Corporate Presentation March 2020 TSX:ALS | OTCQX:ATUSF Forward - - PowerPoint PPT Presentation

TSX:ALS | OTCQX:ATUSF

March 2020

Corporate Presentation

TSX:ALS | OTCQX:ATUSF

This document includes certain statements that constitute “forward‐looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward‐looking statements”). Forward-looking statements include statements regarding Altius Minerals Corporation’s (“Altius”) intent, or the beliefs or current expectations of Altius’ officers and directors. Such forward-looking statements are typically identified by words such as “believe”, “anticipate”, “estimate”, “project”, “intend”, “expect”, “may”, “will”, “plan”, “should”, “would”, “contemplate”, “possible”, “attempts”, “seeks” and similar expressions. Forward‐looking statements may relate to future outlook and anticipated events or results. By their very nature, forward‐looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward‐looking statements will not prove to be accurate. Do not unduly rely on forward‐looking statements, as a number of important factors, many of which are beyond Altius’ control, could cause actual results to differ materially from the estimates and intentions expressed in such forward‐looking statements. Forward‐looking statements speak only as of the date those statements are made. Except as required by applicable law, Altius does not assume any obligation to update, or to publicly announce the results of any change to, any forward‐looking statement contained herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward‐looking statements.

Forward Looking Statements

TSX:ALS | OTCQX:ATUSF

Long-Term, Counter-Cyclical Discipline

ROYALTY REVENUE GROWING FAST ON VOLUME

GROWTH AND IMPROVED PRICES

COMMODITIES SUPERCYCLE COMMODITIES SUPERCYCLE

ENDS

$6M $28M $33M $47M $67M

$78M

IPO & INITIAL YEARS

Royalty Acquisition Altius Interpretation

• f Mining Cycle

Position Royalty Revenue

2002 – 2011 1997 – 2001 2012 – 2015 2016 – Present

Cash Build Acquisitions Organic Growth

• Less than $1MM market cap upon IPO in 1997
• Innovator of Project Generator Model for mineral exploration that

trades projects for royalties and partner equity – protecting Altius capital structure

• Equity gains of more than $200MM and many early stage royalties

created from PG business during super-cycle

• Decision to use profits to expand royalty portfolio with focus on non-

precious metal commodities

• Developed a royalty wish list but forced to sit on cash for several

years until commodity prices and sentiment declined

• Multiple royalty acquisitions made as balance sheet crisis hit the

mining sector and motivated asset sales

• Royalty revenue from long life assets grown to $78M - with very high

accompanying EBITDA and Cash Flow margins

• Embedded organic (free) growth coming from mine expansions and

extensions while also innovating new renewable royalty business

• 42 million common shares outstanding - no roll backs

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TSX:ALS | OTCQX:ATUSF

$0.22 $0.88 $0.83 $1.08 $1.56 $1.86 $1.79- $1.91

FY 2014 FY 2015 FY 2016 FY 2017 2018 2019 2020 Guidance

Growth Track Record

EBITDA Per Share Royalty Revenue Per Share

$0.71 $0.64 $0.80 $1.24 $1.49 $1.43- $1.53

FY 2015 FY 2016 FY 2017 2018 2019 2020 Guidance

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$6M $28M $33M $47M $67M $78M $75M

• $80M

FY 2014 FY 2015 FY 2016 FY 2017 2018 2019 2020 Guidance

Royalty Revenue Per share growth focus

80% EBITDA Margin 56% OCF Margin

TSX:ALS | OTCQX:ATUSF

Royalty Growth Pipeline

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Strong operating margins and long resource lives (85 years revenue weighted average) motivating multiple new build and expansion investments by operators = free royalty growth

Organic (Free) Mine Royalty Growth

New renewable energy royalty business growing fast as electricity generation transition accelerates and sector begins to recognize benefits of royalty finance offering

Renewable Royalty Business Gaining Momentum

Discovery

Renewable Development Portfolio 2.5 GW Portfolio Rocanville Cory Allan Vanscoy Esterhazy Completed Potash Expansions New Mines in Construction Voisey’s Underground (Ni-Co-Cu) Gunnison (Copper)

