Investor Presentation July 2016 TSX: SBR - - PDF document

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TSX: SBR

Investor Presentation July 2016

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Mangazeisky High Grade Silver Project

• NI 43-101 MRE updates at Vertikalny (Feb 2015), Nizhny Endybal and Mangazeisky N & S (Jul

2015 & Apr 2016, June 9, 2016):

• Proven & Probable – 801 Kt @ 772 g/t Ag (19.9 Moz Ag)
• Indicated – 1.1 Mt @ 831 g/t Ag (29.5 Moz Ag); plus
• Inferred –1.9 Mt @ 466 g/t Ag (27.8 Moz Ag)
• NI 430-101 Feasibility Study June 2016; project economics, CAPEX US$48.6 M; IRR (pre-tax)

43.6%; NPV (pre-tax, 5% discount) US$79.7M

• 20 year Mining Licence granted in August 2013
• Large scale – excellent geological support for resource expansion along the 35 km mineralised

structural corridor

Accelerated Construction

• 2015 Achievements: Infrastructure and construction work completed; key long-lead items ball

mill, regrind mill and electrowinning processing equipment ordered for delivery via 2015/16 winter road resupply underway

• March 2016, closed US$20 M bridge financing; April 2016 entered into non-binding term

sheet for US$48.5 M secured loan facility

• 2016 Achievements: Construction begins; contracts agreed for civil and steel work construction

and CAT Finance for main power generating station and mining equipment; Company on-track for commissioning in late 2016

Silver Bear Resources

Building Momentum

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Silver Commissioning Late 2016

• Most heavy machinery and equipment on

site; additional summer 2016 supply underway

• Blasting permit granted; first open-pit blast

May 2016

• Construction well underway; processing

plant, crusher, accommodation camp, fuel storage etc.

• Process for permanent operation staff

recruitment commenced

Project Expansion Potential

• Targeting mineral resource update at

Vertikalny deposit Q3 2016

• 2016 Drilling program targeting satellite

deposits Mangazeisky North and Sterzhnevoy

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Mangazeisky Silver Project

Advancing Towards Production

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Strong Management & Board

Graham Hill, President & CEO; Mining Executive

with over 25 years experience building & operating mines in Central Asia and Africa

Derk Hartman, CFO; Mining Executive with extensive

experience in International natural resource Investment Banking

Yuri Petrov, General Director ZAO Prognoz;

Foreign Affairs Deputy Minister, Former representative of the Sakha Republic in Alaska

Chris Westdal, Chairman – Former Ambassador to

Russia

Robin Birchall – Mining Executive Trevor Eyton – Chairman of Ivernia Inc. Boris Granovsky – Managing Partner Aterra Dominic Gualtieri – Resource & Mine Finance Alexey Sotskov – Director Inflection Management

Project & Technical Advisory Team

Tetra Tech (UK); Lead Engineer & Advisor NI 43-101

Feasibility Study

SRK Consulting (UK); Mine and Tailing Management

Planning

ERM (UK); Environmental Engineers, responsible for ESIA

Study

EMC Mining LLC (Russia); Russian feasibility study;

process flow sheet and metallurgical studies – key to Russian Permitting process

Inflection Management Corp (25.6%); Russian

privately-held Mining Investment Management Firm

Aterra Investments Limited (25.2%); Russian Mining

Investment Management Firm

Strong Support & Commitment from Major Shareholders

Strong Management Team & Board

Extensive Russian, Finance & Mine Development Experience

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Market Summary Shareholder Base

1. Inflection: beneficially owned by Sergey Kolesnikov holds 41,176,471 SBR common shares; 2. Aterra: beneficially owned by Alexey Mordashov holds 40,468,579 SBR common shares

Inflection1 25.5% Aterra Capital2 25.1% Free Float 31.8% Institutions 15.9% Management/Directors 1.5% 5

SBR Appendix A – Corporate

Capital Structure (June 2016)

