Investor Presentation for NOVEMBER 2019 1 CAUTIONARY STATEMENT - - PowerPoint PPT Presentation

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Investor Presentation for NOVEMBER 2019 1 CAUTIONARY STATEMENT - - PowerPoint PPT Presentation

Investor Presentation for NOVEMBER 2019 1 CAUTIONARY STATEMENT This presentation may contain certain forward-looking statements and information relating to Latitude that are based on the beliefs of the companys management, as well as


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Investor Presentation for

NOVEMBER 2019

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This presentation may contain certain “forward-looking” statements and information relating to Latitude that are based on the beliefs of the company’s management, as well as assumptions made by and information currently available to manage-

  • ment. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not

limited to, without limitations, exploration and development risks, expenditure and financing requirements, general eco- nomic conditions, changes in financial markets, the ability to properly and efficiently staff the Company’s operations, the sufficiency of working capital and funding for continued operations, title matters, First Nations matters, operating hazards, political and economic factors, competitive factors, metal prices, relationships with vendors and strategic partners, govern- mental regulations and supervision, permitting, seasonality and weather, technological change, industry practices, and one- time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. Latitude does not assume the obligation to update any forward-looking statement or forward-looking information except as required by law.

CAUTIONARY STATEMENT

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The Four Pillars Of Value Creation

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GREAT ASSET

  • Good Resource
  • Community Engagement
  • Strong HSE Standards

GROWTH POTENTIAL

  • Excess Plant Capacity
  • Listing 2020
  • M&A

FINANCIAL STRENGTH

  • Production
  • Offtake Agreement
  • Cash Generation

OWNERSHIP

  • Management-Founded Company
  • Skin in the Game
  • Institutional Support

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Latitude’s Asset Portfolio

ECUADOR COLOMBIA BRAZIL PERU BOLIVIA CHILE

Lima HUANCAVELICA CUSCO

  • Acquired from BVN in 2017, restarted production 2018
  • Excess capacity = Near-term growth
  • 7.3 million tonnes resources (Inferred, 43-101)
  • A truly regional play: 12,600-Ha land package
  • Highly prospective / Mining-friendly location
  • Great potential for partnership opportunities in a context of stronger zinc prices

NUEVA RECUPERADA: FLAGSHIP ASSET IN HUANCAVELICA AZOD: ACCHA ZINC OXIDE DISTRICT IN CUSCO

MINING PERMIT IN PLACE PRODUCTION CAPACITY 600 TPD PROACTIVE COMMUNITY ENGAGEMENT POWER AND ACCESS INFRASTRUCTURE IN PLACE

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Great Resource and Land Package

43-101 RESOURCES (INFERRED) LAND PACKAGE

STATEMENT REGARDING MINERAL RESOURCES NI 43-101 Technical Report on Resources. Recuperada Project, Huancavelica Province, Peru. Carried out by Centro de Estudios Mineros. Qualified Person: Edmundo Tulcanaza.

TONNES AREA 7,324,365 NORTH - TANGANA NORTH - HUACHOCOLPA SOUTH - RECUPERADA 4,840,015 2,160,649 323,701 116.33 124.50 379.81 3.35 3.06 1.31 1.63 2.91 2.26 TOTAL Pb % 3.17 Ag (g/t) 130.38 Zn % 2.04 HECTARES 4,644 6,617 1,400 12,661 ORIGIN Latitude (ex BVN) Latitude (ex PAS) Latitude New Acquisitions Total Known Productive Veins 22 53 15 90

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Enormous Geological Upside

? ? ? ? ? ? ? ?

0 m

  • 200 m
  • 400 m
  • 600 m
  • 800 m
  • 1000 m

0 km 1 km 2 km 3 km

Ore shoot - excellent depth potential Ore shoot - excellent depth potential Ore shoot - excellent depth potential

Ore shoot Mined stopes Mined stopes Mined stopes 809 813 3 802 803 812 805 811 810 150 149 4 127

Ore shoot - excellent depth potential

?

Nueva Recuperada veins: strike-slip Riedel shear regime. Unlike low-sulphidation systems, there’s enormous potential at depth in Nueva Recuperada.

