CORPORATE PRESENTATION Powering the Future - JUNE 2018 TSX.V: MC - - PowerPoint PPT Presentation

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CORPORATE PRESENTATION Powering the Future - JUNE 2018 TSX.V: MC - - PowerPoint PPT Presentation

CORPORATE PRESENTATION Powering the Future - JUNE 2018 TSX.V: MC FSE: AOK OTCQB: MCCBF 1 FORWARD LOOKING STATEMENTS This Presentation includes, and is based on, forward-looking information and statements including Forward-Looking


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CORPORATE PRESENTATION

Powering the Future - JUNE 2018

1 TSX.V: MC FSE: AOK OTCQB: MCCBF

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FORWARD LOOKING STATEMENTS

This Presentation includes, and is based on, forward-looking information and statements including “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act. These Forward-Looking Statements include references to or assumptions regarding future prices or demand for cobalt, accuracy of mineral or resource exploration activity, the existence of reserves or resources, regulatory or government requirements or approvals, access to third party information and continued access to mineral properties or

  • infrastructure. The words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “fast”, “forecast”, “may”, “schedule”, “strategy” and similar words or expressions identify forward-

looking information and statements. Forward looking statements are subject to risks and uncertainties that could cause actual results and outcomes to differ. These risks and uncertainties include, but are not limited to, economic conditions globally, the impact of competition, political and economic developments in the countries in which the Company operates, fluctuations in the margins for the Company’s product, economic and market conditions in the geographic areas and industries that are or could be major markets for the Company’s business, cobalt and lithium prices and market fluctuations, changes in governmental regulations, interest rates, accuracy of mineral or resource exploration activity, the possibility regulatory or government requirements or approvals will not be obtained, access to third party information, access to mineral properties or infrastructure, currency risks including the exchange rate of the US$ to the Cdn$ and/or the Uganda shilling, changes in exploration costs and government royalties or taxes in Canada or Uganda, disputes with indigenous peoples or

  • ther stakeholders and such other factors as may be discussed from time to time. Although the Company believes that its expectations and the information in this Presentation are based upon

reasonable assumptions at the time when they are made, it can give no assurance that those expectations will be achieved or that the actual outcomes or results will be as set out in this Presentation. The Company is not making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Presentation, and neither the Company nor any of its directors, officers or employees will have any liability to the reader or any other persons resulting from the reader's use of the information in the Presentation. The Company undertakes no obligation to publicly update or revise any forward-looking information or statements in the Presentation. The reader should consult any further disclosure, including but not limited to relevant technical reports, which the Company has made, and may make, in documents it files with applicable securities regulators. This Presentation is intended for educational and informational purposes only and does not replace independent professional judgment. Statements of fact and opinions expressed are those of the participants individually. The information is not designed to provide financial, tax planning, accounting, investment, business or legal advice in any way whatsoever. The reader should consult with a lawyer, accountant and other professionals in respect of the contents hereof. Furthermore, the information in no way should be construed or interpreted as, or as a part of, an

  • ffering of, or a solicitation for the purchase of, securities. Investors are advised to discuss any trading with a registered securities broker or personal finance professional prior to investing.

The technical information contained in this presentation has been reviewed and approved by Dean Besserer, P.Geo, Technical Adviser to the Company and a Qualified Person as that term is defined in National Instrument 43-101. 2 TSX.V: MC FSE: AOK OTCQB: MCCBF

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INTRODUCING M2COBALT

OUR VISION

Discover & develop world-class assets to meet the growing demand for cobalt

  • Approx. 1,600 km2 of the top ranked cobalt prospects per GTK. Also

Cu, Ni & Au

Prime locations in Uganda, adjacent to the DRC

The assets

Assets and drill targets on trend with historic Kilembe mine Same geologic footprint as DRC, Rwanda, Tanzania, South Sudan Global resource experience with proven track-record of advancing projects and creating shareholder value

Exploring for World Class Cobalt Deposits

The expertise

Significant success in battery metals World class team & in-country expertise (local Uganda team of 25) 3 TSX.V: MC FSE: AOK OTCQB: MCCBF Ongoing work program – 4 large discoveries to-date, rock / soil sampling up to 1.24% Co, 0.4% Cu and 0.15% Ni

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SLIDE 4

M2 MANAGEMENT / BOARD

Simon Clarke, LLB, Dip.LP – Director, CEO 25 years in senior roles focused on resources, energy and energy technology. Co-Founder OSUM Oil Sands, former EVP RailPower Technologies, Director of several public mining companies. LLB University of Aberdeen Andy Edelmeier, MBA, CPA, CMA – Director, CFO Senior Investment Banking with JP Morgan Chase & Credit Suisse First Boston in London. President Braemar West Capital Inc., MBA London Business School, CPA, CMA Thomas Lamb, JD, MSc, BA , – Director, VP Operations Former securities lawyer. Co-Founder Goldgroup Mining, Ex Director Uzhuralzoloto group (Russia's 3rd largest gold producer). CEO of Auranda Minerals focused on East Africa exploration. mSc and Sloan Fellow at London Business School