Dec 31, 2015 – Total outstanding Notes of US$23.1M

• Inflection Notes
• Non-Convertible US$3.5M / 15% p.a. / 31 Mar 2016
• Non-Convertible C$3.3M / 15% p.a. / 31 Dec 2016
• Convertible C$12.3M / 15% p.a. / 31 Dec 2016
• Total Inflection outstanding = US$15.3M (incl. US$6M

Non-Convertible)

• Aterra Notes
• Non-Convertible US$3.5M / 15% p.a. / 31 Mar 2016
• Convertible C$5.6M / 15% p.a. / 31 Dec 2016
• Total Aterra outstanding = US$7.7M (incl. US$3.5M

Non-Convertible) Shares Outstanding / Capitalization Shares Issued / Outstanding: 161,327,017 Options (avg. strike C$0.37) Warrants (avg. Strike C$0.26) 7,925,000 Fully Diluted 169,252,017 Market Capitalization (as of June 30, 2016) C$43 M Cash Position (as at March 31, 2016) US$19.3 M1

• 1. March 30, 2016 – announce the close of US$20 M bridge financing with

major shareholders

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Mangazeisky Silver Project

2016 Project Timeline

Q1 Q2 Q3 Q4 Q1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan OVOS PROEKT & Working Documentation Permits & Licences (cyanide, explosives, mining) Mine Planning Mining Pre-production Mining Pre-production Process Plant Construction Apr 29th – Mill Foundations Complete May 27th – Process Building Steel Infrastructure May 20th – Power Plant Phase I Complete Logistics Winter 2016 Logistics Summer 2016 Logistics Winter 2016-17 Operational Readiness (hiring & training) Water Supply Drilling Contractor Mobilization Tailings Construction Commissioning (hot & cold commissioning) Start Full Production Q1 2017

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Note – NI 43-101 mineral resources prepared by Tetra Tech; 1 Updated February 10, 2015 (see press release Feb 26, 2015 for full QP information); cut-off grade 335 g/t Ag, US$17/oz Ag; 2 Restated & Updated resource Dated June 3 2015 and March 31, 2016 (see press release July 6, 2015 and April 13, 2016 for Full QP information); cut-off grade 150 g/t Ag, US$17/oz Ag; NI 43-101 Reserve (see press release June 9, 2016 for full QP information) statement as of Sept 30, 2015. Note – The Indicated Mineral Resource at Vertikalny Central are inclusive of the stated Mineral Reserves. Mineral Resources that are not Mineral Reserves do not demonstrate economic viability.

2016 / 2015 MREs – Continue to Delineate High-grade Silver Deposits

Feb 2015 – Vertikalny Updated mineral resource estimate (“MRE”); Jun 2015 – Nizhny Endybal Re-stated and Mangazeisky North & South new Maiden resource; Apr 2016 – Mangazeisky North MRE update

Indicated Resource Inferred Resource Zone Resource Cut-off Grade (g/t) Tonnes (Kt) Grade Ag (g/t) Contained Metal Ag (Koz) Tonnes (Kt) Grade Ag (g/t) Contained Metal Ag (Koz) Vertikalny Central1 335 800 909 23,400 680 616 13,400 Vertikalny NW1 335

• 310

458 4,600 Nizhny Endybal2 150

• 710

316 7,200 Mangazeisky North2 150 304 626 6,100 98 671 2,100 Mangazeisky South2 150

• 60

246 500 Total 1,104 831 29,500 1,858 466 27,800

Mangazeisky North and Nizhny Endybal deposits have the potential to expand mining to multi-pit single plant mine operation

Mangazeisky Silver Project

2016 Mineral Resource Highlights

Proven & Probable Resource Tonnes (Kt) Grade Ag (g/t) Contained Metal Ag (Koz) 801 772 19,886

• 801

772 19,886

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Tonnes per annum

110,000 tpa

Silver Production (LOM)

