Discovery done different CORPORATE PRESENTATION October 2014 - - PowerPoint PPT Presentation

CORPORATE PRESENTATION

October 2014

Discovery done different

The TSX-V has neither approved nor disapproved the contents of this presentation. Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this presentation. Certain of the statements made and information contained herein is “forward-looking information” within the meaning of the applicable Canadian securities laws, including the receipt of necessary permits to conduct exploration and construction, timing of anticipated exploration programs, the number of holes and meters to be drilled and future plans and strategies of the Company. Although Kaizen has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the proposed transaction could be modified, restricted or not completed, and the results or events predicted in these forward-looking statements may differ materially from actual results or events. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as

• f the date of this release. Kaizen disclaims any intention or obligation to update or revise such information, except as required by applicable law, and

Kaizen does not assume any liability for disclosure relating to the other company mentioned herein. Accordingly, readers are advised not to place undue reliance on forward-looking information. The forward-looking statements contained in this presentation are made as of the hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

Forward-looking statements

The information in this presentation is published to inform you about Kaizen Discovery and its activities. To the extent permitted by law, Kaizen Discovery accepts no responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this presentation. Recipients should make their

• wn enquiries in relation to any investment decisions. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in any

jurisdiction, including the United States. NI 43-101 Statement Aspen Grove and Tanzilla Projects. The scientific and technical information in this presentation relating to the Aspen Grove Project and Tanzilla Project of a technical or scientific nature have been reviewed and approved by John Bradford, M.Sc., P.Geo., Kaizen’s Chief Geologist a qualified person as defined under National Instrument 43-101. He has verified the technical data disclosed in this presentation regarding the Aspen Grove and Tanzilla Projects. Fairholme Project. The scientific and technical information in this presentation relating to the Fairholme Project has been reviewed and approved by Mr. Barry de Wet, a member of the South African Council for National Scientific Professionals (SACNSP), South Africa, and a Qualified Person as defined under NI 43-101. Mr. de Wet is independent of Kaizen Discovery as determined under NI 43-101. He has verified the technical data disclosed in this presentation regarding the Fairholme Project. Ebende Project. The NI 43-101 technical report in respect of the Ebende Project, entitled "NI 43-101 Independent Technical Report", dated October 16, 2013 (the “Ebende Report”) was prepared by The MSA Group (Pty) Ltd and is available on SEDAR at www.sedar.com. The Qualified Persons as defined under NI 43-101 for the Ebende Project are Dr. Brendan Morgan Clarke, a Professional Natural Scientist (PrSciNat) registered with the South African Council for Natural Scientific Professions, and Mr. Michael David Lynn, a PrSciNat registered with the SACNASP. Both are independent of Kaizen Discovery as determined under NI 43-101.The Ebende Report includes relevant information regarding, among other things, data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this presentation in respect of the Ebende Project. Information regarding the Ebende Project included in this presentation is based on the Ebende Report. None of the foregoing mineral projects currently hosts any mineral resources or mineral reserves.

Disclaimers

A platform for future success

Kaizen model for success

Experienced leadership Revolutionary exploration technology Unique access to capital

Strategic partner group investment Project specific Special Purpose Vehicle Local holding company Asset

A cooperative approach to acquiring and advancing projects

• Kaizen will target projects that match evaluation

criteria and align with corporate strategic

• bjectives

– Partnerships with Japanese strategic partners provide

• pportunities for additional sources of financing

throughout project lifespans. – Kaizen can leverage strategic partners’ technical expertise to evaluate proposed targets and shorten the process of selecting candidate assets.

• Target acquisition process

– Once opportunities identified, Kaizen will lead M&A process, leveraging key strengths. – Transactions may be structured to include optional participation of Japanese strategic partners, including at the project level.

Possible structure for an acquisition

Collaboration with ITOCHU

February, 2014: Private Placement Financing and formation of Strategic Alliance

• CAD$5.1 million private placement.
• Issuance of 8.5 million Kaizen common shares at a price of

CAD$0.60 per share.

