TSX.V : SIR January 2017 Corporate Presentation
Serengeti Resources Inc. (TSX-V: SIR) is a Canadian junior mineral exploration company focused on development of its Kwanika Copper-Gold project and exploration for Au-Cu porphyry deposits in the Quesnel Trough and Stikine Arch of British Columbia. www.serengetiresources.com | TSX.V: SIR 2
Forward Looking Statement - update THIS MANAGEMENT PRESENTATION (THE "PRESENTATION") WAS PREPARED AS A SUMMARY OVERVIEW ONLY OF THE CURRENT AFFAIRS OF SERENGETI RESOURCES INC.(”SERENGETI" OR THE "COMPANY") AND WAS NOT PREPARED FOR THE PURPOSE OF ASSISTING PROSPECTIVE INVESTORS IN MAKING A DECISION TO INVEST IN SERENGETI. SERENGETI DOES NOT MAKE ANY REPRESENTATION AS TO THE COMPLETENESS, TRUTH OR ACCURACY OF THE INFORMATION CONTAINED IN THIS PRESENTATION. THE RECIPIENT IS CAUTIONED, THEREFORE, THAT IT IS INAPPROPRIATE TO USE THIS PRESENTATION, OR ANY PORTION THEREOF, TO ASSIST IN MAKING A DECISION TO INVEST IN FORMATION.. CONFIDENTIALITY This Presentation is confidential and the contents are not to be reproduced or distributed to the public or the press. Securities legislation in all provinces and territories prohibits such unauthorized distribution of information. Each recipient of the information contained in this Presentation will treat such information in a confidential manner and will not, directly or indirectly, disclose or permit its affiliates or representatives to disclose such information to any other person or reproduce this Presentation in whole or in part, without the prior written consent of Formation. FORWARD-LOOKING INFORMATION - Update This presentation contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations as well as a comprehensive list of risk factors are disclosed in the Company’s documents filed from time to time via SEDAR (www.sedar.com)with the Canadian regulatory agencies to whose policies we are bound. Forward- looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates change, other than as required by law and readers are further advised not to place undue reliance on forward- looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward- looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Quality Assurance/Quality Control The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the Company's qualified person, David W. Moore, P. Geo., President and CEO of Serengeti Resources Inc. www.serengetiresources.com | TSX.V: SIR 3
Serengeti Opportunity ~$10M Market Cap, Exploration team with track record of discovery, Multiple projects having significant value addition potential in 2017 Kwanika Project PROVEN TEAM Advanced stage exploration - deposit identified plus ◆ exploration upside Strategic Partner - Daewoo Minerals PROSPECTIVE PROLIFIC ◆ PORTFOLIO DISTRICT Bullish sentiment on Copper/Gold ◆ Prospective Portfolio UDS - near Kemess Mine, M&A activity in the area, ◆ KWANIKA STRATEGIC high probability drill targets identified Cu-Au PARTNER PROJECT Milligan West - proximity to Mt. Milligan Mine – ◆ high probability drill targets identified www.serengetiresources.com | TSX.V: SIR 4
Serengeti Corporate Snapshot Shares Outstanding 71.5 M Warrants 13.9 M Options 7.4 M Fully Diluted (As of Jan 2017) 92.8 M Management, Insiders & Founders ~21% ownership Treasury* ~$1.2M Average Trading Volume (90day) 136,000 Share Price (SIR.V Jan 2017) $0.14 Market Capitalization $ ~10.0 M Management Board of Directors David Moore, P.Geo., President, CEO & Director George Tikkanen, B.Eng. Sheri Rempel, Chief Financial Officer Ian Brown, CA Pam White, Corporate Secretary Lewis Lawrick, B.Comm. Michael Thicke, P. Geo. * Financial information above is from the Company’s August 31 st , 2016 Financial Statements and are expressed in Canadian Dollars. To read the full financial statements, please visit the Company’s website at www.serengetiresources.com www.serengetiresources.com | TSX.V: SIR 5
