on the resource-based sectors.

‒ F&M is headquartered in Toronto, Ontario, Canada with

• ffices, operations and assets across the globe
• F&M uses its industry proven technical and financial

team, along with its capital, to incubate, finance and manage public and private companies in the junior resource sectors

‒ Shareholder value is created by uniting a successful combination of assets, financial backing, technical strength and marketing support throughout the entire corporate lifecycle

• F&M has a successful track record of identifying high

quality assets and advancing them from discovery through to production

‒ Has invested SEKm 17.6 in Vilhelmina Mineral between 2017-2019

Source: Forbes & Manhattan

Sold: USD 750m 2006 Sold: USD 4,900m 2011 Sold: USD 400m 2012 Sold: USD 400m 2014 Mkt Cap – USD 114m Mkt Cap – USD 43m Mkt Cap – USD 42m Mkt Cap – USD 12m

STRICTLY PRIVATE AND CONFIDENTIAL

Ownerships structure and funding strategy

• Up until now, USDm 3.2 has been raised from investors
• The development cost of both projects will be financed with

new capital

Strong backing from Management/BoD and major shareholders

Largest shareholders as of April 2019 Funding need (USDm)

36

Funding overview

Name Shares Ownership Vilhelmina Minerals Inc. 7 766 086 46,86 % Lovisagruvan AB 1 400 000 8,45 % Dahllöf, Jonas 1 250 000 7,54 % Upscale Aktiebolag 1 122 964 6,78 % Lovisagruvan Utveckling AB 597 222 3,60 % Hjorth, Peter 550 000 3,32 % Gradisca Invest AB 564 756 3,41 % Övriga 3 321 888 20,04 % Total 16 572 916 100,00 %

0,7 0,2 0,8 1,5 2011 Equity Issue 2013 Equity Issue 2017 Equity Issue 2018 Equity Issue 2019-2023 Total development cost 2023 Total Capex

55.0 13.0 Source: Vilhelmina Mineral

STRICTLY PRIVATE AND CONFIDENTIAL 37

Agenda

I. Investment highlights and overview II. Market overview III. Project portfolio

• IV. Organization

V. Project economics

• VI. Appendix

STRICTLY PRIVATE AND CONFIDENTIAL 38

All project development cases have strong financials

• NPV (8%):

USDm 98 (SEKm 886)

• IRR:

41%

• Pay back:

2.5

• Cash cost:

1.97 USD/lb

• Capex (initial):

USDm 51 (SEKm 462)

Case 1: Joma UG

• NPV (8%):

USDm 120 (SEKm 1,078)

• IRR:

59%

• Pay back:

1.4

• Cash cost:

1.78 USD/lbs

• Capex (initial):

USDm 50 (SEKm 448)

Case 2: Joma Small OP & UG

• NPV (8%):

USDm 201 (SEKm 1,806)

• IRR:

54%

• Pay back:

1.8

• Cash cost:

1.56 USD/lbs

• Capex (initial):

USDm 70 (SEKm 635)

Case 3 (Base Case): Joma Small OP & UG Stekenjokk UG

STRICTLY PRIVATE AND CONFIDENTIAL

• 635

421 280 267 376 298 365 365 365 365 365 356 298

• 700
• 500
• 300
• 100

100 300 500 700 YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 YEAR 12 Sustaining CAPEX, U/G Mine development, Mine dewatering-rehabilitation (Stekken), Closure and Reclamation Initial Capex Total Operating Cost Net Smelter Return Net Pre-Tax Cashflow

