Corporate Presentation Fall 2018 1 Operating as Liberty Silver - - PowerPoint PPT Presentation

Operating as Liberty Silver Corp.| LSL.C

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Corporate Presentation – Fall 2018

Information set forth in this presentation may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the risks associated with outstanding litigation, if any; risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in gold and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to U.S. Shareholders. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or

• ther circumstances should change. Investors are cautioned against attributing undue certainty to

forward-looking statements.

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Forward Looking Statements

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*SEC Compliant Resource not to be considered NI 43-101 compliant

Re-starting a Significant Past Producer in a Historic Mining Camp

• Fully Permitted: Patented ground and signed EPA Agreement.
• Historic SEC Proven & Probable Reserves and Resources*: 9.1M tons @

5.08% Zn, 2.35% Pb, 1.29 opt Ag.

• Past Producer – Proven Metallurgy: The Bunker Hill Mine produced over

35M tons of ore grading 8.76% lead, 3.67% zinc, and 155 g/t silver. Zinc and lead concentrates are very clean with no deleterious elements.

• Developed: Near term access to +8 years of mineable material at 1,500 tpd.
• High grade zones: > 20% combined Pb/Zn.
• Excellent Infrastructure/Geopolitical Risk: paved road access, low cost

power, water, skilled labour, mining services, Idaho is mining friendly and a “Right to Work” state.

• Exploration Potential: 3,400 DD holes show numerous high grade intercepts

that were never followed up on.

• Experienced Management: operated the nearby Galena Mine.

Capital Structure

CSE symbol BNKR Shares O/S 34.6 million Options 2.9 million Warrants 7.4 million Fully Diluted Shares O/S 44.9 million Cash (as of 03/31/2018) Convertible Debt C$ 2.0 million US$ 2.0 million

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Corporate Overview

42% 23% 35%

Share Ownership

Mgmt/Insiders Institutional Retail

CSE: BNKR share price (1 year) Institutional Shareholders Valuestone Global Resources Fund 1 RBGAM EDE Value Fund

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Project Location

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Patented Claims

• Patented claims comprising 5,773 acres.

• Fully Permitted:

– Virtually all underground mining and mill processing permitted. Air quality permit required for crushing has 180 day lead time. No permit required for dry or paste TSF on private land, whereas a technical review required for public land. – Mine water discharge is fully permitted as per EPA’s operation of water treatment plant which processes Bunker Hill mine effluent. NDPES water permit will be required in 5 years time at which Bunker Hill can lease the plant, purchase it, or build a new one.

• March 2018 EPA Agreement:

– Definitively resolves long standing environmental legacy issues. – Provides environmental indemnity from potential EPA legal actions related to previous environmental contamination. – Company to reimburse the EPA for a portion of prior clean up costs (US$20M over 7 years) and to pay US$960,000 per year to cover costs of ongoing water treatment plant operation.

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Fully Permitted

Source Zone P&P Reserves/Resources (tons) Zinc (%) Lead (%) Silver (oz/ton) Cominco Engineering Services Mine Plan (1989)** Quill/Newgard 4,669,600*** 5.01 2.87 1.61 Bunker Hill Mining Company Inc. (1991) Quill/Newgard + others 9,141,109**** 5.08 2.35 1.29

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*SEC Compliant Resource but not to be considered 43-101 compliant ** Above the 9 Level *** approximately 8 years of production at a throughput rate of 1,500 tpd **** approximately 17 years of production at a throughput rate of 1,500 tpd

Historic Resources*

11 Quill Drill Indicated Resource South Newgard Mined Out UTZ Quill Ore Zones from 1991 Bunker Hill Reserves

15 Level Kellogg Tunnel & 9 Level

NW Newgard

Location of Newgard, Quill and UTZ Ore Bodies

Project Setting/Geology

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• Coeur D’Alene Mining District – World Class Production and Potential

– World class past production: Historically the 2nd largest silver producer in the world (> 1 billion

• unces Ag)

– Significant historical production of Zinc and Lead: equivalent to approximately 100Mt of ore grading 10% Zn/Pb combined.

• Prolific host rock, Extensive Structural Preparation

– Mineralization (sphalerite, galena, tetrahedrite) hosted in the Revett Formation, part of the Belt Supergroup, which consists of alternating intervals of quartzite and siltite, together more than 1,200 metres thick. – Mineralization at Bunker Hill is controlled by 2 major parallel faults (Osburn and Placer Creek), with numerous splays and tensional gashes.

