Tr Transforming the Carmacks Cu-Au Au-Ag Ag Project Yu Yukon, - - PowerPoint PPT Presentation

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Tr Transforming the Carmacks Cu-Au Au-Ag Ag Project Yu Yukon, Canada

Doug Ramsey, Presid ident and CEO

Oct 2019

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Forward Looking Statements

FO FORWARD LO LOOKING ST STATEMENTS

This presentation includes certain forward-looking information or forward-looking statements for the purposes of applicable securities

• laws. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other

factors, which may cause the actual results, performance or achievements to differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include, among others, the timeliness of regulatory approvals, the timing and success of future exploration and development activities, exploration and development risks, market prices, exploitation and exploration results, availability of capital and financing, general economic, market

• r business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment,

unanticipated environmental impacts on operations and other exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that the proposed exploration and development of the mineral projects will proceed as planned, market fundamentals will result in sustained metals and mineral prices, and any additional financing needed will be available on reasonable terms. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation. The current technical report entitled “JDS Energy & Mining. 2017. NI 43-101 Preliminary Economic Assessment Technical Report on the Carmacks Project, Yukon, Canada”, posted on www.sedar.com on 6 February 2017 (“the 2017 PEA”), is preliminary in nature and there is no certainty that the PEA findings will be realized. The economic analysis in the 2017 PEA is based solely on measured and indicated mineral resources and does not include inferred mineral resources. Refer to the 2017 PEA for a discussion of the applicable qualifications and assumptions and the impact on the results of the previous studies on the Carmacks Project. National Instrument 43-101

• Mr. Robert McKnight, P.Eng., Chairman of the Company, is the Qualified Person who has reviewed and approved the content herein,

for compliance with National Instrument 43-101.

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Focused on the Carmacks Project

Fo Focus used ed on n the he Carmacks Projec ect

CARMACKS OXIDE Cu-Au-Ag PROJECT 100% owned Advanced-stage development asset SX/EW cathode copper and gold/silver doré production Positive 2017 PEA Located in mining-friendly Yukon, Canada Based on 7-year mine life Measured & Indicated Resource 11.98 Mt @ 1.07% Cu, 0.456 g/t Au and 4.58 g/t Ag 282 M lbs Contained Cu, 171,800 oz Au, and 1,705,800 oz Ag 2015 and 2017 Exploration Added 4.3 MT Measured and Indicated Resource

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Capital Structure

Co Copper N North – Ca Capit ital S l Structure

Capital Structure (as at 30 June 2019) Issued 85,900,413 Options 5,264,000 Warrants 17,101,066 Fully Diluted 108,265,479

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Do Doug Ramsey, M. M.Sc., R.P. P.Bio. – Pr Pres esident ent, CEO, and nd Di Direc ector

Ø Over 35 years experience in permitting, development, operations, and closure of base and precious metal mines. Previously, VP Sustainability and Environmental Affairs at Copper North (2012 to 2018).

Re Rebecca Mor

• riarty, CPA, CA - Ch

Chief Financial Officer

Ø A Chartered Professional Accountant with over 16 years of experience in the mining industry, and a B.Sc. (Geology) from Queens University. She previously spent 11 years at PricewaterhouseCoopers LLP.

Rob Robert McKnight, P.En

• Eng. MBA - Ch

Chairman

Ø Currently Executive Vice-President of Nevada Copper Corp. He is a geological engineer, with over 30 years of experience in the resource business and a wealth of knowledge in project finance, mergers and acquisitions, feasibility studies and valuations.

Sue Sue Craig, P. P.Geo

• eo. – Di

Director

Ø Over 25 years experience in BC and Yukon on projects ranging from exploration through operations to closure. Currently a Director of Yukon Energy Corporation. Former CEO and Director of Northern Freegold and Past-President

• f Yukon Chamber of Mines.

Bi Bill Ko Kouts tsoura ras, CA, C.F.A - Di Director

Ø Currently the Principal of Kouts Capital, providing consulting advice to natural resource companies. Former Executive Vice President and Chief Financial Officer of Endeavour Financial Corporation, a mining focused merchant bank.

