THE ROVINA VALLEY PROJECT, ROMANIA Romanias Next Gold and Copper - - PowerPoint PPT Presentation

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THE ROVINA VALLEY PROJECT, ROMANIA Romanias Next Gold and Copper mine TSX: ESM | Corporate Presentation | August 10 2020 Cautionary Notes CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS information contained herein or incorporated by


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THE ROVINA VALLEY PROJECT, ROMANIA

Romania’s Next Gold and Copper mine TSX: ESM | Corporate Presentation | August 10 2020

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TSX: ESM | GR: OL11 | US: CPNFF

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CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS Statements and certain information contained in this presentation and any documents incorporated by reference may constitute “forward-looking statements” within the meaning of applicable Canadian securities legislation which may include, but is not limited to, information with respect to the Corporation’s expected production from, and further potential of, the Corporation’s properties; the Corporation’s ability to raise additional funds; the future price of minerals, particularly gold and copper; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining

  • perations; and environmental risks.

Often, but not always, forward-looking statements/information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements/information is based on management’s expectations and reasonable assumptions at the time such statements are made. Estimates regarding the anticipated timing, amount and cost of exploration and development activities are based on assumptions underlying mineral reserve and mineral resource estimates and the realization of such estimates are set out herein. Capital and operating cost estimates are based on extensive research of the Corporation, purchase orders placed by the Corporation to date, recent estimates of construction and mining costs and other factors that are set out herein. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Euro Sun Mining and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include: uncertainties of mineral resource estimates; the nature of mineral exploration and mining; variations in ore grade and recovery rates; cost of

  • perations; fluctuations in the sale prices of products; volatility of gold and copper

prices; exploration and development risks; liquidity concerns and future financings; risks associated with operations in foreign jurisdictions; potential revocation or change in permit requirements and project approvals; competition; no guarantee of titles to explore and operate; environmental liabilities and regulatory requirements; dependence on key individuals; conflicts of interests; insurance; fluctuation in market value of Euro Sun Mining’s shares; rising production costs; equipment material and skilled technical workers; volatile current global financial conditions; and currency fluctuations; and other risks pertaining to the mining industry. Although Euro Sun Mining has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events

  • r results to differ from those anticipated, estimated or intended. Forward-looking

information contained herein or incorporated by reference are made as of the date

  • f this presentation or as of the date of the documents incorporated by reference,

as the case may be, and Euro Sun Mining does not undertake to update any such forward-looking information, except in accordance with applicable securities laws. 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 anticipated in such information. Accordingly, readers are cautioned not to place undue reliance on forward-looking information. The forward-looking information contained or incorporated by reference in this document is presented for the purpose of assisting shareholders in understanding the financial position, strategic priorities and objectives of the Corporation for the periods referenced and such information may not be appropriate for other purposes. *Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.

  • CAUTIONARY NOTE REGARDING UNITED STATES SECURITIES LAWS

This presentation does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities of the Euro Sun Mining Inc., in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities of Euro Sun Mining Inc. have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"),

  • r any state securities laws and may not be offered or sold within the United States
  • r to, or for the account or benefit of, "U.S. persons," as such term is defined in

Regulation S under the U.S. Securities Act, unless an exemption from such registration is available. The information contained herein concerning the properties and operations of Euro Sun Mining Inc. has been prepared in accordance with Canadian standards under applicable Canadian Securities Laws in accordance with NI 43-101 under guidelines set out in the Definition Standards for Mineral Resources and Mineral Reserves adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM Standards”), which differ in material respects from the requirements of U.S. Securities Laws applicable to U.S. companies subject to the reporting and disclosure requirements of the SEC and may not be comparable to similar information disclosed by such U.S. companies.

Cautionary Notes

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TSX: ESM | GR: OL11 | US: CPNFF

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Euro Sun Mining – Company Overview

▪ Developing a large-scale bulk tonnage open pit mine ▪ Long life production profile ▪ Significant leverage to Gold and Copper prices ▪ 7 million ounces of Gold ( Measured & Indicated) ▪ 1.4 Billion lbs of Copper (Measured & Indicated) ▪ Mining License issued and ratified by Romanian State in

  • Nov. 2018; valid for 20 years and renewable

▪ Past-producing region – excellent infrastructure in place: rail, power, paved access, skilled labour, and town of 13,000 within 5km of the project ▪ Completion of Urbanization Certificate and BFS in 2020

An advanced 10 million ounce* project in the European Union

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TSX: ESM | GR: OL11 | US: CPNFF

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Capital Structure

  • Avg. Daily Volume (30 day)

Shares Outstanding Share Price (13/07/20) Market Cap (CAD) 52-Week High

990,000 $0.62 ~$86 million $0.51 169,121,413

Warrants Outstanding 51,027,869 (strike $0.40-$0.55) Key Institutional Shareholders: Ruffer LLP ( UK) ~9% Franklin Gold Fund ~8% ASA Gold Fund ~7% Baupost ~3% Ixios Gold Fund ~2% APAC Resources HK ~2%

