Corporate Presentation 1 July 2013 DISCLAIMER This presentation - - PowerPoint PPT Presentation

Corporate Presentation

1 July 2013

• This presentation does not constitute a recommendation to buy or sell securities of ECR Minerals plc

(“ECR” or the “Company”) or any other securities mentioned herein. This presentation does not constitute a prospectus or an admission document relating to ECR, nor does it constitute or form part of any offer or invitation to purchase, sell or subscribe for any securities in ECR, nor shall this presentation or any part of it, or the fact of its distribution, form the basis of or be relied on in connection with any contract therefor or for any purpose whatsoever.

• No reliance should be placed on the information contained in this presentation or on its completeness.

No representation or warranty, express or implied, is given by or on behalf of ECR or any directors, partners, officers, employees, advisers or any other persons as to the accuracy, fairness or sufficiency of the information or opinions contained in this presentation. Save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in such information or opinions.

• This presentation may contain forward-looking statements relating to future events or to the

anticipated performance of ECR or other companies. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company or any other company to be materially different from any anticipated performance expressed or implied by the forward-looking statements.

ECR MINERALS PLC

DISCLAIMER

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ECR MINERALS PLC

ABOUT ECR MINERALS (AIM: ECR)

• Exclusive right and option to earn 50% interest in Itogon gold-silver project, Philippines, an

advanced exploration project in a major gold and copper mining district

• Holding of 15.7% of issued shares (16.9% fully diluted) in THEMAC Resources Group (TSX-V:

MAC), which is focused on the Copper Flat copper-molybdenum-gold-silver porphyry project in New Mexico, USA; holding consists of shares and warrants

• 100% ownership of the Sierra de las Minas gold project, Argentina; joint venture partner or

purchaser currently being sought

• Australian subsidiary Mercator Gold Australia (MGA) with around A$77M of tax losses. MGA

remains subject to a deed of company administration (DOCA), conclusion of which will pave the way for a transaction to take advantage of MGA’s tax losses

• Management costs much reduced and board restructured during 2012 and early 2013; non core

assets sold (including interest in ACS Asia manufacturing business)

• Shares in issue 2,172,759,751; (fully diluted 2,265,815,893); £2.1M undiluted mkt. cap. at 0.1p; shares

traded as AIM: ECR and ADRs as OTC: MTGDY

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Paul Johnson, Non-Executive Chairman

• More than 20 years’ investing experience and co-founder of MiningMaven, an investor communications service

focused on the natural resources sector; appointed director of ECR in May 2012 and chairman end January 2013

• Chartered Accountant, Associate of the Chartered Institute of Loss Adjusters and of the Chartered Insurance

Institute, and a Member of the Business Continuity Institute. Holder of a BSc (Hons) in Management Science from UMIST School of Management

Stephen Clayson, Director and CEO

• Diverse background in mineral sector since 2004, formerly Corporate Development Manager for Kryso Resources

(AIM: KYS, market cap. approx. £100M, multi Moz gold resource and reserve base in Tajikistan); undertook extensive consultancy for Peninsular Gold (AIM: PGL, gold producer in Malaysia) from 2006-2008

• Became CFO of ECR September 2010 and appointed a director April 2011; appointed CEO end January 2013

Richard (Dick) Watts, Non-Executive Technical Director

• Currently a Principal Mining Consultant for Royal HaskoningDHV (formerly Turgis Mining Consultants). Track

record of senior operational roles on gold, copper and coal mines in Africa (South Africa and Zambia), Russia and Central Asia (Kazakhstan and Uzbekistan); appointed a director of ECR in May 2012

• Fellow of the South African Institute of Mining & Metallurgy and holder of a B.Eng (Mining) from the University of

Sheffield along with a Mine Manager’s Certificate (South Africa) and a First Class Certificate of Competency (UK mine manager’s qualification)

BOARD OF DIRECTORS

ECR MINERALS PLC

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EXCLUSIVE RIGHT AND OPTION TO EARN 50% INTEREST IN ITOGON GOLD-SILVER PROJECT, PHILIPPINES

ECR MINERALS PLC

• ECR has entered into an earn-in and joint venture agreement with Tiger International Resources Inc.

