Creating value by advancing towards a commercially viable - PowerPoint PPT Presentation

Creating value by advancing towards a commercially viable Copper-Gold Porphyry deposit at the Miner Mountain Project in southern British Columbia, Canada 1

CAUTIONARY DISCLAIMER: FORWARD LOOKING STATEMENTS Certain statements contained herein regarding the Company and its operations constitute “forward - looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations for future performance, are “forward - looking statements.” We caution you that such “forward - looking statements” involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company’s filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Dr. Selina Tribe is the Qualified Person for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements. 2

WHY COPPER-GOLD?

EXPECTATIONS FOR COPPER “Sustained growth in copper demand is expected to continue because copper is essential to economic activity and even more so to the modern technological society.” (International Copper Study Group ) - Porphyry copper deposits are the Tier One assets of the mining industry. - They provide the majority of mined copper and significant quantities of gold. - Life-of-Mine revenues in the tens of billions of dollars and low costs of production make porphyry copper assets highly sought-after and extremely valuable. - Strong copper demand, forecasts of high rates of growth of copper consumption, aging major mines with declining grades and production, greatly diminishing rates of discovery and reserve replacement have resulted in increased M&A of copper assets.

EXPECTATIONS FOR COPPER

COPPER FUNDAMENTALS Strong demand growth related to economic … meets historically low, new project pipeline growth and shifting technologies …

COPPER FUNDAMENTALS: DECLINING EXPLORATION SUCCESS, STRONG PRICE FORECAST … and historically low rates of discovery and reserve replacement, despite increased exploration spending. “Prepare for a decade of Dr. Copper on steroids,” (Max Layton and Tracy Liao, Citigroup, July 17, 2018 Research Note)

Selected COPPER M&A 2006-2010 • 2006 Pubco acquisition Regalito Chile 638,000,000 0.43% Cu Pan Pacific acquires Regalito $137 million • 2007 Pubco acquisition El Galeno Peru 863,000,000 0.474% Cu, 0.01 Chinan Minmetals buys Northern Peru Copper $455 million • 2007 Privco acquisition Rio Blanco Peru 1,257,000,000 0.57 Cu% , 0.023 Mo, Monterrico bought by Zijin $186 million • 2007 Pubco acquisition Quebrada Blanca Chile 1,090,000,000 0.72% Cu Teck acquired Aur Resources $4,100 million • 2007 Pubco acquisition Toromocho Peru 2,152,000,000 0.461% Cu Chinalco acquires Peru Copper $840 million • 2007 Pubco acquisition Mirador Ecuador 890,000,000 0.56 % Cu, 0.15 Au, 1.05 Ag Tongguan Investment acquires Corriente $650 million • 2008 Pubco acquisition Bahuerachi Mexico 605,000,000 0.397% Cu, 0.008 Mo, 0.029 Au, 3.91 Ag Jinchuan acquisition of Tyler Resources $214 million • 2008 Asset acquisition Valle Grande Panama 1,218,000,000 0.5% Cu, .007% Mo, 0.08 Au Inmet acquiers PTQ's 26% $336 million • 2008 Pubco acquisition Relincho Chile 498,000,000 0.47% Cu, 0.023% Mo and inferred Teck acquires Global Copper $425 million • 2009 Asset acquisition Twin Buttes United States 700,000,000 0.43% Cu , 0.023 Mo, Freeport purchased from Park Corp $200 million • 2010 Joint Venture Ajax Canada 426,000,000 0.29% Cu, 0.19 g/T Au 80/20 JV with KGHM $72 million + financing commitment • 2010 Pubco acquisition Xietongmen China 220,000,000 0.43% Cu, 0.61 Au, 3.87 Ag Jinchuan buys Continental $432 million • 2010 Pubco acquisition Haquira Panama 500,000,000 0.64 Cu, 0.015 Mo, 0.045 Au. 1.8 Ag Antares acquired by FQ $460 million • 2010 Pubco merger Sierra Gorda Chile 1,274,000,000 0.353% Cu, 0.016 Mo, 0.048 Au Quadra and FNX merger $1,500 million 8