Overview of cash flow – Joma and Stekenjokk combined

Solid cash flow generation from year 1 with payback period of ~1.8 years

Cash Flow Overview SEKm

39 Source: Vilhelmina Mineral, Financial Model

STRICTLY PRIVATE AND CONFIDENTIAL

Cash cost curve analysis

Competitive cash cost

Project cash cost vs industry

40

USD/lb

Source: Vilhelmina Mineral, Financial Model, Bloomberg

Average: 1.41 Brownfield Greenfield 1,56 0,00 0,50 1,00 1,50 2,00 2,50 3,00 Lumwana West Lubambe Buenavista SXEW III Buenavista Concentrator Expansion Oyu Tolgoi Expansion Cerro Verde Expansion Encuentro Oxides Mina Ministro Hales Tschudi Quellaveco Toromocho Expansion Rio Tinto El Pilar Antucoya Jabal Sayid Vilhelmina Mineral Salobo II Tia Maria Chañaral Bay (Copper Bay) Ajax Pedra Branca Stage 2 Los Calatos BKM Deposit Constancia Mount Milligan Sentinel Red Chris Aktogay Antas Stage I Cobre Panama Sierra Gorda (Phase I & II) Escondida Organic Growth Project 1 Zafranal Kipoi Copper Flat Bozshakol Toquepala Expansion Las Bambas Casino Carrapateena

STRICTLY PRIVATE AND CONFIDENTIAL

Capital intensity curve analysis

Very low capital intensity

Project capital intensity vs industry

41

2 128

• 5 000

10 000 15 000 20 000 25 000 30 000 35 000 Rio Tinto Escondida Organic Growth Project 1 Caserones Mirador Antucoya Constancia Los Calatos Pulang Centinela Second Concentrator Aktogay Zafranal Quellaveco Toromocho Expansion Çopler Sulfide Expansion Skouries Ajax Los Pelambres Expansion Cobre Panama Bozshakol Cerro Verde Expansion Las Bambas Quebrada Blanca Phase II Oyu Tolgoi Expansion El Arco Nueva Union (Previously "Corridor"… El Espino Radomiro Tomic Sulphides Phase II Buenavista Concentrator Expansion Encuentro Oxides Bystrinsky (Chita Copper Project) Ilovica-Shtuka Project Sierra Gorda (Phase I & II) Diego de Almagro Red Chris Udokan Tovaku Mina Justa Salobo II Mina Ministro Hales Tia Maria Spence Growth Operation Platreef Project (Contains Flatreef… Toquepala Expansion Yandera Project Los Chancas El Teniente New Mine Level Casino Lomas Bayas Phase III Carrapateena Pumpkin Hollow Lubambe Wafi Golpu Chañaral Bay (Copper Bay) Chuquicamata Underground El Pilar Jabal Sayid Sentinel BKM Deposit Copper Flat Northmet Puquios Florence Kipoi Khnaiguiyah Antas Stage I Silangan Tsagaan Suvarga Olympic Dam Expansion Woodlawn Buenavista SXEW III Cauquenes Expansion (Phase II) Kounrad Vilhemina Mineral Mount Milligan USD/000’s lb

Source: Vilhelmina Mineral, Financial Model, Bloomberg

Average: 12,975 Brownfield mine copper equiv. capex intensity Greenfield mine copper equiv. capex intensity

61.1

Initial capex (USDm)

2,128

Capex intensity (USD/000’s lb)

28,860

Average Total Cu Eq payable (lbs)

STRICTLY PRIVATE AND CONFIDENTIAL

1 191 1 345 1 498 1 652 1 806 1 960 2 113 2 267 2 421 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 USD/SEK

Sensitivity analysis

Project NPV at 8% required rate of return

Project NPV sensitivity, Cu price (SEKm) Project NPV sensitivity, USD/SEK (SEKm) Project NPV sensitivity, Opex (SEKm) Project NPV sensitivity, Capex (SEKm)

42

Base case

Source: Vilhelmina Mineral, Financial Model

1 229 1 373 1 517 1 662 1 806 1 950 2 094 2 238 2 383 5,600 5,900 6,200 6,500 6,800 7,100 7,400 7,700 8,000 Cu price (USD/ton) Base case 1 995 1 948 1 900 1 853 1 806 1 759 1 711 1 664 1 617

