TSX: SMC Focused on Acquiring, Developing & Actively Investing - - PowerPoint PPT Presentation

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TSX: SMC Focused on Acquiring, Developing & Actively Investing in Quality Corporate Presentation Mining Projects June 2016 Cautionary Statements This presentation may include certain forward -looking statements within the meaning of


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SLIDE 1

Corporate Presentation June 2016

TSX: SMC

Focused on Acquiring, Developing & Actively Investing in Quality Mining Projects

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SLIDE 2

2 TSX: SMC | www.sulliden.com

Cautionary Statements

This presentation may include certain “forward-looking statements” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding future plans and

  • bjectives of Sulliden Mining Capital Inc. (“the Company”), future opportunities and anticipated goals, projected capital and operating

expenses, timetable to permitting and production and the prospective mineralization of the properties, are forward-looking statements that involve various risks, assumptions, estimates and uncertainties. Generally, forward looking information can be identified by the use

  • f forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates",

"forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such

  • statements. Forward-looking information is subject to known and unknown risks, including but not limited to: general business,

economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; acquisition risks; and

  • ther risks of the mining and resource industry. Although the Company has attempted to identify important factors that could cause

actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. These statements reflect the current internal projections, expectations or beliefs of the Company and are based on information currently available to the Company. The Company does not undertake to update any forward- looking information, except in accordance with applicable securities laws. The Company believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be unduly relied upon by investors as actual results may vary. Unless required to be updated pursuant to securities laws, these statements speak only as of the date of this presentation and are expressly qualified, in their entirety, by this cautionary statement. Non-IFRS Performance Measures: The Company has included in this document certain non-IFRS performance measures related to working capital. These non-IFRS performance measures do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s

  • performance. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a

substitute for measures of performance prepared with IFRS. The technical content of the presentation was reviewed and approved by the Company’s Project Evaluations Manager, Joseph Milbourne, who is a Qualified Person within the meaning of National Instrument 43-101. Mr. Milbourne has reviewed and approved the scientific and technical aspects of this presentation.

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SLIDE 3

3 TSX: SMC | www.sulliden.com

Who We Are

2002-2006 (Acquired by Yamana Gold)

Feasibility Study Mineral growth Permits obtained Fully funded Operational

Our team has a history of value creation. Three of our former companies were taken over at significant premiums since 2002.

2007-2009 (Acquired by B2Gold)

Feasibility Study Mineral growth Environmental approvals Operational

2009-2014 (Acquired by Rio Alto)

Mineral resource growth Feasibility Study Advanced stages of permitting

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SLIDE 4

4 TSX: SMC | www.sulliden.com

What We Do

We takes an active role in our investments by being involved at the Board level, or with contributions from our technical advisory team to ensure the proper execution of the projects we are invested in.

We generate value through the acquisition and development of quality mining projects. In addition, we identify opportunities across industries for active investments.

Our management team has extensive experience in the areas of mine exploration, permitting, construction, operations, and capital markets, which enabling us to identify high quality projects and companies to invest in, or acquire. In 2014, Sulliden Mining Capital began trading on the TSX with $25M in cash. Today, we have

  • ver $30M in working capital.*

*Adjusted working capital as at June 15, 2016, including Fair Market Value of Sulliden’s share holdings of Aguia

  • Resources. See next slide for breakdown. See slide 2 for details related to Non-IFRS Performance Measures.
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SLIDE 5

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Performance & Share Value

*Adjusted working capital as at June 15, 2016, including Fair Market Value of Sulliden’s share holdings of Aguia

  • Resources. See slide 2 for details related to Non-IFRS Performance Measures. | *Intrinsic value as at June 15, 2016

$0.25/ Sulliden share

~$30M working capital

$0.81/ Sulliden share $0.19/ Sulliden share $0.16/ Sulliden share

Combined value

  • f 10 other

investments:

Capitalization Summary (as at Jun.15, 2016)

Shares Outstanding Warrants Options ~36.9 M ~2.5 M ~3.5 M

Cash:

~$3 M

Value of Investments*

~$27 M

Performance (as at June 15, 2016)

