corporate presentation atacama copper property€¦ · - lomas bayas, mantos blancos, spence,...

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CORPORATE PRESENTATION Atacama Copper Property (TSX.V:AN) February 2019

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Page 1: CORPORATE PRESENTATION Atacama Copper Property€¦ · - Lomas Bayas, Mantos Blancos, Spence, Sierra Gorda, Tesoro, El Peñon • Agreement earned an 80% interest in the Atacama Copper

CORPORATE PRESENTATION

Atacama Copper Property

(TSX.V:AN)

February 2019

Page 2: CORPORATE PRESENTATION Atacama Copper Property€¦ · - Lomas Bayas, Mantos Blancos, Spence, Sierra Gorda, Tesoro, El Peñon • Agreement earned an 80% interest in the Atacama Copper

Cautionary Notes

This Presentation contains ‘‘forward-looking information’’ or “forward looking statements” which may include, but is not limited to, statementswith respect to the future financial or operating performance of Arena Minerals Inc. and its subsidiaries (collectively, the ‘‘Company’’) and itsmineral projects; the future prices of metals; the anticipated results of exploration activities; the estimation of mineral resources; the ability toenter into additional joint venture agreements; the ability of the joint venture partners to complete the work program; the realization ofmineral resource estimates; capital, development, operating and exploration expenditures; costs and timing of the development of theCompany’s mineral properties; timing of future exploration; requirements for additional capital; government regulation of mining operations;anticipated results of economic and technical studies; environmental matters; reclamation expenses; title disputes or claims; limitations ofinsurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Often, but not always, forward-lookinginformation can be identified by the use of words and phrases such as ‘‘plans’’, ‘‘expects’’, ‘‘is expected’’, ‘‘budget’’, ‘‘scheduled’’, ‘‘estimates’’,‘‘forecasts’’, ‘‘intends’’, ‘‘anticipates’’, or ‘‘believes’’ or variations (including negative variations) of such words and phrases, or state that certainactions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved.

Forward-looking information is based on the opinions and estimates of management as of the date such statements are made and is based oninformation currently available to management and upon what management believes to be reasonable assumptions, including, among others,that general business, economic, competitive, political and social uncertainties remain favorable; that actual results of exploration activitiesjustify further studies and development of the Company’s mineral projects; that the future prices of metals, and copper and gold in particular,remain at levels that justify the exploration and future development, exploration and operation of the Company’s mineral projects; that there isno failure of plant, equipment, processes, exploration machinery to operate as anticipated; that accidents, labour disputes and other risks ofthe mining industry do not occur; that the jurisdictions in which the Company operates remain politically stable; that there are nounanticipated delays in obtaining governmental approvals or financing or in the completion of future studies, development or constructionactivities; that the actual costs of exploration, and studies remain within budgeted amounts; that regulatory and legal requirements requiredfor exploration or development activities do not change in any adverse manner, as well as those factors discussed in the section entitled ‘‘RiskFactors’’ as may be identified in the Company’s public disclosure from time to time, as filed under the Company’s profile on SEDAR atwww.sedar.com.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results,performance or achievements of the Company to be materially different from any future results, performance or achievements expressed orimplied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actualactions, events or results to differ materially from those described in the forward-looking information, there may be other factors that causesuch actions, events or results to differ from those anticipated, estimated or intended. Any inaccuracy in the assumptions identified above mayalso cause actual actions, events or results to differ materially from those described in the forward-looking information.

Forward-looking information contained herein is made as of the date of this Presentation and the Company disclaims any obligation to updateany forward-looking information, whether as a result of new information, future events or results, except as may be required by applicablesecurities laws. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future eventscould differ materially from those anticipated in such information. Accordingly, potential investors should not place undue reliance on forward-looking information.

This Presentation does not constitute an offer to sell, or solicitation of an offer to buy, any securities by any person in any jurisdiction in whichit is unlawful for such person to make such an offering or solicitation. No representation or warranty, express or implied, is made as to theaccuracy or completeness of the information set out herein, and nothing contained herein is, or shall be relied upon, as a promise orrepresentation, whether as to the past or future.

The technical and scientific aspects of this Presentation have been reviewed and approved by Mr. Vernon Arseneau, P.Geo, who has beendesignated as a qualified person pursuant to NI 43-101. As the Vice President of Exploration of the Company, Mr. Arseneau is not consideredindependent.

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Page 3: CORPORATE PRESENTATION Atacama Copper Property€¦ · - Lomas Bayas, Mantos Blancos, Spence, Sierra Gorda, Tesoro, El Peñon • Agreement earned an 80% interest in the Atacama Copper

Arena Minerals: Chile

• Projects located near Antofagasta, Chile – a pro mining jurisdiction with

infrastructure and world class operating mines

- Lomas Bayas, Mantos Blancos, Spence, Sierra Gorda, Tesoro, El Peñon

• Agreement earned an 80% interest in the Atacama Copper Property,

consisting of 6,910 hectares in world’s foremost copper district

• Arena’s land package has been held by single owner with focus on

industrial minerals for over 70 years, with claims dating back to 1876

• 2 Cu porphyry and one Au-Ag epithermal prospects discovered by Arena

during early stage prospecting are currently available for option/joint

venture

Peru

Bolivia

Argentina

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Page 4: CORPORATE PRESENTATION Atacama Copper Property€¦ · - Lomas Bayas, Mantos Blancos, Spence, Sierra Gorda, Tesoro, El Peñon • Agreement earned an 80% interest in the Atacama Copper

Prospect Generator Model

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• Significantly reduces Arena’s ongoing commitments

• Arena retains material interest without incurring further costs

• Minimizes dilution to Arena shareholders

• Significant increase in spending coupled with more aggressive timelines, including drilling, to create earlier value driving catalysts