Building Ramping Up Financing and Development

Chapada Expansion (Cu)

Resource Stage Expansion Study

Expansion of Existing Assets New Build Studies 168,000 metres of drilling in 2020 60+ Exploration Stage Royalties 21 GW Development Portfolio

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TSX:ALS | OTCQX:ATUSF

Proven Equity/Royalty Investment Strategy Allows Creation of New Pipeline Royalties at Negative Cost and Provides Cash for 3rd Party Royalty Acquisitions

PG Business Growth - Royalty Creation At Negative Cost

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Projects

$17M

Converted to new royalties and junior equities since 2016 market bottom Positive cash generation in 2019

Junior Equity Portfolio Growth

PG Net Monetizations

1st

Gunnison starting up to mark first PG created royalty to reach production stage 6 $22M $33M $54M

$54M

$11M

• $3M
• $6M

$17M

April 2016 April 2017 December 2018 December 2019

TSX:ALS | OTCQX:ATUSF

Levelized Cost of Energy Comparison

Renewables Transition Momentum Growth

EV Battery $ Cost / kWh $ Cost Parity with Internal Combustion Engine

Electrification trends (e.g. transportation about to shift to EV) will cause demand for electricity to grow and gain market share relative to other sources of consumer energy such as fossil fuels Lower costs, higher efficiencies and underlying demand growth coupled with a surge in ESG investment mandates creating a massive tailwind for renewable energy investments

Megatrends driving increased electricity demand: ESG Going Mainstream:

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Source: “Electrifying Insights: How Automakers can Drive Electrified Vehicle Sales and Profitability,” McKinsey – January 2017 , Lazard’s Levelized Cost of Energy Analysis – Version 13.0 (November 2019), US SIF Foundation

Within the electricity sector, renewable energy has become the cheapest form of new generation

Past the tipping point:

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TSX:ALS | OTCQX:ATUSF

Tri Global Energy Investment – First Year Progress

• Renewable energy royalties are being generated ahead of schedule – project sales in first year represent more than half that

required for full royalty vesting threshold - with remainder expected throughout 2020

• First royalty project, Canyon Wind (360 MW – TX), sold in October 2019 to Silverpeak Strategic Partners with operations

expected to begin in Q2 2021

• Woodford Wind (400 MW – IL) sold to Copenhagen Infrastructure Partners in December 2019 with operations expected to

begin in Q4 2021

• Flatland Solar (180 MW – TX) sold to Silverpeak Strategic Partners in March 2020 with operations expected to begin in Q4

2021

• TGE development pipeline has increased to over 2,300 MW (even after accounting for the 940+ MW in project sales)

Source Company Reports

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TSX:ALS | OTCQX:ATUSF

ARR’s Royalty Finance Model Attracts Second Major Developer

US$35MM+ Investment in Apex Clean Energy

Apex is one of the largest renewable energy developers in the U.S. and has commercialized over 5 gigawatt (GW) of clean energy projects since inception in 2009. Its current portfolio includes approximately 21 GW (12.5 GW wind, 8.5 GW solar)

• f development projects. Apex typically vends these projects to utilities, infrastructure funds and other institutional investors

prior to construction. Overview

• On March 10, 2020, Altius announced that ARR has closed a US$35+ million royalty investment transaction with Apex Clean

Energy (“Apex”)

• ARR’s investment is funding Apex’s development efforts for its current portfolio of projects and also facilitating its expansion -

allowing Apex to ultimately bring more projects to market

• As Apex sells its development projects to final project sponsors ARR receives new royalties until a minimum royalty vesting

threshold is met.