• Significant Exploration Potential

– All zones are open at depth. – Potential parallel zones (such as the South Newgard) represent further upside.

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Project Setting/Geology

• 90 years of production history:

– 35M tons of ore grading 8.76% Pb, 3.67% Zn, and 155 g/t Ag.

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Past Producer – Proven Metallurgy

Moisture content of the concentrates is 8-10 percent.

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Lead Concentrate Zinc Concentrate Silver

troy oz/ton 31 – 34 2 – 3

Gold

troy oz/ton Nil Nil

Lead

% 65 – 69 1 – 2

Zinc

% 5 – 7 55 – 58

Cadmium

% 0.01 – 0.03 0.10 – 0.22

Copper

% 0.5 – 1.0 0.10 – 0.15

Antimony

% 0.25 – 0.35 0.01 – 0.03

Arsenic

% 0.01 – 0.10 0.10 – 0.16

Mercury

ppm 10 – 40 100 – 200

Sulfur

% 15 – 17 27 – 30

Tin

% Trace 0.001 – 0.002

Nickel

% Trace Trace

Bismuth

% 0.001 – 0.005 0.001 – 0.003

Iron

% 4.0 – 5.5 4.5 – 6.5

Insoluble

% 1.0 – 1.5 2.5 – 3.0

• Historical Lead & Zinc concentrate specifications (Quill and Newgard zones circa 1979)

Past Producer – Proven Metallurgy

Moisture content of concentrate: 8-10%

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Developed: Near term access to 8+ years of mineable material

The Number 2 Hoist The Number 1 Hoist

Developed: Existing Site Infrastructure

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Higher Grades

• Higher Grade Zones

– Zonation: numerous areas where higher zones surrounded by lower grade halo – Significant historical production of Zinc and Lead: equivalent to approximately 100Mt of ore grading 10% Zn/Pb combined. – Stope design to minimize economically marginal ore.

• Implementation of Modern Grade Control Methods

– Historically geologists were not utilized for grade control. – Miners were paid by cubic feet mined – volumes were maximized at expense of grade. – Future operation will benefit from the utilization of on-shift grade control geologists.

• Eg. Level 14 Quill Zone historical diamond drill results:

62 ft of 1.9% Pb, 0.7 opt Ag, 16.6% Zn within 182 ft of 0.9% Pb, 0.3 opt Ag, 7.3% Zn

• Access: First World

– commercial air travel to Seattle and Spokane, then 1.5 hours highway drive on Interstate 90: mine is 500 metres south of highway and town of Kellogg (population: 2,000). – 45 minute drive from Coeur D’Alene (population: 50,000) and 1.5 hour drive from Spokane (population: 215,000).

• Power: Low cost

– Industrial hydroelectric rates are 4.5-5.5 cents/kWh.

• Water: Abundant

– Water sources are abundant and include mine outflow & south fork of Coeur D’Alene river.

• Labour and Mine Services: Developed and Available

– Over 100 mines have operated in the Silver Valley for over 100 years, resulting in abundant available skilled labour and mining services suitable to local underground mining conditions.

• Idaho:

– has mining friendly laws and is a “Right to Work” state.

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Excellent Infrastructure/Geopolitical Risk

• Accessible & Previously Developed/Mined: Quill/Newgard zones

– Comprise approximately 4M tons of the historical resources. – September 2018 NI-43-101 Technical Report on the Bunker Hill Mine Property outlines a 10-12 million ton Exploration Target, grading 6-8% combined Zn + Pb, on these zones.

• Extensions of Known Zones

– Up-dip and on strike extension of Quill, down-dip extension of Newgard. – Potential offset extension of March zone.

• New Zones

– 3,400 DD holes show numerous high grade intercepts not followed up on, eg. potential parallel zone to the March. – No previous comprehensive view/understanding of control on mineralization. – No geophysics utilized historically.

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Exploration Potential

Proposed Drill Program for Quill/NewGard zones Exploration Target

– 5 DD rigs and directional drilling to define an Indicated Resource (100 ft. centres) on the entire 4,500 ft. plunge length of the Leapfrog wireframe depicting the Exploration Target.

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Exploration Potential

Proposed Drill Program for Quill/Newgard zones Exploration Target

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Exploration Potential

Upper Zones (above 9 Level) Lower Zones (below 9 level) Total Leapfrog tonnage 4.51 M tons 5.53 M tons 10.04M tons Metres drilled 17,960 26,155 44,115 Cost1 US$ 4.49M US$ 6.83M US$ 11.32M Duration2 80 days 116 days 116 days (4 mos.)

