May 29, 2012 May 2012 A North American Near Term Copper Developer - PowerPoint PPT Presentation

May 29, 2012 May 2012 A North American Near Term Copper Developer

Cautionary Notes Forward-Looking Statements Statements in this presentation other than purely historical information, including statements relating to the Company’s future plans, objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to the risks and uncertainties inherent in the Company’s business, including risks inherent in exploration and development, and uncertainties in connection with anticipated commodity prices, growth of worldwide market demand, exploration capital requirements, length of asset life and availability of qualified personnel, among others. As a result, actual results may vary materially from those described in the forward-looking statements. Resources and Reserves The resource estimates described in this presentation have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and uses the terms “mineral reserves” and “mineral resources” . Investors are cautioned of the difference between the terms “mineral resources” and “mineral reserves” as “mineral resources” do not have demonstrated economic viability like that of “mineral reserves” . Bill Willoughby, PhD, PE, Enexco’s Chief Operating Officer and Director, an NI 43-101 Qualified Person, supervised the preparation of and verified all technical information contained in this presentation. 2

Enexco Overview Contact Copper Project  Focused on advancing the 100% owned Contact Copper Project in northeast Nevada towards production  Intrusive-related deposit, oxidized  PFS completed in Oct. 2010, BFS planned for 2012  Major land acquisition completed with Allied Nevada; step-out drilling underway to test expansion potential  Good resource upside; deposit open along strike and at depth Au-Ag and U Exploration Assets 3

Management Arnold Armstrong - President & CEO, Chairman  Extensive legal career. Owner of Armada Investments Ltd. and Founding Director of Silvercorp Metals Inc. (NYSE – SVM). Chairman & Director of Doxa Energy Ltd., Elissa Resources Ltd., and Director of Paget Minerals Corp.  Recognized leader in founding and managing successful public companies in natural resource sector Bill Willoughby - Chief Operating Officer, Director  Mining engineer with 32 years experience. PhD in Mining Engineering from the University of Idaho. Registered Professional Engineer in Idaho. Director of Enexco since 2008  18 years with Teck Cominco: Chief Mine Engineer, Pend Oreille Mine; Mine Superintendent, Polaris Mine; Senior Engineer, Projects and Evaluations, responsible for feasibility studies, mine design Dan Frederiksen - Chief Financial Officer, Director  20 years senior accounting experience. CA, CPA, CFA, Bachelor of Business Administration. Director and CFO of Elissa, Enexco, and Doxa Energy and Controller of Armada Investments Ltd. 4

Directors Arnold Armstrong Chairman of the Board Bill Willoughby Director Dan Frederiksen Director Jim Gibbons Director, Senior Advisor Geologist, lawyer, former Governor of Nevada Terry Hodson Director Geologist, General Manager of Geology for Baja Mining Brad Armstrong Director Environmental Law, Partner Lawson Lundell LLP Paul McKenzie 20+ years experience in the resources sector Director 5

Share Structure Shares Outstanding 32,348,883 Major Shareholders Officers and Shares Fully Diluted 38,248,883 23.5% Directors Treasury C$ 1.9 Million Allied Nevada Gold 10% Market Cap C$19.4 Million 1 Year Stock Chart – TSX.V: IEC Note: Post-financing and following completion of land acquisition from Allied Nevada 6

Contact Copper Project  A feasibility stage, oxide copper project • 100% owned, located in Elko County, Nevada • Intrusive-related deposit, oxidized down >2,000 ft. • Amenable to heap-leaching to produce copper cathode • Excellent infrastructure in roads, power lines, water  2010 Pre-feasibility study update: • Reserves of 317 Mlbs Cu • Measured & Indicated Resources of 711 Mlbs Cu, plus Inferred Resource of 291 Mlbs Cu  Recent land acquisition from Allied Nevada; likely to have significant impact on mine optimization • Acquired 8,000 acres of additional land • BFS scheduled for 2012 to incorporate additional drilling on acquired land 7

Geology  Intrusive-related copper deposit, 2010 Reserve Outline oxidized down ~2,000 feet  Copper mineralization in quartz veins, and as fracture coatings and disseminations within granodiorite host  Oxide mineralization open along strike to the east and west, also open at depth East End West End  Additional copper oxide potential in satellite areas  Deeper sulfide porphyry and vein targets Copper Ridge identified to the north and south of main resource area North Porphyry Target N EN-88 Looking west EN-156 Rhyolite K-alteration 2010 Granodiorite Reserve Quartzite Outline Carbonate Vein Target A’ A 8

