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Developing the World s Next Major L ithium Production Project P F S R e s u l t s : I n v e s t o r P r e s e n t a t i o n Q 2 2 0 1 6 DISCLAIMER IMPORTANT INFORMATION The information contained in these slides has been prepared by

SLIDE 1

Developing the World’ s Next Major L ithium Production Project

P F S R e s u l t s : I n v e s t o r P r e s e n t a t i o n Q 2 2 0 1 6

SLIDE 2

DISCLAIMER

IMPORTANT INFORMATION The information contained in these slides has been prepared by Bacanora Minerals Ltd (“Bacanora” or “Company”). The information in these slides and the presentation made to you verbally is subject to updating, completion, revision, further verification and amendment without notice. These slides have not been approved by the United Kingdom Listing Authority as a prospectus under the Prospectus Rules (made under part VI of the Financial Services and Markets Act 2000 (“FSMA 2000”)) or by the London Stock Exchange. These slides and the presentation do not constitute or form part of any offer for sale or solicitation or any offer to buy or subscribe for any securities nor will they or any part of them form the basis of, or be relied

n in connection with, or act as any inducement to enter into, any contract or commitment. Recipients of these slides who are considering acquiring common shares in the capital of the Company (“Common Shares”) are reminded

that in relation to any such purchase or subscription no reliance may be placed for any purpose on the information or opinions contained in these slides or the presentation or on their completeness, accuracy or fairness. These slides are presented purely for information purposes. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of the Company or any of its directors, officers, partners, employees, agents or advisers, or any other person, as to the accuracy or completeness of the information or opinions contained in these slides or the presentation. Accordingly, no responsibility or liability is accepted by any of them for any such information or opinions or for any errors,

missions, misstatements, negligence or otherwise for any other communication, written or otherwise, but except that nothing in this paragraph will exclude liability for any undertaking, representation, warranty or other

assurance made fraudulently. The Company’s nominated adviser is Cairn Financial Advisers LLP (“Cairn”) and its joint brokers are HD Capital Partners Ltd (“HD Capital”) and Stifel Nicolous Europe Limited (“Stifel”). HD Capital, Stifel and Cairn, which are regulated by the Financial Conduct Authority, will not be responsible for the contents of these slides, nor for providing the protections afforded to customers of HD Capital and Cairn, nor for providing any advice in relation to the contents of these slides. Neither HD Capital nor Cairn has authorised the contents of these slides or any of them. These slides are for distribution in or from the UK only to persons authorised or exempted within the meaning of those expressions under FSMA 2000 or any order made under it or to those persons to whom these slides may be lawfully distributed pursuant to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“Financial Promotion Order”) as amended, including investment professionals as defined in article 19(5) and high net worth entities as defined in article 49(2) of the Financial Promotion Order. Persons who do not fall within any of these definitions should not rely on these slides nor take any action upon them, but should return them immediately to the Company. These slides are confidential and are being supplied to you solely for your information and may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose. By accepting receipt

f this document, you agree to be bound by the limitations and restrictions set out above.

Neither these slides nor any copy of them may be taken or transmitted into the United States of America or its territories or possessions (“United States”), or distributed, directly or indirectly, in the United States, or to any U.S. Person as defined in Regulation S under the Securities Act 1933 as amended, including U.S. resident corporations, or other entities organised under the laws of the United States or any state of the United States, or non-U.S. branches or agencies of such corporations or entities. Neither these slides nor any copy of them may be taken or transmitted into or distributed in Canada, Australia, Japan, South Africa or the Republic of Ireland, or any other jurisdiction which prohibits such taking in, transmission or distribution, except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of United States or other national securities laws. Canadian Securities Law Reader Advisory: This document contains forward-looking information within the meaning of applicable Canadian securities legislation relating, but not limited to, Bacanora Minerals Ltd.’s expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward looking words such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “intent”, “estimate”, “may” and “will” or similar words suggesting future outcomes or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. Forward-looking information in this presentation includes, but is not limited to, the estimated future value of the Sonora Lithium Project. Disclosure pertaining to such projects is derived from resource estimates and a Preliminary Feasibility Study (“PFS”) prepared in accordance National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and applicable Canadian securities laws and regulatory policies. Please refer to Bacanora's corporate profile on SEDAR at www.sedar.com. Readers are encouraged to review such reports in their entirety. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. The NI 43-101 report in respect of the Sonora Lithium Project includes estimates for both indicated resources and inferred resources. Inferred mineral resources are those that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as mineral reserves. In order to complete the aforementioned NI 43-101 report and PFS, the Qualified Persons in respect of such reports have used forward looking information including, but not limited to, assumptions concerning lithium commodity prices, cash flow forecasts, project capital and operating costs, commodity recoveries, mine life and production rates. Readers are cautioned that actual results, should they be realised, may vary from those presented in the PFS and the NI 43-101 report. Further testing will need to be undertaken in order to confirm the economic feasibility of the Sonora Lithium Project. There have been no prior pre-feasibility or feasibility studies undertaken for the Sonora Lithium Project other than as disclosed in the Company’s news release dated 3 March 2016. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: commodity price volatility; general economic conditions in Canada, the United States, Mexico and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

