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CORPORATE PRESENTATION JUNE 2012

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Page 1: Egd june-2012-presentation

CORPORATE PRESENTATION JUNE 2012

Page 2: Egd june-2012-presentation

This presentation contains certain forward-looking statements and information relating to

Energold that are based on the beliefs of its management as well as assumptions made by and

information currently available to Energold. When used in this document, the words “anticipate”,

“believe”, “estimate”, “expect” and similar expressions, as they relate to the Company or its

management, are intended to identify forward-looking statements.

This presentation contains forward looking statements relating to, among other things, regulatory

compliance, the sufficiency of current working capital, the estimated cost and availability of funding

for the continued exploration and development of the Company’s exploration properties. Such

statements reflect the current views of the Company with respect to future events and are subject

to certain risks, uncertainties and assumptions. Many factors could cause the actual results,

performance or achievements of the Company to be materially different from any future results,

performance or achievements that may be expressed or implied by such forward-looking

statements.

George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument

43-101,is responsible for the IMPACT Silver Corp. technical information in this presentation.

2

FORWAD LOOKING STATEMENTS

Page 3: Egd june-2012-presentation

• Global Specialty Drilling Contractor

Providing socially & environmentally sensitive drilling

services to the international mining & energy sector.

• Market Leaders in ‘Frontier Drilling’

Proprietary rig platform designed for drilling in

remote and diverse sub terrain locations with

limited infrastructure and/or sensitive environmental

and social issues in the mining industry.

• Global Footprint

Operating 234 rigs in over 22 countries worldwide

searching & mapping a broad spectrum of target

resources.

• Proven Track Record of Performance

Driving compounded annual growth in revenues

of over 25% over the last 6 years.

Energold’s Highly Mobile Surface Rig in Operation

Durango, Mexico

3

OUR BUSINESS

Page 4: Egd june-2012-presentation

4

Mining

Energold Drilling’s

main line of business

Operating in 22 countries

globally spanning broad

spectrum of minerals

and resources

Minimized

environmental impact

Frontier Drilling service

with Man Portable drills

Energy

Significant presence in

the Canadian Oil Sands

Bertram acquisition of

2011 added 129 rigs to

Energold and paved way

into major industry

Adds stability to

operation cash flow and

risk diversification from

pure metals

Manufacturing

Dando Drilling UK

provides manufacturing,

engineering, and

maintenance of

next generation

multi-purpose rigs

Capabilities in

water well drilling

United Nations approved

vendor in Africa

OUR BUSINESS SEGMENTS

Page 5: Egd june-2012-presentation

• Modular Component Design

– Easy transport globally and within country with quick turnaround times between rig setups

• Proprietary Technology

– Depth capabilities of over 850m with ¼” more in core diameter using Thin Wall rod system

– Competitive portable rigs only reach depths between 200–300m BTW

• Rigs Built In-House

– Ensures proprietary designs are not copied and we have the capability to drive further enhancements

– Continual upgrades are implemented from input of field personnel

5

OUR TECHNOLOGY

Page 6: Egd june-2012-presentation

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WORLD WIDE OPERATIONS

World-Wide Operations Energold has offices and/or operations in over 22 countries with complete jurisdictional compliance

and logistical support.

Contractor Of Choice Commence relationship on frontier program that historically follow the project through downstream

stages of development. Current & historic client list includes most of the leading global mining companies.

Rig Fleet Energold has increased its fleet size in response to demand by an average of 70% per year over the last 6 years with

a current rig count of 234. Mobile rig platform can be more easily re-deployed more easily and cheaper than conventional rigs.

Page 7: Egd june-2012-presentation

Dominican Republic

Peru

Albania

Guinea

7

GLOBAL PROJECT EXAMPLES

Frontier Drilling Specialists

Page 8: Egd june-2012-presentation

Energold’s clientele

includes a wide selection

of mining companies.

Existing clientele range

from early stage junior

explorers to well known,

mature producers spanning

nearly every base and

precious metal commodity.