  • Dr. Jennifer

Hinton, Ph.D – Head of East Africa Operations World renowned expert on local and artisanal mining in East and Central Africa. Based in Uganda for 13 years. Former consultant to World Bank, UN Agencies and multinationals. Has key local relationships and heads East Africa Operations. Ph.D in Geological Engineering at UBC Graham Harris, BA - Director Chairman, Millennial Lithium Corp. (TSX-V: ML). 30 years finance industry experience. Former SVP & Director Canaccord Genuity Corp. Dean Besserer, P.Geol. – Exploration Manager & QP Previously, Managing Director and Principal at APEX Geoscience Ltd, international geological consulting firm with offices in Canada, South America, Australia. Has led exploration programs and property evaluations for various commodities including gold, base metals, graphite, tin, uranium and diamonds for numerous major and junior mining companies across the globe 4 TSX.V: MC FSE: AOK OTCQB: MCCBF Part of team that has built IAMGOLD Corporation (TSX and NYSE) to $3.1 billion market cap. CFO 1990-1999 and remains Director. Chairman Fortune Minerals - helped raise over $100 million for company Mahendra Naik, CPA – Advisor to the Board

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COBALT – INCREASING DEMAND

COBALT DEMAND FORECAST

5 TSX.V: MC FSE: AOK OTCQB: MCCBF

Source: Cormark Securities Inc.

COBALT SUPPLY FORECAST

50000 100000 150000 200000 250000 300000 350000

2017 2018 2019 2020 2021 2022 2023 2024 2025

Batteries Superalloy Chemical Metallurgical

Cobalt Demand, tonnes

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COBALT – RAPID PRICE RISE

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Source: InfoMine.com

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WHY EAST AFRICA

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Source: United States Geological Survey, Mineral Commodity Summaries 2017

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UGANDA: LOCATION LOCATION LOCATION

THE GEOLOGY THE COUNTRY

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Location of major Co, Cu, Ni, Au and other deposits and mines

  • Region Hosts World’s Most Prolific Source of Cobalt
  • Uganda: geologic foot-print for sediment hosted Cu/Co

deposits (Katanga Style), VMS style Co/Cu mineralization, and mafic/ultramafic hosted Ni/Co

  • Proven cobalt producer in historic Kilembe Mine
  • Similar underlying geology as DRC, yet underexplored
  • Stable Government, British-based Legal System
  • Transparent mining code to attract foreign investment
  • Free from DRC conflict minerals issues
  • Improving, modern infrastructure
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SUBSTANTIAL ASSET BASE – STRONG EARLY RESULTS

ASSET OVERVIEW

  • 100% Owned:

7 licenses in 2 areas ranked as top targets by GTK:

  • Kilembe Area (193 Kms2)
  • Bujagali (1,371 Kms2)
  • On Trend:

At the nexus of prolific mineral trends (Twangiza, Geita)

  • Kilembe:

2 licences <25km N and S of Kilembe Mine

  • #1 area for Co-Cu exploration (GTK)
  • VMS Co-Cu mineralization
  • Bujagali:

Katanga (DRC)-style mineralization

  • 2 Large-scale discoveries – Bombo & Waragi Targets
  • Rock samples up to 1.24% Co, 0.4% Cu
  • Significant Artisanal gold rushes in recent past

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THE KILEMBE PROJECT

PAST PRODUCING KILEMBE MINE

World Class Producer: >16 M/T ore grading 2% copper and 0.17% cobalt between 1956 and ‘77. Operated by Falconbridge Resources: Falconbridge (1979) estimated 4.1 Mt grading 1.77% Cu measured and indicated Time Mining Consultants: 5.1 Mt tailings grading 0.12% Co, 0.18% Cu based on 3,900 metres drilled VMS-type Deposit: Ore assays - 2.20% Cu, 0.25% Co, 0.36% Ni, and 15.4% S (GTK, 2011) Recent Revitalization: Despite 30+ years

  • f peace and stability, Kilembe Mine only

re‐opened in 2013 when Tibet Hima Mining was awarded rights to rehabilitate and expand operations Top Area: Area around the mine with similar geologic features ranked as the #1 exploration target in Uganda (GTK) 10 TSX.V: MC FSE: AOK OTCQB: MCCBF

