Newly identified outcropping quartz monazite at the East Tsagaan Suvarga target Kincora Copper Ltd Expanding along an emerging world class copper belt TSXV listed, Mongolian copper-gold exploration and development company (KCC.CN) February 2017
Disclaimer When Ivanhoe’s geologists looked north over the Oyu Tolgoi prospect over 15 years ago, this is all they could see (sourced and text adapted from “Zeus - The future of Oyu Tolgoi exploration” ) Information not recommendation Any decision to rely on the information contained in this presentation is the sole responsibility of the recipient of this document and Kincora will be responsible for any loss The views expressed in this presentation are based on information derived from Kincora incurred by the recipient as a result of any actions taken by them relying on the Copper Limited’s (“Kincora”) own internal and publicly available sources that have not be information presented in this report. independently verified. The scientific and technical information in this presentation was prepared in accordance No representation, warranty or undertaking, expressed or implied, is made or given by with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and Kincora, or any of their officers or employees as to the fairness, accuracy, completeness National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43 - 101”) or reliability of that information. and was reviewed, verified and compiled by Kincora’s geological staff under the This presentation should not be relied upon as a recommendation or forecast. Any supervision of Peter Leaman, Senior Vice-President of Exploration of Kincora Copper, who recipient of this presentation is responsible for conducting their own due diligence and is the Qualified Person for the purpose of NI 43-101. other enquires as to the information provided to them. Recipients of this presentation All pricing and information in this presentation is at February 10 st , 2017 and is in C$, should seek and rely upon their own legal, tax, geological, geophysical, financial and unless otherwise stated. accounting advice. 2
Investment highlights: Location, Team, Targets � Recent Transformational Transaction with IBEX Expands portfolio creating the dominant position in one of the worlds fastest growing mine and infrastructure regions � Strategic landholding, majority of prospective copper belt: highest potential for further Tier 1 discoveries in a proven under explored copper belt which includes Rio Tinto’s largest global expansion project � Industry leading Technical Team: exceptional discovery track record with Tier 1 porphyries � Two drill ready targets analogies to the existing two large scale mines in belt: proof of geological interpretation for a discovery to support significant value add 1. “ Brownfield ” open pit target 13km on strike from Tsagaan Suvarga (“TS”) development project (307Mt @ 0.54% Cu) at East TS 2. Devonian ( “Oyu Tolgoi style” ) stratigraphy at Bayan Tal, including adjacent 18m @ 0.66% CuEq (hole 6) & 0.75% CuEq (trench) � Advancing district scale multi-target, multi-stage pipeline up the value curve: systematically advancing regional portfolio � Conditional access to High Power Exploration Inc. (HPX) suite of geophysical technologies � The largest project financing of its kind for Oyu Tolgoi Stage 2 development demonstrates the attractiveness of Mongolia as a place to do business and invest � Exploration success and re- rating of other active exploration juniors highlights Mongolia’s resource potential Focus of exploration in the belt is additional Tier 1 (Devonian) copper-gold porphyries 3
Location: Dominant position between/on strike from the only 2 (Devonian) mines 30 km 30 k m RUSSIA Erdenet Copper Mine Erdenet Copper Mine Bronze Fox Tourmaline Hills Ulaanbaatar Ulaanbaatar Kharmagtai East East Xanadu Mines TS TS World-clas ass u under e expl plored c coppe pper- Shuteen gold be belt w which i includes Ri Rio T Tinto’s TS TS Tsagaan lar argest g global bal e expan pansion pr project OT OT Suvarga CHINA (val alued @ @ > >US$10 bi billion 3 ) ) (“ TS ”) Ulgii MAK/EBRD Porphyries occur in clusters focused on key Kincora licenses (IBEX t (IBEX tran ansact action ion) ) geological structures within established belts — they do not occur in isolation Other notable licenses Mines/development projects Red Well Bayan Tal Interpreted key structures Res. Cu� Au Est Project Owner Stage km 2 NE OT trend (Mt) (%) g/t capex Stage 2 UG Rio “OT” 777 4,397 0.65 0.29 ~$12 Develop’t Tinto, via TRQ Open Pit with Oyu Tolgoi Incl. Production 148 951 0.45 0.28 ~$5b GoM (reserves) (“OT”) 1 MAK Develop’t 1.3 of 0.54 n/a ~$1.0 Rio Tinto/ “TS” (private (sulfides 307 175 –1.4 TRQ/Entrée Gold group) only) 1. OT is forecast to be in the top 3 largest copper mines, and one of largest gold deposits, with multi-generational reserves/resources, post ongoing underground development, which follows the largest project financing of its kind. YE 2016 open pit production was 201,300t Cu and 300,000oz Au 2. TS is owned by a private Mongolian conglomerate with construction started in 2012, expected to produce 316,000t Cu and 4,400t Mo pa 3. TRQ has a US$7.1b mkt cap with 66% interest in OT (“GoM” Government of Mongolia 34%). RIO owns 50.8% of TRQ. Ex Entrée interest in OT. 4
Progress: Proving the Devonian belt and advancing our geological models - Bayan Tal and East TS (100% Kincora) - only two new, known Devonian targets since the discovery of OT - Bayan Tal is an “Oyu Tolgoi” style target and East TS a ‘brownfield’ “Tsagaan Suvarga” style target Oyu Tolg Oyu Tolgoi oi East East Tsagaan Tsagaan Tsagaan Suvarga Suvarga Tsagaan Suvarga (East TS ) Ulaan Khud (TS) Suvarga East TS Serven Sukhait Hugo OT Open Pit Heruga Javkhlant Bayan Tal Bayan Tal Devonian Stratigraphy: Confirmed Devonian - insert 1 Mineral Resource and Ore Reserves Bayan Tal Bayan Tal Mineralised Cu-Au occurrence Interpreted Devonian Belt GMAG feature Oyu Tolgoi Kincora licenses (OT ) Bayan Tal Interpreted key structures Intrusive Complex 1. All inserts like-for-like scale (20km reference provided in OT insert) IBEX006: 18m @ 0.66% Cu Eq 2. TS mineralized occurrences and ore reserves adapted from JICA Trench: 18m @ 0.75% Cu Eq 1992 and satellite imagines 5
Milestones: Transformational last 6 months Foundations set by the following milestones: What drives value in 2017 for Kincora? � IBEX scrip/share transaction closed (announced May, closed Nov’16): HPX becomes Kincora shareholder � Deleveraging and recapitalization : Two private placements and two 1. Advance existing projects debt conversions along development pipeline: � Tightened corporate structure : 10:1 share consolidation • Drill testing two priority target areas (East TS and Bayan � New Technical Team : multiple discovery of Tier 1 gold rich copper porphyries Tal) which provide analogies � Aligned to shareholders : New remuneration structures (70:30 share/cash) to the existing two large � Strengthened board to reflect refined strategy : previous exploration and scale mines in belt expansion success Advancing existing earlier • stage prospects � Exploration advanced : New priority exploration targets advanced, geological models presented • Drop ground which does not fit our target exploration � New exploration license : issued directly from Mongolian Government profile application process � Turn in the commodity cycle : copper price increase >30%, re-rating of successful exploration plays 2. Further corporate opportunities to access additional � Changing investor sentiment towards Mongolia : parliamentary election, OT ground/more advanced projects Stage 2 and exploration success of other juniors (ERD.CN & XAM.AU >$100m market caps, with C$12m bought deal and A$12.2m placement) 6
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