Lima Prospect, Mato Grosso State, Brazil Valterra Resource Corporation / Poconé Mining Company Virgin Ground between Producing Gold Mines in the Heart of Brazil’s Poconé Gold Belt June 2020
Lima Property: Bulk Sampling Toward Near-term Production Targeting a Low-cost Producing Gold Project Free-digging open-pit operation. No blasting. Targeting a low-cost production scenario Established Mining District The Lima property occurs in a +100km long belt of producing laterite deposits The property is adjacent to a producing mine within the productive Poconé mining district Bulk Sampling to Test Laterite Potential Bulk sampling to test the Laterite potential of a major cross structure adjacent to a producing low-cost gold mine Undeveloped Exploration Opportunity to Identify and Develop a Major Gold-Vein Project Kinross and Fomentas are actively exploring in the belt Lima Property │ VQA - TSX.V │ VRSCF - OTCQB 2 June 2020
Terms and Use of Proceeds VQA buys 100% of Poconé Mining for CAD 500k purchase price The Poconé Mining Team will operate the project for a monthly fee and retains a 1.5% NSR on the project Initial Raise into VQA - Use of Proceeds (in CAD) $500,000 – Purchase payment $150,000 – Property Exploration in preparation for Bulk Sampling $100,000 – Working Capital C$750,000 TOTAL Lima Property │ VQA - TSX.V │ VRSCF - OTCQB 3 June 2020
Poconé: A highly prolific gold mining district in Brazil Exceptional Location The Poconé region has a rich history of gold production since the 18 th century. Simple Mining / Immediate Cash-flow Free-digging open-pit operation. No blasting. Underdeveloped Opportunity A low-cost processing plant can be installed within less than two months for minimal capex. Mine in the Poconé District Unexplored Hard-rock Potential Analogous setting to Kinross’ Paracatu Mine, (8.1Mozs P+P reserves) located 800km east. Mine in the Poconé District Excellent Infrastructure Poconé has well-developed infrastructure with access to power, water, major highways, airports and highly skilled labour and experienced operators. Mine in the Poconé District Lima Property │ VQA - TSX.V │ VRSCF - OTCQB 4 June 2020
Gold Mining in Brazil Favorable geology with several major Archean greenstone and Proterozoic sedimentary-hosted gold districts Significant Au production – 85 metric tonnes in 2019 Major miners include: Kinross; Vale; Mato Grosso Anglogold Ashanti; Lundin Mining; Yamana; and Great Panther Favorable mineral title Favorable foreign ownership – Tax agreements between Canada and Brazil Significant untapped potential (e.g. Poconé-Cuiabá gold belt) Lima Property │ VQA - TSX.V │ VRSCF - OTCQB 5 June 2020
Lima Project - Mato Grosso State, Brazil The Lima project area, Poconé District is located in central Brazil’s Cuiabá Mato Grosso Basin (Baixada Cuiabana), in the southern part of the state of Mato Grosso The Project is situated just 10 minutes from Poconé, a mining town of 32,000 Excellent infrastructure with road Cuiaba Basin access to the project area via paved (Poconé District) and gravel roads Daily scheduled flights from an airport located in Cuiabá, the State Capital, Lima Project just 104km north and connected to the principal cities of Brazil by daily scheduled airline flights Mining friendly environment Lima Property │ VQA - TSX.V │ VRSCF - OTCQB 6 June 2020
The Poconé Belt Similar geological setting to Kinross’ Paracatu mine Veins are hosted by Proterozoic Cuiabá schist, which extends for approx. 120 km from the area of Cuiabá southwest to Poconé The Poconé region has produced gold since the 18 th century Numerous producing and historic Garimpo gold operations ~50 active open-pit mines in 12 clusters Historic production of 6-12 million Pocone District ounces of gold Lima Property │ VQA - TSX.V │ VRSCF - OTCQB 7 June 2020
The Poconé District Poconé has 17 registered small- scale mining operations, with an estimated annual gold production of over 250,000 ounces Easy access to and from the project Electricity is available throughout the area with an ample supply of water for use in mineral processing Two sub-parallel gold trends Several large Garimpos indicates a large and significant gold district Lima Property │ VQA - TSX.V │ VRSCF - OTCQB 8 June 2020
