Kincora Copper The leading expansion strategy along an emerging - - PowerPoint PPT Presentation

Kincora Copper

The leading expansion strategy along an emerging world class belt

TSXV listed, Mongolian copper-gold exploration and development company (KCC.CN)

November 2016 MINEX Conference Presentation

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Disclaimer

Information not recommendation

The views expressed in this presentation are based on information derived from Kincora Copper Limited’s (“Kincora”) own internal and publicly available sources that have not be independently verified. No representation, warranty or undertaking, expressed or implied, is made or given by Kincora, or any of their officers or employees as to the fairness, accuracy, completeness or reliability of that information. This presentation should not be relied upon as a recommendation or forecast. Any recipient of this presentation is responsible for conducting their own due diligence and other enquires as to the information provided to them. Recipients of this presentation should seek and rely upon their own legal, tax, geological, geophysical, financial and accounting advice. Any decision to rely on the information contained in this presentation is the sole responsibility of the recipient of this document and Kincora will be responsible for any loss incurred by the recipient as a result of any actions taken by them relying on the information presented in this report. The scientific and technical information in this presentation was prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and was reviewed, verified and compiled by Kincora’s geological staff under the supervision of Peter Leaman, Senior Vice-President of Exploration of Kincora Copper, who is the Qualified Person for the purpose of NI 43-101. All pricing and information in this presentation is at November 9th, 2016 and is in C$, unless otherwise stated.

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Investment highlights: Location, Team, Targets

§ Dominant position in the fast growing Southern Gobi mine and infrastructure region § Team with an exceptional track record with Tier 1 porphyries § Team aligned with shareholder value: 70:30 share/cash remuneration § Historic porphyry mineralization with recent confirmation of large scale Devonian “Oyu Tolgoi style” target at Bayan Tal supports one of the best candidates for a new Tier 1 porphyry discovery in the belt § Exploration ongoing advancing multi-target, multi-stage pipeline up the value curve: unique portfolio of targets between and on strike from the two mines in the belt § Large incumbents actively expanding portfolio and/or ramping up exploration in the Devonian belt § Mongolia’s resource potential again becoming recognized post largest project financing of its kind for Oyu Tolgoi Stage 2 development and other listed juniors exploration activities post discoveries Leading regional exploration play in an emerging world class, gold rich copper belt Focus of exploration in the belt is additional Tier 1 (Devonian) copper-gold porphyries

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Porphyries occur in clusters on key geological structures in established belts – not in isolation

Blue square—same landmass size of Southern Gobi to Northern Chile

>US$75m of recent in-the-ground commitments for a comparable geological exploration portfolio (similar land mass to Kincora) in Northern Chile

Andes 150,000Mt resources from 91 deposits

Butte Bingham Morenci La Escondida El Teniente Alumbrera El Salvador

• Mt. Polley

Valley Copper Resolution Cananea Llallagua Toquepala Yerington/Ann-Mason Henderson Gaspe Mt. Pleasant Chuquicamata Refugio

N

• r

t h A m e r i c a n C

• r

d i l l e r a A p p a l a c h i a n C a r i b b e a n Andes

NA Cordillera 84,000Mt resources from 143 deposits Phanerozoic igneous provinces Porphyry deposit

A l p i n e

• T

e t h y a n U r a l s A l t a i d E a s t A s i a n S

• u

t h w e s t P a c i f i c T a s m a n

Southwest Pacific 30,000Mt resources from 59 deposits Mongolia 6,000Mt from only 4 deposits

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Bayan Tal

Many leading geologists view the South Gobi Desert as the most prospective ground for copper mining in the world today” 1

“

Blue square: same landmass size of Southern Gobi to Northern Chile (p slide 4)

Same size landmass in Northern Chile there are:

• i. >15 current large

mines

• ii. Producing ~2Mtpa Cu

(~11% of global production)

Oyu Tolgoi, the world’s most significant copper discovery/project of the past 25 years” 1

“

Exploration potential: Analogous to Chile from >1970s

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Location: Dominant position between/on strike from the only 2 (Devonian) mines

Bayan Tal Ulgii Red Well Bronze Fox Kharmagtai Xanadu Mines Tourmaline Hills Oyu Tolgoi (“OT”) 1 Rio Tinto/TRQ/Entrée Gold East TS

Kincora licenses

Ulaanbaatar

Erdenet Copper Mine

Erdenet Copper Mine Ulaanbaatar CHINA RUSSIA OT OT East TS TS TS Project Owner Stage km2 Res. (Mt) Cu (%) Au g/t Est capex “OT” Rio Tinto, via TRQ with GoM Stage 2 UG Develop’t 777 4,397 0.65 0.29 ~$12 Incl. Open Pit Production (reserves) 148 951 0.45 0.28 ~$5b “TS” MAK (private group) Develop’t (sulfides

• nly)

1.3 of 175 307 0.54 n/a ~$1.0 –1.4

• 1. OT is forecast to be in the top 3 largest copper mines after planned expansion, and one of largest

gold deposits, with multi-generational reserves/resources supporting further expansion potential .

