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

28 February 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. 2016. NI 43-101 Preliminary Economic Assessment Technical Report on the Carmacks Project, Yukon, Canada”, with an effective date of 12 October 2016 and posted on www.sedar.com on 25 November 2016 (“the 2016 PEA”), is preliminary in nature and there is no certainty that the PEA findings will be realized. The economic analysis in the 2016 PEA is based solely on measured and indicated mineral resources and does not include inferred mineral resources. Refer to the 2016 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

• Dr. Harlan Meade, P.Geo., Director 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 dore production Positive 2016 PEA 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 additional 4.3 MT Measured and Indicated Resource and Potentially 2.5 Years Additional Mine Life

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Corporate Structure

Co Copper N North – Co Corporate S Structure

Capital Structure (as at 28 February 2019) Issued: 85,900,413 Options: 5,264,000 Warrants: 17,101,066 Fully Diluted: 108,265,479 Management/Directors: 10,634,667 (9.8%)

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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.

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

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).

Dr

• Dr. Harlan Me

Meade, P. P.Geo. – Di Director

Ø Retired President and CEO of Copper North (Dec 2018). Former President and CEO Selwyn Resources Ltd.; Yukon Zinc

• Corporation. Over 40 years experience in exploration and development in the mineral industry.

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

Ø Former Executive Vice President and Chief Financial Officer of Endeavour Financial Corporation.

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 Ch Chunpongtung, P , P.E .Eng.

• g. – Di

Director

Ø

• Mr. Chunpongtong is 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.

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 working with public resource companies.

Directors –Management-Advisors

Ou Our Experienced Team Dir Directors – Ma Management - 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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In In the beginning (2011 for Copper North)

Ø Copper-only heap leach project – M3 2012 Feasibility

• 7 year mine life, based on: M&I

M&I 11.98 Mt @ 1.07% Cu

• Ignored 0.456 g/t Au and 4.58 g/t Ag
• $177M pre-production Capex
• (current CAD would add approx. $22M to Capex)
• $1.59/lb Cash cost of production
• IRR: 14.1% (pre-tax), 10.0% (after-tax)
• NPV (8%): $55M (pre-tax), $14.5M (after-tax)
• Payback: 4.1 years (pre-tax), 5.3 years (after-tax)
• Based on CAD=USD at par

,

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 Ø Engineering a low-cost producer Ø Expanding the mineral resource through exploration

Ad Adding to our: Qu Quality Deposit

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

Exce Excelle llent Loca

• cation

ion

Ø Yukon, Canada: low political risk, stable tax regime § Yukon reduced corporate tax from 15% to 13% in April 2017 Ø 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 efficiently recovers copper by sulphuric acid leach and precious metals by cyanide leach

§ JDS Energy and Mining. 2016. NI 43-101 Preliminary Economic Assessment Technical Report on the Carmacks Project, Yukon, Canada, filed on www.sedar.com on 25 November 2016. The 2016 PEA is preliminary in nature and there is no certainty that the PEA findings will be realized.

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

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

• w-co

cost st Copper r Pro roduce cer

Ø Precious metals recovery adds 73% to net project revenue (at US$3.20/lb Cu, and US$1,320 Au) Ø Result is a low-cost Cu producer after precious metals credits § US$1.08/lb lb C1 cash cost in lower decile of global copper producers compared to $1.59/lb for copper only heap leach

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 Th The Gol

• ld Be

Benefit

The Gold Benefit

Notes to Table: The above estimates are forward-looking and demonstrate sensitivity to specific project assumptions. a. Source: M3 Engineering. NI43-101 Technical Report, Feasibility Study 31 Oct 2012.. b. From JDS Energy and Mining. 2016. NI 43-101 Preliminary Economic Assessment Technical Report on the Carmacks Project, Yukon, Canada. c. Au spot price on 28 Feb 2019.. d. Ag spot price 28 Feb 2019 e. Current US$/CAD exchange rate would add approx. CAD$22M to preproduction capex. f. C1 cash cost of copper production net of precious metal credits.