Lo Lorne Anderson, CA – Di Director

Ø An independent Financial Consultant to the minerals industry and has served on the Boards of several public

• companies. He formerly was the Chief Financial Officer and treasurer of Glamis Gold and a director of Tahoe

Resources.

Lo Loy Chunpongtung, P.Eng. – Di Director

Ø A mining engineer with 25 years of experience in mine planning-scheduling, pit optimization, pit design, ore-grade control planning, and advanced geo-statistical modelling. Loy is the Surface Mining Society Peer Review Chair for the CIM Journal and is an Executive Officer of the CIM Surface Mining Society.

Dr

• Dr. Jack Mi

Milton – Seni Senior Geo eology Advisor

Ø Jack has a unique understanding of the Carmacks Copper Belt and particularly our project site, having served as Project Geologist on our Carmacks exploration programs since 2014.

Directors –Management-Advisors

Ou Our Experienced Team Ma Management – Dir Directors - Adv Advisors

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Far from Remote

Ca Carmacks P Proje ject – Fa Far from Rem emote In In the heart of the Carmacks Copper Belt

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Road Access Today

Ca Carmacks P Proje ject Roa Road Access Tod Today

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In In the beginning (2011 for Copper North)

Ø When Copper North acquired the Carmacks property in 2011, the project was planned as a copper-only heap leach with a relatively short 7 year mine life Ø In particular, the heap leaching plan ignored the precious metals in the resource - 0.456 g/t Au and 4.58 g/t Ag – the recovery of which has the potential to improve overall project economics if brought into the project Ø The precious metals would not be recoverable if the resource was first leached for copper recovery Ø By early 2014, it was clear to management that a different metallurgical process needed to be considered in order to bring the precious metals into the project plan. Our work since then has been directed to incorporating precious metal recovery in the process.

,

Before the Transformation

Tr Transfor

• rming the Carmacks Pr

Proj

• ject

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Tr Transfor

• rming the Carmacks Pr

Proj

• ject

Bu Buildi ding g Va Value

Bu Building val alue in th the Carmac armacks Pro roject t by:

Ø Maximizing metal recovery from the mineral resource

§ By including precious metals recovery along with copper recovery § Resulting in a low-cost potential producer (after precious metal credits)

Ø Expanding the mineral resource through exploration

Ad Adding to our:

Ø Quality Deposit

§ High-grade: oxide copper with significant recoverable gold and silver, plus: § Early stage copper-gold-silver sulphide mineral resource

Ø Excellent Location

§ Yukon, Canada: low political risk, stable tax regime (Yukon reduced corporate tax from 15% to 13% in April 2017) § Infrastructure: all weather road access, 11 km from the Yukon Energy grid

Building Value

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Ca Carmacks Co Copper-Go Gold-Si Silver er Projec ect Bu Buildi ding g Va Value

Maximizing Metal Recovery

Ma Maximizing Me Metal Recovery

Ø Oxide deposit grades 1.07% Cu, 0.45 g/t Au, and 4.5 g/t Ag (Zones, 1, 4, 7, and 7A) Ø Historical plan was to heap leach and only recover copper Ø Selected two-stage agitated tank leach process expected to efficiently recover copper by sulphuric acid leach and precious metals by cyanide leach

§ JDS Energy and Mining. 2017. NI 43-101 Preliminary Economic Assessment Technical Report on the Carmacks Project, Yukon, Canada, filed on www.sedar.com on 9 February 2017. The 2017 PEA is preliminary in nature and there is no certainty that the PEA findings will be realized.