(TSX-V: TGR) and Tiger’s subsidiary Cordillera Tiger Gold Resources Inc. with respect to Cordillera Tiger’s 100% owned Itogon gold-silver project in the Philippines

• The Itogon project is an advanced exploration project located in a gold and copper mining district on

in the north of the Philippines, and benefits from an extensive historical dataset

• ECR has the exclusive right and option to earn a 50% interest in the Itogon project by obtaining, for

Cordillera Tiger, a mining licence in respect of the project within 5 years of the commencement of the earn-in and by making certain staged payments to Tiger

• ECR will fund all expenditure required for Cordillera Tiger to obtain a mining licence, and through

Cordillera Tiger, ECR will be the operator of the project; after a mining licence is obtained ECR and Tiger would fund development pro rata, or the non-funding partner would be diluted

• The agreement and the commencement of the earn-in are subject, inter alia, to due diligence by ECR
• The Itogon project is located on the island of Luzon in the north of the Philippines, some 14km from the

city of Baguio in the Central Cordillera. The Central Cordillera of Luzon is a gold and copper mining district of global significance, and hosts numerous sizable producing mines and former producers

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ITOGON GOLD-SILVER PROJECT, PHILIPPINES ORIENTATION & DISTRICT GEOLOGY

ITOGON PROJECT ITOGON PROJECT

* The figures presented on this slide are sourced from a third party report and may not be accurate or complete. They should therefore not be relied upon

ITOGON PROJECT PREVIOUS WORK, EXPLORATION TARGET & NEARBY DEPOSITS

ECR MINERALS PLC

• The Itogon project has an extensive database of previous work, including drilling, metallurgical testwork

and surface sampling. This work enabled a number of historical resource estimates to be completed by former operators, as well as a scoping level study on a potential heap leach operation. All historical work was completed by reputable international companies including BHP Engineering and Kvaerner Davy

• The exploration target in the Itogon project area is a steeply dipping wide hydrothermal or epithermal

gold-silver system. Five gold and silver bearing quartz veins have been mapped and are indicated to be continuous or semi continuous and steeply dipping (near vertical). The five sub parallel vein sets are recognised as occurring within a zone up to 250m wide and up to 600m long

• A technical report on the Itogon project filed by Tiger in 2011 stated an overall resource target for the

project “of the order of 0.5 to 1 million ounces of gold”. The author of the report, Jaime C. Zafra, also expressed the opinion that “a potential self-draining open pit on the main vein could host in the order of 300,000oz gold”

• On the NE boundary of the Itogon project is a project area controlled by Indophil Resources (ASX: IRN).

The area is reported by Indophil to have produced 1.22 million oz of gold historically. On the SW boundary of Cordillera Tiger’s project is another area that has hosted significant past gold production

• Metallurgical testwork conducted by Kappes, Cassiday & Associates (and others) indicates that the

mineralisation at Itogon is amenable to cyanide leaching

* The technical data provided in this presentation with respect to the Itogon project is sourced from a third party report, and may not be accurate or complete. It should therefore not be relied upon. All significant exploration and evaluation work in relation to the report was completed in the late 1990s or earlier, and the historical resource estimates are non compliant

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IMAGES OF ITOGON PROJECT AREA

IMAGES OF ITOGON PROJECT AREA

ITOGON PROJECT TENURE & ACCESS

ECR MINERALS PLC

• Grid power is accessible close to the Itogon project and water is available within the project area from a

river and springs. The project area is accessible by road. The climate of northern Luzon is tropical, with high humidity and warm year round temperatures, and a monsoon season from June to October. It is possible to operate at the Itogon project year round. The project area consists of moderate to rugged terrain with elevations ranging from 1,100m to 1,500m, vegetated by second growth pines and mountain shrubs

