CEG Corporation Presentation April 2015 FINAL THIRD VERSION

7/25/2019 CEG Corporation Presentation April 2015 FINAL THIRD VERSION

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11

erro Grande Mining orporation ( NSX:

“ EG”)

orporate Presentation

April 2015

!"eg#ining!"o#



22

$is"los%re State#ent

&'is presentation "ontains "ertain “orardloo*ing state#ents”! All

state#ents+ ot'er t'an state#ents o 'istori"al a"t+ t'at address a"ti,ities+e,ents or de,elop#ents t'at Cerro Grande Mining Corporation (“CEG” or t'e“Co#pan-”) .elie,es+ e/pe"ts or anti"ipates ill or #a- o""%r in t'e %t%re areorardloo*ing state#ents! orardloo*ing state#ents are oten+ .%t notala-s+ identiied .- t'e %se o ords s%"' as “see*”+ “anti"ipate”+ “.elie,e”+“plan”+ “esti#ate”+ “e/pe"t”+ and “intend” and state#ents t'at an e,ent orres%lt “#a-”+ “ill”+ “"an”+ “s'o%ld”+ “"o%ld”+ or “#ig't” o""%r or .e a"'ie,edand ot'er si#ilar e/pressions! &'ese orardloo*ing state#ents rele"t t'e"%rrent internal proe"tions+ e/pe"tations or .elies o CEG .ased oninor#ation "%rrentl- a,aila.le to CEG! orardloo*ing state#ents ares%.e"t to a n%#.er o ris*s and %n"ertainties+ in"l%ding t'ose detailed ro#ti#e to ti#e in ilings #ade .- CEG it' se"%rities reg%lator- a%t'orities+ t'at#a- "a%se t'e a"t%al res%lts o CEG to dier #ateriall- ro# t'ose dis"%ssedin t'e orardloo*ing state#ents+ and e,en i s%"' a"t%al res%lts are realiedor s%.stantiall- realied+ t'ere "an .e no ass%ran"e t'at t'e- ill 'a,e t'ee/pe"ted "onse3%en"es to+ or ee"ts on CEG! CEG e/pressl- dis"lai#s an-o.ligation to %pdate or re,ie an- s%"' orard loo*ing state#ents!

4& X: EGM



33

&a.le o ontents

4& X: EGM

6ntrod%"tion

orporate 4,er,ie

'ilean Assets 4,er,ie

11

1

Santa e"ilia

Pi#enton

1

17

7

&ordillo

atedral ;ino

S%##ar-

<

<



44

6ntrod%"tion

=

E/isting gold and "opper prod%"er it' targeted prod%"tion o 12+000 o! o gold and

50 tonnes o "opper or 2015 ro# t'e Pi#enton Mine

=

>a,e "o#pleted an %pdated 7101 reser,e and reso%r"e report in $e"e#.er+ 201 or

Pi#enton! 7?+257o gold and 1+<5< &onnes o "opper in Pro,en and Pro.a.le

=

&ra"* re"ord o "ontin%o%sl- adding to ;eser,es t'ro%g' e/ploration and de,elop#ent

=

Signii"ant drop in "osts at t'e #ine! &onnes t'ro%g' t'e #ill 'as .een in"reased!

=

M%ltiple A% and % ,ein targets at Pi#enton and &ordillo

=

M%ltiple porp'-r- e/ploration assets in @t'e rig't neig'.o%r'oods at Pi#enton+ &ordillo

and Santa e"ilia

=

%rrentl- drilling or additional goldB"opper ,eins at Pi#enton! &'e "o#pan- operates

to dia#ond rigs it' 1+000 #eter "apa"it- and one it' a "apa"it- o 00 #eters!

=

$rilling porp'-r- targets at Pi#enton it' drilling planned t'ro%g' t'is %p "o#ing

inter season

=

Pro,en e/ploration tra"* re"ord o Manage#ent and Coard

=

&'is Presentation 'as .een re,ieed .- $r! $a,id ;!S! &'o#son+ EDP o E/ploration

and a P %nder N6 7101!

