Strategic Metals Ltd. Corporate Presentation May 2017 TSX.V - SMD
Forward Looking Statements Certain information regarding the Company contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees. Discussion of the various factors that may affect future results is contained in the Company's Annual Report which is available at www.sedar.com. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. All technical information contained in this corporate presentation has been approved by Heather Burrell, B.Sc., P.Geo., a geological consultant to Strategic Metals and qualified person for the purposes of NI 43-101. 2 TSX.V - SMD
Investment Highlights • Innovative, well funded explorer with working capital of $39 million*. • Focused on Yukon, one of the hottest exploration areas in the world. • Major investments in precious metal companies working on promising deposits in other politically stable jurisdictions. • Stellar pipeline of more than 100 wholly-owned projects hosting a diverse suite of metals, many of which are permitted for large-scale drill programs. • Spin-out of Trifecta Gold in 2017. * Includes cash and marketable securities estimated as of May 24, 2017. The value of marketable securities fluctuates on a daily basis . 3 TSX.V - SMD
Management Team and Board • Extensive management knowledge and expertise W. Douglas Eaton, B.A., B.Sc . Partner of Archer, Cathro & Associates since 1981. Exceptional knowledge of President, CEO and Director Yukon geology and contributor to several important discoveries. Ian J. Talbot , B.Sc. , LLB. Geologist and lawyer. Practiced exclusively in mining and securities law. COO Former in-house counsel with BHP Billiton World Exploration Inc. Larry Donaldson , CPA, CA Chartered Professional Accountant. Extensive experience in public company CFO audits, and in accounting and tax planning for mineral exploration companies. Glenn R. Yeadon , B.Comm. LLB. Barrister and solicitor practicing primarily in the field of securities law. Partner Secretary and Director or associate with Tupper Jonsson & Yeadon since 1983. Richard Drechsler , B.Sc. Investor relations manager; First Nations and community liaison. Worked in the VP, Communications mining/mineral exploration industry since 2005. Bruce A. Youngman, B.Sc. Former President of Canplats Resources, acquired by Goldcorp for $300 million Director in 2010. Former President and VP of Northern Dynasty Minerals. Independent Directors : R.E. Gordon Davis , P.Eng. Former Chairman of Canplats Resources & VP of Cyprus Anvil Mining. Lee A. Groat , B.Sc, Ph.D. Geology Professor, University of British Columbia. Bruce J. Kenway , CPA, CA Chartered Professional Accountant and founder Kenway Mack Slusarchuk Stewart LLP. Ryan E. Schedler , B.Sc, MBA Investment Professional, Managing Director of Condire Investors. 4 TSX.V - SMD
Project Generation Archer, Cathro & Associates, has been the pre-eminent Yukon exploration consulting firm since 1965. Archer Cathro uses its knowledge and proprietary database to generate prospects on behalf of Strategic. Yukon discoveries and/or deposits made or advanced by Archer Cathro include: Casino – Western Copper and Gold Osiris – ATAC Resources Wellgreen – Wellgreen Platinum Klaza – Rockhaven Resources Wolverine – Yukon Zinc Tiger – ATAC Resources Carmacks Copper – Copper North Marg – Revere Developments Division Mountain – Pitch Black Golden Revenue – Triumph Gold Blende – Blind Creek Resources Ice – Yukon Zinc Archer Cathro has designed and implemented programs on behalf of companies that have received four Leckie Awards for Excellent Environmental Stewardship since 2000. 5 TSX.V - SMD
Capital Structure STRATEGIC METALS LTD. TSX-V:SMD SHARES OUTSTANDING: 89,370,151 FULLY DILUTED: 92,442,651 ~$39 million 1 WORKING CAPITAL: MARKET CAPITALIZATION: ~$53 million $1.00 Significant Holders $0.90 $0.80 $0.70 STRATEGIC MANAGEMENT 2 – 13.4% $0.60 $0.50 CONDIRE RESOURCE PARTNERS – 13.2% $0.40 TOCQUEVILLE GOLD FUND 3 – 12.3% $0.30 $0.20 $0.10 $0.00 1 Estimated cash and marketable securities as of May 24, 2017. 2 Includes consultants and key employees on a fully diluted basis. 3 Tocqueville Quarterly Holdings March 31, 2017 (unaudited). 6 TSX.V - SMD
Working Capital vs Market Capitalization • Over 7 million shares have been repurchased during buy-backs 7 TSX.V - SMD
