Developing lithium and silver projects in Mexico Corporate Presentation May 2017
Arian Silver - Overview Strategy • To generate capital growth by acquiring, exploring and advancing lithium and silver projects Six focus areas • San Celso silver project high grade silver project with five significant veins identified to date • Los Campos silver project 500 hectare project. Strike length of main vein evidenced to >3km • La Africana silver project high grade silver project with silver grades up to 1,195gt/t • Three lithium projects first soil samples confirmed lithium presence Opportunity • Low valuation compared to peers provides scope for significant revaluation • Continued positive exploration results will justify increasing valuation • Good indications to target future drilling campaigns • Target metals significant contributors to renewable energy production and storage • Benefit of uplift to silver price • Benefit of uplift to lithium price PAGE 2
The Heart of the Mexican Silver Belt PAGE 3
San Celso Project • Concessions over 88 hectares • Located in the historic mining district of Pánfilo Natera-Ojocaliente • Excellent infrastructure • Five high-grade veins with grades up to 395g/t Ag, 13,700ppm Pb, and 13,900ppm Zn identified to date • Vein systems indicate similarities to the Company’s previously owned and A schematic map of the area showing the various identified nearby San José mine, where historic mining exploited the San José vein down to approximately 300 metres. PAGE 4
San Celso – High Grade Vein Complex San Celso Mine Las Cristinitas Mine Original AutoCAD level plans for the San Celso and Las Cristinitas workings PAGE 5
Los Campos Project • 500 hectare project area • encompasses the former Los Campos mine, its satellite excavations and the San Rafael and Los Campos veins • Opportunity to rehabilitate several of the old mine shafts in this area to: – ascertain the extent of historic mine workings; – identify potential highly mineralised zones for follow-up drilling; and A schematic map of the Los Campos Project – undertake further mapping to verify the presence of additional vein structures PAGE 6
La Africana Project • Comprises a past-producing mine and two known veins: the Africana and El Sastre veins. • The Africana vein contains significant zones of high-grade silver mineralisation over respectable widths (up to 5 metres). • Sampling delivered results of up to 824g/t Ag (grab samples) and 1,195g/t Ag (underground sampling). The existing underground workings have been surveyed, it appears mining terminated at approximately 50 metres below surface, which coincides with the current water table. Evidence suggests that the A schematic map of the old mine shafts and vein mineralisation extends below this level. expression on surface • Future drilling required to complete a compliant mineral resource to be delineated. PAGE 7
Donovan Project • Located to the south-east of La Africana project and in close proximity of the Bilbao Volcanic Massive Sulphide (“VMS”) deposit. • Preliminary exploration identified base metal mineralisation and the presence of copper skarn mineralisation. • Additional exploration is planned with the intention of identifying both skarn and VMS- style mineralisation. • The Donovan 2 project is situated to the south of La Africana, Donovan 1 and in close proximity to the well-known and world- class San Nicholas copper-zinc deposit. • Preliminary exploration identified several areas that exhibit pathfinder indicators of VMS-style mineralisation. A schematic map of the Donovan 2 Project • Ground magnetic geophysics should indicate any sub-surface VMS-style mineralisation. PAGE 8
Lithium Projects • Option over three lithium projects covering in excess of 1,600 hectares in the central region of the altiplano, well-known for its lithium deposits. • There are several deposits of sodium, lithium, boron, and potassium salts currently under exploration. • Each of the three lithium projects contain ‘salars’, which are shallow ancient lakes and lagoons. These salars comprise brines formed by an accumulation of groundwater enriched with dissolved lithium and have the potential to contain significant lithium resources. • A schematic map of the Projects west of the main Zacatecas – Historic sampling returned grades of up to 500ppm Li. Saltillo highway (54) • Preliminary sampling work has confirmed the presence of anomalous lithium at all three of the projects, and further work is being carried out to ascertain the full extent of the deposit. PAGE 9