• 20%
• 15%
• 10%
• 5%

0% 5% 10% 15% 20% Capex 2 363 2 224 2 084 1 945 1 806 1 667 1 527 1 388 1 249

• 20%
• 15%
• 10%
• 5%

0% 5% 10% 15% 20% Opex Base case Base case

STRICTLY PRIVATE AND CONFIDENTIAL 43

Agenda

I. Investment highlights and overview II. Market overview III. Project portfolio

• IV. Organization

V. Project economics

• VI. Appendix

STRICTLY PRIVATE AND CONFIDENTIAL

Mineralization in Stekenjokk south

44

Mineralization accessible via existing tunnel

3D view of mineralized body Stekenjokk South Surface View

Indicated mineral resource Inferred mineral resource

Stekenjokk Drill hole collars Levi

Source: SGU, IGE and Vilhelmina Mineral

STRICTLY PRIVATE AND CONFIDENTIAL

Mineralization in Levi

45

Southern part of Levi measured resource

3D view mineralized body Levi Surface View

Indicated mineral resource Inferred mineral resource Measured mineral resource

Stekenjokk Drill hole collars Levi

Source: SGU, IGE and Vilhelmina Mineral

STRICTLY PRIVATE AND CONFIDENTIAL

Project economics – base case

Joma small open pit and underground, plus Stekenjokk underground

Key assumptions and financial forecasts

46

Year in operation Unit 1 2 3 4 5 6 7 8 9 10 11 12 Total Exchange rate USD/SEK 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 Ore Production - Open pit Joma 000' tonnes 730 209 939 Ore Production - U/G Joma 000' tonnes 521 700 700 700 700 700 700 700 700 700 500 7,321 Ore Production - U/G Stekenjokk 000' tonnes 270 270 300 300 300 300 300 300 300 300 300 300 3,540 Total Ore Milled 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 800 11,800 Copper price USD/ton 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 81,600 Zinc price USD/ton 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800 Silver price USD/oz 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 210.0 Copper – recovered 000' tonnes 7.4 8.0 8.1 9.9 7.7 8.1 8.1 8.1 8.1 8.1 8.1 6.5 96.2 Zinc – recovered 000' tonnes 17.0 14.1 13.5 13.0 15.8 18.5 18.5 18.5 18.5 18.5 18.5 16.2 200.7 Silver – recovered kg 9,008 8,588 8,411 8,411 8,411 8,411 8,411 8,411 8,411 8,411 8,411 6,710 100,000 Copper – revenue share NSR % 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% Zinc – revenue share NSR % 95% 95% 95% 95% 95% 95% 95% 95% 95% 95% 95% 95% 95% Silver – revenue share NSR % 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% Financial forecasts Copper - Net revenue SEKm 430 464 473 575 449 470 470 470 470 470 470 378 5,591 Zinc – Net revenue SEKm 293 244 233 225 273 320 320 320 320 320 320 280 3,468 Silver – Net revenue SEKm 45 42 42 42 42 42 42 42 42 42 42 33 495 Pb Concentrate SEKm Net Smelter Return SEKm 768 751 747 842 764 832 832 832 832 832 832 691 9,554

• Total Operating Costs

SEKm (278) (398) (424) (424) (424) (425) (425) (425) (425) (425) (425) (339) (4,836) Total Operating Cash Flow SEKm 490 353 323 417 340 407 407 407 407 407 407 352 4,718

• Total Capex2)

SEKm (635) (69) (73) (57) (42) (42) (42) (42) (42) (42) (42) (51) (54) (1,229) Net Pre-Tax Cash Flow SEKm (635) 421 280 267 376 298 365 365 365 365 365 356 298 3,489

Source: Vilhelmina Mineral, Financial Model

STRICTLY PRIVATE AND CONFIDENTIAL

Project economics – overview of base case

NPV of SEKm 1,806 and competitive cash operating cost of USD 1.56/lb

Key economics Breakeven cost (USD/lb, life of mine)

47

Initial Capex-breakdown (SEKm)

