G O L D R O Y A L T I E S FOCUSED ON NORTH AMERICAN GOLD ROYALTY ASSETS C O R P O R AT E P R E S E N TAT I O N SEPTEMBER 2019 TSX-V: ELY OTCQB: ELYGF elygoldinc.com FOCUSED ON NORTH AMERICAN GOLD ROYALTY ASSETS TSX-V: ELY OCTQB: ELYGF
FORWARD LOOKING STATEMENTS This presentation contains statements concerning Ely Gold Royalties’ acquisition, development, and marketing of North American precious metal resource properties and the Company’s intent to sell or option portfolio properties, while reserving any royalties. Such forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect. Although Ely Gold Royalties believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties include, but are not limited to, risks associated with geological, geometrical and geophysical interpretation and analysis, the ability of the Company to obtain financing, equipment, supplies and qualified personnel necessary to carry on exploration, exploitation or acquisition of properties and the general risks and uncertainties involved in mineral exploration and analysis. The forward-looking statements or information contained in this presentation are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. FOCUSED ON NORTH AMERICAN GOLD ROYALTY ASSETS 2 TSX-V: ELY OCTQB: ELYGF
AN EMERGING NORTH AMERICAN ROYALTY COMPANY PURCHASING AND GENERATING ROYALTIES Successful 3 Producing Royalty Generation Royalties in the Model Portfolio in 2019 Nevada & North G O L D America Focused (#1 Purchased ROYALTIES Mining Jurisdiction) 4 Royalties to Date 2019 ROYALTY PROJECT COMPANY GENERATOR In the “Sweet Spot” for Purchasing Royalties ($2-5MM Deals) 33 Deeded Royalties 90% Being Developed Valuation Established- Revaluation is Eminent Revenue & Cash Growth: $3M+ ( est) in 2019 Royalty & Option Payments FOCUSED ON NORTH AMERICAN GOLD ROYALTY ASSETS 3 TSX-V: ELY OCTQB: ELYGF
CORPORATE OVERVIEW – AUGUST 2019 Common Shares O/S 99,640,929 2019 KEY INVESTMENT STRATEGIES Total Shares F/D 127,225,583 • Focused on stronger capital structure (July, 2019) Warrants 9,000,000 • 11% Management and Insiders • 25% Tightly held by long-term shareholders Options 8,100,000 • 10% Exploration Capital Partners (Sprott) Stock Price $0.33 • 5% Eric Sprott Market Cap $32,881,507 • Continue to purchase third party royalties Unrestricted Cash $3,050,000 • Focus on producing and development royalties Investments $900,000 • Maximize Option Portfolio revenue Total Debt $650,000 • Maintain burn rate at approx. $400,000/quarter Enterprise Value $29,581,507 BULLISH LONG-TERM CHART FOCUSED ON NORTH AMERICAN GOLD ROYALTY ASSETS 4 TSX-V: ELY OCTQB: ELYGF
MANAGEMENT Team Ely Gold ² Depth of experience in capital markets, mining, finance ² Successful value & option generation – over 100 property acquisitions subsequently leased or sold ² Proven track record for enhancing projects via claim consolidation, data compilation and permitting with federal agencies ² Low corporate overhead & burn rate with only two full-time employees SENIOR MANAGEMENT • Over 40 years of brokerage and venture capital experience with Merrill Lynch, Kidder Peabody and Paine Webber Trey Wasser • Currently President and a Director of Research for Pilot Point Partners President & CEO, Director • Founder of Due Diligence Tours organizing analyst tours to hundreds of mining projects in North America • Over 30 years experience in mineral exploration in USA, Mexico and South America Jerry Baughman, BSc, PGeo • Nevada evaluating gold and silver properties in North and South America, President, Nevada Select leasing a number of properties to senior and junior mining companies Royalties, Inc • Former geologist and management positions with Southwestern Gold, Cambior (USA), Gryphon Gold, Fronteer Gold and Pilot Gold. • Has held senior and consultant positions with both public and private Xavier Wenzel, CPA international natural resource companies Chief Financial Officer • Served as CFO for several exploration companies • Over 25 years experience in global mining sector • Former geologist with Cominco, Eskay Creek and the Petaquilla. Stephen Kenwood, BSc, Pgeo • Currently President and a Director of Majestic Gold Corp., Director of Corporate Secretary Sonoro Metals Corp. • Acting QP for Ely Gold Royalties and Corporate Secretary FOCUSED ON NORTH AMERICAN GOLD ROYALTY ASSETS 5 TSX-V: ELY OCTQB: ELYGF