• Post-closing ownership stake of approximately 6.35% in Kaizen.
• Opportunity to participate in Kaizen's existing Fairholme copper-

gold project in Australia (49% earned interest) and its Ebende nickel-copper-cobalt project in the Democratic Republic of Congo.

• Facilitation of non-recourse project financing and support from

Japanese financial institutions for the development of Kaizen projects. August, 2014 - Acquisition of Copper and Gold Exploration Interests in Canada for $4M

• Aspen Grove copper/gold project: ITOCHU acquired a 40%

interest in the project in exchange for a cash payment of four million Canadian dollars (equivalent to about 380 million yen).

• Tanzilla copper/gold project: ITOCHU to acquire an initial, 15%

interest in the Tanzilla Project for a cash payment of 250,000 Canadian dollars (equivalent to about 24 million yen), subject to the consent of Freeport-McMoRan of Canada Limited, with an

• ption to acquire up to a further 10% interest in the project.

Our current asset portfolio

Kerboulé Project Gold Burkina Faso Ebende Project Nickel, copper, PGE The Democratic Republic

• f Congo

Fairholme Project Copper, gold, molybdenum New South Wales, Australia Aspen Grove & Tanzilla projects Copper, gold, silver British Columbia, Canada Vancouver Headquarters Tokyo Office

Our services agreement gives us access to cutting edge technologies and expertise

Conventional IP vs. HPX TYPHOON DEEPER

A high signal/noise ratio enables up to 5x deeper prospecting.

BETTER

Increased effectiveness through improved resolution of targets and host geology.

FASTER

Can be substantially faster than conventional methods for deep targets due to custom survey deployment.

5x ?

Key Exploration Projects Early-stage Targets

Mt Polley Red Chris

Partnering with Itochu

Copper Mountain

Aspen Grove

Highland Valley New Afton

Drilling at Tanzilla

Mt Milligan Highlights:

• The combination of Kaizen's existing portfolio of

exploration projects in Australia and Africa, and West Cirque's portfolio in Canada, establishes a stronger company with an impressive and diverse pipeline of projects.

• After completing the acquisition, Kaizen’s

strategic shareholder, ITOCHU, closed a $4.25 million financing agreement in August 2014.

• Kaizen’s in-house technical expertise has been

enhanced through the addition of members of West Cirque’s management team.

• Proprietary geophysical technologies are to be

applied to projects in British Columbia.

• Drilling completed on the Tanzilla Project in Aug.

2014 and underway on the Aspen Grove Project.

• 2014 Aspen Grove work program will include a

3D IP survey as well as a 2,000-metre drill program.

Tanzilla

Fairholme copper-gold-molybdenum project

Opportunity to earn up to 95%

• $4 million over next two years aimed at delineating

a scoping study to earn 65%.

• Kaizen can earn 80-85% by sole funding a pre-

feasibility study (cost dependent).

• Kaizen can earn 90-95% by funding a bankable

feasibility study (cost dependent).

Geological Terrain

• The project covers part of the Fairholme Igneous

Complex of the Ordovician Macquarie Arc of New South Wales.

Exploration Targets

• Three Fairholme prospects - Boundary, Dungarvan

and Gateway are located within one high-priority

• target. All three are associated with significant

basement copper-gold-molybdenum geochemical anomalies, prominent alteration halos and discrete magnetic anomalies, the size and scale of which are comparable to the footprint of several world-class porphyry copper deposits; e.g. Cadia-Ridgeway, Batu Hijau and Alumbrera.

• Drilling confirms presence of porphyry style copper

and gold mineralization.

2014 Work Program

• Kaizen and its joint-venture partner, Clancy Exploration, continue their geophysical program,

including an airborne magnetic survey over the entire property and a 3D IP survey (completed end

• f Aug. 2014), to follow-up on gradient-array IP anomalies defined in 2013. The geophysical

program will be followed by an 8,000m drilling program in Q4 2014 to test the prospects.

