INV-TSX Canadian based Ecuadorian mining development company - - PowerPoint PPT Presentation

This presentation contains certain forward-looking statements. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of INV Metals Inc. (“INV Metals”) to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the actual results of exploration activities, conclusions of economic evaluations and the assumptions on which such economic evaluations are based, the industry-wide risks and Loma Larga Project-specific risks which are identified in the technical report (the “Technical Report”) that summarizes the Preliminary Feasibility Study (the “PFS”) available on SEDAR, risks associated with mining and mineral exploration activities, uncertainty in the estimation of Mineral Resources and Mineral Reserves, including, without limitation, the assumptions on which such estimates are based, changes in Loma Larga Project parameters as plans continue to be refined, uncertainty surrounding metallurgical test results, future prices of metals, economic and political stability in Ecuador and Canada, the results of discussions with the Ecuador government, the risk of future unfavourable tax law or regulation changes in Ecuador, environmental risks and hazards, increased infrastructure and/or operating costs, availability of future financing, labour and employment matters, and government regulation. There is no guarantee that any drill targets or economic mineral deposits will be found on INV Metals’ properties. For a more detailed discussion of such risks and other factors, refer to INV Metals’ annual information form (the “AIF”) and other regulatory filings filed with Canadian securities regulators available on SEDAR. Except as required by law, INV Metals does not assume any obligation to release publicly any revisions to forward-looking statements contained in this presentation to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The scientific and technical information contained in this presentation has been reviewed and approved by Bill Shaver, P.Eng., COO, INV Metals Inc. and a Qualified Person under NI 43-101. For readers to fully understand the information in this presentation, they should review the Technical Report in its entirety, including all of the qualifications, assumptions and exclusions that relate to the information set out in the Technical Report, which qualify the technical information contained in the Technical Report. The Technical Report is intended to be read as a whole, and sections should not be reviewed or relied upon out of

• context. The Technical Report also describes the Mineral Resource and Mineral Reserve estimation methodologies and the assumptions used, and to

which those estimates are subject. As noted above, the AIF includes details of certain risk factors that could materially affect the potential development of the Mineral Resources and Mineral Reserves and should be considered carefully. “Adjusted Operating Costs”, “All-in Sustaining Costs”, and “Total Operating Costs per Tonne” are non-International Financial Reporting Standards (“IFRS”) Performance Measures. These performance measures are included because these statistics are key performance measures that management uses to monitor performance. Management uses these statistics to assess how the Loma Larga Project ranks against its peer projects and to assess the overall effectiveness and efficiency of the contemplated mining operations. These performance measures do not have a meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS. All references to currencies herein, unless otherwise noted, are to U.S. dollars.

INV-TSX

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Undervalued at 0.11x NAV

INV-TSX

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Canadian based Ecuadorian mining development company Positive mining and tax regimes in Ecuador Proven mine building/financing team Great exploration potential ▪ Loma Larga – new discovery to the west ▪ 4 regional concessions – encouraging initial results ▪ Tierras Coloradas – high grade rock chip samples include up to 240 g/t gold in surface veins Loma Larga on Pathway to Development ▪ Simple mine and process design ▪ Robust PFS ▪ Feasibility Study ongoing (Q4/2018) ▪ Goal of production in 2021

INV-TSX

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“In Ecuador we promote the development of responsible mining with nature, environmentally sustainable, economically profitable and socially just.”

▪ Government recently announced “Prosperity Plan” for 2018-2021 ▪ Commitment to encourage foreign investment ▪ Mining is expected to play significant role in the development of the economy ▪ Inter-American Development Bank will support Ecuador to reform its Mining Development Plan in order to guarantee the development, competitiveness and sustainability of the mining industry ▪ Elimination of the windfall tax ▪ Reduction of royalty rates to 3-8% from 5-8% ▪ New regulation allowing exploration drilling in the early exploration permit phase

“With the elimination of the windfall tax we want to send a clear message to the mining sector to expand investment

• ptions in the country.”

