CORPORATE PRE SE NTATION www.candelariamining.com MARCH 2017 - PowerPoint PPT Presentation

1 MINING 2016 CORPORATE PRE SE NTATION www.candelariamining.com MARCH 2017 TSXV : CAND

CAUTIONARY STATE ME NT Forw ard- Looking Statem ents: This presentation contains forward-looking information about Candelaria within the meaning of the Securities Act (British Columbia). Forward-looking statements relate to future events or future performance and reflect Candelaria’s expectations regarding the future growth, results of operations, business prospects and opportunities of Candelaria. These statements reflect Candelaria’s current internal projections, expectations or beliefs and are based on information currently available to Candelaria. I n some cases forward-looking information can be identified by terminology such as “may”, “will”, “should”, “expect”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “projects”, “potential”, “scheduled”, “forecast”, “budget” or the negative of those terms or other comparable terminology. Many of these assumptions are based on factors and events that are not within the control of Candelaria and there is no assurance they will prove to be correct. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to materially differ from those reflected in the forward-looking statements, and are developed based on assumptions about such risks, uncertainties and other factors including, without limitation: fluctuations in precious and base metal prices; inherent hazards and risks associated with mining operations; inherent uncertainties associated with mineral exploration and development activities; uncertainties inherent in the estimation of mineral reserves and/ or resources and precious metal recoveries; uncertainties related to actual capital costs, operating costs and expenditures, production schedules and economic returns from Candelaria’s projects; uncertainties related to current global financial conditions; uncertainties related to the availability of future financing necessary to undertake exploration, development, mining and processing activities on Candelaria’s properties; risks related to the integration of businesses and assets acquired by Candelaria; uncertainties related to the competitiveness of the mining industry; risks associated with Candelaria being subject to government regulation, including changes in law and regulation; risks associated with Candelaria’s need for governmental licenses and permits; risks associated with Candelaria being subject to extensive environmental laws and regulations, including a change in regulation; risks that Candelaria’s title to its property could be challenged; political and country risk; risk of water shortages and risks associated with competition for water; Candelaria’s need to attract and retain qualified personnel; increases in off-site transportation and concentrate processing costs; risks related to the need for reclamation activities on Candelaria’s properties, including the nature of reclamation required and uncertainty of costs estimates related thereto; risks associated with potential conflicts of interest; risks associated with potential labour disputes; and risks associated with potential blockades of mining operations as well as “Risks and Uncertainties” included in the Annual I nformation Form and MD&A for Candelaria available at www.sedar.com. Forward- looking information is not a guarantee of future performance and actual results and future events could differ materially from those discussed in the forward-looking information. All of the forward-looking information contained in this presentation is qualified by these cautionary statements. Although Candelaria believes that the forward-looking information contained in this presentation is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. Candelaria expressly disclaims any intention or obligation to update or revise any forward-looking information contained in this presentation, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. The information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration. Prelim inary Econom ic Assessm ent: The PEA, which is available on SEDAR at www.SEDAR.com, is entitled Preliminary Economic Assessment Caballo Blanco Gold Heap Leach, Veracruz, Mexico, with a re-issue date of October 31, 2016 and an effective date of May 7, 2012. The PEA is preliminary in nature and should not be considered to be a pre-feasibility study or feasibility study, as the economics and technical viability of the Project have not been demonstrated at this time. The PEA remains a preliminary analysis that is not sufficient to enable Mineral Resources to be categorized as Mineral Reserves. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into Mineral Reserves. Furthermore, there is no certainty that the results of the PEA will be realized. Cautionary note to U.S. investors concerning m easured, indicated or inferred resources: We advise U.S. investors that while the terms “measured resources”, “indicated resources” and “inferred resources” are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize these terms and these terms do not comply with SEC Guide 7 requirements. Investors are cautioned not to assume that any part or all of the material in these categories will be converted into reserves. It should not be assumed that any part of an inferred mineral resource will ever be upgraded to a higher category. Qualified Person: Stephen Maynard, Certified Professional Geologist, a consultant to Candelaria and a Qualified Person under NI 43-101, has approved the content of this presentation.

2 MINING 2017 INTRO/ BACKGROUND INTRODUCTION BACKGROUND March 2016 Candelaria was formed via a reverse take- Focused on achieving an annual gold production of over of 60% of Minera Apolo S.A de C.V (“Apolo”). 100,000+ oz by 2019.* Apolo holds a portfolio of 5 m ining projects including the gold & silver Pinos District and the polymetallic CRD Permitting & developing two projects. Veracruz, Mex: deposit KM66. Advanced-stage Caballo Blanco open- pit, heap leach gold. Zacatecas, Mex: Pinos District underground July 2016 Candelaria acquired Caballo Blanco from epitherm al gold and silver. Timmins Gold (NYSE:TGD). Indicated Resource: 575,000 ozAu. Mining and finance management team w ith a (28.89 million tonnes @ 0.62 g/t Au & 2.32 g/t Ag) specialization in mining throughout Mexico. Inferred Resource: 419,000 oz Au. (24.02 million tonnes @ 0.54 g/t Au & 2.50 g/t Ag) Note 1: There are no known mineral reserves on any of Candelaria’s mineral properties and as a result the Advancing Caballo Blanco to a prefeasibility study economic viability of the properties has not been demonstrated. There are risks associated with our ability to achieve production including those risks described on Page 2. and completing a mine plan for Pinos District. Note 2: Mineral resources that are not mineral reserves do not have demonstrated economic viability.

3 MINING 2017 PROJE CTLOCATIONS Caballo Blanco –Veracruz,Mexico Advanced stage open-pit, heap leach gold project with estimated annual production of ~100,000 oz Au. KM66 Pinos District – Zacatecas, Mexico Pinos High-grade historic gold district; advanced-stage underground Caballo Blanco epitherm al vein system. KM6 6 – Durango, Mexico Excellent location within Mexican Carbonate Replacem ent Deposit (CRD) belt with 40% of Mexican silver production (Major low cost mines of Minera Frisco, Peñoles, Grupo México and Goldcorp).

CABALLO BLANCO

MINING 2017 5 CABALLO BLANCO – PROJE CTOVE RVIE W Strong OperationalPotential*  0 40 Simple open pit/ heap leach operation Gulf of Mexico kilometers  Currently undergoing environmental permitting process, having already filed an Environmental I mpact Statement.  Low projected initial capex of $85m.  Projected annual average LOM production of over 90,000 oz Au is foundation for Caballo Blanco  mid-tier production profile. Property Xalapa  18,000+ ha land package provides significant exploration upside in underexplored region. 18,000+ Has Excellent I nfrastructure Cardel Unit ed States Puebla Veracruz  Located 65km NW of Veracruz, Mexico. Paved roads with power and water on-site.  Skilled labor force from neighboring communities. Veracruz Gulf of Mexico Candelaria Value-add Mexico City  Exceptional permitting, construction and operational experience.  Com m itm ent to CSR and strong com m unity 0 500 relations. Central Am erica kilometers * There are no known mineral reserves on any of Candelaria’s mineral properties and as a result the economic viability of the properties has not been demonstrated. There are risks associated with our ability to achieve production including those risks described on Page 2.