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TSX: ESM | GR: OL11 | US: CPNFF

Romania at a Glance

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  • Area: 238,391 km2
  • Population: ~20M (Bucharest: ~2M)
  • Joined the European Union in 2007
  • Climate: 4 distinct seasons (0-35ºc)
  • Currency: Leu (RON) = US$0.25
  • Tax Rate: 16% (corporate profits)
  • Royalty rate: 5% NSR Cu; 6% NSR Au

Bulgaria Greece Hungary Italy France Spain Poland Germany UK Ireland Sweden Finland Slovakia Slovenia Czech Republic Austria Portugal Belgium Netherlands Denmark Lithuania Latvia Estonia Romania

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Installed Infrastructure Minimizes Environmental Footprint

  • Modern network of roads and rail in place
  • Low-cost environmentally friendly hydro power generation and distribution - all installed
  • Economically challenged region since Barza mine closure in 2006
  • Barza mine produced 13 million ounces over 80 years of production

* See slide10 for details related to the mineral resource estimation

3km

To Mintia Power Plant Barza Mine Town of Brad

ROVINA DEPOSIT COLNIC DEPOSIT CIRESATA DEPOSIT

Proposed Plant Location

Hydroelectric Dam 110 kva Power Lines Railhead, Brad

Cu-Au Porphyry M&I: 1 Moz of Gold 573 M lbs of Copper Au-Cu Porphyry M&I: 2.2 M oz Gold 302 M lbs Copper Au-Cu Porphyry M&I: 3.8 Moz of Gold 518 M lbs of Copper.

3km

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TSX: ESM | GR: OL11 | US: CPNFF

Rovina Valley Project – Exploitation Permit Approved

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Official Gazette

  • no. 0970 of 2018

Act no. 900 of 09 November 2018 Issuer: Government

  • f Romania

Decision regarding the approval of the Concession License

  • no. 18.174 / 2015 of the

mining activity of copper

  • re containing gold in

the Rovina perimeter, Hunedoara County, concluded between the National Agency for Mineral Resources and SAMAX ROMANIA SRL (unofficial translation)

PRESS INFORMATION regarding the draft normative acts adopted

  • r which the

Government took note in the meeting of the Government of Romania from November 9, 2018

  • 32. DECISION on the

approval of the concession license no.18174 / 2015 of the mining activity for the exploitation of the copper

  • re with gold content in

the perimeter of Rovina, Hunedoara county, concluded between the National Agency for Mineral Resources and the Commercial Company SAMAX ROMĂNIA SRL

Rovina Valley Mining Licence

  • Issued in May 2015: to Samax

Romania SRL, 100% owned subsidiary of Euro Sun Mining

  • Transition from exploration to

exploitation stage.

  • License Ratification Completed

Nov 9th, 2018: Licence was signed by Secretary General of Parliament, Minister

  • f Economy, Minister of

Environment, Minister of Waters and Forests, Minister of Finance and Minister of Justice and by the Prime Minister of Romania

  • The licence is valid for 20 years,

and renewable

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TSX: ESM | GR: OL11 | US: CPNFF

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ESG Principles for Success in Romania

Environmental and Social Best Practices ✓ Dry Stack Tailings - Lowered environmental liabilitiesand impacts

  • Lowers long-term environmental liabilities and impacts
  • Safer design - no risk of dam failure as with wet tailings
  • Minimizes water usage and consumption requirements
  • Minimizes disturbance area and visual impact from surrounding area
  • Facilitates concurrent reclamation and revegetation during operation

✓ Zero Cyanide - Anywhere in the Rovina Valley Project ✓ Minimized Footprint - Leverage existing infrastructure ✓ Stakeholder Engagement

Local communities were actively involved in the mining license design stage to address potential visual, noise and dust impacts

✓ No Relocation of Towns ✓ Archeological Discharge Certificate – Confirming no archeological remains

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TSX: ESM | GR: OL11 | US: CPNFF

Upcoming Catalysts in 2020

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Three Major Projects Expected for Completion in 2020

Bankable Feasibility Study

  • Environmental

Impact Assessment

  • Public meetings
  • Targeting

completion by late 2020

Urbanization Certificate for Project Urbanization Certificate for Land

  • Re-zoning for

mine construction from pastoral or state forests to commercial applications

  • Focused on

increased mine life to include both Colnic and Rovina pits in initial plan

Construction Permit

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TSX: ESM | GR: OL11 | US: CPNFF

Cu-Au Porphyry M&I: 1 Moz of Gold 573 M lbs of Copper Au-Cu Porphyry M&I: 2.2 M oz Gold 302 M lbs Copper Au-Cu Porphyry M&I: 3.8 Moz of Gold 518 M lbs of Copper.