16.8 M ounces Ag

CAPEX

US$48.6 M

Cash Costs

US$7.97/ oz Ag (excludes by‐

product credits)

Reserve Vertikalny Central

801 Kt at 722 g/t Ag total 19.9 M ounces Ag

IRR (pre‐tax ) / IRR (post‐tax)

43.6% / 40.2%

NPV (5%) pre‐tax/NPV (post‐tax)

US$79.7/ US$70.7

Payback (pre‐tax)/(post‐tax)

2.1 years /2.2 years

“The Study confirms that the exploitation of the Vertikalny Central deposit at our Mangazeisky silver project remains very robust even under the current silver price and economic conditions, which validate our objective of fast-tracking the development process, and increase our confidence in assertively moving forward with the first phase of mining. I firmly believe that our team has designed a mine plan that optimises profitability and that the processing technology will maximise recovery and minimize technical risks at the lowest cost.” Graham Hill, President and CEO

Note:

• Assumptions include a variable silver price of US$16.00/oz, US$17.25/oz, and US$18.00/oz during the first year of production, second year of production, and the

remaining project life, respectively, with a life of mine (“LOM”) weighted average silver price of US$17.74/oz; exchange rate applied is RUB66.00/USD.

• Reserve is proven and probable and The Indicated Mineral Resource at Vertikalny Central are inclusive of the stated Mineral Reserves.
• For full details, refer to press release June 9, 2016, a technical report will be filed within 45 days of this release.

One of the lowest capital cost silver project in the industry One of the highest grade silver projects in the industry Excellent Rate of Return

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SBR Mangazeisky Silver Project

2016 Feasibility Study Highlights

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Ball Mill and Process Plant Foundation – September 2015

• Leasing agreements signed with Caterpillar Finance for the main power generating station, mining

loaders and ancillary generators for the water supply pipeline. Favourable terms with CAT Finance helps to reduce CAPEX costs;

• Processing Plant site installation and commissioning of electrical equipment. Crushing-screening

unit assembled;

• Contracts agreed for main civil and steel erection works and mobilisation to site is in progress and

deliveries to site of the structural steel for plant building near completion; and

• Complete accommodation camp, with bath, laundry and medical facility; Completed water drinking,

septic system, internal camp electrical and heating supply; Internal camp roads and access paths completed.

Mangazeisky Silver Project

2016 Project Development Achievements

Assembly of Crushing Screening Unit May 2016

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• Approval was provided for “Technical project for Vertikalny

deposit mining Stage I – Open Pit Mining; contractor on site currently blasting open pit pre-strip material;

• All major equipment required for commissioning delivered

to site or Yakutsk with summer delivery planning underway includes:

• Ball mill 500 kW (ø3.0 x 3.7 m EGL) & regrinding Mill
• Electrowinning cell processing equipment
• High-performance pressure filters with built in cake-

washing capability

• Diesel power station and boiler
• Shipment and transportation of major construction

materials completed

• Fuel tank storage facility constructed and being filled;

additional fuel required to be delivered to site during summer season

• Satellite dish installed, WiFi communications centre

upgrade underway

Mangazeisky Silver Project

2016 Project Development Achievements

First Open-pit Blast April 2016 New Satellite Dish – Part of Upgrade In Site Communications and WiFi

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Strong Potential High-grade Feeder Pits

Organic Growth – within six km of Vertikalny deposit there are NI 43-101 MRE on three deposits and Russian compliant resources on two additional targets

Sterzhnevoy P1+P2 non-compliant Resource: 13 Moz sliver @ 2652 g/t, 380 m strike length Vostochny P1+P2 non-compliant Resource: 3.3 Moz silver @ 1272 g/t N 5 km Vertikalny – Update February 2015 43-101 Indicated Resource – 800 Kt containing 23.4 Moz @ 909g/t Ag; Inferred Resource – 990 Kt containing 18 Moz @ 566 g/t Ag Mangazeisky North & South – April 2016 NI 43-101 Maiden Indicated – 304 Kt containing 6.1 Moz silver @ 626 g/t Ag; Inferred – 550 Kt containing 7.9 Moz silver @ 444 g/t Ag Nizhny Endybal – Re-stated June 2015 NI 43-101 Inferred Resource Restatement – 710 Kt containing 7.2 Moz silver @ 322 g/t Ag

