NICKEL FRAC SAND World-Class, Highest-Quality Shovel-Ready, Frac - PowerPoint PPT Presentation

TSX: Ni One Company, Two Compelling Investment Opportunities NICKEL FRAC SAND World-Class, Highest-Quality Shovel-Ready, Frac Sand Product, Sulphide Nickel Project Large Resource, Cash Flow TSX: Ni March 2015

Victory Nickel Company Profile TSX: Ni Ni:TSX – Share Capital Structure Victory Victory Shares Outstanding (10:1 consolidation 17/09/14) ~57.6 million Nickel Inc. Silica Ltd. Fully Diluted Shares * (100%) ~79.7 million Market Capitalization (04/02/15) $10.7 million Debt (incl. $4 M secured line of credit; $6 M unsecured $11.5 million convertible notes); $1 .5 M receivables line) *~2.8 M options ($0.70 average exercise price); warrants ~11.3 M ($0.35 exercise price); ~2 M ($1.00 exercise price); ~6.5 M from convertible note ($1.00 conversion price). Major Shareholders • A&M International 9.5% • Jien International 9.2% • Sea Shell Limited 8.4% • Nuinsco Resources Ltd. 5.8% • Management & Directors 2.0% 2

One Company Two Compelling Investment Opportunities TSX: Ni FRAC NICKEL SAND   Well Positioned for Resurgence in Supplying Canada with Highest Nickel Market Quality Frac Sand   Four Nickel Projects in Canada: Multi-Phased Business Plan  Phase 1 complete  Over 1 billion lbs nickel in M&I resource  Phase 2 approved by board  Ownership of Wisconsin and significant  Flagship Minago Project in Manitoba: Manitoba frac sand resources  Permitting of Wisconsin property  Feasibility study complete, permitted for  Phase 3 Winnipeg site selection progressing development  Extreme valuation discount  Frac Sand Co-Product at Minago  Strong stock performance for US peers  More advanced than Canadian peers 3

Company History From Nickel to Frac Sand TSX: Ni Frac Sand 2007 : Victory Nickel created 2009 : Feasibility study for Minago: significant frac sand by-product value identified (12.6 million tonne NI-43-101 frac sand resource) 2011-12 : Minago permitted for production, meaningful decline in nickel prices 2012 : Victory Silica created to help unlock value of frac sand at Minago 2013 : A multi-phased frac sand business created, independent of , yet complimentary to Minago Nickel Q1 2014 : Proof of concept: first frac sand sales Q3 2014 : Plant commissioning complete, sales on-going, operating cash flow Q4 2014 : Optioned Wisconsin frac sand property Q1 2015 : NI-43-101 indicated frac sand resource of 10.9 million tons in Wisconsin 4 4

Company Profile Nickel Projects TSX: Ni Four Advanced Sulphide Nickel Projects Approximately 1 billion pounds of nickel in Measured and Indicated resources and 300 million pounds of Inferred resources, NI 43-101 Lynn Lake optioned to Corazon Mining 5

Minago Project The Property TSX: Ni  Well-located  Sulphide nickel deposit  Exceptional metallurgy Minago Minago Property Property  Open pit and underground mining potential  Bankable feasibility study on open pit only  Exceptional exploration upside 6

Minago Project Reserves and Production Upside TSX: Ni  Nose Deposit open pit: 8.6-year mine life  Nose Deposit U/G (inferred resource)  North Limb: Exploration target  Mineralization open to west, north and at depth  Combined resources projected mine life of <20 years 7

Minago Project Nickel Concentrate Assay TSX: Ni Assay Component Unit Value Assay Component Unit Value Hg g/t <0.3 Ni % 22.3 K g/t 410 Cu % 1.4 Co % 0.46 Li g/t <5 Mn g/t 270 Pt g/t 2.47 Mo g/t 22 Pd g/t 6.31 Au g/t 0.63 Na g/t 240 P g/t 131 Ag g/t 4.3 Pb % 0.097 Rh g/t 0.59 Sb g/t <30 S % 24.4 Se g/t <40 Fe % 17.0 Sn g/t <20 MgO % 10.4 Sr g/t 40 SiO 2 % 12.7 Al % 0.11 Ti g/t 200 Tl g/t <30 As g/t 61.0 U g/t <60 Ba g/t 61.0 V g/t <20 Be g/t 0.10 Y g/t <10 Bi g/t <20 Zn % 0.18 Ca % 2.0 Cl % 0.044 Cd g/t <4 Cr g/t 410 F % 0.066 8