DIRECTORS Team Ely Gold ² Depth of experience in capital markets, mining, finance Successful value & option generation – over 100 property acquisitions subsequently leased or sold ² ² Proven track record for enhancing projects via claim consolidation, data compilation and permitting with federal agencies ² Low corporate overhead & burn rate with only two full-time employees DIRECTORS • Over 30 years experience with start-up, development and financing of early stage mining companies. Tom Wharton • Director of Angel Gold, DV Resources and Dolly Varden Silver • Chairman of the Audit and Compensation committees • Over 30 years experience in global mining sector William M. Sheriff, MSc • Founder and Executive Chairman of Golden Predator Corp • Currently serves as director of enCore Energy • Over 20 years experience in global mining sector Ron K. Husband, MBA • Currently Director of Sonoro Metals Corp. FOCUSED ON NORTH AMERICAN GOLD ROYALTY ASSETS 6 TSX-V: ELY OCTQB: ELYGF
GOLD ROYALTY COMPANIES OFFER BETTER LEVERAGE FOR GOLD HOLDINGS Gold ETFs Gold Equities Gold Royalties • < than Physical Gold • > than Physical Gold • > than Physical Gold • No Operating Costs • Construction Risk • No Construction Risk • No Construction Risk • Operating Risk • No Operating Costs • No Exploration Upside • Expensive Exploration • Zero Cost Exploration • Low Overhead Upside Upside • No Dividends • Extensive Overhead • Low Overhead • Low/No Dividends • Good Dividends • Less Diversified • Organic Growth • Gold Stock Indexes • Diversification Underperform Gold (Assets, Company & Geography) MAJOR ROYALTY COMPANIES HAVE OUT-PERFORMED S&P JUNIOR ROYALTY COMPANIES OUT-PERFORM IN EARLY YEARS FOCUSED ON NORTH AMERICAN GOLD ROYALTY ASSETS 7 TSX-V: ELY OCTQB: ELYGF
MAJOR GOLD ROYALTY COMPANIES HAVE SIGNIFICANTLY OUTPERFORMED GOLD CONCLUSION: GOLD ROYALTY COMPANIES SHOULD BE AN IMPORTANT PART OF YOUR GOLD ALLOCATION STRATEGY FOCUSED ON NORTH AMERICAN GOLD ROYALTY ASSETS 8 TSX-V: ELY OCTQB: ELYGF
MAJOR GOLD ROYALTY COMPANIES HAVE OUTPERFORMED GOLD AND THE S&P CONCLUSION: GOLD ROYALTY COMPANIES SHOULD BE AN IMPORTANT PART OF YOUR PORTFOLIO REGARDLESS OF YOUR GOLD ALLOCATION STRATEGY FOCUSED ON NORTH AMERICAN GOLD ROYALTY ASSETS 9 TSX-V: ELY OCTQB: ELYGF
ELY GOLD HAS STARTED TO PERFORM AS A ROYALTY COMPANY FOCUSED ON NORTH AMERICAN GOLD ROYALTY ASSETS 10 TSX-V: ELY OCTQB: ELYGF
GOLD ROYALTY COMPANIES LEVERAGED GROWTH THROUGH REVALUATION Major Royalty Co. SHARE RE-RATINGS WITH SCALE= +$5B Mkt Cap • PRICE APPRECIATION & 1.5-2X NAV • ACCRETIVE ACQUISITIONS 20-25X Cash Flow Mid-Tier Royalty • Solid Dividends & • Dividend Increases $300M-$1B Mkt Cap • Out-performs all • • 1-1.5X NAV Junior Royalty Co. Equities • 15-20X Cash Flow Clear Development • $100-300 Mkt Cap • Growth Development assets • • Increased Liquidity Few Producing • Dividends • Emerging Royalty Difficult NAV Calc • Growing Cash Flow • < $100M Mkt Cap • $2-10 Revenue • Ely Gold Royalties • Small/No Dividends • The Next Junior RC Improving Liquidity • JUNIOR ROYALTY COMPANIES ARE SIGNIFICANT OUT-PERFORMERS IN THEIR EARLY YEARS FOCUSED ON NORTH AMERICAN GOLD ROYALTY ASSETS 11 TSX-V: ELY OCTQB: ELYGF
PEER COMPARISON - ELY GOLD UPSIDE CASE IN THE JUNIOR ROYALTY SPACE Abitibi Metalla Ely Gold Market Capitalization (CAN$MM) $168.8 $155.9 $30.7 Cash & Equivalents (CAN$MM) $38.0 $11.5 $3.65 Capitalization Debt (CAN$MM) $0.0 $9.3 $0.65 Enterprise Value (CAN$MM) $130.8 $153.7 $27.7 Current Price $13.50 $1.19 $0.33 Performance - 52 Week Low $7.98 $0.63 $0.09 Trading Performance - 52 Week High $13.50 $1.30 $0.41 Performance - Last 12 Months (%) 69% 89% 267% Jurisdictional Focus Quebec International Nevada Commodity Focus Au Au / Ag Au Portfolio Breakdown # of Royalties / Streams 28 / -- 40 / 2 33 / -- # of Producing Royalties / Streams 1 / -- -- /2 3 / -- ABITIBI ROYALTIES SANDSTORM GOLD METALLA ROYALTY +3,625% IN YEARS 1-5 +680% IN YEARS 1-3 +400% IN YEARS 1-2 FOCUSED ON NORTH AMERICAN GOLD ROYALTY ASSETS 12 TSX-V: ELY OCTQB: ELYGF
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