1 2

SLIDE 3

COMPANY SNAPSHOT

A I M a n d T S X - V l i s t e d m i n e r a l d e v e l o p m e n t c o m p a n y L a r g e s c a l e h i g h g r a d e r e s o u r c e – 4 . 5 m i l l i o n t o n n e s ( L C E ) I n d i c a t e d N I 4 3 - 1 0 1 a n d 2 . 7 m i l l i o n t o n n e s I n f e r r e d N I 4 3 - 1 0 1 F o c u s e d o n b e c o m i n g a 3 5 , 0 0 0 t p a l i t h i u m p r o d u c e r i n M e x i c o L o w o p e r a t i n g c o s t s o f ~ $ 2 , 7 0 0 / t L i 2C O 3 d e m o n s t r a t e d b y P F S S t r o n g c a s h p o s i t i o n o f C A D $ 2 0 m i l l i o n * - f u l l y f u n d e d t o c o m p l e t e F S E x p e r i e n c e d m a n a g e m e n t t e a m w i t h e x t e n s i v e e x p e r i e n c e i n d e v e l o p i n g p r o d u c t i o n a n d o f f - t a k e s f o r l i t h i u m

*BCN Financial Statements 31 December 2015

SLIDE 4

STRATEGY

A Feasibility Study (FS) will now commence focused on developing Sonora into an open-pit mine and lithium carbonate processing facility with a life of

ver 20 years developed in 2 phases:

Phase 1 Years 1 & 2 of Production 17,500 tonnes per year of battery-grade Li2CO3 Phase 2 Year 3 Onwards Expansion to 35,000 tonnes Li2CO3 per year Potential to produce up to 50,000 tpa of potassium sulphate for sale to the domestic Mexican fertiliser industry

SLIDE 5

PFS OVERVIEW – 5 YEAR PAYBACK

P F S * d e m o n s t r a t e s h i g h l y a t t r a c t i v e e c o n o m i c s o f d e v e l o p i n g S o n o r a i n t o a n o p e n - p i t m i n e a n d l i t h i u m c a r b o n a t e p r o c e s s i n g f a c i l i t y w i t h a l i f e o f

v e r 2 0 y e a r s

Production 35,000 tpa Average LOM operating costs (US$/t Li2CO3) ~ 2,700*

Av. operating costs (US$/t Li2CO3 net
f K2SO4 credits)

2,100 Initial Construction Capital Cost (US$) 240m Net Present Value ($USM) pre-tax 776 IRR (%) pre-tax 29 Simple Payback (years) 5 Average annual EBITDA with co- products (US$) 134m/year Stage 2 Construction Capital Cost (US$) 177m Post-tax NPV (at 8% discount) ($million) 542m Post-tax IRR (%) 25

*BCN PFS press release dated 3 March 2016

SLIDE 6

PEER ANALYSIS

B a c a n o r a ’ s p r o j e c t e d l o w o p e r a t i n g c o s t s p o s i t i o n s i t v e r y f a v o u r a b l y i n c o m p a r i s o n t o i t s p e e r s

Source: Bacanora and Roskill data combined

SLIDE 7

THE LITHIUM MARKET

High energy storage (lithium batteries), insulating and heat

resistant capabilities

11% annual growth in global consumption between 2012-2017

forecast*

Total global production for 2013 was 186,000 tonnes of lithium

carbonate equivalent (LCE)*

Rechargeable lithium-ion batteries expected to drive demand
Expected increase in global demand to 280,000 tonnes per annum