Share Price 52-week range Market Capitalization $0.40 $0.19 - $0.45 ~$13.6 M

Capital Structure Intrinsic Value*

Value of Sulliden Holdings Sulliden Value of Investments + Cash

  • Avg. purchase price: $0.08/share

ASX:AGR as at June 15, 2016: $0.13/share

  • Avg. purchase price: $0.22/share

TSX:BSX as at June 15, 2016: $0.84/share

$0.14/ Sulliden share

Purchase price: $0.07/share CNX:CPN as at June 15, 2016: $0.07/share

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SLIDE 6

Major Projects & Investments - Overview

6 TSX: SMC | www.sulliden.com

Troilus Gold Project

Past-producing gold/copper/silver mine, Quebec

  • 2-year option agreement with First Quantum Minerals (May 2016) to purchase 100% of the project

East Sullivan

Past-producing polymetallic mine, Quebec, Canada

  • 100% ownership

A selection of our most important projects and investments, include: Rovina Valley Gold project

2nd largest gold deposit in Europe, Romania

  • $5M invested in May 2016. Two Sulliden representatives join the Carpathian board of directors.

Volta Grande Gold Project

Multi-million ounce gold project in permitting phase, Brazil

  • Sulliden holds 8.5M shares, or 2.2% of outstanding shares.

Rio Grande Phosphate Project

Feasibility-level project, first-mover in the region, Brazil

  • Sulliden holds 69.7M shares, or 19% of Aguia`s outstanding shares.
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SLIDE 7

7 TSX: SMC | www.sulliden.com Abitibi Region, Quebec, Canada Para State, Brazil Rio Grande do Sul, Brazil Transylvania, Romania

Major Projects & Investments - Location

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Rovina Valley Project - Overview

Investment Details

  • CAD$5,000,000 invested in Carpathian on May 19, 2016. 71,428,571 units acquired at $0.07 each.
  • Each unit is comprised of one common share + one ½ warrant priced at $0.12 (valid for a period of two years).

The warrant may be accelerated if Carpathian shares trade above $0.15 for 20 consecutive days.

  • Two Sulliden representatives have joined Carpathian’s board of directors.

Gold, Copper and Silver project located in Romania. Second largest gold deposit in Europe.

$5M invested in May 2016. Two representatives from Sulliden join the Carpathian Board (See May 19, 2016 press release)

Overview

  • Project covers 94 km² within the “Golden Quadrilateral”, in west-

central Romania.

  • This famous mining district has been Europe's most important gold

producing region for over 2000 years (+55M oz. of historic gold production)

  • Three porphyry gold-copper deposits identified to date:

Rovina, Colnic, and Ciresata.

  • PEA completed in March 2010 demonstrated attractive economics
  • Good existing infrastructure (roads, water and power)
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Rovina Valley Project - Property Map

  • Three gold-copper deposits

identified to date

  • Many other targets identified;

substantial exploration upside EXPLANATION

*Geological map showing porphyry mineralisation centered on subvolcanic quartz diorite to andesite stocks intruded 10 – 13 Ma

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Rovina Valley Project

  • Latest NI 43-101 mineral resource

estimate (July 2012) demonstrates

  • ver 10 million ounces of Gold

Equivalent Measured & Indicated mineral resources

For Au Eq. calculation, determined by using a gold price of $US1,370/oz and a copper price of $3.52/lb (3yr trailing avg. as of July 10, 2012), metallurgical recoveries are not taken into account. In-pit resource calculation based on US$1,313/oz Au oz and $2.27 to $2.57/Cu. Cut-off grades used of 0.25% Cu eq for the Rovina deposit, 0.35 g/t Au eq for the Colnic deposit and 0.65 g/t Au eq for the Ciresata deposit. * Mineral resources that are not mineral reserves do not have demonstrated economic viability. See Forward Looking Statements on slide 2.

