ESKAY Y CR CREEK EK P PROJECT ECT Golden T en Triangl iangle, - - PowerPoint PPT Presentation

November 2 2019

TSX.V: SKE/OTCQX: SKREF

ESKAY Y CR CREEK EK P PROJECT ECT

Golden T en Triangl iangle, e, BC

FORWARD LOOKING STATEMENTS

Certain statements made and information contained herein may constitute “forward looking information” and “forward looking statements” within the meaning of applicable Canadian and United States securities legislation, including, among

• ther things, information with respect to this presentation. These statements and information are based on facts currently

available to the Company and there is no assurance that actual results will meet management’s expectations. Forward- looking statements and information may be identified by such terms as “anticipates”, “believes”, “targets”, “estimates”, “plans”, “expects”, “may”, “will”, “could” or “would”. Forward-looking statements and information contained herein are based

• n certain factors and assumptions regarding, among other things, the estimation of mineral resources and reserves, the

realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws. The Qualified Person responsible for the technical information in this presentation is Paul Geddes P. Geo., Vice President of Exploration & Resource Development, who has approved the technical information included herein. Any reference to historical estimates and resources should not be relied upon.These are not current and a Q.P. has not done sufficient work to classify these historical estimate and Skeena Resources Limited is not treating the historical estimate as a current resource estimate.

2

3 Don

• n Siemens

emens:

• Mr. Siemens is an independent

financial advisor with over 30 years of experience as a Chartered Accountant. Mr. Siemens currently serves as Director and Audit Committee Chair for Arizona Mining Inc., Atlantic Gold Corp., Eros Resources Corp. and Hansa Resources Ltd.

Borden R. Putnam III III: Mr. Putnam is a professional

geologist with over 41 years of mineral industry experience, with a focus on exploration and asset evaluations. During the last 15 years Mr. Putnam has worked primarily as an analyst or advisor to several large investment funds in the US.

Isac ac Burstein: Mr. Burstein is the Vice President of

Exploration & Business Development at Hochschild Mining PLC. Mr. Burstein has served Hochschild in various capacities including Vice President

• f

Business Development, Manager for Project Evaluation, Exploration Manager for Mexico and Exploration Geologist.

Wa Walt lter Co Coles Jr Jr., President, CEO

EO & Director: Mr. Coles

has been CEO for several TSXV listed companies. Previously he was an analyst with Cadence Investment Partners and before that with UBS Investment Bank. Mr. Coles holds a B.A. in Economics from the University of Richmond.

Cr Craig Pa Parry, Ch

Chairman: Mr. Parry is a geologist and has

served as CEO and President for several Australian and TSXV listed mining companies. He is currently the President & CEO of IsoEnergy Ltd., a co-founder and director of NexGen Energy Ltd and a Senior Advisor and founding- shareholder of EMR Capital.

An Andrew MacRit itchie ie, CPA

PA, CA CA, CF CFO & Corpo porate Secretary: Mr. MacRitchie is a Chartered Public Accountant

who’s held management roles in several TSXV listed mining companies over his 16-year career. Mr. MacRitchie was previously with PricewaterhouseCoopers in the tax accounting

• group. He is a graduate of University of British Columbia

Pa Paul Ge Geddes, P. Ge

• Geo. VP,

P, Explo loration & Resource Develop

• pment: Mr. Geddes has more than 20 years of

exploration and resource development experience. He was an instrumental member of the Rainy River Resources team prior to the Company’s takeover by New Gold in 2013.

Kelly lly Earl rle, B. Sc

• Sc. Geol., CP

CPIR . VP,

P, Co Communications:

• Ms. Earle is an Investor Relations professional and a geologist

with 9 years of experience working with junior mining

• companies. She received her B. Sc. Geol. from the University
• f British Columbia and her CPIR from the Ivey School of

Business at Western University.

