Morien Resources Corp. 2017 Annual General Meeting Superior Assets - - PowerPoint PPT Presentation

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Morien Resources Corp. 2017 Annual General Meeting Superior Assets - - PowerPoint PPT Presentation

Morien Resources Corp. 2017 Annual General Meeting Superior Assets Highly Disciplined Strategy TSX-V: MOX www.MorienRes.com June 2017 Forward Looking Statements Some of the statements made by Morien Resources financial markets or general


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Morien

Resources Corp.

TSX-V: MOX www.MorienRes.com June 2017

2017 Annual General Meeting

Superior Assets è Highly Disciplined Strategy

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SLIDE 2

Forward Looking Statements

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Some of the statements made by Morien Resources

  • Corp. (“Morien”) in this presentation may constitute

"forward-looking information" as defined under applicable securities laws. These statements reflect Morien's current expectations of future revenues and business prospects and opportunities and are based on information currently available to Morien. Morien cautions that actual performance will be affected by a number of factors, many of which are beyond its control, and that future events and results may vary substantially from what Morien currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include risks and uncertainties described in Morien’s annual information form filed with the Canadian Securities regulators on SEDAR (www.sedar.com). Morien cautions that its royalty revenue will be based

  • n production by third party property owners and
  • perators who will be responsible for determining the

manner and timing for the properties forming part of Morien’s royalty portfolio. These third party owners and operators are also subject to risk factors that could cause actual results to differ materially from those predicted herein including: volatility in financial markets or general economic conditions; capital requirements and the need for additional financing; fluctuations in the rates of exchange for the currencies of Canada and the United States; prices for commodities including gold, coal and aggregate; unanticipated changes in production, mineral reserves and mineral resources, metallurgical recoveries and/

  • r exploration results; changes in regulations and

unpredictable political or economic developments; loss of key personnel; labour disputes; and ineffective title to mineral claims or property. There are other business risks and hazards associated with mineral exploration, development and mining. Although Morien believes that the forward-looking information contained herein is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Morien expressly disclaims any intention or obligation to update or revise any forward-looking information in this news release, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. Unless otherwise indicated, all dollar values herein are in C$.

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SLIDE 3

Morien Resources Corp.

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Definition:

A Canadian based mining development company that holds royalty interests in two (coal and aggregates) world class, tidewater accessed

  • projects. The coal project recently commenced production and the

aggregate project is expected to commence production in 2020. Morien’s management team exercises ruthless discipline in managing both the top and bottom halves of the financial ledger. Shareholder returns are paramount over corporate size, number or scale of assets and industry recognition.

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Corporate Overview

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Ticker symbol TSX-V: MOX Shares outstanding 52.7 mln Shares fully diluted 57.9 mln Market capitalization $28 mln Free float $22 mln Cash $2.8 mln Marketable securities $400k Warrants nil Debt nil Major Shareholders Kameron Collieries 11.3% Morien management & directors 8.7% 7 Shareholders > 1 mln shares 18.4%

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Donkin Coal Mine Project - Then

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Donkin Coal Mine Project - Now

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Donkin Mine in Production

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Donkin Coal Mine - Update

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§ Owner/Operator Kameron Collieries commenced

production with a single continuous miner unit on February 28, 2017

§ Anticipated that four continuous miners will be

  • perational in 2018

§ Production expected to rise to 2.75 mln tonnes per

year over a 3 to 4 year period 1

§ 25+ year life of mine 2 § 64 employees/contractors now on site; projecting 135

full-time employees at full production

§ Washplant to become operational in Q3-2017 § Significant upside to Morien with increase in coal

price and/or production

1. Production volumes subject to change based on market conditions 2. Based on the Technical Report on the Donkin Coal Project prepared by Marston & Marston, dated June 2011, found on SEDAR and on Morien's website. 3. Valuation is subject to Kameron Collieries’ production plan and coal sales price.

$0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 0.50 1.00 2.00 2.75 $70/t USD $100/t USD Coal Price 3 Production (mln tonnes) Annual Royalty Revenue to Morien (Pre-Tax) 3

Morien 2% to 4% Royalty

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SLIDE 9

Global Coal Trade

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Source: AME Group

Coal Demand Growth - 2015 to 2030

Thermal Coal Demand Metallurgical Coal Demand

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Coal Type Coal Quality $USD / tonne (June 2017) $USD / tonne (June 2016)

Australian Premium Low-Vol Metallurgical

(CFR basis, capesize freight to Rotterdam)

21% VM, 71% CSR $188 $99 US High-Vol A hard coking coal

(FOB US East Coast)

32% VM, 30,000 Fluidity, 0.85% S, 7% Ash $190 $91 US Low-Vol hard coking coal

(FOB Central Appalachians)

19% VM, 58% CSR, 0.8% S, 8% Ash $175 $89 US High-Vol B hard coking coal

(FOB US East Coast)