Ø Leached copper would be recovered by SX/EW to produce LME grade A copper cathode Ø Leached gold and silver would be recovered by carbon-in-leach Ø Near 100% recovery of acid-soluble copper and cyanide-leachable gold estimated from locked cycle testing

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Ca Carmacks Co Copper-Go Gold-Si Silver er Projec ect Bu Buildi ding g Va Value En Engineering a Pot Potential Low

• w-co

cost st Copper r Pro roduce cer

Ø Precious metals recovery adds to project value compared to copper recovery only (2017 PEA) Ø Result is a potential low-cost Cu producer after precious metals credits (estimated US$1.08/lb lb C1 cash cost; 2017 PEA)

En Engineered for

• r En

Environ

• nmental Sustainability

Ø Barren tailings slurry treated for cyanide destruction Ø Treated tailings filtered and placed in a dry stack tailings management area (Best Available Technology (BAT) for tailings management) Ø Water recovery and re-use in the process plant is maximized; including water recovery through tailings filtration Ø Oxide tailings and waste rock are not acid generating Ø The net result - a project that minimizes water consumption and discharges to the natural environment that can be closed quickly and effectively.

A Low-cost Producer

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Two-Stage Agitated Tank Leaching

Ca Carmacks Cu Cu-Au Au-Ag Ag Project Tw Two-St Stage e Agitated ed Tank nk Lea Leachi hing ng

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Carmacks Site Plan

Ca Carmacks Co Copper-Go Gold-Si Silver er Projec ect Pl Planned Mine Site Layou

• ut

Dry Stack TMA Waste Rock Open Pit Process Plant Camp

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Ca Carmacks P Proje ject E Economic ics

Estimated Project Economics

Cu US$1.75/lb Au US$1,300/oz Ag US$17.50/oz 2017 PEA Sensitivityb Cu US$2.50/lb Au US$1,300/oz Ag US$17.50/oz 2017 PEA Basea Cu US$2.75/lb Au US$1,300/oz Ag US$17.50/oz 2017 PEA Sensitivityd Cu US$3.25/lb Au US$1,300/oz Ag US$17.50/oz 2017 PEA Sensitivityc

Annual Average Production Planned 30M lbs Cu 19.5k oz Au 21.6k oz Ag 30M lbs Cu 19.5k oz Au 21.6k oz Ag 30M lbs Cu 19.5k oz Au 21.6k oz Ag 30M lbs Cu 19.5k oz Au 21.6k oz Ag Mine Life 7 Years 7 Years 7 Years 7 Years CAPEX (includes sustaining capital, closure, and contingency) CAD$263M ($240M pre-prod) CAD$263M ($240M pre-prod) CAD$263M ($240M pre-prod) CAD$263M ($240M pre-prod) Gross Revenue LOM CAD$677M CAD$913M CAD$981M CAD$1,118M Net Operating Revenue LOM CAD$333M CAD$382M CAD$450M CAD$587M C1 Cash Cost Cu Productione US $1.08/lb US $1.08/lb US $1.08/lb US $1.08/lb NPV (Pre/Post Tax 8% discount) CAD$(120)M/$(120)M CAD$11.9M/($11.4M) CAD$56M/$18M CAD$144M/$75M IRR (Pre/Post Tax 8% discount) (8)%/(8)% 9.4%/6.6% 14.2%/10.2% 22.9%/16.9% Payback (Pre/Post Tax 8% discount) 20/20 years 5.2/5.3 years 4.3/4.6 years 3.0/3.4 years Notes to Table: The above estimates are forward-looking and demonstrate sensitivity to specific project assumptions. Source: JDS Energy and Mining. 9 February 2017. NI 43-101 Preliminary Economic Assessment Technical Report on the Carmacks Project, Yukon, Canada. Available at www.coppernorthmining.com and on

www.sedar.com .The PEA is based only on the Measured + Indicated oxide mineral resources in Zones 1, 4, 7, and 7A. The PEA does not include any oxide

resources from Zones 12, 13, and 2000S and does not include sulphide mineral resources. The 2017 PEA is preliminary in nature and there is no certainty that the PEA findings will be realized. a. PEA Base Case, b. Lower range of Cu price sensitivity analysis, c. Upper range of Cu price sensitivity analysis, d. Intermediate Cu price within range

• d. C1 cash cost of copper production net of precious metal credits.