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Troilus Project - Overview

Overview

  • Approximately 4,700 hectares of mining and exploration claims,

and surface rights in the Abitibi region of Quebec, Canada

  • Located in the east domain of the Frotet-Evans Greenstone Belt

History

  • Past-producing gold/copper/silver mine (1996-2010) produced in

excess of two million ounces of gold and 70,000 tonnes of copper*

Option Agreement with First Quantum:

  • 2-year option agreement to purchase 100% interest in Troilus Mine
  • During this period, Sulliden commits to spend a min. of $1M on

technical studies to evaluate the economic viability of the project. Agreement Payment Structure

  • $100,000 to First Quantum upon signing (completed)
  • Additional cash payment of $100,000 on the 1st anniversary of Agreement
  • Final cash payment of $100,000 on the date of exercise of the Option
  • First Quantum to receive a Net Smelter Royalty (NSR) of 1.5% or

2.5% depending on the gold price being more or less than $1,250/oz

2-year option agreement with First Quantum Minerals to acquire past-producing Troilus Mine

(See May 2, 2016 press release)

*Source: Technical Report on the Troilus Gold-Copper Mine dated July 25, 2016. Report prepared for Copper One Inc., and can be found on their profile at www.sedar.com.

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Troilus Project - Location

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Troilus Project - Property Geology

  • From 1996 to 2010,

the Troilus mine

  • perated from two
  • pen pits: J4 and 87
  • Gold mineralization at

Troilus is hosted in brecciated marginal series rocks

87 J4

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3D Section of Troilus Zones Looking East

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3D Section of Troilus Zones Looking North

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Mineral Resources (as at April 22, 2016)

Updated mineral resource estimate as at April 22, 2016, completed by Roscoe Postle Associates Inc. with focus on a potential underground mining scenario.

Classification Zone Tonnage (Mt) Au (g/t) Cu% AuEq (g/t) Contained Gold (000 oz) Contained Copper (Mlb) Contained AuEq (000 oz) Indicated Z87 29.6 1.48 0.157 1.72 1,403 102.2 1,635 J4

  • J5
  • Total Indicated

29.6 1.48 0.157 1.72 1,403 102.2 1,635 Inferred Z87 7.9 1.19 0.138 1.41 305 24.2 360 J4 4.4 1.15 0.040 1.21 163 3.9 172 J5 0.3 0.98 0.045 1.05 10 0.3 11 Total Inferred 12.6 1.18 0.102 1.33 478 28.4 543

Notes: 1. CIM definitions were followed for mineral resources. 2. Mineral resources were estimated at a cut-off grade of 0.8 g/t Au. 3. Mineral resources were estimated using long-term metal prices of US$1,500 per ounce gold and US$3.50 per pound copper; and an exchange rate of US$1.00 = C$1.1. 4. AuEq = (34.59 * Au Grade + 54.02 * Cu grade)/ 34.59 5. A recovery of 83% was used for gold and 92% for copper. 6. Numbers may not add due to rounding. 7. Other than the receipt of necessary permits and ongoing reclamation obligations, Sulliden does not know of any material legal, political, environmental or other factors that could affect the development of the project.

Underground Mineral Resources (as at April 22, 2016)

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Mineral Resources (as at April 22, 2016)

Classification Zone Tonnage (Mt) Au (g/t) Cu% AuEq (g/t) Contained Gold (000 oz) Contained Copper (Mlb) Contained AuEq (000 oz) Indicated 87

  • J4

12.2 0.84 0.044 0.91 329 11.8 356 J5 2.2 0.80 0.052 0.88 57 2.5 63 Total Indicated 14.4 0.83 0.045 0.90 386 14.3 419 Inferred Z87

  • J4

2.9 0.85 0.043 0.92 81 2.8 87 J5 0.7 0.78 0.059 0.87 18 0.9 20 J4 Low 2.5 0.56 0.049 0.64 45 2.7 51 Total Inferred 6.1 0.73 0.048 0.81 144 6.4 158

Notes: 1. CIM definitions were followed for mineral resources. 2. Mineral resources were estimated at a cut-off grade of 0.3 g/t Au and were constrained by a Whittle pit shell. 3. Mineral resources were estimated using long-term metal prices of US$1,500 per ounce gold and US$3.50 per pound copper; and an exchange rate of US$1.00 = C$1.1. 4. AuEq = (34.59 * Au Grade + 54.02 * Cu grade)/ 34.59 5. A recovery of 83% was used for gold and 92% for copper. 6. Numbers may not add due to rounding. 7. Other than the receipt of necessary permits and ongoing reclamation obligations, Sulliden does not know of any material legal, political, environmental or other factors that could affect the development of the project.

