ACQUISITION OF FOSTERVILLE JULY 2020 NYSE & TSXV:MTA | WWW.METALLAROYALTY.COM
FORWARD LOOKING STATEMENTS This presentation contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual actions, events or results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which Metalla will purchase gold and other metals or from which it will receive royalty payments and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine construction and operations, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; problems inherent to the marketability of gold and other metals; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; industry conditions, including fluctuations in the price of the primary commodities mined at such operations, fluctuations in foreign exchange rates and fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects Metalla; stock market volatility; regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties. Metalla undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. Metalla Royalty & Streaming | July 2020 2
THE KEY POINTS JUNIOR ROYALTY COMPANY DELIVERING GROWTH ü Experienced Management Team with Proven, Relevant and Global Track Record ü Most Active Royalty Company as Measured by Material Acquisitions ü Industry-Leading Growth With One Of The Most Robust Pipelines ü Greatest Exposure to Silver of Any Publicly Listed Royalty Company ü Trades at a Discount to Peers Despite Recent Outperformance ü Focused on Acquiring Royalties on Projects Operated by Large Producers Metalla Royalty & Streaming | July 2020 3
THE BUSINESS STRATEGY SECONDARY MARKET OF ROYALTIES ON HIGH-QUALITY OPERATIONS IS THE KEY TO OUR SUCCESS BENEFITS FOR METALLA BENEFITS FOR 3RD PARTY Partner with strong counter- Monetize royalty asset by • • parties with operational sale to Metalla for cash experience and strong and shares balance sheets Maintain meaningful • Reduced cost in financing exposure to royalty through • SHARE ROYALTY acquisitions vs. equity stake in Metalla equity CONSIDERATION Tighter capital structure Diversify risk through • • when royalty owners participation in Metalla’s maintain a shareholding in portfolio Metalla Benefit through Metalla's • High quality royalties give dividend distribution policy • ROYALTY OWNER leverage to resource Share in success of • upgrades at no cost Metalla's business strategy Ability to progressively build • Benefit from significant • a project pipeline with increase in liquidity and sustainable cash flow price discovery Metalla Royalty & Streaming | July 2020 4
ACQUISITION OF FOSTERVILLE ROYALTY PROVIDING MEANINGFUL NEAR-TERM CASH FLOW WITH A TIER-ONE OPERATOR IN A WORLD-CLASS DISTRICT TRANSACTION OVERVIEW Metalla will acquire a 2.5% NSR royalty on the • extensions to the north and south of Kirkland Lake Gold’s Fosterville Mine for A$6M, A$2 payable in cash and the remaining $4M payable in shares of MTA Fosterville is the largest gold mine in the state of • Victoria, it produced 619Koz of gold at a cash cost of US$119/Oz in 2019 (1) Southern royalty portion is along the Fosterville • Fault Zone and on trend with the Harrier and Swan deposits Harrier mineralization is expected to continue • onto the Metalla royalty claims which is prospective for high-grade visible gold mineralization at depth similar to Swan Zone which currently boasts a reserve grade of over one ounce per tonne of gold Harrier is the next mining front with mining set to • begin once ventilation upgrades and development are completed (1) See Kirkland lake Gold Financial Reports filed on SEDAR Metalla Royalty & Streaming | July 2020 5
FOSTERVILLE OVERVIEW “We also continue to drill the anticline offset target at Harrier South from underground drill platforms and advance our LODE program on district targets. Drilling at Harrier South remains at an early stage given the time required to extend the existing exploration drift and poor ground conditions encountered in some areas. The fact that we have already intersected quartz veins with VG similar in texture to those found in the Swan Zone is promising. We have not yet seen the ultra-high grades you get at Swan, but it is early days and we remain optimistic. Harrier South will continue to be a high-priority target with extensive drilling to continue into, and throughout, 2020.” – Anthony Makuch Dec 3, 2019 (1) Metalla Royalty & Streaming | July 2020 6
FOSTERVILLE OVERVIEW Operator Kirkland Lake Gold • Bendigo, Australia • Location Production and Cash Costs at Fosterville Since Kirkland Acquired the Mine and 2020 Guidance (midpoint) 140,000 ha land package (~90,400 ha 700 $600 • royalty coverage). 2,850 ha mining lease 600 $500 619 Gold Production (Koz) (541ha royalty coverage) 600 Cash Costs (US$/Oz) Land Package 500 Kirkland Lake Gold is participating in a $400 • 400 tender process to acquire more land held $300 under the royalty grounds 300 356 $200 Fosterville-type orogenic gold deposit 200 264 • Metamorphosed Interbedded turbidite • $100 100 sequences 0 $0 Mineralization controlled by late brittle • Mineralization 2017 2018 2019 2020 faulting High-grade visible gold occurrences begin • below 800m at Phoenix, Harrier & Robbins Hill Underground, decline access • Mining Access from two portals, Falcon and • Ellesmere open pits BIOX, CIL & Gravity Circuit • Processing 2,275 tpd mill capacity (~60% utilization • rate in 2019) 590 - 610Koz Au (1) • 2020 Guidance $130 - $150 Cash Cost (1) • See Kirkland Lake Gold Annual Information Form December 31, 2019 Development and exploration is ongoing • Development at depth to find and extend high-grade mineralization Metalla Royalty & Streaming | July 2020 7
THE TRACK RECORD Acquires 2.5% on extensions of Acquires two Kirkland’s Fosterville royalties on $10.00 Mine Nevada Gold Mines Cortez 50 Trend 18 $96M $9.00 Announces Royalties/Streams application to Transactions Capital Deployed Acquired list on the $8.00 NYSE American $7.00 Acquires royalty on St Barbara $6.00 Fifteen Mile Announces New Acquires Stream Luika Silver Valgold for Stream and $4M royalty on Acquires royalty financing Osisko / O3’s $5.00 on Pan Garrison Consolidates American’s Changes Hoyle Pond COSE name to Extension Metalla; Royalty $4.00 appoints Brett Acquires gold Heath as royalty on President Announces Teck / $3.00 Acquisition on Newmont’s Coeur’s Wharf NUEVAUNIÓN Project Mine and Acquires royalty US$21M $2.00 portfolio from Alamos Secondary Brokered Gold; Announces offering of Acquires Acquires offering $12M convertible Coeur’s shares royalty on royalty and upsized to debenture from $1.00 Agnico streaming $6.8M due Beedie Capital Eagle’s portfolio from to strong Acquires Timmins royalties Santa Coeur Mining demand and closes oversubscribed Gertrudis financing for $2.3M $0.00 Sep 16 Nov 16 Jan 17 Mar 17 May 17 Jul 17 Sep 17 Nov 17 Jan 18 Mar 18 May 18 Jul 18 Sep 18 Nov 18 Jan 19 Mar 19 May 19 Jul 19 Sep 19 Nov 19 Jan 20 Mar 20 May 20 Jul 20 Metalla Royalty & Streaming | July 2020 8
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