minnova corp. maverick gold project presentation september 2014

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MCI:TSXV July 2014 Maverick Gold Project Advancing toward Gold Production in 2015/16 New Name + Larger Resource + New Mine Plan = New Beginning MINN VA CORP. O

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Maverick Gold Project Preliminary Economic Assessment (PEA) was updated on July 9th. It is filed on SEDAR (www.sedar.com) and available at www.minnovacorp.ca Highlights of PEA are as follows: Increased the NPV of the project to pre-tax NPV5% $97.7 mln (old pre-tax NPV5% of $95.4mln) despite using more conservative gold price of US$1,250/oz vs US$1,400/oz in old January 2012 PEA. After-tax NPV5% = $83.9 mln. That equates to approximately $5.00 per MCI share of value! Relative to January 2012 PEA production is higher (average +50k/yr, yrs 2-10), mine life is extended (+10 yrs), cash costs are down to US$805/oz (yrs 2-10) and AISC decreased to US$939/oz (yrs 2-10). Initial capex is up modestly to $26.3 mln (in years -1 and 1) but this is offset by net income of about $6.6 mln in year 1 so the net year -1 and 1 capital outlay is ~$20 mln or about the same as the previous PEA. Minnova Corp. is now actively seeking financing to re-start operations.

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Page 1: Minnova Corp. Maverick Gold Project Presentation September 2014

MCI:TSXV July 2014

Maverick Gold Project Advancing toward Gold Production in 2015/16

New Name + Larger Resource + New Mine Plan = New Beginning

MINN VACORP.

O

Page 2: Minnova Corp. Maverick Gold Project Presentation September 2014

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Forward-Looking Statements

2

Some statements contained in this presentation are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource and reserve statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production.

Historical resources in this presentation are historical estimates that predate NI 43-101 and are not compliant with current definitions, and have not been verified by the company; consequently, they should not be relied on by investors.

www.minnovacorp.ca

Page 3: Minnova Corp. Maverick Gold Project Presentation September 2014

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Minnova Corp. Management and Directors Focused on Shareholder Returns

3 www.minnovacorp.ca

Gorden Glenn, Chairman, President & CEO

Over 25 years industry experience in finance as Investment Banker (TD Securities and Desjardins) and Research Analyst and including 9 years as a geologist.

James D.A. White, Director

Mr. White is the Managing Partner of Baynes & White, a Toronto-based pension and benefits actuarial consulting firm.

Brian Robertson, P.Eng., Director

Over 30 years experience in corporate management, exploration programs, project management, mine permitting, construction, development and operation as well as the evaluations or corporate acquisitions.

Chris Irwin, LL.M., Interim CFO, Director

Mr. Irwin is President of Irwin Professional Corporation, a corporation providing legal services mainly to the natural resource sector.

TBD, New Director

Operations and development experience

TBD, New Director

Operations and development experience

Board of Directors

Consultants and Advisors

Notice of Alteration for Open Pit Development (NOA) – April 2014 Water Permit Application – April 2014

Nokomis Initial NI 43-101 Compliant Resource – April 2014 Updated Preliminary Economic Assessment (PEA) – July 2014 PEA to incorporate updated Resources (PL and Nokomis), new open pit mine plan and Minrail SAMSTM technology in new u/g mine plan

PL Deposit Resource Update – April 2014

New Underground Mine Plan – April/May 2014 To be incorporated in Updated PEA – June 2014 Test Mining – Fall 2014

A Century of Exploration, Development, Operations and Finance Experience

Page 4: Minnova Corp. Maverick Gold Project Presentation September 2014

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Minnova Corp. Overview

www.minnovacorp.ca 4

• Shareholder return focused management team

• Decision making process is guided by overriding philosophy that outcome must have a positive benefit to shareholders

• Re-organized and re-structured between July 2012 to June 2014

• Culminated in the name change to Minnova Corp. - a growth oriented company

• July 2014 Updated PEA on Maverick Gold Project re-confirmed significant value proposition project development represents

• After tax NPV5% = C$84 mln or $5.44/share

• Growth beyond Maverick Gold Project is possible

• Asset valuations are re-basing and management is targeting acquisition of projects for future growth