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THE KILEMBE PROJECT

M2 IS ON TREND WITH A PROVEN COBALT PRODUCER

Kilembe Co-Cu Mine

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  • Areas analogous to

Historic Kilembe Mine: Along major NE-SW trending fault that marks boundary between an archaen gneiss and paleo-proterozoic mica schist

  • Huge potential to explore

area with modern day technology

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THE KILEMBE PROJECT

HELI-BORNE SURVEY COMPLETED WITH MULTIPLE TARGETS

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  • Heli-borne airborne geophysical survey: VTEM™ B-Field and Horizontal

Magnetic Gradiometer Geophysical Surveys

  • High profile “Official Launch”: Kasese March 29, 2018
  • Technology and Survey Design: Specifically targets buried Kilembe-style VMS

deposits

  • Airborne Complete: Data acquisition completed in Kasese District. 100m line

spacing, 2,945 total line kms.

  • Several anomalies identified: targeted ground geochem / geophysics to follow -

then drilling

  • Crew Mobilized to the Field for Follow-up: June, 2018
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THE KILEMBE PROJECT

DRILL TARGETS IDENTIFIED

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  • Heli-borne airborne geophysical survey: Preliminary picks

identified186 priority anomalies in EL 1674. Anomaly picks from EL 1673 in progress.

  • Drill Targets Identified: Two high-priority drill targets

already identified with coincidental magnetics, electromagnetics and significant Tau values. Modelled as steeply dipping conductors likely indicative of sulphide mineralization.

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THE BUJAGALI PROJECT

Ni anomaly (up to 1938ppm Ni in soils) with coincident magnetics (“values are so high that they clearly indicate Ni mineralization” (GTK, 2011)

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MULTIPLE DISCOVERIES IDENTIFIED

5 licences covering 1371.2 km2

  • One of the highest priority exploration

targets ranked by GTK (Finish Geological Survey)

  • Rock grab samples contain up to 1.24%

Co, 0.4% Cu, 0.15% Ni, 3.5 g/t Au

  • Geochem, geophysics, geology indicative
  • f DRC (Katanga Style) Copper/Cobalt

deposits.

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BOMBO TARGET: LARGE-SCALE ANOMALY

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IMPRESSIVE EARLY RESULTS

  • Large-scale Nickel / Cobalt / Copper anomaly:

Approximately 1,200 metres by 900 metres

  • Discovery validated by geochem / geophysics:

Airborne geophysics (Fugro / GTK), ground geophysics & geochemistry by M2 Cobalt

  • Ultramafic Host Rocks:

Weathered Ultramafic rocks with sulphides encountered during trenching

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IMPRESSIVE EARLY RESULTS

BOMBO TARGET: LARGE-SCALE ANOMALY

  • Anomalous soils:

91 samples > 101 ppm Ni (17 of 0.1% - 0.16%) 86 samples > 100 ppm Co (8 of 206 - 416 ppm Co)

  • Rock grab samples:

Up to 0.65% Co, 0.4% Cu, 0.15% Ni

  • Next Steps:

Trenching (Complete!) Drilling late Summer 2018

  • Developing Line of Sight to Initial Resource
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THE WARAGI TARGET: UP TO 1.24% COBALT

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SECOND MAJOR COBALT DISCOVERY

  • Large-scale Cobalt / Copper Katanga Style Target

anomaly:

Approximately 750 metres by 550 metres – open to North East

  • Anomalous soils:

56 samples > 100 ppm Co (6 of 212 - 626 ppm Co) 37 samples > 100 ppm Cu (7 of 160 - 547 ppm Co)

  • Rock grab samples (hydrothermal breccias / altered

meta-sediments):

Up to 1.24% Co, 0.4% Cu

  • Next Steps:

Trenching (Complete!) , Infill sampling / grid extension - drilling late Summer, 2018

  • Developing Line of Sight to Initial Resource
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INITIAL BUJAGALI TRENCHES COMPLETE

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TRENCHING UNVEILS UNMAPPED SEDIMENTS (WARAGI) & ULTRAMAFICS (BOMBO)

Developing Drill Targets and Line of Sight to an Initial Resource

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CAPITAL STRUCTURE

STRUCTURE TSX.V – SYMBOL: FSE – SYMBOL: OTCQB – SYMBOL: MC AOK MCCFB SHARE PRICE (June 11, 2018) $0.34 SHARES OUTSTANDING: 63,775,000 33.5M SHARES SUBJECT TO 3 YEAR LOCK UP (MAJORITY VOLUNTARY) INSIDERS & ASSOCIATES OWN IN EXCESS OF 50% WARRANTS: 5,000,000@ $0.40 WARRANTS ON FINANCING: 8,500,000@ $0.80 OPTIONS: 5,657,500@ $0.20 & $0.50 MARKET CAPITALIZATION: $21.7 MILLION ESTIMATED CASH ON HAND: $4.5 MILLION USE OF PROCEEDS: PHASE I WORK PROGRAM ONGOING: UP TO $5.0 MILLION