Typical Poconé Mining Operations Easy Mining • Free-digging open-pit operation • Deeply-weathered, no blasting • Typically mining to 30m depth Grade control at face • Average regional grade is 1-2 g/t gold • Excavator operator controls grade Simple processing • Hammer mill • Ball mill • Cyclone • Concentrator Lima Property │ VQA - TSX.V │ VRSCF - OTCQB 9 June 2020
Lima Project – Overview Areas of Active 172 ha freehold property Production No debt Main grid energy supply Water supply All other infrastructure readily available Test Pits Gravity processing plant can be purchased for less than BRL 1m (CAD 250k) and operational within less than two months 300m Lima Property │ VQA - TSX.V │ VRSCF - OTCQB June 2020 10
Lima Project A rare opportunity to acquire a production-ready gold mine at exceptionally attractive terms Simple project, attractive fundamentals, proven team, and compelling economics: 172 ha freehold property No debt, no underlying royalty Simple free-digging open-pit, Edmur Mine Paracatu-style mineralization Minimal exploration for sulphide vein potential Edmur Mine Less than 5 ha of the total 172 ha project area have been mined so far Management team with 14 years of experience in Brazil, living in Poconé Lima Property │ VQA - TSX.V │ VRSCF - OTCQB 11 June 2020
Hard Rock Analogue – Paracatu Au Mine Kinross Paracatu Gold Mine - Kinross Gold Corporation ~8Moz Au - Past Production 8.1Mozs Au Proven and Probable Reserve 4.1Mozs Measured and Indicated Resource Hard Rock Potential - The Paracatu deposit is a world-class Proterozoic Gold Deposit identified which shares many characteristics with the veins systems of the Cuiaba Basin (e.g. Pocone Deposits) Lima Property │ VQA - TSX.V │ VRSCF - OTCQB 12 June 2020
Summary Immediate Opportunity to Buy Into a Low-cost, Near-term Production Scenario Free-digging open-pit operation. No blasting. Bulk Sampling Provides a Pathway to Production Initial area identified for Bulk Sampling Fast-track to test-processing as prospective structures and veins are identified Undeveloped Exploration Opportunity to Identify and Develop a Major Gold-Vein Project Intense weathering decomposes waste rock around auriferous veins, enriching these surface deposits. Underlying hard rock vein mineralization is typically lower grade but can form much larger deposits. Vein systems in the Poconé District are part of a +100km long belt of producing laterite/saprolite deposits with little or no “Hard Rock” testing beneath the mined laterite deposits. Lima Property │ VQA - TSX.V │ VRSCF - OTCQB 13 June 2020
The Poconé Mining Team Richard Crew Mr Crew, a British mining engineer, has a wealth of knowledge of Brazilian mining operations built up over 30 years in both open pit and underground mines. Most recently, he was COO for ASX-listed Orinoco Gold. Prior to this, he was General Manager Projects for the Sáo Bento Group, a private mining group operating two gold mines in the states of Mato Grosso and Para producing a combined total of 100,000oz per annum of gold. In this role, he successfully managed a Bankable Feasibility Study and construction of a 2Mtpa gravity/CIL processing plant and mining operations. He has previously held a wide range of senior operational and executive positions internationally for AIM, TSX and ASX listed companies. Mr Crew holds a City and Guilds engineering diploma from Cornwall technical college / Camborne school of mines and AACA Level 3 from the Open University. and speaks fluent Portuguese. Jeremy Gray Mr Gray has been involved in mining for 26 years. He started his career at Credit Suisse in Melbourne in 1994 as a Mining Research Associate before moving to London to run the Mining Equity research team at Morgan Stanley. In 2001, he joined Sthenos Capital as a founding partner of a Hedge Fund with focus on Mining and Basic Materials trading. In 2005, Mr Gray returned to Credit Suisse in London to run the Mining team. In January 2009 he joined the world’s largest cobalt producer at the time in DRC before it was acquired by ENRC in September 2009. In 2010, Mr Gray joined Standard Chartered in Hong Kong to run the Mining team, and in 2014 he became a founding partner of Chancery Asset Management in Singapore. For the last 3 years he has also worked as a Director of a Singapore- based gold Streaming & Royalty company. Mr Gray sits on the boards of Axiom Mining and White Rock Minerals that both trade on the ASX. Lima Property │ VQA - TSX.V │ VRSCF - OTCQB 14 June 2020
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