• Going forward Minnova will continue to logically advance the Maverick Gold Project to production AND seek to acquire good quality, affordable, advanced projects to de-risk them and define a clear path to production

Minnova Ready to Capitalize on Near-Term Gold Production and Acquisitions

Page 5: Minnova Corp. Maverick Gold Project Presentation September 2014

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Maverick Gold Project Location Flin Flon Gold and VMS Base Metal District

5

A Proven Gold Mining Camp with Excellent Infrastructure

Page 6: Minnova Corp. Maverick Gold Project Presentation September 2014

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Minnova’s Path To Production

www.minnovacorp.ca 6

July 2012 to December 2013

H1/2014

Initial Nokomis NI43-101 Resource

Updated PL Deposit Resource

Name changed to Minnova Corp.

Update mine plan

Updated PEA/PFS – July 2014

Survived Severe Market Downturn and Committed to Unlock Value of MGP

November

2010

Initial PL

Deposit NI43-

101 Resource

PEA

January

2012

Property

Acquisition

$3.5 mln

August

2011

January

2012

MCI.V vs HUI

Corporate Restructuring

Re-focus on MGP

Reduce Burn rate

Page 7: Minnova Corp. Maverick Gold Project Presentation September 2014

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Maverick Gold Project, Then and Now Re-start of Mining Operations Targeted for Late 2015

7

Historic Mine Development/Operations

Operated from Jan -88 to Apr-89 by Pioneer Metals

Produced 28k oz from 1988-1989 from 370,000 tonnes

1987 Kilborn feasibility recommended 500 tpd mill:

Capex: ~32 mln in 1987/88

Pioneer actually built mill with capacity of 1,000 tpd

Mill still in excellent condition today

6.9 km u/g drifting to a vertical depth of 130 m

1993 Kilborn feasibility Rsc and Rsv:

Resource: 524,376 oz @ ~7.6 g/t Au

Reserve: 184,200 oz @ 6.7 g/t Au

Minnova’s Development Work at Maverick

Updated PL and New Nokomis Resource Estimates

– Total Measured and Indicated mineral resources increased by 88% to 327,900 ounces gold

– Total Inferred mineral resources 438,600 ounces – In Pit Measured and Indicated resources

increased by 279% to 121,100 ounces Au grading 4.01 g/t Au

Positive Updated PEA July 2014 (@US$1,250/oz Au)

Production - ~50,000 oz per year

Pre-tax After-tax

NPV 0% : C$146.2 mln C$125.7 mln

5% : C$97.7 mln C$83.9 mln

8%: C$77.5 mln C$66.4 mln

IRR 59% 55%

Low capital cost - $26.3 million

Time to cash flow <18 months

Exploration and re-start upside

PL Deposit still open at depth and along strike

Numerous geophysical targets identified

Minrail SAMSTM test stope planned fall 2014

www.minnovacorp.ca

To

nn

age

(tp

d) G

rade

(g/t)

00.511.522.533.544.5

0

200

400

600

800

1000

1200

Jan

-88

Feb

-88

Mar

-88

Ap

r-8

8

May

-88

Jun

-88

Jul-

88

Au

g-8

8

Sep

-88

Oct

-88

No

v-8

8

De

c-8

8

Jan

-89

Feb

-89

Mar

-89

Ap

r-8

9

Tonnage Grade

2014 Program Focused De-Risking Mine Plan – Feasibility Study fall 2014

Page 8: Minnova Corp. Maverick Gold Project Presentation September 2014

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Minnova Corp. Capital Structure

8

Minnova Corp. (MCI: TSXV)

Share data and cash position as of June 30, 2014

Shares Outstanding 15,428,243

Warrants and Options O/S 1,299,794

Fully Diluted 16,636,045

Market Capitalization ~$8.0 million

Cash Position (June 30/14) $0.2 million

Debt ~$1.3 million

Options and Warrants

Warrants / Options

Avg. Exercise

Price

Options 782,500 $0.90

Common share warrants 2 517,294 $4.67

2) Expiring between April 2014 – February 2017

Significant Holders Ownership

Management and Directors ~9.0%

Pioneer Metals (Barrick Gold) ~4.1%

MCI: TSXV Share Price

Source: tmx.com and Minnova Corp.