Unit Base case Initial Capex SEKm 549 Years of operation Years 12 Payback period Years 1.8 IRR % 54% NPV @ (8 %) SEKm 1,806

US$/lb, life of mine % Mining 1.12 57% Process ing 0.24 12% G&A 0.10 5% Transport ore 0.07 4% Concentrate freight Zn 0.01 1% Concentrate freight Cu 0.01 1% = Unit cash operating cost 1.56 80% + Total Capex (initial and sustaining) 0.40 20% = Unit cash total cost 1.96 100% Source: Vilhelmina Mineral, Financial Model

279 93 74 54 50 549 100 200 300 400 500 600

Processing planf (1 MTON per year) Contigency Indirect cost Infrastructure Mining (use contractor mining)

STRICTLY PRIVATE AND CONFIDENTIAL

Breakdown of project cash cost

Competitive unit cash operating costs of USD ~1.56/lb

Breakdown of unit cash operating cost* and unit cash total costs (USD/lb)

48 Source: Vilhelmina Mineral, Financial Model, *Aggregated cash cost per item divided by aggregate Cu Equivalent metal production over life of mine based on Cu @ USD 6,800/ton, Zn @ USD 2,400/ton and Ag @ USD17.5/oz 0,01 0,01 0,07 0,10 0,24 1,12 1,56 0,40 1,96 Concentrate freight Cu Concentrate freight Zn Transport ore G&A Processing Mining Cash operating cost Total capex (initial and sustaining) Cash total cost (incl. capex)

STRICTLY PRIVATE AND CONFIDENTIAL

4 000 4 500 5 000 5 500 6 000 6 500 7 000 7 500 jan-16 feb-16 mar-16 apr-16 maj-16 jun-16 jul-16 aug-16 sep-16

• kt-16

nov-16 dec-16 jan-17 feb-17 mar-17 apr-17 maj-17 jun-17 jul-17 aug-17 sep-17

• kt-17

nov-17 dec-17 jan-18 feb-18 mar-18 apr-18 maj-18 jun-18 jul-18 aug-18 sep-18

• kt-18

nov-18 dec-18 jan-19 feb-19

• 2 000
• 1 500
• 1 000
• 500

500 1 000 2013 2014 2015 2016 2017 2018e

Current copper market

LME 3-months price (USD/t) Global copper surplus / deficit (tons)

49

• The Copper price is currently at USD

6,339 USD/t, up c.29% on a three year basis

• The price increase has been driven by

China’s intensified its efforts to support renewable energy and political effort to crack down on pollution – It triggers massive investments in renewable energy – Power accounts for c50% of China’s total use of copper – It also triggers restrictions on metal production, closures of

• utdated capacity, challenging

permitting process and higher costs with higher emission standards for new projects

Comment

Source: Bloomberg, Macrobond (last updated 27.03.2019)

STRICTLY PRIVATE AND CONFIDENTIAL

Mineralization in Stekenjokk and Levi east

50

Long section looking east

Levi Resource Area Stekenjokk Mined Area Stekenjokk South Resource Area S u r f a c e

North South

c a . 9 k m

Inferred mineral resource Indicated mineral resource Measured mineral resource Source: SGU and IGE

STRICTLY PRIVATE AND CONFIDENTIAL 51

Copper (Cu) consensus forecast prices

Source: Vilhelmina Mineral, Financial Model Date Firm 2019 2020 2021 2022 LT 30-Jan-19 CIBC 6,063 6,283 6,945 7,385 7,606 25-Jan-19 Deutsche Bank 6,301 6,001 5,750 6,301 6,799 24-Jan-19 UBS 7,165 7,165 7,275 7,275 6,504 24-Jan-19 Credit Suisse 6,175 5,730 5,730 5,730 6,600 23-Jan-19 RBC 5,798 6,614 7,165 7,716 6,614 23-Jan-19 Haywood 6,614 6,834 6,945 6,945