Open Pit Mineral Resources (as at April 22, 2016)

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Mineral Resources (as at April 22, 2016)

Classification Tonnage (Mt) Au (g/t) Cu% AuEq (g/t) Contained Gold (000 oz) Contained Copper (Mlb) Contained AuEq (000 oz) Total Indicated 44.0 1.27 0.120 1.45 1,789 116.5 2,054 Total Inferred 18.7 1.03 0.084 1.16 622 34.8 701

Notes: 1. CIM definitions were followed for mineral resources. 2. Open pit Mineral Resources were estimated at a cut-off grade of 0.3 g/t Au and were constrained by a Whittle pit shell. Underground Mineral Resources were estimated at a cut-

  • ff grade of 0.8 g/t Au.

3. Mineral Resources were estimated using long-term metal prices of US$1,500 per ounce gold and US$3.50 per pound copper; and an exchange rate of US$1.00 = C$1.1. 4. AuEq = (34.59 * Au Grade + 54.02 * Cu grade)/ 34.59 5. A recovery of 83% was used for gold and 92% for copper. 6. Numbers may not add due to rounding.

Total Open Pit and Underground Mineral Resources (as at April 22, 2016)

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Troilus Project - Opportunity

The former mill was sold, however key infrastructure remains, including:

  • Network of roads
  • Permitted tailings pond
  • Office building and garage
  • Water treatment facilities
  • Core storage area
  • Electrical transformer station
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SLIDE 20

Overview

  • 334 hectares in the Abitibi region of Quebec, Canada
  • Property located 2 km north of Cadillac Break, a major fault zone in the district

History

  • Underground base metal mine operated on the property from 1949-1966
  • 1950s: gold-bearing zone discovered about 900 m from the mine shaft
  • 1980s: drilling conducted on the gold target (98 holes, 11,500 m)

Opportunity

  • Total of 180 drill holes (22,768 m) define a high-grade gold zone
  • Gold zone remains open - potential larger deposit
  • Potential for an economic and technically feasible mining operation

Development Strategy

  • Compile and index all historical geological data related to the gold zone
  • Drilling: Confirm gold zone with larger core in a denser array, and define size
  • Technical study: Mineral resource estimate & mine operation potential

20 TSX: SMC | www.sulliden.com

Project retained following the Rio Alto and Sulliden Gold Corporation transaction (May 2014)

East Sullivan Project - Overview

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East Sullivan - Sample Section (6600E)

Selected intercepts from section 6600E

  • 2.1 g/t gold over 10m, including 4.4 g/t over 2.8m
  • 4.2 g/t gold over 5.2m, including 10.7 g/t over 1.9m
  • 6.8 g/t gold over 7.2m, including 16.8 g/t over 2.7m

Shearzone

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Aguia Resources (ASX: AGR)

Shares held: 69.7M (19%) Average purchase price: $0.08 Aguia Resources (ASX:AGR) as at June 15, 2016: $0.13/share

$0.25/ Sulliden share

2015 performance: +243%

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SLIDE 23

Project Overview

Excellent Location

  • Project covers 39,000 ha in heart of southern agricultural region
  • Ideal location with proximity to local infrastructure and consumers

Positive PEA Completed in 2015*

  • 500,000 tonnes of SSP per annum
  • Projected OPEX of ~US$160.7/tonne of SPP (top quartile low cost producer)
  • Projected CAPEX ~US$184 million (US$209 with contingency)
  • NPV (5%)US$273 million and IRR 25% with payback in 3.2 years

Large Resources & Growth Potential

  • Três Estradas resource
  • One of many deposits held by Aguia, offering excellent future growth potential

Opportunity

  • Brazil currently imports 65% of its phosphate requirements.
  • Aguia will have a sustained logistical advantage – first mover in the region

Upcoming Catalysts

  • Updated and optimized PEA expected in Q3 2016
  • Maiden Joca Tavares JORC resource and EIA submission expected in Q3 2016
  • Permitting advancements and Feasibility Study in 2016
  • Construction start expected in 2017

23 TSX: SMC | www.sulliden.com

*See press release issued by Aguia dated August 19, 2016

Aguia Resources – Rio Grande Overview

Brazil

Fertilizer company aiming to produce domestic sources of phosphate to supply booming Brazilian agricultural sector.