MAJORS

• Barrick Gold

• BHP Billiton

• Goldcorp

• Grupo Mexico

• Rio Tinto

• Newmont Mining

• Penoles

• Vale

• AngloGold

• Fresnillo

• El Dorado Gold

• Codelco

JUNIORS

• Grayd Resources (now Agnico-Eagle)

• US Gold (now McEwan Mining)

• Great Panther Silver

• First Majestic Silver

• Olympus Pacific Resources

• Magellan

8

CUSTOMER PROFILE

Page 9: Egd june-2012-presentation

CDN$ (000’s) 2009 2010 Dec 31, 2011 Q1 2012

Revenue 23,719 54,591 133,482 $53,270

Net Earnings (1,951) 1,449 26,428 $892*

EPS (0.06) 0.04 0.65 $0.02*

Cash 18,460 28,225 $22,782 $37,215

Working Capital 46,319 61,461 $69,341 $93,905

• 3 Months Ended Mar 31, 2012 Traditional slower Q1 yet record revenue increases on both

mineral and energy division with energy outpacing expectations

• Gross margins at 32.1%, compared to 28.2% same period in 2011 resulting from additional

expenses taken by clients on contracts

• Drilling increased to 134,500 meters for Q1 2012 over 125,800 meters in 2011 9

FINANCIAL HIGHLIGHTS

* Note adjustment for Bonus Payment to Energold Energy $6,650,000 on meeting EBITDA targets of over $5 million.

Annual payment capped at $10,500,000

Q1 2012 Q2 2011 % Change

Revenue

Mineral 25,944 21,381 21.3

Energy 25,453 N/A N/A

Manufacturing 1,873 1,350 38.7

Total Revenue 53,270 22,731 134.3

Page 10: Egd june-2012-presentation

10

FINANCIAL REFLECTS GROWTH

Rig Count EPS Growth*

Revenue

Meters Drilled

Page 11: Egd june-2012-presentation

Rig Count Growth (2010-2011) Global Presence (Countries)

Market Cap and Liquidity Revenue Growth (2010-2011)

11

DIVERSIFIED GLOBAL GROWTH

AND VALUE PRICED VS PEERS

Page 12: Egd june-2012-presentation

TRADING SYMBOL EGD : TSX.V

SHARE PRICE $4.30

ISIN CA29268A1030

SHARES O/S 46 MILLION

SHARES F/D 51 MILLION

MARKET CAP $198 MILLION

INSTITUTIONAL OWNERSHIP 25%

MANAGEMENT OWNERSHIP 10%

Fred Davidson – President, CEO and Director

James Coleman, LLB – Chairman and Director

Craig Geier – Chief Financial Officer

H. Walter Sellmer – Director

Michael J. Beley – Director

Wayne Lenton – Director

12

CORPORATE SUMMARY

Page 13: Egd june-2012-presentation

STRONG INDUSTRY

FUNDAMENTALS

• Historic high level of

commodity prices

• New sizable discoveries are

increasingly difficult to find

• Producers with record cash

levels seeking to replenish

reserves

• Frontier drilling activity is

focus of explorers for new

discoveries Source: MEG, PriceWaterhouseCoopers

13

MINING INDUSTRY

– POSITIVE OUTLOOK

Page 14: Egd june-2012-presentation

• Proven player in sizable oil sands

market dating back to 1963

• Niche high margin market with

tremendous growth prospects

• Re-allocate drill fleet with

Energold’s international network

for higher margin

• (Seismic & Specialty Rigs)

• Oil Sands coring – smooth out

Energold traditional slow mineral

seasons (Q4/Q1)

• Synergy from people – trained

drillers in coring can transition to

mineral drilling to sustain growth

Bertram TH60

Coring Rig

14

ENERGOLD ENERGY

BERTRAM INTERNATIONAL CORP.

Page 15: Egd june-2012-presentation

Top oil resource in the world

• Oil sands accounts for

55% of Canada’s crude oil

production and represents

97% Canada’s oil reserves1

Sizable exploration expected

• Over $91 billion in invested

from 1999-20082

• 2010-2020 period expected

investments, re-investments,

and revenues from operations

of existing and constructing oil

sands projects: $908 billion3

Market several times larger than

mining & not as cyclical

1. Environmental Canada May 2011 Oil Sands Report

2. CERI – Canadian Energy Research Institute Aug 2011 Decade of Oil Sands Growth 2010-2020

3. Canada National Energy Board – Energy Oil Sands Assessment 2006

15

ENERGY INDUSTRY

(OIL SANDS) OUTLOOK

Page 16: Egd june-2012-presentation

• Over 150 years of

experience in designing

and manufacturing

of larger rigs

• Maintenance, servicing,

and sales of rigs to

third parties

• Expertise in water well

drilling to build a new

services division that

can leverage the existing

Energold logistics

Mineral Multipurpose

Geotechnical

16

ENERGOLD MANUFACTURING

DANDO INTERNATIONAL LTD.

