Morien Resources Corp. 2017 Annual General Meeting Superior Assets è Highly Disciplined Strategy TSX-V: MOX www.MorienRes.com June 2017
Forward Looking Statements Some of the statements made by Morien Resources financial markets or general economic conditions; Corp. (“Morien”) in this presentation may constitute capital requirements and the need for additional "forward-looking information" as defined under financing; fluctuations in the rates of exchange for applicable securities laws. These statements reflect the currencies of Canada and the United States; prices Morien's current expectations of future revenues and for commodities including gold, coal and aggregate; business prospects and opportunities and are based on unanticipated changes in production, mineral reserves information currently available to Morien. Morien and mineral resources, metallurgical recoveries and/ cautions that actual performance will be affected by a or exploration results; changes in regulations and number of factors, many of which are beyond its unpredictable political or economic developments; control, and that future events and results may vary loss of key personnel; labour disputes; and ineffective substantially from what Morien currently foresees. title to mineral claims or property. There are other Factors that could cause actual results to differ business risks and hazards associated with mineral materially from those in forward-looking statements exploration, development and mining. Although include risks and uncertainties described in Morien’s Morien believes that the forward-looking information annual information form filed with the Canadian contained herein is based on reasonable assumptions, Securities regulators on SEDAR (www.sedar.com). readers cannot be assured that actual results will be Morien cautions that its royalty revenue will be based consistent with such statements. Morien expressly on production by third party property owners and disclaims any intention or obligation to update or operators who will be responsible for determining the revise any forward-looking information in this news manner and timing for the properties forming part of release, whether as a result of new information, Morien’s royalty portfolio. These third party owners events or otherwise, except in accordance with and operators are also subject to risk factors that applicable securities laws. Unless otherwise could cause actual results to differ materially from indicated, all dollar values herein are in C$. those predicted herein including: volatility in 2
Morien Resources Corp. Definition: A Canadian based mining development company that holds royalty interests in two (coal and aggregates) world class, tidewater accessed projects. The coal project recently commenced production and the aggregate project is expected to commence production in 2020. Morien’s management team exercises ruthless discipline in managing both the top and bottom halves of the financial ledger. Shareholder returns are paramount over corporate size, number or scale of assets and industry recognition. 3
Corporate Overview Ticker symbol TSX-V: MOX Shares outstanding 52.7 mln Shares fully diluted 57.9 mln Market capitalization $28 mln Free float $22 mln Cash $2.8 mln Marketable securities $400k Warrants nil Debt nil Major Shareholders Kameron Collieries 11.3% Morien management & directors 8.7% 7 Shareholders > 1 mln shares 18.4% 4
Donkin Coal Mine Project - Then 5
Donkin Coal Mine Project - Now 6
Donkin Mine in Production 7
Donkin Coal Mine - Update § Owner/Operator Kameron Collieries commenced Morien 2% to 4% Royalty production with a single continuous miner unit on February 28, 2017 Annual Royalty Revenue to Morien (Pre-Tax) 3 $10 $9 § Anticipated that four continuous miners will be $8 operational in 2018 $7 § Production expected to rise to 2.75 mln tonnes per $6 year over a 3 to 4 year period 1 $5 $4 § 25+ year life of mine 2 $3 § 64 employees/contractors now on site; projecting 135 $2 full-time employees at full production $1 $0 § Washplant to become operational in Q3-2017 0.50 1.00 2.00 2.75 Production (mln tonnes) § Significant upside to Morien with increase in coal price and/or production $70/t USD Coal Price 3 $100/t USD 1. Production volumes subject to change based on market conditions 2. Based on the Technical Report on the Donkin Coal Project prepared by Marston & Marston, dated June 2011, found on SEDAR and on Morien's website. 8 3. Valuation is subject to Kameron Collieries’ production plan and coal sales price.
