Gold in the Heart of the Yukon December 4, 2018 Forward-Looking - - PowerPoint PPT Presentation

gold in the heart of the yukon
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Gold in the Heart of the Yukon December 4, 2018 Forward-Looking - - PowerPoint PPT Presentation

Gold in the Heart of the Yukon December 4, 2018 Forward-Looking Statement and Disclaimer Forward-Looking: This Presentation includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking


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Gold in the Heart of the Yukon

December 4, 2018

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Mayo Lake Minerals Inc. 2

Forward-Looking: This Presentation includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes,” “anticipates,” “expects,” “estimates,” “may,” “could,” “would,” “will,” or “plan.” Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and

  • pportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this

presentation includes, but is not limited to, the Company’s objectives, goals or future plans, statements, acquisition and maintenance of licenses and permits, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward- looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in

  • btaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to

accommodate First Nations, other indigenous peoples, and owners of surface rights, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development

  • industry. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release

are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. Cautionary Note to United States Readers Concerning Estimates of “Measured,” “Indicated” and “Inferred Mineral Resources”: This presentation uses the terms “Measured,” “Indicated,” and “Inferred Mineral Resources” in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards. United States (US) readers are advised that while such terms are recognized under Canadian securities legislation, the US Securities and Exchange Commission does not recognize these terms. The term “Inferred Mineral Resource” refers to a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. These estimates are based on limited information and it cannot be assumed that all or any part of an “Inferred Mineral Resource” will be upgraded to a higher classification resource, such as “Indicated” or “Measured,” as a result of continued

  • exploration. Accordingly, an estimate relating to an “Inferred Mineral Resource” is insufficient to allow meaningful application of technical and

economic parameters or to enable an evaluation of economic viability. Under Canadian securities legislation, estimates of an “Inferred Mineral Resource” may not form the basis of feasibility or other economic studies. As a result, US readers are cautioned not to assume that all or any part of an “Inferred Mineral Resource” exists, or is economically or legally mineable. Readers are also cautioned not to assume that all or any part of “Measured” or “Indicated Mineral Resources” will ever be converted into “Mineral Reserves” (being the economically mineable part of an “Indicated” or “Measured” Mineral Resource). Confidentiality and Disclaimer: The information contained in this presentation is provided by the Company and its management concerning their respective histories, businesses, properties proposed and real transactions, management personnel and capitalizations and is not to be reproduced in whole or in part in any form, electronic or otherwise, or presented to others, without the express permission from the Company. It is not intended to provide legal, accounting or tax advice and should not be relied upon in that respect. No warranty, representation or guarantee with respect to the accuracy, timeliness or completeness of the information is given.

Forward-Looking Statement and Disclaimer

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Mayo Lake Minerals Inc. 3

2018: The Year In Review

  • Establish most efficient procedure to raise funds and go public
  • Non-offering IPO on Canadian Securities Exchange (CSE)
  • Utilize subscription receipts
  • Improve and rectify company’s filings and structure; update financials: initiate prospectus

and listing application

  • budget for various exploration scenarios and discuss work agreements with various contractors
  • Obtain class 3 and 4 land use permits for drilling and other pre-mining development through negotiations

with Yukon and Na-Cho Nyäk Dun First Nations; good for 10 years (adds value to Mayo Lake)

  • Complete ground magnetic surveys on two properties to maintain property’s good standings; partially

funded by YMEP Grant (adds value to Mayo Lake)

  • Market subscription receipts to raise minimum
  • f $1.3 million to enable a public listing and

to provide funds for required exploration

  • late start to funding campaign
  • early optimism; subscriptions include

conditional agreement to invest $675K; disappointment and eventual cancellation due to extremely negative market

    

 Objectives Achieved  Learning Experience

2018

Mayo Lake begins financing $675,000 Conditional Offer Positive Market Extreme Negative Market

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Mayo Lake Minerals Inc. 4

The Year Ahead: 2019 Goal

Raise sufficient funds to list on Canadian Stock Exchange (CSE) and complete exploration program Factors required for successful funding:  Confirmed in place  Indication of positivity Company and assets worthy of investment Exploration targets with excellent potential for meaningful discovery Effectively-priced offering Efficient procedure to go public and to raise required funds Market favourable to financing

    

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Mayo Lake Minerals Inc. 5

Management Expertise

  • Dr. Vern Rampton, P.Eng., President, CEO and Director
  • ver 20 years field experience in Yukon
  • negotiated Kinbauri Gold Corp’s acquisition of the El Valle/Carlés

mines and mill in northern Spain for $5 million in 2007. In 2009, Orvana Minerals acquired Kinbauri for $50 million.

