Discovering silver. Defining value. www.aftermathsilver.com | TSX.V - - PowerPoint PPT Presentation

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Discovering silver. Defining value. www.aftermathsilver.com | TSX.V - - PowerPoint PPT Presentation

A FTERMATH S ILVER I NVESTOR P RESENTATION December 2019 TSX.V: AAG OTCQB: FLMZF Discovering silver. Defining value. www.aftermathsilver.com | TSX.V : AAG Important Information Cautionary Statement on Forward Looking Information This


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AFTERMATH SILVER INVESTOR PRESENTATION

December 2019

TSX.V: AAG OTCQB: FLMZF

Discovering silver. Defining value.

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www.aftermathsilver.com | TSX.V : AAG

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Silver Focus 2 Advanced Projects Defined Resources

Important Information

Cautionary Statement on Forward Looking Information This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation does not constitute or form a part of, and should not be construed as an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of Aftermath Silver, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Certain information in this presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively "forward-looking statements"). All statements, other than statements of historical fact are forward looking statements. Forward-looking statements are based on the beliefs and expectations of Aftermath Silver as well as assumptions made by and information currently available to Aftermath Silver management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, all costs varying significantly from estimates, production rates varying from estimates, changes in metal markets, changes in equity markets, the proposed use of net proceeds from private placements, availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, ability to complete future drilling programs, drilling program results varying from expectations, delays in obtaining survey results, success of future development initiatives, the completion and implementation of a preliminary economic assessment, pre-feasibility or feasibility studies, competition, operating performance, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from local authorities, community relations, and other development and operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Although Aftermath Silver believes that assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, Aftermath Silver disclaims any intent or obligation to update any forward- looking statement. Although Aftermath Silver has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the forward-looking information, there may be other risks, uncertainties and other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as of the date hereof and Aftermath Silver disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law. About Reserves and Resources This presentation uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that: (a) mineral resources are not economic mineral reserves; (b) the economic viability of resources that are not mineral reserves has not been demonstrated; and (c) it should not be assumed that further work on the stated resources will lead to mineral reserves that can be mined economically. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher

  • category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for certain preliminary economic assessments.

Qualified Person Peter Voulgaris, MAIG, MAusIMM,, is a non-independent qualified person, as defined by NI 43-101. Mr. Voulgaris has reviewed the technical content of this Presentation and consents to the information provided in the form and context in which it appears.

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Silver Focus 2 Advanced Projects Defined Resources

Corporate Summary

Build a silver company, expanding an existing silver resource base by advancing low-risk projects in established mining jurisdictions. Early monetization of assets for investors.

Objective

ü Acquire advanced silver assets with current or historic resources ü Focus on projects with nearby infrastructure ü Operate in high-ranking mining friendly jurisdictions such as Chile ü Target projects with exploration upside ü Use low-risk resource development drilling to add ounces

Strategy

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Silver Focus 2 Advanced Projects Defined Resources

Ralph Rushton

President, CEO, Director

Mining Exploration Marketing Capital Raising

Peter Voulgaris

Technical Advisor

Exploration Mining Engineering Project Management

Key People

Michael Williams

  • Exec. Chairman, Director

M&A Marketing Executive Management Capital Raising

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Silver Focus 2 Advanced Projects Defined Resources

ü Closed 2 private placements: $2.5m @ 8c and $3.3m @ 20c

  • Key shareholder invested $3m @ 20c

ü OTCQB Listing: FLMZF ü Made initial property payments on Cachinal and Challacollo projects. ü Budgeting and planning underway for drilling @ both projects. ü Initiated comprehensive investor marketing program. ü Reviewing additional projects in Latin America.

Recent Developments

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Silver Focus 2 Advanced Projects Defined Resources

As of November 7, 2019

Issued and Outstanding : 77.3m Warrants: 24.8m Fully Diluted: 102.1m

Management & insiders 3.5% of issued. Eric Sprott: ±19% of issued Cash at hand approx. C$3m Cash value of warrants: C$4.1m

Capital Structure & Share Performance

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Silver Focus 2 Advanced Projects Defined Resources

– view of historic processing on hill and workings on left and right – view of historic stoping into hill

Challacollo Cachinal

2 Advanced Projects In Chile

Both projects being assessed as potential open pit operations, not u/g

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Silver Focus 2 Advanced Projects Defined Resources

Why Chile?

  • Low political risk: Chile is ranked #1 in Latin America for:

ü political stability, ü security and ü skilled labour.

  • Mining accounts for 10% of Chile’s GDP and 50% of Chilean Exports.
  • Chile is a Top 10 global mining destination with a pro-mining government.
  • Fuelled by the discovery at Chañarcillo the Chilean silver rush of the mid-19th century did much to

drive demographic, infrastructural and economic growth.

  • Today pure silver projects are overlooked in Chile, although it is the world’s 4th largest producer.

Most of Chile’s silver production is a by-product of copper mining.

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Silver Focus 2 Advanced Projects Defined Resources

  • Lower risk than grass roots discovery programs;
  • Allow for rapid resource expansion with early drilling;
  • Shortened time frame to demonstrate economic potential;
  • Up front identification of low-cost open pit potential;
  • Fits our goal of monetizing projects within 24 months.

