May 29, 2012 May 2012 A North American Near Term Copper Developer - - PowerPoint PPT Presentation

May 29, 2012 A North American Near Term Copper Developer May 2012

Forward-Looking Statements

Statements in this presentation other than purely historical information, including statements relating to the Company’s future plans, objectives or expected results, constitute forward-looking statements. Forward-looking statements are based

• n numerous assumptions and are subject to the risks and uncertainties inherent in the Company’s business, including

risks inherent in exploration and development, and uncertainties in connection with anticipated commodity prices, growth

• f worldwide market demand, exploration capital requirements, length of asset life and availability of qualified personnel,

among others. As a result, actual results may vary materially from those described in the forward-looking statements.

Resources and Reserves

The resource estimates described in this presentation have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and uses the terms “mineral reserves” and “mineral resources”. Investors are cautioned of the difference between the terms “mineral resources” and “mineral reserves” as “mineral resources” do not have demonstrated economic viability like that of “mineral reserves”. Bill Willoughby, PhD, PE, Enexco’s Chief Operating Officer and Director, an NI 43-101 Qualified Person, supervised the preparation of and verified all technical information contained in this presentation. 2

Cautionary Notes

Contact Copper Project

• Focused on advancing the 100%
• wned Contact Copper Project in

northeast Nevada towards production

• Intrusive-related deposit, oxidized
• PFS completed in Oct. 2010, BFS

planned for 2012

• Major land acquisition completed

with Allied Nevada; step-out drilling underway to test expansion potential

• Good resource upside; deposit open

along strike and at depth Au-Ag and U Exploration Assets

Enexco Overview

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Management

Arnold Armstrong - President & CEO, Chairman

• Extensive legal career. Owner of Armada Investments Ltd. and Founding Director of Silvercorp Metals
• Inc. (NYSE – SVM). Chairman & Director of Doxa Energy Ltd., Elissa Resources Ltd., and Director of

Paget Minerals Corp.

• Recognized leader in founding and managing successful public companies in natural resource sector

Bill Willoughby - Chief Operating Officer, Director

• Mining engineer with 32 years experience. PhD in Mining Engineering from the University of Idaho.

Registered Professional Engineer in Idaho. Director of Enexco since 2008

• 18 years with Teck Cominco: Chief Mine Engineer, Pend Oreille Mine; Mine Superintendent, Polaris

Mine; Senior Engineer, Projects and Evaluations, responsible for feasibility studies, mine design

Dan Frederiksen - Chief Financial Officer, Director

• 20 years senior accounting experience. CA, CPA, CFA, Bachelor of Business Administration. Director

and CFO of Elissa, Enexco, and Doxa Energy and Controller of Armada Investments Ltd.

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Directors

Arnold Armstrong

Chairman of the Board

Bill Willoughby

Director

Dan Frederiksen

Director

Jim Gibbons

Director, Senior Advisor Geologist, lawyer, former Governor of Nevada

Terry Hodson

Director Geologist, General Manager of Geology for Baja Mining

Brad Armstrong

Director Environmental Law, Partner Lawson Lundell LLP

Paul McKenzie

Director 20+ years experience in the resources sector

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Share Structure

Shares Outstanding 32,348,883 Shares Fully Diluted 38,248,883 Treasury C$ 1.9 Million Market Cap C$19.4 Million Major Shareholders Officers and Directors 23.5% Allied Nevada Gold 10%

Note: Post-financing and following completion of land acquisition from Allied Nevada

6 1 Year Stock Chart – TSX.V: IEC

• A feasibility stage, oxide copper project
• 100% owned, located in Elko County, Nevada
• Intrusive-related deposit, oxidized down >2,000 ft.
• Amenable to heap-leaching to produce copper

cathode

• Excellent infrastructure in roads, power lines, water
• 2010 Pre-feasibility study update:
• Reserves of 317 Mlbs Cu
• Measured & Indicated Resources of 711 Mlbs Cu,

plus Inferred Resource of 291 Mlbs Cu

• Recent land acquisition from Allied Nevada; likely

to have significant impact on mine optimization

• Acquired 8,000 acres of additional land
• BFS scheduled for 2012 to incorporate additional

drilling on acquired land

Contact Copper Project

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• Intrusive-related copper deposit,
• xidized down ~2,000 feet
• Copper mineralization in quartz veins,

and as fracture coatings and disseminations within granodiorite host

• Oxide mineralization open along strike to

the east and west, also open at depth

• Additional copper oxide potential in

satellite areas

• Deeper sulfide porphyry and vein targets

identified to the north and south of main resource area

Geology

2010 Reserve Outline

North Porphyry Target Vein Target

EN-88 EN-156

A A’

N

Looking west

2010 Reserve Outline

Copper Ridge West End East End

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Granodiorite K-alteration Rhyolite Carbonate Quartzite

• Resources from Oct. 2010 NI 43-101

PFS update

• Resources and Reserves reported at

0.10% Cu cut-off

2010 Reserves and Resources

Category Tons Cu (%) Pounds Cu Reserves Proven

27,011,000 0.305% 164,701,000

Probable

27,138,000 0.280% 152,199,000

Total P&P

54,149,000 0.293% 316,899,000

Resources Measured

52,976,000 0.282% 298,397,000

Indicated

82,233,000 0.251% 413,413,000

Total M&I

135,209,000 0.263% 711,810,000

Inferred

53,490,000 0.272% 291,368,000

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2010 PFS (Pre-Allied Nevada Transaction)

