2016 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS (TSX:LFX) RE-IMAGINING LEAD JUNE 9, 2016
FORWARD LOOKING STATEMENTS Certain statements contained in this Presentation are forward-looking transportation, the timing, need and ability to raise any additional financing and information within the meaning of applicable securities laws. All statements the risks relating to ramping up mining and milling throughput and operations, included herein (other than statements of historical facts) which address funding requirements, operations being placed on care and maintenance, the activities, events or developments that management anticipates will or may restart of mining and milling operations, matters relating to regulatory occur in the future are forward-looking statements, including statements as to compliance and approvals, shareholder dilution, matters relating to public the following: the timing and length of care and maintenance at the Paroo opinion, presence of a majority shareholder and Management Services Station mine or Burgin Mine and future sales, future targets and estimates for Agreements, matters related to the Esperance settlement and shipments production and sales, the receipt of required additional financing to restart and through the Port of Fremantle, regulatory proceedings and litigation and operate the Paroo Station mine, statements relating to the business and future general operating risks such as metal price volatility, lead carbonate activities of, and developments related to Lead FX and its subsidiaries, including concentrate treatment charges, exchange rates, the fact that the Company has the development of water, lead, silver and industrial minerals and aggregates a single producing mineral property, health and safety, environmental factors, assets, future tolling agreements, future business acquisitions, future lead mining risks, metallurgy, labour and employment regulations, government production, development of the Burgin Mine or quarrying on the property of regulations, insurance, dependence on key personnel, constraints on cash Chief Consolidated Mining Company, potential partnerships, opportunities to distribution from the Paroo Station mine, the nature of mineral exploration and sell excess real estate, the Company’s ability to meet its working capital needs development and common share price volatility. While we are not aware of any and debt repayments in the near term, the circumstances or timing and costs misstatements regarding any industry data presented in this Presentation, the surrounding a restart of the Paroo Station mine, forbearance by Enirgi Group lead and silver industries involves risks and uncertainties and is subject to Corporation pursuant to the Enirgi Group Bridging Facility, as amended, change based on various factors. Additional factors and considerations are discussed in the Company’s annual information form dated March 8, 2016, projections with respect to cash flows and working capital, the cost and timing for completion of capital projects necessary for any future operations, the elsewhere in other documents filed from time to time by Lead FX with Canadian Company’s ability to comply with the transportation and operating conditions for securities regulatory authorities. While Lead FX considers these assumptions to the Paroo Station mine, receipt of regulatory approvals, capital expenditures, be reasonable based on information currently available to it, they may prove to operating costs, cash costs, Mineral Resources, Mineral Reserves, life of mine, be incorrect. These factors may cause the actual results of the Company to recovery rates, grades and prices, business strategies and measures to differ materially from those discussed in the forward-looking statements, and implement such strategies, competitive strengths, estimated goals and plans there can be no assurance that the actual results or developments anticipated for Lead FX ’s future business operations, commodity prices outlook and other by management will be realized or, even if substantially realized, that they will such matters. Forward-looking statements are often, but not always, identified have the expected results on the Company. Undue importance should not be by the use of words such as ‘‘seek’’, ‘‘anticipate’’, ‘‘contemplate’’, ‘‘target’’, placed on forward looking information nor should reliance be placed upon this ‘‘believe’’, ‘‘plan’’, ‘‘estimate’’, ‘‘expect’’, and ‘‘intend’’ and statements that an information as of any other date. Except as required by law, while it may elect event or result ‘‘may’’, ‘‘will’’, ‘‘can’’, ‘‘should’’, ‘‘could’’ or ‘‘might’’ occur or be to, Lead