REPORT INSIDE In-depth industry coverage including exclusive interviews, independent analysis, expert opinion articles and economic data. Distributed to key mining players and fjnanciers in Peru and internationally. Creating a solid mining company in the Americas CORPORATE PRESENTATION JANUARY 2018
FORWARD LOOKING STATEMENTS This document contains certain forward-looking statements regarding operational information, future exploration and development plans and anticipated future production. Words such as, “potential”, “building” “inferred”, “if”, “will”, “expect”, “forecast”, “estimate”, “consider”, “may”, “possible” and similar expressions have been used to identify these forward-looking statements. These statements represent management’s current beliefs and are based on information currently available. Forward-looking state- ments involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, changes in general economic, political and market conditions and other risk factors. Although the for- ward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward looking statements. Investors should not place under reliance forward-looking statements. Forward-looking statements and other information contained herein concerning the metals and mining industry, and Mining Sense / Mines & Metals Trading Peru SAC’s general expectations concerning the industry, are based on estimates prepared by management using data from publicly available industry sources as well as from private sources, industry analysis, and assumptions based on data and knowledge of the industry which the Company believes to be reasonable. However, this data is inherently imprecise. While Mining Sense is not aware of any misstatements regarding any industry data pre- sented herein, the industry involves risks and uncertainties and is subject to change based on various factors. There is no certainty the projections will be met.
BUILDING A DIVERSIFIED MINING COMPANY IN THE AMERICAS COLOMBIA Mining Sense aims to become a major player through the acquisition and rapid development of undervalued projects. ECUADOR Recuperada in Peru, the stepping stone Asset acquired from Buenaventura Cash-flow Q1 2018 from toll processing amounting to 450 tpd Own mining production Q4 2018 (Silver-Zinc-Lead) BRAZIL Piura PERU M&A - Evaluating acquisitions of two large Gold projects Next level of corporate development Will add hundreds of millions in value Lima Long-term vision - Greenfield exploration and resource development Two promising VMS projects in northern Peru Huancavelica Previously targeted by BHP Billiton/Buenaventura and Stellar Mining BOLIVIA CHILE
RECUPERADA: A HISTORIC PRODUCER Acquired in 2017 by Mining Sense , through its subsidiary: Mines & Metals Trading Peru SAC Location : Huachocolpa district, Huancavelica 90 km south-east of Huancavelica city 7 hours by road from Lima One of Buenaventura’s historic assets (over 70 years of production) Production: 400 tpd until 2014 (care and maintenance) Resources: fertile ground 10,000-hectare land package 5 million tonnes of resources Mine-life: 20+ years using existing processing facilities
RECUPERADA: A REGIONAL HUB PERU Fully-permitted mine and plant Toll production (450 tpd) starting Q1 2018 $3.4 million revenue 2018 Lima Own mining production starting Q4 2018 $10 million investment plan Huancavelica Potential for consolidation of the regional play KEY ADVANTAGES AT RECUPERADA NEAR-TERM CASH FLOW STRONG RESOURCE BASE GREAT UPSIDE POTENTIAL TOLL PROCESSING Q1 2018 MINING PRODUCTION Q4 2018 NARROW VEIN / DISSEMINATED
RECUPERADA: A SOLID PLAN FOR DEVELOPMENT AND GROWTH PHASE I PHASE II PHASE III ACQUISITION + CASH-FLOW RESTART MINING PRODUCTION MEDIUM-TERM VISION -Identification of investment -Plant and tailings upgrade -Acquisition of deposits with opportunity additional resources in the area -Increased capacity: 800-1,000 tpd -Acquisition of Recuperada -Increased capacity: 1,000-1,500 tpd -Mine development -Replacement of environmental bond -Further exploration -Brownfield exploration $15 MILLION INVESTMENT $7.5 MILLION INVESTMENT $10 MILLION INVESTMENT 2019 IMMEDIATELY COMPLETED SOLID POSITION CASH-FLOW PROVISION 50-50 SPLIT AS A KEY REGIONAL PLAYER MINING / TOLL PROCESSING TOLL PROCESSING (450 TPD) IN HUANCAVELICA $3.4 MILLION REVENUE 2018 Q4 2018