www.minnovacorp.ca

Low Shares Outstanding = High Leverage to Gold Price and Production

Page 9: Minnova Corp. Maverick Gold Project Presentation September 2014

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Maverick Gold Project Existing Infrastructure - Permits being Updated – Expanded Resource

9

Historic Au Production

• Produced 28,000 oz from 1988-1989

• Existing 1,000 tpd mill

• 7,000 m underground mine workings

• Limited exploration on property

Resource Expansion Potential > 1 M oz Gold

• NI-43-101, M+I Rsc 327,900 oz Au and Inf Rsc of 438,600 ounces

• Expand and upgrade gold resources at PL and Nokomis deposits by step out and infill drilling

• Bonanza grades at Nokomis - 7.63 m with 125.08 g/t Au at Nokomis

• Numerous drilling targets outlined from VTEM survey along 20 km gold bearing horizon

• M Zone target – 1.5 km anomaly

• Drill hole A3-48 in 2011 intersected 0.50m @ 23.68 g/t Au at depth of ~250m vertical

• Follow-up ddh planned for 2014

Existing Infrastructure and Permits = Strategic Advantage

PL Property

Page 10: Minnova Corp. Maverick Gold Project Presentation September 2014

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10

Maverick Gold Project PL Deposit – Geology Surface Plan and Section

OPEN

PL Deposit

Updated NI 43-101 Resource April 14 2014

In Pit M&I Rsc increased by 151% to 80,400 oz Au @4.40g/t

Underground M&I Rsc increased by 46% to 206,800 oz Au @5.93g/t

www.minnovacorp.ca

A3-85 – 2.3 m @ 12.6 g/t Au and 0.5 m @ 24.3 g/t Au

A3-83 – 2.0 m @ 12.0 g/t Au

A3-84 – 6.2 m @ 7.6 g/t Au

A3-81 – 1.7 m @ 47.2 g/t Au, incl. 0.5 m @ 145.5 g/tAU

Resource Still Open Down Dip to North East

Page 11: Minnova Corp. Maverick Gold Project Presentation September 2014

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Community and Social Responsibility Sherridon – Cold Lake, Manitoba

www.minnovacorp.ca

Strong Local Community Support

• May 7, 2014 Community Update meeting - President and CEO Gorden Glenn and Director Brian Robertson provide MGP update and respond to questions and concerns of the local community

• Sherridon - Cold Lake, Manitoba is located approximately 13 km north of the MGP • The MGP and the local community share regional infrastructure including an all weather road, the

Keewatin Railway Company (KRC) and access to low cost, clean hydro power • We also share the same vision of re-starting sustainable, mining operations with minimal impact

to the environment • The community of Sherridon - Cold Lake, Manitoba expressed their strong support of the MGP

Page 12: Minnova Corp. Maverick Gold Project Presentation September 2014

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Maverick Gold Project – July 2014 PEA

12

• Total LOM production 483,350 • (86/14% split of u/g and open pit)

• Flexible mine plan • Average LOM Cash Costs US$798/oz • LOM AISC $1,003/oz

• AISC = operating costs + capital/sustaining cost including contingency, environmental bonding

• $26 million initial Capex to production • Offset by forecast 6.6 million yr 1 net

income • $125.7 million cumulative after –tax cash

flow at $1,250/oz • Payback from start-up in 18 months

www.minnovacorp.ca

Attractive Low Cost Production Profile with Quick Payback

$ oz

$200 oz

$400 oz

$600 oz

$800 oz

$1,000 oz

$1,200 oz

$1,400 oz

$1,600 oz

$1,800 oz

oz

10,000 oz

20,000 oz

30,000 oz

40,000 oz

50,000 oz

60,000 oz

70,000 oz

1 2 3 4 5 6 7 8 9 10 11

Open Pits (LHS) Underground (LHS) Total Cash Costs (RHS) AISC (RHS)

Forecast Production and Costs

Page 13: Minnova Corp. Maverick Gold Project Presentation September 2014

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Maverick Gold Project – Positive PEA

www.minnovacorp.ca 13

Updated PEA Planned for Q2 2014

LOM Total (000's)

Discounted at 5% (000's)

Discounted at 8% (000's)

IRR (%)