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Rio Grande - Low Cost Growth

Previous JORC Resource Recently completed drill program extending JORC resource

Rio Grande Mineral Resource (2015)

  • JORC compliant phosphate resource of:

15.2Mt Indicated, 54.9 Mt Inferred @ 4.20% P2O5

  • Recent drilling program expanded strike length
  • f deposit by 1.3km to 2.5km
  • Higher grade oxide zone at surface doubled, now

totalling combined Indicated and Inferred 3.9Mt grading 10.25% P2O5 Rail going through the property Sample from TRÊS ESTRADAS

Large resource and excellent long-term growth potential.

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SLIDE 25

Aguia will optimize the PEA ahead of the Feasibility Study; material improvements are expected.

25 TSX: SMC | www.sulliden.com

Rio Grande - Path to Higher Returns

PEA Completed in 2015*

  • 500,000t of SSP per annum
  • Calcite by-product 630,000t per year

(market = $47/tonne)

  • Projected OPEX of ~US$160.7/t of SPP

(top quartile low cost producer)

  • Projected CAPEX ~US$184 million

(US$209 with contingency)

  • NPV (5%) US$273 million; IRR 25%
  • Payback in 3.2 years

The following factors will be considered to enhance the PEA:

  • Inclusion of a +600,000t per year calcite

plant to enhance cash flow and minimize the volume of waste product;

  • Potential inclusion of nearby

higher-grade deposit in the mine plan;

  • Optimized metallurgical recoveries;
  • Alternative, more cost effective logistics solutions;
  • Trade-off study of a phosrock only operation

(simplified development timeline, reduced CAPEX);

  • Long-term currency implications;
  • Further optimization of the mine plan.
  • Updated PEA expected in 2016

*See press release issued by Aguia dated August 19, 2015

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Belo Sun Mining (TSX: BSX)

*Working Capital is calculated as: Current Assets - Current Liabilities. See slide 2 for details related to Non-IFRS Performance Measures

Shares held: 8.5M (2.2%) Average purchase price: $0.22 Belo Sun (TSX: BSX) as at June 15, 2016: $0.84/share

$0.19/ Sulliden share

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Belo Sun Mining - Volta Grande Overview

Project Overview

Excellent Location

  • Brazil: a mining-friendly country
  • Para State: 2nd most active mining state in Brazil; goal to be #1

Advanced Stage of Development

  • Construction license expected in 2016
  • All surface rights acquired

Positive Feasibility Study

  • 17 year mine life; average annual gold production of 205,000 oz
  • First 10 years: 268,000 oz gold annually
  • Pre-Tax IRR of 36%; Pre-Tax NPV of $918M (1)
  • Post-Tax IRR of 26%; Post-Tax NPV of $640M (1)

Large Resources & Reserves; Excellent Long-term Growth Potential

  • Reserves: 3.8M oz at 1.02 g/t (2)
  • Resources: Measured, 5Moz at 0.99 g/t and Inferred, 1.1Moz at 0.90 g/t
  • Property covers over 120 km of “Três Palmeiras” greenstone belt

Opportunity

  • Potential transition to production in next 2 years

Upcoming Catalysts

  • Construction license expected in 2016

Volta Grande Project

Belo Sun is developing a low-cost open pit gold mine in Brazil.

