Developing Silver and Gold Resources in Mexico November 24, 2017 1 - - PowerPoint PPT Presentation

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November 24, 2017

Developing Silver and Gold Resources in Mexico

Forward Looking Statement

November 29, 2017 2

• This presentation is prepared by Monarca Minerals Inc. (MMN – TSX.V) Management of Monarca are solely

responsible for content and format. Management has compiled this presentation from industry information and 43- 101 reports and news releases with specific underlying Qualified Persons as set out in the Releases and reports. Industry Information has been compiled from publically available sources and may not be complete, up to date or reliable.

• This presentation contains forward-looking statements within the meaning of Canadian and U.S. securities laws. Such

forward looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties include, but are not limited to, the Company’s ability to raise capital to fund development and exploration, changes in general economic conditions or financial markets, changes in metal prices, general cost increases, litigation, legislative, environment and other judicial, regulatory, political, competitive developments in Mexico, technological and

• perational difficulties or inability to obtain permits

encountered in connection with The Company’s exploration activities, community and labour relations matters and changes in foreign exchange rates, all of which are described in more detail in the Company’s filings with the Canadian Securities Regulators.

• This presentation is for information purposes only and is not a solicitation. Please contact the Company for complete

information and consult a registered investment representative / advisor prior to making any investment decision.

• Investors are urged to consider closely the disclosure in Monarca’s annual and quarterly reports and other public

filings, accessible through the Internet at www.sedar.com

• Although the Company believes its properties have promising potential, its properties are in the early stages of
• exploration. None have yet been shown to contain proven or probable mineral reserves. There can be no assurance

that such reserves will be identified on any property, or that, if identified, any mineralization may be economically extracted.

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• Tejamen project has a NI 43-101 inferred resource
• f 28.7 million troy ounces of Ag (15ppm cutoff),

contained in 19.8 million tonnes @ 45 g/t Ag

• San Lucas provides significant exploration potential

for Ag, Au and base metals, with drillhole results up to 527ppm Ag

• El Sol provides significant exploration potential for

Ag, Au and base metals, with surface mine dump assays up to 358ppm Ag, 1.95ppm Au, 19.6% Zn and 22.6% Pb

• San Jose Recently signed a LOI, this 5,580-hectare property in Chihuahua has excellent indications
• f multi-element mineralization associated with skarn, gossan and altered intrusive rocks
• All projects are in mining and capital-friendly jurisdiction of Durango and Chihuahua
• Experienced board and management team

Company Overview

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Focus on the exploration and development of silver and gold projects along the highly productive mineralized belt that made Mexico the largest silver-producing country in the world

San Lucas Au/Ag Vein

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FRANK HOGEL, CHAIRMAN & DIRECTOR:

• Mr. Hogel currently serves as Chief Executive Officer of Peter Beck Performance Funds and sits on the advisory board of Concept Capital

Management Ltd. He has an MBA degree from the University of Nurtingen, Germany.

ALLAN FOLK, INTERIM CEO & DIRECTOR:

• Mr. Folk has spent 30 years in the Investment Industry. During that period he has helped finance numerous junior mining companies. He is

Chairman of Atlanta Gold Inc., Director of Bonterra Resources Inc. and Vice President of Brant Securities. He received a BBA from the University of Wisconsin in1972.

CARLOS ESPINOSA – PRESIDENT & DIRECTOR Carlos Espinosa, has 25 years of experience with international business development, Canadian capital markets and commercial

• banking. He is former Head of Business Development, Global Mining at the TSX and TSXV and former Deputy Trade

Commissioner of Mexico, in Toronto. He holds an MBA from Kellogg School of Management at Northwestern University and a BBA from Mexico and is fluent in Spanish. JAMES McVICAR – DIRECTOR

• Mr. McVicar is a senior partner of Peterson McVicar LLP in Toronto with 20 years of experience focused in corporate finance and mining
• law. He previously spent close to three years as legal counsel in the Corporate Finance Branch of the Ontario Securities Commission (OSC)

and later in his career was appointed to the OSC's Securities Advisory Committee for a 2 year term.

BRUCE REILLY – CFO

• Mr. Reilly is a graduate of the University of Toronto with a Bachelor of Commerce degree, and is a Chartered Accountant (1985).

