TSX:ANX NX Co Corporate P te Pres esentati tion | | November 2017 From the ground up
Forward Looking Statements TSX:ANX NX This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, the Arrangement, statements regarding the combined company, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the approval of the Arrangement by the Toronto Stock Exchange and the TSX Venture Exchange; the approval of the Arrangement by the Ontario Superior Court of Justice; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any projects caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; the realization of the expected benefits resulting from the combination of the two entities (or the strategies or future actions of the companies); and other factors. Additionally, forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "may," "estimates," "expects," “intends,” "indicates," "targeting," "potential" and similar expressions. These forward-looking statements, including statements regarding Anaconda’s beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. For further details of other risks and uncertainties, please refer to Anaconda and Orex’s public disclosure available on SEDAR at www.sedar.com, in particular Anaconda’s Annual Information Form and Orex’s MD&A’s. Forward-looking information is subject to significant risks and uncertainties and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. The forward looking information contained in this document is made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law. From the ground up 2
About Anaconda TSX:ANX NX Atlantic C Canada R Regional G Gold P Produce cer, D Developer per a and E Explorer er Appro xima te ly 1M o unc e s o f g o ld – 2 ma in pro je c ts • Co mple te pipe line o f pro je c ts • Curre ntly, ~16,000 o unc e s o f a nnua l pro d uc tio n • T a rg e ting a ppro xima te ly 50,000 o unc e s pe r ye a r b y 2020 • Regi egion onal C Com ompetitive A e Adv dvantage Our pe o ple (100+ ye a rs o f se nio r ma na g e me nt e xpe rie nc e , “A” pla ye rs) • E xpe rie nc e d in e c o no mic a lly mining sma ll-sc ale d e po sits • Stro ng c o rpo ra te c ulture (Re so urc e ful, Inno va tive ) • E sta b lishe d g o ld pro d uc e r in Atla ntic Ca na d a (Bra nd re c o g nitio n) • Sub sta ntia l o pe ra ting infra struc ture a t the Po int Ro usse Pro je c t • Signifi ficant Grow owth Profi ofile in n next ext 3 t to 5 o 5 Y Yea ears rs E xisting po rtfo lio o f Mine ra l Re so urc e s (Go ld b o ro a nd Po int Ro usse ) • Re g io na l c o nso lid a to r o f g o ld a sse ts (M&A) • Go ld pro d uc tio n (Go ld b o ro , Po int Ro usse a nd M&A) • Large, m mostly h ly high-gra rade m minera eral r res esou ource ce por portfol folio wi o with pot poten ential t to o signifi ficantly incr crease oun unces Curre ntly, o ve r 600,000 o unc e s in the me a sure d a nd ind ic a te d c a te g o rie s; Ove r 400,000 • o unc e s in the infe rre d c a te g o ry Appro x. 70% o f me a sure d a nd ind ic a te d re so urc e s a re a b o ve 5.0 g / t (†) • Gold ldboro St Stable, L Low-risk M Mining J g Jurisdict ctions OP OPEN From the ground up 3
Capitalization TSX:ANX NX Ticker ANX Shareholders Percent Share Price 1 $0.07 52 Week Range $0.05-$0.08 Institutional investors 9.5% Average Daily Volume 2 179,340 Officers & Directors 7.8% Market Cap $29.6M Shares Outstanding 3 422.3M Float 82.7% Stock Options 4 32.5M Warrants 5 42.3M Fully Diluted 497.0M Cash 6 $4.5M Debt 6 $1.0M 1 – As at October 31, 2017. 2 – FY 2018 to Date. 3 – At the May 8, 2017 special meeting, shareholders approved a share consolidation of 0.25 shares for every one common share of Anaconda. The board of directors has discretion to implement it within 12 months. 4 – Weighted average exercise price for the outstanding stock options is $0.06. 5 – Weighted average exercise price for the outstanding warrants is $0.07. 6 – Includes $1.6M of cash as at August 31, 2017 plus recently announced equity financing of $2.9M (net of finders’ fees). Anaconda also had an unused line of credit of $1.0M at August 31, 2017 for total liquidity of $5.5M. From the ground up 4
