Phase
Cautionary Statement The following presentation may include certain “ forward-looking statements ” within the meaning of the United States Private Litigation Reform Act of 1995 and applicable Canadian Securities Laws. All statements other than statements of historical fact, included in the presentation, including without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Search Minerals, are forward-looking statements. Words such as “ expect ” , “ anticipate ” , “ estimate ” , “ may ” , “ will ” , “ should ” , “ intend ” , “ believe ” and other similar expressions are forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather reflect our current views with respect to future events and are subject to risks, uncertainties, assumption and other factors, and actual results and future events could differ materially from those anticipated in such statements. There can be no assurance that such forward-looking statements will prove to be accurate. We base our forward- looking statements on information currently available to us and we do not assume any obligation to update them, except as required by law. In the event that we use certain terms in this presentation such as “ resource ” , An additional Cautionary Note to Investors: “ measured resource ” , “ indicated resource ” and “ inferred resource, ” US investors are cautioned that, while such terms are recognized and required by Canadian Securities Laws, the United States Securities and Exchange Commission does not recognize them. Under U.S. standards, mineralization may not be classified as a “ reserve ” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination has been made. U.S. investors should not assume that all or any part of measured or indicated resources will ever be converted into reserves. In addition, “ inferred resources ” have a greater amount of uncertainly as to their existence and as to whether they can be mined legally or economically. Accordingly, information concerning descriptions of mineralization in the presentation may not be comparable to information made public by companies that are subject to the SEC ’ s Industry Guide 7. All of the scientific and technical information contained herein has been reviewed and/or prepared by either Dr. Randy Miller, P.Geo. or Dr. David Dreisinger, both being a “ Qualified Person ” within the meaning of National Instrument 43-101-Standards of Disclosure for Minerals Projects. For further details of the Company ’ s procedures and policies for data verification, the reader is referred to the Company ’ s news releases and other material information available on the Company ’ s website at www.searchminerals.ca or on SEDAR at www.sedar.com 2 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018 SMY: TSX-V
About Search Minerals Inc. ▪ Focused on developing and continued exploration within the emerging Port Hope Simpson Critical Rare Earth Element (CREE) District of SE Labrador. ▪ Primary objective: Extend the Mine life of District to greater than 14 years, with the development of Foxtrot and Deep Fox as the initial projects ▪ In February 2017, pilot plant testing clearly demonstrated the ability to produce a high purity mixed rare earth oxide (REO) concentrate from over three tonnes of Foxtrot material. ▪ October 2017, InCoR Holdings make strategic investment into Search and appoints 2 members to the Board. Search will continue to seek out value-add partners and to delineate prospects that will ensure competitive low-cost production well beyond the 14-year mine life contemplated in the PEA. ▪ Search has strong working relationships with government partners at all levels (including Atlantic Canada Opportunities Agency, InnovateNL, Department of Natural Resources, NunatukaVut Community Council) 3 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018 SMY: TSX-V
The Opportunity ▪ Control of a 70 km x 8 km Critical Rare Earth Element District ▪ Preliminary Economic Assessment on Foxtrot Deposit ▪ Low Initial Capital Cost $152M ($CDN) (including $33M contingency) ▪ After-Tax Payback Period – 4.4 years ▪ Foxtrot and Deep Fox are Two of Three Significant Discoveries in the Distric t ▪ Deep Fox – Resource expected 2019 ▪ Fox Meadow – Preparing for drill ready ▪ Breakthrough Hydrometallurgical Process (US Patent Pending) ▪ $1.9M ($CDN) pilot plant project successfully completed in February 2017 ▪ Produced a high purity (98.99%) mixed rare earth oxide concentrate for further refining ▪ the resulting dry stackable residue is environmentally friendly ▪ Upward trending spot Nd/Pr oxide prices, at 3 year highs, up 50% YTD ▪ Experienced Management, Board and Technical Teams ▪ Mining Friendly Jurisdiction – Supportive Indigenous and Local Communities 4 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018 SMY: TSX-V
Exploring for REE in Labrador since 2009 Community of St. Lewis 12 km from the Foxtrot and 2 km from Deep Fox 5 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018 SMY: TSX-V
REEs: Critical for the 21 st Century Green Energy The Toyota Prius is estimated to contain: • Hybrid and Electric Vehicles 1 kg Neodymium Metal • Wind Energy 15 kg Lanthanum Metal 0.1 kg Dysprosium Metal • Energy Efficient Lighting Sales exceed 1 million units per annum Military and Defense Each F35 fighter aircraft requires 417 kg of REEs Each US nuclear submarine requires about 4,000 kg of REEs • Communications • Aeronautical engineering and Jet Engines • Guidance, Lasers, Sonar, Optics, and Electronic Counter Measures Modern Technologies • Cell Phones and Digital Cameras • LCD and Plasma Televisions • MRI machines, X-Ray, and PET Medical imaging 6 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018 SMY: TSX-V
About Rare Earth Elements (REEs) Search Minerals is positioned to supply the rare earth elements, Nd, Pr,Dy,Tb for the upwarding trending permanent magnet market “ China is likely to become a net importer of certain rare earths by 2020” Adamas Intelligence – November 2017 Report Source: Adamas Intelligence 7 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018 SMY: TSX-V
REEs: Automakers committed to EV Future ▪ Volkswagen US$84 billion: goal of bringing 300 EV models to market by 2030 ▪ Ford investing $4.5 billion over 5 years: on 13 new models for 2023 ▪ GM to phase out ICE vehicles; 20 EV models by 2023 ▪ Volvo : all new cars produced after 2019 will be electric or hybrid ▪ BMW to mass produce EVs by 2020: 12 different models available by 2025 ▪ Mercedes-Benz : electrifying its entire lineup by 2022 ▪ Canada’s Magna and Linamar: investments in EV supply chains 8 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018 SMY: TSX-V
REEs: EVs Pressure on Material Supply 9 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018 SMY: TSX-V
Market Dynamics ▪ China produces 90% and consumes 60% of the world’s REEs. ▪ Global REE Market – Est. $ 3B-$5B ▪ China has the majority of Rare Earth Oxide refining capacity. ▪ Lynas Corporation (Australia) only significant REE producer outside of China. 10 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018 SMY: TSX-V
Our Assets - District Scale Opportunity ▪ Search controls a 70 km x 8 km CREE District at tidewater Key Points Over 20 prospects so far. Three major discoveries • Foxtrot Deposit • Deep Fox • Fox Meadow (2016) Excellent geological and geophysical control. April 2016 PEA is based on the Foxtrot deposit only. 11 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018 SMY: TSX-V
Foxtrot, Deep Fox and Fox Harbour House 12 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018 SMY: TSX-V
Our Assets – Foxtrot Deposit • Foxtrot Deposit lies within the Fox Harbour Volcanic belt. Delineated by over 70 drill holes, geological mapping and geophysics • Accessible location with high grade zones containing significant quantities of CREEs 13 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | November 2018 SMY: TSX-V
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