For the past twenty plus years, Bruce Reilly has successfully developed and managed a chartered professional accounting firm.

• Mr. Reilly also sits on the Board of Platinex Inc. (CSE "PTX") and iSign Media Solutions Inc. (TSX-V “ISD”).

MICHAEL R. SMITH – EXECUTIVE VP – EXPLORATION & QUALIFIED PERSON

• Mr. Smith has 38 years of experience in the mining, working for Barrick Gold, Continental Gold, Oremex Silver and continues to

provide Qualified Person services. He is an SME Registered Member, ID 4167376RM. He graduated from Arizona State University in 1979 (BS) and the Mackay School of Mines in 1981 (MS) in Geology. Mike lives in Mexico and is fluent in Spanish.

Board of Directors & Management

November 29, 2017 4 TSX.V-MMN

Stock Information

• TSX-V SYMBOL - MNN
• Basic Shares Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.6 Million
• Stock Options Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Million

2.1Million @ $0.14

• Warrants Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.2 Million

5.4 Million - Exercisable @ $0.50 expiry Oct 2017 (Debenture/Equity) 13.2 Million - Exercisable @ $0.18 expiry May 2020 0.7 Million - Exercisable @ $0.13 expiry May 2020 3.4 Million - Exercisable @ $0.18 expiry July 2020 0.1 Million - Exercisable @ $0.13 expiry July 2020 1.4 Million - Exercisable @ $0.15 expiry June 2021

• Fully Diluted Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75.9 Million
• Basic Market Cap @ $0.10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.96 Million
• Cash in the bank at August 31, 2017 . . . . . . . . . . . . . . . . . . . . . $1.28 Million
• Major Shareholders

Eric Sprott Concept Capital Management

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Tejamen El Sol San Lucas OREMEX SILVER INC.

Project locations

MONARCA MINERALS INC.

Project locations

Project Portfolio in Durango

November 29, 2017 6

TEJAMEN (Durango State)

• Flagship property with a NI

43-101 inferred resource of 28.7 million troy ounces of Ag (15ppm cutoff), contained in 19.8 million tonnes @ 45ppm Ag

• Excellent potential to expand

resource and for high grade veins and mantos SAN LUCAS (Durango State)

• Excellent exploration

potential for veins and mantos EL SOL (Durango State)

• Excellent potential to extend

Southern Silver’s Blind/El Sol zone onto concession with geophysical anomaly (IP) continuation

Project Locations: Durango State

November 29, 2017 7 TSX.V-MMN

• Monarca’s projects are

located in an area of Mexico renowned for major Ag, Au and base metal deposits.

• The area has a long

mining history dating back to early colonial times.

• The area has significant

infrastructure and transportation systems with local mining expertise.

Tejamen: 43-101 Resource

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Key silver valuation component and flagship project

• Monarca owns 100% mineral rights and surface access

in progress

• NI 43-101 Inferred Resource of 28.7 million troy
• unces of Ag (15ppm cutoff), by Gustavson Associates
• NI 43-101 Inferred Resource of 19.8 million tonnes @

45ppm Ag

• 215 RC holes (36,139m) and 10 core holes drilled

between 2003 and 2008

• Los Mantos remains open to the south, east and at

depth in high grade veins

• Significant exploration upside in feeder veins

beneath both Los Mantos and Cerro Prieto deposits, grades of to 6m of 1,400ppm Ag, with about 5% Pb & Zn

Tejamen: Deposits & Drilling

November 29, 2017 9

• Completed 36,139m
• f drilling
• Defined 2 primary

Ag deposits: Los Mantos and Cerro Prieto

• Los Mantos drill

result highlights:

• Hole MMT-141:

80m at 417 g/tAg

• Hole MMT-101:

89m at 621 g/tAg

Cerro Prieto Upper Cerro Prieto Lower Los Mantos

Los Mantos Cerro Prieto

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Tejamen: Satellite Image

November 29, 2017 10

• Located close to

Tejamen town with 700 people

• Nearby town of Nuevo

Ideal provides basic services

• Power and water

available

• Year-around access with

low topographic relief

• Moderate climate

conditions

• 1.5 hours by highway

north of Durango, Mexico

Cerro Prieto Area Los Mantos Area

Mineralized Zone Representative Outline

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Tejamen: Recent work

November 29, 2017 11 TSX.V-MMN

• We are currently re-analyzing geological information and the re-logging historical

drill results. Drilling completed in 2005 and 2008 only reached relatively shallow depths of approximately 150 meters.