2010 Reserves and Resources  Resources from Oct. 2010 NI 43-101 Category Tons Cu (%) Pounds Cu PFS update Reserves Proven  27,011,000 0.305% 164,701,000 Resources and Reserves reported at 0.10% Cu cut-off Probable 27,138,000 0.280% 152,199,000 Total P&P 54,149,000 0.293% 316,899,000 Resources Measured 52,976,000 0.282% 298,397,000 Indicated 82,233,000 0.251% 413,413,000 Total M&I 135,209,000 0.263% 711,810,000 Inferred 53,490,000 0.272% 291,368,000 9

2010 PFS (Pre-Allied Nevada Transaction)  NI 43-101 Pre-feasibility Study Update completed by Metric Value Gustavson Associates in October, 2010  Project NPV sensitive to the price of copper Production Start 2014  PFS analysis does not include potential impact of Mine Life 10 years Allied Nevada land acquisition deal Production 25 Mlbs/yr cathode copper Capex $86M NPV-10% $ x1000 Recovery 76% Acid Consumption 11 lb/ton Base Case NPV at $2.25/lb Production Cost $0.93/lb Cu NPV 10% @ $2.25/lb Cu $44M IRR 20.2% Copper Price $/lb 10

Allied Nevada Transaction  Allied Nevada land acquisition deal closed Sept. 26, 2011 • IEC issued 3.2M shares to 2010 Pit Outline Allied Nevada  Enexco now controls majority of the Contact mining district  Increased land holdings from 5,400 acres to ~13,000 acres  Pit outline no longer constrained by Allied Nevada land Enexco Allied Nevada Gold 11

Post-Acquisition Exploration  Following Allied Nevada land acquisition: 2010 Pit Outline East • Defined drill targets Extension Target • Began 2011-2012 drill program • On-going metallurgical tests and environmental work • Refining geologic model and incorporating drill results • Preparing to revise reserves and mine plans for feasibility study 12

2011-2012 Drill Program  40,000 ft (12,192 m) Drill Program Near Completion  Initial drilling east of the 2010 reserve outline Intercepts Reported To-Date ENR-3 45 feet (13.7 m) 0.92% Cu ENR-6 55 feet (16.7 m) 0.43% Cu ENR-8 130 feet (39.6 m) 0.24% Cu ENR-15 95 feet (29.0 m) 0.40% Cu ENR-26 70 feet (21.3 m) 0.48% Cu ENR-27 170 feet (51.8 m) 0.24% Cu ENR-30 110 feet (39.6 m) 0.31% Cu 13

Project Timeline H2/2011 H1/2012 H2/2012 H1/2013 H2/2013 H1/2014 H2/2014 H1/2015 Allied Nevada Land Acquisition Infill & Step-Out Drilling Metallurgical Testing Bankable Feasibility Study Permitting Construction Production 14

SX-EW Peers SX-EW Copper Annual Cash Cost Capex Recovery NPV (US$) Project Production (US$/lb Cu) (US$) El Pilar (Mercator) 73 Mlbs Cu 56% $1.37 $245M $335M (3) Franke (Quadra) 35-45 Mlbs Cu (1) 86% $2.45 (2) $239M $234M (4) $148M (5) Piedras Verdes (Priv.) 70 Mlbs Cu 62% $1.41 $135M Source: Company and Technical Reports Note: (1) 2011 Guidance (2) FY 2010 (3) NPV(8%) at $2.60/lb Cu LT (4) RBC Research at $2.25/lb Cu LT (5) NPV(12.5%) at $2.00/lb Cu LT 15

M&A in the Copper Sector  Target Acquirer Numbers of peers in the development and intermediate 2011 Transactions Norsemont Mining Inc. HudBay Minerals Inc. production space have Explorator Resources Inc. Sociedad Punta Del Cobre S.A. dramatically fallen off since Creston Moly Corp. Mercator Minerals Ltd. 2009 Far West Mining Ltd. Capstone Mining Corp. Equinox Minerals Ltd. Barrick Gold Corp.  Growth pipelines still required Anvil Mining Ltd. Minmetals Resources Ltd. for remaining junior producers 2010 Transactions Chariot Resources Ltd. CST Holdings Ltd. Terrane Metals Corp. Thompson Creek Metals Company Inc.  New junior producers needed to FNX Mining Company Inc. Quadra Mining Ltd. fill market gaps left by Continental Minerals Corp Jinchuan Group Ltd. acquisitions Globestar Mining Corp. Perilya Ltd. Antares Minerals Inc. First Quantum Minerals Ltd. Citadel Resource Group Ltd. Equinox Minerals Ltd. 2009 Transactions Centario Copper Corp. Quadra Mining Ltd. Sanu Resources Ltd. Canadian Gold Hunter Corp/ Stingray Copper Inc. Mercator Minerals Ltd. Kiwara Plc First Quantum Minerals Ltd. Corriente Resources Inc. CRCC-Tongguan Investment Co. Ltd. Source: Bloomberg 16

Junior Producers  Hypothetical impact of an additional 35 Mlbs Cu/yr to junior base metal producer profiles Source: Company Reports 17