• The project is held by Cordillera Tiger, a 100% beneficially owned subsidiary of Tiger incorporated in the

Philippines, under a granted exploration permit (EP). The EP covers approximately 330 hectares and was granted on 15 February 2011 for an initial period of two years. The permit is renewable for periods of 2 years up to a maximum of 6 years. After 6 years, the permit may be renewed for a further 2 years for the purpose of completing feasibility studies and making application for a mining licence. Tiger confirms that immediately prior to 15 February 2013 Cordillera Tiger submitted in good order an application for a two year extension to the EP. Confirmation of the extension is awaited

• Under Philippine law the holder of an EP who determines the commercial viability of a mining project

may, within the term of the EP, file with the relevant government authorities a declaration of mining project feasibility accompanied by a work program for development. The approval of such filing and compliance with other requirements under Philippine law and regulation entitle the holder to an exclusive right to a mineral production sharing agreement or other mineral agreements or financial or technical assistance agreement (in general terms a mining licence)

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SIGNIFICANT INTERSECTIONS FROM HISTORICAL DRILLING AT ITOGON PROJECT BY BHP ENGINEERING

ECR MINERALS PLC

11 Hole From (m) To (m) Interval (m) Au (g/t) Ag (g/t) RC-3 4 4 2.55 6.4 RC-5 16 16 1 35.6 14.4 RC-6 10 10 7.33 9.5 inc. 1 3 2 26.01 10.3 inc. 31 32 1 14.8 64.0 RC-9 1 32 31 1.37 5.6 inc. 4 6 2 5.23 17.5 inc. 26 27 1 5.07 6.4 RC-10 27 40 13 1.36 8.8 RC-11 34 34 1.7 9.7 inc. 31 32 1 9.03 25.4 RC-13 18 34 16 1.33 8.9 inc. 24 25 1 9.4 71.2 RC-17 24 31 7 8.5 50.2 inc. 27 28 1 8.36 53.7 inc. 29 30 1 45.56 248.5

• Significant historical surface trenching results reported include:

50m at 3.23g/t Au, 17m at 17.6g/t Au, 23m at 2.32g/t Au and 40m at 1.68g/t Au

SUMMARY TERMS OF ITOGON EARN-IN AGREEMENT

ECR MINERALS PLC

• Earn-in agreement is subject to:

– due diligence by ECR; and – if required, to approval by the TSX Venture Exchange – However even if TSX Venture Exchange approval is required, Tiger may elect to proceed in its absence – ECR will complete its due diligence within 90 days of the date of the agreement (26 April 2013)

• The period during which ECR may exercise its right to earn a 50% interest in the Itogon project will run

for 5 years commencing on the later of:

– the date Cordillera Tiger receives confirmation that the Itogon project EP has been extended a further two years; – the date ECR notifies Tiger that ECR has completed due diligence to its satisfaction; and – the date on which, if required, TSX Venture Exchange approval of the earn-in and joint venture agreement is received by Tiger or Tiger elects to proceed without such approval

• Payments to Tiger:

–

• n commencement of the earn-in ECR shall pay to Tiger US$100,000 in cash

–

• n completion by ECR, for Cordillera Tiger, of a mineral resource estimate or estimates in respect of the Itogon project

exceeding 200,000 ounces contained gold equivalent and compliant with CIM (Canadian Institute of Mining, Metallurgy & Petroleum) standards, ECR shall pay to Tiger US$300,000 in cash –

• n a mining licence being obtained by ECR, for Cordillera Tiger, in respect of the Itogon project, ECR shall pay to Tiger

US$500,000 in cash –

• n commencement of commercial production at the Itogon project, ECR shall pay to Tiger US$500,000 in cash