LCE by 2020 from 186,000 tonnes in 2013*

North America aiming for 500,000 vehicles per year by 2020 and
ver 40 new models of HEV and EV to be released in China by

2015*

85% of lithium production is from 4 companies, (FMC, Rockwood,

SQM and Tianqi)*

Sector M&A activity increasing - US$6 billion merger between

Albemarle and Rockwood (July 2014)*

*LCE is the industry standard terminology for, and is equivalent to, Li2CO3. 1 ppm Li metal is equivalent to 5.32 ppm LCE / Li2CO3. Use of LCE is to provide data comparable with industry reports and assumes complete conversion of lithium in clays with no recovery or process losses.

Tablet rechargeable batteries Smart phone batteries Smart Grids Electric Vehicles A k e y c o m p o n e n t i n a r a n g e o f i n n o v a t i v e i n d u s t r i e s p r o v i d i n g s t r o n g m a r k e t d y n a m i c s

* Source: USGS, Roskill, SignumBox, www.insideevs.com, Bloomberg

SLIDE 8

LITHIUM VIEWS

Toyota said it has sold more than 5 million gasoline – electric hybrid vehicles since they first went on sale in 1997 "Lithium supply security has become a top

priority for Asian

technology companies"

Source: U.S. Geological Survey

Current forecasts predict the global market for Li-ion batteries in passenger

vehicles will grow from $3.2 billion in 2013 to

$24.1 billion in

2023*

“

The global lithium-ion battery market was estimated at $17.5bn in 2013. Market size to

quadruple ($70B) by

2020* ” 8

*Sources: www.insideevs.com / www.bloomberg.com

GM anticipates the Bolt will deliver an all- electric range more than

320 km, with a cost

beginning at $30,000 - after a federal electric vehicle tax credit of $7,500*

https://en.wikipedia.org/wiki/Chevrolet_Bolt

SLIDE 9

ELECTRIC VEHICLES TO GRID STORAGE

L i t h i u m C o n s u m p t i o n E s t i m a t e d a t 4 1 0 , 0 0 0 t p a * b y 2 0 2 5

Historical Price Declines in Consumer and Automotive Lithium-ion Batteries

Cell phone: Laptop: Hybrid: EV Grid 3g 30g 7kg 25-50kg 500 kg/ MWh

(Lithium carbonate consumption by application**)

*SignumBox, **0.6 kg LCE/Kw/h

SLIDE 10

LITHIUM SUPPLY & PRICING

R e c e n t 2 0 1 5 p r i c i n g f r o m C h i n a s h o w s a r a n g e o f $ 5 - 6 , 5 0 0 p e r t o n n e *

L i t h i u m C a r b o n a t e P r i c e s – U S $ / m e t r i c t o n n e *

(* SignumBOX 2015) (** SignumBOX estimates, March 2013)

G r o w t h A c r o s s a l l A p p l i c a t i o n s t o 2 0 2 5 * *

Batteries - 38% Ceramics - 12% Glass - 9% Lubricating greases - 13% Air Conditioning - 4% Continuous Casting Powders - 4% Medical - 3% Aluminium Smelting - 3% Polymers - 3% Others/ metals - 11% SQM - 41% Albermale - 20% FMC - 8% Australia/ China - 29% Others - 2%

L i t h i u m C a r b o n a t e P r o d u c t i o n C a p a c i t y 2 0 1 5 * L i t h i u m D e m a n d b y A p p l i c a t i o n *

SLIDE 11

SONORA LITHIUM PROJECT: OVERVIEW

L a r g e r e s o u r c e l e n d s i t s e l f t o c o n v e n t i o n a l o p e n p i t m i n i n g w i t h p l a n n e d l o w s t r i p r a t i o

See press release dated 23.11.15: Indicated Mineral Resource Estimate increased to 5.0 million tonnes of LCE at the Sonora Lithium Project 1.LCE is the industry standard terminology for, and is equivalent to, Li2CO3. 1 ppm Li metal is equivalent to 5.32 ppm LCE / Li2CO3. Use of LCE is to provide data comparable with industry reports and assumes complete conversion of lithium in clays with no recovery or process losses.

