cervello q1 2012 presentation

PDAC Presentation

March, 2012

Forward Looking Statement

The following information may contain forward looking statements. Forward looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statement. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Oremex Silver Inc., Oremex Gold Inc., Llave Oro Inc., Mogul Ventures Corp., Honker Gold or Vulture Peak Gold LP actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward looking information. Such factors include, but are not limited to: uncertainties related to historical resource estimates, work expenditure commitments; ability to raise sufficient capital to fund future exploration or development programs; changes in economic condition or financial markets, regulatory, political and competitive developments; technological or operational difficulties or an inability to obtain permits required in connection with maintaining, or advancing projects; and labour relation matters

Cervello Capital Inc.

3 | www.cervellocapital.com

• Toronto-based private merchant bank

• Global expertise and focus in the junior

resource sector

• We provide: seed capital, technical, board

and managerial leadership, guidance

through the go-public process, capital

markets advisory services to international

resource projects of interest

• Successful track record of taking

international projects through this

process by focusing on:

» Asset quality

» Technical expertise

» Creation of an appropriate

capital structure

• Operational experience:

Argentina, Brazil, Bolivia, Chile,

Colombia, Mexico, Mongolia,

and the United States.

Technical Leadership

MICHAEL R. SMITH, R.G.

• Over 20 years of international mining operations experience. Served as Chief Mine Geologist for Barrick Gold Corp. at the Goldstrike Mine in Nevada. Founding CEO, discovered and led exploration of Continental Gold’s (TSX: CNL) Buritica Project.

DAVID A. TERRY, PH.D., P.GEO.

• Over 20 twenty years of international experience in the natural resource sector with major and junior resource companies. David’s focus has primarily been on exploration and development of precious and base metal deposits in North and South America.

BALMER ECHEVERRI

• Geological engineer with Masters degree in Economic Geology. Over 10 years of mining experience mainly in Colombia. Former Country Manager at Barrick-Colombia, led discovery of the 7 million oz. Marsella deposit.

BILL FEYERABEND

• Over 30 years of experience in exploration and development around the world. A member of the American Institute of Professional Geologists.

JOHN E. DREIER

• Founder and President of public and private companies. Played key roles in the discovery and exploration of the Green Springs, Little Bald Mountain gold deposits and the Sanchez and Piedras Verdes copper deposits. Managed exploration projects throughout the Americas.

TSX VENTURE: OAG

OTCQX: ORAGF

FRANKFURT: OSI

5 | TSX Venture: OAG | www.oremexsilver.com | www.cervellocapital.com

Developing Silver Resources in Mexico

Presented by: John Carlesso, Executive Chairman

Developing Silver

Resources in Mexico


• Oremex Resources Inc. was renamed Oremex Silver Inc. in Q3, 2011 to reflect pure silver focus

» Spin-out of gold projects listed as Oremex Gold Inc. (TSX.V: OAU)

• Portfolio of silver projects includes mineral resource of 50.8M oz. of silver with P.E.A at the Tejament project

• All projects are in mining / capital-friendly jurisdictions

• Pursuing strategy to unlock unrecognized value and creating shareholder value through the distribution of Oremex Gold Inc. shares

• Experienced Board and Management team

» Successful track record of mine building in Mexico with seasoned ability for new project evaluation / acquisition

Focus on the exploration and development of silver projects along the highly

productive mineralized belt that made Mexico the largest silver-producing

country in the world

La Purisima shaft at the Chalchihuites property


Project Locations

TEJAMEN (Durango State)

• Flagship property with 50.8M oz

NI 43-101 compliant resource

with P.E.A

• Viability of open pit, heap leach

operation (Snowden Report, ’06)

• Potential to expand resource

SAN LUCAS (Durango State)

• Similar geology as Tejamen but with base

metals

• Further drilling to establish resource and

follow up high grade zones, 1,856 g/t Ag

CHALCHIHUITES (Zacatecas State)

