Seizing Opportunity and Building Value Hanson Lake District December 2017 www.foranmining.com
Opportunity is meaningless unless one takes action. TSX-V FOM 2
The Parties Committed to value creation Largest zinc miner • 100% of McIlvenna Bay • Trades 42% of Zn market • Upside • 60 day technical review • Commitment Prospective – Target A Bigstone, Thunder Zone 9 months to complete FS Over 40,000 ha, limited historical • Zn and Cu purchased at drilling market rates • Leveraged to Zn and Cu • Potential cost benefits McIlvenna Bay Facilitate financing Procurement savings • Largest undeveloped deposit • Historic mining region • FOM added value • PEA – 2015 NPV C$263M after tax $1.06Zn & $3.08Cu $Fx 0.89 – Current spot: $1.46Zn, $3.08Cu, $FX0.79 TSX-V FOM 3
The Opportunity McIlvenna Bay Location PEA Largest undeveloped VMS in Completed in 2015 Flin Flon region Commitment Investment Advance project to Minimizing shareholder production with a partner dilution TSX-V FOM 4
Enter TSX-V FOM 5
The Deal Technical Services Agreement - Glencore Expertise Commodities Development, mining and Expert in metal markets operations Endorsement Support McIlvenna Bay could be a Engineering and technical mine TSX-V FOM 6
The Deal Technical Services Agreement - Foran Project Offtake Team experience in Agreement on McIlvenna Bay advancing asset Retain 100% Optionality Prospective Bigstone, Thunder Zone Target A + others TSX-V FOM 7
Terms of the Technical Services Agreement Desktop study Action plan to complete Feasibility Study • 60 day review of project • Time frame • Evaluate options 9 months to complete after Toll treatment drill program Second hand plant processing • Technical assistance New build plant Through to development and Design in-fill drilling program construction • FOM executes drill program TSX-V FOM 8
Terms of the Technical Services Agreement FOM obligations Additional commitment • Fund and conduct drill • Fund up to $1.5M required program engineering services Use Foran team • Environmental baseline Apply for permits • Socio-economic studies Community engagement TSX-V FOM 9
World Class Mining Belt N FLIN FLON DISTRICT Deschambault Lake Snow Lake HANSON LAKE LALOR DISTRICT Flin Flon SNOW LAKE 777 DISTRICT Denare MCILVENNA BAY Beach/ Amisk TARGET A Lake THUNDER ZONE REED LAKE BIGSTONE 200 km Foran is not treating historic (non NI 43-101 compliant) resource estimates as current; TSX-V FOM 10 Additional work is required bring historic resource to current
Hanson Lake VMS District N MCILVENNA BAY TARGET A THUNDER ZONE BIGSTONE UTM Zone 13 NAD83 NTS 63L/10 TSX-V FOM 11
Hanson Lake VMS District Cluster of VMS deposits • Poly-metallic Zinc, Copper, Gold, Silver Prolific mining belt • Neighbouring Hudbay/Flin Flon/Lalor • Long history of mining 30,000+ drill holes Current management • Acquired project in 2011 Underexplored (~800 drill holes) • Advanced project Upgraded deposits, new discovery Relationship with First Nations • Peter Ballantyne Cree Nation McIlvenna Bay Camp TSX-V FOM 12
Access Road & Power Line Hanson Lake Foran Camp Silica Sand Mine McIlvenna Bay Deposit (projection to surface-approximate) Access Road & Power Line 0 500 m TSX-V FOM McIlvenna Bay deposit (projected), exploration camp and Silica Sand Mine (under reclamation); looking Northwest – April 2012 13
