[PPT] - VRIC 2020 January 19 th , 2020 / Workshop 5 Presented by Kai PowerPoint Presentation

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VRIC 2020

January 19th, 2020 / Workshop 5

Presented by Kai Hoffmann, CEO

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▪ We track over 1,400 companies on the TSX, TSX-V, and the CSE ▪ Provide sector and broker reports ▪ Logged +33 500 deals since 2011 ▪ Data-driven approach to examining financings ▪ In-house data analyst ▪ Consulting on capital raises and ancillary aspects

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J U N I O R M I N I N G M A R K E T

CAD financing CAD market cap

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Weighted Index Factors:

1. Total $s of financings

pened
2. Percentage of broker

participation

3. Total # of deals opened

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www.Oreninc.com

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Collaboration with PDAC Publication at PDAC Conference Special Focus: Financings of companies with sub C$ 100mn market cap

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Flow-Through will be major contributor and will keep

companies with Canadian projects afloat

Cannabis companies have peaked in 2018
Chance to see less financings with warrants attached to

show strength

Smallest financing 2019:

$5,000

$0.05 – 150% Premium 1 Warrant, 36 months

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Source: Oreninc

7 11,1% 10,0% 15,5% 18,7% 18,4% 0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 14,0% 16,0% 18,0% 20,0% $- $0,50 $1,00 $1,50 $2,00 $2,50 $3,00 $3,50 $4,00 $4,50 $5,00 2015 2016 2017 2018 2019 Billions Common Flow-Through FT in % of total

FT $572mn

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FT; $561.319.171,07 ; 47% Common; $625.085.210,55 ; 53%

2019

FT Common

FT; $464.380.500,00 ; 40% Common; $685.201.870,27 ; 60%

2018

FT Common

TOP 10

$197.68mn Canadian Exploration Financings

Share of FT 40%  47%

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 FT Premiums sub 30%  FT Premiums negative – free shares!  FT with a warrant “The offering will consist of flow-through units and non-flow-through units both priced at five cents per unit.”

CALL TO ACTION #FREESHARES

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Mar arket Ca Caps Sha Share Pr Price Dollar ars Rai aised Dilution FT T Pr Prem emiums Co Comments 1 6,121,569.00 0.105 200,000.00 3.3%

52.38%

10% Disc at announcement, pumped up, sold off 2 2,227,804.00 0.12 270,799.98 12.2%

50.00%

Known Scammer 3 32,834,618.00 0.2 1,000,000.00 3.0%

40.00%

Positioning for IR firm 4 18,638,902.00 0.36 1,999,999.00 10.7%

38.89%

Promo Play, Eric Sprott Investment 5 8,350,682.00 0.195 780,000.00 9.3%

33.33%

17.6% premium at time of announcement 6 2,332,330.00 0.22 168,000.00 7.2%

31.82%

Positioning for promoters & insiders 7 26,412,491.00 0.175 2,990,861.64 11.3%

31.43%

Positioning for promoters 8 16,672,546.00 0.08 227,333.00 1.4%

31.25%

Dragged out financing from 2018 9 3,159,830.00 0.31 308,000.00 9.7%

29.03%

Premium upon close, Eric Sprott investment 10 5,870,498.00 0.07 100,000.00 1.7%

28.57%

Known Scammer 11 26,955,184.00 0.83 405,000.00 1.5%

27.71%

Promote, doomed to fail 12 6,312,694.00 0.135 140,000.00 2.2%

25.93%

0% Premium on announcement 13 2,597,227.00 0.1 300,000.00 11.6%

25.00%

Known Promoter on the board 14 151,354,069.00 0.37 5,096,356.72 3.4%

24.32%

No announcement of financing opening, closed after positive news 15 8,959,093.00 0.65 250,000.00 2.8%

23.08%

Area play in Red Lake 16 25,766,495.00 0.285 360,739.94 1.4%

22.81%

Stock had massive run up, 0% premium at announcement 17 7,626,007.00 0.205 100,000.00 1.3%

21.95%

Pot AND Cobalt company 18 6,312,694.00 0.135 275,000.00 4.4%

18.52%

0% Premium on announcement 19 6,848,094.00 0.18 150,000.00 2.2%

16.67%

2019: 750k, 294k, 225k placements, company has more advisors than DT 20 3,564,000.00 0.48 100,000.00 2.8%

