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

TSX-V: SFX

Successfully Generating

ROBUST ZINC PROJECTS

Corporate Presentation

September 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. 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 of 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 partners: 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 100 M Fully diluted 146 M Management, Board 14% Quebec institutions 16% Top 100 shareholders 95% of shares Key suppliers and Pontiac area shareholders 16%

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

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

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 and Director 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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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 2017 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 15 Transactions Including

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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

Sirios Resources

(Sold to QPM June 2018) Cheechoo-Éléonore Trend: Gold

Goldcorp and Quebec Precious Metals Corporation (QPM)

(closed June 2018) Cheechoo-Éléonore Trend, Chemin Troïlus and Somanike: Gold

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 $1,100,000 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

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 (53 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 Strong 1,800 m long lead-zinc anomaly adjacent to New Calumet Mines First 13-hole drill program

3 m at 4% zinc in an extensive mineralized zone (over 1 km2)

Second 11-hole drill program

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 Stratiform, shallow-dipping and near- surface horizon over a surface area 113 m by 60 m

Channel sample composites

20.3 m at 2.4% Zn 6.0 m at 3.2% Zn 4.0 m at 3.3% Zn

Drill mineralized horizon to establish continuity and resource potential - Q3 2018 to Q1 2019

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SPHALERITE Bands

Sphalerite bands

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NEW CALUMET MINES AREA

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New Calumet Mines Area – Pontiac MRC, Québec, Canada

CALUMET-SUD PROJECT Sonny Zone

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Calumet-Sud Project (Sphinx – SOQUEM JV)

CALUMET-SUD PROJECT Sonny Zone

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Calumet-Sud Project – Sonny Zone (Sphinx – SOQUEM JV)

TESSOUAT Zinc Project

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100%-owned by Sphinx, 2% NSR to Gardin Follow-up program: trenching and drilling Q3-Q4 2018 Strong 400 m by 400 m lead-zinc anomaly up to 5,650 ppm zinc over favourable host rock

VALUE DRIVERS

2018-2019

Drill and establish resources potential

Calumet-Sud

Define targets and drill

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

Plan program

Grenville Zinc Project with Osisko Metals

Receive value from gold projects

Closed transaction with Quebec Precious Metals Corporation

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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