Note: Refer to slide 3 and 1 for notes on NI43-101 resources; C1&2 and P1&2 Resources are non NI 43-101 compliant – Russian classification, refer to cautionary statement

Mangazeisky Silver Project

Exploration Upside

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The Project

• One of the industries highest grade silver deposit – 772 g/t Ag
• Low CAPEX – US$48.6M; high IRR – 43.6% (pre-tax)
• Excellent resource potential / organic growth upside
• Granted 20-year Mining Licence to 2033

The Build

 Bridge financing secured; April 2016 entered into non-binding term sheet for US$48.5 M secured loan facility  NI 43-101 Feasibility Study announced June 9 2016  On-site Infrastructure build completed; Long-lead orders completed and delivered; 2016 Construction well underway

The Plan

• Phased production mine plan – manageable / financeable
• Late 2016 – Silver commissioning – cash flow finance UG development
• Strong potential to increase resources and mine life by establishing a multi-pit

single plant mining operation

Mangazeisky Silver Project

Clear Path to Production

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CONTACT INFORMATION

Judy Webster Manager Investor Relations & Corporate Secretary C: 416-453-8818 E: jwebster@silverbearresources.com

House of Chief Process Engineer First Prize Winner Tetra Tech Photo Award

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Mangazeisky Project Construction

Photo Report

Main plant welding columns on the foundations Construction of weather shield – Main Plant

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Mangazeisky Project Construction

Photo Report

Construction of Ball Mill foundation Ball Mill Foundation Reinforcing Cages

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Mangazeisky Project Construction

Construction Photo Report

Earthworks for semi-mobile crusher Assembly of semi-mobile crusher

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Mangazeisky Project Construction

Photo Report

Installation of Crusher Ball Mill Foundation Reinforcing Cages

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Mangazeisky Project Construction

Photo Report

Installation of Crusher Installation of Crusher

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• Subject to tax considerations it is anticipated that ZAO Prognoz

will be the ultimate borrower under the Debt Funding Package

• Debt Funding Package of US$48.35 million will consist:
• US$42.85 million secured loan
• Working capital facility of US$3.5 million; and a
• Contingency facility of US$2 million
• Portion of the Secured Loan Facility will be used to repay the

principal and accrued interest on certain outstanding promissory notes

• Following repayment new funding of approximately US$17 million

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SBR Appendix A – Corporate

Non-Binding Term Sheet Q1 2016

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SBR Appendix A – Corporate

Silver Company Comps Producers

P/NAV Market Cap Cash Debt Enterprise Value Available Revolver

(ratio) (US$ mm) (US$ mm) (US$ mm) (US$ mm) (US$ mm)

Senior Producers Coeur 2.22x 1,157.2 211.6 511.1 1,447.0 17.9 Endeavour 2.13x 356.5 30.7 20.0 343.2 25.0 First Majestic 3.11x 1,783.5 109.0 65.5 1,681.4 8.9 Fresnillo 1.63x 10,822.0 500.1 797.0 11,149.1

• Fortuna

2.11x 760.8 96.3 42.5 701.9

• Hecla

3.03x 1,594.2 140.3 518.2 1,969.2 100.0 Hochschild 1.63x 993.4 105.0 450.0 1,428.5

• Pan American

1.71x 2,172.1 231.5 59.5 1,973.3 263.8 Silvercorp n.a. 288.9 62.2 4.7 275.3

• Silver Standard

1.71x 1,113.1 255.7 280.6 978.0 67.5 Median 2.11x 1,135.2 124.6 173.1 1,437.8 13.4 Junior Producers Avino 0.73x 63.8 8.5 13.6 65.7