Waterwell

Page 17: Egd june-2012-presentation

• The manufacturing and

equipment demand for

mining and oil/gas

industry is growing year

over year at CAGR of 8%1

• Boart Longyear’s drilling

products order backlog is

up 27% Dec 2011 vs 20102

• Increased utilization rate

by end of 2011 across

industry – more use of

wear & tear items,

maintenance, and drill rig

orders for manufacturers

such as Dando subsidiary 1. Caterpillar Global 2012 Outlook

2. 2. Boart Longyear 2011 First Half Outlook

17

MANUFACTURING

INDUSTRY OUTLOOK

Page 18: Egd june-2012-presentation

• Positive SOCIAL Impact

– Employment opportunities provided to local communities

– Helpers are trained in work-safety and acquire mechanical experience

• Positive ENVIRONMENTAL Impact

– Highly portable rigs leave a small environmental footprint

– Jobs completed without cutting down trees or creating access roads

• Third Party Recognition for Positive Approach

– PDAC Environmental Excellence in Exploration Case Study (E3 Initiative)

A social and environmental approach to

any drilling program leads to a more

successful outcome for all parties involved.

18

SOCIAL & ENVIRONMENTAL

Haiti Bridge

Infrastructure Project

Page 19: Egd june-2012-presentation

19

EXPANSION OF “CORE BUSINESS” MINERAL

DRILL FLEET

• 128 mineral drilling rigs as of April 2012 – solidify existing markets

• Continued growth of frontier drilling and transitioning mature projects with larger conventional drills

• Organic Growth and lookout for acquisitions

• Continual technological advancements in rig design and capabilities.

SEED AND EXPAND INTO NEW MARKETS

• Capitalize on high growth frontier regions such as South/Central America, Southeast Asia & Africa.

• Pursue additional ‘bolt-on’ acquisitions in target regions.

• Grow underground drilling services.

• Expand drilling services such as multi-purpose and reverse circulation (RC)

GROW ENERGY AND MANUFACTURING

DIVISIONS

• Grow Manufacturing service further and utilize capabilities for larger rigs for larger Energold clients (multi-purpose rigs)

• Energold Energy division poised for strong growth as oil/gas demand continues

• Grow new business divisions water well drilling and manufacturing

19

GROWTH STRATEGY:

LEADING GLOBAL SPECIALTY DRILLER

Page 20: Egd june-2012-presentation

• IMPACT Silver Corp is a profitable

silver producer in Mexico

• ENERGOLD DRILLING CORP

owns 6.87 million shares (11%~)

• OPERATIONS

Three profitable, operating mines

at Royal Mines of Zacualpan

• EXPLORATION

Huge exploration potential in

623 sq km composed of two

under-explored Silver districts

• DEVELOPMENT

Capire open pit mine

scheduled for production

Zacualpan Processing Plant

SYMBOL IPT-TSX.V

SHARE PRICE $1.30

MARKET CAP $91 M

CASH $34 M

20

INVESTMENT HOLDINGS:

IMPACT SILVER CORP.

Page 21: Egd june-2012-presentation

-5,000

0

5,000

10,000

15,000

20,000

25,000

30,000

2006 2007 2008 2009 2010 2011

Revenues

Net Earnings

Operating Cash Flow

CD

N$ 0

00

’s

Year Ended ($CDN) Dec 31st 2008 Dec 31st 2009 Dec 31st 2010 Dec 31st 2011

Silver Production (oz) 645,668 823,571 750,259 833,607

Revenue /production

tonne sold $89.89 $109.51 $123.25 $171

CA$ direct cost/tonne

produced $54.80 $60.39 $63.29 $70

Year

21

IMPACT SILVER CORP.

PROFITABLE GROWING PRODUCER

Page 22: Egd june-2012-presentation

Analyst Company Contacts Updates

Michael Mills Beacon Securities 416-643-3871 June 1, 2012

Maggie Johnson Cormark

Securities

416-362-7485 June 1, 2012

Peter Prattas Fraser Mackenzie 416-682-4243 Apr 28, 2012

Russell Stanley Jennings Capital

Corp

416-304-2198 May 7, 2012

Kam Mangat Salman Partners 416-861-1270 May 4, 2012

Scott Parsons Toronto Dominion

(TD)

416-307-9360 Apr 30, 2012

22

ANALYST COVERAGE

Page 23: Egd june-2012-presentation

• Energold presents a compelling opportunity to invest in a broad range of commodities

and projects worldwide

• Share price linked to continued company and earnings growth

• Strong balance sheet and increasing working capital 23

ENERGOLD STOCK CHART

Page 24: Egd june-2012-presentation

Contact info

Jerry Huang, Investor Relations Manager

[email protected] 604.681.9501