Ju Justi tin Him immelrig ight, B. Sc

Sc., M. Eng

• ng. VP,

P, Sustainabili lity:

Mr. Himmelright has

• ver

25 years

• f

experience in environmental management and developing social license for natural resource projects. He is a graduate of University of British Columbia.

MANAGEM GEMENT NT: DIRECT CTORS: S:

SKEENA TEAM

PROPERTY LOCATIONS – BC’S GOLDEN TRIANGLE

4

INFRASTRUCTURE IN THE GOLDEN TRIANGLE

• Excellent

access to power & infrastructure:

• Highway 37 paved north from

Smithers

• New 287 kV power line
• Forrest Kerr & McLymont Creek

Power Station within 17 km of Snip

• Volcano

Creek Power Station within 10 km of Eskay Creek

• Red Chris mine 25 km east of GJ
• Opening of year-round ocean port

facilities in Stewart

• Over

$2 billion invested in infrastructure

5

6

• Produced 3.3 mill

llion ounce ces of gold ld & 16 160 mill llion ounces of sil ilver at average grades of 45 g/t /t Au Au & 2,224 24 g/t /t Ag Ag from 1994 to 2008

• 2.2 million tonnes of ore mined

with cut-off grades of 15 g/t AuEq for mill ore and 30 g/t AuEq for direct shipping ore

• Historical

database containing 7,881 drill holes totaling 706,904 metres (surface & underground)

• Highest grade gold producer in the

world when in production

ESKAY CREEK HISTORY

ESKAY CREEK OPTION TERMS

7

• Option to Acquire from Barrick

secured in December 2017:

• $3.5

million exploration spend commitment

• ver

3 years (complete)

• Purchase price of $10M plus bond

to post (total capped at $17.7M)

• Once exercised, Barrick has 12

months to exercise back-in right for 51% by paying Skeena 3x cumulative expenses, refunding $10M purchase price and 51% of bond

8

PEA HIGHLIGHTS – NOVEMBER 2019

• Hi

High-gr grad ade o

• pen

en-pit aver eragi aging 3 3.23 g/t g/t A Au, 7 78 g/t g/t A Ag g (4.17 g/t g/t AuE uEq) (diluted)

• After-tax

x NPV NPV5%

5% of

f C$638 $638M (U (US$4 $491M) a and 51% 1% I IRR a at t US$1,325/ 325/oz Au and U US$16/ 6/oz A Ag

• After-tax payb

yback period

• d of
• f 1.2

.2 years

• Pr

Pre-production capi pital expe penditures ( (CA CAPEX) o

• f C$

C$303M (US$233M 233M)

• After-tax

x NPV NPV:CAPE APEX R Rat atio o

• f 2.1:1
• Life o
• f mine (

(“LOM”) average annu nnual pr production of 236,000 o

• z Au,

u, 5,812 12,000 000 oz Ag ( (306,000 000 oz A AuEq)

• LO

LOM a all-in sustaining costs ( (AISC) C) of C$ C$983/oz (US$757/oz) AuE uEq recovered

• LOM cash c

costs ts o

• f C$949/

949/oz (US$73 731/ 1/oz) A ) AuEq recovered

• 6,850 t

tonn nne pe per day (TPD) D) m mill a and nd flotation pl plant nt pr producing saleable con

• ncentrate

1.

Exchange Rate (US$/C$) of 0.77

2.

Cash costs are inclusive of mining costs, processing costs, site G&A, treatment and refining charges and royalties

3.

AISC includes cash costs plus estimated corporate G&A, sustaining capital and closure costs

4.

Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 82.8]

306,000 o

• z AuEq

Annu nnual Production

51 51%

After-tax IRR

C$638M

After-tax x NPV NPV5%

5%

US$757/oz

AIS ISC ( (AuEq)

4.17 g g/t t AuEq uEq

Open-pit Aver erage G age Grad ade

9

Sensi nsitiviti ties es to Commod

• dity

ty Prices ces Lower Base ase Higher Case Case se Case

Gold Price ($US/oz) $1,200 $1,325 325 $1,500 Silver Price ($US/oz) $14 $16 16 $18 After-Tax NPV (5%)(C$M) $453 $638 $638 $878 After-Tax IRR (%) 40% 51 51% 63% After-Tax Payback (Years) 1.6 1. 1.2 0.9 Average Annual After-Tax Free Cash Flow (Years 1-9)(C$M) $117 $147 47 $187

Proj

• ject Econo

nomics

Post Tax NPV (5%)(C$M) $638 Post-Tax IRR 51% Post-Tax Payback Period (Years) 1.2 Post-Tax NPV:CAPEX Ratio 2:1:1 Pre-Tax NPV (5%)(C$M) $993 Pre-Tax IRR 63% Pre-Tax Payback Period (Years) 1.1 Pre-Tax NPV:CAPEX Ratio 3:3:1 Average Annual Post-Tax Free Cash Flow (Year 1-9 (C$M) $147 LOM Post-Tax Free Cash Flow (C$M) $959

ECONOMICS & PRICE SENSITIVITY

21A 22 21B 21C 21C HW NEX

2019 MINERAL RESOURCE ESTIMATE

10 10

Grade Contained Ounces Tonnes AuEq Au Ag AuEq Au Ag (000) g/t g/t g/t

• z (000)
• z (000)
• z (000)

Indicated Mineral Resources Pit Constrained 12,711 6.0 4.5 117 2,455 1,818 47,791 Underground 819 8.2 6.4 139 218 169 3,657 Total Indicated 13,530 6.1 .1 4.6 118 2, 2,67 673 1,987 51,448 Inferred Mineral Resources Pit Constrained 13,557 2.8 2.2 42 1,230 984 18,455 Underground 295 8.2 7.1 82 78 68 778 Total Inferred 13,852 2. 2.9 2.3 43 1,308 308 1,052 19,233

21C

Historical Stopes & Development 2019 Resource

• Pit constrained resources are quoted at a 0.7 g/t AuEQ cut-off. Underground resources are quoted at a 5.0 g/t AuEQ cut-off.
• AuEQ = Au (g/t) + {Ag (g/t) /75]
• Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources

estimated will be converted into mineral reserves.

• Resources are reported in-situ and undiluted for both pit constrained and underground scenarios and are considered to have reasonable prospects for economic

extraction.

• In accordance with NI 43-101 recommendations, the number of metric tonnes was rounded to the nearest thousand. Any discrepancies in the totals are due to

rounding effects.

• Maximum pit depth 236 m, average 180 m
• Strip ratio of 7.5:1

Pit Constrained Resources Underground Resources

11 11

MINE DESIGN

• Two main pits
• North pit (21

Zones) with 4 phases

• South pit (22 Zone)
• Waste dumps
• One main waste

dump

• Limited backfilling
• f pit

Waste Dump South Pit North Pit

NEAR MINE UPSIDE POTENTIAL

12 12

21 21A 21 21B 21 21C 21 21C NEX EX 10 109 22 22

OPEN

Footwall Feeders Exploration Potential Eskay Creek Depth Extension 22 Feeder Zone Depth Potential

2019 Resources Historical Stopes & Development Drillhole Intersections > 4.0 g/t AuEq >2.0 metres

21 21E

NEAR MINE UPSIDE POTENTIAL

13 13 SK-19-053

27.61 g g/t /t AuEq 9.40 m 0 m

SK-19-063:

314. 14.07 g g/t A AuEq 2.21 21 m m

SK-19-052

17.49 g g/t /t A AuEq 7. 7.54 m m

0.0 1.0 2.0 3.0 4.0 5.0 6.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

Average G Grades ( s (g/t) of Open-Pit Develop

• pment P

Projects W s Worldwi wide

OPEN-PIT COMPARISONS

14 14

Average G Grades s (g/t) of

• f Open-Pit D

Develo lopme pment nt Projects in N North America a and A Australi lia

• Avg. Grade (g/t) – Reserves & Resources

North American and Australian Average Open-Pit Grade

Esk Eskay C Cre reek 4.34 g 4 g/t AuEq Ope pen-Pi Pit

Worldwide Average Open-Pit Grade 1.50 g 0 g/t

Source: S&P Capital IQ

Eskay ay Cre reek 4.34 g g/t AuEq Open-Pit it

• Avg. Grade (g/t) – Reserves & Resources

1.46 g 6 g/t

MARKET CAPITALIZATION ($M CAD)

