MINES & MONEY NEW YORK - MAY 1 ST , 2019 We track on over 1,400 - PowerPoint PPT Presentation

MINES & MONEY NEW YORK - MAY 1 ST , 2019

We track on over 1,400 Logged +32 500 deals In-house data analyst ▪ ▪ ▪ companies on the TSX, since 2011 Consulting on capital raises ▪ TSX-V, and the CSE Data-driven approach to and ancillary aspects ▪ Provide sector and broker examining financings ▪ reports 2

J U N I O R M I N I N G M A R K E T CAD market cap CAD financing 3

Weighted Index Factors: 1. Total $s of financings opened 2. Percentage of broker participation 3. Total # of deals opened 4

Cannabis & related Mining companies 221 transactions • $217mn raised • 270 transactions • 60.5% of all trading volume • Technology 18.9% • Mining 11.8% • 76% of the overall capital raised • $3.99bn (!) of a total of $5.22bn • Curaleaf Holdings - $520mn • Acreage Holdings - $416mn • Harvest Health & Recreation - • $288mn Photo: welovecycling.com 5

6 Source: TMX “The Buy Side Report” Q1 2019

7 Source: TMX “The Buy Side Report” Q2 2016

240 216 100 98 84 47 22 13 2016 2017 2018 2019 # of Brokered Deals # of Bought Deals Source: Oreninc; as of April 25, 2019 8

Total $s raised 2011 – 2019* 8.030.202.457 4.818.973.410 4.599.672.255 -40% 4.608.771.065 3.241.719.020 2.757.666.240 2.406.223.411 2.289.669.877 635.208.916 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Oreninc; as of April 25, 2019 *includes Common & Flow-Through, ex Oil & Gas & Frack Sand 9

Total # of Deals 2011 - 2018 1485 1485 1440 1397 1205 1181 167 closed 1008 1005 deals < C$ 1mn 284 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Oreninc; as of April 25, 2019 *includes Common & Flow-Through, ex Oil & Gas & Frack Sand 10

Average Deal Size 2011 - 2018 $5.576.529,48 $3.292.535,62 $3.245.099,94 $3.103.549,54 $2.743.946,51 $2.690.223,25 $2.387.126,40 $2.236.651,11 $1.938.755,19 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Oreninc; as of April 25, 2019 *includes Common & Flow-Through, ex Oil & Gas & Frack Sand 11

Jan-Apr 18 7.4% $5,00 20,0% Billions 18,7% $4,50 18,0% $4,00 16,0% 15,5% $3,50 14,0% $3,00 12,1% 12,0% 11,1% $2,50 10,0% 10,0% $2,00 8,0% FT 77mn $1,50 6,0% $1,00 4,0% $0,50 2,0% $- 0,0% 2015 2016 2017 2018 2019 Common Flow-Through FT in % of total Source: Oreninc; as of April 25, 2019 12

235 Financings 1/1 Warrant 1/2 Warrant 2019 76% 119 60 No. of Financings Premiums up Average Premium 73% 61% Terms remain Average Term 27.9 mo. 26.4 mo. 731 Financings 1/1 Warrant 1/2 Warrant 2018 80% 363 216 No. of Financings Premiums low Average Premium 56% 28% Terms acceptable Average Term 27.7 mo. 25.6 mo. 13

Deals with Warrants 60% 51% 50% 49% 48% 50% 40% 30% 29% 30% 26% 25% 24% 23% 22% 21% 20% 10% 0% 1/1 1/2 0 2016 2017 2018 2019 Source: Oreninc; as of April 25, 2019 14

WARRANT OVERHANG NO WARRANTS OUTSTANDING vs 82mn warrants outstanding 36mn warrants @ $0.10 - expiry in May - July 2019 15

Average Length of Offering 90 80 70 60 # of Days 50 40 30 20 10 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 [$0m, $2m) [$2m, $5m) [$5m, $10m) [$10m, $20m) [$20m, $50m) [$50m, $100m) Linear ([$0m, $2m)) Linear ([$2m, $5m)) Linear ([$5m, $10m)) Linear ([$10m, $20m)) Linear ([$20m, $50m)) Linear ([$50m, $100m)) 16

 Commodity & Jurisdiction  Overburdened management team  Capital Structure, less than 100mn shares  Joint-Venture or Strategic Partner for 19.9% Example. Cash $2.000.000,00 $1.800.000,00 Re-pricing $1.600.000,00 $1.400.000,00 of warrants $1.200.000,00 No $1.35 to $1.000.000,00 news $0.20 $800.000,00 promo $600.000,00 $400.000,00 $200.000,00 $- 01. 01. 01. 01. 01. 01. 01. 01. 01. 01. 01. 01. 01. Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan 18 18 18 18 18 18 18 18 18 18 18 18 19 *Source: Stockwatch & SEDAR 17

Lundin Gold Inc. 46.575.000,00 Financial backing by Lundin family Bonterra Resources Inc. 28.000.050,00 Financial backing by Sprott Gabriel Resources Ltd. 26.300.000,00 Bluestone Resources Inc. 22.426.651,00 Discovery Group – John Robbins Barkerville Gold Mines Ltd. 20.000.160,00 Financial backing by Osisko NGEx Resources Inc. 20.000.000,00 Financial backing by Lundin family Alphamin Resources Corp. 15.960.000,00 Northern Dynasty Minerals Ltd. 15.453.125,00 Victoria Gold Corp. 15.004.300,00 Financial backing by Osisko Victoria Gold Corp. 15.000.000,00 Financial backing by Osisko Reunion Gold Corporation 13.093.500,00 Strategic investment by Barrick Gold Standard Lithium Ltd. 11.390.500,00 Premier Gold Mines Limited 11.056.500,00 Producer, Strong management team Nouveau Monde Graphite Inc. 10.298.875,00 Northern Dynasty Minerals Ltd. 9.400.000,00 Bonterra Resources Inc. 8.741.046,00 Financial backing by Sprott Irving Resources Inc. 8.025.761,00 Strategic investment by Newmont Goldsource Mines Inc. 7.479.600,00 Strong management team Kootenay Silver Inc. 7.043.332,00 Financial support out of Europe Rio2 Ltd. 7.000.000,00 Strong management team 18 18 Cantex Mine Development Corp. 6.014.000,00

▪ Strong backing by a financial group or strategic partner ▪ Joint-Venture or Strategic Partner ▪ Jurisdicition ▪ Management ▪ Capital Structure ▪ Balance sheet

CASH CA SH CR CRUNCH LO LOOMIN ING ACC CCESS TO FINANCIN INGS FLO LOW – THROUGH Exploration companies financed Few remaining institutional Financing form will remain in 2016 & 2017 are running out of investors will have easy access to extremely important. capital. deal flow, retail less so. Emergence of deal clubs. *Globe and Mail, November 15, 2018

Kai Hoffmann CEO, Oreninc E: hoffmann@oreninc.com @oreninc @oreninc C: +1 604 687 3520 ext. 227 Youtube.com/ @oreninc oreninc Visit our website at: oreninc.com Subscribe to our newsletter at: oreninc.com/subscribe 21

Icon 1 & 2 made by Geotatah from Flaticon • Icon 3 made by icongeek26 from Flaticon • Social media icons by Freepik from • Flaticon 22