McIlvenna Bay Mineral Resources 1 2013 Indicated Mineral Resource Estimate (US$60t/ NSR cut-off) Tonnes Cu Zn Au Ag CuEq ZnEq Zone (kt) (%) (%) (g/t) (g/t) (%) (%) Main Lens – Upper West Zone 2,148 1.66 4.10 0.88 31 2.79 18.75 Main Lens – Zone 2 3,386 0.31 7.15 0.24 24 1.51 10.19 Lens 3 756 1.23 2.55 0.30 15 1.79 12.03 Copper Stockwork Zone 7,610 1.60 0.30 0.50 11 1.90 13.10 TOTAL INDICATED 13,900 1.96 13.19 2013 Inferred Mineral Resource Estimate (US$60t/ NSR cut-off) Tonnes Cu Zn Au Ag CuEq ZnEq Zone (kt) (%) (%) (g/t) (g/t) (%) (%) Main Lens – Upper West Zone 2,913 1.63 3.68 0.51 19 2.47 16.62 Main Lens – Zone 2 2,796 0.51 7.13 0.38 26 1.79 12.04 Lens 3 124 1.61 2.67 0.51 18 2.31 15.52 Copper Stockwork Zone 5,478 1.56 0.47 0.42 12 1.87 12.59 TOTAL INFERRED 11,311 2.01 13.52 1 Effective date Jan. 1, 2013; Metal prices for 2013 Resource are US$3.25/lb. Cu, US$1.10/lb. Zn, US$1,400/oz. Au & US$25/oz. Ag; The base case uses a TSX-V FOM US$60/t NSR cut-off using provisions for metallurgical recoveries, smelter payables, refining costs, freight, and applicable royalties; see appendices for full 14 footnotes; for additional information see the Foran news release dated March 27, 2013 at www.sedar.com
McIlvenna Bay Deposit PEA 1 5000 tpd, ramp and shaft access, on-site concentrator and tailings facilities; batch processing multiple ore zones Metal Production Summary Mine Life 13.7 years Metal Per annum LOM Plant Throughput 4,761 tpd lbs. tonnes lbs. tonnes Zinc 58.9M 26,717 804.7M 365,101 Pre-Tax NPV 7% $381.7M Copper Pre-Tax IRR 21.9% 37.6M 17,055 513.7M 233,013 Lead 1.2M 544 15.8M 7,167 Post-Tax NPV 7% $262.6M oz. oz. Post-Tax IRR 18.9% Gold 16,000 218,000 Payback 4.1 years Silver 398,000 5,437,000 1 The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized. 2 Includes 20% contingency. 3 Comprised of $33.54/t mining, $13.39/t processing & $4.10/t G&A. 4 Net of by-product, includes all TC/RC, operating costs & royalties. All figures are quoted in CDN$ unless otherwise noted; base case metal prices of US$3.08/lb. Cu, US$1.06/lb., Zn, US$0.93/lb. Pb, US$1,238/oz. Au and US$17/oz. Ag and exchange rate of 0.89 based on spot as at Oct. 15, 2014. See the Foran news releases dated November TSX-V FOM 15 12, 2014 and January 21, 2015 at www.sedar.com
McIlvenna Bay Deposit PEA 1 5000 tpd, ramp and shaft access, on-site concentrator and tailings facilities; batch processing multiple ore zones Operating Costs Capital Costs Contingency Avg. OpEx Per tonne milled LOM Base Total (20%) Pre-Prod. Mining $33.54 $796.2M $207.3M $41.5M $248.8M CapEx Sustaining Processing $13.39 $317.7M $125.2M $25.0M $150.3M Capital LOM $332.5M $66.5M $399.1M G&A $4.10 $97.4M Total $51.03 $1,211.3M 1 The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized. 2 Includes 20% contingency. 3 Comprised of $33.54/t mining, $13.39/t processing & $4.10/t G&A. 4 Net of by-product, includes all TC/RC, operating costs & royalties. All figures are quoted in CDN$ unless otherwise noted; base case metal prices of US$3.08/lb. Cu, US$1.06/lb., Zn, US$0.93/lb. Pb, US$1,238/oz. Au and US$17/oz. Ag and exchange rate of 0.89 based on spot as at Oct. 15, 2014. See the Foran news releases dated November TSX-V FOM 16 12, 2014 and January 21, 2015 at www.sedar.com
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