January 2018 A different kind of Zinc Explorer
Cautionary Statement This presentation contains certain statements that may be deemed "forward-looking statements". All statements in this presentation, other than statements of historical fact, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans" "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. Preliminary Economic Assessment (2014) 100% equity basis; US$; zinc = $1 /lb, copper = $3 /lb, iron = $105 /t, indium = $600 /kg, silver = $21 /oz, gold = $1,300 /oz. The PEA is considered preliminary in nature. It includes Inferred mineral resources that are considered too speculative to have the economic considerations applied that would enable classification as mineral reserves. There is no certainty that the conclusions within the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Preliminary Economic Assessment available at www.inzincmining.com or www.sedar.com. West Desert Preliminary Economic Assessment (April 2014) is available at www.inzincmining.com or www.sedar.com The technical content contained in this presentation is based in part on historical reports. The historical reports pre-date NI 43-101 reporting requirements and the Company cannot verify the content of the historical reports and is not responsible for the accuracy of the content of the historical reports. 2
A different kind of Zinc Explorer Raised $3.5 million to fund 2018 exploration Safe jurisdictions (Utah and Canada) Easy logistics West Desert project with robust PEA Senior style project (1.6 B lbs Zn) within junior One of the highest grade indium (critical metal) deposits in the United States Significant exploration potential WD DEPOSIT 3
Same Positive Zinc Fundamentals 4
LME Zinc Warehouse Stocks Depleting as Major Mines Shut Down & World Economy Improves 5
Indium Growing Demand Trump signs order to boost U.S. production of critical minerals Bloomberg News, Dec 20, 2017 (Bloomberg) President Donald Trump signed an executive order to reduce dependency of critical minerals used in everything from batteries to phones. The U.S. in 2016 was reliant on imports for 23 minerals including cobalt, lithium, graphite and rare-earth elements, according to a report released this week by the Department of the Interior. The U.S. was most reliant on China, which supplied the world s biggest economy with at least 20 critical minerals, the report said. The move could open up new avenues of growth, said Andrew Cosgrove, senior energy and mining analyst at Bloomberg Intelligence. Companies may be less inclined to seek out properties in foreign countries. 6
West Desert Favorable Jurisdiction Year-round road access Grid power and water at site Natural gas, transcontinental rail within 90 km Conducive to exploration, permitting and development 7
West Desert PEA* Summary Mining Low cost, conventional bulk underground mining E W Processing Simple conventional processing three high quality concentrates Zinc concentrate: 92% recovery, 55% zinc, high indium Copper concentrate: 74% recovery, 29% copper, payable gold and silver Iron concentrate: 97% recovery, 63% iron, very low silica and phosphorus, domestic market Production 1.6 B lb zinc and 0.1 B lb copper production over 15 years, plus by-products and credits Capex $250 million *Preliminary Economic Assessment (April 2014) available at www.inzincmining.com or www.sedar.com April 2014: stated at a US$ 50 GMV (Gross Metal Value) per tonne cut-off; ZnEq based on 100% recovery and Zn=$1/lb, Cu=$3/lb, Fe=$115/t, In=$600/kg 8