4& X: EGM



55

apitaliation 4,er,ie

%##ar-

orporate 4,er,ie

S-#.ols CNSX: CEG!CAC

4&C: CEGM

S'ares 4%tstanding

(asi")

187+?88+010

4ptions+ arrants F

Con,erts

21+708+?52

S'ares %ll- $il%ted 1?<+97+?<2

C%rrent S'are Pri"e GH 0!01Mar*et Cap CH 1+87?+880

=

E/isting prod%"tion and "as' lo

=

o%r "ore assets lo"ated in a pro,en #ining riendl- %risdi"tion

=

2 'ig'l- prospe"ti,e and potentiall- sia.le A%BC%porp'-ries

=

2 'ig' grade ,ein s-ste#s

=

$rilling on "ore Pi#enton propert- at present

=

Pro,en oard and Manage#ent signii"ant e/plorationpedigree and tra"* re"ord o s%""ess%l e/plorationin"l%ding:

=

El 6ndio+ Pas"%a+ aserones+ Mari"%nga (e/

;e%gio)+ Mes3%ite+ Ag%a ;i"a+ MarteBIo.o+ Santa

e"ilia+ erro IindoJ

1 $a,id &'o#son 0!12K

2 Mario >ernande 1!9K

ernando Saen !<2K

7 Step'en >o%g'ton 1!<7K

Note 1: S'are pri"e as o( April 8+ 2015

6nsider S'are'oldings

Pi#enton Metri"s

4& X: EGM

;eser,es &onnage Grade Gold Grade opper

Na#e tonnes A% gBt 4 A% C% K t C%

Pro,BPro.!

201

19+000 11+1 7?+257 1!20K 1+<5<

;eso%r"es &onnage Grade Gold Grade opper

6nerred Deins 1<2+000 12+ <7+080 1!K 2+10<

6nerred

Porp'! 70+000+000 0!7 570+1?2 0!8K

179+00

0

Sales Gold opper L S $4IIA;SL L

2011 12+81< o 88 t

SH27+29?+00

0

2012 1+58< o 710 t

SH25+57?+00

0

201 10+5?1 o 17 t

SH19+<88+00

0

2017?+220 o

298 t SH17+0<7+000

2015 12+000 o 50 t

ro# last p%.lis'ed 7101 reser,e $e"e#.er 201!



66

Manage#ent

and

and Coard

o $ire"tors

o $ire"tors

Pa%l ! $esIa%riers (1+2++7)

&oronto+ CanadaC'air#an

A o%nder+ EDP and $ire"tor o

I4M Ii#ited! Past C'air#an ot'e Canadian Se"%rities6nstit%te and Di"e C'air#an

and Go,ernor o t'e MontrealE/"'ange!

Mario >ernande

Santiago+ C'ile

$ire"tor+ EDP Clai#s F IandMg#t!

Mining engineer it' a degreero# t'e ni,ersidad delEstado+ Ia Serena+ C'ile! >as

.een in,ol,ed in n%#ero%sproe"ts as an in,estor ande/plorer in"l%ding El 6ndio+

Pas"%a Ia#a+ Caserones andMari"%nga e/ ;e%gio.

illia# >ill (1++7)

;o"* ood+ 4N+ Canada

$ire"tor

>olds a !A!S"! in Mining ro#

t'e ni,ersit- o &oronto! Der-a"ti,e #ining engineer it'e/perien"e it' large "opperoperations in C'ile+ Per% and

t'e P'ilippines

rederi"* Seele- (1+2+7)

Ne Oor*+ SA

$ire"tor

Grad%ated it' a A ro#Prin"eton ni,ersit- and an

MA ro# Ne Oor* ni,ersit-!Started 'is "areer at S"'roderan* F &r%st and ent on to.e a o%nder and "'air#an o

Gi,ens >all an* and &r%st Co!

%an Proao ()

Poto#a"+ Mar-land

$ire"tor

Grad%ated ro# t'eni,ersidad Na"ional de6ngenieria in Ii#a it' a

degree in Mining Engineeringand ro# Stanord ni,ersit-it' a degree in Geolog- and'as .een a"ti,e in Per% and

C'ile as General Manager and$ire"tor o ,ario%s proe"ts

and #ines!

