CORPORATE PRESENTATION
Powering the Future - JUNE 2018
1 TSX.V: MC FSE: AOK OTCQB: MCCBF
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
Powering the Future - JUNE 2018
1 TSX.V: MC FSE: AOK OTCQB: MCCBF
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
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
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
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
Discover & develop world-class assets to meet the growing demand for cobalt
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
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
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
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
6 TSX.V: MC FSE: AOK OTCQB: MCCBF
Source: InfoMine.com
7 TSX.V: MC FSE: AOK OTCQB: MCCBF
Source: United States Geological Survey, Mineral Commodity Summaries 2017
THE GEOLOGY THE COUNTRY
8 TSX.V: MC FSE: AOK OTCQB: MCCBF
Location of major Co, Cu, Ni, Au and other deposits and mines
deposits (Katanga Style), VMS style Co/Cu mineralization, and mafic/ultramafic hosted Ni/Co
ASSET OVERVIEW
7 licenses in 2 areas ranked as top targets by GTK:
At the nexus of prolific mineral trends (Twangiza, Geita)
2 licences <25km N and S of Kilembe Mine
Katanga (DRC)-style mineralization
9 TSX.V: MC FSE: AOK OTCQB: MCCBF
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
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
M2 IS ON TREND WITH A PROVEN COBALT PRODUCER
Kilembe Co-Cu Mine
11 TSX.V: MC FSE: AOK OTCQB: MCCBF
Historic Kilembe Mine: Along major NE-SW trending fault that marks boundary between an archaen gneiss and paleo-proterozoic mica schist
area with modern day technology
HELI-BORNE SURVEY COMPLETED WITH MULTIPLE TARGETS
12 TSX.V: MC FSE: AOK OTCQB: MCCBF
Magnetic Gradiometer Geophysical Surveys
deposits
spacing, 2,945 total line kms.
then drilling
DRILL TARGETS IDENTIFIED
13 TSX.V: MC FSE: AOK OTCQB: MCCBF
identified186 priority anomalies in EL 1674. Anomaly picks from EL 1673 in progress.
already identified with coincidental magnetics, electromagnetics and significant Tau values. Modelled as steeply dipping conductors likely indicative of sulphide mineralization.
Ni anomaly (up to 1938ppm Ni in soils) with coincident magnetics (“values are so high that they clearly indicate Ni mineralization” (GTK, 2011)
14 TSX.V: MC FSE: AOK OTCQB: MCCBF
MULTIPLE DISCOVERIES IDENTIFIED
5 licences covering 1371.2 km2
targets ranked by GTK (Finish Geological Survey)
Co, 0.4% Cu, 0.15% Ni, 3.5 g/t Au
deposits.
15 TSX.V: MC FSE: AOK OTCQB: MCCBF
IMPRESSIVE EARLY RESULTS
Approximately 1,200 metres by 900 metres
Airborne geophysics (Fugro / GTK), ground geophysics & geochemistry by M2 Cobalt
Weathered Ultramafic rocks with sulphides encountered during trenching
16 TSX.V: MC FSE: AOK OTCQB: MCCBF
IMPRESSIVE EARLY RESULTS
91 samples > 101 ppm Ni (17 of 0.1% - 0.16%) 86 samples > 100 ppm Co (8 of 206 - 416 ppm Co)
Up to 0.65% Co, 0.4% Cu, 0.15% Ni
Trenching (Complete!) Drilling late Summer 2018
17 TSX.V: MC FSE: AOK OTCQB: MCCBF
SECOND MAJOR COBALT DISCOVERY
anomaly:
Approximately 750 metres by 550 metres – open to North East
56 samples > 100 ppm Co (6 of 212 - 626 ppm Co) 37 samples > 100 ppm Cu (7 of 160 - 547 ppm Co)
meta-sediments):
Up to 1.24% Co, 0.4% Cu
Trenching (Complete!) , Infill sampling / grid extension - drilling late Summer, 2018
18 TSX.V: MC FSE: AOK OTCQB: MCCBF
TRENCHING UNVEILS UNMAPPED SEDIMENTS (WARAGI) & ULTRAMAFICS (BOMBO)
Developing Drill Targets and Line of Sight to an Initial Resource
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
19 TSX.V: MC FSE: AOK OTCQB: MCCBF
20 TSX.V: MC FSE: AOK OTCQB: MCCBF
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
commence Q3, 2018 Management has ‘on the ground’ operating capability, relationships, international mining and finance experience
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
22 TSX.V: MC FSE: AOK OTCQB: MCCBF
period
0.2-foot sample contained 25 Oz/ton Ag.
surrounding core claims
23 TSX.V: MC FSE: AOK OTCQB: MCCBF
M2 COBALT ASSESTS COBALT, ONTARIO
24 TSX.V: MC FSE: AOK OTCQB: MCCBF
March, 2009: VTEMTM
April, 2009: Start
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
Safwa: 1.7 Mt @ 2.4% Cu
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
25 TSX.V: MC FSE: AOK OTCQB: MCCBF
26 TSX.V: MC FSE: AOK OTCQB: MCCBF
Base and precious metals royalty is 5%
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
convert to mining lease – 21 years