NPV 8 Per Share (US$/sh) IRR ( %) West Desert PEA Economics in Current Price Environment 4.00 3.00 NPV 8 per share(lhs) IRR (RHS) 40 30 2.00 20 1.00 10 0.00 PEA $1.00 $1.25 $1.50 $2.00 Zinc (US$/lb) 0 Basis: pre-tax, 100% equity; US$; zinc = variable, copper = $3 /lb, iron = $60/t, indium = $350 /kg, silver = $17 /oz, gold = $1,200 /oz. 9
West Desert PEA* Currently Large Defined Resources with Iron B EAST B WEST 100 OXIDE RESOURCE** Indicated: 1.4 Mt at 3.44% Zn, 0.20% Cu Inferred: 6.2 Mt at 2.94% Zn, 0.14% Cu UTAH SILVER MINE (Historic) 2.7Moz Silver 200 300 400 500 600 WD Deposit SULPHIDE RESOURCE** Indicated: 13 Mt 2.16% Zn, 0.23% Cu (+ In and Fe) or 6.22% ZnEq Inferred: 46 Mt 1.76% Zn, 0.22% Cu (+ In and Fe) or 5.57% ZnEq 700m depth 0 200 m *Preliminary Economic Assessment (April 2014) available at www.inzincmining.com or www.sedar.com **April 2014: stated at a US$ 50 GMV (Gross Metal Value) per tonne cut-off; ZnEq based on 100% recovery and Zn=$1/lb, Cu=$3/lb, Fe=$115/t, In=$600/kg 10
West Desert Potential for Shallow Oxide Ag & Deep Sulphide Ag Silver Intersections at Upper East of WD Deposit B EAST MINE RIDGE B WEST 100 7.4 oz/t Ag, 4.3% Zn /10.8 m EUREKA QUARTZITE UTAH SILVER MINE (Historic) 2.7Moz Silver 200 300 400 WD Deposit Silver & Zinc POTENTIAL 5.1 oz/t Ag, 6.8% Zn / 4.9 m* 500 6.0 oz/t Ag, 1.0% Zn / 1.8 m* 600 700m depth 0 200 m *True widths of intersections are estimated at 70-90%. 650 metres CC-43 11
West Desert Significant Zn-Cu Potential at Depth WD Deposit Selected Drill Intersections B EAST MINE RIDGE B WEST UTAH SILVER MINE (Historic) 2.7Moz Silver 100 7.6% Zn / 6.4m EUREKA QUARTZITE 200 300 5.7% Zn / 7.2m 400 500 WD Deposit 10.2% Zn / 3.0m 11.5% Zn / 7.0m 12.6% Zn / 5.5m 7.6% Zn / 28.7m 600 700m depth 0 200 m 7.2% Zn / 10.1m *True widths of intersections are estimated at 70-90%. Copper & Zinc POTENTIAL CC-43 7.6% Zn, 3.5% Cu, 1.0 oz/t Ag / 3.1 m* 12
West Desert Significant Upside in Indium Old Holes not Assayed for Indium New Holes Modeled as Tubes Indium is largely used for display coatings, being transparent and electrically conductive. Also used in solar cells, phone screens and LCD displays. 13
Indy Easy Access Proximal Infrastructure 85 km from intercontinental (CNR) railhead 65 km from Yellowhead transcontinental highway ~500 km from Trail smelter Connected by 60 km of well maintained Regional Forest Service roads 2WD road access to northern area of project 14
Indy Anomaly B Area 2017 Geochemistry and Mineralization OPEN Untested Untested LEGEND Zn (ppm) in soil 95 to 98%tile outline Pb (ppm) in soil High contrast axis 1.5 km 4.1% Zn, 0.52% Pb, 17.8 g/t Ag / 19.7m 3.2% Zn, 1.03% Pb, 4.4 g/t Ag / 3.0m** 4.8% Zn, 1.0% Pb, 5.7 g/t Ag / 5.0m TEX Mineralized Zone (Historical drilling) Drill Hole (Cominco 1989-90) Untested 8.9% Zn, 2.4% Pb, 55.6 g/t Ag / 1.5m 1.9% Zn, 0.04% Pb, 1.00 g/t Ag / 3.1m 0 m 250 m 2017 Soil Sample Density: 50 and 100 m spaced grid lines with 25 m sample stations * Historical drill collar locations are not verified ** Less than 50% core recovery reported in historical logs 15
2018 Plans West Desert geophysics in February West Desert drilling to start in March (weather cooperating) Silver potential Deeper Cu-Zn massive sulfides Extend existing deposit for zinc and Indium First pass Indy drilling in June WD DEPOSIT 16
For further information contact: Joyce Musial, Vice President, Corporate Affairs (604) 317-2728 www.inzincmining.com