RNC Update Conference Call True North Nickel Transaction Nickel - PowerPoint PPT Presentation

RNC Update Conference Call True North Nickel Transaction Nickel Market Update June 2, 2014

Disclaimer Cautionary Statement Concerning Forward-Looking Statements This presentation contains "forward-looking information" including without limitation statements relating to the completion of the transaction contemplated by the LOI, the potential of the West Raglan Project and the outlook for the nickel market. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RNC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: failure of the parties to sign definitive agreements and satisfy conditions of closing; future prices and the supply of metals; the results of drilling; inability to raise the money necessary to incur the expenditures required to retain and advance the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to RNC's filings with Canadian securities regulators available on SEDAR at www.sedar.com. Although RNC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this presentation and RNC disclaims any obligation to update any forward- looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. Cautionary Statement Concerning LOI The LOI does not constitute a binding agreement or commitment of any nature between the parties respecting a transaction. The transaction is subject to the parties respective due diligence investigations and the entry into a Definitive Agreement on customary terms. The transaction will be subject to TSX approval. There is no assurance that the transaction will be completed as planned or at all. Information Concerning West Raglan Property: Information concerning the West Raglan property in this presentation is taken from sources, some of which are historical, that RNC believes to be reliable, but RNC has not verified the information and does not assume responsibility for such third party information. The proximity to Glencore’s Raglan Mine and Jilin Jien Nickel’s Nunavik Mine does not mean the West Raglan project will obtain similar results. West Raglan is an exploration project without any current resource estimates and there is no certainty that any such estimates will ever be established . NI 43-101 Compliance The disclosure of the technical information contained in this presentation has been approved by Alger St-Jean, P. Geo., Vice President Exploration of RNC, and a Qualified Person under NI 43-101. TSX: RNX www.royalnickel.com 1

Summary  RNC’s LOI to acquire a controlling stake in privately held True North Nickel and its West Raglan project is another step forward to become the nickel-focused leader in the Canadian base metals market  Provides exposure to a 2 nd drill-ready project in another world class high grade nickel-PGM camp  Provides a 3 rd asset which allows the company to take advantage of a rapidly improving nickel (and PGE) market about to enter a multi-year period of structural shortfall in supply  RNC is pleased to welcome Donald McInnes and Mark O’Dea, both with proven track records of building companies and shareholder value creation, into the organization  Donald McInnes will be appointed to the Board of Directors at closing  Mark O’Dea will be appointed as a Special Advisor to the Board of Directors at closing  Dumont project advancing on multiple fronts  First two phases of public hearing process successfully completed. Final phase scheduled for June 12 th . Remain on schedule for permits by year-end.  Recent trip to Japan and Korea has successfully generated further interest from multiple potential partners in each country as market reality of Indonesia ban becoming clearly understood  Awarded contract for detailed engineering for long-lead items to Ausenco  Nickel market continues to rapidly improve. Since our last update call just 2 months ago in April,  1.8% saprolite ore price have more than doubled  No additional ore from Philippines as YTD April imports into China are unchanged www.royalnickel.com 2

TNN Transaction Overview  RNC has signed a non-binding letter of intent to acquire a 56% interest in True North Nickel from a shareholder group led by Donald McInnes, Co-Chairman and CEO, and Mark O’Dea, Co-Chairman of True North Nickel  Letter of intent signed with 6 primary shareholders holding 39% of the outstanding shares of True North Nickel  RNC will issue 0.3389 shares per TNN share. Acquisition of 56% interest will result in the issuance of approximately 5.6 million RNC shares. Additionally, RNC expect to issue  0.38 million and 0.55 million replacement options with exercise prices of $0.74 and $1.48, respectively  0.25 million and 0.66 replacement warrants with strike prices of $1.48 and $2.07, respectively  At closing, Donald McInnes will join the Board of Directors of RNC and Mark O’Dea will be appointed as a Special Advisor to the Board of Directors  Execution of definitive agreements expected on or about June 5, 2014  Minimum closing condition of not less than 50.1% on a fully diluted basis  Successful completion of due diligence  Transaction will result in less than $100K in expenses for Royal Nickel in 2014 www.royalnickel.com 3

West Raglan Rich Nickel, PGE District  Cape Smith Belt host to prolific, high-grade, polymetallic nickel deposits and includes two operating mines  Raglan ore grades among the highest of significant global nickel deposits  West Raglan located 40 km from Glencore’s Raglan Mine property  Glencore is world’s fifth largest nickel producer  Raglan is a first quartile cash cost operation 1 The proximity to Glencore’s Raglan Mine and Jilin Jien Nickel’s Nunavik Mine does not mean the West Raglan project will obtain similar results. West Raglan is an exploration project without any current resource estimates and there is no certainty that any such estimates will ever be established. 1 According to Q1-2014 WoodMac report www.royalnickel.com 4

West Raglan – Multiple Targets Outcropping Sulphide Mineralization 7 mineralized zones identified across the property  Outcropping sulphide mineralization across more than 35km of strike, very limited testing  Magnetic signatures, lithogeochemistry, and geology same at Frontier and Raglan  Strong potential for additional tonnage, two new untested zones at surface at Beverly and Red  South part of property has magnetic and till anomalies suggestive of Nunavik Mine (South Trend) style mineralization (large tonnage, high Cu and PGM) www.royalnickel.com 5

West Raglan Multiple High Grade Lens Targets Frontier Zone High-grade Lenses  Five key mineralized lens clusters  2,500 metre strike extent has five stacked mineralized target horizons  High-grade (2-3% Ni, 3+ g/t PGE) sulphide lenses outcropping  High priority targets modelled from BHEM and 3D magnetic inversion suggest vast potential remains above 250 metres depth See slides 17 and 18 for drill hole details www.royalnickel.com 6

Donald McInnes, Mark O’Dea Joining RNC Team Both Mark O’Dea and Donald McInnes have proven track records as company builders and creators of significant shareholder value creation  Donald McInnes will be joining the RNC Board of Directors upon closing of transaction  Mr. McInnes has more than 20 years’ experience in natural resource development including founding Kutcho Copper Corp. (formerly Western Keltic Mines Inc.) and Plutonic Power Corp., a renewable power development company with a broad portfolio of clean energy projects.  Mr. McInnes is currently Vice-Chairman of Alterra Power Corp, Chairman of the Clean Energy Association of British Columbia, and a Director of Pilot Gold and True Gold Mining. Mr. McInnes is also a past President and Director of the AMEBC, and past Director of the PDAC and a past Governor of the Business Council of British Columbia.  Mark O’Dea will be appointed as a Special Advisor to RNC upon closing of the transaction  Dr. O’Dea has created and led a family of strong, well -financed resource companies focused on the discovery and advancement of gold, copper, uranium and nickel projects around the world. He was co-founder and CEO, of both Fronteer Gold Inc. and Aurora Energy Resources Inc., which were sold to Newmont Mining Corp. and Paladin Energy Ltd. respectively in 2011.  Dr . O’Dea is Founder of Oxygen Capital Corp. and plays leadership roles in all Oxygen companies. He is currently Co-founder and Chairman of Pilot Gold, Executive Chairman of True Gold Mining, and Director of Laurentian Goldfields. www.royalnickel.com 7