INV-TSX Loma Larga: High Return, Low Cost, Straight Forward Gold - - 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.

• Ms. Shastri Ramnath, a Licensed Professional Geologist with the Association of Professional Geoscientists of Ontario and consultant to INV Metals, is a

"Qualified Person" by virtue of education and relevant experience, as such term is defined in NI 43-101, and has reviewed and approved the scientific and technical information related to Loma Larga included in this presentation on slides 14-17. The remaining scientific and technical information contained in this presentation has been reviewed and approved by Dawson Proudfoot, P.Eng., Project Manager, INV Metals Inc. and a Qualified Person under NI 43-101. By virtue of his education and relevant experience, Mr. Proudfoot is a "Qualified Person" for the purpose of 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.

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Top performing gold stock on TSX in 2016 (up 536%) Loma Larga: High Return, Low Cost, Straight Forward Gold Project

• After tax IRR of 26% @ US$1,250 gold
• All in sustaining cost, AISC of US$590/oz
• Initial capex of only US$286 million

Significant production profile at 150,000 oz p.a. over 12 years (1.86 M oz reserve at ~5 gpt) Greatly improved environment for mining in Ecuador Proven management and technical team Very Attractive valuation: INV Metals is trading at only 0.21x its US$300 M project NAV (5%)

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

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INV-TSX

0.13 0.21 0.39 0.43 0.49 0.57 0.65 0.71 0.80 0.86 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 Midas INV Metals GoldQuest Belo Sun Continental Victoria Aurico Sabina Lundin Gold Dalradian

P/NAV vs. Developer Peers

MAX INV GQC BSX CNL VIT AMI SBB LUG DNA

Stage1

PF PF PF FS FS FS FS FS FS FS

LOM Production (000 ozs)

4,006 1,681 656 3,527 3,492 1,884 2,342 2,319 4,418 1,360

AVG Annual Production (000 ozs) 337 150 90 205 253 200 195 198 340 130 Cash Cost ($/oz)

$ 568 $ 510 $ 669 $ 618 $ 411 $ 561 $ 639 $ 534 $ 553 $ 556

Gold Price

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

After-tax IRR (%)

19% 26% 28% 26% 31% 30% 13% 24% 16% 24%

Payback (yrs)

3.4 2.7 2.5 3.9 2.3 2.8 3.9 2.9 4.5 4.0

Market Cap ($M)

$ 146 $ 83 $ 107 $ 386 $ 570 $ 292 $ 188 $ 342 $ 721 $ 348

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

$ 832 $ 301 $ 203 $ 665 $ 860 $ 509 $ 289 $ 480 $ 676 $ 301

P/NAV

0.13 0.21 0.39 0.43 0.49 0.57 0.65 0.71 0.80 0.86

₪ Good infrastructure with significant recent investment in roads, ports, airports ₪ Currently investing in 10 hydroelectric projects

• Projected Capacity of 8,300 MW
• Hydro exports anticipated by 2020

₪ US$ Currency

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₪ Loma Larga designated one of 5 strategic mining projects by Ministry

• f Mines

₪ Nearest city is Cuenca: 350,000 people, 40 km away ₪ Closest community is 10 km away ₪ Expect workers to be bused to site, no permanent camp required

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₪

Creation of Ministry of Mines in 2015 with strong commitment to advance the mining sector within Ecuador

₪

Positive changes in Mining Laws and Regulations:

• Ability to recover initial capital investment prior to application of

windfall tax

• Windfall tax calculation based on 10 year average trailing gold

price plus one standard deviation, allowing for CPI inflation adjustments

• Recoverability of VAT beginning in 2018, after export sales

commence ₪ INV Metals completed $27.6 million Bought Deal financing in March 2017 ₪ Lundin Gold successfully moving forward on pathway to production ₪ Presidential run-off election on April 2

“Ecuadorian President Rafael Correa argued that a large part of Ecuador’s future lies in developing responsible mining, minimizing the environmental impact while achieving the well-being of Ecuadorians, especially the inhabitants

• f the areas neighboring mining projects.”

Source: Pulbimetro Ecuador, Diciembre 23, 2015

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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 87.7 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

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0.54 2.29 5.7 0.13 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 of 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.