1 approximately 70% standard DD drilling at US$ 150-160 per metre, and 30% directional

drilling at US$ 220-230 per metre.

2 the Upper and Lower Zones will be drilled simultaneously, therefore the duration of both

programs together is determined by the longest program.

• Bruce Reid, President and Chief Executive Officer

– Geologist (University of Toronto) – Former President and CEO of Carlisle Goldfields Limited : Sold to Alamos Gold for 209% premium to market. – Founder and former CEO of US Silver: Put the Galena mine back into production in 2008. – Former Executive Director of Patricia Mining, Founder of Western Goldfields,Founder of High Plains Uranium. – Analyst and Investment Banker for over 15 years with firms such as Nesbitt Thomson, Loewen Ondaatje McCutcheon, and Yorkton Securities.

• Mark Hartmann, Chief Operating Officer

– Mining Engineer (University of Minnesota) – Former COO of US Silver. – Former Mine Manager of the Sunshine Mine. – Former Western Missouri Operations Manager at Lafarge, and Port Inland Mining Production Manager at Chemical Lime.

• Julio DiGirolamo, Chief Financial Officer

– CPA, CA – Former CFO of Carlisle Goldfields Limited. – Former Vice President and Corporate Secretary at Greenstone Resources.

Management: Technical and Capital Markets background and a Proven Track Record in the Silver Valley

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• Bruce Reid

– Former President and CEO of Carlisle Goldfields Limited; Founding Shareholder of US Silver.

• John Ryan

– 25 years experience as a Mining Engineer with extensive knowledge of the Coeur d'Alene mining district, Founder US Silver.

• Howard Crosby

– +25 years experience as an executive in the mining industry, having served as an officer and director of public companies listed in Canada, USA and UK.

• Roy Shipes

– Former General Manager of Ok Tedi Mining Limited, Managing Executive Southern Peru Copper.

• Jennifer Boyle

– Head of Global Corporate Finance for Velocity Trade Group of Companies, Founder and former CEO Satori Resources, and Takara Mining.

• Dickson Hall

– Partner in Valuestone Advisory Limited and Manager of Valuestone Global Resources Fund 1

Directors

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*SEC Compliant Resource not to be considered NI 43-101 compliant

Re-starting a Significant Past Producer in a Historic Mining Camp

• Fully Permitted: Patented ground and signed EPA Agreement.
• Historic SEC Proven & Probable Reserves and Resources*: 9.1M tons @

5.08% Zn, 2.35% Pb, 1.29 opt Ag.

• Past Producer – Proven Metallurgy: The Bunker Hill Mine produced over

35M tons of ore grading 8.76% lead, 3.67% zinc, and 155 g/t silver. Zinc and lead concentrates are very clean with no deleterious elements.

• Developed: Near term access to +8 years of mineable material at 1,500 tpd.
• High grade zones: > 20% combined Pb/Zn.
• Excellent Infrastructure/Geopolitical Risk: paved road access, low cost

power, water, skilled labour, mining services, Idaho is mining friendly and a “Right to Work” state.

• Exploration Potential: 3,400 DD holes show numerous high grade intercepts

that were never followed up on.

• Experienced Management: operated the nearby Galena Mine.

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Contact Information

Bruce Reid

President & CEO 647.500.4495 br@bunkerhillmining.com

Nicholas Konkin

Marketing & Communications 416.567.9087 nk@bunkerhillmining.com

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NSR on production after the purchase option is exercised as follows:

• 2% NSR until US$ 15M is paid,
• after which there is a 1% NSR until US$ 15M is paid,
• after which there is a 0.5% NSR until US$ 30M is paid,
• for a total maximum amount payable of US$ 60M

Appendix A: EPA, Property, & NSR Payments

Date Payment to Lessor Payment to U.S EPA On Closing $4,000,000 $3,000,000 One year after closing $3,000,000 $3,000,000 Two years after closing $3,000,000 $3,000,000 Three years after closing $3,000,000 $3,000,000 Four years after closing $2,000,000 $3,000,000 Five years after closing $1,670,000 $1,670,000 Six years after closing $1,670,000 $1,670,000 Seven years after closing $1,670,000 $1,660,000 Eight years after closing $1,670,000 Nine years after closing $1,670,000 Ten years after closing $1,650,000 Total $25,000,000 $20,000,000