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SUMMARY

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A unique land package approx. 1,600 km2 - highly prospective for Co, Cu and Ni Located next door and on trend with the DRC where over 60% of world cobalt supply originates Uganda is mining and investor-friendly. Government actively supports mining development Initial discoveries with up to 1.24% Cobalt validates significant potential of

  • assets. Drilling to

commence Q3, 2018 Management has ‘on the ground’ operating capability, relationships, international mining and finance experience

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CONTACT INFO

M2COBALT

Suite 2000 - 1177 West Hastings Street Vancouver, BC Canada V6E 2K3 E-Mail: info@m2cobalt.com Website: www.m2cobalt.com Twitter: @M2Cobalt

21 TSX.V: MC FSE: AOK OTCQB: MCCBF

Simon Clarke, CEO Simon@m2cobalt.com 604 551 9665 Andy Edelmeier, CFO Andy@m2cobalt.com 604 897 8149

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APPENDIX

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THE SILVERSIDE PROJECT

  • Historically the most prolific cobalt camp in Canada
  • 50 million pounds of cobalt and 600 million ounces of silver mined over a 60-year

period

  • Peak production from 1919 to 1931
  • Limited modern exploration
  • Mining activity declined after WWII
  • Focus was silver, Not cobalt
  • Rebirth underway as a significant source of “ethical” cobalt
  • Approx. 450 km North of Toronto, and 30 Km Northwest of the Town of Cobalt.
  • Core Silverside property comprises four contiguous mineral claims (24 claim units)-
  • Approx. 384 Ha
  • Historic work intersected cobalt mineralization, ranging from 0.62% Co to 0.74%. One

0.2-foot sample contained 25 Oz/ton Ag.

  • Recent airborne / geo chem work identified a number of anomalies / structures
  • Company recently exercised option to add approx. 2,400 ha of contiguous land

surrounding core claims

  • Total package now approx. 2,800 ha
  • 43-101 covers core acreage + option

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M2 COBALT ASSESTS COBALT, ONTARIO

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SLIDE 24

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VTEMTM survey leads to rapid discovery of 4 buried VMS deposits in Oman

AIRBORNE SURVEY TAILORED TO KILEMBE-STYLE MINERALIZATION

Focus on mafic hosted Cu +/- Au VMS deposits:

 March, 2009: VTEMTM

survey and target ID

 April, 2009: Start

drilling

VTEM to resource definition: 6 months. Pre-stripping for mine development only 8 months later. SAFWA VMS: From VTEM to resource definition in 6 months. Pre-stripping for mine development

  • nly 8 months later.

 Safwa: 1.7 Mt @ 2.4% Cu

Aswad: 2.5 Mt @ 2% Cu Mandoos: 7 Mt @ 1.5% Cu Khaznah: 350 kt@ 1% Cu

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COMPARISONS OF COBALT EXPLORERS

Location Size of property Share Price Cash Market Cap (CDN) Katanga DRC 170,000 Hectares $1.04 $13,073,000 $2.002B Clean TeQ Cobalt Australia 2,884 Hectares AUD $1.01 $88,000,000 AUD $715.16M First Cobalt (pro forma) Silver Centre, Ontario 9,300 Hectares+ former producing mines $0.70 $2,711,175 $235M ECobalt Idaho 5,000 Hectares $1.34 $12,608,232 $211.3M US Cobalt Idaho 513 Hectares $1.02 $4,288,574 $74.1M Bankers Katanga, DRC 21,000 Hectares (Not 100% owned) $0.14 Unknown $13.40M Pacific Rim Cobalt Indonesia 5,000 Hectares $0.44 $98,217 $22.4M M2 Cobalt Uganda, Ontario 160,000 Hectares $0.34 $5,000,000 $22M

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UGANDA MINING CONSIDERATIONS

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Base and precious metals royalty is 5%

  • n production

No requirement for ‘local’ ownership Dr Jennifer Hinton, M2Cobalt’s East Africa Director, is on the Presidential Advisory Committee Free from conflict and child labor issues of DRC Stable regime keen to attract resource investment and differentiate from neighbours Legal System based on English common law Sound, transparent mining laws and policies developed with World Bank

  • Legal separation of land ownership from mining rights
  • License system – cadastre-based
  • Exploration Licenses - 7 years to explore (3+2+2) then

convert to mining lease – 21 years