Creation of a Growing Gold Producer in Mexico Corporate Presentation May 2020 TSX-V: MGR | OTCQB: MGLQF TSX-V: MGR | OTCQB: MGLQF MAGNA GOLD CORPORATE PRESENTATION | APRIL 2020 1
Forward Looking Statement The information contained in this presentation is provided by Magna Gold Corp. (“Magna” or the This presentation does not constitute an offer to sell or the solicitation of an offer to buy “Company”) for informational purposes only and does not constitute an offer to issue or shares in the United States, or in any other jurisdiction in which such an offer would be illegal. arrange to issue, or the solicitation of an offer to issue, securities of Magna or other financial Magna shares may not be offered or sold in the United States absent registration under the products. The information contained herein is not investment or financial product advice and is United States Securities Act of 1933, as amended or an available exemption under such Act. This not intended to be used as the basis for making an investment decision. The views, opinions and presentation includes disclosure of scientific and technical information, as well as information advice provided in this presentation reflect those of the individual presenters and are provided in relation to the calculation of resources, with respect to the Mercedes Property. Magna’s for information purposes only. The presentation has been prepared without taking into account disclosure of mineral resource information is governed by National Instrument 43-101 – the investment objectives, financial situation or particular needs of any particular person. No Standards of Disclosure for Mineral Projects (“NI 43-101 ”) under the guidelines set out in the representation or warranty, express or implied, is made as to the fairness, accuracy, Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Standards on Mineral completeness or correctness of the information, opinions and conclusions contained in this Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time presentation. To the maximum extent permitted by law, none of Magna nor its directors, to time by the CIM (“CIM Standards”) . There can be no assurance that mineral resources will officers, employees or agents, nor any other person accepts any liability, including, without ultimately be converted into mineral reserves. Mineral resources are not mineral reserves and limitation, any liability arising out of fault or negligence, for any loss arising from the use of the do not have demonstrated economic viability. information contained in this presentation. This presentation may include the terms “indicated” and “inferred” resources. U.S. persons are Except for statements of historical fact, this presentation contains certain "forward-looking advised that while such terms are recognized and required by Canadian regulations, the U.S. information" within the meaning of applicable securities laws. Forward-looking information is Securities and Exchange Commission does not recognize them. “Inferred Resources” have a frequently characterized by words such as "plan", "expect", "project", "intend", "believe", great amount of uncertainty as to their existence and as to their economic and legal feasibility. "anticipate", "estimate" and other similar words, or statements that certain events or It cannot be assumed that all or any part of an inferred resources will ever be upgraded to a conditions "may" or "will" occur. Forward-looking statements are based on the opinions and higher category. Under Canadian rules, estimates of inferred resources may not form the basis estimates of management at the date the statements are made, and are subject to a variety of feasibility or other economic studies. U.S. persons are cautioned not to assume that all or of risks and uncertainties and other factors that could cause actual events or results to differ any part indicated resources will ever be converted into reserves. U.S. persons are also materially from those anticipated in the forward-looking statements, including, among others, cautioned not to assume that all or any part of an inferred mineral resource exists, or is the accuracy of mineral grades and related assumptions, inherent operating risks, planned economically or legally mineable. expenditures, proposed exploration and development at the Mercedes Property, operating and economic aspects of the Mercedes Property. Magna undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. TSX-V: MGR | OTCQB: MGLQF 2 MAGNA GOLD CORPORATE PRESENTATION | MAY 2020