INV-TSX Loma Larga Reserve Looking Northeast

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A A’ B B’

Flat lying, thick, shallow orebody allows for simple mine plan

₪ Minimal footprint on surface ₪ Ramp access directly into orebody – no shaft ₪ Continuous orebody allows for efficient and concentrated mining ₪ Mining rate of 3,000 tpd ₪ Long hole stoping mining planned for 75% of

• rebody (15x15x30 m stopes)

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Cross Section A-A’

Looking North

Long Section B-B’

Looking West

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1  Minimal footprint on surface

• Designed to minimize impact on environment and ecosystem

2

• Conventional flotation technology to produce concentrate
• No cyanide to be used
• Transport concentrate in sealed bags/containers to port

3

• No requirement for hydraulic tailings dams
• Designed to be covered and revegetated with native plants and

grasses, 50% of tailings are returned underground

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4  “GREEN” mine

• Mitigate impact on water (surface and ground) through water

diversion and treatment of all contact water to leading environmental standards

• Infrastructure to be removed and site to be remediated at end of

mine life

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MINE PRIMARY CRUSHER SAG MILL COPPER ROUGHER FLOTATION REGRIND CLEANER FLOTATION COPPER CONCENTRATE FILTRATION REGRIND CLEANER FLOTATION GOLD/PYRITE CONCENTRATE FILTRATION GOLD/PYRITE ROUGHER FLOTATION TAILINGS THICKENING FILTRATION MINE BACKFILL WATER TREATMENT FILTERED TAILINGS

GOLD/PYRITE CONCENTRATE DETAILS Tonnes Produced Annually 108,300 % of Total Concentrate 93% % of Total Gold 83% % of Total Revenue 75% GRADE PAYABILITY Gold 111 gpt 80% Copper 30% 96.5% Silver 1,577 gpt 75% Sulphur 40%

• Arsenic

11%

• GRADE

PAYABILITY Gold 37 gpt 93% Copper 0.43% 0% Silver 142 gpt 93% Sulphur 50%

• Arsenic

<0.2%

• COPPER CONCENTRATE DETAILS

Tonnes Produced Annually 8,500 % of Total Concentrate 7% % of Total Gold 17% % of Total Revenue 25%

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1

• Including related infrastructure, road and power line

2

• Geotechnical test work to confirm ground conditions
• Hydrogeological test work, monitoring and design of

ground water flow model

• Metallurgical test work, obtain samples for paste back fill,

tailings, concentrate test work

• Environmental studies
• Continued social programs and engagement
• Underground confirmation program design and permitting
• Request for proposals have been sent
• Commencement of feasibility study in mid Q2
• Expected completion within 18 months
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3

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Combined Hydrogeological/Geotechnical Drill Hole Looking North East Proposed Plant and Facilities Location Looking South West Proposed Portal and Ramp Location Looking West Loma Larga Looking South

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Community Engagement and Consultation Geotechnical and Hydrogeological Programs Metallurgical Test Work Environmental Studies Feasibility Study Project Financing Exploitation/IPA Agreement Negotiation Permitting Detailed Engineering and Construction Gold Production

₪ Geotechnical, hydrogeological and metallurgical drill programs completed ₪ Feasibility Study to commence Q2/17 ₪ Community engagement on-going ₪ Underground Confirmation program being planned, potential start up early 2018 ₪ Targeting gold production end of 2020

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

• Explore potential western extension of Loma Larga
• Geotech drilling uncovered anomalous gold within Silica

alteration up to 400 m from know resources

• Drilling currently underway
• Test northern extension and follow up indications of porphyry
• Explore for extensions of high grade feeder zones and locate

potential new ones

• Explore at depth remains untested below 250 m, targeting

feeder zones and stacked lenses



• INV Metals recently acquired 3 greenfield projects in Ecuador

and is currently bidding on additional projects

• Mapping, sampling and reconnaissance programs underway

with the aim of developing drill targets by year-end

• Epithermal veins and potential porphyry alteration have been

identified on initial reconnaissance at Tierras Coloradas

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Potential Porphyry Hole (122m @ 2.1 gpt)

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₪ Geotechnical drilling encountered silica altered zone, diatreme breccia's and anomalous gold values ₪ 400 m from the current resource ₪ Faults interpreted in the area have potential to be feeder zones Holes containing silica or vuggy silca alteration and/or sulphides and anomalous gold

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INV-TSX ₪ Ecuador has vast exploration potential, and is relatively underexplored ₪ Favorable Andean Cordillera Geology continues from Colombia to Chile ₪ Very well developed mining sector in Peru, Chile and Columbia