Experienced and Invested Team TSX:ANX NX Executive Management Team Board of Directors Dustin Angelo Jonathan Fitzgerald (Chairman) President, CEO & Director President of Stope Capital Advisors Inc. Robert Dufour Kevin Bullock Chief Financial Officer Chief Executive Officer of Golden Reign Resources Ltd. Gordana Slepcev Michael Byron Chief Operating Officer President & CEO of Nighthawk Gold Corp. Paul McNeill Jacques Levesque Vice President, Exploration Former CFO of Orex Exploration Inc. Allan Cramm Lewis Lawrick Vice President, Innovation and Development Managing Partner of Thorsen-Fordyce Merchant Capital Inc. Lynn Hammond Maruf Raza Vice President, Public Relations Partner at MNP LLP Over 100 years of cumulative experience in mining on the executive management team. Track record of running safe, profitable operations. Experience in developing and operating mining projects in AtlanticCanada. Board and Management collectively own 7.8% of Anaconda Mining. From the ground up 5
Re-Rating Potential $100 $150 $200 $250 $300 $50 $0 (1) Based on closing prices as of October 31, 2017 and NI 43-101 compliant technical reports $252 Wesdome Gold Mines Ltd $206 Klondex Mines Ltd $166 Atlantic Gold Corp $166 Richmont Mines Inc $111 Producer Average Enterp En $85 Guyana Goldfields Inc rprise V $79 Auryn Resources Inc Value / $76 Developer Average / M, I & Inferred R $66 Argonaut Gold Inc $59 Marathon Gold Corp 6 $58 Barkerville Gold Mines Ltd Resources ( $57 Treasury Metals Inc $56 Gowest Gold Ltd (C$/oz $56 Pure Gold Mining Inc oz) (1) $43 Mandalay Resources Corp $39 Resource Capital Gold Anaconda Average Developer Average Producer Average $38 Rambler Metals and Mining PLC $28 Alio Gold Inc $26 Anaconda Mining Inc. From the ground up $26 $76 $111 TSX:ANX NX
Established Regional Gold Producer TSX:ANX NX Debt E Elimin inatio ion * - Includes operating costs, corporate costs, sustaining exploration/development investments and capital expenditures. From the ground up 7
Project Locations / Mineral Resources (1) TSX:ANX NX Anacon onda M Mineral Resou ources fr from om the he G Gol oldboro, Poi oint R Rou ousse a and V Viking Proj ojects Poin oint R Rou ousse M & & I I M & & I I Grad ade Inferred Inferred G Grad ade Proje ject Ounces Ounces Tonnes To (g/ g/t † ) To Tonnes (g/ g/t † ) Goldboro 5 2,556,000 5.48 457,400 2,669,000 4.35 372,900 Viking Vik Point Rousse (Pine Cove 2,3 ) 1,560,000 1.67 83,685 208,700 1.57 10,565 Point Rousse (Stog’er Tight 3 ) 204,100 3.59 23,540 252,000 3.27 26,460 Viking 4 1,817,000 1.42 83,000 847,000 1.15 31,000 To Total 647,625 440,925 No Note: Please refer to the Appendices for the Technical References. Gold ldbo boro 250 km From the ground up 8
Goldboro Project TSX:ANX NX High-grade gold in quartz veins and disseminated gold in wall rock Multiple stacked mineralized zones (‘belts’) Known strike length of approximately 1.6 km with mineralization intersected from surface to depths of 250 - 350 metres Stratigraphy consists of alternating shale and sandstones with gold generally hosted in shale Folded anticlinal structure Past production of ~55,000 ounces at ~6.7g/t gold (1896-1910) Well understood geological model globally Dock Infrastruct cture Existing Decline and Shaft Shaft Decline Existing and maintained mine road Adjacent to tide water – existing port From the ground up 9
Goldboro Growth Potential TSX:ANX NX 2.0 km We West Gold ldbr broo ook East st Goldbr broo ook Boston-Richa hardson Historic workings 700 m Visible Gold occurrence Select Drillhole Pierce Point (g/t Au / metres) BR-17-06 Pierce Point Resource blocks at 4 g/t cut off Vertical Longitudinal Section Looking South From the ground up
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