Minago Project Feasibility Study Optimization TSX: Ni Minago Sulphide Nickel Project: Economic Summary Comparison Base Case Base Case At Today’s Metal Prices Dec. 14, 2009 1 July 19, 2011 1,2 Feb. 26, 2015 ($million except % & yrs) ($million except % & yrs) Undiscounted cash flow 917.7 1,418.4 634.6 NPV @ 8% 293.8 513.0 118.7 NPV @ 6% 402.6 669.3 205.1 IRR 17.7% 22.4% 11.9% Pre-Production Capital 593.0 585.1 558.4 1. Three-year trailing average US$ metal prices and exchange rate as of market close December 10, 2009: Ni: $11.19/lb; Cu: $2.91/lb; Pd: $322.4/oz; Pt: $1,353.98/oz; Au: $836.25/oz; Co: $27.73/lb; Ag: $14.25/oz; $Can/$US exchange rate: 1.097 9 2. Updated resource

Minago Project Cost Summary TSX: Ni C1 Cash Cost Per lb Ni Feasibility Study After Optimization Net of Credits * US $1.94 (C$2.12) US $2.20 (C$2.41) Metal By-Product US $0.72 (C$0.79) US $0.77 (C$0.85) Credits Frac Sand By-Product US $3.68 (C$4.04) US $2.90 (C$3.18) Value Cash Cost per lb Nickel US $6.34 (C$6.95) US $5.87 (C$6.44) Before Credits *Net C1 costs increase when metal production increases without corresponding frac sand increase (same size pit) 10

Victory Nickel Inc. The Free NICKEL “ Call Option”

Why Victory Silica? Building a Business Independent of Minago TSX: Ni  Large domestic resource at Minago  Frac sand boom continuing  Very strong market fundamentals for frac sand  Experienced frac sand industry management  Low cost of entry/early cash flow  Strong peer group valuation  First ever public information from recent IPOs  New frac sand producer with extreme value On the way to becoming the largest supplier of the highest quality imported and domestic frac sand for delivery in Canada 12

Minago Project Frac Sand Potential TSX: Ni Existing resource within current pit shell: 15 Mt Existing & proposed quarry leases: 75 Mt potential * Proposed quarry exploration permits: 475 Mt potential * Entire land package (mineral leases + mining claims): 2 Bt potential * *Company estimates, non-NI 43-101 13

Minago Project Co-Product: Frac Sand TSX: Ni Frac Sand Feasibility Study Highlights  11.2 million tonnes marketable frac sand in pit footprint alone  Mined over first three years  Sales over 10 years  Mine gate margin per tonne ~$63  Annual net revenue ~$70 M Nickel  Processing cost/tonne = $6.50  Co-product value per pound of nickel = $4.04 (US$3.68); optimized: $3.18 (US$2.90) 14

Shale Gas / Tight Oil Revolution Frac Sand Boom TSX: Ni  Unconventional ‘shale gas’ and ‘tight oil’ previously uneconomic to recover at a large scale  Efficiency gains in horizontal drilling and the introduction of ‘fracking’ helped unlock vast natural gas and oil resources  The rapid implementation of technology changed the North American energy landscape, with a “ sand boom ” being a resulting factor  The Freedonia Group reports that frac sand consumption in North America increased by 323% between 2007 and 2012  Impact of recent oil price decrease yet to be determined Frac sand is an effective way to participate in North America’s ‘unconventional’ oil and gas production growth 15 15

What is ‘Fracking’? Frac Sand? Not all sand makes frac sand! TSX: Ni Hydraulic fracturing or ‘fracking’ is a technique used in the development of  oil & gas formations to to inc increase se flo flow w and exte tend well ll li life . Proppant (such as frac sand) holds or ‘props’ the formation open, increases porosity, and increases oil/gas flow to the wellhead Frac sand must meet unique API specifications such as miner mineralog alogy ,  roundness and strength for use in the oil & gas industry as a proppant 30/50 20/40 Victory Silica’s Frac Sand 16

Proppant / Frac Sand Market Dynamic Demand TSX: Ni Increasing Frac Intensity Increasing Sand Intensity North American Proppant Demand Model 2017 Freedonia Report Estimate, August 2013 17 Modified from Source: Raymond James “North American Sand Rush” August 19, 2014

Proppant / Frac Sand Market Positive Demand Trends TSX: Ni Commodity Price Positive Structural Demand Trends for Proppant Dependant Proppant Longer wells typically equate to Per Stage Recent decline in more proppant overall drilling Pad drilling and use Frac Stages activity largely fit-for-purpose rigs Trend towards North American oil Per Lateral due to pull back in driving efficiency more proppant and gas oil price Lateral gains per frack driven production Length Trend towards by increasing increasingly from Drilling tighter spacing evidence of unconventional Per Well between fracks resulting resource plays Wells Rig Count equates to more increased flow Per Rig proppant use rates and % extended well Horizontal lives Rigs 18 Not to scale, for illustrative purposes only

Frac Sand Price Index Frac Sand Measured as a Component of PPI TSX: Ni Frac sand prices have declined as knee jerk reaction with WTI oil price, though at a lesser rate and market fundamentals exist to help mitigate continued downward pressure 19