Investor Presentation Conic Metals Corp. April 2020 0 - PowerPoint PPT Presentation

Investor Presentation Conic Metals Corp. April 2020 0 www.conicmetals.com | TSXV: NKL

Conic Metals 8.56% JV interest Royalty Portfolio Other Assets in Ramu Ni-Co Operation Low cost open-pit nickel- 11 royalties focused on nickel US$5.0M in cash with no cobalt mine and HPAL plant and cobalt in Canada and corporate debt located in Papua New Guinea Australia 7% equity stake in Giga Operating since 2012, capex 1.75% NSR on Dumont in Metals of US$3 billion Quebec 3% equity stake in Minerva Mine generates substantial 2.0% NSR on Turnagain in Intelligence free cash flow British Columbia World-Class Nickel-Cobalt Mine in Production w/ Upside Through Royalty Portfolio 1 www.conicmetals.com | TSXV: NKL

Ramu Cash Flow to Conic  Forecasting to receive 35% of Conic’s attributable cash flow starting in 2022  When JV debt is repaid, Conic receives 100% of attributable cash flow and JV interest increases to 11.3% Nickel Price: $6.50/lb Cobalt Price: $20.00/lb Nickel Price: $8.00/lb Cobalt Price: $30.00/lb Cash Flow (US$ Millions) Cash Flow (US$ Millions) 45 45 8.56% JV Interest 8.56% JV Interest 11.3% JV Interest 11.3% JV Interest $41.7 40 40 35 35 30 30 $26.3 25 25 20 20 15 15 $11.1 $11.1 10 10 $7.0 $7.0 5 5 $0.0 $0.0 $0.0 $0.0 0 0 2020 2021 2022 2023 Debt Free 2020 2021 2022 2023 Debt Free Significant Near Term Cash Flow 2 www.conicmetals.com | TSXV: NKL

Unique Nickel & Cobalt Investment Opportunity 3 www.conicmetals.com | TSXV: NKL

Nickel Market Dynamics Historical Base Metal Prices LME Nickel Inventory Levels US$lb kt Nickel Copper Zinc Lead 10.00 500 400 9.00 300 8.00 200 100 7.00 Price (US$/lb) -- 2014 2015 2016 2017 2018 2019 2020 6.00 5.00 Shanghai Nickel Inventory Levels 1 kt 4.00 3.00 120 100 2.00 80 60 1.00 40 20 -- -- 2014 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Source: Bloomberg (1) Reported data starts in April 2015 Nickel Inventory is Still Low and Fundamentals are Strong 4 www.conicmetals.com | TSXV: NKL

Nickel’s Importance in the Electric Vehicle Industry EV Nickel Demand: +1.3 Mtpa by 2030 1 EV Nickel Demand as a % of Supply Contained Nickel in EVs (Mt) % of 2018 Ni Supply 1.30 59% 0.40 18% 0.11 0.06 5% 3% 2018 2020E 2025E 2030E 2018 2020E 2025E 2030E Source: Glencore estimates, Wood Mackenzie, CRU, BNEF (1) Does not include the nickel required for other parts of the EV supply chain including energy storage systems 5 www.conicmetals.com | TSXV: NKL

Lithium Ion Megafactory Capacity Growth Global Lithium Ion Megafactory Capacity GWh 2,500 2,100 2,020 1,900 2,000 1,760 1,580 1,420 1,500 1,220 1,140 1,000 760 580 420 500 300 140 100 80 60 -- 2014 2015 2016 2017 2018 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F Growth in Lithium Ion Megafactory Capacity by Region 2018: 292 GWh 2023: 1,222 GWh 2028: 2,020 GWh Europe, 7% Europe, Other, 0.3% Other, 0.7% North America, 12% Europe, 16% 11% North America, Asia, 8% 15% North America, Asia, 6% 8% China, 68% Asia, 5% China, 73% China, 71% Source: Benchmark Mineral Intelligence 6 www.conicmetals.com | TSXV: NKL

Substantial Long-Term Supply Challenge Source: Wood Mackenzie Significant Investment Required to Build New Nickel Production 7 www.conicmetals.com | TSXV: NKL

Nickel Capital Intensity  Capital intensity has averaged between US$60k – US$100k per tonne of annual nickel capacity Nickel Laterite Capital Intensity US$/t Ni | Capex (US$B) HPAL FeNi 160,000 $6.3B +$6B 140,000 Captial Intensity (US$/t Ni) $2.8B 120,000 +$6B 100,000 80,000 $2.5B $1.7B $3.0B $1.3B 60,000 $1.9B 40,000 20,000 -- Goro Ambatovy Taganito Ramu Ravensthorpe Murrin Murrin Koniambo Onça Puma Barro Alto Source: Company Reports Investment of $50 - $100 Billion Required to Supply 1 – 1.5 Mtpa By 2035 8 www.conicmetals.com | TSXV: NKL

Electric Vehicle Metal Requirements Ni Ni Co Co + + + = Total (kt) Generation + Grid Grid Charging Electric Structure (kt) Storage (kt) infrastructure (kt) vehicles (kt) Current EV Needs Market by 2030 % ∆ Ni 920 1,300 140% Co 115 314 270% Cu 20,000 4,080 20% Source: CRU “Mobility and Energy Futures – Perspectives towards 2035 EV Demand will Require Significant New Sources of Nickel, Cobalt and Copper 9 www.conicmetals.com | TSXV: NKL

