Kerr Mines TSX: KER I OTC: KERMF July 2018 FORWARD-LOOKING - PowerPoint PPT Presentation

AN EMERGING AMERICAN GOLD PRODUCER CORPORATE PRESENTATION Kerr Mines TSX: KER I OTC: KERMF July 2018

FORWARD-LOOKING STATEMENTS This presentation contains forward-looking information, including statements regarding: the proposed timing, schedule, and costs for restarting production at the Copperstone Mine, rate of production, expected cash costs, expected increase in milling capacity, exploration potential at the Copperstone Mine, proposed debt restructuring and financing, share capitalization and director ownership,. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource and mineral reserve estimates are reflective of actual mineral resources and mineral reserves; and the degree to which factors which would make a mineral deposit commercially viable are present; assumptions with respect to the cost and availability of labour for the restart of operations are correct,; results of exploration and validity of geological models; the risks and hazards associated with underground operations, and any specific risks or assumptions set out or referenced in this presentation. Risks and uncertainties about Kerr Mines Inc. and its business are more fully discussed in its disclosure materials, including the annual information form, technical reports, financial statements and MD&As, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Kerr Mines Inc. assumes no obligation to update any forward-looking statements or to update the reasons why actual results could differ from such statements unless required by law. This presentation includes certain non-IFRS measures, including cash costs on a per gold ounce basis. Cash costs per gold ounce are defined as costs of production (including refining costs) divided by the total number of gold equivalent ounces produced. The Company reports total cash costs on a production basis. In the gold mining industry, these are common performance measures but do not have any standardized meaning, and are non-GAAP measures. As such, they are unlikely to be comparable to similar measures presented by other issuers. In reporting cash costs per gold ounce, the Company follows the recommendations of the Gold Institute standard. The Company believes that, in addition to conventional measures, prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Technical information in this presentation has been reviewed and approved by Michael R. Smith P. Geo., who is a qualified person that is independent of the Company, as defined in National Instrument 43-101. 2

INVESTMENT OPPORTUNITY PRODUCTION & CASH FLOW INFASTRUCTURE & PERMITS PROLIFIC REGION 2019 Production Target US $50M invested in infrastructure Safe, mining friendly Arizona, USA 38,000 ounce per year Low CAPEX needed to start up Top 10 mining jurisdiction Low cost profile generates Supportive Community and Gov’t US $22M EBITDA RESOURCE EXPANSION PLAN POSITIVE GOLD PRICE HIGH GRADE RESOUCE 2018 15,000 m drill program targeting Geo political tensions MII 420K oz @ +7.0 g/t 200K ounce expansion to resource and Global Debt Growth Multi Million Ounce potential mine life Transitioning to production & cash flow 3

CAPITAL STRUCTURE Shares & Balance Sheet* Shareholder Breakdown Specialist Mining Ticker Symbol TSX: KER I OTC: KERMF Shares Outstanding 255.7 million Retail Family Offices & Institutional Options 9.8 million Warrants 22.2 million Directors Fully Diluted 287.7 million 52 week range $0.09 - $0.41 Europe Recent price $0.22 Market Cap $56.2 million North America Middle East Cash (March 2018) $3.3 million * Figures denominated in Canadian dollars 4

JUNIOR MINING DEVELOPMENT CYCLE CAPEX Financing New executive management team Share price (C$) Pre-Feasibility released At an inflection point of value creation in the cycle 5