$r! $a,id &'o#son

Santiago+ C'ile

$ire"tor+ EDP $ire"tor oE/ploration

>olds a P'$ ro# t'e ;o-alS"'ool o Mines+ 6#perial

College and 'as a ,er-s%""ess%l "areer as ane/ploration Geologist and

in,estor in proe"ts in Per%+SA+ Canada and C'ile!

;i"'ard Ia"'"i* (+7)

&oronto+ Canada

$ire"tor

Partner in t'e la ir# Norton

;ose %l.rig't and spe"ialiesin se"%rities+ "orporate and

#ining #atters.

ernando Saen Po"'

>a%lpen+ C'ile

$ire"tor

>olds a M!S"! 6n 4perationsManage#ent ro# t'e

ni,ersit- o Notting'a#!General #anager o MA$ESAI+a real estate and itness "enter

operator!

Step'en ! >o%g'ton

Ne Oor*+ SA

CE4

o%nder o Cerro GrandeMining Corporation 'olds anE"ono#i"s degree ro# t'e

'arton S"'ool o inan"e andCo##er"e and started 'is

"areer at Morgan G%arantee&r%st Co#pan-!

Peter >ogg+ A

&oronto+ Canada

C4

President Pal#er Ser,i"es t'at

pro,ides a""o%nting s%pportor #%ltinational "orporations'i"' 'a,e a presen"e in

Canada .%t are it'o%t a lo"ala""o%nting depart#ent!

4& X: EGM

1 Me#.er A%dit Co##ittee2 Me#.er Co#pensation Co##ittee Me#.er &e"'ni"al Co##ittee7 Me#.er Corporate Go,ernan"e and No#inating Co##ittee



'ilean Asset 4,er,ie

Source: Technical Reports on the Pimenton Properties by WGM, Dated January 20,

Properties

roperties

Pi#enton Dein Mine Pi#enton Porp'-r-

=

>ig' grade A%+ % #ine

=

4perating at near 129 tpd 29

da-s a #ont'

=

&arget 2015 prod%"tion is

12+000 o! A% and 50 tonnes o

%

=

2015 &arget A% E3! total "as'

"ost o SH?00 o ,ers%s

SH1+1?1 o in 2017

=

%+ A%+ Mol-

=

Geolog- si#ilar to 4$EI 4S El

&eniente+ ANGI4 AME;6 ANS Ios

Cron"es+ 4$EI 4S Andina and

AN&4AGAS&AS Pela#.res #ine

=

6nerred N6 7101 reso%r"e:70Mt Q

0!8K % F 0!72gBt A%

=

6n 200<+ ;io &into esti#ated t'e

potential or a reso%r"e o 700Mt at

0!70K % and 0!7gBt A% in one target

area alone!

=

Presentl- drilling it' "o#pan-s

on dia#ond drill rigs!

4& X: EGM



EG ill on"entrate its E/ploration B

$e,elop#ent A"ti,ities Solel- on Pi#enton d%ring

t'e is"al Oear Ended Sept! 0 2015

P6MEN&4N R >6G> G;A$E A%B % M6NE

Mine 4,er,ie%##ar-

P;4D6$6NG P4S&6DE AS>I4 &4

N$ G;4P EXPI4;A&64N

EN$EAD4;S

=

>ig' grade pol-#etalli" %ndergro%nd #ine

=

E/ploration "ond%"ted ,ia driting and%ndergro%nd sa#pling and dia#ond drilling

=

200 person #ine and e/ploration "a#p

=

E/isting ater rig'ts or prod%"tion

=

Poer ro# diesel generators

=

Calendar 2015 #ine targets in"l%de:

=

6n"rease t'ro%g'p%t t'ro%g' e/ploration orne ,eins

=

Prod%"tion target o 12+000 o A% and 50tonnes C%

=

;e"o,eries o appro/i#atel- ?5K A% and ?0K C%

=

&'e #ine is prod%"ing it' a inno,ati,e andpro,en narro ,ein #ining #et'od res%lting in 80

"# #ini#%# idt' in or*ing stopes T

=

ndergro%nd #ining on #%ltiple le,els ,ia adits

=

Si/ ,einsB,ein s-ste#s *non

=

@a"*pot St%ll Mining dire"tl- o,erde,elop#ent drits

=

Co#pan- 'as t'ree o its on dia#ond drillsor*ing onsite

=

ell e3%ipped it' all re3%ired %ndergro%nd

#ining e3%ip#ent on site!