104,064

Ha licence area, located 190km NE

Hermosillo in northern Mexico, consisting

10 contiguous concessions

Scalable production strategy to produce up to 35,000

tpa of lithium carbonate

FS will commence Q1 2016
Due for completion in Q1 2017
2 years of pilot plant operations to produce high grade lithium

carbonate undertaken

Working with a number of potential off-take customers

for lithium sales into the fast growing Asian market

Further resource and infill reserve drilling planned for Q2

2016

Access to excellent infrastructure – power, water, road,

rail, port

SLIDE 12

SONORA LEASES – EXPLORATION UPSIDE

SLIDE 13

SIGNIFICANT RESOURCES & RESERVES

O n e o f t h e w o r l d ’ s l a r g e s t l i t h i u m r e s o u r c e s – h i g h g r a d e a n d s c a l a b l e

Category Mt Ore (000t) Li (ppm)

K (%)

LCE (000t) LCE attributable to BCN (000t) Probable 129 3,015

1.28

2,083 1,813

R e s o u r c e s * R e s e r v e *

Category Cut–off (ppm) MT Li (ppm) K (%) LCE (000t) LCE attributable to Bacanora (000t) Indicated 1000 259 3,200 1.4 4,463 3,607 Inferred 1000 160 3,200 1.3 2.740 2,369

Notes: (i) Mineral Resources that are not Mineral Reserves and do not have demonstrated economic viability. (ii) Tonnes rounded to the nearest thousand. (iii) The conversion factor from % Li to LCE is 5.323.

*BCN PFS press release dated 3 March 2016

SLIDE 14

MINE PLAN AND OPERATIONS

Mining design indicates a total of

50 Mt of ore to be mined over 20 years

Ore recovery rate of 90% O p e n – p i t o p e r a t i o n u s i n g c o n v e n t i o n a l t r u c k / s h o v e l m i n i n g m e t h o d s Initial fleet: 1 x 12 cubic metre backhoe excavator and 3 x 90- tonne haul trucks

16 haul trucks at full

production in year 6 20 year stripping ration of 3.1:1 & Life-of-Mine stripping ratio of

~5.4:1

SGS Lakefield (Canada) conducted lithium carbonate

metallurgical testwork

Ausenco

Engineering undertook the flow sheet review, process engineering design, infrastructure

ptimisation and PFS documentation
IMC Mining Consultants prepared the Mineral Reserve

estimate and mine plan

SRK Consultants (UK) Limited prepared the Mineral

Resources estimate

Life-of-mine Reserves of 129 Mt

SLIDE 15

PILOT PLANT: HERMOSILLO

An integrated lithium carbonate facility

with pre-concentration, roasting and leaching circuits

Battery grade (99.5%) lithium carbonate

lab production achieved

Pilot plant laboratory with equipment

and facilities to process and test assays from samples sourced from the lithium concessions

Enables development and refinement to

flowsheet to optimise product quality

Pilot

plant to run continuously to produce large scale off-take samples

A c o s t e f f e c t i v e w a y o f c o n d u c t i n g a n a l y s i s & i n c r e a s i n g B C N s t a f f ’ s t e c h n i c a l e x p e r t i s e

SLIDE 16

COSTS

Category PFS Estimate Stage 1 (US$000) PFS Estimate Stage 2 (US$000) Li2CO3 production (tpa) 17,500 35,000 K2SO4 production (tpa) 18,500 50,000 Mining equipment 19,000 9,600 Mining Infrastructure

3,700

Benification plant 20,500 18,100 Lithium processing plant 90,500 81,400 On site infrastructure 19,600 9,600 Off site infrastructure 16,800 5,900 EPCM/Owner cost/Indirect 45,600 30,500 Contingency 28,000 22,500 Total $240,000 $177,000

Construction Capital Costs

(rounded to nearest US$’000)

Life of Mine Project Operating Costs

Category Stage 1 US$/t (Li2CO3) Stage 2 US$/t (Li2CO3) LOM US$/t (Li2CO3) Mining 642 538 543 Processing 2,037 1,930 1,934 G&A 446 212 221 Total 3,125 2,680 2,698 Discount Rate Base Case Pre Tax NPV (US$ million) Base Case Post Tax NPV (US$ million) 0% 2,145 1,544 2% 1,647 1,182 4% 1,275 910 6% 993 702 8% 776 542

Sensitivity Analysis

T h e p r o j e c t i s c u r r e n t l y e s t i m a t e d t o h a v e a s h o r t p a y b a c k o f f i v e y e a r s

