TSX.V : SIR Metals Investor Forum: November 12 th & 13 th , 2016 Corporate Presentation
Forward Looking Statement THIS MANAGEMENT PRESENTATION (THE "PRESENTATION") WAS PREPARED AS A SUMMARY OVERVIEW ONLY OF THE CURRENT AFFAIRS OF SERENGETI RESOURCES INC.(”SERENGETI" OR THE "COMPANY") AND WAS NOT PREPARED FOR THE PURPOSE OF ASSISTING PROSPECTIVE INVESTORS IN MAKING A DECISION TO INVEST IN SERENGETI. SERENGETI DOES NOT MAKE ANY REPRESENTATION AS TO THE COMPLETENESS, TRUTH OR ACCURACY OF THE INFORMATION CONTAINED IN THIS PRESENTATION. THE RECIPIENT IS CAUTIONED, THEREFORE, THAT IT IS INAPPROPRIATE TO USE THIS PRESENTATION, OR ANY PORTION THEREOF, TO ASSIST IN MAKING A DECISION TO INVEST IN FORMATION.. CONFIDENTIALITY This Presentation is confidential and the contents are not to be reproduced or distributed to the public or the press. Securities legislation in all provinces and territories prohibits such unauthorized distribution of information. Each recipient of the information contained in this Presentation will treat such information in a confidential manner and will not, directly or indirectly, disclose or permit its affiliates or representatives to disclose such information to any other person or reproduce this Presentation in whole or in part, without the prior written consent of Formation. PRELIMINARY ECONOMIC ASSESSMENT (“PEA) The Company cautions that this PEA is preliminary in nature, and is based on technical and economic assumptions which will be evaluated in further studies. The PEA is based on the (as at March 4 th , 2013) estimated resource model on the Kwanika Property, which consists of material in both the indicated and inferred classifications. Inferred mineral resources are considered too speculative geologically to have technical and economic considerations applied to them. The current basis of project information is not sufficient to convert the mineral resources to mineral reserves, and mineral resources that are not mineral reserves do not have demonstrated economic viability. Accordingly, there can be no certainty that the results estimated in the PEA will be realized. FORWARD-LOOKING INFORMATION This presentation contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Statements in this presentation pertaining to projected revenues and cash flows, quantity and grade of mineralized materials, estimated mineral prices are forward-looking statements. These forward-looking statements are based on assumptions and address future events and conditions and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Many of the assumptions respecting projected revenue, cash flow and quantity of mineralized materials will be set out in detail in the PEA. Such projections are and will inevitably always be dependent on assumptions about future mineral prices and development costs which will be subject to fluctuation due to global and local economic conditions. Further information regarding risks and uncertainties which may cause results to differ from those contained in forward-looking statements are included in filings by the Company with securities regulatory authorities and are available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Quality Assurance/Quality Control The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the Company's qualified person, David W. Moore, P. Geo., President and CEO of Serengeti Resources Inc. www.serengetiresources.com | TSX.V: SIR 2
Serengeti Corporate Snapshot Shares Outstanding 71.3 M Warrants 14.1 M Options 7.4 M Fully Diluted (As of Oct 28th, 2016) 92.8 M Management, Insiders & Founders ~25% ownership Treasury* ~$1.2M Average Trading Volume (90day) 272,000 Share Price (SIR.V Oct 28th, 2016) $0.18 Market Capitalization $ ~12.8 M Management Board of Directors David Moore, P.Geo., President, CEO & Director George Tikkanen, B.Eng. Sheri Rempel, Chief Financial Officer Ian Brown, CA Pam White, Corporate Secretary Lewis Lawrick, B.Comm. Michael Thicke, P. Geo. Financial information above is from the Company’s August 31 st , 2016 Financial Statements and are expressed in Canadian Dollars. To read the full financial statements, please visit the Company’s website at www.serengetiresources.com www.serengetiresources.com | TSX.V: SIR 3