Henry Troya, Vice Minister of Mining, Aug/2018 Lenin Moreno, President Mar/2018 "In mining, there is a need to have regulations that strengthen its growth, which is why the line of

• ffering legal security and

foreign investment commitments must be maintained.” Richard Martinez, Minister of Finance and Economy May/2018

INV-TSX ▪ Expertise in laboratory and pilot plant testing; plant design and commissioning; feasibility studies; project and plant operations management ▪ Over 20 years experience in the mining sector ▪ CPA, CA and former global mining institutional sales-person with RBC CM and base metals mining associate with BMO CM ▪ P. Geo. with over 45 years of experience in the mining business, 2018 Canadian Mining Hall

• f Fame Inductee

▪ Founder/Co Founder and executive/director of TMAC Resources, Torex Resources, INV Metals and FNX Mining

• ▪ Mining Engineer with over 40 years of experience in mine construction and operations

▪ Vast experience includes founder of Dynatec, COO of FNX and most recently CEO of DMC Mining services

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▪

After tax IRR of 26.3%

▪

Pre-tax NPV (@5%) of $490M

▪

After tax NPV (@5%) of $301M

▪

Initial capital of $286M

▪

AISC of $590/oz

▪

Cash costs of $510/oz

▪

Average ~150,000 oz gold/year

▪

~12 year mine life

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▪ Led by DRA which has strong construction and operating experience ▪ A number of components of the FS have been completed:

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3

▪ Ramp access into underground mine ▪ Contact water will be collected and treated ▪ Simple metallurgical process, 2 concentrates - no cyanide ▪ ~ 50% tailings back underground as paste backfill ▪ Lined filtered tailings storage facility ▪ Loma Larga designated as one of 5 strategic mining projects ▪ Nearest city is Cuenca (~ 400,000 people) ▪ Closest community is 10 km ▪ Expect workers to be bused to site, no permanent camp

2

▪ Expected FS completion Q4/18

▪

Updated resource statement

▪

Process plant design

▪

Metallurgical studies

▪

Mine plan

▪

Logistics (road, power etc.)

▪

Tailings storage facility

▪

Facilities (maintenance facilities, dry, offices etc.)

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Resource Classification Zone Tonnage (Mt) Contained Gold (M oz) Au Grade (gpt) Contained Silver (M oz) Ag Grade (gpt) Contained Copper (M lb) Cu Grade (%)

Indicated High Grade Main 10.4 2.06 6.14 11.6 34.6 81.7 0.35 Low Grade Main 7.4 0.48 2.02 4.7 19.4 22.3 0.14 Total 17.9 2.55 4.42 16.3 28.3 104.0 0.26 Inferred

• 7.3

0.54 2.29 5.7 24.1 21.0 0.13 Reserves Tonnage (Mt) Contained Gold (M oz) Au Grade (gpt) Contained Silver (M oz) Ag Grade (gpt) Contained Copper (M lb) Cu Grade (%) Total 11.6 1.86 4.98 10.5 28.0 73.6 0.29

1. Mineral Reserves are reported within mine designs carried out using a cut-off grade of 2 g/t Au. Incremental ore consists of development that meets an incremental cut-off grade

• f 1 g/t Au.

2. Mineral Reserves are estimated using a long-term gold price of US$1,250 per ounce, silver price of US$20 per ounce, and copper price of US$3.00 per pound. 1. Mineral Resources are reported at an NSR cut-off value of US$60/t. 2. Mineral Resources are estimated using a long-term gold price of $1,500 per ounce, silver price of $25 per ounce, and copper price of $3.50 per pound. 3. Mineral Resources are inclusive of Mineral Reserves.

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High Grade Reserve: 1.86 Moz @ 5.0 g/t Resource: 1.02 Moz @ 2.2 g/t

LOMA LARGA DEPOSIT LOOKING EAST

▪ Minimal footprint on surface ▪ Ramp access directly into high grade zones ▪ Continuous orebody allows for efficient and concentrated mining ▪ Long hole stoping mining planned for most of the orebody ▪ Mining rate of 3,000 tpd

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Long Section B-B’

Looking East

Ramp ~1,300 m Cross Section A-A’

Looking North

125m

E W N

Plan View N

A A’ B’ B

S

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GOLD COPPER CONCENTRATE GOLD PYRITE CONCENTRATE

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CONCENTRATE DETAILS GOLD PYRITE GOLD COPPER Tonnes Produced Annually (avg.) 108,300 8,500 % of Total Concentrate 93% 7% % of Total Gold 83% 17% % of Total Revenue 75% 25%

DETAILS

GOLD PYRITE CON GOLD COPPER CON

GRADE PAYABILITY GRADE PAYABILITY

Gold 37 g/t 93% 111 g/t 80% Copper 0.43% 0% 30% 96.5% Silver 142 g/t 93% 1,577 g/t 75% Sulphur 50%