34% VM, 25,000 Fluidity, 1% S, 8% Ash $158 $83 Thermal coal

(CIF Rotterdam, from US East Coast)

10,800 BTU, 11% Ash, 0.7% S $78 $60

§ Kameron expects Donkin to be marketable as both a high-energy thermal coal and as a high quality metallurgical coal with the following washed coal quality: 13,500+ BTU, 3.5% Ash, 37% Volatile Matter, 1.5-2.0% Sulphur, 8% Crucible Swelling Number, and 20,000+ ddpm Fluidity

Source of information in table: S&P Global Platts, 11-May-2017

Coal Pricing

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Black Point Aggregate Project

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Black Point Aggregate Project

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§ Owner/Operator - Vulcan Materials ($17 bln

market cap)

§ Massive Resource: 400+ mln tonnes of Class-A

construction aggregate 1

§ 50+ year life of mine 1 § Fully permitted in Q2-2016 § Project received positive federal and provincial

environmental permitting decisions in Q2-2016

§ Capital Expenditure: $80 to $110 mln, with start-

up scheduled for 2018

§ Weight based production royalty § Anticipated Annual Royalty: $250k to $750k over

50 years 2

  • 1. Resource estimate is not based on a NI 43-101 technical report. It is conceptual in nature and derived from internal estimates made by Morien and Vulcan.
  • 2. Royalty income estimate based on Vulcan Materials annual production estimate for Black Point.

2 4 6 8 10 12 14 16

Playa del Carmen, Vulcan Top Quarry, Mexico Balcones, Cemex Top Quarry, Texas Beckmann, Martin Marietta Top Quarry, Texas Susan Lake, Canada's Top Quarry, Alberta

Black Point 5.0 mln T capacity

Black Point Peer Comparison

Annual Production (mln T)

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Where are we in the Black Point Process?

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April 2016

  • Project received positive

environmental permits Apr 2016 – 2018

  • Industrial and environmental

permitting continues

  • Market analysis
  • Submerged land lease
  • Environmental surveys
  • First Nations engagement
  • Fish habitat
  • Transport Canada
  • Wetlands
  • NS Power supply
  • Final Investment Decision

Fun Fact

Per Capita Aggregate Consumption in Vulcan Served Markets

5 to 7 tons per person per year

Spring 2018

  • Vulcan Decision to Invest
  • Potential Site construction

Spring 2021

  • Operations and sales

2070+

  • Decommissioning
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Vulcan in the Recovery Phase

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Morien’s Project Generation

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§ Focused on acquiring additional royalties to compliment existing portfolio § Morien does not compete where it can’t compete § Commodity Types:

Industrial minerals Specialty / minor metals Bulk commodities Oil and gas

§ Jurisdictions

Americas, Europe

§ Project Stage

Producing or near-to-production assets

§ Owner

Proven operating track record

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P/NAV Multiple Comparison to Royalty Peers

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0.0 0.5 1.0 1.5 2.0 2.5 3.0

Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7

0.0 0.5 1.0 1.5 2.0 2.5 3.0

Morien

Morien Precious Metals Focus

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Normal Course Issuer Bid

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§ 7.0 mln shares purchased since March 2015 at an average cost of $0.26/share § Morien continues to utilize its NCIB

$0.19 $0.24 $0.29 $0.34 $0.39 $0.44 $0.49 $0.54

  • 200,000

400,000 600,000 800,000 1,000,000 1,200,000

Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Aug-16 Nov-16 Dec-16 Apr-17 May-17 Jun-17

Number of Shares Share Price

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The Next 18 Months

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§

First export of Donkin coal and receipt of $1.5 mln milestone payment

§

First royalty cheque from Kameron

§

Pursue accretive acquisitions to enhance royalty portfolio

§

Minimum quarterly royalty payment from Vulcan commencing in Q3 2017 1

§

Prospective sale of 1,054 acres in Georgia USA

§

Final Black Point milestone of $400,000 from Vulcan Materials

§

Potential dividend on portion of royalty cash flow from Donkin

§

Continued share buy backs

  • 1. Credited against future production
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Share Performance

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  • 100%
  • 50%

0% 50% 100% 150% 200% 250%

Morien; 148% Aurico; 129% Eurasian; 74% Solitario; 12% Altius; -28% Terraco; 8% Sandstorm; 11%

Share performance against royalty companies with less than $1 bln market capitalization
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Contact

TSX-V: MOX

www.MorienRes.com info@MorienRes.com Metropolitan Place 99 Wyse Road, Suite 1480 Dartmouth, N.S. Canada, B3A 4S5 Tel: 902-466-7255

John P.A. Budreski

President & CEO

Mike MacDonald

Vice President, P.Geo

Mike O’Keefe

CFO

Dawson Brisco

VP Corporate Development, P.Geo dbrisco@MorienRes.com