Building A Mexican Gold-Focused Company TSXV:MAI August 2017 - PowerPoint PPT Presentation

Building A Mexican Gold-Focused Company TSXV:MAI August 2017

Disclaimer This presentation contains certain “forward - looking statements”. All statements, other than statements of historical fact, that address activities, events or developments that Minera Alamos believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward- looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend” and statements that an event or result “may”, “will”, “can”, “should”, “could”, or “might” occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of Minera Alamos based on information currently available to Minera Alamos. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by Minera Alamos with securities regulatory authorities, that may cause the actual results of Minera Alamos to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Minera Alamos. Minera Alamos expressly disclaims any obligation to update or revise any such forward-looking statements. This presentation is not for distribution to United State newswire services and not for dissemination in the United States. The securities discussed herein have not been and will not be registered under the United States Securities Act of 1933 (the “US Securities Act”), as amended, or the securities laws of an y state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available. The Preliminary Economic Assessments (PEA) discussed in this presentation are preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Economic studies will need to be completed prior to accurate guidance and projections can be provided. Darren Koningen, P. Eng., President of Minera Alamos is the Qualified Person (within the meaning of National Instrument 43-101) responsible for the information contained in this presentation. To the best of knowledge, information and belief of Minera Alamos, there is no new material scientific or technical information that would make the disclosure of the mineral resources set out in the this presentation that is inaccurate or misleading. For further information on the technical data provided in this presentation, including the key assumptions underlying the mineral resource herein, data verification, quality assurance program, quality control measures applied, risks and uncertainties please refer to the SEDAR filings of Minera Alamos and Argonaut Gold Inc. as listed below: • NI 43- 101 Technical Report titled “Los Verdes Cu/Mo Project Preliminary Economic Assessment” by Darren Koningen, P.Eng., dated May 23, 2012 • NI 43- 101 Technical Report titled “La Fortuna Project, Durango Mexico, Updated Technical Report Re -Issued to Minera Alamos In c.” by Toren K. Olson, P.Geo., dated May 30, 2016. • Press release dated October 27, 2011 • Press release dated April 28, 2015 Please note that all financial figures are in Canadian dollars, unless otherwise stated. 2

St Stra rategic egic Par artner nership ship wit ith Osi sisk sko o Go Gold ld Royalt alties ies 3

Strategic Partnership with Osisko Summary of Agreements Investm estmen ent Agree eemen ment • Privat ate e Placem emen ent: t: Osisko Gold Royalties Ltd. (“Osisko”) to acquire a 19.9% pro forma interest in MAI ▪ Private placement of 22.0M common shares at $0.15 per share • Partic icipati ation on Right (1) : Osisko has right to participate in future equity financings up to its pro rata ownership pre-financing • Board d Seats (1) : : Osisko can nominate up to two members to the MAI Board ▪ Ruben Padilla appointed immediately Royalt alty Optio ion Agree eemen ment • La Fortuna a NSR: : Osisko has the option to purchase up to a 4.0% NSR on La Fortuna for cash proceeds of $9M upon a construction decision • Right of First Refusal (“ROFR”) (1) : : Osisko has a ROFR on any future royalties and streams on MAI’s properties • Addit ditional ional Right hts: Osisko shall have the right to participate in half of any buybacks of existing royalties on La Fortuna Concurren ent Priv ivat ate e Plac acem emen ent MAI to complete a best efforts private placement of up to $3.5M at $0.15 per share (led by Haywood Securities Inc.) • • Osisko has right to maintain their pro rata 19.9% ownership 4 (1) Subject to Osisko holding a minimum of 10% of MAI’s common shares outstanding

St Stra rategic egic Partn tner ership hip wit ith Osisk isko In Summary Recent t Privat ate Investme stment nt Roya yalty ty A Placement nt Agreement nt Agreement nt b 19.9 .9% % inves estme tment nt by 4.0% % NSR on La $5.4 .4 M at $0.15/sh Osisko Fortun una $3.3 .3M M cash inflo low to to $9.0 .0M M cash inflo low to to MAI MAI $17.7 .7M in in cash to fund d development and d exploration in in Mexic ico o 5

Strategic Partnership with Osisko A Platform for Growth Impr mproved Shar areholde holder Proven Team eam De De-risk isked ed Proje ject Base se A ~$13M total investment by Backing by Osisko significantly La Fortuna will be operated by improves access to capital Osisko significantly de-risks the MAI’s proven mine building team markets and future opportunities funding risks of La Fortuna Boar ard d Stren ength th Near ar-ter erm m Productio oduction Path to Future e Growth The funding allows MAI to Osisko and MAI will continue to Addition of Osisko nominees execute on near-term production look for future growth increases the strength of the MAI plan Board opportunities 6

Pro Forma Capital Structure Capital italiza izatio ion Curren rent t Capit pital l Structure cture Share are Pric ice e and d Volu lume (Last 12 Month ths) Basi sic c (millions) 146.5 Warrants (average strike price of $0.12) 60.5 $0.30 2.50 Options (average strike price of $0.16) 7.6 $0.25 2.00 FD Shares res Outsta tstanding 214.6 .6 Share Price ($/share) $0.20 Volume (M) 1.50 $0.15 Sharehold areholder er Profile ile 1.00 $0.10 0.50 $0.05 $0.00 0.00 May-16 Aug-16 Nov-16 Feb-17 7

Management Team Led by Capital Markets-Focused and Technical Team Managem agement +20 years of engineering/metallurgical experience > Proven Team of Mine- Led the development of Castle Gold’s project profile to the > Darren n Koninge ngen ultimate acquisition by Argonaut Gold Building Experts Designed, constructed, commissioned and operated two gold > President, CEO and heap leach operations (El Sastre in Guatemala and El Castillo in Director • The management team Mexico) under budget and on time was the founding technical team of Castle Gold Inc. +20 years of experience in financial reporting and in senior > Chris Chadd dder management roles in the mining sector • Oversaw Castle Gold from Diversified mining sector experience; served in senior executive VP Project Management > developer status to the roles at companies in various stages of the mining cycle & Financial Control Chartered Professional Accountant eventual sale to Argonaut > Gold in 2009 for $130M +30 years of mine management in Mexico; widely recognized as > one of the top mining professionals in Mexico • Accomplishments include: Managed the mine planning, pads and plant expansion of El > Federico o Alvarez Castillo for Argonaut as Operations Manager ✓ Successfully designed, built, Exceptional track record of achievement as a senior operations VP Project Development > commissioned and manager at multiple operations, including Nukay gold mines, operated the El Sastre Piedras Negras coal mine and Minera Autlan manganese (Guatemala) and El Castillo operations (Mexico) mines ✓ Turned around the Lluvia de +20 years experience as a mining and exploration geologist > Oro-Jojoba mine at NWM Miguel Cardon ona Led the 3x increase of El Castillo’s gold resource for Castle Gold > Mining Corp and from 400koz to 1.2Moz prior to in 2009 prior to the sale VP Exploration successfully sold it in 2015 Key member of teams involved with discovery of Los Filos > 8