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. 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 r ecent Management’s Discussion and Analysis and Annual Information Form, available electronically on SEDAR; and such other factors d escribed 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. 2
NORONT KEY FACTS • 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 3
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 4
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 5
NORONT MANAGEMENT • 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 6
CORPORATE INFORMATION 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% Aerial view of Eagle’s Nest Mine Baosteel: 9.5% 7
12 MONTH STOCK PERFORMANCE 200% 150% 100% NOT TSX-V LME Ni Nickel Developers 50% 0% -50% 8
2012 FEASIBILITY RESULTS September 2012 Dec 2014 Metal Prices 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 Revenue Contribution September 2012 Prices December 2014 Metal Prices Au Pd Au Pd 1% Price Assumptions Sept. 2012 Dec. 2014 11% 1% 18% Pt Nickel (USD/lb) 9.43 6.95 Pt 7% 7% Copper (USD/lb) 3.6 2.79 Cu Cu Platinum (USD/oz) 1,600 1,214 14% 13% Palladium (USD/oz) 599 799 Ni Forex (USD/CAD) 1.01 1.16 Ni 61% 67% 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 4 th , 2012, a copy of which is available under Noront’s company profile on SEDAR at www.sedar.com. 9
PROJECT FINANCING • $ CDN Production profile supports Financing Requirements significant debt capacity (000) • Debt discussions underway with Pre-Production Capital commercial banks and export Mining $ 195 credit agencies Processing 113 • Strong shareholder support to backstop equity requirement Site-Infrastructure 100 In-directs 158 Contingency 44 Initial Working Capital 30 Interest and Fees 40 Total $ 680 10
PEER COMPARISON Noront Sirius Noront EA Eagle’s Nest 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 Completed Feasibility Study Completed Feasibility Study Current Development Stage Permitting and Financing Underway Permitting and Financing Underway Mineral Reserves ( under JORC or NI 43-101) 2.37 % 2.30 % - Nickel Equivalent (including recoveries) 732 M - Nickel Equivalent (pounds) 693 M $ 1.32 $ 0.17 - EV/2 P&R (USD / lb Nickel Equivalent 15,500 Average Annual Nickel Production 26,000 (~tonnes per year) (21,500 to start) Nickel Cash Costs Net of Credits $1.53 $1.50 (USD /lb nickel) Source: Raymond James Ltd. Market Information as of Dec 31 st 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 11 Nickel production and cash costs from both companies’ respective feasibility study press releases.
PROJECT PIPELINE Chromite Eagle’s New Nickel 1 st Stage Expansion Discoveries Nest Chromite 2020 2025 2018 Thunderbird Eagle’s Nest (Fe, V, Ti) Expansion 12
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