2012 FSa Cu US/CAD$3.20/lb. 2012 FS Base Cu US$2.75/lb. Au US$1,300/oz. Ag US$17.50/oz. 2016 PEA Baseb Cu US$3.20/lb. Au US$1,320/oz.c. Ag US$15.20/oz.d Annual Average Production 30M lbs Cu 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 CAPEX (includes sustaining capital, closure, and contingency) CAD$190Me ($178M pre-prod) CAD$263M ($240M pre-prod) CAD$263M ($240M pre-prod) Gross Revenue LOM CAD $677M CAD$981M CAD$1,107M Net Operating Revenue LOM CAD$333M CAD$450M CAD$576M C1 Cash Cost Productionf Cu US/CAD$1.59/lb Cu US$1.08/lb Cu US$1.07/lb NPV (Pre/Post Tax 8% discount) CAD$55M/$15M CAD$56M/$18M CAD$137M/$70M IRR (Pre/Post Tax 8% discount) 14.1%/10.0% 14.2%/10.2% 22.3%/16.4% Payback (Pre/Post tax 8% discount) 4.1/5.3 years 4.3/4.6 years 3.1/3.4 years

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Adding Gold Recovery has the following economic benefits compared to copper-only heap leach: (e.g., at US$3.20/lb Cu and US$1,320/oz Au)

Ø Gross Revenue is 64% higher Ø Net Revenue is 73% higher Ø NPV (pre-tax) is 2.85X higher Ø IRR (pre-tax) is 1.6X higher Ø Pay-back period reduced by 27% (for 38% higher Capex) Ø C1 Cash Cost reduced by 33%

Gold recovery can offset lower copper prices: e.g., at US$2.75 Cu and US$1,300 Au, NPV and IRR are comparable to copper only at US$3.20/lb

Economically Resilient

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

• nom
• mically Re

Resilient

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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 mineralized targets along a 6 km long north/south trend Ø Our initial objectives are 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

Focused on Known Min ineralis lised Zones 2016 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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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 ned oxi xide e and nd sul ulphi hide e mineral resource (M+I and Inferred) in increased by 62%; § Updated resource detailed in the 2016 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% over the 2016 Mineral Resource - potential to provide an additional 2.5 years of mill feed.

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 (2018)

Title of Presentation Goes Here

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 2016 PEA plus added resource announced in April 9, 2018 News Release 3. PEA refers to the JDS Energy and Mining Inc. 2016. NI 43-101 Preliminary Economic Assessment Technical Report on the Carmacks Project, Yukon, Canada, filed on www.sedar.com on 25 November 2016. 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 2016 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 November 25, 2016 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 Resource

Ca Carmacks P Proje ject Sul Sulphi hide e Miner neral Res esour urce 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. 2016. NI 43-101 Preliminary Economic Assessment Technical Report on the Carmacks Project, Yukon, Canada, filed on www.sedar.com on 25 November 2016 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

• 38% in

increase in in capex adds 73% to net revenue (at US$3.20/lb Cu price) compared to copper-only heap leaching

• 4-hour copper le

leach tim ime improves cash-flow, compared to 200+ days for heap leaching Ø A very lo low cost copper producer - Cash cost of copper production US 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, potentially adding 2.5 years of production to previous 7 year mine life, known mineralized zones remaining to be explored

• Increased Sulp

lphid ide M+I resource by 85%, resource remains open at depth along strike (Could this be Carmacks 2.0?) 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 (Q2/Q3 2019), focusing on: § reducing process plant capital costs (target 8% CAPEX reduction); and, § optimizing the process to minimize reagent requirements (target 4% reduction in processing OPEX). Ø Update costing on existing feasibility-level designs (mining and waste rock management, infrastructure)

Envir ironmental l and Permit ittin ing

Ø Project is partially permitted with a Quartz Mining License for the previous heap leach plan – requires further environmental assessment to update QML to current plan. 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 Continued equity raises in pace with workplan – also will consider a small royalty Ø Consider metal offtake opportunities for cathode copper. Ø Project Financing Ø Target production 2023.

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

• 3.5 years to production
• Partly permitted to construct
• Feasibility level resource, mine plan,

infrastructure plan

Ø Lo Low-co cost Copper Produce cer

• 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 – could this be Carmacks 2.0?

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 28 February 2019

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