SLIDE 17

Open pit mining Tromel and screen Gypsum roast (1,000 degrees and 30 mins) Leach and precipitation Na2CO3 addition SX and IX purification

Li2CO3 product

PROCESSING

E s t i m a t e d O p e r a t i n g C o s t s Source $/t Li2CO3 Brines 2,000-3,000 Clays* 2,500-3,300 Hard rock 3,000-5,000

*Western Lithium PES 2013, BCN PFS 2016

SLIDE 18

PRE-PRODUCTION MILESTONES

Q1 2016 Q3 2016 Q3 2016 Q1 2017 18 Q1 2017 Q2 2016 Q4 2016 18 month construction period

SLIDE 19

INVESTMENT CASE

Large scale lithium asset with proven & highly attractive production economics Initial capex of $240m and low operating costs

f ~$2,700/t Li2CO3

Strong cash position – funded through to FS completion

Proven management

High grade and scalable

Off-take focus for 2016

SLIDE 20

APPENDIX

SLIDE 21

KEY DATA

Market AIM/ TSX-V Ticker BCN NOMAD Cairn Financial Advisers Market Cap (05.04.16) £66.9m (C$124.8m) Broker Stifel

Significant Shareholders

Rare Earth Minerals Plc (17.2%) Igneous Capital Ltd (15.5%) Colin Orr-Ewing (11.3%) M&G Investment Funds (8.6%) D&A Income Ltd (5.4%) Saorse Ltd (3.6%) Other (38.4%)

SLIDE 22

BOARD

H i g h l y e x p e r i e n c e d B o a r d w i t h p r o v e n t r a c k r e c o r d s i n t h e n a t u r a l r e s o u r c e a r e n a

Colin Orr-Ewing Chairman & Director

Began career as an

investment manager for the Shell Pension Fund

35 years’

experience spanning both oil and mining industries

Consults to a fund

management company on its natural resources portfolios

Shane Shircliff Director

15 years’

experience in mining and resources industry in various senior executive roles

Worked on range of

projects inc. uranium, gold, silver, coal, industrial minerals, diamonds, oil, gas and coal

James Leahy Non-Executive Director

Began career at the

LME

29 years in mining

industry as a specialist corporate broker, inc. mining finance, origination and equity sales

Worked on wide

range of projects, worldwide

Substantial

experience with international institutional fund managers, hedge finds and sector specialists

Kiran Morzaria Non-Executive Director

Bachelor of

Engineering (Industrial Geology) from Camborne School of Mines and an MBA (Finance) CASS Business School

15 years’

experience in the mineral resource industry

Mark Hohnen Pending Non- Executive Director

Extensive

international business experience in wide range of industries

inc. mining and

exploration, property, investment, software and agriculture

Founding Chairman of

Cape Mentelle and Cloudy Bay wines

Director of Kalahari

Minerals and Extract Resources

SLIDE 23

MANAGEMENT

Peter Secker CEO

Mining engineer with over 30 years’ experience in the resources industry. During his career he has built and operated a number of mines and metallurgical processing facilities in Africa, Australia, China and Canada. His operating and project experience spans a number of commodities, including titanium, copper, iron ore, gold and lithium. For the past 10 years Peter has been Chief Executive of a number of publicly listed companies, most recently as CEO of Canada Lithium Corporation whilst developing the Quebec Lithium project.

Martin Fernando Vidal Torres President & Director

Mr. Vidal has been with Bacanora since inception when he joined the firm as Vice President, Exploration – Mexico. Besides his role as President and Director
f Bacanora, he currently serves as Director and sole administrator of MITSA and MSB, two fully-owned Mexican subsidiaries of Bacanora and the operating

vehicles for the development of the Company's projects owned in Mexico. He also serves as Director and sole administrator of Mexilit and Megalit, two Mexican subsidiaries that are owned by Bacanora (70%) and Rare Earth Minerals Ltd (30%). Mr. Vidal started his career as geologist with the US Borax exploration team and has many years of experience working in Northern Mexico, particularly in the project areas that Bacanora are now developing.

Eric Carter Project Manager

Over 22 years’ lithium carbonate production expertise with FMC in North America, with extensive experience of lithium hydroxide and lithium metal process

perations.

