Corporate Presentation 11 December 2013 DISCLAIMER This - - PowerPoint PPT Presentation

Corporate Presentation

11 December 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 a 50% interest in the Itogon gold-silver project, Philippines,

an advanced exploration project in a major gold and copper mining district

• 100% ownership of the Sierra de las Minas gold project, La Rioja Province, Argentina;

exploration strategy to delineate multiple high grade, low tonnage deposits suitable for advancement to production on a relatively low capital, near term basis

• Holding 15% of issued shares (16% 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

• 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 is expected to pave the way for a transaction to take advantage of the tax losses

• Shares in issue 3,259,129,313; (fully diluted 3,403,021,819); £13M undiluted mkt. cap. at 0.4p;

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 a 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. >£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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ECR MINERALS PLC

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

(TSX-V: TGR) (“Tiger”) and Tiger’s subsidiary Cordillera Tiger Gold Resources, Inc. (“Cordillera Tiger”) with respect to the latter’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

the island of Luzon 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 totalling US$1.4 million, with all but US$100,000 subject to the success of the project

• 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 Itogon project is located in the Central Cordillera of Luzon, a gold and copper mining district of

global significance which hosts numerous sizable producing mines and former producers

• ECR’s earn-in has commenced effective 8 December 2013, and exploration can now commence

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ITOGON GOLD-SILVER PROJECT, PHILIPPINES

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

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

gold-silver system. At least 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 separate project area that is reported to have produced more

than 1 Moz gold historically. On the SW boundary of Cordillera Tiger’s project is another area of 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 in part 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 paved roads and unmade vehicle tracks

• 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 under a granted exploration permit (EP).

The EP covers approximately 330 hectares and was renewed for a second two year term commencing 1 October 2013. It is renewable again for up to two further two year terms following the expiry of the present term in 2015

• 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

• r financial or technical assistance agreement (in general terms a mining licence)

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PLANNED EXPLORATION AT THE ITOGON PROJECT

ECR MINERALS PLC

• Surface channel sampling is planned with the objective of verifying a selection of historical channel

sample runs. Historical surface channel sampling results include 50m at 3.23g/t Au, 17m at 1.76g/t Au, 23m at 2.32g/t Au, and 40m at 1.68g/t Au

• Stream sediment and soil sampling is proposed to cover the entirety of the tenement outside the

main prospect area, and is intended to help identify any extensions to the mineralised zone outlined by historical information and any other deposits that may exist. The main prospect area covers only a small part of the total 330 hectare area of the EP

• An exploratory tunnel into the lower part of the main prospect area is known to exist and may be
• f substantial length. It is planned that as far as possible this tunnel will be rehabilitated, mapped

and sampled in order to provide additional information as to the continuity and tenor of gold and silver grades at depth

• The verification channel sampling is expected to commence during December 2013 and to

conclude during January 2014. The tenement wide stream sediment and soil sampling and the rehabilitation of the exploratory tunnel are planned to commence in February 2014

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PLANNED EXPLORATION AT THE ITOGON PROJECT

ECR MINERALS PLC

• An extensive drilling programme has been designed for the Itogon project based on available

historical information and site inspections, and is aimed at intersecting all the currently interpreted sub-parallel quartz vein structures across the width of the main prospect area, which is characterised by a prominent ridge trending approximately northwest. The ridge is bound by steeply incised tributaries of the Danglay River

• The multiple sub-parallel veins strike along the ridge and have been mapped historically over a

length of 450m, with vein outcrop mapped a further 150m down the ridge at the Danglay River valley floor. Historical sampling has identified significant gold-silver mineralisation in the veins as well as their alteration haloes, in intervening quartz veinlet stockworks and in the host rock. The veins are indicated to be steeply dipping and the width of the mineralised zone has been mapped historically at up to 250m

• The drilling programme is aimed at establishing an open pit type resource along and below the

ridge as well as seeking to identify high grade underground type ore enclosed within the lower grade ore. The situation of the deposit within the ridge is expected to prove favourable for either an

• pen pit or underground mining scenario
• The results of the full 3,850m drilling programme are intended to enable the completion of a

resource estimate. Drilling is expected to commence during the first quarter of 2014 and will primarily be by reverse circulation (RC) percussion with some diamond drilling

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SIGNIFICANT INTERSECTIONS FROM HISTORICAL DRILLING AT ITOGON PROJECT BY BHP ENGINEERING

ECR MINERALS PLC

13 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 channel sampling results reported include:

50m at 3.23g/t Au, 17m at 1.76g/t Au, 23m at 2.32g/t Au and 40m at 1.68g/t Au

KEY TERMS OF ITOGON EARN-IN AGREEMENT

ECR MINERALS PLC

• Payments to Tiger:

–

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

–

• 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

• 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

• f the commencement date (subject to force majeure provisions); or

– ECR has not completed, for Cordillera Tiger, an initial drilling programme of a minimum 1,000m at the Itogon project within four months of the later of the date the earn-in commences and the date that any necessary government and regulatory permissions for the drilling programme are received; 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 14

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 – At least 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 – Potential for area consolidation

NB: The technical data regarding the Itogon project, including historical exploration results, in this presentation is extracted in part from a technical report by Jaime C. Zafra, dated 28 May 2011, filed by Tiger International Resources, Inc. and downloadable from SEDAR.com. Historical exploration results have not been verified by ECR

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• 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 auriferous mesothermal quartz veins

• 2011

surface sampling at El Abra prospect recorded grades inc. 80.78, 44.98, 39.74 g/t Au

• Numerous other prospects returned high grade

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

• Exploration approach taken by ECR has focused
• n high grade, smaller tonnage targets that might

prove suitable for early development, and has centred on the El Abra prospect

• Drilling plus surface and underground sampling

completed at El Abra in 2012

ECR MINERALS PLC

GOLD EXPLORATION IN ARGENTINA - SIERRA DE LAS MINAS PROJECT AREA

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Below: Drill rig at El Abra prospect, April 2012

• The El Abra vein is known to occur for a strike

length of 500m, with widths to 3m but generally in the order of 0.5-1.5m

Sierra de las Minas gold project area

ARGENTINA - ORIENTATION

ECR MINERALS PLC

• Drilling programme 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 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 programme 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

• f 86-99% were achieved using conventional methods (gravity

concentration and cyanide leach)

• A number of other prospects have undergone initial surface

sampling and returned high grades; Maestro Agüero prospect 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 prospect, September 2012

ECR MINERALS PLC

• In late 2013 ECR carried out a detailed review and reinterpretation of

the exploration results obtained from Sierra de las Minas to date. The outcome of the review was deemed sufficiently encouraging for ECR to recommence significant exploration activity

• Work will focus not just on El Abra but also on selected other

prospects including Maestro Aguerro, VN2.5, Pits I-III, Casas Viejas and Corral-Carmincita. These other prospects will undergo systematic sampling of rock and soil material, followed by trenching and, if warranted, drilling

• At El Abra, initial work will consist of trenching and the assay of

further drill core samples from the Company’s 2012 drilling

• programme. Further drilling will follow, subject to the results of the

initial programme

• A regional stream sediment sampling programme will also be

carried out with the objective of identifying new prospects within the Sierra de las Minas project area, which consists of numerous exploration and exploitation licences held by ECR’s Argentine subsidiary

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2013 REVIEW & REINTERPRETATION

Above: Historical workings at El Abra prospect

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 August 2012 and definitive feasibility study (DFS) filed

November 2013 with mine permitting underway

• THEMAC began gold exploration activities nearby the Copper Flat deposit in late 2012
• Kevin Maloney, chairman of THEMAC, controls approximately 67% of the THEMAC’s issued shares and

has a fully diluted stake of around 68%. THEMAC received C$10.2M in equity funding from a company controlled by Kevin Maloney in 2010, and via Tulla Resources, Kevin Maloney has extended to THEMAC a loan facility. The amount due from THEMAC to Tulla Resources under the loan facility, including interest, was approximately C$37.5 million as at 30 September 2013

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ECR MINERALS PLC

COPPER FLAT PROJECT, NEW MEXICO, USA

21 NI43-101 reserves 113,084,000 proven & probable (cut-off grade 0.30% Cu, 0.009% Mo US$12.75 to 0.003 oz/t Au, 0.06 oz/t Ag US$6.11 NSR/st variable by year) Contained metal 675,820,000 lbs Cu in reserves 20,563,000 lbs Mo 340,000 oz Au 6,889,000 oz Ag Average annual 56,600,000 lbs Cu payable production 20,000 oz Au Initial capital US$372M Base case financials IRR 20%, NPV US$187M 8% discount rate payback 3.6 years Base case metal US$3/lb Cu, US$9.50/lb Mo prices US$1,350/oz Au, US$22/oz Ag Copper Flat mine in 1982 (above) and 2010 (below) NB: Information above is per 21 November 2013 news release by THEMAC

ECR MINERALS PLC

OUTLOOK

• The ECR management team is focused on creating shareholder value through the operation of

mineral projects

• ECR’s current corporate strategy can be summed up as follows:

– Exploration at the Itogon project in the Philippines in line with earn-in and joint venture agreement, with ultimate objective of demonstrating the project to be viable and bringing it into production – Exploration at the Sierra de las Minas gold project in Argentina, where the strategy is to delineate multiple high grade, low tonnage deposits – Sierra de las Minas may offer a near term production opportunity requiring relatively low capital to complement the more substantive longer term production opportunity that may be realised at Itogon – Ongoing review of ECR’s other interests including stake in THEMAC and ownership of Mercator Gold Australia in order to determine how best to maximise their value – In-depth investigation of additional project opportunities

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