• 40%
• Arsenic

<0.2%

• 10%
• Value $/t

$1,522 $1,392 $6,782 $5,681 CRUSHING/GRINDING MINE

Mining rate: 3,000 tpd

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COMMUNITY ENGAGEMENT AND CONSULTATION FEASIBILITY STUDY PROJECT FINANCING PERMITTING CONSTRUCTION EXPLORATION (Loma Larga/Regional) GOLD PRODUCTION

▪ Feasibility Study completion ▪ Project financing ▪ Negotiation of Investment Protection Agreement ▪ Environmental permitting ▪ Loma Larga exploration ▪ Regional exploration

INV-TSX ▪ INV Metals has executed significant CSR programs for over 10 years and maintains strong presence within communities ▪ Programs are designed with parishes and participants to improve the quality of life and generate income for the families surrounding Loma Larga

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Source: Exploring the Earth by Stephanie Kykara

▪ Major mining companies have recently been investing in Ecuador based on its great exploration potential: BHP, Newcrest, Fortescue, Anglo American and First Quantum. ▪ Ecuador has several world class exploration and development projects underway ▪ The Andean mineral belt is highly prospective geologically and contains many mines along its length ▪ The obvious exception is in Ecuador

Cascabel Rio Blanco Fruta Del Norte Mirador Carolina Las Peñas La Rebuscada Tierras Coloradas

Ecuador

Loma Larga

INV Development Project INV Exploration Project Other Significant Projects

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Section 900 Section 800 Section 700

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▪ Gold values encountered in 12 of 14 holes drilled west of orebody ▪ ~400 m x ~400 m west of resource ▪ 10 holes had intervals grading above reserve cut off grade of 2 g/t Au ▪ 3 holes hit potential new feeder zone (section 700 next slide) ▪ First drill program to west of Loma Larga ▪ Deep hole drilled north of deposit to test for potential porphyry type mineralization ▪ Porphyry style alteration was intersected at 538 m

Significant interval > 5.0 g/t Au Significant interval > 2.0 g/t Au Significant interval > 1.5 g/t Au No Significant intervals

Drill Hole Legend

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40 m 40 m 30 m

LLD 383: 170 m-221 m 51.3 m @ 3.2 g/t Au, 48 g/t Ag Incl 218 m-221 m 2.8 m @ 20.2 g/t Au, 434 g/t Ag LLD 386: 152 m-189 m 37.4 m @ 4.9 g/t Au, 52.2 g/t Ag Incl 174 m-181 m 7 m @ 9.4 g/t Au, 72 g/t Ag LLD 385: 244 m-262 m 18 m @ 2.3 g/t Au, 38.8 g/t Ag Incl 250 m-253 m 2.7 m @ 8.8 g/t Au, 211.1 g/t Ag

SECTION 700

Outline of Loma Larga Reserve in red

W E

LLD-385

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Tierras Coloradas

▪ Extensive gold mineralized vein system discovered on surface ▪ 6 veins over a significant area ▪ Highlights: 240.5 g/t Au, 141.3 g/t Au, 100.7 g/t, 83.9 g/t Au, 63 g/t Au + Ag values in surface rock chip samples

La Rebuscada

▪ Epithermal and Skarn gold and VMS target

Carolina

▪ Porphyry Potential ▪ Proximal to Sol Gold

Las Peñas

▪ Along trend with Rio Blanco mine ▪ High and low sulphidation gold and Porphyry targets ▪ Gold mineralized vein and veinlet systems discovered on surface ▪ Porphyry style mineralization in outcrop ▪ Grab Sample highlights: 88 g/t, 40 g/t, 36 g/t Au + Ag values Carolina Cascabel

Loma Larga

N

~1km

▪ INV Metals awarded 4 highly prospective exploration projects in 2017 totaling ~ 43,500 ha

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Area of inset picture above

Aparecida Vein

Tierras Coloradas discovery

Rock chip highlights: 62 g/t, 36 g/t, 31 g/t Au with Ag values Rock chip highlights: 241 g/t, 141 g/t, 101 g/t, 84 g/t, 63 g/t 49 g/t, 37 g/t Au with Ag values

▪ Extensive vein system over ~2 x 3 km area ▪ 0.5 to 6.0 m wide veins traced over ~1.4 km along strike

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• One of several veins with gold values
• Excellent grade continuity
• Grades of > 2 g/t Au occur on surface within the Aparecida vein for more

than 1,100 m horizontally and more than 370 m vertically Aparecida Vein Aparecida Vein Aparecida Vein