30 k 30 km m

Interpreted key structures

Tsagaan Suvarga (“TS”) MAK/EBRD NE OT trend

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Multi-target, Multi-stage: 10 licenses, 2 applications over >1560km2

Target Background License(s) Area (km2) Target Style Stage Bronze Fox (BF Intrusive Complex) KCC historic flagship 15000X 223 PCD / gold Mature exploration: Potential tonnage/grade modelling Tourmaline Hills (TH Intrusive Complex) Golden Grouse acquisition 17977X 247 PCD / gold Historically drilled: Advancing targets post return of license Red Well (North OT trend) New application (KCC) 20294X 40 PCD New License: Prospecting Bayan Tal (BT Igneous Complex) IBEX transaction 14396X 403 OT PCD (<500m) Historically drilled with grade: Multiple (T1 scale) drill ready targets East TS (Tsagaan Suvarga Massif) IBEX transaction 13615X, 17650X 240 TS PCD (<200m) Refining multiple potential drill targets (geology/geophysics on-going) Ulgii (Ulgii Massif) IBEX transaction 14523X, 14876X 14877X, 15167X 368 OT PCD / gold Advancing potential targets (geology/geophysics on-going) Subtota Subtotal l 10 10 1,521 1,521 Bayan Tal New transaction (IBEX) NE-026428 28 License pending NE OT trend New transaction (IBEX) NE-027080 16 License pending Tota Total l 12 12 1,565 1,565

Focus on Oyu Tolgoi (“OT”) & Tsagaan Suvarga (“TS”) style Porphyry Copper Deposits (“PCD”)

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Pipeline: Advancing a portfolio

• f targets along the value curve

Proven approach targeting Oyu Tolgoi (“OT”) & Tsagaan Suvarga (“TS”) style Porphyry Copper Deposits (PCD)

• Technically solid, proven

exploration: replicate the

systematic approach successfully applied in discovering similar profile Tier 1 gold rich copper porphyry discoveries in Mongolia and elsewhere

• Scale potential: Portfolio

supports advancement of Oyu Tolgoi and Tsagaan Suvarga analogues, &/or traditional gold rich finger type porphyries

• Shallow-moderate depth:

Focus leading edge of half grabens &/or uplifted fault blocks with out-subcrop providing geological window to moderate depths

• Pipeline: high quality,

ranked exploration targets between and on strike from the two mines in the belt

Geochron: age dating & fertility studies / GMAG: ground magnetic surveys / Interp: integration/Interpretation of geology/geophysics

Target Lic. # Target Style

East TS 13615 TS PCD Bayan Tal 14396 OT PCD Ulgii 14523 PCD / Gold 14877 PCD / Gold 14876 PCD / Gold 15167 PCD / Gold Bronze Fox 15000 PCD / Gold Tourmali ne Hills 17977 PCD / Gold Red Well 20294 PCD

ILLUSTRATIVE PROGRAM TIME LINE

GM GMAG AG Map ap Interp p Dr Drilling illing Geo Geochro ron

? ?

GM GMAG AG

? ? ? ? ? ? ? ? ? ?

Regional review of target generations additional corporate opportunities

? ? ? ?

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§ Historic IBEX trenching/drilling

• targeting geochem/IP

§ No mag anomaly Best intersections (margin of intrusive):

• IBEX006: 18m @ 0.66% Cu Eq
• Trench: 18m @ 0.75% Cu Eq

Large magnetic feature, suggested (Devonian?) intrusive (source needed for PCD) Conglomerate confirmed Devonian (“OT type”) stratigraphy down-hole Conglomerate Outcrop and downhole LEGEND Illustration of target drilling (400-450m depth*) IBEX trench IBEX drilling

(background interpreted ground magnetics)

Regional geology and magnetic feature suggest later intrusive (not a Devonian target)

* Illustration of a drilling target subject to final review and number of holes dependent on board approval

Advanced and complementary geology and geophysics

Priority #1 - “OT style”: Drill ready targets, historic grade

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Team: Exceptional track record with Tier 1 porphyries

Name (Positions) Board New Background/Bio

Technical Committee

Peter Leaman Senior Vice-President

• f Exploration

n § >40 yrs exploration with BHPB, incl. country manager Mongolia, 2006-09 responsible for the Ivanhoe JV, and PanAust Ltd, Regional Exploration Manager SE Asia/remains an Exploration Advisor § Hands on and target orientated responsible for project generation & exploration programs resulting in multiple discoveries incl. Tier 1 Reko Diq Cu/Au porphyry with focus on copper-gold porphyries John Holliday Chair of Technical Committee n § >30 yrs exploration with BHP Minerals and Newcrest Mining, including Chief Geoscientist, General Manager, Property Generation and more recently in the junior sector § Principal discoverer/site manager of the undercover Cadia/Marsden Tier 1 gold-copper porphyry in NSW, with worldwide experience in gold-copper deposit exploration, discovery and evaluation Sam Spring President/CEO n § Assisted form and capitalize Kincora in 2011, joining in executive capacity in 2012. Since, Kincora has been one