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₪ INV Metals was awarded three greenfield exploration projects in January totaling ~ 43,500 ha ₪ INV to spend $2M on these concessions in 2017 ₪ INV is actively seeking to acquire further exploration concessions Las Penas

• High and low sulphidaton Au

Tierras Colloradas

• Epithermal Au and Porphyry

La Rebuscada

• High and low sulphidation Au

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₪ Identified epithermal system and veins in outcrop ₪ Identified potential porphyry alteration and mineralization in outcrop

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4

Epithermal vein 6 m wide Argillic Alteration Sinter 3 m wide qtz vein Potential Porphyry System

Banded and crustiform texture

Potasic Alteration

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₪ Focus on sustainable projects primarily with woman and children ₪ Focus on sustainable and educational projects with agriculture, animal husbandry, water ₪ Extensive knowledge of indigenous plants and climate

• 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 operations

• 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
• Former senior associate with PricewaterhouseCoopers LLP providing audit

services to mining and manufacturing clients INV-TSX

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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

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• 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

• P. Geo. with over 45 years of experience in the mining business
• Founder and Executive Chairman of TMAC Resources, developing the Hope

Bay Gold Belt in Nunavut, Canada

• Founder, Chairman and CEO of FNX Mining, a TSX-listed company that

transformed from a $5M market cap junior exploration company into a mid-tier diversified Canadian base and precious metals producer with over 2,000 employees and a market cap of over $3B

• Co-founder and Chairman of Torex Gold Resources, a Canadian mining

company that recently developed the Morelos gold project in Mexico

• 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

• Founder of INV Metals and Executive Chairman and Director of Search Minerals

Inc.; former CFO of Inco’s Canadian operations

• 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 CEO and Director of Primary Corp., merchant bank
• Former SVP of Quest Capital Corp. and VP, Investment Banking at Dundee

Securities INV-TSX

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INV-TSX

₪ Treasury: ~$32 million (unaudited) ₪ Bought Deal completed March: $27.6 million

 IAMGOLD maintained pro-rata ownership of 35.6%  Insiders participated significantly more than pro-rata

₪ Market Capitalization: ~$83 million

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GMP Securities: Steve Butler ₪ Rated “Buy” ₪ Target price of $1.65/share Clarus Securities: Jamie Spratt ₪ Rated “Speculative Buy” ₪ Target price of $1.75/share

IAMGOLD 35.6% FRANKLIN 7.8% TECK 4.3% INSIDERS 14.5% OTHER 41.6%

COMMON SHARES 92.59 M FULLY DILUTED 97.66 M

INV-TSX

Loma Larga: A High Return, Low Cost, Straight Forward Gold Project

• After tax IRR of 26% @ US$1,250 gold
• All in sustaining cost, AISC of US$590/oz.
• Initial capex of only US$286 million

Significant production profile at 150,000 oz p.a. over 12 years (1.86 M oz reserve at ~5 gpt) Greatly improved environment for mining in Ecuador Proven management and technical team Very Attractive valuation: INV Metals is trading at only 0.21x its US$300 M project NAV (5%)

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INV-TSX

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2004 Discovered by IAMGOLD 2008 IAMGOLD completed PFS, evaluated open pit and underground

• ptions

2008-2012 Mining law uncertainty 2012 INV Metals completed acquisition from IAMGOLD in November (retain 35.9%) 2013 Performed evaluation of deposit, 12 hole drill program (3,685 m), metallurgical test work 2014-15 Completed medium-scale PFS at 1,000 tpd 2015 Completed optimization study on mine plan at large-scale 3,000 tpd 2004-2016 INV Metals/IAMGOLD developed and maintain strong local social, educational and environmental programs

INV-TSX 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

₪ New PFS provides robust economics under large- scale mining category ₪ Substantially improved economics from previous 2015 PFS, completed under medium-scale category of 1,000 tpd maximum ₪ Metal Prices of $1,250/oz Au, $20/oz Ag, $3/lb Cu ₪ Increased production rate results in significantly lower operating costs per tonne

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Discovery Hole

₪ Deposit open along strike and potential for additional lenses at depth ₪ Follow-up program warranted on significant drilling results obtained from INV Metals and IAMGOLD ₪ Multiple gold mineralized intersections have been identified outside the resource ₪ Silver-rich zone to the south ₪ Anomalous gold grab samples ₪ High value silver grab samples INV-TSX

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Contact us at info@invmetals.com