15 15

$1,683 $1,047 $825 $781 $673 $500 $403 $300 $277 $222 $213 $201 $112 $65 $65

Mar arket Cap Cap ( ($M CA CAD)

Source: Agentis Capital, Oct 29, 2019

P/NAV

1.0x 0.9x 0.9x 0.8x 0.7x 0.6x 0.6x 0.6x 0.6x 0.6x 0.6x 0.5x 0.3x

• SKE 0

0.1 .1x N NAV

P/NAV AV 0.1 .1x

$970 $684 $389 $360 $324 $310 $289 $233 33 $194 $161 $123 $113 $101 $74

INITIAL CAPEX (USD)

16 16

SKE $233 (US $233 (USD $M $M) )

LOM ANNUAL PRODUCTION

US USD $M $M

337 330 306 259 218 198 190 124 120 116 98 97 95 79

LO LOM ( (ko koz Au AuEq)

SKE +306 +306 ko koz Au AuEq

Source: Argentis Capital, Oct.29, 2019

AISC CURVE BENCHMARK

17 17

Eskay Creek LOM AISC

• f US$757/oz (AuEq)

Production ( (%) 25 25 50 50 75 75 100 00 All All-In In-Sustaining C Cost ($/oz) 500 00 1,000 1,500 2,000 2,500 3,000

Source: S&P Global Market Intelligence; Based on reported/actual data where available

SNIP GOLD PROJECT

• 100% owned (acquired from

Barrick July 2017)

• Hochschild Mining has option

to acquire 60%

• Produced 1.1 million o
• unces

es o

• f

gold d at average ge grade de of 27.5 g/ g/t from 1991 to 1999

• 280,000 m of historical

surface & underground drilling

• 8,435 m underground

development

• Exploration & 200 Footwall

delineation drilling planned for H2 2019

18 18

Un Underground drilli lling a at S Snip h hole le UG17-001

19 19

SNIP 200 FOOTWALL - SECTION 4660E

SKE 2016 Drillhole

16. 16.24 g g/t A Au 13. 3.50 50 m m

• Skeena leveraged strong First Nations & government relationships to create the British

Columbia Regional Mining Alliance (BCRMA)

• The BCRMA is a partnership between the Tahltan Central Government, the Nisga’a

Lisims Government, industry, AME BC & the provincial government to promote mining investment in the Golden Triangle of northwest BC

• Industry partners selected to join the Alliance must focus on socially & environmentally

responsible resource development rooted in local partnerships

20 20

SKEENA CAPITAL STRUCTURE

21 21

Cap apit ital l Structure

Current Shares Outstanding 115,289,676 Market Capitalization (CAD$0.57) $65.7 Million 52 Week High $0.58 52 Week Low $0.27 Warrants (exp. March 2020 – June 2020, $0.90 – $1.00) 9,962,509 Options (exp. November 2019 – August 2024, $0.41 – $1.50) 11,502,000 Shares Fully Diluted 136,754,185 Strategic Ownership Hochschild Mining plc 6.5%

All figures as of Nov 6, 2019

• Nov. 6, 2018 – Nov 6, 2019

Share Price - TSX.V: SKE

22 22

Kelly Earle, Vice President Communications

info@skeenaresources.com +1 604 684 8725 Suite # 650 - 1021 West Hastings Street Vancouver, BC V6E 0C3 Canada

www www.skeenaresources. s.com

TSX.V: S SKE / / OTCQX: S SKREF / / FRA RA: RXF RXFB

APPENDIX ESKAY CREEK PEA

23 23

24 24

Assumptions

Gold Price (US$) $1,325 325 Silver Price (US$) $16 16 Exchange Rate (US$/C$) 0.77 77 Discount Rate 5% 5% Royalties 1% 1%