Copper Waterton Global Resource Fund Ø Raises US$725 million for gold & copper deals Financial Post June 14 th , 2016 BHPB - Real Spark for Cu Demand = Renewable Energy Ø Lots of Cu needed for wind & solar power Ø By 2040, electricity from renewable will double to 46% Ø BHPB estimates a 4 million ton deficit by 2023 Bloomberg May 26 th , 2016 Copper Price Ø Sanford C. Berstein & Co. “The conclusion is unequivocal to us: The only way by which future output can be secured is via an appreciation in the commodity prices.” Globe & Mail June 29 th , 2016 www.serengetiresources.com | TSX.V: SIR 6
Copper Price Break-out? www.serengetiresources.com | TSX.V: SIR 7
Proven District ◆ Resurgence in BC Cu-Au mine development (e.g. New Afton, Mt. Milligan, Red Chris) ◆ Recent deep drilling identified extensive high grade zones (>1% CuEq) in a number of BC porphyry systems (e.g. KSM, Red Chris, New Afton) • Low risk, politically stable jurisdiction • Attractive tax & mining royalty regime (e.g. 32-35% combined rate) • Up to 30% government refund on qualifying exploration expenditures • Amongst lowest power costs in the world • Good infrastructure and favourable location with respect to Pacific Rim markets www.serengetiresources.com | TSX.V: SIR 8
Kwanika Opportunity 1. High-grade deposit 2. 2016 Resource update Ø Demonstrated increase of Cu, Au grade in Central Zone Ø Potential for further improvement in Au grade 3. Room to Grow Ø Central Zone remains open for expansion Ø Large deep geophysical target identified 4. Market Cap - $~10 Million Ø ~ $20 Million put into the ground Ø Daewoo Minerals Canada (DMC) to spend up to $8.2 M to earn 35% *Disclaimer: Mineral resources that are not mineral reserves do not have demonstrated economic viability www.serengetiresources.com | TSX.V: SIR 9
Daewoo (DMC) Joint Venture • DMC STAGED EARN-IN* Ø Year 1: Initial 5%, $1.2M ($400,000 WC, $800,000 project expenditure – PAID) Ø Year 2 & 3: Additional 30%, $7M expenditure PROPERTIES INCLUDED: Kwanika, Smoke-Kwanika East, Germansen, Valleau, Rottacker • OTHER TERMS: Ø SIR - operator plus 10% management fee (until 50% ownership) Ø SIR - 1% NSR if diluted below 50%, plus additional 0.5% NSR if diluted below 33.3%, subject to partial buyback rights; Ø SIR retains METC(30%) credits on qualifying expenditures on first $8.2M Ø SIR maintains rights to enter into streaming transactions on all metals subject to DMC having certain off-take rights Ø DMC has right to fund one additional property nominated by SIR, only if proceed to second option * see NR16-03, April 6 th , 2016 for full details www.serengetiresources.com | TSX.V: SIR 10
Kwanika Mineral Resource Quantity Cut -off Grade Contained Metal (x1000 Cu Eq Category Tonnes) (%) Cu Au Ag Cu Au Ag (%) (g/t) (g/t) (000's lb) (000's oz) (000's oz) Central Zone Pit Constrained Indicated 101,500 0.13 0.31 0.32 0.96 697,200 1,040 3,120 Inferred 31,900 0.13 0.17 0.14 0.59 118,500 140 610 Underground Indicated 29,700 0.27 0.34 0.36 1.05 222,300 350 1,010 Inferred 7,900 0.27 0.23 0.17 0.68 39,800 40 170 South Zone Inferred 33,300 0.13 0.26 0.08 1.64 191,400 80 1,760 * Pit constrained mineral resources are reported in relation to a conceptual Whittle pit shell and underground resources are reported within the area for potential underground development. Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All composites have been capped where appropriate. ** Pit constrained mineral resources are reported at a copper equivalent cut-off of 0.13% and underground resources are reported at 0.27%. The cut-offs are based on prices of US$3.00 per pound of copper, US$1,300 per ounce of gold, US$20 per ounce of silver, US$9.00 per lb of molybdenum and assumed recoveries of 89% for copper, 70% for gold, 75% for silver, and 60% for molybdenum. 11 www.serengetiresources.com | TSX.V: SIR
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