• Located in prolific silver producing district

» Grades up to 3,800 g/t Ag, 0.99 g/t Au

+1.6% Pb

• Skarn and CRD manto system with past

production of high-grade silver-zinc-lead

• Q4, 2011: Acquired 392.53 hectares of additional

concessions adjacent to Chalchihuites

• Q1, 2012: Completing underground drill program

• On strike with and adjacent to First Majestic

Silver’s (NYSE: AG) Del Toro Project (within 4km)

EL SOL (Durango State)

• Potential for silver-rich,

base metal skarns

• Adjacent to Southern Silver’s

Cerro Las Minitas

• Strong IP geophysics

demonstrating buried intrusive

and sulfide mineralization

indicate excellent drill

targets

Tejamen Project

Perimeter potential

LOS MANTOS

open pit

Vein outcrops

CERRO PRIETO

• Flagship project

• 100% mineral rights

• Surface access being negotiated

• Wardrop Report (2006) defines 50.8M oz. silver

› 22Mt at 69 g/t silver

• Snowden Report (2006) outlines viability of open pit, heap leach operation

› 10,000 TPD

› Estimated CapEx USD $45M

› 2:1 strip ratio

› 3.5 - 4.0M oz. silver per year

Operating cost scenario of $5.75/tonne

› Cash operating cost of $4/oz Ag

Block model shows Los Mantos remains open to the south

and east

Significant exploration upside in feeder veins beneath Los

Mantos and Cerro Prieto deposits, grades 6m of 1,400 g/t Ag,

with about 5% lead & zinc


Value Underpinning

Oremex Silver Unchanged


Advancing High Potential Gold Assets in México

TSX VENTURE: OAU

FRANKFURT: OM8

10 | TSX Venture: OAU | www.oremexgold.com | www.cervellocapital.com

Presented by: David A. Terry, Ph.D., P.Geo., CEO & President

SHAREHOLDER APPROX.

SHARES APPROX. %

Oremex Silver Inc. 14,000,000 40.5%

Black Birch (CPC) 3,342,520 9.7%

New from Financing 17,200,000 49.8%

Total Basic 34,542,520

Options & Warrants 2,568,502

Financing Warrants 8,600,000

Fully Diluted 45,711,022 Oremex Gold Inc.

• Approx. 34.8 million shares issued

• $2.6 million cash (Dec.30.2011)

• Fully diluted: 47 million

Oremex Gold Spin-out Structure

Portfolio of Gold Projects

in Mexico’s Prolific Mining Belt

Canadian gold exploration and development company created from the spin-out of gold assets owned by Oremex Silver Inc. (formerly Oremex Resources Inc.) in 2011. The company has a portfolio of 100% owned gold properties in the prolific mining regions of Mexico. • Intent to dividend Oremex Gold Inc.

shares to Oremex Silver Inc. shareholders in the new year


Project Locations


Exploring and advancing exciting early stage projects within Mexico’s

emerging Sierra Rosario Gold Belt. The company’s projects, new

management team and experienced Board of Directors represent a platform

for value and growth creation in well-established, mining-friendly regions.

SANTA CATARINA (Sinaloa State)

• Located in the prolific Sierra Rosario Gold

Belt

• Massive sulphide deposit: 20m of 3.2g/t Au,

hosted in carbonates

• Surface sampling has yielded up to 2.1m @

20.5 g/t gold

• Drill program to commence in 2012

• JV with Oro Mining Ltd. (TSX.V - OGR) to

acquire 75% interest in the surrounding

29,000 hectares of the Concordia/ Guasima

Projects

SANTA CATARINA

SAN LUCAS CERRO DEL ORO

NAVIDAD

MACO

CERRO DEL ORO (Zacatecas State)