Global Coal Trade 9
Coal Demand Growth - 2015 to 2030 Thermal Coal Demand Metallurgical Coal Demand Source: AME Group 10
Coal Pricing § Kameron expects Donkin to be marketable as both a high-energy thermal coal and as a high quality metallurgical coal with the following washed coal quality: 13,500+ BTU, 3.5% Ash, 37% Volatile Matter, 1.5-2.0% Sulphur, 8% Crucible Swelling Number, and 20,000+ ddpm Fluidity Coal Type Coal Quality $USD / tonne $USD / tonne (June 2017) (June 2016) Australian Premium Low-Vol Metallurgical 21% VM, 71% CSR $188 $99 (CFR basis, capesize freight to Rotterdam) US High-Vol A hard coking coal 32% VM, 30,000 Fluidity, $190 $91 (FOB US East Coast) 0.85% S, 7% Ash 19% VM, 58% CSR, 0.8% US Low-Vol hard coking coal $175 $89 S, 8% Ash (FOB Central Appalachians) 34% VM, 25,000 Fluidity, US High-Vol B hard coking coal $158 $83 (FOB US East Coast) 1% S, 8% Ash Thermal coal 10,800 BTU, 11% Ash, $78 $60 (CIF Rotterdam, from US East Coast) 0.7% S Source of information in table: S&P Global Platts, 11-May-2017 11
Black Point Aggregate Project 12
Black Point Aggregate Project § Owner/Operator - Vulcan Materials ($17 bln Black Point Peer Comparison market cap) § Massive Resource: 400+ mln tonnes of Class-A Annual Production (mln T) construction aggregate 1 16 § 50+ year life of mine 1 14 12 § Fully permitted in Q2-2016 10 § Project received positive federal and provincial 8 environmental permitting decisions in Q2-2016 6 4 § Capital Expenditure: $80 to $110 mln, with start- up scheduled for 2018 2 0 § Weight based production royalty Playa del Balcones, Beckmann, Susan Lake, Black Carmen, Cemex Top Martin Canada's Top Point Vulcan Top Quarry, Marietta Top Quarry, 5.0 mln T Quarry, Texas Quarry, Alberta § Anticipated Annual Royalty: $250k to $750k over capacity Mexico Texas 50 years 2 1. Resource estimate is not based on a NI 43-101 technical report. It is conceptual in nature and derived from internal estimates made by Morien and Vulcan. 2. Royalty income estimate based on Vulcan Materials annual production estimate for Black Point. 13
Where are we in the Black Point Process? April 2016 Spring 2018 • Project received positive • Vulcan Decision to Invest • Potential Site construction environmental permits Apr 2016 – 2018 Spring 2021 • Industrial and environmental • Operations and sales permitting continues • Market analysis 2070+ • Submerged land lease • Decommissioning • Environmental surveys • First Nations engagement • Fish habitat Fun Fact • Transport Canada • Wetlands Per Capita Aggregate Consumption • NS Power supply in Vulcan Served Markets • Final Investment Decision 5 to 7 tons per person per year 14
Vulcan in the Recovery Phase 15
Morien’s Project Generation § Focused on acquiring additional royalties to compliment existing portfolio § Morien does not compete where it can’t compete § Commodity Types: Industrial minerals Specialty / minor metals Bulk commodities Oil and gas § Jurisdictions Americas, Europe § Project Stage Producing or near-to-production assets § Owner Proven operating track record 16
P/NAV Multiple Comparison to Royalty Peers Morien Precious Metals Focus 3.0 3.0 2.5 2.5 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Morien 17
Normal Course Issuer Bid § 7.0 mln shares purchased since March 2015 at an average cost of $0.26/share § Morien continues to utilize its NCIB 1,200,000 $0.54 Number of Shares 1,000,000 $0.49 Share Price $0.44 800,000 $0.39 600,000 $0.34 400,000 $0.29 200,000 $0.24 - $0.19 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Aug-16 Nov-16 Dec-16 Apr-17 May-17 Jun-17 18
The Next 18 Months § First export of Donkin coal and receipt of $1.5 mln milestone payment § First royalty cheque from Kameron § Pursue accretive acquisitions to enhance royalty portfolio § Minimum quarterly royalty payment from Vulcan commencing in Q3 2017 1 § Prospective sale of 1,054 acres in Georgia USA § Final Black Point milestone of $400,000 from Vulcan Materials § Potential dividend on portion of royalty cash flow from Donkin § Continued share buy backs 1. Credited against future production 19
Share Performance 250% 200% Morien; 148% 150% Aurico; 129% 100% Eurasian; 74% 50% Solitario; 12% Sandstorm; 11% 0% Terraco; 8% Altius; -28% -50% -100% Share performance against royalty companies with less than $1 bln market capitalization 20
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