Discovery done different CORPORATE PRESENTATION October 2014 - PowerPoint PPT Presentation

Discovery done different CORPORATE PRESENTATION October 2014

Forward-looking statements The TSX-V has neither approved nor disapproved the contents of this presentation. Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this presentation. Certain of the statements made and information contained herein is “forward - looking information” within the meaning of the applicable Canadian securities laws, including the receipt of necessary permits to conduct exploration and construction, timing of anticipated exploration programs, the number of holes and meters to be drilled and future plans and strategies of the Company. Although Kaizen has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the proposed transaction could be modified, restricted or not completed, and the results or events predicted in these forward-looking statements may differ materially from actual results or events. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Kaizen disclaims any intention or obligation to update or revise such information, except as required by applicable law, and Kaizen does not assume any liability for disclosure relating to the other company mentioned herein. Accordingly, readers are advised not to place undue reliance on forward-looking information. The forward-looking statements contained in this presentation are made as of the hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

Disclaimers The information in this presentation is published to inform you about Kaizen Discovery and its activities. To the extent permitted by law, Kaizen Discovery accepts no responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this presentation. Recipients should make their own enquiries in relation to any investment decisions. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in any jurisdiction, including the United States. NI 43-101 Statement Aspen Grove and Tanzilla Projects. The scientific and technical information in this presentation relating to the Aspen Grove Project and Tanzilla Project of a technical or scientific nature have been reviewed and approved by John Bradford, M.Sc., P.Geo ., Kaizen’s Chief Geologist a qualified person as defined under National Instrument 43-101. He has verified the technical data disclosed in this presentation regarding the Aspen Grove and Tanzilla Projects. Fairholme Project. The scientific and technical information in this presentation relating to the Fairholme Project has been reviewed and approved by Mr. Barry de Wet, a member of the South African Council for National Scientific Professionals (SACNSP), South Africa, and a Qualified Person as defined under NI 43-101. Mr. de Wet is independent of Kaizen Discovery as determined under NI 43-101. He has verified the technical data disclosed in this presentation regarding the Fairholme Project. Ebende Project. The NI 43-101 technical report in respect of the Ebende Project, entitled "NI 43-101 Independent Technical Report", dated October 16, 2013 (the “ Ebende Report”) was prepared by The MSA Group (Pty) Ltd and is available on SEDAR at www.sedar.com. The Qualified Persons as defined under NI 43-101 for the Ebende Project are Dr. Brendan Morgan Clarke, a Professional Natural Scientist (PrSciNat) registered with the South African Council for Natural Scientific Professions, and Mr. Michael David Lynn, a PrSciNat registered with the SACNASP. Both are independent of Kaizen Discovery as determined under NI 43-101.The Ebende Report includes relevant information regarding, among other things, data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this presentation in respect of the Ebende Project. Information regarding the Ebende Project included in this presentation is based on the Ebende Report. None of the foregoing mineral projects currently hosts any mineral resources or mineral reserves.

A platform for future success Revolutionary exploration technology Unique Experienced access to leadership capital Kaizen model for success

A cooperative approach to acquiring and advancing projects Possible structure for an acquisition Kaizen will target projects that match evaluation • criteria and align with corporate strategic Strategic partner group objectives investment – Partnerships with Japanese strategic partners provide opportunities for additional sources of financing throughout project lifespans. – Kaizen can leverage strategic partners’ technical Project specific Special expertise to evaluate proposed targets and shorten the Purpose Vehicle process of selecting candidate assets. Target acquisition process • Local holding company – Once opportunities identified, Kaizen will lead M&A process, leveraging key strengths. – Transactions may be structured to include optional participation of Japanese strategic partners, including at the project level. Asset

Collaboration with ITOCHU February, 2014: Private Placement Financing and formation of Strategic Alliance • CAD$5.1 million private placement. • Issuance of 8.5 million Kaizen common shares at a price of CAD$0.60 per share. • Post-closing ownership stake of approximately 6.35% in Kaizen. • Opportunity to participate in Kaizen's existing Fairholme copper- gold project in Australia (49% earned interest) and its Ebende nickel-copper-cobalt project in the Democratic Republic of Congo. • Facilitation of non-recourse project financing and support from Japanese financial institutions for the development of Kaizen projects. August, 2014 - Acquisition of Copper and Gold Exploration Interests in Canada for $4M • Aspen Grove copper/gold project: ITOCHU acquired a 40% interest in the project in exchange for a cash payment of four million Canadian dollars (equivalent to about 380 million yen). • Tanzilla copper/gold project: ITOCHU to acquire an initial, 15% interest in the Tanzilla Project for a cash payment of 250,000 Canadian dollars (equivalent to about 24 million yen), subject to the consent of Freeport-McMoRan of Canada Limited, with an option to acquire up to a further 10% interest in the project.

Our current asset portfolio Aspen Grove & Tanzilla projects Copper, gold, silver British Columbia, Canada Kerboulé Project Gold Burkina Faso Vancouver Headquarters Tokyo Office Fairholme Project Copper, gold, Ebende Project molybdenum Nickel, copper, PGE New South Wales, The Democratic Republic Australia of Congo

Our services agreement gives us access to cutting edge technologies and expertise Conventional IP vs. HPX TYPHOON ? 5x BETTER FASTER DEEPER Increased effectiveness Can be substantially faster A high signal/noise through improved than conventional methods ratio enables up to 5x resolution of targets and for deep targets due to deeper prospecting. host geology. custom survey deployment.

Partnering with Itochu Highlights: • The combination of Kaizen's existing portfolio of exploration projects in Australia and Africa, and Tanzilla West Cirque's portfolio in Canada, establishes a stronger company with an impressive and Red Chris diverse pipeline of projects. Drilling at Tanzilla After completing the acquisition, Kaizen’s • strategic shareholder, ITOCHU, closed a $4.25 million financing agreement in August 2014. Mt Milligan • Kaizen’s in-house technical expertise has been enhanced through the addition of members of Mt Polley West Cirque’s management team. • Proprietary geophysical technologies are to be Highland Valley applied to projects in British Columbia. New Afton Drilling completed on the Tanzilla Project in Aug. • Aspen Grove 2014 and underway on the Aspen Grove Project. Copper Mountain 2014 Aspen Grove work program will include a • Key Exploration Projects 3D IP survey as well as a 2,000-metre drill program. Early-stage Targets