• Once vested by ARR, royalties are “perpetual” and uncapped

Royalty Contract Details

• Option mechanism allows for future US$10 million tranches based upon achieved milestones
• Royalty payment is pre-set as a percentage of gross revenues
• Using current assumptions portfolio is estimated to generate US$3-4 million in new annual royalty revenues

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TSX:ALS | OTCQX:ATUSF

21 GW

Development Portfolio

1.6 GW

Projects Transacted in 2019

+2.0 GW

Under Construction

Apex Is One of the Largest Renewable Energy Developers in US

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Source Company Reports

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TSX:ALS | OTCQX:ATUSF

Diversified, High Quality Assets

15 Producing Royalties

Investment Grade Operators Low Jurisdictional Risk

Canada, USA and Brazil

Royalty vs. Stream Dominated

Copper 37% Battery Metals (Ni-Li-Co) 2% Potash 19% Electricity Generation (Coal) 14% Premium Iron Ore 20% Steel Making Coal 4% Zinc 3%

2019 Commodity Revenue

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TSX:ALS | OTCQX:ATUSF

Coal to Renewables Fossil Fuel to Clean Energy Conversion Cu, Co, Ni, Li Clean Iron Ore Products Lower Emission Steel Making Soil Quality/Agricultural Yield Improvements Transportation Electrification Potash

Macro-Trend Altius Royalty Exposure

Subsidiary Altius Renewable Royalties Corp. (“ARR”) reinvesting royalty based capital to advance more than 23 GW of potential new renewable energy projects – as our 5 GW coal generation exposure phases out to zero Altius’s potash fertilizer royalties relate to a portfolio of top-tier Canadian mines that are ramping up into pre-built capacity expansions as sustainable food production needs increase Copper, which benefits more than any other metal from EV and renewable transitions, is Altius’s largest royalty exposure. Royalty exposure to battery metals - Nickel, Cobalt and Lithium is growing Royalty from IOC relates to high iron / low impurity concentrates and pellets that require less metallurgical coal usage in steel plants

Aligned with Global Sustainability Macro Trend

Sector leading fundamental business growth from assets that enable the world to meet its sustainability objectives

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TSX:ALS | OTCQX:ATUSF

Longevity

Mine lives calculated based on current mineral inventory and 2018 throughput. Coal asset lives denote the expected plant closure and not based on

• reserves. The 2018 revenue weighted average mine life is based on remaining reserves inclusive of MI resources and throughput capacity.

85+ Year Revenue Weighted Life

TSX:ALS | OTCQX:ATUSF

Strength of Operator Margin

Notes

• All amounts USD. Spot as at March 9, 2020. Spot Potash is FOB Midwest.
• Chapada margin calculated using Lundin’s guidance of 2020 C1 cash costs of copper per pound (NI43-101 report October 10, 2019) after precious metal by-product credits. Chapada cash

costs do not include the effects of copper stream agreements which will be a component of the copper revenue and will impact realized revenue per pound.

• Nutrien and Mosaic per tonne margins calculated by taking FOB Midwest Spot over Cost of Product Manufactured. COPM = Potash COGS for the 2019 excluding depreciation and

amortization expense and inventory and other adjustments divided by the production tonnes for the period. For Mosaic, we used the 2019 four quarter average actuals cash costs of production (excluding brine) – MOP ($/tonne)

• Voisey’s Bay margin calculation using SNL Modeled Cost Curve for Total Cash Cost per pound of nickel net of by-product credits.
• IOC margin based on Altius modeled $45/t cash costs for concentrate and $65/t cash costs for pellet.
• Gunnison is expected to be in commercial production in 2020. Total cash cost pe pound of copper is derived from the Base Case of the Feasibility Study dated January 16, 2017
• Manitoba Operations margin calculated using Hudbay’s annual actuals year ended December 31, 2019. Cash cost per pound of copper produced, net of by-product credits.

Operator Mine Commodity Benchmark Spot Price Operating Margin Lundin Chapada Copper $2.56 112% Nutrien All Operations Potash $255 211% Mosaic All Operations Potash $255 245% Vale Voisey's Bay Nickel $5.96 106% Rio Tinto IOC Fe Concentrate $91 102% Rio Tinto IOC Fe Pellet $132 103% Excelsior Gunnison Copper $2.56 194% Hudbay Manitoba Operations Copper $2.56 701%