• Aurcana

n.a. 17.8 0.2

• 17.0
• Alexco

0.81x 102.8 14.9

• 84.0
• Excellon

1.29x 64.6 5.8

• 54.6
• Great Panther

1.12x 212.7 13.5

• 193.3

10.5 Santacruz 0.64x 35.1 0.5 21.4 55.0

• Americas Silver

1.39x 118.2 18.5 9.2 99.4 1.2 Median 0.96x 64.6 8.5

• 65.7
• Source: BMO Capital Markets – Q2 2016

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SBR Appendix A – Corporate

Silver Company Comps Developers

P/NAV (ratio) Market Cap (US$M) Cash (US$M) Debt (US$M) Enterprise Value (US$M) Beaver Creek

0.73x 153.6 17.8

• 132.4

Levon

• 24.1

4.2

• 10.0

MAG

1.48x 1,009.9 146.1

• 8.14.5

Minco

0.41x 40.7 40.6

• 8.7

Silver Bull

• 13.6

1.0

• 12.5

AZ Mining

• 33.3

25.4

• 296.5

Median 0.73x 97.1 21.6

• 72.5

Source: BMO Capital Markets – Q2 2016

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SBR Appendix B – Technical

Open Pit & UG Mining Plan

Potential to introduce Mangazeisky North ore which would add another 2.5 years to open pit production

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SBR Appendix B - Technical

Mangazeisky Project Mineralisation

Mangazeisky host four types of mineralisation: 1. Vertikalny deposit – narrow steep dipping veins that cross-cut stratigraphy, feature grades in excess of 1,000 g/t Ag over widths ranging up to 3 metres 2. Mangazeisky N &S deposit – strata-bound silver- bearing, quartz-carbonate-sulphide structures with lead, zinc by products with grades greater than 900 g/t Ag 3. Nizhny Endybal deposit – thicker linear-type stockwork with carbonate-silver sulphosalt mineralisation 4. Porfirovy prospect – rhyolite porphyry area associated with quartz, quartz-carbonate and quartz-sulphide veining

Surface expression of Vertikalny Vein – width 3m in vertical fault setting Mangazeisky North – colloform banding with galena rich – high grade silver core Silver vein mineralisation – Vertikalny deposit Surface expression of Vertikalny vein; width 3 m in vertical fault setting

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SBR Appendix B – Technical

Project Layout – October 2015

Open Pit Solid Waste Dump Tailings Management Process Plant Proposed Water Pipeline Reagent Storage Mine Camp Waste Rock Dump Explosives St

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SBR Appendix B – Technical

Process Plant & Tailings Management

Tailings & Waste Water Management Fuel Storage & Power Station Process Plant, Crushing Service Buildings

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Silver Bear is committed to working with the Yakutian government and communities Silver Bear is committed to working with the Yakutian government and communities Silver Bear is committed to developing the Mangazeisky Project

• Excellent relations with Yakuytian President

Egor Borisov (below)

• Supportive and strategic shareholder: Alexey

Mordashov (Aterra) and Sergey Kolesnikov (Inflection)

• MOU signed with local indigenous people and

Yakutian government

• Sakha is a mining friendly region
• Silver identified as a growth sector
• Key local relationships at all levels of

government

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SBR Appendix C - CSR

Sakha Region, Russia – Excellent Relationship

Blessing of Chapel at mine site Graham Hill, President & CEO and Yuri Petrov, ZOA Prognoz, General Director – interviewed by local TV Media at mine site

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SBR Appendix C - CSR

ESIA Public Hearings April 2016

“EMC-Mining” LLC, CEO Gromenkov I.M. makes presentation of Mining Complex project solutions for the Mangazeisky Silver Project Public Hearing on April 18, 2016

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