– Total potential payments US$1.4 million 12

SUMMARY TERMS OF ITOGON EARN-IN AGREEMENT (ii)

ECR MINERALS PLC

• ECR’s earn-in option will terminate if:

– ECR has not obtained, for Cordillera Tiger, a mining licence in respect of the Itogon project by the fifth anniversary of the commencement date (subject to force majeure provisions); or – ECR has not completed, for Cordillera Tiger, an initial drilling program of a minimum 1,000m at the Itogon project by the end of calendar year 2013 (subject the earn-in having commenced and to all necessary government and regulatory permissions being received in good time); or – if ECR fails to contribute minimum expenditure in respect of the Itogon project of US$200,000 during each year of the earn-in, or as required under the EP and otherwise by law or regulation to maintain Cordillera Tiger’s title to the Itogon project in good standing, whichever is greater; or – ECR elects not to exercise the earn-in option

• If the earn-in option is terminated before it has been exercised and as at the date of termination ECR has

contributed a minimum of US$500,000 of expenditure to the Itogon project and completed a mineral resource estimate compliant with CIM standards, ECR shall have acquired a 25% interest in the project

• ECR and Tiger have declared an area of interest extending 50km in all directions from the boundaries of the

Itogon project. If either ECR or Tiger wishes to acquire any additional mineral project within the area of interest, it is obligated to offer the other party the opportunity to participate in and fund on a 50% basis such acquisition and the subsequent development of the relevant project

• The technical data regarding the Itogon project, including historical exploration results, in this presentation

is extracted from a technical report by Jaime C. Zafra, dated 28 May 2011, filed by Tiger and downloadable from SEDAR.com. Historical exploration results have not been verified by ECR

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WHY THE PHILIPPINES? WHY THE ITOGON PROJECT?

ECR MINERALS PLC

• Why the Philippines?

– Mining country with skilled labour and services available – Low cost operating environment – Recent gold mining success stories – High level of industry interest

• Why the Itogon project?

– Significant historical data available, including results of drilling and metallurgical testwork – Historical testwork indicates that the mineralisation is amenable to cyanide leaching – Located in major gold and copper mining district – Project area borders two gold mines with significant historical production records – Five continuous or semi continuous, sub parallel, steeply dipping gold and silver bearing quartz veins identified at surface within a zone up to 250m wide and up to 600m long – Good road access, with grid power and water in the vicinity and on the project respectively – Overall resource target of the order of 0.5 to 1 million oz gold with open pit potential – Granted exploration permit with renewal awaited – Potential for area consolidation

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THEMAC RESOURCES GROUP (TSX-V: MAC) - DEVELOPMENT OF THE COPPER FLAT PROJECT

ECR MINERALS PLC

• THEMAC has 100% ownership of the Copper Flat project, a former producing mine with major civil

infrastructure still in place located 150 miles south of Albuquerque, largest city in New Mexico

• Copper Flat is a copper-molybdenum-gold-silver porphyry deposit with a higher grade breccia core
• Civil infrastructure in place includes tailings dam, largely pre-stripped open pit, power lines, water well

field and pipeline, access roads, diversion channels and building foundations

• NI43-101 prefeasibility study (PFS) filed in August 2012 with definitive feasibility study (DFS) and mine

permitting underway

• THEMAC began gold exploration activities nearby the Copper Flat deposit in late 2012
• Kevin Maloney, chairman of THEMAC, controls approximately 69% of the THEMAC’s issued shares and

has a fully diluted stake of around 69%. Via Tulla Resources, Kevin Maloney has extended to THEMAC a loan facility of up to C$30M. THEMAC also received C$10.2M in equity funding from a company controlled by Kevin Maloney in 2010

