Noront Resources Q4 2014 1 CAUTIONARY NOTE REGARDING - - PowerPoint PPT Presentation

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Noront Resources Q4 2014 1 CAUTIONARY NOTE REGARDING - - PowerPoint PPT Presentation

CORPORATE PRESENTATION Noront Resources Q4 2014 1 CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION This presentation includes certain forward - looking information within the meaning of applicable Canadian securities legislation.


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CORPORATE PRESENTATION

Noront Resources

Q4 2014

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This presentation includes certain “forward-looking information” within the meaning of applicable Canadian securities legislation. Examples of such forward-looking information includes information regarding the timing, extent and success of exploration, development and mining activities, conclusions of economic evaluations (including those contained in the Technical Report, as defined herein), project financing requirements, project permitting, planned infrastructure for the Ring of Fire region and the estimated and anticipated economic impact of Noronts mineral projects. Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; risks related to government and environmental regulation, actual results of current exploration and development activities, changes in project parameters as plans continue to be refined; problems inherent to the marketability of base and precious metals; industry conditions, including fluctuations in the price of base and precious metals, fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects the Company; stock market volatility; competition; risk factors disclosed in the Company’s most recent Management’s Discussion and Analysis and Annual Information Form, available electronically on SEDAR; and such other factors described or referred to elsewhere herein, including unanticipated and/or unusual events. Many such factors are beyond Noront’s ability to control or predict. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate as actual results and future events could differ materially from those reliant on forward-looking information. All of the forward-looking information given in this presentation is qualified by these cautionary statements and readers are cautioned not to put undue reliance on forward-looking information due to its inherent uncertainty. Noront disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by law. This forward-looking information should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release. Paul Semple, P.Eng., Chief Operating Officer of Noront , Qualified Person as defined by National Instrument 43-101 –Standards of Disclosure for Mineral Projects (“NI-43-101”), has reviewed and approved for the technical information contained in this presentation.

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  • First staked claims in Ring of Fire more than a decade ago (2003)

‒ $200M+ invested in exploration, community engagement, permitting and engineering

  • Discovered Eagle’s Nest nickel-copper-PGE deposit in 2007
  • Key Noront shareholders:

– Resource Capital Funds – global mining private equity firm with investments in over 100 mining companies – Baosteel - Fortune 300 company, largest stainless steel producer in China

  • Completed positive Feasibility Study in 2012
  • Completed 3-year baseline and environmental study, issued draft

EIS/EA for discussion in 2013

  • Continuing commitment to the Ring of Fire

‒ Purchased Cliff’s camp in 2014

  • Recognized for leadership in sustainable mining

‒ Ranked first in MacCormick’s Index (2012, 2013) ‒ Winner of the 2015 PDAC Environmental and Social Responsibility Award

NORONT KEY FACTS

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RING OF FIRE

  • The Ring of Fire is located in

the James Bay Lowlands of Northern Ontario

‒ Covers 5,000 square km ‒ Emerging new mining district with vast exploration potential ‒ 500km NE of Thunder Bay “Noront is now leading the charge…”

  • Greg Rickford

Federal Minister of Natural Resources

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LARGEST LAND POSITION IN RING OF FIRE

  • Noront is one of the largest

land holders in the Ring of Fire

‒ 257 claims covering approximately 57,840 hectares

  • Awarded Mining Lease April 2014

covering 4,100 hectares in the Eagle’s Nest area

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  • Alan Coutts, President & CEO

25+ years of experience in all aspects of exploration, feasibility, construction and production

  • Paul Semple, COO

30 years building and operating mines worldwide

  • Greg Rieveley, CFO

15 years experience in all aspects of project financing and operations

  • Glenn Nolan, VP, Aboriginal Affairs

Former Chief, Missanabie Cree First Nation, President PDAC (2012-14)

  • Mark Baker, VP, Projects

30 years experience in all aspects of project planning

  • Colin Webster, VP, Sustainability

20 years experience in project operations and sustainability

  • Scott Jacob, Manager, Community Relations

Former Webequie First Nation Chief

  • Kaitlyn Ferris, Manager, Corporate Responsibility

Represents Noront in First Nation community youth programs

NORONT MANAGEMENT

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Overview Listing: TSX Symbol: NOT December 31st, 2014: $0.275 52 Week High: $0.70 52 Week Low: $0.24 Market Cap ~ $66.1 M Shares O/S: ~ 240.5 M Shares F/D: ~ 296.1 M Working Capital: ~ $4.2 M Debt: $15.0 USD M Major Shareholders Resource Capital Fund: 21.24% Baosteel: 9.5%

