AGC:TSX-V AGCBF:OTCMKTS A World Class Gold Deposit in Brazil Corporate Presentation
Important Notice Important Statements These presentation materials (“the Presentation Materials”) are being supplied to you for information purposes only on Amarillo Gold Corporation (the “Company”). These Presentation Materials have been prepared by and are the sole responsibility of the Company. The Company has taken all reasonable care to ensure that the facts stated herein are true to the best of its knowledge, information and belief. These Presentation Materials are being distributed only to and are directed at (a) persons who have professional experience in matters relating to investments being investment professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the “FPO”), (b) high net worth companies, unincorporated associations and other bodies within the meaning of Article 49 of the FPO or (c) persons to whom it may otherwise lawfully be communicated (together “Relevant Persons”). Any person who is not a Relevant Person or who does not have professional experience in the matters relating to investments should not act or rely on this document or any of its contents. These Presentation Materials do not constitute, or form part of, a prospectus relating to the Company, nor do they constitute or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in the Company or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis of or be relied on in any connection with any contract. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this document or its contents otherwise in connection therewith. Prospective investors are encouraged to obtain separate and independent verification of information and opinions contained in the Presentation Materials as part of their own due diligence. By accepting these Presentation Materials, the Recipient agrees that the information contained herein or sent herewith or made available is for information purposes only. Without prejudice to the foregoing, neither the Company, nor its advisers nor its representatives accept liability whatsoever for any loss howsoever arising, directly or indirectly, from use of this document or its contents or otherwise arising in connection therewith. The distribution of these Presentation Materials in certain jurisdictions may be restricted by law and persons into whose possession these Presentation Materials come should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdictions. Some statements contained in these Presentation Materials or in documents referred to therein are or may be forward-looking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors. Past performance of the Company or its shares cannot be relied on as a guide to future performance. Any forward-looking information contained in these Presentation Materials has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary. The Qualified Persons for Amarillo are Frank Baker, M. IOM3 and MAusIMM., Mr.Mike Mutchler, MAusiMM and Buddy Doyle, MAusIMM. www.amarillogold.com 2
Management Team Rolly Uloth Mr. Uloth has over 20 years as a seasoned mining executive, as well as a business professional with over 45 years of Executive Chairman experience. Rolly was President and Director of River Gold Mines in 2006. Upon the completion of the merger between Wesdome Gold Mines and Eagle River Mines, Mr. Uloth became Chairman and then CEO from 2007 - 2010, where he led Wesdome through several of its most profitable years and reopened the Kiena Mine. In 2013, Mr. Uloth rejoined Wesdome and successfully restructured the Company and still remains on the Board. Mike Mutchler Mr. Mutchler has over 30 years of underground and open-pit mining and project development experience, having held President and Chief various positions ranging from Laborer to Vice President. He was previously the COO for Rainy River Resources where he Executive Officer was responsible for the engineering studies for an 8M oz. gold project in Ontario. Mike was also the COO for Largo Resources where he led the construction and commissioning of the Maracas Vanadium Mine and Mill in Bahia, Brazil. Mike also worked on an expansion project for the Paracatu Mine in Minas Geras, Brazil when he was a VP of Project Development for Kinross Gold. Mr. Mutchler has a B.Sc. Degree in Mining Engineering from