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4

Stockwork at Playas Encantadas Altered diorite porphyry Qtz Vein Zones

Altered stockwork within diorite porphyry Mineralized stockwork Qtz, Py, Mgt +- Cpy, Cov

▪ Porphyry style mineralization with potassic alteration, chalcopyrite, and quartz stockworks in outcrop ▪ Gold mineralized vein and veinlet systems discovered on surface ▪ Historic gold in soil anomaly to the north of this inset ▪ Along trend with Rio Blanco mine ▪ High and low sulphidation gold and Porphyry targets

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Carolina

▪ Porphyry Potential ▪ South of Cascabel

Carolina

~1km Cascabel Carolina

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INV-TSX

~ 1.5 x 2 km Rock chip anomaly Silicification with disseminated sulphides

INV-TSX ▪ Treasury: ~C$8 million (unaudited as of September 14, 2018) ▪ Bought Deal completed March 2017: C$27.6 million ▪ IAMGOLD maintained pro-rata ownership of 35.6% ▪ Insiders participated significantly more than pro-rata at 20% ▪ Market Capitalization: ~C$43 million

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GMP Securities: Steve Butler ▪ Rated “Buy” ▪ Target price of C$1.65/share Paradigm Capital: Don MacLean ▪ Rated “Speculative Buy” ▪ Target price of C$2.50/share Clarus Securities: Jamie Spratt ▪ Rated “Speculative Buy” ▪ Target price of C$1.75/share BMO Capital: Andrew Mikitchook ▪ Rated “Buy” ▪ Target price of C$2.00/share Eight Capital: Craig Stanley ▪ Rated “Buy” ▪ Target price of C$1.60/share PI Financial: Gary Sidhu ▪ Rated “Buy” ▪ Target price of C$2.05/share

IAMGOLD 35.6% FRANKLIN 8.7% INVESCO 3.0% OTHER INSTITUTIONS 4.3% INSIDERS 16.1% OTHER 32.3% COMMON SHARES 92.60 M FULLY DILUTED 100.99 M

Source: Public Company filings, BMO Capital Markets, INV Metals Notes: 1. FS: Feasibility, PF: Pre-Feasibility 2. All NPV figures in US Dollars with the exception of SBB and VIT, which are denoted in Canadian Dollars

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INV-TSX

Source: Consensus analyst NAV estimates from BMO Capital Markets

0.11x 0.12x 0.14x 0.17x 0.36x 0.41x 0.46x 0.48x 0.77x 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 INV Metals Falco Belo Sun GoldQuest Continental Sabina Victoria Midas Lundin Gold

P/NAV vs. Developer Peers

INV FPC BSX GQC CNL SBB VIT MAX LUG

Stage1

PF FS FS PF FS FS FS PF FS

LOM Production (000 ozs)

1,681 3,339 3,527 656 3,492 2,319 1,884 4,006 4,500

AVG Annual Production (000 ozs) 150 219 205 109 253 198 200 337 300 Cash Cost ($/oz)

$ 510 $ 399 $ 618 $ 669 $ 411 $ 534 $ 561 $ 568 $ 561

Initial Capex ($US/M)

$ 286 $ 802 $ 298 $ 159 $ 389 $ 317 $ 289 $ 970 $ 717

Production Date

Q4/2020 H1/2022 H2/2019 H1/2019 H1/2020 Q1/2021 H2/2019 n/a Q1/2020

Gold Price ($US)

$ 1,250 $ 1,300 $ 1,200 $ 1,250 $ 1,200 $ 1,150 $ 1,250 $ 1,350 $ 1,250

After-tax IRR (%)

26% 15% 26% 28% 31% 24% 30% 19% 16%

Market Cap (C$M)

$ 33 $ 75 $ 97 $ 41 $ 596 $ 339 $ 249 $ 185 $ 1,023

After-tax NPV @ 5% ($US M)2

$ 301 $ 602 $ 665 $ 203 $ 860 $ 480 $ 509 $ 832 $ 717

P/NAV

0.11x 0.12x 0.14x 0.17x 0.36x 0.41x 0.46x 0.48x 0.77x

➢ PFS provides robust economics under large-scale mining category ➢ Substantially improved economics from previous 2015 PFS under the medium-scale category (1,000 tpd) ➢ Metal Prices of $1,250/oz Au, $20/oz Ag, $3/lb Cu ➢ Increased production rate results in significantly lower