  • founder, senior advisor and director of Carube Copper Corp and

president, CEO and director of Auropean Ventures Inc. Tyrell Sutherland, M.Sc., P.Geo., Vice President Exploration

  • 10 years field-oriented experience in northern Canada
  • exploration geologist with experience spanning 3 continents

and a variety of mineralized terrains

  • formerly employed with Anglo-Gold Ashanti, Goldcorp,

Ivanhoe Mines China Jeffrey Ackert, BSc., Chief Technical Officer and Director

  • ver 25 years experience in mineral exploration
  • Lac Minerals 1990-1994; Barrick Gold Corp. 1994-1996
  • Orezone Resources Inc. 1996-2007; CEO and President of

Carube Copper Corp. Lee Bowles, Independent Director

  • managing partner, Ironstone Capital Corp. since 2012
  • involved with several leading independent dealers in Toronto, New

York and London in the areas of fixed income trading, investment banking and institutional equity sales since 1994

  • director at Richmond Minerals Inc. since 2005

Greg LeBlanc, B.A., M.A., Independent Director

  • ver thirty-five years’ experience in the currency and financial

industries

  • Vice-President RBC 1996-2009; specialized in commodity and

currency trading

  • n the boards of several quasi-governmental institutions

Darrell Munro, BBA. LL.B., Corporate Administrator

  • 10 years practice of law
  • 10 years in capital markets
  • 25 years corporate administration for both public and private

companies

Officers and directors have extensive experience in mineral exploration and project development and participated in Au/Cu acquisitions, discoveries, mining developments in Canada, USA, Jamaica, Europe and Africa. Rampton and Sutherland have backgrounds in Yukon exploration.

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Location — properties in favourable mineral environment

  • Large holding of underexplored

prospective ground; 1139 claims covering 231 square kilometres

  • Similar geologic environment to

Newmont-Goldstrike Resources’ Plateau Project (65.3g Au/t over 13.8m), a high-grade orogenic lode gold deposit within the Tombstone Plutonic Belt

  • Eagle Gold Deposit at Dublin

Gulch (4.1M oz Au *) and Keno Hill Mines (262M oz Ag +) shows the potential for intrusion-related gold and base metal veining

  • Alluvial placer operations

associated with properties

  • Most claim groups are close to

Mayo and accessible by road Mayo Lake’s exploration confirms corporate value

  • Flagship Anderson-Davidson property has multiple high-potential drill targets on Anderson Gold Trend
  • High potential areas on Trail-Minto and Carlin-Roop ready for trenching to focus follow-up drilling
  • Geochemistry has identified gold potential Edmonton and Cascade; more definition of targets required

* Measured and indicated reserves (Victoria Gold); + Historic minimum reported; silver from early days not recorded

Mayo Lake Minerals Inc. 6

Mayo Lake’s Compelling Land Position 

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Mayo Lake Minerals Inc. 7

Prolific Mineral Setting Highlights Property Potential

Models for discovery on Mayo Lake Mineral Claim Groups: Plateau Project, Eagle Deposit, Keno Hill Mines Eagle Deposit Low-grade intrusion-related gold Global Resource — 9.5 Moz Au at 1.08g Au/t M & I Resources — 4.1 Moz Au at 0.64g Au/t Mine under development Plateau Project High-grade orogenic lode gold 13.3g Au/t over 17.5m

12.5g Au/t over 21m

Newmont earning 75% for $53MM

Mayo Lake Minerals Properties

Keno Silver Mines Reported 262 Moz Ag mined Alexco’s next phase of mining 33.3Moz Ag at 628g Ag/t

1 All numbers sourced

from company releases

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Mayo Lake Minerals Inc. 8

Anderson Gold Trend With 2019 Drill Plans

  • Anderson-Owl occurrence: drilling to determine width and grade of hanging wall structure
  • Steep Creek and Peak: drilling of Au + As ± Sb anomalies to determine nature of associated mineralization
  • Anderson Gold Trend: fill-in soil sampling, Anderson-Owl to southeast of Steep Creek, to identify more targets