David Serratos Pilot Plant Manager

Joined Bacanora in 2012. Currently he serves as Plant Manager on the Bacanora pilot plant, being responsible of design and manufacturing of plant equipment, process development, working systems and general control of the plant. Prior to that, he served as General Manager in the automotive industry, being responsible designing and assembling automotive components. His expertise also includes the design and manufacturing of thermal-solar systems including its automation and later involved in process development and project and construction management. David graduated from the University of Sonora (1991) and holds a BSc in Industrial Engineering.

Derek Batorowski CFO & Director

Over 22 years’ experience in the mineral exploration industry at both the national and international level. Derek’s specific focus has been in accounting, finance, corporate planning, treasury and taxation sectors with both public and private companies.

Lizeth Soriano Laboratory Manager

Joined Bacanora in 2012 as laboratory analyst and served as Laboratory Manager since 2013, being responsible for the experimental metallurgical area at laboratory and pilot plant scales on the different projects that the Company is developing. Prior to joining us, Lizeth served as professor in the Universidad del Valle de México and participated in various research programs focused in the production of clay-based photo-catalyzers for water treatment plants. She is a graduate of the University of Sonora where she holds a BSc in Process Engineering and a Master Science degree in Chemical Engineering.

Daniel Calles Senior Geologist

With Bacanora since 2011 and currently serves as Principal Geologist, being responsible for all of the fieldwork conducted by the Company in its different projects as well as responsible for supervision, logging, sampling and reporting on the continuous drilling campaigns that the Company is conducting. Prior to joining Bacanora, Daniel had nine years of experience working in different companies as exploration geologist in base and precious metals, mostly in northwestern Mexico. Daniel has a BSc. in Geology from the University of Sonora (2006).

Battuya Gankhuyag Corporate Manager

Battuya joined Opus Executive Partners in 2014 as an associate for the executive search team, specialising in the energy, mining and natural resources

industries. She previously held an internal accountant role in a Canadian manufacturing company in 2010. Battuya also acted as a trade ambassador in

Central Asia, acting on a consulting basis on the proposed transaction of local licences and assets. She is a member of the events committee of women in mining (“WIM”) association and has a Masters Degree in International Business.

L e d b y a C E O w h o n e g o t i a t e d t h e 1 s t l a r g e s c a l e , l o n g - t e r m l i t h i u m o f f - t a k e w i t h a C h i n e s e S O E

SLIDE 24

MEXICO

S u p p o r t i v e o p e r a t i o n a l e n v i r o n m e n t w i t h p o s i t i v e f i s c a l t e r m s a p p l i e d b y a s t a b l e g o v e r n m e n t

E c o n o m y :

Second largest GDP in Latin America at US$1.0 trillion
Free market economy and part of NAFTA
US$23 billion mining foreign investment over last 10

years

Fourth biggest exporter of cars globally

M i n i n g :

World’s largest silver producer, 8th largest gold producer,

10th largest copper producer

Generates >330,000 direct mining jobs
International investment ranking at #33 (out of 122 countries)

by Fraser Institute*

Over 15% of Mexico’s land mass registered under mining

concessions

Approximately US$18 billion investment in mining industry

between 1999 and 2013

B u s i n e s s E n v i r o n m e n t :

Mexico has one of the best business environments in Latin

America*

Ranked 38th of the 189 economies evaluated in the report in

terms of the ease of doing business

Mexico’s Northern states (including Sonora) tend to enjoy

close cultural links with the US and living standards are among the highest in the country

NAFTA governs US and Canadian investment in Mexico
11 free-trade agreements (FTAs) with over 40 countries,

including the EU, while formal bilateral investment protection agreements with more than 20 countries are in operation

According to Control Risk report 2015 Hermosillo, Sonora

State is not included in the High Risk zone

*Source: the World Bank's Doing Business 2015 Report

SLIDE 25

CONTACT

Bacanora Minerals Ltd

Peter Secker E: info@bacanoraminerals.com www.bacanoraminerals.com St Brides Partners Ltd Financial PR Elisabeth Cowell/ Frank Buhagiar T: +44 (0) 20 7236 1177 www.stbridespartners.co.uk

SLIDE 26

Developing the World’ s Next Major L ithium Production Project

P F S R e s u l t s : I n v e s t o r P r e s e n t a t i o n Q 2 2 0 1 6