New South Wales, Australia

49% owned. Earn-in agreement with Clancy Exploration Exploration stage

Fairholme Project

Democratic Republic of Congo

100% owned Early-stage exploration

Geological Terrain

• The Ebende Structure is on the margin of the Archaean

Congo-Kasai Craton, and the presence of a thick basalt sequence which was apparently extruded from feeders passing through a carbonate platform are geological features which are comparable to the giant Norilsk PGE, nickel and copper deposit in Russia.

• The Ebende Project is a conceptual exploration project

based on the premise that if the area shares similar geological features to the Norilsk area, then there is potential to find comparable mineralization. The current exploration program is designed to test the geological model, and to locate such mineralization. Exploration Targets

• Exploring nickel-copper and platinum group element targets

(PGE) along a 130-kilometre north-west to south-east corridor that is characterized by a distinctive magnetic anomaly (the Ebende Structure).

• Anomalous levels of platinum, palladium, nickel, copper,

cobalt, chromium and magnesium have been identified as a result of stream sediment sampling carried out by past exploration programs in the region over parts of the Ebende Structure.

• A NI 43-101 technical report was completed on the project

in October 2013.

Ebende nickel-copper and platinum group element (PGE) project

2014 Work Program

• Gradient-array IP survey, as well as a soil sampling survey. The design of the regional gradient-array

survey consists of approximately 155-line kilometres covering a total area of 89 square kilometres. A soil geochemical survey will be conducted along the geophysical survey lines at 200-metre spacings.

Pacific Rim focus for new acquisition targets

Fairholme Project 2014 3D IP Survey 8,000m drill-program

Pacific Ocean

We are looking for

• pportunities in

South America…

Tanzilla Project 2014 1,600m drill-program Aspen Grove Project 2014 3D IP Survey 2,000m drill-program

Completing the Kaizen ‘Ring of Fire!’

Be opportunistic in acquisitions

Attractive M&A landscape:

• Metals and mining companies’ share prices are near

the low end of their trading range over the last decade.

• Valuations are low enough to attract longer-term-

focused investors.

• Significant M&A opportunities exist in the junior miner

space where mergers, joint ventures and acquisitions are likely to be needed to fund new mineral projects.

• Opportunities to acquire projects with near-term

production and off-take potential, along with exploration upside.

S&P/TSX Materials Index vs. S&P/TSX Index 2003–2013

Source: BMO Capital Markets Mining Equity Outlook 2014

Kaizen advantage – poised for this market:

• Preferential access to best-in-class exploration

technologies.

• Strong balance sheet with no material liabilities.
• Access to additional sources of equity and project-level

financing through Kaizen’s strategic partnerships.

• Network of industry leaders in management, executive

and shareholder ranks.

• Transaction team with global acquisition experience.
• International network of advisors present numerous

acquisition opportunities.

Board of Directors

Peter Meredith, Chairman Director of Ivanhoe Mines Ltd. (formerly Ivanplats Limited); former Deputy Chairman of Ivanhoe Mines Ltd. (now Turquoise Hill Resources).

• B. Matthew Hornor,

Chief Executive Officer & President Executive Vice President of Ivanhoe Mines

• Ltd. (formerly Ivanplats Limited); former Vice

President of Ivanhoe Mines Ltd. (now Turquoise Hill Resources). Ali Zamani Established New York-based investment manager, including nine years with Goldman Sachs focusing on energy, materials, utilities and industrial investments. Director of Applied Minerals Inc. Akiko Levinson President of Gold Canyon Resources Inc.; Director of Novo Resources Corp. Robert Hanson, Chairman of Compensation Committee Chairman of Hanson Family Holdings; former Director of Ivanhoe Mines Ltd. (now Turquoise Hill Resources) and SouthGobi Resources. David Huberman Chairman of Nominating & Corporate Governance Committee President of Coda Consulting Corp.; former 25-year Senior Partner of a Canadian business law firm; Director of Trevali Mining Corporation. Edward Flood Over 35 years’ experience in international mining; Director of Western Lithium USA, East Asia Minerals Corporation and Baker Street Royalty Trust. David Birkenshaw President and Chief Executive Officer of Birkenshaw & Company Ltd. since 1989; former Senior Vice President and Director of PricewaterhouseCoopers. Chairman of Meryllion Resources Corp. Terry Krepiakevich, Chairman of Audit Committee Chief Executive Officer and Director of Meryllion Resources Corp.; former Chief Financial Officer of SouthGobi Resources.