• JVs allow more prospects to be drilled in a shorter timeframe, resulting in a more aggressive and thorough exploration program

Page 5: CORPORATE PRESENTATION Atacama Copper Property€¦ · - Lomas Bayas, Mantos Blancos, Spence, Sierra Gorda, Tesoro, El Peñon • Agreement earned an 80% interest in the Atacama Copper

Two properties (AN 80%, SQM 20%)

5Over US$8 million spent in exploration on both properties combined

Mantos

Blancos

Spence

Lomas

Bayas

El Tesoro

Esperanza

Sierra

Gorda

Arena(Pampa Union)

available ground

4,770 Ha

2 Cu porphyry prospects

Arena(Pampa Paciencia)

available ground

2,140 Ha

Gold epithermal vein system

Page 6: CORPORATE PRESENTATION Atacama Copper Property€¦ · - Lomas Bayas, Mantos Blancos, Spence, Sierra Gorda, Tesoro, El Peñon • Agreement earned an 80% interest in the Atacama Copper

Pampa Union Property

• Work Program at Pampa Union

– 29,482 metres drilled (RC and

DDH)

– Grid drilled property on

minimum 3km spacing with

infill at 1.5 km spacing follow-

up completed

– Vector IP, Ground Magnetics

and Passive Seismic surveys

completed

• Discovery of two porphyry systems:

– PU-RC-39/80 & 94 area on the

Pampa Union claim block

• Project fully permitted to continue drilling

6See Cautionary Notes

PU-RC-94

Pampa

Union

PU-RC-39/80

Pampa

Paciencia

Page 7: CORPORATE PRESENTATION Atacama Copper Property€¦ · - Lomas Bayas, Mantos Blancos, Spence, Sierra Gorda, Tesoro, El Peñon • Agreement earned an 80% interest in the Atacama Copper

Pampa Union Targets

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• Two high quality porphyry

targets discovered with

advanced argillic/phyllic

alteration signatures,

hydrothermal brecciation,

and anomalous geochemical

signatures including values

up to 0.2% copper in drill

core

• Targets are approximately 2

km by 500 m in size, lying

under less than 100 metres

of ground cover

• Minimal additional drilling

required to fully test the

identified targets

Page 8: CORPORATE PRESENTATION Atacama Copper Property€¦ · - Lomas Bayas, Mantos Blancos, Spence, Sierra Gorda, Tesoro, El Peñon • Agreement earned an 80% interest in the Atacama Copper

Pampa Paciencia Property

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PP15-006 Core Photo

• Property covers 2,140 hectares

with access to paved highway,

rail, power and water

• Samples as high as 93 g/t Au

(surface), and up to 28 g/t Au in

drill core

• All sections remain open at depth

and on strike, with only a small

fraction of the known strike

length and overall property

tested by drilling

Page 9: CORPORATE PRESENTATION Atacama Copper Property€¦ · - Lomas Bayas, Mantos Blancos, Spence, Sierra Gorda, Tesoro, El Peñon • Agreement earned an 80% interest in the Atacama Copper

Additional Assets

In 2018, Arena Minerals added Mr. Eduardo Morales to its team and acquired a lithium project in Argentina. Mr. Morales is

a renown expert in lithium brine processing and an industry veteran having been the CEO of Rockwood Litio Ltda (based

in Chile), President of Rockwood Lithium Latin America and COO of Lithium-X Energy Corp. (Argentina), which was

acquired in 2018 for C$265M by a Chinese Consorcium. Will Randall, CEO, was the instrumental person originally setting

up Lithium-X’s Project and served as VP Project Development along with Mr. Morales.

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Please See the “Lithium” Corporate Presentation

also available at www.arenaminerals.com

Arena Minerals is led by a team with undeniable expertise in lithium processing whichhas successfully advanced and brought several lithium projects to production. Chile, theworld’s leading brine-based lithium producer, uses a Brine-Mixing Process focused onthe use of reagents purely derived from lithium rich brines, which Arena Minerals has

adapted to the salars of Argentina. This process results in products much better suited for BatteryGrade Lithium Carbonate production while carrying substantially lower production costs. Theprocess was originally developed and implemented in Chile with members of Arena’s team. Arenais uniquely positioned to transition Argentina from the past decade of resource growth through toworld class supplier of low cost lithium products, by implementing its proprietary processing andproviding a source of the required lithium rich reagent sourced from its unique Antofalla salar anda world class team.

Page 10: CORPORATE PRESENTATION Atacama Copper Property€¦ · - Lomas Bayas, Mantos Blancos, Spence, Sierra Gorda, Tesoro, El Peñon • Agreement earned an 80% interest in the Atacama Copper

Capital Structure(inclusive of Teck placement)

Ticker: TSX-V: AN

Shares Outstanding (Basic): 142 M

Shares Outstanding (FD): 197 M

Cash & Equivalents (Period ending September 30th 20018) C$3.1M

Share Price: $0.05

52-Week Range: $0.045 – C$0.30

Market Cap: $7 M

Held by Insiders: ~15%

Institutions and Well known Hight Net Worth Individuals ~ 35%

Sociedad Quimica y Minera de Chile (SQM) ~ 3%

Teck Resources Ltd: ~ 3%

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Page 11: CORPORATE PRESENTATION Atacama Copper Property€¦ · - Lomas Bayas, Mantos Blancos, Spence, Sierra Gorda, Tesoro, El Peñon • Agreement earned an 80% interest in the Atacama Copper

Contact Information

William Randall

Ph: [email protected]

Daniel Bruno

Ph: [email protected]

Simon Marcotte

Ph: [email protected]

Freddie Leigh

Ph: [email protected]

Arena Minerals

Ticker: AN (TSX.V)

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