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ECR MINERALS PLC

COPPER FLAT PROJECT, NEW MEXICO, USA

16 NI43-101 reserves 98.118Mst proven & probable (cut-off grade 0.31% Cu, 0.009% Mo US$7.25 NSR/st) 0.003 oz/t Au, 0.07 oz/t Ag Contained metal 608,533,000 lbs Cu in reserves 18,062,000 lbs Mo 295,000 oz Au 6,478,000 oz Ag Average annual 50,760,000 lbs Cu payable production 1,010,000 lbs Mo 12,750 oz Au 455,390 oz Ag Initial capital US$297.7M Base case financials IRR 26.7%, NPV US$242.3M at 8% discount rate Base case metal US$3/lb Cu, US$12/lb Mo prices US$1,350/oz Au, US$25/oz Ag Copper Flat mine in 1982 (above) and 2010 (below) NB: Information above is per August 2012 PFS

• ECR has 100% ownership of the Sierra de las

Minas gold project in La Rioja Province, northern central Argentina

• Project area contains numerous historical small

scale gold mining areas

• Primary style of mineralisation small, steeply

dipping mesothermal quartz vein deposits

• 2011

surface sampling at El Abra prospect recorded grades inc. 80.78, 44.98, 39.74 g/t Au with mineralised widths >1m

• Numerous other prospects returned high grade

gold values (>5g/t Au) from surface sampling

• Exploration approach taken by ECR has focused on

high grade, smaller tonnage targets that might prove suitable for early development, and has centred on the El Abra prospect

ECR MINERALS PLC

GOLD EXPLORATION IN ARGENTINA - SIERRA DE LAS MINAS PROJECT AREA

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• Drilling

plus surface and underground sampling completed at El Abra in 2012; results inconclusive

• Mineralisation at El Abra is complex with

irregular, discontinuous veins and erratic grades; coarse gold is a factor

• Joint venture partner or purchaser now

being sought Right: Drill rig at El Abra, April 2012

ECR MINERALS PLC

• Drilling program completed by ECR at El Abra in May 2012; 13 holes totalling

approximately 1,100m, confirming extension of high grade mineralisation to depth over strike length of 500m

• 3 ECR drill holes intersected very high grade gold mineralisation and 4 more

intersected mineralisation >1g/t Au; best intersection was 3.9m downhole at 11.6g/t Au in hole 9, including 0.2m at 109.1g/t Au

• An underground sampling program taking advantage of the numerous

historical shafts, adits and cross-cuts present at El Abra was completed in September 2012; assays ranged from <1 g/t Au to as high as 69.1 g/t Au

• Surficial samples from El Abra and other prospects have undergone initial

metallurgical testwork with positive results; gold recoveries of 86-99% were achieved using conventional methods (gravity concentration and cyanide leach)

• Additional exploration may be justified at Maestro Agüero and at a number of
• ther prospects that have undergone initial surface sampling and returned high

grades; Maestro Agüero is characterised by a 200m long, steeply dipping quartz vein 1-2m wide

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2012 EXPLORATION AT EL ABRA GOLD PROSPECT

Above: Underground within historical workings at El Abra, September 2012

ECR MINERALS PLC

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• Complete due diligence on Itogon gold-silver project in the Philippines and continue to liaise with

authorities there with regard to renewal of the exploration permit (EP) pertaining to the project for a second 2 year term; the renewal should add significant value to ECR’s rights in relation to Itogon

• Subject to commencement of Itogon earn-in, make initial payment to Tiger and commence work
• n the project with ECR as operator
• Evaluate area consolidation opportunities in context of Itogon project along with potentially

complementary project opportunities elsewhere in the Asia Pacific region, and seek to attract a strategic investor

• Procure a purchaser or joint venture partner for Sierra de las Minas gold project in Argentina; ECR

will seek to obtain cash or tradeable securities as part of any transaction that may be agreed

• Liaise with the administrators of Mercator Gold Australia (MGA) with a view to seeing

administration concluded, paving the way for a transaction to take advantage of MGA’s tax losses

• Continue to monetise the Company’s stake in THEMAC

IMMEDIATE OBJECTIVES OF ECR