Gross Sales $629,632 $475,868 $408,206

Less royalties $18,291 $13,785 $11,807

Less selling expenses $2,900 $2,191 $1,880

Net Sales Revenue $608,441 $459,890 $394,519

Mining costs $306,573 $221,457 $185,021

Processing costs $67,399 $48,613 $40,602

G&A costs $32,461 $23,311 $19,424

Total cash operating costs $406,434 $293,381 $245,048

Net cash operating margin $202,006 $144,609 $120,247

Initial capital $26,299 $24,471 $23,481

Sustaining capital $29,504 $24,722 $22,430

Net cash flow before tax $146,203 $97,713 $77,535 59%

Taxation payable $20,463 $13,845 $11,103

Net cash flow after tax $125,739 $83,867 $66,432 55%

• Pre-tax NPV 5% = $97.7 mln, IRR = 59%

• After-tax NPV 5% = $83.3 mln, IRR = 55%

• Payback of 1.5 years after plant start-up

• Cash flow in under 18 months

• 11 year mine life

• Total gold production of 483,000 ounces

• 2.5 mln tonnes grading 6.53 g/t Au

• Open pits - 558,000 tonnes @ 4.41 g/t

• LOM strip ratio of 6:1;

• Underground - 1.98 mln tonnes @ 7.26 g/t

• Average LOM cash cost of US$798 per ounce

• AISC of US$1003 per ounce;

• Pre-production (years -1 and 1) capital of $26.3mln

• In Year 1, the projected $12.7 mln capital

expenditure is partially offset by income of

$6.6 mln;

• Total LOM Sustaining Capital = $29.5 mln

Page 14: Minnova Corp. Maverick Gold Project Presentation September 2014

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Maverick Gold Project – PL Deposit Longitudinal Section Facing West

14

Longitudinal section looking northwest showing existing underground workings, proposed open pits, and proposed stopes from all zones. July 2014 PEA and April 2014, NI43-101 Resource Estimate

Pit 1

Pit 4/5 Pit 1 Pit 2 Pit 3

www.minnovacorp.ca

AREA 1

AREA 3

AREA 2

AREA

4

Updated PEA - Optimized Mine Plan Achieves Significant Increase in Mine Production

Mined Ounces

Open Pits:

Pit 1: 4,302 oz

Pit 2: 16,340 oz

Pit 3: 14,115 oz

Pit 4: 1,837 oz

Pit 5: 6,879 oz

Total Pits: 43,473 oz

Underground:

Zone 1: 79,074 oz

Zone 2: 117,929 oz

Zone 3: 53,241 oz

Zone 4: 126,117 oz

Zone 5: 85,775 oz

Total Undergound: 505,557 oz

Page 15: Minnova Corp. Maverick Gold Project Presentation September 2014

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15

Maverick Gold Project Key Operating Permits and Infrastructure (1000 tpd Mill) In Place

Page 16: Minnova Corp. Maverick Gold Project Presentation September 2014

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New Underground Mine Plan – SAMSTM Specialized Shallow Angle Mining System

16

• Innovative modular concept and design

• Very high proportion of the mining tasks are mechanized

• Eliminate the use of manual drills for drift development • Jackleg vs Long Tom and Jumbo

• Introduction of long hole productivity techniques • Hydraulic vs pneumatic

• Enhanced work conditions and modular design result in higher productivity

• www.minrail.ca

www.minnovacorp.ca

Auriga is De-Risking MGP with New Underground Mine Plan and Innovative SAMSTM

SAMSTM developed by Minrail Inc., of Val-d'Or Quebec

Minrail has developed a unique and innovative mining system for shallow-angle mining operations (S.A.M.S.™) that promises to revolutionize mining operations as we know them today.