• 23-Jan-19

Macquarie 6,349 6,504 6,923 7,826 8,466 22-Jan-19 HSBC 6,371 6,724 6,945 7,165 7,165 22-Jan-19 Canaccord 5,975 5,952 5,952 5,952 5,952 22-Jan-19 Jefferies 5,827 5,512 5,701

• 6,614

21-Jan-19 JP Morgan 6,225 5,416 5,362 6,166 7,584 21-Jan-19 Morgan Stanley 6,812 6,526 6,393 6,702 6,834 21-Jan-19 Cormark 6,614 6,614 6,614 6,614 6,614 21-Jan-19 BMO 7,165 7,738 6,900 7,011 7,165 18-Jan-19 TD 6,724 7,165 6,945 7,165 7,496 18-Jan-19 National Bank 6,063 6,063 6,393 6,614 6,834 17-Jan-19 Scotia 6,614 7,055 7,716 8,267 8,267 17-Jan-19 Raymond James 6,482 6,834 7,055

• 6,614

16-Jan-19 GMP Securities 7,165 6,834 6,834 6,834 6,834 15-Jan-19 Eight Capital 7,165 7,496 7,165 7,165 7,165 09-Jan-19 Societe Generale 6,800 7,000 7,500 8,000

• 08-Jan-19

Investec 6,393 6,945 7,937 8,598 6,746 13-Dec-18 Numis 6,614 6,614 6,614 6,614 6,614 11-Dec-18 Barclays 6,261 6,504 7,231 6,834 6,834 Average 6,489 6,588 6,750 7,040 6,996 Median 6,437 6,614 6,934 6,978 6,834

STRICTLY PRIVATE AND CONFIDENTIAL 52

Zinc consensus forecast prices (USD/t)

Source: Vilhelmina Mineral, Financial Model Date Firm 2019 2020 2021 2022 LT 30-Jan-19 CIBC 2,844 2,976 2,866 2,822 2,866 24-Jan-19 UBS 2,701 2,370 2,315 2,403 2,161 24-Jan-19 Credit Suisse 2,400 2,300 2,340 2,360 2,000 23-Jan-19 RBC 2,866 2,866 2,756 2,756 2,205 23-Jan-19 Haywood 2,646 2,535 2,535 2,425

• 22-Jan-19

HSBC 2,756 2,579 2,425 2,293 2,337 22-Jan-19 Macquarie 2,491 2,227 2,116 2,116 2,249 22-Jan-19 Numis 3,197 2,535

• 2,535

21-Jan-19 JP Morgan 2,451 2,100 1,980 2,220 2,550 21-Jan-19 Morgan Stanley 2,513 2,205 2,381 2,513 2,557 21-Jan-19 Barclays 2,646 2,668 2,646 2,646 2,646 21-Jan-19 BMO 2,535 2,381 2,249 2,469 2,535 18-Jan-19 Cormark 2,976 2,535 2,535 2,535 2,535 18-Jan-19 TD 2,623 2,646 2,535 2,425 2,425 18-Jan-19 National Bank 2,535 2,535 2,425 2,425 2,425 17-Jan-19 Scotia 2,646 2,646 2,535 2,425 2,315 17-Jan-19 Raymond James 2,535 2,425 2,425

• 2,315

16-Jan-19 GMP Securities 2,866 2,866 2,866 2,425 2,425 15-Jan-19 Eight Capital 2,646 2,535 2,425 2,315 2,315 08-Jan-19 Investec 2,646 2,800 2,756 2,646 2,271 07-Jan-19 Deutsche Bank 2,500 2,299 2,544 2,535 2,315 07-Jan-19 Canaccord 2,756 2,646 2,646 2,646 2,425 12-Dec-18 Jefferies 2,535 2,116 1,984 1,984 2,116 21-Nov-18 Societe Generale 2,700 2,500 2,400 2,300

• 08-Nov-18

Laurentian 2,646 2,756 2,756

• 2,756

Average 2,666 2,522 2,477 2,440 2,403 Median 2,646 2,535 2,480 2,425 2,425