KEY LEADERSHIP Claudio Ciavarella – Chief Executive Officer & Director Fahad Al Tamimi - Chairman  CPA, 25 years as private business owner. CEO of Kerr Mines since  A businessman with global investment activities April 2017  Former President and CEO of SaudConsult, the largest engineering  Owns and operates international businesses in construction and firm in Saudi Arabia manufacturing  Investments in mining  Investments in mining Martin Kostuik – President and Director Peter Damouni - Director  25 years underground and open pit mining experience. President of  Over 17 years of experience in investment banking and capital Kerr Mines since April 2017 markets, with expertise in mining and oil a nd gas  CEO of Rupert Resources, Operations & Engineering at Barrick’s  Led equity and debt financings valued over $5 billion Goldstrike mine David Thomas – VP Projects/Mine GM Ayman Arekat - Director   Over 35 years of banking, finance and investment experience 30 years of mine building and operations experience including 5 underground gold projects with Newmont, Bema Gold (Kinross),  Previously with Chase Manhattan Bank, Merrill Lynch, Deutsche Teck and others Bank, Investcorp and Abraaj Capital  EPCM Manager for Newmont (worldwide) and Nordgold (Russia and Africa), EVP of Comstock Mining in Nevada Michael R. Smith – Exploration and Development James McVicar - Director 6   38 years exploration and geology, Chief Mine Geologist, Barrick’s Over 20 years of specialized experience in corporate finance and corporate/commercial matters for natural resources companies Goldstrike mine. Led the Arizona Vulture Gold Mine back into production. Executed 20 exploration projects adding $9 billion in gold  Director of Monarca Minerals resource value alone  BS Geology Arizona State and MS Geology Mackay School of Mines Invested team with significant industry experience

VALUE CREATION STRATEGY Production Resource Expansion Blue Sky Exploration • On track for 2019 gold production • 2018 drill program for conversion of • Multi-million ounce targets with MII to P&P reserves existing gold mineralization • CAPEX finance partner selected • Add mine life in 2018 by expanding • South & SW target satellite deposits • PFS complete, detailed Copperstone & Footwall Zones at • Three blue pearl exploration targets engineering progressing depth and strike Increase production profile Extend mine life Increase resource ounces Strategic Growth Vision 7

ROBUST ECONOMICS PFS Highlights* (US$) Project Attributes Base Case Gold Price $1,250 Gold price environment long term trending upwards Gold Production per annum 38,000 oz Scalable operation with potential for expansions Recoveries to Doré 95% Excellent gold recoveries Average Gold grade M&I 7.6 g/t High grade, recoverable copper not included in PFS Initial Capital Costs $22.7M Small CAPEX, financed via non dilutive instruments Gold Cash Cost $684 Low cash cost, high profit margin All-in Sustaining Costs $875 Low AISC After-Tax IRR ($1,250 Au) 40% High IRR Annual EBITDA $22M Strong cash flow and highly profitable *Kerr Mines National Instrument 43-101 Technical Report: Preliminary Feasibility Study for the Copperstone Project, La Paz County, Arizona, USA 8

VALUE CREATION TIMELINE 2018 2019 Catalysts Comments Q2 Q3 Q4 Q1 Q2 Q3 Q4  The majority of the Secured financing Today activities are standardised and Exploration program executed throughout Permits modifications are Detailed engineering well along in the process – the world First permit modifications to be finished by beginning of Q4’18  Advanced nature of Permit modifications current study allows BLM Mine plan of quick progression to operations detailed engineering Resource Upgrade / Mine Engineering  From funding to first To be expedited if detailed gold pour very fast due Long lead equipment engineering is completed before the end of Q4’18 to straight-forward nature of project Leach Plant Construction Commissioning and start- up Mine development / Infill First gold pour estimated to be Q4’19 drilling Begin mining First gold 9 First Gold pour FIRST GOLD ESTIMATED IN Q4 2019

DETACHMENT FAULT SYSTEM - SCALE POTENTIAL NEVADA Detachment Fault Known detachment fault- related Mineralization Castle Mineral Park Mountain Moss Mine Gold Road ARIZONA Copperstone Mine Mesquite Source: Michael R. Pawlowski P. Geo, January 2005 Schematic cross-section of the Moon Mountain Detachment Fault and the Copperstone Listric Fault (depth unknown), Solid heavy lines are observed faults; broken lines and projected faults Source: USGS Keith R Long Preliminary descriptive deposit 10 model for detachment fault related model