16.67%

20% discount on annoucement at the end of the year

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Cannabis on the CSE

As of Oct. 31, 19

Cannabis & related companies accounted for 81% capital raised YTD Raising just below 2bn CAD Approx 50% was raised by US issuers TOTAL for 2018: 3.99bn! Mining raised $162mn or 7% of the total

Source: The CSE, Graph: https://marijuanaindex.com

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2018

1/1 Warrant 1/2 Warrant 0 Warrant

Average Premium

63% 25.6

months

Average Term No of Financings

66% 27.7

months

363

49.7%

216

29.5%

151

20.6%

2019

Average Premium Average Term No of Financings

65%  25.1 ➔

months

61%  29.1 

months

384

49.5% ➔

189

24.4% 

197

25.4% 

731 775

TOTAL

Top 30 financings,

nly 30% with a warrant

Financings with warrants 2018: 79.2% 2019: 73.9% 

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“HOW YOUR INVESTMENT IS KILLING THE INDUSTRY”

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Source: Oreninc

*includes Common & Flow-Through, ex Oil & Gas & Frack Sand

14 8.030 4.609 2.290 3.242 2.406 4.819 4.600 2.758 2.538

1.000

2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 2011 2012 2013 2014 2015 2016 2017 2018 2019 Millions

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Dow Jones: +18.8% S&P500: +24.7% Microsoft: +55.1% Tesla: +68.9% Apple: +103.3%

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Advantages of ETFs ▪ Managed by a fund manager with industry expertise & qualifications ▪ Spreading your investment dollars wider

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TICKER FUND NAME ISSUER AUM GDX VanEck Vectors Gold Miners ETF VanEck $12.81B GDXJ VanEck Vectors Junior Gold Miners ETF VanEck $4.86B RING iShares MSCI Global Gold Miners ETF Blackrock $291.83M SGDM Sprott Gold Miners ETF Sprott, Inc. $184.95M JDST Direxion Daily Junior Gold Miners Index Bear 3X Shares Rafferty Asset Management $137.93M SGDJ Sprott Junior Gold Miners ETF Sprott, Inc. $59.79M GOAU U.S. Global GO Gold and Precious Metal Miners ETF US Global Investors $56.15M GOEX Global X Gold Explorers ETF Mirae Asset Global Investments $42.47M

$18.44B

TSX.V Market Caps $18.98bn* TSX Market Caps $362.15bn*

*as of December 31,2019; Source: TSX.com

GDXJ Sibanye Gold (US$29.7bn) Kinross (US$5.6bn)

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Grass roots companies struggling to raise funds Deal makers: Become immediately ETF relevant 594 financings below C$ 1mn Average market cap: C$ 9mn 471 financings above C$ 1mn Average market cap: C$ 67mn

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Dow Jones: +18.8% S&P500: +24.7% GDX: +39.9% GDXJ: +39.3%

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Gold: 19.6% GDX: +38.9% GDXJ: +38.2%

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Gold: 19.6% GDX: +38.9% GDXJ: +38.2%

SilverCrest: +87.7% AMEX Expl.: +188.5% Great Bear: +206.9%

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Gold in USD Source: World Gold Council, Oreninc 0,00 10,00 20,00 30,00 40,00 50,00 60,00 70,00 80,00 90,00 1.200,0 1.250,0 1.300,0 1.350,0 1.400,0 1.450,0 1.500,0 1.550,0 1.600,0 Gold Oreninc Index