Good probability for discoveries of

  • re-grade rock
  • Long history of placer

mining on Davidson, Owl, Anderson and Steep creeks

  • Soil sampling and

trenching delineated drill targets and other prospective areas

  • Soil anomaly over 2km

in length along 4 km topographic lineament

  • Float samples up to

3.5g Au/t at Anderson-Owl

  • Gold occurrence with

mineralization similar to that at the Plateau Project; 0.8g Au/t over 6.1m from surface, including 0.9g au/t

  • ver 3.1g Au/t located on

fringe of structure (halo?) Edge of Anderson- Davidson Property

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Mayo Lake Minerals Inc. 9

Trail-Minto Gold Potential and 2019 Trenching Targets

High potential for mineralization similar to that at Victoria Gold, Eagle Gold Deposit (Dublin Gulch)

  • Gold mineralization

probably relates to veining in Roaring Forks Stock and adjacent tectonized wall rock

  • Linear gold in soil anomalies

continuous for >8km along strike adjacent and parallel to 10km long Roaring Fork Stock

  • Gold in soils over Roaring

Fork Stock may reflect intrusion-related mineralization

Bedrock Structures on Total Mag Trail-Minto Property

  • Trenching to determine nature of mineralization and distribution in overburden

Trenches

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Mayo Lake Minerals Inc. 10

Carlin-Roop Precious Metal Potential and 2019 Trenching Target

High probability for silver ± gold ore-grade drill intersections

  • Up to 45 g Ag/t in soil

within 300m long >10 g Ag/t anomaly

  • Ag anomaly potentially

>1km in total length

  • Irregular-shaped, 700m

long gold in soil anomaly, with values up to 58 ppb Au

  • 350m long gold in soil

anomaly returning values up to 24 ppb Au

  • Favorable magnetics;

distinct magnetic lineations indicate off- sets and dilation zones

  • Located at east end of

Keno Hill Silver Camp

  • Trenching to determine nature of grade of silver and associated mineralization plus its distributors in soils

Trenches

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Mayo Lake Minerals Inc. 11

Corporate Share Structure Supports Valuation

+ Market Cap as determined by averaging of (i ) share raises and issuances with present share

pricing, (ii)past mineral property and exploration costs and (iii) peer comparables *Shares issued multiplied by 10¢; debt converted to shares; all transactions have been at 10¢/share

Basic Market Cap for MLM: $5.24 million*

Common Shares Outstanding 49,609,186 Restricted Share Units @ $0.10 1,125,000 Stock Options at $0.10 2,100,000 Warrants at $0.15 6,261,775 Finders Warrants at $0.12/0.15 242,865 Fully Diluted Shares 59,338,826 Float 50.6% Directors And Officers 9.8% Rampton Group 21.0% Related Company 18.6%

  • All transactions have been at

10 cents per share, including those at arm’s length

  • Sector Calculated Market Cap

established at $5.41 million+ by standard industry methodology; strongly supported during 2018 marketing campaign by knowledgeable investors

  • Favourable amount of float

available for trading (liquidity)

  • Significant number of shares held

by seasoned officers and directors and related company; principals have significant “skin” in the game

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Mayo Lake Minerals Inc. 12

Comparative Market Cap Valuations

Average of 3 excellent comparables

2 4 6 8 10 12 14 16 18 Mayo Lake Minerals Taku Gold Generic Gold Luckystrike Blind Creek Pacific Ridge Arcus Banyan Gold Metallic Goldstrike Millions $

Comparable Yukon Gold Companies 3

1

Average of 7 comparables2

  • 1. MLM Basic Market Cap $5.24MM as of October 2, 2018 with debt converted at 10¢/share
  • 2. Nine comparables minus highest and lowest MC as of October 2, 2018
  • 3. All numbers based on October 2, 2018, 5 days averages

EXCELLENT COMPARABLES GOOD COMPARABLES $8.04MM $6.59MM2

Corporate Peer Market Caps Suggest a 6.6MM to 8.0MM Market Cap for Mayo Lake Minerals

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Mayo Lake Minerals Inc. 13

Efficient Procedure to Go Public

Non-Offering Prospectus on the Canadian Securities Exchange Private Placement of Units Plus Canadian Stock Exchange (CSE) Non-offering IPO via Subscription-Receipt Units

  • CSE much less expensive than TSXV to obtain and maintain listing
  • Mayo Lake shareholder distribution qualifies it for CSE listing, no need for RTO
  • Non-offering IPO is most efficient means as RTO expensive and lead to shareholder

dilution

  • CSE liquidity is basically equal to that of TSXV

(RTO or amalgamation will be considered if the other party brings significant cash and/or assets into the transaction) Estimated raise of $1.0 million to successfully list and cover the following costs

  • Phase 1 drilling at flagship property as recommended by N.I.43-101
  • Prospectus and listing costs plus cost of sales
  • 12 months working capital

Will not cap raise; $1.8 to $2.2 million will allow more drilling and work in 2019 at Anderson-Davidson and on additional properties to further increase company value. Terms of Units: Ten cents for one share and one warrant with exercise price of fifteen cents for period of three years from date of public listing.