South Dakota School of Mines, an MBA from Webster University, an Executive Juris Doctorate Degree from Concord School of Law, and a Chartered Director Certificate from the Directors College at McMaster University. Hemdat Sawh Mr. Sawh is a CPA, and holds an MBA, a BSc degree in Geology and a graduate diploma in Geology. Mr. Sawh has over Chief Financial Officer 16 years of experience at Grant Thornton LLP, where he acted as lead supervisor for auditing teams. Mr. Sawh has over 12 years’ experience serving as CFO of Wesdome Gold Mines, Scorpio Mining, Crystallex and Goldbelt Resources, all TSX listed mining companies with assets in Canada, Mexico, Venezuela and Burkina Faso, respectively. Arao Portugal Mr Portugal was instrumental in securing the main Preliminary License (SEIA equivalent) for Mara Rosa in 2016. In 2003 to Director of Strategy 2014, Mr. Portugal held various roles including Country Manager for Yamana. From 1975 to 2003, sourcing and raw materials specialist for CVRD (now Vale). Luis Carlos F. da Silva Mr. da Silva has over 20 years exploration experience in Brazil managing several campaigns. He was also responsible for General Manager Brazil drilling off several of Jaguar Mining’s Brazilian gold deposits. Frank Baker Mr. Baker is a Graduate of Sheffield University with Masters in Metallurgy. Frank has over 40 years of experience in the Project Manager, mining industry. Mr Baker has had the success of designing, building and commissioning five gold plants, including two in Mara Rosa Brazil. 33 2 www.amarillogold.com 3
Corporate Information Capital Structure Major Shareholders Shares Outstanding 104.1 million Board & Management 15% Warrants ($0.25) 9.9 million Institutions 42% Options ($0.28) 7.5 million High Net Worth 23% Market Cap. @ $0.31 * $26 million Retail 20% Gold-linked Loan $10 million * As at Jan 5,2018 www.amarillogold.com 4
Key Investment Highlights Investment Highlights ● Mara Rosa Project ○ 35% A/T IRR, 2.2 yr payback, NPV $178M USD @ $1200 gold ○ Trading at ~0.12x P/NAV vs. peers of ~.41X P/NAV ○ Environmental & social permit granted – backed overwhelming by community support ○ Growing reserves and mine life by infill drilling ○ Growing resources by drilling 12 km Au-in-soil anomaly and down dip Posse deposit ● Lavras do Sul Project: Potential Game Changer /Strong Exploration Upside ○ Drilling highlight at Butia: 120m at 3.23 g/t; 192M at 1.95 g/t 100 km 2 intrusion: Initial resource 215,000 oz. indicated and 308,000 oz. inferred ○ ○ Strong Au-in-soil anomalies over extensive areas allows further attention to increase. www.amarillogold.com 5
Mara Rosa Project World Class Gold Deposit in the Mining Friendly State of Goias www.amarillogold.com 7
Mara Rosa Robust Economics Mara Rosa Project Robust Economics * IRR *Payback *NPV(5%) 2.2 Years 35% US$ 178M April 2017 PFS (US$1,200 Gold) Upfront Capex $148M USD Sustaining Capex $13.5M USD Years 1-4 Average Production 140,000 Ounces Average Annual Production 112,000 Ounces Final Pit Design Initial Mine Life 8 Years Open at depth and along strike Operating Cost per Ounce $545 USD AISC per Ounce $630 USD Mineable Reserve 997,536 Ounces * Post-tax www.amarillogold.com 8
Resource and Reserves Notes: 1. Posse Deposit Resource @ 0.35 g/t cut-off 2. Source: Keith Whitehouse Member of the AUSMIM Qualified person Australian Exploration Field Services; 43-101 Technical Report: prepared by SRK Consulting, April 2017 titled “2017 Updated Pre-Feasibility Study Posse Mine Project-Mara Rosa GO” Notes: 1. SRK applied a 0.38 g/t Au cut-off to the block model 2. Dilution: 3% mining & 3% handling 3. All Mineral Reserves prepared by SRK have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (“CIM”) definitions, as required under National Instrument 43-101 (“NI43-101”) www.amarillogold.com 9
Low CAPEX & Strong Margins Capital Allocation (USD) Mine Pre-Strip $15M Plant, Equipment & $57M Facilities Tailings Dam $9M Gold Margin Gold Price $570/oz Infrastructure & Buildings $13M G&A + Royalties Other & Non-tangibles $35M $6.35/tonne *AISC $630/oz Processing Contingencies $11M US$10.27/tonne Working Capital $8M Mining US$12.93/tonne Total Upfront Capex $148M * AISC = Opex + Royalties + Transportation + Refining + Sustaining Capital + G&A www.amarillogold.com 10
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