Copper Waterton Global Resource Fund Ø Raises US$725 million for gold & copper deals Financial Post June 14 th , 2016 BHPB - Real Spark for Cu Demand = Renewable Energy Ø Lots of Cu needed for wind & solar power Ø By 2040, electricity from renewable will double to 46% Ø BHPB estimates a 4 million ton deficit by 2023 Bloomberg May 26 th , 2016 Copper Price Ø Sanford C. Berstein & Co. “The conclusion is unequivocal to us: The only way by which future output can be secured is via an appreciation in the commodity prices.” Globe & Mail June 29 th , 2016 www.serengetiresources.com | TSX.V: SIR 4
Serengeti Opportunity PROVEN TEAM PROLIFIC PROSPECTIVE PORTFOLIO DISTRICT KWANIKA STRATEGIC Cu-Au PROJECT PARTNER www.serengetiresources.com | TSX.V: SIR 5
Proven District ◆ Resurgence in BC Cu-Au mine development (e.g. New Afton, Mt. Milligan, Red Chris) ◆ Recent deep drilling identified extensive high grade zones (>1% CuEq) in a number of BC porphyry systems (e.g. KSM, Red Chris, New Afton) • Low risk, politically stable jurisdiction • Attractive tax & mining royalty regime (e.g. 32-35% combined rate) • Up to 30% government refund on qualifying exploration expenditures • Amongst lowest power costs in the world • Good infrastructure and favourable location with respect to Pacific Rim markets www.serengetiresources.com | TSX.V: SIR 6
Kwanika Opportunity 1. High-grade deposit 2. Resource re-evaluation Ø Potential understatement of Cu, Au grade 3. Room to Grow Ø Large deep geophysical target identified 4. Market Cap - $12.8 Million Ø ~ $20 Million put into the ground Ø Daewoo Minerals Canada (DMC) to spend up to $8.2 M to earn 35% *Disclaimer: Mineral resources that are not mineral reserves do not have demonstrated economic viability www.serengetiresources.com | TSX.V: SIR 7
Daewoo (DMC) Joint Venture • DMC STAGED EARN-IN* Ø Year 1: Initial 5%, $1.2M ($400,000 WC, $800,000 project expenditure – PAID) Ø Year 2 & 3: Additional 30%, $7M expenditure PROPERTIES INCLUDED: Kwanika, Smoke-Kwanika East, Germansen, Valleau, Rottacker • OTHER TERMS: Ø SIR - operator plus 10% management fee (until 50% ownership) Ø SIR - 1% NSR if diluted below 50%, plus additional 0.5% NSR if diluted below 33.3%, subject to partial buyback rights; Ø SIR retains METC(30%) credits on qualifying expenditures on first $8.2M Ø SIR maintains rights to enter into streaming transactions on all metals subject to DMC having certain off-take rights Ø DMC has right to fund one additional property nominated by SIR, only if proceed to second option * see NR16-03, April 6 th , 2016 for full details www.serengetiresources.com | TSX.V: SIR 8
Kwanika 2016 Drilling Pyritic Shell in Kwanika Central Zone Cover rocks K-16-178 Pierce Point* 0.5 g/t Au Eq. Grade NW Deep Target Shell Modeled IP Chargeability *Hole drilled perpendicular to section line Slice looking East (90°) Slice Azimuth: 257° 500 m Plunge: 90° www.serengetiresources.com | TSX.V: SIR 9
Kwanika 2016 Drilling IP 3D Model 2016 Resource Estimate Focus Area www.serengetiresources.com | TSX.V: SIR 10
Examples of Deep High Grade Porphyry Root Systems Deep Kerr/KSM Seabridge Gold Inc., Stikine, BC New Afton Mine, New Gold Inc., Kamloops, BC u A high grade keel beneath past producing Afton open pit u Underground block cave production began in 2012 u Deep drilling below giant KSM Cu-Au system has outlined a u Mine expansion underway, feasibility of mining deep resource > 1B tonnes extensions > 1200m below surface is being considered u 1.0 Bt Grading 0.53% Cu, 0.35 g/t Au to depths > 2200m www.serengetiresources.com | TSX.V: SIR 11 Source: Seabridge Gold Inc.& New Gold Inc
UDS – 100% owned in Kemess Mine District www.serengetiresources.com | TSX.V: SIR 12
Jewel Property – 100% Owned Priority sulphide target Additional ◆ Targets Located 25 km NE of Kwanika ◆ Cu-Au deposit Airborne survey identified deposit ◆ scale cluster of strong, discrete Original VTEM / Mag Target magnetic highs one with single line coincident VTEM anomaly Target represents a possible ◆ skarn-porphyry system or VMS target Possible Intrusive Results pending from ground ◆ geophysical / geochemical program completed fall 2016 Additional Targets www.serengetiresources.com | TSX.V: SIR 13
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