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Adding Gold Recovery has potential economic benefits for the project (2017 PEA):

Ø C1 cash cost of copper production, after precious metal credits, estimated at US$1.08/lb (at US$1,300/oz Au) making the project a legitimate low-cost potential producer Ø C1 cash cost changes by approximately US$0.03/lb for each US$50/oz change in the gold price, over the range of US$1,100/oz to US$1,500/oz examined in the study § at US$1,500/oz Au, the estimated C1 cost is US$0.95/lb Cu § at US$1,100/oz Au, the estimated C1 cost is US$1.20/lb Cu Ø Project NPV also is influenced by the gold price, with each US$100/oz increase adding an estimated CAD$11.3M to project NPV, over the range from US$1,100/oz Au to US$1,500/oz Au

Economically Resilient

Ca Carmacks P Proje ject E Economic ics Sum Summary of the he Gold Benef enefit

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Ca Carmacks Co Copper-Go Gold-Si Silver er Projec ect Bu Buildi ding g Va Value Ex Expanding the Mineral Re Resou

• urce

Ø Copper North resumed exploration of the Carmacks property in 2014, after a 6-year hiatus, and continued in 2015 and 2017 Ø Focused on known oxide copper-gold mineralised targets along a 6 km long north/south trend Ø Our initial objectives are, with a successful drilling program, to: § add 3 to 4 years of oxide resource mine life (target of a 50% increase in M+I tonnes); and, § further delineate the underlying sulphide mineralisation.

Building Value – Exploration

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Western Canada – Project Copper Grades 2018

Ca Carmacks E Explo loratio ion P Potentia ial l Th The Ri Right Ne Neighbourhood fo for Copper

We Western Canada Project Copper Grades - 2018 2018

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Ca Carmacks E Explo loratio ion Bu Buildi ding g Va Value

Exploration Target Zones

Explo loratio ion Focused on Known Min ineralis lised Zones 2017 PEA Basis 2015 + 2017 Drilling 2014 Trench/Drill

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Ex Example Carmacks Drill Cor

• re

Ox Oxide Transition to Sulphide Copper

Carmacks – Oxide and Sulphide Mineral Resource

Oxide Zone Oxide Zone Sulphide Zone Transition Zone with Native Copper

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Near-Surface Mineralisation

Ca Carmacks E Explo loratio ion Ne Near-Sur Surface e Miner neralisation n

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Ca Carmacks P Proje ject Ex Expanding the Mineral Re Resou

• urce

2015 2015 Drilling ng

Ø 3,271 m of infill and step-out diamond drilling in Zones 2000S, 12, and 13:

§ Ox Oxide Measured+Indicated resource tonnes in increased by 31%; § Sul Sulphi hide Measured+Indicated resource tonnes in increased by 85%; § Co Combined oxide and sulphide mineral resource (M+I and Inferred) in increased by 62%; § Updated resource detailed in the 2017 PEA.

2017 2017 Drilling ng

Ø 4,165 m of infill and step-out drilling in Zones 2000S, 12, and 13

§ Updated resource reported in April 9, 2018 News Release; § New Oxide Measured + Indicated Mineral Resource in Zones 2000S, 12, and 13 increased 40%

• ver the 2017 Mineral Resource

Ø Mineral resource added in 2015 and 2017 drill programs remains to be added to the economic analysis

Carmacks – Exploration Results

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2017 2017 Exploration n – Fi

Filling ng in n the he Ga Gaps ps

Exploration – 2017 Drill Targets

No North-So Sout uth h Lo Long ngitud udina nal Sec Section n Sho Showing ng Oblique ue 3-D D View w of Oxide, Sulphide, and Transition Mineralisation

Sulphide open at depth along entire strike length

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Ca Carmacks P Proje ject Ox Oxide Mi Mineral Resource Estimate (2018)