• Located in historical Melchor

Ocampo gold mining district

• Widespread gold mineralization

• Ongoing detailed surface sampling

and geological mapping program

Cerro del Oro

• Two concessions totaling 78.9

hectares in northern Zacatecas

state

• Concessions cover the core of

the historical Melchor Ocampo

gold mining district

• Widespread gold mineralization

• Assay highlights:

» 1.7 meters at 6.77 g/t Au, 48.2

g/t Ag, 1.21% Cu and 11.4%

Zn and

» A 2 x 2 meter panel sample at

2.16 g/t Au and 7.0 g/t Ag

• Conducting a detailed surface

sampling and geological mapping

program

Planning underground drilling program and a geophysical program

to refine drill targets for a Phase I surface drilling program

Company Highlights

• Uniquely Positioned

» Five, 100% owned properties in the prolific

mining regions of Mexico

» Mining, capital-friendly jurisdictions

» Well financed with attractive share structure

• Exploration Upside

» Highly prospective, early stage gold

projects hosting multiple targets

» Located in well-known gold mining districts

» Significant drill program planned for current

year

• Focused Growth Platform

» Management & Board with a successful

track record of exploration, development

and discovery in Mexico as well as

elsewhere in Latin America

San Lucas Property


• Mexico has a growing economy and attractive mining legislation

» Canadian companies represent ~70% of all mining companies in Mexico

• Developing 100% owned flagship asset, Black Hills thermal coal

project located in Middle Gobi.

• Extensive Russian exploration history and the recently completed

drill program will resulted in an initial NI 43-101 compliant

resource of 89.6 million tons of Inferred Resources in Ovdog

Hudag coal deposit.

15 | www.mogulvc.com | www.cervellocapital.com

Presented by: Steve Khan, CFA, MBA, Executive Chairman

Mongolia Overview

• Home to some of the world’s largest

natural resource deposits including

coal, gold and copper

• Next door to the biggest consumer of

commodities in the world – China

• Mining is the most important sector

“contributes 30% of GDP and 70% of

exports”(1)

• Mongolian government focused on

long-term development of resource-

related sectors and favorable policies

towards business and foreign

investments


Source: (1) the Ministry of Mineral Resources & Energy of Mongolia

• Stable business-friendly democracy: 20 year uninterrupted history

of peaceful and democratic government

• Homogenous country with minimal risk of ethnic or religious conflict

Drilling Camp, 2011

Black Hills Project Key Advantages


• Strategic location

close to existing rail line

(parallel line planned)

providing ready access

to Chinese markets

• Open pit accessible

thermal coal resources

with expected low strip ratio

• NI 43-101 compliant Inferred

Resource of 89.6 Mt from

2,370m of drilling in

14 holes at Ovdog

Hudag deposit

• Property has potential for presence of other

commodities (Cu, Fe)

• Excellent potential to significantly expand the projects’ coal resources through:

» Infill and step-out drilling at Ovdog Hudag deposit where substantially larger historical resources were delineated by Russian work in the 1960s and 1970s through more detailed drilling

» Ovdog Hudag Coal Deposit remains open to the north

» Drilling of the Ikh Ulaan Nuur deposit 7km NNE of Ovdog Hudag (86.4 Mt*1)

» Testing the undrilled area between the two known deposits

» Phase II drill program planned to commence April 2012

» Potential for copper deposit demonstrated by surface sampling of skarn grading up to 6% Cu

Company Objectives


Recent & Upcoming Milestones


H1 2011 H2 2011 Q1 2012 Q2 2012

TRANSACTION

Completed due diligence, property review, Title Opinion, private financing, closed TS LLC purchase, RTO agreement with TSX listed CPC

Complete audit and prepare info Circ. Received approvals and signed an order for issuance of the mining license