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Mayo Lake Minerals Inc. 14

Positive Outlook Moving Forward

In Play For 2019 Financing and During 2018 Financing Experienced management Properties and exploration plan with high probability for positive discovery Conservatively valued company Well-priced offering at early stage of exploration mining cycle Highly Anticipated to be in Play for 2019 Financing: Absent During 2018 Financing Appreciating gold value during marketing in first quarter of gold’s annual price cycle Marketing will occur during probable initiation of gold bull run

     

 Confirmed in Place

 Very high probability  Anticipated, favourable

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Mayo Lake Minerals Inc. 15

Mining Exploration Company Life Cycle

Mayo Lake has numerous good prospects to initiate the Speculation Segment of the cycle

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Mayo Lake Minerals Inc. 16

Case Studies of Mining Exploration Cycle and Discovery Appreciation

Projected Present Position

  • f Mayo Lake

Projected Present Position

  • f Mayo Lake

Note that short reversals do occur in any trend

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Mayo Lake Minerals Inc. 17

Share Value Appreciation — Recent Discoveries

Zonte Metals Inc. (TSV-V: ZON)

Present Share Price of Mayo Lake Present Share Price of Mayo Lake

GT Gold Corp. (TSV-V: GTT) Discovery Zonte announces Yukon Acquisition

More Good News Company Inactive in Yukon and Negative Market Effect Temporary Reversal Negative Market Effect Temporary Reversal

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Mayo Lake Minerals Inc. 18

Annual Gold Price Cycle

  • First Quarter best

for juniors to finance

  • Gold Price

Appreciation January — March 2013 – 2018

  • Juniors have had

financing success during first quarters of last five years

  • 2016 financings

continue through summer

  • Gold has been

consolidating in late 2018

Expectations for first quarter gold price appreciation in 2019, possibly amplified by bullish sentiment

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Mayo Lake Minerals Inc. 19

Initiation of Gold Bull Market: 2019 Probability Increasing

Factors for bullish gold price movement appear positive

  • Gold price most strongly correlated with inflation expectation and inflation; inflation expectations

in place; worldwide events and financial circumstances, especially in USA, point to inflation

  • Enhanced by federal banks of major economies producing real negative interest rate;

large USA debt inhibits raising of nominal interest rates and printing of fiat money – real interest rates become increasingly negative

  • Noise; independently may cause small short term changes in gold price
  • changes in nominal interest rates without change to real interest rates
  • changes in USD price index without changes to inflation
  • political crisis and natural disasters; only meaningful to gold price if they change

expectations of inflation expectation

  • Junior mining share prices can be expected to leverage major changes to gold price movement

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Mayo Lake Minerals Inc. 20

Present Activity

  • Completing private placement to pay for exploration and ongoing work to prepare for 2019 and to

provide a portion of cash in bank required for CSE listing; closing no later than December 31, 2018

  • Preparing for major funding to take Mayo Lake public in first half of 2019; goal is to complete

financing by end of February

  • Maintaining relationships with stakeholders
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Mayo Lake Minerals Inc. 21

Contacts

Darrell Munro, Corporate Administration Tel: 613-836-2594 E-mail: darrellmunro@mayolakeminerals.com Vern Rampton, President & CEO Tel: 613-836-2594 E-mail vrampton@mayolakeminerals.com Tyrell Sutherland, Vice President Exploration Tel: 613-884-8332 E-mail: tsutherland@mayolakeminerals.com Corporate Office P.O. Box 158, 110 Westhunt Drive Carp, Ontario K0A 1L0 Toll Free: 1-844-639-3258 Tel: 613-836-2594 Fax: 613-839-0464

www.mayolakeminerals.com

MLMCP181017

PHOTOS: T. Sutherland, J. Judson, H. Girard, J. Demers, J. Sullivan