• perating costs per

tonne Mine Life ~12 years Nameplate Capacity 3,000 tpd Annual Gold Production 150,000 oz Gold Grade 4.98 g/t Gold Production 1.68 million oz Gold Recovery 90% Silver Grade 28.00 g/t Silver Production 9.83 million oz Silver Recovery 94% Au Equivalent Payable Ag 129,000 oz Copper Grade 0.29% Copper Production 71.30 million lbs Copper Recovery 97% Au Equivalent Payable Cu 119,000 oz Capital Costs (M$) Direct Costs $153.4 Indirect Costs 88.3 Contingency 44.2 Initial Capital $285.9 Sustaining 90.0 Reclamation and Closure 4.2 Total $380.1 Costs $/tonne Mining $36.30 Processing and Treatment 44.23 G&A 7.27 Total Operating Costs $87.80 Operating Cash costs $510/oz sold All-in Sustaining Costs* $590/oz sold All-In Costs* $778/oz sold

* Non-IFRS measures. See Non-IFRS Performance Measures on slide 2.

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▪ Over 20 years experience in the mining sector ▪ CPA, CA and former global mining institutional sales-person with RBC CM and base metals mining associate with BMO CM ▪ Mining Engineer (P. Eng.) with over 40 years of experience in mine construction and

• perations

▪ Vast experience includes founder of Dynatec, COO of FNX and most recently CEO of DMC Mining services. ▪ CPA, CA with experience in the mining industry

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▪ Mining Engineer with over 25 years of experience within Ecuador ▪ Previously was General Manager of IAMGOLD Ecuador, Chief Project Officer for Rio Blanco and Chief Technical Administration Officer for RTZ in Ecuador ▪ Sociologist with over 20 years of CSR and political expertise in mining ▪ Previously was Manager Social Responsibility for IAMGOLD Ecuador, RTZ and International Minerals ▪ Over 30 years mining and mining finance experience ▪ CFA, MBA, B.Sc. Geology, Past 10 years as Managing Director Global Mining Sales with BMO Capital Markets ▪ Previously Corporate Director, Processing, Dundee Precious Metals ▪ Expertise in laboratory and pilot plant testing; plant design and commissioning; feasibility studies; project and plant operations management

▪ President of PF Mining and Metals, a consulting company ▪ Former President, CEO and Director of Scorpio Mining Corp. ▪ Former Exec. Vice President and COO of Vale Inco from 2007 to 2009 ▪ Executive Vice President, Corporate Development, Dundee Corporation ▪ CA and CBV with over 25 years of experience in corporate finance and valuation, corporate management and professional accounting ▪ CEO and Director of Primary Capital Inc. and Director of Merus Labs International Inc., a specialty pharmaceutical company ▪ Former SVP of Quest Capital Corp. and VP, Investment Banking at Dundee Securities

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▪ Founder of INV Metals and Executive Chairman and Director of Search Minerals Inc., former CFO of Inco’s Canadian operations ▪ P. Geo. with over 45 years of experience in the mining business, inducted into Canadian Mining Hall of Fame in January 2018 ▪ Founder and Executive Chairman of TMAC Resources, developing the Hope Bay Gold Belt in Nunavut, Canada ▪ Founder, Chairman and CEO of FNX Mining, transformed from a $5M market cap junior explorer into a base and precious metals producer with a market cap of over $3B ▪ Co-founder and Chairman of Torex Gold Resources ▪ 20 years at the IFC, most recently as Principal Investment Officer - Mining Group ▪ Ms. Weisman holds an MBA from the University of Chicago and a B.Sc. from the University of Illinois

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Loma Larga Orebody

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▪ Loma Larga Orebody is ~ 1.5 km long and is located within a ~9 km by 1.5 km area of argillic alteration ▪ High sulphidation systems tend to cluster (e.g. Yanacocha, Mulatos) 9 km long alteration anomaly associated with Loma Larga Loma Larga Orebody

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STRUCTURAL SETTING AT LOMA LARGA ➢ Caldera ring structure ➢ Rio Falso Fault system ➢ NW-SE Trending structures NW–SE Trend Caldera ring structure N–S Rio Falso Fault System

▪ The NW part of the system is an active structural area and is likely close to the main magmatic source ▪ Strike slip movement of the Rio Falso N-S fault system allows the formation of the extensional sigmoidal structural features related with the hydrothermal alteration and mineralization

Orebody

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Potential Porphyry Hole (122m @ 2.1 gpt)

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310 m 45 m 500 m 100 m

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35 m 45 m 120 m