Selected COPPER M&A 2011-2016 • 2011 Pubco acquisition Santo Domingo Chile 513,000,000 0.30%, 0.04, 30% Fe Capstone acquires Far West $725 million • 2011 Pubco acquisition Altar Argentina 802,000,000 0.42% Cu, 0.059 Au Stillwater acquiers Perigrine $487 million • 2011 Pubco acquisition Constancia Peru 393,000,000 0.42%, 0.011 Mo, 0.05 Au, 3.72 Ag Hudbay acquiers Norsemont $363 million • 2011 Pubco acquisition Sierra Gorda Chile 1,274,000,000 0.353% Cu, 0.016 Mo, 0.048 Au KGHM acquisition of Quadra FNX $3,500 million • 2011 Pubco acquisition Mt. Milligan Canada 700,000,000 0.18%, 0.3 Thompson Creek acquires Terrane Metals $650 million • 2012 Asset acquisition Far Southeast-Bato Tabio Philippines 650,000,000 0.65 % Cu, 1.3 Au, .93 Ag Gold Fields acquires 40% $220 million • 2013 Pubco acquisition Cobre Panama Panama 272,000,000 0.37% Cu, .006% Mo, 0.05 Au, 1.32 Ag First Quantum acquisition of Inmet $5,100 million • 2013 Asset acquisition Castle Dome Arizona 1,438,000,000 0.33% Cu, 0.055 Au. 0.34, 2.2 Capstone Acquiers Pinto Valley $650 million • 2014 Asset acquisition Koksai Kazakhstan 701,000,000 0.44%, 0.049 Mo, 0.12 Au and 1.24 Ag Kaz minerals Acquire deposit $260 million • 2014 Pubco acquisition Rosemont USA 1,264,000,000 0.36%, .011 Mo, 0.098 Ag Hudbay Acquires Augusta $555 million • 2014 Pubco acquisition Taca Taca Argentina 2,170,000,000 0.44%, .08 Au, .013% Mo FM acquiers Lumina $470 million • 2014 Asset acquisition Las Bambas Peru 1,700,000,000 0.613% Cu, 0.16 Mo, 0.044 Au and 3.03 Ag $7 Billion acquisition from Xtrata $7,000 million • 2016 Acquisition of minority interest Zafrinal Peru 500,000,000 0.36% Cu and 0.07 Au Teck buys AQM shs not already owned $116 million 9

Selected COPPER M&A 2017-2019 • 2017 Pubco acquisition Cloncurry Australia 287,000,00 0.6% Cu Copper Mountain to acquire $93 million • 2017 Acquisition of 50% Cerro Casale Chile 1,500,000,000 0.22-.12%, 0.6-0.35 g/t Au Goldcorp acquiers 50% >$500 million • 2017 Pubco acquisition Caspiche Chile 1,400,000,000 0.19%, 0.51g/t Au Goldcorp acquiers 100% of Exeter $247 million • 2018 Asset acquisition Peschanka (Baimskaya) Russia 1,400,000,000 0.51, 0.03, 0.3,1.4 Kaz Minerals acquires from privco $900 million • 2018 Acquisition of minority interest Quellaveco Peru 974,000,000 0.65, 0.021, 0, 2 Mitsubishi acquires additional 21.9% $600 million • 2018 Asset acquisition Cerro Colorado Chile n.a. EMR Cap buys mine from BHP $230 million • 2018 Acquisition of minority interest Quebrada Blanca Chile n.a. Teck ups stake by 13.5% to 90% $162 million • 2018 Acquisition of 51% Pulang Xuejiping 1,229,000,000 0.34%, 0.01 % Mo. 0.18 Au, 1.6 Ag Yunnan Copper acquires 51% 51% for $227 million • 2018 Government auction Michiquillay Peru 1,100,000,000 0.629% Cu, Au, 0.022, 0.14, 0.06 Gov. auction, Southern Copper to acquire $400 million • 2018 Pubco acquisition Timok Serbia 1,800,000,000 .86 % Cu, .18 Au Zinjin buys Nevsun $1,800 million • 2018 Government auction Bor Serbia n.a. 0.84% Cu, .39 Au Zinjin buys Bor Complex $1,460 million for 65% • 2108 Acquisition of 51% stake Grasberg PPG Inalum buys Freeport's and Rio's 51% $3,850 million • 2019 Acquisition 70% stake Red Chris Newcrest buys 70% Imperials Metals $806 million 10

Copper M&A 2006-2018 - Valuation Benchmarks Potential for increased M&A (RBC Capital Markets) • We forecast a need for 5Mt of new copper supply by 2028 (25% of current production as existing production declines and demand continues to grow steadily. We also expect M&A to grow steadily as copper prices rises over the next few years. • We believe M&A could pick up in the copper space alongside rising prices. The copper producers in our coverage universe are trading at $14,260 per tonne of annual copper production while the cost to build is estimated to be $14,444/t on average suggesting it may make sense to buy production to get immediate cash flow and avoid execution risk of building a new project. Junior copper explorers have received renewed attention and the base metals juniors we track are now trading at $0.03/lb (EV/lb CuEq M&I+I) which remains below the average transaction price since 2010 of $0.07/lb. 11