• To date Monarca has identified 3 extremely high grade intercepts at both Los

Mantos and Cerro Prieto portions of Tejamen.

• Drill hole MMT-141, Los Mantos, reported an 80-meter zone containing 417

grams of silver including 4,028 grams per silver from 82 to 88 meters from

• surface. This is one of three high grade veins identified in Los Mantos.
• Cerro Prieto is a thick zone of parallel veins and disseminated silver mineralization

at approximately 80 meters. Cerro Prieto drilling reached a maximum depth of 150 meters. It is worthwhile to note that the core was not assayed for any other metals.

Tejamen: Exploration Potential

November 29, 2017 12

LOS MANTOS FEEDER VEIN INDICATIONS

TJBD - 6 166 -172m 6.00 1,400 Ag (ppm) MMT - 149 168 -170m 2.00 448 Ag MMT -150 134 – 136m 2.00 1,355 Ag MMT -142 160 – 162m 2.00 806 Ag MMT - 156 110 – 112m 2.00 773 Ag TSX.V-MMN

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Support from the Mexican Government

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• Carlos Espinosa, Director, has been developing and

implementing a plan to secure the surface rights at Tejamen, Monarca’s flagship property. Over the last 12 months Carlos has met with senior officials at the Federal, State and Municipal level.

• Jose Rosas Aispuro, Governor of the State of Durango is

pro-mining, and he appointed two highly experienced mining engineers to his cabinet; Ramon Davila, Minister of Economic Development and Jose Luis Aguilar, Deputy Minister of Mining; both of them worked most of their career on Canadian and Mexican mining companies,.

• Mayor of Nuevo Ideal (Tejamen belongs to the

municipality of Nuevo Ideal) have been fully supportive on this new approach to Tejamen community.

• Current state governor will be at the office until 2022

enabling Monarca to concentrate on community relationships and development of Tejamen, San Lucas and El Sol

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Community Relations at Tejamen

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• Monarca has built the foundation with

the Mexican government and are developing a close relationship with the community

• Carlos have been meeting with the

leaders of the local community of

• Tejamen. In those meetings Carlos

listened to the Community’s concerns, introduced the new Monarca management team, reviewed the benefits to the Community and outlined Monarca’s plans once the surface rights have been secured. Monarca is dedicated to being a responsible Community partner

• Carlos will continue traveling to Mexico

to keep building the relationship and trust with Tejamen community

San Lucas Overview

• Two parallel vein structures have been identified in

the 3km long mineralized Main Shear zone.

• 79 historical RC holes have been drilled, ranging from

about 32m to 259m and averaging 158 m in depth.

• Drilling results include up to 2m at 527ppm Ag, with

Zn and Pb over 1% (MMSL-46; 154m-156m depth).

• And up to 22.9m at 0.78ppm Au and 12.7ppm Ag

(SL11-11 500 165 - 240 ft depth).

• Exploration upside in the El Doctor vein area (Noche

Buena) in outcrop channel sampling (up to 1.4m at 110ppm Au and 168ppm Ag).

November 29, 2017 15 TSX.V-MMN

San Lucas Overview

• Luismin obtained some very high grade underground

sampling results, with up to 256ppm Au and 391ppm Ag, over 0.55m.

• Potential exists for the principal veins below previous

drilling depths, where the base of the volcanic host rocks encounter schist, phyllite and limestone. The sub-volcanic rocks remain untested on the Main Shear areas, where there is significant potential for large manto deposits.

• A 2005 43-101 compliant Technical Report (Richards)

states that a “centre of mineralization exists in the northern portion of the Main Shear” and that this is an “expression of manto style mineralization at depth”, in underlying carbonate rocks.

• An exploration program for 2018 is proposed with

estimated cost is US$850,000.