Processing

Processing Throughout (TPD) 6, 6,85 850 Average Diluted Gold Grade (g/t) 3.23 23 Average Diluted Silver Grade (g/t) 78 78 Average Diluted Gold Equivalent Grade (g/t) 4.17 17

Mining

Mine Life (Years) 8.6 .6 Strip Ratio (Waste: Mineralization) 7.2 .2:1 :1 Total Tonnage Mined (kt) 175, 75,270 Total Mineralized Material Mined (kt) 21 21,30 307

Production

Gold

• ld R

Recovery 91 91.1% Silv lver R Recovery 92. 92.4% LOM G Gold Pr Produ duction ( (ko koz) 2,022 22 LOM Sil Silver Pr Produ duction ( (ko koz) 49, 49,872 LOM G Gold E Equival alent Pr Produ duction ( (ko koz) 2,624 24 LOM A Ave verage A Annual G l Gold ld P Production

• n (

(ko koz) 236 36 LOM A Ave verage A Annual S l Silv lver P r Production

• n (

(ko koz) 5,81 812 LOM A Ave verage A Annual G l Gold ld E Equivale lent Pr Produ duction ( (ko koz) 306 06

Contained Metals

Contain ained G d Gold O d Ounces ( (ko koz) 2, 2,212 12 Contained S Silver O r Ounces ( (ko koz) 53,404 404 Contain ained A d AuEq O Ounces ( (ko koz) 2,857 57

Capital Expenditures

Pre-Production Capital Expenditures (C$M) $303 303 Sustaining Capital Expenditures (C$M) $27 27 Reclamation Cost (C$M) $52 52

Operating Costs

Mining Cost (C$/t Mined) $3. $3.44 Mining Cost (C$/t Milled) $26. 26.32 Processing Cost (C$/t Milled) $21 21.64 G&A Cost (C$/t Milled) $6. $6.06 Total Operating Cost (C$/t Milled) $54 $54.03

Cash Costs and AISC

LOM Cas Cash Co Cost ( (US$ S$/oz A Au) N Net o

• f Sil

Silver By By-Pr Produ duct $582 582 LOM Cas Cash Co Cost ( (US$ S$/oz Au AuEq) C ) Co-Pr Produ duct $731 31 LOM A M AIS ISC ( (US$/oz A Au) N Net of

• f Silver B

By- Pr Produ duct $61 615 LOM A AISC ( C (US$ S$/oz A AuEq) C Co-Pr Product $757 57

APPENDIX - DETAILED PARAMETERS & OUTPUTS

25 25

APPENDIX - CAPITAL COSTS

Contingen ency Initial Sustai aining LOM To Total

Mine

Pre-Stripping $62 $62 Mining Equipment $14 $6 $20 Mine Capital $7 $3 $9 Sub-Total Mine $4 $83 $9 $91

Processing

Bulk Earthworks $7 $7 Processing $74 $7 $81 Reagents & Plant Services $7 $1 $8 Tailings & Water Treatment $19 $2 $21 Onsite Infrastructure $22 $2 $23 Sub-Total Processing $21 $129 $12 $141

Infrastructure

Power $13 $13 TSF, Water Supply & Treatment $2 $4 $6 Sub-Total Infrastructure $5 $15 $4 $19 Total Directs $226 $24 $250 Indirects $7 $27 $27 Total Directs + Indirects $253 $24 $277

Owner’s Costs

$4 $10 $10 Total excluding contingency $263 $24 $287

Project Contingency

$40 $3 $43 Sub-total including contingency $303 $27 $330 Closure $52 $52

To Total

$303 303 $79 79 $382 382

26 26

APPENDIX - FLOWSHEET & MASS BALANCE