ROBUST ZINC PROJECTS Corporate Presentation December 2018 - - PowerPoint PPT Presentation

TSX-V: SFX

Successfully Generating

ROBUST ZINC PROJECTS

Corporate Presentation

December 2018

FORWARD-LOOKING STATEMENTS

This corporate presentation may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results and activities to vary materially from targeted results and planning. Such risks and uncertainties include those described in Sphinx’s periodic reports including the annual report or in the filings made by Sphinx from time to time with securities regulatory authorities. All forward-looking statements in this corporate presentation are made as of the date of this presentation. Sphinx does not undertake to update any such forward- looking statements whether as a result of new information, future events or

• therwise, except as required by law.

The technical information contained in this presentation has been reviewed and approved by Normand Champigny, ing., B.A.Sc., M.A.Sc., President and CEO of Sphinx, qualified person for the purposes

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National Instrument 43-101, Standards of Disclosure for Mineral Projects.

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SUMMARY

TSX-V listed (ticker SFX) exploration company Deals made with strong companies: Goldcorp, Osisko Metals, SOQUEM

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Focused on Quebec and zinc Team of three mine finders in Eastern Canada Project generator business model key to maximizing long term shareholder value

OWNERSHIP

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Shares outstanding 103 M Fully diluted 151 M Management, Board 13% Quebec institutions 18% Top 100 shareholders 99% of shares Key suppliers and Pontiac area shareholders 19%

TEAM: Management and Directors

Normand Champigny, M.A.Sc., Eng.

President, Chief Executive Officer and Director 37 years of experience in exploration and management in Canada and internationally

John W. W. Hick, B.A., LL.B.

Chairman of the Board More than 30 years of experience in the mining industry in management positions and as independent director

Jeremie Ryan

VP Corporate Development Resident of the Pontiac 35 years of experience in the natural resources sector Owned and operated local businesses Involved with several non-profit and community organizations

Michel Gauthier, Ph.D.

Director

44 years of experience Professor of mineral prospecting at l’Université du Québec in Montréal Co-baptized a gold prospect, named Éléonore, in the Eeyou Istchee James Bay territory

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TEAM: Management and Directors (continued)

François Biron, Eng.

Director More than 40 years of experience in project evaluations and operations management Considerable experience with environmental issues and social acceptability of mining projects

Ingrid Martin, CPA, CA

Chief Financial Officer Over 25 years of experience in accounting and finance of public companies and since 2004 involved with several mineral exploration companies

Sylvain Laberge

Advisory Committee More than 25 years of experience in the mining industry and corporate communications

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Kerry E. Sparkes, M.Sc.

Director More than 25 years of experience in the mining industry, exploration geologist and executive Key person involved in the exploration, delineation and development of both the Voisey’s Bay nickel and the Rainy River gold deposits Currently V.P. Geology for Franco-Nevada Corporation

STRATEGY and Focus

Maximize deal flow with strategic partners Generate quality projects with:

Zinc (± other base and precious metals) Good social acceptability Low cost exploration through a focus on drilling and leveraging strategic partnerships

Maintain a diverse portfolio with projects:

In different high grade metamorphic terranes of different levels of advancement

Concentrate on Quebec

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SUCCESSFUL Project Generator

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Social acceptability Ground access

Project generation Deal flow with strategic partners

Precious and base metals potential

HIGH GRADE METAMORPHIC TERRANES

LONG-TERM SHAREHOLDER VALUE

Source: Macquarie, April 27, 2018

WHY ZINC? Supply and Inventory Declining

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Zinc Price vs. Inventory

(2010 – current)

Global infrastructure projects and urbanization continue to drive need for zinc Global demand growth expected of 2.4%* Tightening environmental regulations in China forcing closures, 6% decrease in Chinese production in 2017, and 40% increase in zinc imports

ZINC DEMAND DRIVERS Infrastructure and New Applications

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Source: Osisko Metals, May, 2018

New applications driving zinc consumption: agriculture (nutrient/fertilizer), electrically- charged zinc-air batteries, renewable power storage and fuel cells (batteries market could represent a 3% - 6% annual impact on future demand - Stormcrow Capital, February 2018)

* Source: National Bank Analyst, Shane Nagle, 2018

WHY QUEBEC?

Quebec: 6th rank on worldwide investment attractiveness index Fraser Institute - Survey of mining companies 2018 Significant tax advantages (tax credit and low after-tax cost for flow-through-share) Sphinx’s team has considerable experience in Quebec

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2013 to 2018 Deals include:

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Osisko Metals

(50% joint venture) Grenville Project: Zinc

SOQUEM

(50% joint venture) Quebec’s exploration agency, 50 years, 350 projects, 8 mines Calumet-Sud: Zinc

Gardin - Michel Gauthier

(100% Sphinx) Calumet-Sud and Tessouat: Zinc and GPd: Palladium

OSISKO METALS Joint Venture

Grenville Zinc Project: 50-50% JV with to explore for zinc in highly prospective areas of the Grenville geological province in southern Quebec Minimum of $1,250,000 by each party over the next five years including $100,000 during the first year Joint management committee to design and oversee the exploration program Sphinx acts as operator If a party's interest dilutes to 10% or less, its interest shall be converted to a 2% net smelter return royalty

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ZIAC (‘ZINC-PONTIAC’) DISTRICT

40-km long northwest trending corridor defined by zinc-bearing rocks

(excluded from joint venture with Osisko)

Similar to Balmat-Edwards- Pierrepont zinc district, New York state Projects within the Ziac (301 km2)

Calumet-Sud (12 km2) 50% Sphinx 50% SOQUEM Tessouat (13 km2) 100% Sphinx GPd (41 km2) 100% Sphinx Tessouat-Sud (177 km2) 100% Sphinx Obwondiag (57 km2) 100% Sphinx

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PROJECTS

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CALUMET-SUD Zinc Project

50-50% joint venture with SOQUEM, 2% NSR to Gardin Stratiform, shallow-dipping and near-surface horizon over 1,500 m strike length, adjacent to New Calumet Mines Channel sample composites 22.1% Zn over 1.0 m incl. 6.6% Zn over 5.0 m 8.1% Zn over 1.5 m 6.7% Zn over 1.0 m 3.3% Zn over 4.0 m 3.2% Zn over 6.0 m 24 holes drilled to date 13.1% zinc over 1.0 m within 3.8% zinc over 5.0 m 9.0% zinc over 1.0 m within 3.1% zinc over 6.4 m 6.6% zinc over 1.4 m within 3.0% zinc over 6.8 m Drill mineralized horizon to establish continuity and resource potential – Q4 2018 and 2019

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SPHALERITE Bands

Sphalerite bands

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NEW CALUMET MINES AREA Pontiac MRC, Québec, Canada

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CALUMET-SUD PROJECT

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CALUMET-SUD PROJECT

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VALUE DRIVERS

2019

Drill and establish resources potential

Calumet-Sud

Define targets and drill

Tessouat (trench and drill) Obwondiag and Tessouat-Sud (soil sampling)

Execute regional program

Grenville Zinc Project with Osisko Metals

Five-Year Plan

Advance projects with strong partners that are socially acceptable with year-round access Make one or more mine discoveries Create significant shareholder value

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SPHINX RESOURCES LTD. 1000 De La Gauchetière, Suite 2100, Montreal, QC H3B 4W5 T: 1 514 979-4746 sphinxresources.ca