Metric Value

Production Start 2014 Mine Life 10 years Production 25 Mlbs/yr cathode copper Capex $86M Recovery 76% Acid Consumption 11 lb/ton Production Cost $0.93/lb Cu NPV10% @ $2.25/lb Cu $44M IRR 20.2%

• NI 43-101 Pre-feasibility Study Update completed by

Gustavson Associates in October, 2010

• Project NPV sensitive to the price of copper
• PFS analysis does not include potential impact of

Allied Nevada land acquisition deal

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NPV-10% $ x1000 Copper Price $/lb Base Case NPV at $2.25/lb

Allied Nevada Transaction

2010 Pit Outline

Enexco Allied Nevada Gold

• Allied Nevada land

acquisition deal closed

• Sept. 26, 2011
• IEC issued 3.2M shares to

Allied Nevada

• Enexco now controls

majority of the Contact mining district

• Increased land holdings

from 5,400 acres to ~13,000 acres

• Pit outline no longer

constrained by Allied Nevada land

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Post-Acquisition Exploration

2010 Pit Outline

• Following Allied

Nevada land acquisition:

• Defined drill targets
• Began 2011-2012

drill program

• On-going

metallurgical tests and environmental work

• Refining geologic

model and incorporating drill results

• Preparing to revise

reserves and mine plans for feasibility study

12 East Extension Target

2011-2012 Drill Program

• 40,000 ft (12,192 m) Drill Program Near Completion
• Initial drilling east of the 2010 reserve outline

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Intercepts Reported To-Date

ENR-3 45 feet (13.7 m) 0.92% Cu ENR-6 55 feet (16.7 m) 0.43% Cu ENR-8 130 feet (39.6 m) 0.24% Cu ENR-15 95 feet (29.0 m) 0.40% Cu ENR-26 70 feet (21.3 m) 0.48% Cu ENR-27 170 feet (51.8 m) 0.24% Cu ENR-30 110 feet (39.6 m) 0.31% Cu

Project Timeline

H2/2011 H1/2012 H2/2012 H1/2013 H2/2013 H1/2014 H2/2014 H1/2015 Allied Nevada Land Acquisition Infill & Step-Out Drilling Metallurgical Testing Bankable Feasibility Study Permitting Construction Production

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SX-EW Peers

SX-EW Copper Project Annual Production Recovery Cash Cost (US$/lb Cu) Capex (US$) NPV (US$) El Pilar (Mercator) 73 Mlbs Cu 56% $1.37 $245M $335M(3) Franke (Quadra) 35-45 Mlbs Cu(1) 86% $2.45(2) $239M $234M(4) Piedras Verdes (Priv.) 70 Mlbs Cu 62% $1.41 $135M $148M(5)

Source: Company and Technical Reports Note: (1) 2011 Guidance (2) FY 2010 (3) NPV(8%) at $2.60/lb Cu LT (4) RBC Research at $2.25/lb Cu LT (5) NPV(12.5%) at $2.00/lb Cu LT

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M&A in the Copper Sector

Target Acquirer 2011 Transactions Norsemont Mining Inc. HudBay Minerals Inc. Explorator Resources Inc. Sociedad Punta Del Cobre S.A. Creston Moly Corp. Mercator Minerals Ltd. Far West Mining Ltd. Capstone Mining Corp. Equinox Minerals Ltd. Barrick Gold Corp. Anvil Mining Ltd. Minmetals Resources Ltd. 2010 Transactions Chariot Resources Ltd. CST Holdings Ltd. Terrane Metals Corp. Thompson Creek Metals Company Inc. FNX Mining Company Inc. Quadra Mining Ltd. Continental Minerals Corp Jinchuan Group Ltd. Globestar Mining Corp. Perilya Ltd. Antares Minerals Inc. First Quantum Minerals Ltd. Citadel Resource Group Ltd. Equinox Minerals Ltd. 2009 Transactions Centario Copper Corp. Quadra Mining Ltd. Sanu Resources Ltd. Canadian Gold Hunter Corp/ Stingray Copper Inc. Mercator Minerals Ltd. Kiwara Plc First Quantum Minerals Ltd. Corriente Resources Inc. CRCC-Tongguan Investment Co. Ltd. Source: Bloomberg

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• Numbers of peers in the

development and intermediate production space have dramatically fallen off since 2009

• Growth pipelines still required

for remaining junior producers

• New junior producers needed to

fill market gaps left by acquisitions

Junior Producers

• Hypothetical impact of an additional 35 Mlbs Cu/yr to junior base metal producer profiles

Source: Company Reports

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Uranium

• Holding a 30% interest in the Mann Lake

Uranium Project in the Athabasca Basin, Saskatchewan; Cameco is operator

• 3,407 ha, between the McArthur River and

Millennium deposits

• Joint Venture
• Enexco

30.0%

• Cameco (Operator)

52.5%

• Areva

17.5%

Gold - Silver

• Exploring grass-roots level gold & silver

properties in Idaho and Nevada

• Properties with promising surface

mineralization, structural features

• Low holding costs and royalties
• Drill ready targets

Additional Assets

Bluebird project

Surface samples up to 107 opt Ag, 0.04 opt Au

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Contact Us

Spiros Cacos Corporate Development spiros@enexco.ca

2060-777 Hornby Street info@enexco.ca Phone 1.604.669.8368 Vancouver, BC V6Z 1T7 www.enexco.ca Fax 1.604.662.3691