3km

CIRESATA DEPOSIT COLNIC DEPOSIT ROVINA DEPOSIT

Staged Development Approach

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PEA Results (Feb 2019): Colnic Only

▪ Only ~29% of total mineral resources ▪ Avg. annual production of 139,000 oz AuEq; 12 year mine life ▪ CAPEX $339.7M, including $264M for a central plant built for all three deposits ▪ AISC of $752/oz

Feasibility Study (2020): Colnic & Rovina

▪ Target mine life +18 years ▪ Initital CAPEX in line with PEA ▪ Substantially increase NPV and IRR ▪ Substantially increase Gold & Copper production

Ciresata

▪ Underground deposit- 3.8 Moz Au, 515 Mlb Cu ▪ Technical study to be completed at a later date

PHASE I PHASE II

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TSX: ESM | GR: OL11 | US: CPNFF

11 After TAX NPV After TAX NPV After TAX NPV

Significant Leverage to Gold and Copper Prices

$1,325 Gold

Colnic NPV

US$228M

$3.10 Copper $1,868 Gold

Colnic NPV

US$684M

$2.92 Copper $1,500 Gold

Colnic NPV

US$423M

$3.50 Copper PEA Metal Prices Spot Metal Prices LT Metal Prices

Spot Gold 35% higher than PEA delivers 280% Higher NPV

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TSX: ESM | GR: OL11 | US: CPNFF

Executive Management Team & Board of Directors

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Executive Management

  • G. Scott Moore, MBA

President & Chief Executive Officer

Paul Bozoki, CA, MBA

Chief Financial Officer

Brad Humphrey

Vice President, Corporate Development

Sam Rasmussen, B.Eng

Chief Operating Officer

Randall Ruff, B.Sc., M.Sc.

VP, Exploration

Board of Directors

Eva Bellissimo, LLB, Independent Director | Co-head of Mining, McCarthy Tetrault Danny Callow, P.Eng.,MBA, Independent Director | Former Glencore Executive

  • G. Scott Moore, MBA, Director, President and CEO

Bruce Humphrey, P.Eng, Independent Director | Former Goldcorp Executive David Danziger, CPA, Independent Director | Senior Partner MNP Peter Vukanovich, CPA, Independent Director | Former CEO Genworth/GE Capital Paul Perrow, BA, Independent Director | Former Executive CI Financial

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TSX: ESM | GR: OL11 | US: CPNFF

Updated M&I Mineral Resources (2019)

13 Tonnage Mt Au g/t Cu % Gold Moz Copper Mlb Au eq* Moz Au Eq* g/t

MEASURED

Rovina 32.1 0.36 0.29 0.37 208.5 0.83 0.53 Colnic 29.2 0.65 0.12 0.61 74.3 0.77 0.82 Ciresata 28.5 0.88 0.16 0.81 102.2 1.03 1.13 Total 89.8 0.62 0.19 1.78 385.1 2.63 0.91

*Au eq. determined by using a long-term gold price of US$1,500 per ounce and a copper price of US$ 3.30/lb. Metallurgical recoveries are not taken into account for Au eq. Base case cut-off grade used in the table are 0.35 g/t Au

  • eq. for the Colnic deposit and 0.25% Cu eq for the Rovina deposit, both of which are amenable to open
  • pit mining and 0.65 g/t Au eq. for the Ciresata deposit which is amenable to underground bulk mining. For the Rovina and

Colnic porphyries, the resources are pit

  • shell constrained using Lerchs-Grossmann algorithm pit optimizer and market metal values of $1,500/oz Au price and $3.30/lb Cu price, with net prices after smelter payables, concentrate

transport, smelter charges, and royalty of US$1,384/oz Au and US$2.61/lb Cu for Colnic and US$1,286/oz Au and US$2.59/ Ib Cu for Rovina. Flotation metallurgical recoveries used are: Colnic 81.5% gold, 88.5% copper and Rovina 73.2% gold, 94.7% copper. Rounding of tonnes as required by reporting guidelines may result in apparent differences between t

  • nnes, grade and contained metal content. These mineral resources are not mineral reserves as they

do not have demonstrated economic viability

INDICATED

Rovina 74.2 0.27 0.22 0.64 364.6 1.44 0.60 Colnic 106.5 0.47 0.10 1.62 227.5 2.12 0.62 Ciresata 125.9 0.74 0.15 3.01 413.4 3.92 0.97 Total 306.6 0.53 0.15 5.26 1005.5 7.47 0.76

TOTAL M&I

Total 396.4 0.55 0.16 7.05 1,390.6 10.11 0.79

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Thank You

Corporate Headquarters

66 Wellington Street West, Suite 5300, TD Bank Tower Box 48, Toronto ON M5K 1E6, Canada.

Investor Inquiries & Media

info@eurosunmining.com

TSX: ESM

www.eurosunmining.com