Our Strategy 2023 2020 – 2022 Re-start and optimize the San Francisco mine Multi-Mine Gold Producer Establish stable low cost production Annual Production of 200 kozs Continue strengthening the balance sheet Pursue external growth opportunities Gold Resources of 5 Mozs Advance the exploration pipeline Implement a disciplined growth plan to generate long-term shareholder value TSX-V: MGR | OTCQB: MGLQF 3 MAGNA GOLD CORPORATE PRESENTATION | MAY 2020
Leadership Team Arturo Bonillas Colin Sutherland Chief Executive Officer, Secretary and Director Director Mr. Bonillas, former President and co-founder of Alio Gold Inc., (previously Timmins Gold Corp.) is Mr. Sutherland has been a Chartered Professional Accountant since 1997. He was previously the a Mexican citizen with over 40 years of experience in the Mexican mining and exploration industry. President of McEwen Mining Inc., a mining company listed on the TSX and the New York Stock During his 10-year tenure with Timmins, he spearheaded the company’s transition from one of Exchange, from January 2016 to November 2016, and the Managing Director and Chief Executive exploration and development to a mid-tier gold producer, a crucial strategy in securing several Officer of Archipelago Resources Plc, a company listed on the Australian Securities Exchange, years of positive reserve and resource growth, throughput and production. from March 2012 to December 2015. He has held senior financial and executive roles with Timmins Gold Corp., Capital Gold Corporation, Nayarit Gold Inc. and Aurico Gold Inc. Miguel Ángel Soto y Bedolla Alex Tsakumis Director Vice President of Exploration Over 25 years of investment experience with private and public companies. Served as VP of Mr. Soto is a Mexican citizen with over 40 years of experience in the mining and exploration Corporate Development at Timmins Gold Corp for nine years, where he played a pivotal role in the industry. He has worked as a senior executive of several exploration companies for 25 years, development of the corporation from a junior exploration to a production company. Wide earning him recognition as one of the top mining professionals in Mexico. As co-founder of experience in capital formation and management and growth of listed companies. Timmins Gold Corp, he facilitated a four-fold increase in San Francisco’s gold resource (611 Koz to 2.4 Moz). Mr. Soto is an active member of the US Society of Economic Geologists. In 2018 he was awarded the prestigious Ostotakani award given to distinguished leaders in the Mexican mining industry. TSX-V: MGR | OTCQB: MGLQF 4 MAGNA GOLD CORPORATE PRESENTATION | MAY 2020
Capital Structure Current Capitalization Ownership Structure Listing / Symbol TSX-V: MGR / OTCQB: MGLQF Management / Board Current Share Price C$0.77 Institutional 8% 45% 52 Week High / Low C$0.83 / C$0.19 Alio Gold Inc. 12% C$49 million 1 Basic Market Capitalization ~C$10 million 1 Working Capital Share Capital Peal de Mexico, 84.5 million 1 Basic Shares Outstanding SA de CV 16% Options Outstanding 200,000 (at C$0.10 strike) Major Shareholders Eric Sprott 285,714 (at C$0.35 strike) US Global Finder’s Warrants Outstanding Retail Delbrook Capital 632,975 (at C$0.41 strike) Medalist Capital 19% Adrian Day 85.6 million 1 Fully Diluted Shares Outstanding 1. Cash and shares outstanding reflect the equity financing announced on May 19, 2020 TSX-V: MGR | OTCQB: MGLQF 5 MAGNA GOLD CORPORATE PRESENTATION | MAY 2020
San Francisco Mine Sonora, Mexico • Past producing open pit heap leach gold operation that commenced operations in 2010 and produced over 820,000 ounces of gold and 100,000 ounces of gold per year 1 • 21 contiguous concessions totaling 47,395 ha • Comprised of 2 previously mined open pits, together with heap leach processing facilities and associated infrastructure • Total crushing capacity of 22,000 tpd • Currently in a period of residual leach • The open pits, mining equipment, processing facilities, and site infrastructure are all in excellent condition • Historical NI 43-101 Reserves of ~855 kozs and Measured and Indicated Resources of ~1.5 Mozs (see Slide 8 for details) Magna is currently optimizing the mine plan and advancing a re-start plan Re-start is targeted for Q3 2020 1. Based on production from 2013 to 2017 TSX-V: MGR | OTCQB: MGLQF 6 MAGNA GOLD CORPORATE PRESENTATION | MAY 2020
San Francisco – Plan View of Operations TSX-V: MGR | OTCQB: MGLQF 7 MAGNA GOLD CORPORATE PRESENTATION | MAY 2020
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