RECUPERADA: VALUE CREATION IN THE DISTRICT The reopening of Recuperada brings tremendous opportunities for miners in the area Tolling agreements in place for 450 tpd: Astohuaraca - 25 km away Chonta - 18 km away Cambalache - 28 km away Miners previously took their ore to processing plants on the coast . With Recuperada, trucking costs dramatically go down from $25/t to $4/t Recuperada will: - Increase reserves from mineral deposits, previously considered uneconomic - Boost mining activity in the area -Use cash-flow from toll processing to grow its own mining assets
RECUPERADA MINING INVESTMENT PLAN Once the plant is up and running for toll processing, Mining Sense will restart mining operations Q4 2018: exploitation of the Tangana zone for 350 tpd of own production 2019: operations restart at the historic Teresita mine Investment plan: $25 million ($10 + $15 million), including: -Tailings upgrade -Plant expansion -Mining operations -Exploration programs -Acquisitions
RECUPERADA - TANGANA GEOLOGICAL MINING MODEL PLAN VIEW V . T A N G A V. CAUCA -1.2 Km N A V. TANGANA NW -1.4Km 4 - 0 . 7 5 K m V . E S T R E L L A - 0 . 9 K m V V. TANGANA 6-1.4 Km . I S A B E 3D TOPOGRAPHY L - 1 K m V. ORIENTE -0.9 Km Tangana is the first of various assets in Huancavelica that Mining Sense is putting into production
RECUPERADA INVESTMENT SUMMARY 450 TPD TOLL 350 TPD OWN MINING 100% OWNERSHIP FULLY PERMITTED PROCESSING PRODUCTION Q4 2018 Mining Sense acquired Ready to start. Contracts in place with $10 million investment plan the asset from Buenaventura Permits being extended to three mining producers, to restart mining production guarantee full mine life providing immediate cash-flow at the Tangana concession in 2018 GREAT EXPOSURE TO LOCAL TEAM UPSIDE POTENTIAL STRATEGIC LOCATION HIGHER METAL PRICES Increased production in 2019 Potential to consolidate the district Excellent technical and local Diversified production with (historic Teresita mine). New M&A and unlock the real potential as a expertise guaranteeing strong zinc and lead, as well as opportunities under evaluation regional play community relationships precious metals
BEYOND RECUPERADA: MINING SENSE GROWTH PLAN Recuperada is just the stepping stone of an aggressive growth story Further corporate development milestones will include: - Consolidation in Huachocolpa district through M&A Arcopunco acquisition -Acquisition of a company maker Gold project under evaluation -Exploration of promising precious metals projects in Piura Lancones + La Saucha -Further opportunities for commodity and geographic diversification Expanded project pipeline
M&A: ARCOPUNCO PROPOSED ACQUISITION A first step towards regional consolidation Earn-in agreement option Explored by Buenaventura in the 1990s. 14 holes, 3,582 meters drilled looking for the ‘Lithocap’ Resources: 3 million tonnes @ 0.4 g/t Au in sulphides (40,000 oz Au) ‘Epithermal-Porphyry’ center - 3km radius anomaly in andesitic rocks Richard Sillitoe: “The principal target is considered to be porphyry gold mineralization beneath the scattered exposures of banded quartz veinlets” Business Concept: Consolidation of the Huachocolpa district -Short-term production in polymetallic veins to feed Recuperada -Gold production from low-grade disseminated supergene area (pot 50k-200k oz Au) -Gold porphyry exploration
M&A GOLD PROJECT: A COMPANY MAKER Taking the company to the next level of corporate development 450,000 oz Au resource High sulphidation epithermal disseminations and veins Strong upside potential to increase resource Feasibility study completed 2008 for a 40,000 oz/y Au operation Low grade gold leaching operation Low stripping ratio Low cost Potential combination with Arcopunco to create a world-class size gold play Short-term production potential: oxides and sulfides Long-term exploration development Owned by a senior precious metals company Acquisition cost around $10 million
EXPLORATION - PIURA PROJECTS
EXPLORATION: LANCONES PROJECT A promising drill-ready project in northern Peru 100% Ownership VHMS deposit prospect in Piura department Excellent access by air and road - elevation just 300 meters above sea level Previous exploration (2001) - Buenaventura and BHP Billiton formed a joint venture to do a regional geophysical survey (gravimetry) in the entire Lancones basin. Mining Sense has acquired a strategic area comprising the most important drilling targets from the previous geophysics works. Drilling targets defined - 3 drill-holes planned for 2018
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