FX is under no obligation and does not undertake to update this achieved and other similar expressions. These statements are based upon information at any particular time. certain reasonable factors, assumptions and analyses made by management in light of its experience and perception of historical trends, current conditions and All statements, opinions and views contained in this Presentation are solely expected future developments, as well as other factors management believes those of Lead FX and/or Rosslyn Hill Mining Pty Ltd. and do not constitute any are appropriate in the circumstances. However, whether actual results and written or public oral statement of the Sentient Group of Global Resource developments will conform with management’s expectations is subject to a Funds or any other third party. number of risks and uncertainties, including factors underlying management’s assumptions, such as, expected concentrate sales when in operations, the costs and other capital expenditures required to maintain operations and 6/9/2016 STRICTLY CONFIDENTIAL - NOT FOR FURTHER DISTRIBUTION 2
2016 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS BUSINESS OVERVIEW (TSX:LFX) RE-IMAGINING LEAD JUNE 9, 2016
2015-16 Achievements • Completed acquisition of GeoZone Exploration Limited • Delivers a potential pipeline of future projects • Rebranded company as LEAD FX • Restructured or retired debts • LEAD FX has no secured debts due until June 2017 • Reduced the outstanding debt to US$8.1M at 31 March 2016 (compared to US$15.6M in March 2015) • Maintained Paroo Station Mine in a restart-ready condition with a core of key experienced staff • Commenced dialogue with Regulators to deliver life-of-mine access to concentrate transport route and orebody development 6/9/2016 4 STRICTLY CONFIDENTIAL - NOT FOR FURTHER DISTRIBUTION TSX:LFX
Strategy • Focus on LEAD and SILVER projects • Focus on early CASH GENERATION by using our skills and experience to DEVELOP and OPERATE responsible cost-efficient mining operations • Accumulate lead and silver projects in stable jurisdictions which are able to be in PRODUCTION by 2020 Approach Use our expertise and resources to responsibly manage: • Our Employees • Our Environment, and • Our Economic Outcomes 6/9/2016 5 STRICTLY CONFIDENTIAL - NOT FOR FURTHER DISTRIBUTION TSX:LFX
LEADFX Overview • 100% ownership of the Paroo Station lead carbonate mine in Western Australia • 1.4M tpa capacity lead concentrator placed on care and maintenance in early 2015 • 6.5M tonnes of Proven and Probable Reserves at 7% Pb * • 32M tonnes of Measured and Indicated Resources (inclusive) at 4.4% Pb * • Restart ready with robust economics at today’s lead prices and Australian dollar • Recently refinanced debt-package and deferred payments to June 2017 • 83% ownership in Chief Consolidated Mining, a lead-silver project located in Utah advancing to pre-feasibility stage *As at December 31, 2015. The Mineral Reserves have been prepared and verified by Mr. Andrew Robb, a qualified person currently employed by an affiliate of Lead FX . See Lead FX’s annual information form dated March 8, 2016 for further details. 6/9/2016 6 STRICTLY CONFIDENTIAL - NOT FOR FURTHER DISTRIBUTION TSX:LFX
Why Focus on Lead? • In the 1980’s and 90’s the mantra “Lead is dead” was a common catch phrase around the resources sector and, as a consequence, little was invested in lead exploration or mine development. A quick review of electric vehicles confirms that “ Lead is NOT dead ” as Tesla, Nissan and others include a lead-acid battery in their latest EVs • Due to decades of underinvestment in exploration, the mining sector is not prepared to meet the demand. There are limited new mine opportunities to replace the rapidly depleting resources • Many lead-silver mines closed in the period from 1970-1990 due to low metal prices and, in some jurisdictions, increasing regulatory burdens. Many of these dormant mines are now owned by under- capitalized companies • Lead is expected to be in a supply / demand balance to deficit in 2017 as demand rebounds and a portion of current supply is taken off-line. Lead price forecasts for 2017 from Wood Mackenzie and Metal Bulletin Research are $2,300/t and $2,005/t, respectively, or $1.04/lb and $0.91/lb 450,000 $2.00 $1.80 400,000 $1.60 350,000 $1.40 300,000 $1.20 250,000 Lead Price (US$/lb) $1.00 200,000 LME Lead Stock $0.80 150,000 $0.60 100,000 $0.40 50,000 $0.20 $0.00 0 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 1 Source: UBS Global I/O: Miner’s Price Review 6/9/2016 7 STRICTLY CONFIDENTIAL - NOT FOR FURTHER DISTRIBUTION TSX:LFX
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