Major Shareholdings • Epithermal gold and silver veins in Yukon • Ginger Ridge discovery • Growing resource of 1.8 Moz AuEq Rockhaven within the Tireo Gold Resources Camp, Dominican Republic • High grade near surface 45.2% • District scale land position gold oxide deposit ATAC Precipitate immediately adjacent to • Carlin-type gold district Resources Gold Corp. 3.0M oz AuEq discovery east central Yukon 7.3% 31.2% • Earn-in agreement with Barrick Gold on the Orion Strategic Project • Project generator in NWT, Nunavut & Nevada with a large • Patented process for Metals Terra CO 2 Silver Range portfolio of high permanent CO 2 Technologies Resources grade gold projects sequestration 89.5% 14.3% • 3 Yukon zinc/silver combined with mine deposits remediation and water treatment Trifecta Gold • 4 exciting projects in the White Investment Ltd. • Minor holdings in more Gold District of the Dawson Fund than 20 other companies 8.9% Range Gold Belt in western Yukon 8 TSX.V - SMD
Exploration costs, proceeds and distributions $32,701,772 $18,000,000 140 $16,000,000 120 $14,000,000 100 $12,000,000 80 $10,000,000 $8,000,000 60 $6,000,000 40 $4,000,000 20 $2,000,000 $0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Exploration and evaluation costs Distribution to shareholders Proceeds of mineral property options and sales 100% held projects • $6.7 million accrued assessment credits prior to 2017 filings 9 TSX.V - SMD
N.W.T. Yukon B.C. 10 TSX.V - SMD
Permitted Projects • 19 projects with land-use permits granted or pending. • Permits approve 3,000 drill holes totalling more than 500,000 metres. • Emphasis on proximity to infrastructure. 11 TSX.V - SMD
Ahead of the herd The Yukon has seen numerous investments by mining companies over the past year where Strategic has a major interest: • Goldcorp and Agnico Eagle have acquired 19.9% stakes in multiple companies in the White Gold District including Arcus Development Group (4.4% held by Strategic) • February & May 2017: Coeur Mining invests in Rockhaven Resources (45.2% held by Strategic) • March 2017: Newmont Mining earn-in to Goldstrike Resources’ Plateau Project (Strategic holds a 220 km 2 land position immediately adjacent and along strike) • March 2017: BMC Minerals applies to develop its Kudz Ze Kayah project in the Finlayson District (where Strategic holds over 100 km 2 of prospective ground) • April 2017: Barrick Gold investment in ATAC Resources (7.3% held by Strategic) and a 70% earn-in agreement for the Orion Project ( Strategic’s Midas Touch Project covers over 920 km 2 of prospective stratigraphy on the southern edge) 12 TSX.V - SMD
Ahead of the herd April 2017: Barrick Gold 70% earn-in agreement for ATAC Resources’ Orion Project, directly north of Strategic’s Midas Touch Project 13 TSX.V - SMD
Ahead of the herd February & May 2017: Coeur Mining acquires 9.9% of Rockhaven Resources (45.2% held by Strategic) Growing road accessible resource last updated in 2015: Tonnes Grade Contained Metal 4 (koz) (kt) Au Ag Pb Zn Au Au Ag (koz) Pb (klb) Zn (klb) Au EQ 4 (g/t) (g/t) (g/t) (%) (%) EQ (koz) 2,3 Pit-Constrained 2,366 5.12 94.51 0.93 1.18 6.71 389 7,190 48,258 61,475 510 3 Underground 7,054 4.27 87.18 0.69 0.88 5.65 969 19,772 107,159 136,416 1,282 Total 9,421 4.48 89.02 0.75 0.95 5.92 1,358 26,962 155,417 197,891 1,793 1,5 Klaza Property - Total Inferred Mineral Resource Estimate Summary, December 9, 2015 1 CIM definition standards were used for the Mineral Resource. The Qualified Person is Adrienne Ross, P. Geo. of AMC Mining Consultants (Canada) Ltd. Using drilling results to September 30, 2015. 2 Near surface mineral resources are constrained by an optimized pit shell at a gold price of US$1300 oz. 3 Cut-off grades applied to the pit-constrained and underground resources are 1.3 g/t Au EQ and 2.75 g/t Au EQ respectively. 4 Gold equivalent values were calculated using the following formula: Au EQ=Au+Ag/85+Pb/3.74+Zn/5.04 and assuming: US$1300 oz Au, US$20 oz Ag, US$0.90 lb Pb and US$0.90 lb Zn with recoveries for each metal of Au: 96%, Ag: 91%, Pb: 85% and Zn: 85%. 5 Numbers may not add due to rounding. Mineral resources that are not mineral reserves do not have demonstrated economic viability. All metal prices are quoted in US$ at an exchange rate of $0.80 US to $1.00 Canadian. 14 TSX.V - SMD
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