Complete public RTO, close Pubco. funding – public listing

EXPLORATION

Complete initial independent historical review of coal occurrences

Complete drill program to confirm coal characteristics and historical work

Completed NI 43-101 report Implement NI 43-101 recommended program

ACQUISITION

Completed acquisition of TS coal project

Review other potential coal acquisitions

DEVELOPMENT

Confirmation drilling of Black Hills

Confirm resource and expand drilling

A Premier Gold Explorer in Colombia

20 | www.llaveoro.com | www.cervellocapital.com

Presented by: Balmer Echeverri, VP Exploration

Value Creation

• Large scale gold project acquisitions identified

• Located in Antioquia state

• Very prolific gold region over past several hundred years

• A premier Colombian-based team with a track record of significant exploration success

» Identified, assembled, negotiated and advanced exploration on Continental Gold’s key assets (TSX: CNL)

• Strong Board with extensive experience building companies and creating shareholder value in the capital markets

• Advancing the public listing process

• Majors nearby:

» AngloGold Ashanti (NYSE: AU), Continental Gold (TSX: CNL), B2 Gold (TSX: BTO)


Pre-IPO

Financing $3.4M @ $0.20

Shares

Outstanding 28,709,850

Fully Diluted 40,009,881

Warrants 8,500,000 @ $0.30

Options 2,800,031 @ $0.20

Projects


POPALES PROJECT • 150 km NW of Medellin in the prolific Cauca Belt

• Multiple gold bearing veins identified through

preliminary exploration

» Mineralization very similar to Buritica’s 4Moz

deposit

• Drill ready project with high grade vein and bulk

mining potential

• Grades up to 68 g/t Au

• Altered rock between veins assayed up to 13 g/t Au

EL RAYO PROJECT • Located approximately 55km NE of Medellin

• Open cut exposes a shear zone ~11m wide, length

appears to be 1+km

• Chip samples yielded 4.2 g/t Au to 16.6 g/t Au

• Two mineralized zones identified:

• 200m by 50m of gold anomalies ranging

0.1 – 5.4 g/t Au

• 270m by 170m ranging

0.1 – 2.6 g/t Au

LLAVE ORO INC. PROPERTIES

Popales Geochemistry

• Widespread mineralization

indicates:

» Large hydrothermal system and

» Provides numerous drill targets

• Copper and silver mineralization is

associated with gold mineralization

• Mineralization very similar to

Continental Gold’s Buritica 4Moz.

deposit

Popales & Buritica

Comparison

Illustrations: Top: Popales Veins Bottom: Buritica Veins


100 m

• Multiple gold bearing veins identified through

preliminary exploration

• Grades up to 68 g/t Au

• Altered rock between veins assayed up to

13 g/t Au

• Drill-ready project with 7 drill holes

identified

• High grade vein and bulk mining potential

• Distribution and type of high-grade veins at

Popales is very similar to Buritica’s 4Moz. Au

deposit

• Identified 45 high-grade Buritica-like veins

Overview

• Early-stage investment opportunity

• Start-up level valuation

• Significant catalysts and activity during

2012

• Ongoing program

» Geological mapping and sampling

» Both Popales and El Rayo have multiple

“drill ready” targets

» Final stages of permitting

» Continued due diligence on additional

project acquisitions

» Advancement of go–public process

• Best in class team with vast expertise in

Colombia

• Still “early days” in Colombia


Sample from high grade vein, Popales

Potential to Hold a Multi-Million Tonne

Vein Type Gold Deposit


Presented by: John E. Dreier, CEO

Investor Highlights

• Multimillion, bulk-mineable ounce Gold

potential in Alaska

» In the prolific Tintina Gold Belt

» Potential to hold a multi-million

tonne vein type deposit with gold

values ranging up to 80 or 90g/t Au

• Previously explored

• NI 43-101 report (Jan.30.2011)

• Multiple bulk minable targets

identified by surface work and drilling

• Proven track record: strong team of

mining and financial professionals

• Infrastructure: modern mining camp

and landing strip 10km away, former

USAF fighter base 70km away


29.3M oz

6.7M oz

16.5M oz

• In the Tintina Gold Belt

(near Galena, Western Alaska)