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TSX:ALS | OTCQX:ATUSF

Historic Royalty Acquisition Returns

Acquisition Acquisition Date Purchase Price Realized After-Tax Unlevered Cashflow Net Asset Value(5%) Consensus Realized Cashflow + NAV vs. Purchase Price Voisey's Bay 2003 $13.6 million $25.1 million $18.2 million 318% Chapada Stream 2016 $76.8 million $40.2 million $124.0 million 214% Potash Portfolio 2014 & 2018 $138.2 million $42.5 million $226.9 million 195% IOC 2017 & 2019 $69.1 million $48.9 million $106.1 million 224% Callinan Merger 2015 $70.9 million $23.0 million $71.7 million 133% Coal Portfolio 2014 $191.7 million $67.9 million $67.1 million 70% $560.3 million $247.5 million $614.0 million 154%

Note 1. Purchase price is based on cash purchase price in CAD. For the acquisition of Callinan Royalties in 2015, the purchase price excludes cash and consideration allocated to non- royalty related assets. (see Note 9, 2016 Annual Financial Statements), and also includes the cost to exercise the option increasing the Gunnison Gross Sales Royalty (exercised in 2018).. The main producing royalty in Callinan is 777 with the Gunnison development stage royalty also part of that acquisition. 2. After tax unlevered cash flow is the cumulative (since acquisition) reported revenue up to December 31, 2019 after accounting for 27% corporate income tax. For LIORC, the effective tax rate is adjusted to zero to reflect the actual tax rate on inter-corporate dividends. For the Chapada copper stream, reported revenue is net of a 30% deduction to reflect the cost of purchasing copper, as per the contract. The effective tax rate on Chapada is 0% until the initial deposit of US$60 million is fully recovered. Voisey’s Bay royalty revenues are shown net of the 20% Newfoundland & Labrador royalty tax. 3. Consensus NAV by asset based on analysts reports from July - September 2019. The Callinan NAV consensus is based on NAV ascribed to 777 and to Gunnison.

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TSX:ALS | OTCQX:ATUSF Dividends $3M Dividends $5M Dividends $7M Dividends $7M Dividends $8M Share buy back $2M Share buy back $2M Share buy back… Share buy back $9M

2015 2016 2017 2018 2019

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TSX: ALS | OTCQX: ATUSF Issued Common Shares

41.8 million

Fairfax Preferred Securities

10.0 million ($100 mm)

Basic Market Capitalization

$353 million

Annual Dividend

$0.20 per share

Outstanding Debt

$109 million

Cash and Public Equity Holdings†

$169 million

Available Under Credit Revolver†

$85 million

4.9x 1.3x 2015 2016 2017 2018 2019 Net Debt to EBITDA x 1x 2x 3x 4x 5x 2014

Leverage Ratio Returns of Capital

Research Coverage

Richard Gray Craig Hutchison Brian MacArthur Carey MacRury Jacques Wortman Orest Wowkodaw

Capital Structure

Capital table values, return of capital and net debt to EBITDA numbers as of Dec 31 2019 except for market cap as of Mar 10, 2020. Cash and public equity holdings includes $22 million cash + $93 million LIORC equity value + $54.1 million project generation equity values

TSX:ALS | OTCQX:ATUSF 17 0.69x 0.84x 1.12x 1.64x 1.76x 2.19x

ALS OR SSL WPM RGLD FNV

8.7x 14.9x 15.2x 17.0x 18.9x 25.4x

ALS SSL OR RGLD WPM FNV

9.2x 14.4x 15.8x 19.4x 19.4x 27.5x

ALS OR SSL WPM RGLD FNV

EV/EBITDA (2020E) P/CF (2020E) P/NAV

Source S&P Capital IQ, Company Reports. March 11, 2020

Potential Re-rate Catalysts

• Increased recognition of sector leading per share business growth metrics, longest duration assets, decreasing

leverage and increasing returns of capital

• New renewables royalty investment announcements
• Coal to renewables strategy execution eliminates current negative impact on investment suitability perception
• Broader portfolio sustainability attributes become recognized by ESG focused investors
• Announcements by mine operators of resource growth and mine expansion (e.g. Chapada)

Valuation

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TSX:ALS | OTCQX:ATUSF

Thank You

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PRODUCING ROYALTIES DEVELOPMENT ROYALTIES PROJECT GENERATION PROJECT RENEWABLE ENERGY PORTFOLIO

CONTACT INFORMATION

Flora Wood Director, Investor Relations Phone: (416)346-9020 Email: Flora@altiusminerals.com