Oxide Mineral Resource - 2018

Zones Class Tonnes Total Cu (%) Acid- soluble Cu (%) Sulphide Cu (%) Au (g/t) Ag (g/t) Mine Life 1, 4, 7, 7A1 ME+IN4 11,980,000 1.07 0.86 0.21 0.456 4.578 First 7 Years (PEA)3 Inferred5 90,000 0.73 0.53 0.20 0.128 1.809 12, 13, 2000S2 ME+IN 4,304,000 0.47 0.34 0.13 0.12 1.92 Potential Mine Life Extension Inferred 389,000 0.34 0.27 0.07 0.12 1.65 Total ME+IN 16,284,000 0.90 0.72 0.18 0.37 3.88 Inferred 479,000 0.42 0.32 0.10 0.12 1.68

Notes:

1. Calculated using a cut-off grade of 0.25% total Cu. 2. Calculated using a cut-off grade of 0.15% acid-soluble Cu. Includes NI 43-101 resource from 2017 PEA plus added resource announced in April 9, 2018 News Release 3. PEA refers to the JDS Energy and Mining Inc. 2017. NI 43-101 Preliminary Economic Assessment Technical Report on the Carmacks Project, Yukon, Canada, filed on www.sedar.com on 9 February 2017. 4. The PEA is based only on the Measured + Indicated oxide mineral resources in Zones 1, 4, 7, and

• 7A. The PEA does not include any oxide resources from Zones 12, 13, and 2000S and does not

include sulphide mineral resources. The 2017 PEA is preliminary in nature and there is no certainty that the PEA findings will be realized. 5. Inferred mineral resources - there is no certainty that definition drilling will convert the Inferred mineral resources into Measured or Indicated categories. 6. The 9 February 2017 PEA supersedes the November 2012 Feasibility Study (M3 Engineering and Technology), the June 2014 PEA (Merit 2014), and the February 2016 NI 43-101 for Carmacks Mineral Resource Report (ACS 2016).

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Sulphide Mineral Resource - 2018

Ca Carmacks P Proje ject Sul Sulphi hide e Miner neral Res esour urce e Estimate e (2018) 2018)

Resource Domain Zone Class Tonnes Total Cu (%) Acid- soluble Cu (%) Sulphide Cu (%) Au (g/t) Ag (g/t) Sulphide 1 ME+IN 4,340,000 0.75 0.03 0.72 0.22 2.33 Inferred 4,031,000 0.71 0.01 0.70 0.18 1.90 12 ME+IN 725,000 0.67 0.06 0.62 0.11 3.06 Inferred 154,000 0.44 0.04 0.40 0.07 1.40 13 ME+IN 2,803,000 0.59 0.08 0.52 0.13 1.88 Inferred 3,474,000 0.51 0.05 0.46 0.11 1.60 2000S ME+IN 740,000 0.70 0.07 0.63 0.17 3.28 Inferred 636,000 0.73 0.05 0.68 0.18 3.50 Total ME+IN 8,608,000 0.69 0.05 0.64 0.18 2.33 Inferred 8,295,000 0.62 0.03 0.59 0.15 1.89 Transition 13 ME+IN 148,000 0.60 0.27 0.35 0.145 2.040 Inferred 17,000 0.52 0.24 0.28 0.115 1.762

Mineral resource prepared by Dr. Gilles Arseneau, P.Geo., reported in JDS Energy and Mining Inc. 2017. NI 43-101 Preliminary Economic Assessment Technical Report on the Carmacks Project, Yukon, Canada, filed on www.sedar.com on 9 February 2017 with updated mineral resource for Zones, 2000S,12, and 13 as reported in April 9, 2018 News Release. The estimate of Mineral Resources conforms to the Canadian Institute of Metallurgy (CIM) Mineral Resource and Mineral Reserve definitions referred to in the National Instrument (NI) 43-101, Standards of Disclosure for Mineral Projects. Investors are cautioned that additional drilling may not result in an increase in Mineral Resources from Inferred to Measured or Indicated Resources.

Sul Sulphi hide e Res esour urce e ha has potent ential for ex expans nsion n and nd addition n to fut utur ure e proces essing ng

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Va Value ue Added dded – So So Fa Far!