Lo Low w Discover ery Risk Advanced Stage Projects

The advantages

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Proje ject ct Sum ummari ries Cachinal Snapshot

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Silver Focus 2 Advanced Projects Defined Resources

Proje ject ct Sum ummari ries Challacollo Snapshot

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Silver Focus 2 Advanced Projects Defined Resources

Proje ject ct Sum ummari ries Mineral Resources

Cachinal Challacollo

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Silver Focus 2 Advanced Projects Defined Resources

Proje ject ct Sum ummari ries Cachinal

1905 2018

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Silver Focus 2 Advanced Projects Defined Resources

Amended agreement dated October 24, 2019:

  • AAG will buy 80% of the issued shares of Cachinal from Halo (formerly Apogee) which owns a 100%

interest in the property for $1,575,000;

  • AAG will issue a $1.575m convertible debenture to Halo, convertible @ $0.20, with staged

repayments of $250,000, $525,000 and $550,000 due 6, 12 and 18 months after closing;

  • The purchase is to be closed 5 business days after approval of the Purchase Agreement by the TSX

Venture Exchange;

  • AAG has paid $500k to date, $1.075m still outstanding

Cachinal Deal Terms

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Silver Focus 2 Advanced Projects Defined Resources

The Guanaco Gold Mine, 16km south of Cachinal

  • Produced ~49,000 AuEq oz per year over last 4 years
  • Ore is hauled from Amancaya satellite open pit & underground

mine, 75km away

  • 1500

tpd processing plant become

  • perational

2017, largely replacing heap leach. Total capital cost $18-18.5M

  • Guanaco shifted from open pit to underground, veins mined on

20m sub-levels, average thickness 3m

  • Grid Power, 330 man camp, water licences from surface

catchment and bore field Guanaco plant site. Map and picture from Austral Gold web site: https://www.australgold.com/

Our Neighbours: Austral Gold

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Silver Focus 2 Advanced Projects Defined Resources

Work program: $650-700k budget

  • 3D laser surveys of voids
  • Staged drilling
  • Metallurgical testwork: main veins & oxide low grade halo
  • Revised (expanded?) mineral resource estimate
  • Review other for accretive acquisitions

Cachinal: Work Program

Deliverables (18-24 mths)

  • Expanded resource
  • Preliminary economic analysis (PEA)
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Silver Focus 2 Advanced Projects Defined Resources

Challacollo

Location of Lolón shoot shown on previous slide ü Multiple veins, >3km strike length ü Excellent exploration upside ü Hanging wall potential above main Lolón vein

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Silver Focus 2 Advanced Projects Defined Resources

Amended Challacollo LOI, AAG to acquire 100%:

  • $500,000 cash to be paid on or before July 31st, 2019 (Paid)
  • $500,000 cash to be paid on or before December 31st, 2019 (Paid)
  • $1,000,000 cash to be paid on or before December 31st, 2020;
  • $5,500,000 on or before December 31st, 202. At AAG’s option, payment can be in AAG shares up to a value of

$2,750,000, and the balance in cash, as long as the number of Aftermath shares issued doesn’t represent more than 49% of AAG’s outstanding shares following such payment;

  • Mandalay to retain a 3% Net Smelter Returns royalty on production, up to a maximum of $3,000,000.
  • SSR Mining is entitled to a 2% NSR royalty with respect to all Ag products from the Challacollo concessions,

payable from and after the date on which 36,000,000 ounces of silver have been sold or credited to the account of Mandalay, up to a maximum amount of $5 million, with a $5 million buyout option.

Challacollo Deal Terms

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Silver Focus 2 Advanced Projects Defined Resources

Cha Challacollo: Upside de

Lolón Vein Long Section

Approximate base of weathering Along-strike oxide potential, under sand cover High grade shoot, sulphide potential, sulphide metallurgy to be confirmed Parallel high grade veins & low grade halo to be investigated over 2 Km of known Lolón Vein Strike

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Silver Focus 2 Advanced Projects Defined Resources

Challacollo: Work Program

Work program: $500k budget

  • Resource drilling on Lolón hangingwall, footwall parallel

structures and low grade halo mineralisation.

  • Metallurgical test work on hi grade material & dump/heap

leach (column leach) on low grade halo material.

  • Down dip sulphide drilling & testing of sulphide metallurgy.
  • Additional sub-parallel vein systems to be tested with

minimum drilling

Hanging wall high grade narrow veins & bulk mining halo opportunity. NB: these are NOT part of the Lolón resource Footwall potential is less well

  • understood. Drilling needs to

extend into footwall

Deliverables (18-24 mths)

  • Expanded resource inc. low grade oxide
  • Proof of concept for open-pittable oxides
  • Preliminary economic analysis (PEA)
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Silver Focus 2 Advanced Projects Defined Resources

Challacollo: Infrastructure Advantages

  • Groundwater

rights for 12 l/sec held since 2005 at Tamentica community (10km west of property),

  • Other water sources located and a developed bore (25 l/sec) is

located on the “water concessions”. Goal is to transfer water rights to the water concessions bore.

  • Planned desalination pipeline will pass through Challacollo Tenement.
  • Not at altitude: surrounding plain 1,000m above sea level (ASL) with

the Challacollo Mountains rising towards around 1,550m ASL.

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Silver Focus 2 Advanced Projects Defined Resources

What’s Coming Up?

ü Marketing ramp up through year end into Q1 2020 ü Design and planning of technical program for Cachinal & Challacollo ü Technical news flow will begin Q1 2020 ü Increased exploration news flow in 2020 ü Increase in media coverage ü New project acquisitions?

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Silver Focus 2 Advanced Projects Defined Resources

Key Highlights

ü 2 resource stage projects, epithermal silver ü Targeting open pit operations ü Objective: 100M oz contained Ag ü Rapid ramp up to infill and resource expansion drilling ü Experienced team ü Mining friendly jurisdiction

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CONTACT INFORMATION

November 2019

TSX.V: AAG OTCQB: FLMZF

Ralph Rushton

President, CEO & Director

ralphr@aftermathsilver.com

Phone : +1 604 484 7855

http://aftermathsilver.com/

Mike Williams

  • Exec. Chairman & Director

mw@octaviancapital.com