• f the most active exploration groups in Mongolia, oxide development studies commenced, lead resolution of the

106-exploration license dispute , together with an active M&A strategy § Former mining analyst, >10 yrs within Goldman Sachs & Ocean Equities, CA & CFA Charterholder

Advisor

Plus Minerals LLC,

• Incl. Khashgerel Bat-

Erdene & Imants Kavalieris n § Extensive experience in Mongolia, with both the Kincora and IBEX licenses and have worked on some of the largest porphyry Cu-Au deposits in SE Asia § Imants was one of the 6 executive exploration team during the exploration and delineation of the Oyu Tolgoi copper-gold porphyry deposits

In-country Executives

Cameron McRae Advisory Board (Acting Managerial)* * § Exec. Chairman of TerrCom Ltd, coal producer/development in Australia/Mongolia/RoW, with >30 yrs mining experience leading development of various projects in emerging/frontier jurisdictions § Former CEO of Oyu Tolgoi (oversaw >$6b capex), advisor to Kincora since 2014 & in acting managerial role assisting with IBEX transaction transition. Founding President of INS Mongolia and Tarva Investment & Advisory Duchintav Khojgor Director/Shareholder n § Exec. Business Development & Government Relations for Kincora. A proactive Mongolian partner and major shareholder since Kincora’s formation § Executive in various Mongolian businesses, including significant coal and other natural resource projects, with >20 yrs' experience in entrepreneurship Capital markets Luke Leslie Director/Shareholder n § Lead the formation of Kincora. A mining private equity investor with >12 yrs of transaction experience, incl. UBS Investment Bank’s Metals & Mining team, and management consultant with Accenture § Currently a Director of Shanta Gold and Moly World Eric Zurrin Independent Director n § Former CFO of Shanta Gold and previously a Director of UBS Investment Bank’s global mining team § >13 yrs of corporate and capital markets transaction experience, having worked in Toronto, London, Hong Kong, Dar es Salaam and Ulaanbaatar covering mining and industrial sectors

Multiple discovery of T1 Cu-Au porphyries In-country activities and government relations Access to capital markets Corporate governance and strategy

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Top down: Position in the cycle/sector

Return of competitive tension for potential Tier 1 projects illustrated in recent SolGold private placement

(AIM code: SOLG, YTD performance >12x )

§ End of previous commodity cycle

(YTD resource sector % performance with increasing liquidity and deal flow/financings)

§ Exploration sector provides highest beta to new cycle

(Historically more leverage, coupled with >5 years declining $, declining discovery rates, record production/reserve depletion)

§ Copper price has underperformed most industrial metals (Supply side surplus driven by a handful of new projects - near peak- but facing declining grades/increasing capital intensity) § Favorable structural outlook for copper: “we anticipate it will be the first mineral commodity in our portfolio to return to fundamental

market balance” - BHPB, Oct’16 (M&A through the cycle and overweight exploration budgets reflect the industries view of incentive/future pricing)

§ Industry focus continues to be porphyry deposits

(long life, low opex, lower risk) )

§ Gold systems preferred to moly

(Copper-gold porphyries benefit to copper-moly systems from higher by-product credits)

§ Limited under-explored copper frontiers (DRC, Philippines, PNG, Indonesia, Myanmar v Mongolia) § Lack of industry players and exploration teams/portfolios

(historically >10 NDAs with industry players when owning only one license, only Rio Tinto and TRQ left in Mongolia)

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Kincora proposition: Multiple value drivers

Leading regional exploration play in an emerging world class, gold rich copper belt

• Recently completed strategic land consolidation at discount

(US$0.9m scrip (share) v historic >US$25m cash investment and 3x in portfolio)

• Dominant position in an emerging copper and infrastructure belt
• Technical Committee with multiple discovery of Tier 1 copper porphyries
• Completion of workshop resulting in multi-target, multi-stage pipeline of targets with exploration ongoing
• Further corporate opportunities and securing additional strategic land
• Large incumbents expansion strategy(s) and/or ramping up exploration in the belt
• Only listed independent exploration play in the belt
• Experience and track record in-country
• Improved investor sentiment and new entrants to Mongolia and the copper sector
• Replication of previous/peer roadmaps for value creation

Head Office 800 - 1199 West Hasting St Vancouver, BC V6E 3T5 Canada +1 604 283 1722 www.kincoracopper.com Sam Spring — President & CEO +61431 329 345 sam.spring@kincoracopper.com Mongolian Office Khasvuu Building, 3rd Floor Peace Avenue, Transporter’s St Ulaanbaatar 14210 +976 701 0095

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