CORPORATE INFORMATION

Aerial view of Eagle’s Nest Mine

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12 MONTH STOCK PERFORMANCE

  • 50%

0% 50% 100% 150% 200% NOT TSX-V LME Ni Nickel Developers

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2012 FEASIBILITY RESULTS

September 2012 Metal Prices Dec 2014 Metal Prices

Initial Capital (CDN) $ 609 M Sustaining Capital (CDN) $ 160 M C1 Cash Cost (USD /lb Nickel, net of by-products) $ 1.53 $ 1.22 C1 plus Sustaining (USD /lb Nickel, net of by-products) $ 2.04 $ 1.67 Average annual after-tax cash flow (CDN) $ 180 M $ 158 M NPV (after tax) @ 8% (CDN) $ 543 M $ 381 M IRR 28% 23% Payback 2 years 2.5 years Average Annual Nickel Production 15 kt

Revenue Contribution September 2012 Prices Revenue Contribution December 2014 Metal Prices

Ni 67% Cu 14% Pt 7% Pd 11% Au 1% Ni 61% Cu 13% Pt 7% Pd 18% Au 1%

Price Assumptions

  • Sept. 2012
  • Dec. 2014

Nickel (USD/lb) 9.43 6.95 Copper (USD/lb) 3.6 2.79 Platinum (USD/oz) 1,600 1,214 Palladium (USD/oz) 599 799 Forex (USD/CAD) 1.01 1.16

Note: The feasibility results shown above are based on September 2012 metal prices are contained in the report titled “NI 43-101 Technical Report Feasibility Study McFaulds Property Eagle’s Nest Project James Bay Lowlands Ontario, Canada dated October 19, 2012 (with an effective date of September 4th, 2012, a copy of which is available under Noront’s company profile on SEDAR at www.sedar.com.

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PROJECT FINANCING

  • Production profile supports

significant debt capacity

  • Debt discussions underway with

commercial banks and export credit agencies

  • Strong shareholder support to

backstop equity requirement

Financing Requirements $ CDN (000)

Pre-Production Capital Mining $ 195 Processing 113 Site-Infrastructure 100 In-directs 158 Contingency 44 Initial Working Capital 30 Interest and Fees 40 Total $ 680

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PEER COMPARISON

Noront EA

Noront Eagle’s Nest Sirius Nova Nickel Project

Market Cap $57 M (USD) $859 M (USD) Cash and Cash Equivalents $3.6 M (USD) $200 M (USD) Debt $15 M (USD) $0 EV $68.4 M (USD) $659 M (USD) Location Ontario, Canada Western Australia Mine Type Underground Underground Current Development Stage Completed Feasibility Study Permitting and Financing Underway Completed Feasibility Study Permitting and Financing Underway Mineral Reserves ( under JORC or NI 43-101)

  • Nickel Equivalent (including recoveries)
  • Nickel Equivalent (pounds)
  • EV/2 P&R (USD / lb Nickel Equivalent

2.37 % 693 M $ 0.17 2.30 % 732 M $ 1.32

Average Annual Nickel Production

(~tonnes per year)

15,500 (21,500 to start) 26,000 Nickel Cash Costs Net of Credits

(USD /lb nickel)

$1.53 $1.50

Source: Raymond James Ltd. Market Information as of Dec 31st 2014. Shares outstanding, debt and cash balances as of Dec 31, 2014, adjusted for subsequent events Ni Eq based on US$7.50/lb Ni, US$3.00/lb Cu, US$1,600/oz Pt, US$800/oz Pd, and US$12.00/lb Co Noront mineral reserves are only on the Main Eagle’s Nest Zone Nickel production and cash costs from both companies’ respective feasibility study press releases.

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PROJECT PIPELINE

2020 2018 2025

Eagle’s Nest Eagle’s Nest Expansion Chromite Expansion 1st Stage Chromite Thunderbird (Fe, V, Ti) New Nickel Discoveries

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EAGLE’S NEST

  • First project is the Eagle's Nest Mine with 11-20 year life
  • High-grade nickel-copper-platinum group element deposit
  • Development is expected to inject $2.4 billion into the Ontario economy over life of

mine

  • Nearest communities are remote First Nations located 75km away (fly-in/fly-out)
  • Noront has proposed a 280km all-season road to provide access from north of Pickle

Lake to the Ring of Fire

Mineral Reserve & Resource 1 Category Tonnes (000) Nickel (%) Copper (%) Platinum (gpt) Palladium (gpt) Proven and Probable 11,131 1.68 0.87 0.89 3.09 Inferred 8,966 1.10 1.14 1.16 3.49

1. Please see the report titled “NI 43-101 Technical Report Feasibility Study McFaulds Lake Property Eagles’s Nest Project James Bay Lowlands Ontario, Canada,” dated October 19th, 2012 (with an effective date of September 4, 2012) (the “Technical Report”) for details regarding the mineral reserve estimate above (section 15.1) and the mineral resource estimate above (14.2). Sections 14.2 and 15.1 of the Technical Report include a description of the key assumptions, parameters, and methods used to estimate the mineral resources and mineral reserves respectively. A copy of the Technical Report may be accessed under Noront’s company profile on SEDAR at www.sedar.com 2. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing or other relevant issues.