Page 17: Minnova Corp. Maverick Gold Project Presentation September 2014

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Old Underground Mine Plan – Conventional

17 www.minnovacorp.ca

Accepted Narrow Vein Mining Methods are Manually Intensive and Less Productive

Page 18: Minnova Corp. Maverick Gold Project Presentation September 2014

M CI :T S X V

New Underground Mine Plan – SAMSTM Specialized Shallow Angle Mining System

18 www.minnovacorp.ca

Innovative Mechanized Rail-Based System is Safer with Higher Productivity

Page 19: Minnova Corp. Maverick Gold Project Presentation September 2014

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Maverick Gold Project – Exploration Upside

19

Targeting in excess of 1,000,000 ounces gold

Well-defined major regional gold mineralized structure at the northern border of Flin Flon greenstone belt

Drill program planned to expand resources

Maverick Property covers over 20km of strike length

Target has well-defined geophysics trend with several showings found along strike

Updated MGP NI 43-101

In Pit M+I Rsc 121,100 oz @ 4.01 g/t Au

Underground M+I Rsc increased by

46% to 206,800 ounces Au

Total M+I Rsc 327,900 @ 5.93g/t Au

Total Inf Rsc 438,600 ounces Au

M Zone Drill hole A3-48

0.50m @ 23.68 g/t Au

PL Deposit and Onsite Mill

Nokomis Deposit Ind Rsc 40,700 oz Au Inf Rsc 19,100 oz Au

www.minnovacorp.ca

Property Unexplored away from Known Deposits

Page 20: Minnova Corp. Maverick Gold Project Presentation September 2014

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Maverick Gold - Nokomis Deposit Satellite Deposit just 8km Northeast from the Maverick Mill

20

• Potential open pit satellite deposit • Confirmation drilling program complete

• Indicated mineral resource of 40,700 ounces • Inferred resource of 19,100 ounces of gold

• Initial high-grade gold intercepts • 125.08 g/t over 7.6 m (incl. 1,830 g/t over 0.5 m); • 12.27 g/t over 5.2 m; • 5.1 g/t over 6.4 m; • 9.65 g/t over 5.6 m (incl. 62.23 g/t over 0.5 m)

High-grade near-surface mineralization

www.minnovacorp.ca

Incremental Mill Feed from Nokomis Enhances MGP Economics

Page 21: Minnova Corp. Maverick Gold Project Presentation September 2014

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Maverick Gold - Nokomis Open Pit

www.minnovacorp.ca 21

Nokomis Pit Optimisation • Tonnes in mine plan - 228,000 • Grade - 4.3 g/t Au • Contained gold - 31,500 0z • Strip ratio 6.3:1 • Production starting in year 3 • High grade vector (>30 g/t Au)

to be tested (yellow line inbox)

Page 22: Minnova Corp. Maverick Gold Project Presentation September 2014

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Minnova Corp. Attractive Value Proposition

22 www.minnovacorp.ca

One of the Most Attractive Near Term Producer Value Propositions AISC: Cash Costs + Corp. G&A + All Capex (Exploration, Development, Sustaining)

Low AISC

Source: Scotiabank

MCI

0.00x

0.10x

0.20x

0.30x

0.40x

0.50x

0.60x

0.70x

0.80x

0.90x

P / NAV

Attractive grade - Resource open

Low P/NAV relative to other emerging producers

Low Cash operating costs

Low AISC

Low Capital Intensity

Short time to production

PL and Nokomis Deposits

open to expansion

Minnova

Page 23: Minnova Corp. Maverick Gold Project Presentation September 2014

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Minnova Investment Highlights

23

Near-term gold production, with excellent exploration upside

Past producing property, with significant onsite infrastructure

1,000 tpd mill, ancillary facilities, ramp and underground workings

Road access to property, access to grid power and railway

Final permitting in progress to achieve production in late 2015

April 2014 NI 43-101 Resource Estimate:

Total M+I Rsc 327,900 @ 5.93g/t Au

Total Inf Rsc of 438,600 ounces Au

Open pit and shallow underground

Positive July 2014 Updated PEA for open pit and U/G mine re-start

Average annual production of ~50,000 ounces at C2 cash cost of $798/oz

Start-up capex of $26.3 Million Partially offset by $6.6 M in yr 1 income

un-discounted cash flow: $130 Million

www.minnovacorp.ca

MCI’s Value Proposition is One of the Best in the Jr Gold Development Sector Today

Page 24: Minnova Corp. Maverick Gold Project Presentation September 2014

M CI :T S X V

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For more information:

Minnova Corp. MCI :TSXV +1 647 985 2785 365 Bay Street, Suite 400 Toronto, Ontario M5H 2V1 www.minnovacorp.ca MCI_Minnova MCI.Minnova

Contact Information