Ø Re Re-engin ineered process – two-stage agitated tank leaching allows recovery of oxide copper and precious metals

• Improves estimated project economics compared to recovery of copper only
• 4-hour copper le

leach tim ime estimated to improve cash-flow, compared to 200+ days for heap leaching Ø Potentia ially lly a very lo low cost copper producer - Cash cost of copper production estimated at US$1.08/lb lb after precious metal credits Ø Explo loratio ion to extend min ine lif life,

• Increased Oxid

ide M+I resource by 43% over pre-2015 resource

• Increased resource not yet incorporated in economic analysis
• Known mineralised zones and geophysical anomalies remaining to be explored
• Increased Sulp

lphid ide M+I resource by 85%, resource remains open at depth along strike Ø Envir ironmental l Sustain inabilit ility – integrated as a core design criterion - Green energy metal buyers want a sustainably produced metal source

Progressive Transformation

Ca Carmacks Cu Cu-Au Au-Ag Ag Project Pr Prog

• gressive Tr

Transfor

• rmation
• n

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Ca Carmacks P Proje ject Co Contin inuin ing t to B Build ild V Valu lue – Ne Next Steps

Feasib ibilit ility Engin ineerin ing

Ø Advance metallurgical process engineering to feasibility level (Q4 2019/Q1 2020), focusing on: § reducing process plant capital costs (target 8% CAPEX reduction); and, § optimizing the process to minimize reagent requirements (target 4% process cost reduction). Ø Update costing on existing permitted project designs (mining and waste rock management, infrastructure)

Envir ironmental l and Permit ittin ing

Ø Project is partially permitted with a Quartz Mining License (QML) for the previous heap leach plan – previous mine plan, waste rock management plan, access road upgrading designs in the PEA remain the same as those covered by the QML - further environmental assessment is required to incorporate the revised metallurgical plan and tailings management in an updated QML Ø Submission of updated Project Description for YESAB review (H1 2020 submission with expected approval H1 2021). Ø New Quartz Mining Licence to replace current QML (H1 2021). Ø Type A Water Licence (following YESAB review; H1 2022).

Fin inancin ing

Ø Seeking a joint-venture partner for the Project Ø Continued equity raises in pace with workplan – also will consider a small royalty Ø Consider metal offtake opportunities for cathode copper. Ø Project Financing – to be pursued on completion of Feasibility Study

Carmacks - Next Steps

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Ca Carmacks Cu Cu-Au Au-Ag Ag Project St Streng engths hs + Opportuni unities es = Inv nves estment ent Value ue

Investment Value

STR STRENGTH THS Ø Ad Advan anced Stag age

• As soon as 3.5 years to production (subject

to feasibility study and a production decision)

• Partly permitted to construct

Ø Po Potent ential Low-co cost Copper Produce cer

• Estimated C1 Cash Cost US

US$1.08/lb (after precious metal credits)

Ø Est Establish shed Infrast structure

• Road accessible now
• 11 km to Yukon power grid (94% hydro

power)

Ø La Largely Unencumbered

• $900,000 advance royalty remains

Ø Ca Canadian Dollar Exposure

• Revenue in $USD, Costs in $CAD

Ø En Environ

• nmental Sust

stainability

• Primary power is renewable
• Cathode copper producer, no copper

smelting required

Ø Po Positioned ned to take e advant ntage e of looming ng co copper supply y short-fa fall Ø Po Poised ed for re-ra rati ting as de-ri risking conti tinues Ø Po Potent ential for fur urther her res esour urce e growth

• Located in the heart of the Carmacks

Copper Belt

• Remaining untested mineralized zones on

property

• Underlying sulphide resource remains open

at depth along strike Ø In Increased mineral resource remains to be ad added to economic model!

TSX.V:COL Suite 1120 – 1095 West Pender St. Vancouver, BC V6E 2M6 T: 604.398.3452 F: 604.398.3456 www.coppernorthmining.com info@coppernorthmining.com Oct 2019

Carmacks Cu-Au-Ag Project Join us in the Transformation!