• Dr. Kuang Ine Lu,

Vancouver Adviser, Japan Oil, Gas and Metals National Corp. (JOGMEC); over 50 years of mineral exploration and evaluation experience.

Kaizen management and technical team

John Bradford, MSc, PGeo Chief Geologist Former Vice President, Exploration of West Cirque Resources; over 28 years’ exploration experience, working extensively in Canada, Mexico and South America.

• B. Matthew Hornor,

Chief Executive Officer & President Executive Vice President of Ivanhoe Mines

• Ltd. (formerly Ivanplats Limited); former Vice

President of Ivanhoe Mines Ltd. (now Turquoise Hill Resources). Steve Vanry, CFA Executive Vice President, Corporate Development Former President and Chief Executive Officer

• f West Cirque Resources; 24 years’ management

experience with natural resources companies; member of the CFA Institute. Pierre Masse, Chief Financial Officer Former Chief Financial Officer of GoviEx Uranium Inc.; over 30 years’ experience in mining finance. Nakaba Chimura, Executive Vice President, Asia Finance Asian capital market adviser to Ivanhoe Mines Ltd. and GoviEx Uranium Inc.

Kaizen’s plan for success: Delivering value for shareholders and partners

Implement cutting-edge & cost-effective work programs

• n core asset portfolio

Be opportunistic in acquisitions – leverage strength of management, technologies & partnerships Maintain fiscal and exploration discipline Identify, evaluate, acquire and advance world-class mineral projects

• Strengthen our existing relationships and develop

new partnerships

• Explore our exciting portfolio of projects
• Acquire additional projects – 2-3 per year goal
• Expand our footprint across the Pacific Rim

The Future

Corporate snapshot

*Information current as of September 29

Stock Information*

Ticker Symbol TSX-V: KZD Share Price (Sep 29, 2014) CAD$0.42 Shares Issued and Outstanding: 148,625,237 Market Capitalization CAD$62 million

Financial Information

Consolidated Cash Position

• Approx. CAD$ 15 mil (includes proceeds of recent CAD$4 mil

ITOCHU Corp. project financing)

Major Shareholders HPX TechCo Inc., ITOCHU Corporation Latest News Releases

September 24, 2014 August 22, 2014 August 18, 2014 July 31, 2014 Kaizen Discovery begins phase one drilling and geophysics programs at its Aspen Grove Project Kaizen Discovery receives $4 million financing from ITOCHU to fully fund two-year exploration program at Aspen Grove Project Kaizen Discovery and ITOCHU agree to $4 million funding deal to explore Aspen Grove copper-gold porphyry project in southwestern B.C. Kaizen Discovery to participate in upcoming investor conferences in Toronto and Lima

Investors: Steve Vanry Phone: +1 604 669-6446 Email: steve@kaizendiscovery.com Office Kaizen Discovery Inc. World Trade Centre 654-999 Canada Place Vancouver, BC V6C 3E1 Canada Phone: +1 604 669-6446

www.kaizendiscovery.com

Presented by B. Matthew Hornor, CEO & President Phone: +1 604 331-9895 Email: matthew@kaizendiscovery.com Discovery done different

Kaizen is a Canadian technology-focused mineral exploration company that was formed in late 2013 through a combination of Concordia Resource

• Corp. and assets acquired from HPX TechCo, a subsidiary of High Power

Exploration. A strong management team and an experienced board, combined with the improved project portfolio and access to HPX TechCo's cutting-edge, proprietary technology, will help enable Kaizen to more effectively identify and advance mineral projects.