• Consolidate San Lucas land package

November 29, 2017 16 TSX.V-MMN

San Lucas Drillhole Map

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• Drilling results include up to

2m at 527ppm Ag, with Zn and Pb over 1%

• Seventy-nine RC holes have

been drilled at San Lucas

• Generally to depths of less

that 200m

• Manto potential below

200m in untested vein areas

• Luismin obtained some very

high grade underground sampling results, with up to 256ppm Au and 391ppm Ag, over 0.55m.

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El Sol Overview

• Surface sampling at El Sol (old mine dumps) of up to 358ppm Ag, 1.945ppm Au,

19.6% Zn and 22.6% Pb.

• One hole has been drilled (Southern Silver Exploration [SSV], 13CLM-072) and

returned 0.3m (102.5 – 102.8m depth) at 87ppm Ag, 1.88% Pb, 1.01% Zn and 0.11% Cu.

• A strong chargeability anomaly runs along the eastern side of the El Sol concession,

possibly indicating the presence of sulfide mineralization and northward extension

• f SSV’s Blind/El Sol Zone.
• A strong aeromagnetic anomaly is located at the northwestern portion of the El

Sol concession, possibly indicating the presence of a mineralizing intrusive.

• An exploration program for 2018 is proposed, consisting of 4-6 holes (total 1500m)

to cost US$300,000.

• Possible Joint Venture opportunity
• November 29, 2017

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November 29, 2017 TSX.V-MMN 19

San Jose Overview

Deposit Type and Locality

• Deposit Type: Intrusives (porphyry Cu related?) and skarn, with significant

precious and base metal grades

• Mineralization: In the mineralizing intrusive and skarn, with Cu (to 10.5%),

Pb (to 6.5%), Zn (to 1.4%), Au (to 27ppm) and Ag (to 219ppm)

• Location: San Jose property is comprised of 5,850 hectares, in the vicinity of the

border with USA, approximately 125 kilometers of El Paso, Texas

• Accessibility: Road access and local infrastructure is good; 15 km to the E is the

agricultural settlement of Guadalupe Victoria

• Terrain: Rolling hill country dominantly, not steep mountainous area
• Historical Mining: Numerous small shafts and pits with production dating from

1915, Au reported to be 1-5ppm, Ag 50-1000ppm and 5-8% Pb

Mining Concession Map

Primary Exploration Area 1 km

Magnetic Anomaly (porphyry Cu) North Concession Limit

Geology and Mineralization

• Mineralizing Tertiary intrusives emplaced into Paleozoic to Mesozoic limestones
• Intrusives manifest as several types and phases, ranging from equigranular

granodiorite to rhyolite porphyry

• Intrusives occur with various types and degrees of alteration including propyllitic,

slilicification, endoskarn, disseminated pyrite to 2% and specularite/magnetite

• ExoSkarn mineralization is grossularite ± diopside, locally with hydrous retrograde

silica + clay and overprinting quartz veins and silicification

• Au mineralization, principally in late quartz veins, overprint the skarn and is

associated with late silicification in the exoskarn and mineralizing intrusives

• Potential exists in the north portion of the concession for a porphyry Cu/Au

deposit, associated with the magnetic anomaly and skarn

• Overprinting late Au veins have potential for production
• Tungsten occurrences have been reported in the area of skarns

Why Monarca Minerals?

• Strong Board to deal with securing the surface rights to Monarca’s flagship

property, Tejamen.

• Michael R. Smith, Executive VP and QP, 23 years of experience in Latin

America, fluent in Spanish, brings broad expertise in mining project discovery and development

• $1.3Mil in cash with a low monthly burn rate of $50,000
• Recently elected local officials are in favour of developing mining projects
• February 2016 updated 43-101 Resource of 28.7 million silver ounces with

excellent resource expansion potential and exploration upside

• Improving Precious Metal prices
• Low Market Capitalization of $6.5Mil versus metal value at $20 silver of

US$575Million

• Recently signed LOI to add San Jose project to our current portfolio
• On going discussions to add properties or joint venture opportunities

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Carlos Espinosa, President cespinosa@slgmexico.com Allan Folk, Interim CEO Afolk.bb@gmail.com

www.monarcaminerals.com