Lithium Projects Abundancia project 150 hectares in size and encompasses the Laguna Noria del Burro salar. Initial sampling has confirmed the presence of lithium at up to 158ppm (parts per million) Pozo Hondo The largest of the projects at almost 1,100 hectares in size and covers one salar, the Laguna El Salado. Initial surface sampling has confirmed the presence of lithium at up to 120ppm. Columpio Almost 400 hectares in size, encompassing two salars, Laguna Tenango and Laguna La Virgen. Initial surface sampling has confirmed the presence of lithium at up to 87ppm. PAGE 10
Why Invest in Silver Now? • Tighter supply of silver as a result of: Silver Physical Surplus / Deficit ‒ Reduction in mine production ‒ Lower scrap supplies ‒ No government sales • Increasing global demand: – Electronics (Batteries) – Automotive – Green technologies (solar) – Medical uses (antiseptics, disinfectant etc.) World Coin and Bar Demand – Water purification • China, historically a major supplier of silver, is now a net importer. • India has seen imports rise as a result of the restrictions on gold import. • CRU, a leading business intelligence company Source: Metal Focus expects industrial use of silver to increase over the coming years. PAGE 11 Source: GFMS< Thompson Reuters
Why Invest in Lithium Now? • Lithium-ion batteries driving demand: Lithium Demand Growth ‒ 20%+ annual growth since 2000 ‒ Currently 30% of global market • Electric Vehicles and E-bikes – Currently 3% of global lithium market – Accelerated growth expected from 2015 • Conventional applications – Currently 70% of global market – Glass ceramics typically use Source: RosKill technical grade concentrate PAGE 12
Mexico: Large Mineral Producer • Largest silver producing country in the world • Emerging lithium producer • Prolific mineral potential and mining history • Excellent availability of senior personnel and skilled labour • Part of NAFTA, low country risk and stable government, despite the Trump administration Zacatecas • Reasonable tax burden, permitting process, community support • Security and social issues are localised, not pervasive • Excellent transportation and energy infrastructure PAGE 13
Capital Structure Daily Share Price The Company’s Capital Structure 3 expected with effect from 9 June 2017 Issued share capital 303,694,941 2 Share options 9,275,000 1 Warrants 246,787,493 0 Fully diluted share capital 559,757,434 52 Week Share Price AIM: £0.005 -- £0.012 Beaufort Nominees Limited – 7% Major Shareholders directors and officers Average Daily Trading 2017 Q1 2,026,808 Volumes 2016 Q4 1,443,787 2016 Q3 2,385,631 2016 Q2 4,209,850 PAGE 14
Directors & Management Jim Williams Co-founder, Director & CEO Tom Bailey Non Executive Director Experienced exploration & mining geologist with over 30 years’ experience Professional legal counsel with over 30 years’ experience. worldwide. Mr Williams co-founded Arian Silver in 2005 and listed it on AIM Worked with Citibank and Chase Manhattan for a number of years. and TSXV in 2006. Tony Williams Co-founder, Director, Chairman James Cable Non Executive Director Mining geologist with over 35 years’ experience in the international Chartered Accountant with over 30 years’ experience. mining industry, having been involved in projects in the Americas, Significant international and commercial experience in several sectors. Australia, Africa and Europe and the former Soviet Union. Mr Williams co- He is also Financial Director of Mantle Diamonds Limited. founded Arian Silver in 2005. Miguel Barahona Operations Director (Mexico) James Crombie Non Executive Director Mining engineer with over 20 years’ experience internationally within Mining engineer with over 25 years’ experience. Former President & CEO of Palmarejo Silver and Gold Corporation until acquisition by Coeur d’Alene various areas of the mining industry. He has also held senior positions for major mining operations, and designed mining processes for Mines for US$1.1 Billion (December 2008). narrow-vein mining. He has been with Arian for over 3 years. David Taylor Company Secretary Fellow of The Institute of Chartered Secretaries and Administrators ("ICSA") with over 10 years’ experience in senior roles for a number of multinational blue chip companies, and most recently for ICSA, a leading authority on governance and compliance. . PAGE 15
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