Conic Metals Portfolio Nickel-Cobalt Production Optionality Through Royalties 10 www.conicmetals.com | TSXV: NKL

Conic’s Global Portfolio Dumont Ni-Co (Royalty) % NSR 1.75% North Canol Properties: Operator RNC Minerals 2% Co NSR 2,3 Stage Construction-Ready Ramu Ni-Co Operation (Direct Interest) Acquisition Cost US$15M (2018) % Ownership 8.56% Sunset: Metallurgical 2% Co NSR 2 Operator Corporation of China Stage Producing US$68M 1 (2019) Acquisition Cost Other Ontario Royalties 2 Turnagain Ni-Co (Royalty) Triangle: 2% Co NSR  % NSR 2.0% Rusty Lake: 2% Co NSR   Professor & Waldman: 2% Co NSR 3 Operator Giga Metals Stage Exploration Acquisition Cost US$10M (2018) Nyngan Co-Sc-Ni (Royalty) % GRR 1.7% Gross Revenue Royalty Operator Scandium International Stage Construction-Ready Acquired from Jervois Mining for US$4.5M (2019) Flemington Ni-Co (Royalty) % GRR 1.5% Gross Revenue Royalty Operator Australian Mines Stage Exploration (1) Highlands transaction value adjusted for the PanAust buyback and Highlands’ adjusted cash balance (3) Two separate mineral properties to which a Co NSR applies (2) Other royalties acquired for ~C$0.9M in aggregate in 2017 Conic’s Investment Portfolio Acquired at a Cost of C$130 million (C$1.55/share) 11 www.conicmetals.com | TSXV: NKL

Ramu Highlights  Commissioned in 2012 with ~US$2.1 billion in initial capital expenditures  Consistently ranks at or near first-quartile of the global nickel cost curve 1  Producing above nameplate capacity since 2017  Resource covers less than 15% of Ramu’s exploration license  NI 43-101 report highlights significant additional resource and reserve potential  JV interest increases from 8.56% to 11.3% when JV loan is repaid  Conic expecting to receive significant dividends from Ramu, starting in 2022 12 www.conicmetals.com | TSXV: NKL As reported by Wood Mackenzie (1)

Papua New Guinea: Incredible Resource Potential Simberi – 3.9Moz Lihir – 56.6Moz Frieda River – 19.5Moz Au 13 Mt Cu Ramu Ok Tedi – 13.5Moz Nickel / Cobalt Porgera – 5.4Moz Mt. Kare – 2.1Moz Juha Kainantu– 2.8Moz Panguna – 19.3Moz Au P’Nyang 5.3 Mt Cu Angore Wafi-Golpu – 18.6Moz Au Kuru 8.6 Mt Cu Gobe Elk/Antelope Hidden Valley – 3.3Moz Papua LNG Woodlark – 1.6Moz PNG LNG Gold Mine Copper-Gold Mine Misima – 2.8Moz LNG Fields LNG Export Plant 13 www.conicmetals.com | TSXV: NKL

Map of Ramu Nickel-Cobalt Integrated Operation Ramu MADANG PROVINCE Nickel-Cobalt Operation Madang Basamuk Plant Madang Lae Basamuk Port Morseby Usino Plant Ramu Exploration Licence Nickel-Cobalt Operation All Weather Roads Kurumbukari Highway Mine Site Pipeline (134 km) City 0 100 Kilometres Lae 14 www.conicmetals.com | TSXV: NKL

Metallurgical Corporation of China (MCC)  Formed in 1948 when it built Ansteel  Acquired by China Minmetals Corporation (SOE) in 2015 112 th on the Fortune Global 500 list • Metallurgical Engineering US$80B in revenue and US$130B in assets •  MCC currently developing >2,000 projects worldwide  Specialty is metallurgical engineering, construction & development Infrastructure  MCC has engineered and constructed some of the largest mining projects in Asia Pacific Jinchuan Nickel Mine – Largest in Asia • Dexing Copper Mine – Largest in Asia • Benxi Iron & Steel Mine – One of largest in China • Weinan Molydenum Project – Largest in China • Mine Construction & Ramu – Only Nickel Cobalt Operation in PNG • Development Tremendous Partner at Ramu Mine for Over 13 years 15 www.conicmetals.com | TSXV: NKL

Ramu Performance  Attractive production and cost profile, with significant potential to deliver decades of production in excess of currently defined 14 year life of mine Production in Mixed Hydroxide Ramu Historical Cash Costs and LME Nickel Price 000s of Tonnes LME Nickel Price (US$/Lb.) Ramu Cash Costs (1) Nickel Cobalt 40.0 $8.00 35.4 34.7 33.0 33.0 35.0 $7.00 30.0 $6.00 25.6 25.0 22.3 $5.00 21.0 20.0 $4.00 15.0 $3.00 11.4 $2.00 10.0 5.3 3.3 3.3 3.2 $1.00 3.0 5.0 2.5 2.1 2.2 1.0 0.5 $0.00 0.0 2012 2013 2014 2015 2016 2017 2018 2019F 2020F Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 Cash Costs are net of by-product credits and unaudited (1) Ramu Production Has Exceeded Design Capacity for Each of the Last 3 Years 16 www.conicmetals.com | TSXV: NKL