• Discovered in 1981 by Anaconda

• 20 claims totaling 1,295 hectares

• Vein is defined by 200 surface samples and 10 diamond drill holes

• Year round exploration possible given common light snowfall to the

area

Tintina Gold Belt

Discovery Outcrop


• Two known northeast trending gold veins: Main and West

» Cumulative exposure over 150m

» Main Vein: continuous train 1km along strike and 170m vertical interval

• Historical exploration has barely identified the potential of the mineralized gold deposit

» Historic exploration traced the vein to a max. depth of 50m below surface

• Mineralization is open to the North, South and at depth


Exploration Potential

Past Exploration Work

• 1981 – 1983: geological mapping,

ground magnetometer, IP and

MAXMIN EM survey, geochemical

sampling and 10 diamond drill holes

totalling 1,001.2 m completed

» 4 of 10 holes reached the Main

Vein

• Values range: 1m grading 3.8 g.t Au;

5m grading 9.28 g/t Au; subinterval

grading up to 14.5 g/t Au

• Two bulk samples (160 and 72.7lbs)

collected along the Main Vein ave.

29.14 g/t Au and 29.48 g/t Ag

• Anaconda drill holes hit Gold in the

Main Vein and disseminated

mineralization near the vein


• Staged exploration program determined

» Objective: test the potential of the Honker veins

at depth to determine the large-scale potential

of the mineral system

• Shareholder value creation: through acquisition

and development of superior west-coast based

minerals projects

• Leverage Cervello Capital relationship and use

Honker Gold Project as the asset for a public launch

• Proposed Phase I Work Program

Milestones & Objectives

Geological mapping to locate additional targets

Estimated Budget:

$1.5M Complete 1,500m of core drilling to locate high-grade ore

zones along the Main Vein and bulk tonnage deposits adjacent

to the vein

Main Vein Sample


• Limited partnership investment vehicle structured

to maximize the distribution of cash flow from gold production

at the Vulture Gold Mine

• The mine, which has produced 340,000 ounces of gold

over its operational history, has a gold resource of 328,000 ounces

(non-NI 43-101 compliant) and is expected to be a low-capex,

low-cost, open pit operation

32 | www.vulturepeakgold.com | www.cervellocapital.com

Presented by: Michael R. Smith, R.G., Manager

• Low capex, low-cost and near-term,

open pit gold production

• Primary investment objective =

cash flow distribution

• Project payback less than 18 months

• 328,000 ounce base case with

additional resource upside

• Breakeven cash flow at $450 gold

• Examining ability to provide unit

holders option to accept physical

delivery

• Some upfront tax benefits with

limited partnership structure

• NPV at $1,500 Gold = $88 million

Investor Focus


• Block model and Resource Estimate created based on drill data from 89 holes to

a depth of 200 to 500 feet, deposit extends to at least 650 feet down dip

• Vulture Peak Gold conducted panel sampling and surveying of mine workings to

a depth of 650 feet

Resource Block Model


Potential Production Scenario

• Base case of 328,000 oz. Au

• Assumes no additional Resource delineated

• Objective of reaching 50,000 oz/yr production over 5 year period, assuming no resource expansion

• Cash cost/oz anticipated to be between US $400 and $450

• Positive preliminary metallurgical testing completed July, 2011 by Resource Development Inc., (Denver)

• Met testing indicates all ores leachable at various crush and grinds

• Ore available at mining start to load on leach pads and mill high grade

• Expected Capex • Roughly $25M

• Finance any potential expansion and milling through cash flow

• Projected startup early 2013

Old ore car and high grade mineralization underground


Preliminary Estimate Cash

Flow Model


VULTURE MINE

DCF YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 TOTAL

REVENUE

Processed Ore

Ounces 19,545 48,864 48,864 48,864 48,864 29,320 244,321

% Recovery 0.74 0.74 0.74 0.74 0.74 0.74

Recovered Ounces 14,401 36,003 36,003 36,003 36,003 21,603 180,016

$$ @ $1200/oz Au $17,280,907 $43,203,594 $43,203,594 $43,203,594 $43,203,594 $25,923,571 216,018,855

$$ @ $1500/oz Au $21,601,134 $54,004,493 $54,004,493 $54,004,493 $54,004,493 $32,404,464 270,023,569

$$ @ $1800/oz Au $25,921,361 $64,805,391 $64,805,391 $64,805,391 $64,805,391 $38,885,357 324,028,283