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ABOUT THE PROJECT

  • Eagle’s Nest is expected to produce

150-200K tonnes of bulk nickel- copper-PGE concentrate per year

  • Mine design optimizes project

economics and incorporates significant input from discussions with local communities and other stakeholders

‒ Underground, blast-hole open stope mine ‒ First of its kind to have all tailings underground ‒ Will recycle 100% of its process water ‒ Aggregate source to be located underground

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MINERAL PROCESSING

  • Life of mine average concentrate production:

‒ 15.5 kt Ni in concentrate per annum

Grade Recovery Ni 10.2% 83.1% Cu 5.7% 89.7% Pt 5 gpt 74.0% Pd 19 gpt 82.3% Au 1 gpt 76.7%

Note: See section 17 of the Technical Report for further details regarding recovery methods.

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PROJECT STATUS

  • Permitting Project
  • Actively advancing towards production
  • Draft copy of EIS/EA Report circulated December 2013, currently in review period
  • Project consultation is continuing
  • Finalizing road location, construction plans
  • Securing financing
  • Early-stage negotiations with impacted First Nations
  • Training local workforce through Ring of Fire Aboriginal Training Alliance
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EAST WEST ACCESS ROAD

  • 280 km all-season road required to

access site

  • Infrastructure backbone (road, power,

fibre) for remote communities

  • Follows established winter road

corridor

  • Minimizes park and river crossings
  • Last 80 km to site requires

construction over wetland

  • In April 2014 the province committed

$1B dollars for Ring of Fire infrastructure

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ENHANCED COMMUNITY ENGAGEMENT

  • Spent past 5 years engaging, learning and

listening to communities

  • Regularly met with Chiefs and Councils
  • Held numerous town hall meetings with community

members

‒ 12 formal open houses in 8 communities

  • ver the past 2 years
  • Meetings held in English and Ojicree; written

material supplied in English, French, Ojicree, Cree

  • Led youth camps, movie-making project and

Christmas Fund

  • Created interactive website portal (mikawaa.com)

to explain project activities

  • Developed Mikawaa Hour radio program to

provide project updates in Ojicree

  • First in MacCormick’s Social Responsibility Index,

2012, 2013

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PROJECT TIMELINE

2012 2013 2014 2015 2016 2017 2018

Community Consultation IBA Negotiations Eagle’s Nest Feasibility Detailed Engineering EIS/EA Permitting Finance Construction Commissioning Production

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CONSTRUCTION TEAM

Road construction and design Process plant design and equipment Camp construction, operation and catering Mine design, operating and capital cost estimate Road design, capital and operating cost estimate Construction and infrastructure materials. Automation design and process control Underground equipment fleet

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BLACKBIRD CHROMITE

  • 1 - 2M tonnes of ore per year underground chromite project
  • 0.6-1.2M tonnes of high grade concentrate which may produce 300 – 600 kt of high

carbon ferrochrome

  • Shared infrastructure with Eagle’s Nest

Mineral Resource Estimate1 Category Tonnes Cr203 (%) Cr:Fe Measured and Indicated 20.46 M 35.76 1.97 Inferred 23.48 M 33.14 1.97 Total 43.94 M 34.36 1.97

  • 1. Please see Section 14.1 of the Technical Report for details of the mineral resource estimate above (effective date September 4, 2012), including a description of the key

assumptions, parameters and methods used to estimate the mineral resources.

  • 2. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by

environmental, permitting, legal, title, socio-political, marketing or other relevant issues.

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2013 CHROME MARKETS

35% 28% 26% 9% 2% High Carbon Ferrochrome Imports China Asia ex. China Europe North America ROW

  • China represents the market for raw chromite ore and concentrates
  • Main source of ore delivered to China is low cost South African ore
  • Producing ferrochrome expands market and profit margins from value-added upgrade
  • Ring of Fire ferrochrome can supply North America, European and Asian Markets

84% 8% 5% 1% 2% Chrome Ore and Concentrates Imports

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EXPLORATION POTENTIAL

  • Nickel sulphides – 20 km

favourable horizon, 4 km well-tested

Deposits are usually in clusters

  • Area is poorly explored and

already significant discoveries in multiple commodities

  • Infrastructure will kick start

second round of exploration rush

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NORONT FIRSTS

Since discovering the Eagle’s Nest deposit in 2007, Noront has been at the forefront of development in the Ring of Fire with a series of notable firsts:

  • First Discovery: Eagle’s Nest Mine
  • First Exploration Agreement
  • First Chromite Resource
  • First Nickel Ore Reserve
  • First Positive Feasibility Study
  • First Training & Development Alliance
  • First Completed EIS/EA Report
  • First place in the MacCormick CSR Index
  • First Mining Lease
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THANK YOU