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Volta Grande - Feasibility Study

Production

  • Average LOM annual gold production of 205,000 oz, 17 year mine life
  • First 10 years: 268,000 oz gold annually

Economics

  • Pre-Tax IRR of 36%; Post-Tax IRR of 26% ($1,200 / oz Au)
  • Pre-Tax NPV of $918 million; Post-Tax NPV of $640 million (5% discount rate)

Operating Costs

  • Average cash operating costs of $618 / oz Au
  • All-in sustaining cash operating costs of $779 / oz Au

Strip Ratio

  • Strip ratio of 4.3:1

CAPEX

  • Pre-production capital costs of $298 million
  • Annual LOM sustaining capital costs of $7.3 million

*$1,200 / oz Au; Reais:Dollar exchange rate of 3.1:1; See Belo Sun press release dated March 30, 2015 for details related to this study.

Feasibility Study Results (March 2015)

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Volta Grande - Property

Belo Sun owns the property covering +100km of strike length on the “Três Palmeiras” Greenstone belt; a large underexplored area with tremendous blue sky potential.

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Volta Grande - Mineral Resources

North Block (2015 Feasibility Study) 200,000 m of drilling South Block (5km from North Block) 20,000 m of drilling South Block (2013)

  • Avg. grade

Tonnes (Mt) Gold Total Indicated (0.5g/t cut-off) 3.06 g/t 2.503 246,000 oz Total Inferred (0.5g/t cut-off) 3.94 g/t 2.921 370,000 oz North Block (2015)

  • Avg. grade

Tonnes (Mt) Gold Total Measured & Indicated

(0.4g/t cut-off)

0.99 g/t 156.520 4,954,000 oz Total Inferred (0.4g/t cut-off) 0.90 g/t 39.690 1,148,000 oz

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Strong Management Team

  • High calibre team with a proven track-record

and a long history of working together

Senior Management Team

Justin Reid, MSc., MBA, CEO; Director

  • Geologist and capital markets executive with

+20 yrs focused in the mineral resource space

  • Former President and Director of Sulliden Gold, Senior mining analyst

at Cormark and Managing Director Global Mining Sales at NBF

Paul Pint, CPA, CA, President

  • +20 yrs of capital markets experience
  • Has held a number of senior positions at various financial

institutions and boutique investment banks in Canada.

Peter Tagliamonte, P.Eng. MBA, Senior VP; Executive Director

  • 30 yrs of experience in mine building and operations

with particular focus in Central and South America

  • Former CEO Sulliden Gold, Central Sun Mining and COO of Desert Sun

Joe Milbourne,FAusIMM, Corporate Evaluations Coordinator

  • Metallurgist with +40 yrs experience in Central and South America
  • Former head of process engineering at AMEC Mining and Metals.

International experience with BHP, Eldorado and Cominco

Stéphane Amireault, MScA., P.Eng., Senior Geologist

  • Professional engineer with +25 yrs experience in gold exploration
  • Extensive experience in Central and South America, particularly in Peru

Board of Directors

Stan Bharti, P.Eng., Chairman Justin Reid, MSc., MBA, President & CEO; Director Peter Tagliamonte, P.Eng., MBA Executive Director Bruce Humphrey, P.Eng., Director

  • Hon. Pierre Pettigrew, p.c., Director

Diane Lai, MBA, Director

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Former Mine Development Successes

2002 - 2006

Value generated through the development of the mine to production and exploration success

$1.00

invested April 2002

$11.26

value as of Jan 2015 Acquired by:

$48.38

value as of Nov 2012 Feasibility Study Mineral growth Permits obtained Fully funded

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SLIDE 33

2007 - 2009

Value generated through exploration success and mine development

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$1.00

invested Dec 2007

$1.73

value as of Jan 2015 Acquired by:

$3.89

value as of Mar 2012 Environmental approvals Feasibility Study Mineral growth

Global Financial Crisis

Former Mine Development Successes

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SLIDE 34

2009 - 2014

Value generated through resource growth and advancement of mine to construction

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$1.00

invested Jan 2009

$3.86

value as of Jan 2015 Acquired in 2014 by: Acquired in 2015 by:

$4.23

value as of Apr 2015 Mineral resource growth Feasibility Study Advanced stages of permitting

Former Mine Development Successes

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SLIDE 35

TSX: SMC

www.sulliden.com Sulliden Mining Capital Inc.

800-65 Queen Street West Toronto, Ontario M5H 2M5

Investor Contact

Caroline Arsenault Corporate Communications +1 (416) 861-5805