COSTS

Property Payment $3,275,000 $3,275,000

Drilling $400,000 $100,000 $500,000

Engineering $300,000 $200,000 $500,000

Permitting $300,000 $100,000 $400,000

Payroll & facilities

constr. $400,000 $400,000 $800,000

Leach Pad Constr.

Tonnes 3,600,000 720,000 720,000 720,000 720,000 720,000 7,200,000

Leach Constr.

@ $2.16/t + mill $10,900,000 $1,440,000 $1,440,000 $1,440,000 $1,440,000 $1,440,000 $18,100,000

Water Supply $1,000,000 $1,000,000

Site Preparation $2,623,000 $2,623,000

Operating @ $7.90/t $7,704,000 $13,867,200 $13,867,200 $13,867,200 $13,867,200 $13,867,200 $1,000,000 $78,040,000

$4,675,000 $23,027,000 $15,307,200 $15,307,200 $15,307,200 $15,307,200 $15,307,200

$1,000,000 $105,238,000

OPERATING

CASH FLOW

$$ @ $1200/oz Au -$4,675,000 -$23,027,000 $1,973,707 $27,896,394 $27,896,394 $27,896,394 $27,896,394 $24,923,571 $110,780,855

$$ @ $1500/oz Au -$4,675,000 -$23,027,000 $6,293,934 $38,697,293 $38,697,293 $38,697,293 $38,697,293 $31,404,464 $164,785,569

$$ @ $1800/oz Au -$4,675,000 -$23,027,000 $10,614,161 $49,498,191 $49,498,191 $49,498,191 $49,498,191 $37,885,357 $218,790,283

DCF: $1,500/ oz Au at 10% discount: $88,000,000

$100,000 Investment

Scenario


Notes Assumes $5 million raised at $30 million pre money value

Assumes no additional resource is added to the project

Assumes all costs as estimated

SHARE

AT YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 CUMULATIVE

$1200

/oz AU $ (15,586.45) $ (76,772.02) $ 6,580.34 $ 93,006.58 $ 93,006.58 $ 93,006.58 $ 93,006.58 $ 83,095.19 $ 369,343.37

$1500

/oz AU $ (15,586.45) $ (76,772.02) $ 20,983.98 $ 129,016.77 $ 129,016.77 $ 129,016.77 $ 129,016.77 $ 104,702.48 $ 549,395.09

$1800

/oz AU $ (15,586.45) $ (76,772.02) $ 35,387.61 $ 165,026.97 $ 165,026.97 $ 165,026.97 $ 165,026.97 $ 126,309.78 $ 729,446.80

Investment Structure & Summary

• Vulture Peak LLC acts as a General Partner to Vulture Peak Gold LP

• Provides turnkey management for development of project

• Separate US LP within Canadian LP structure

• Up to $5 million equity to be raised within the Company

• Proceeds will advance Vulture through Compliant Resource calculation to Feasibility Study

• Major Capex requirement will be raised through Project Finance, Credit Facility, Production Streaming

• Project payback: less than 18 months

• 328,000 oz base case with additional resource upside

• Breakeven cash flow at $450 Gold

• Primary investment objective = cash flow distribution

• Examining ability to provide unit holders option to accept physical delivery

• Some upfront tax benefits with LP structure

• NPV at $1,500 Gold = $88 million


Blast hole drilling, 2012

Thank You.

cervello q1 2012 presentation

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