> . 5 t
  • 1
. 5 k m > 600 - 800 m

Vein typical size: LENGTH: 500 TO 1,500M DEPTH: 600 TO 800M

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Development Spanning Half a Century

PRODUCTION VS RESERVES

700,000 600,000 500,000 400,000 300,000 200,000 100,000 2010 2005 2000 1995 1990 1985 1980 1975 1970 1965 1960 1957 Production Reserves

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Over 50 years of Profjtable Grades

Undiluted mine grades consistently above $250/tonne at todays prices - through 56 years of production!

$ 250 / tonne Ag equivalent $ 250 / tonne Pb equivalent $ 250 / tonne Zn equivalent

30 25 20

Ore%/Oz

10 5 15 2005 2010 2013 2000 1995 1990 1985 1980 1975 1970 1965 1960 1957 $250 / tonne Ag equivalent $250 / tonne Pb equivalent $250 / tonne Zn equivalent Pb% Ag Oz Zn%

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Cash Generation - Unlocking Value From Day 1

  • Concession package acquired from

Pan American Silver

  • 7.3 million tonnes

inferred resources (43-101) (2.04% Zn, 3.17% Pb, 130.4 g/t Ag)

  • 600 tpd capacity, in perfect shape
  • Fully-permitted
  • Silver-Lead-Zinc operation started

Q4 2018 (300 tpd)

  • Historic mining district
  • Win-win approach toward

community relations

  • Putting people safety always first

RESOURCES RECUPERADA PLANT COMMUNITY / HSE

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  • Historic mining district: 60+ years of mining activity
  • Proactive approach to extend community agreements
  • Supporting education and capacity building projects

Safety Record (Jan-Oct 2019): 63 workers on average 0 ACCIDENTS, 0 LOST DAYS

A Win-Win Strategy with Communities and Workers

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Financial Strength

Mine production taking off Offtake agreement with Trafigura

Infrastructure in place Competitive G&A

18,000

TONNAGE

SALES MINING PRODUCTION

16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 AUG-19 SEP-19 OCT-19 NOV-19* DEC-19*

*Estimate

LAYING THE FOUNDATIONS FOR VALUE GENERATION

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José M. García CEO & Director John Gray Director Konstantin Lichtenwald CFO Jorge Benavides Director Carlos Espinosa Chairman Sebastian Wahl VP Corp Development & Director Otto Sandoval Peru GM Mike Hoffman Director

Ownership: Management-Founded Company

SKILLED AND AMBITIOUS TEAM TO GROW THE COMPANY

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Ownership: Skin in the Game

The best performing companies have leaders that own substantial amounts of common stock relative to their level of compensation.

Shareholders’ Gold Council Strong Institutional Support Group behind initial funding to Ivanhoe Mines

Latitude’s key personnel driven by equity incentives:

Investors Directors & Management Employees Former Zincore Investors 45% 1% 51% 3%

“ “

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NUEVA RECUPERADA IS JUST THE BEGINNING: STEPPING STONE FOR SOMETHING LARGER

Growth Potential

NUEVA RECUPERADA ORGANIC GROWTH

  • Current plant 600 tpd, excess capacity available
  • Outstanding Geology supports future expansions to 1,200 tpd

LATITUDE CORPORATE STRATEGY

STEP 1: Latitude, Proven Mining Operator

  • Operational capability
  • Financial performance
  • Community / HSE record

STEP 2: Implement Growth Vision

  • Multi-asset company: production for several decades
  • Intense M&A due diligence for high-upside base metal assets
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High-Exposure Growth Opportunities Are Rare

191 new listings TSX / TSXV (Jan-Aug 2019) Of that, only 17 in mining (8.9%) Of that, only 3 outside Canada (1.57%):

  • Patagonia Gold (Argentina)
  • Jervois Mining (Australia)
  • Newmont Goldcorp (Major - TSX)

Source: MiG Report August 2019 (TMX)

TSX/TSXV New Listings (Jan-Aug 2019) Listed Mining Companies From Canada Listed Mining Companies Outside Canada 8.9% Non-Mining Listings

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LATITUDE LISTING IS A UNIQUE, HIGH-EXPOSURE OPPORTUNITY IN THE SILVER + BASE METALS SPACE

LISTING 2020. JOIN US!

GREAT ASSET

  • Good Resource
  • Community Engagement
  • Strong HSE Standards

GROWTH POTENTIAL

  • Excess Plant Capacity
  • Listing 2020
  • M&A

FINANCIAL STRENGTH

  • Production
  • Offtake Agreement
  • Cash Generation

OWNERSHIP

  • Management-Founded Company
  • Skin in the Game
  • Institutional Support
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THANK YOU