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Gold in USD, Total size opened in CAD Source: World Gold Council, Oreninc $- $100.000.000 $200.000.000 $300.000.000 $400.000.000 $500.000.000 $600.000.000 $700.000.000 0,0 200,0 400,0 600,0 800,0 1.000,0 1.200,0 1.400,0 1.600,0 1.800,0 2.000,0 13-Jan-11 10-Mar-11 5-May-11 30-Jun-11 25-Aug-11 20-Oct-11 15-Dec-11 9-Feb-12 5-Apr-12 31-May-12 26-Jul-12 20-Sep-12 15-Nov-12 10-Jan-13 7-Mar-13 2-May-13 27-Jun-13 22-Aug-13 17-Oct-13 12-Dec-13 6-Feb-14 3-Apr-14 29-May-14 24-Jul-14 18-Sep-14 13-Nov-14 8-Jan-15 5-Mar-15 30-Apr-15 25-Jun-15 20-Aug-15 15-Oct-15 10-Dec-15 4-Feb-16 31-Mar-16 26-May-16 21-Jul-16 15-Sep-16 10-Nov-16 5-Jan-17 2-Mar-17 27-Apr-17 22-Jun-17 17-Aug-17 12-Oct-17 7-Dec-17 1-Feb-18 29-Mar-18 24-May-18 19-Jul-18 13-Sep-18 8-Nov-18 3-Jan-19 28-Feb-19 25-Apr-19 20-Jun-19 15-Aug-19 10-Oct-19 5-Dec-19

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Source: Oreninc

*includes Common & Flow-Through, ex Oil & Gas & Frack Sand

23 8.030 4.609 2.290 3.242 2.406 4.819 4.600 2.758 2.538

1.000

2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 2011 2012 2013 2014 2015 2016 2017 2018 2019 Millions

Total $s raised 2011 - 2019

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2020

2 Bought deals in week 1

2019

Bought deals only in week 8

Source: Oreninc

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Since May: 62 & 53

216 240 100 83 84 98 47 68 50 100 150 200 250 300 2016 2017 2018 2019 # of Brokered Deals # of Bought Deals

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Source: Oreninc *includes Common & Flow-Through, ex Oil & Gas & Frack Sand

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Jan to Apr: 307 May to today: 770

1440 1485 1181 1205 1008 1485 1397 1005 1077 200 400 600 800 1000 1200 1400 1600 2011 2012 2013 2014 2015 2016 2017 2018 2019

Total # of Deals 2011 - 2019

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Source: Oreninc *includes Common & Flow-Through, ex Oil & Gas & Frack Sand

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2019

595 deals

< C$ 1mn

$5.576.529,48 $3.103.549,54 $1.938.755,19 $2.690.223,25 $2.387.126,40 $3.245.099,94 $3.292.535,62 $2.743.946,51 $2.356.530,23 $- $1.000.000,00 $2.000.000,00 $3.000.000,00 $4.000.000,00 $5.000.000,00 $6.000.000,00 2011 2012 2013 2014 2015 2016 2017 2018 2019

Average Deal Size 2011 - 2019

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▪ Don’t over-allocate into one single stock ▪ Don’t chase stocks ▪ Avoid financings with FT price at or below current share price ▪ Start with prospectus financings, no 4-month hold period, often without a warrant

▪ Re-Allocate some capital out of ETFs into single stocks ▪ Participate in private placements, even as a US-investor ▪ Join a Stock Club ▪ Time to educate yourself and get a head start ▪ Newsletters ▪ Conferences ▪ Webinars ▪ Social Media

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FLO LOW – THROUGH

Financing form will remain extremely important moving forward

ACC CCESS TO FINANCIN INGS

Few remaining institutional investors will have easy access to deal flow, retail less so. Emergence of deal clubs. MID TI TIER PR PRODUCERS will start to invest into junior exploration companies

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@oreninc @oreninc @oreninc Youtube.com/

reninc

Visit our website at:

reninc.com

Kai Hoffmann CEO, Oreninc E: hoffmann@oreninc.com C: +1 604 687 3520 ext. 227 Subscribe to our newsletter at:

reninc.com/subscribe

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Source: PDAC

Application of various federal, provincial and mineral exploration tax credits

Share price premiums over

40%

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FLOW THROUGH PLUS PHILANTHROPY

Share price premiums up to

70%

Investor often gets discount to market Donor buys FT shares from Company Donor donates shares immediately to his favorite charity on the day of issuance Charity immediately sells to pre-determined investor at a pre- determined price

No costs to investor or company

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Still owns 13mn shares in Kirkland Lake Gold ~700mn CAD

45

companies

Since September 15 invested another 58mn CAD

Total investment of

$234.694.697,62

11%

f overall market

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Social media icons by Freepik from

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