=

So#e <0K o gold prod%"tion is in t'e or# odorU 'i"' is s'ipped to Siterland

=

S%.e"t to a 5<K sliding s"ale NS;

=

Cas' operating "osts o appro/i#atel-SH?00Bo! or t'e irst 3%arter 2015!

4& X: EGM



Pi#enton Mine $rilling F $e,elop#ent

$ia#ond drilling in t'e #ine prod%"tion area a#o%nted to+?00 #eters o,er t'e past -ear! 4ngoing drilling isdedi"ated to deining ,eins or s%.se3%ent e/plorationand de,elop#ent and t'en prod%"tion+ as ell aspro,iding sol%tions or pro.le#s related to #ining and orlonger ter# prod%"tion planning! At Pi#enton e drill or

str%"t%re and drit or ore!

&'e Co#pan- 'as %st "o#pleted a <00# ra#p to a""ess'ig'er grade ore+ <0# .elo t'e #ain 1?5 le,el! &'ese'ig'er grade stopes are no .eing prepared orprod%"tion! Anti"ipated prod%"tion ro# t'is area s'o%ld.e it'in 2 #ont's!

4& X: EGM



Pi#enton R Porp'-r- E/ploration

onto%red MM6 ;esponse ;atios

+15

10-15

5-10

4 km

+15

10-15

5-10

+15

10-15

5-10

M

o

-

#

G

d

4 km

4 km

;io

&into

Potential

Potential ;eso%r"e

>istori"al &onnage Grade Gold Grade opper

Na#e Mt A% gBt o A% C% K tons C%

6nerred

700+000+00

0

0!7 5+50+000 0!70K

1+<00+00

0

Note 1: Based on 2006 Final Report by Rio Tinto available in www.ce!ceminin.com

S%##ar-

4& X: EGM

=

9 s3%are *ilo#etre propert- 120*# NNE o Santiago

=

Anglo A#eri"anBGlen"ore est all proe"t it' 7!0 #illiontons o C% #etal and 1!20 #illion os o gold in 850+000+000tons o ro"* lies 18 *# to t'e S!! o Pi#enton

=

Der- large C%BA% porp'-r- target at Pi#enton

=

&o date inerred 7101 reso%r"e o 70 Mt at 0!8K C% and72gBt A%

=

6n 200<+ ;io &into dis"losed potential or a reso%r"e atPi#enton o 700Mt at 0!70K C% and 0!7gBt A% in one targetarea!

=

S%.stantial potential to add signii"ant tonnage t'ro%g'%rt'er drilling

=

M%ltiple large Mo.ile Metal 6on C%+ A% and Mol- ano#aliesesta.lis'ed

=

Cerro Grande 'as to date drilled se,en 'oles totalling 5+885#eters on porp'-r- e/ploration it' Cerro Grandes on drillrigs

=

est 'ole to date "%t 207 #eters it' 0!82K C% and 0!27gBtA%

=

Porp'-r- targets .ased on geolog-+ assa-s andgeo"'e#istr-Bgeop'-si"s in #ine area to .e drilled in t'e"o#ing inter o 2015

=

Pi#enton lies in t'e sa#e Mio"ene trend t'at 'osts t'e #egaC'ilean "opper #ines El &eniente+ Andina+ Ios ron"es andPela#.res



&ordillo R Porp'-r- and Dein E/ploration

onto%red MM6 ;esponse ;atios

+15

1015

510

15

1015

510

G

d

G

d

S%##ar-

4& X: EGM

=

A <<! s3%are *ilo#etre propert- 12 *#so%t' o Pi#enton 'i"' is 120 *# NNE oSantiago

=

Anglo A#eri"anBGlen"ore est all Proe"t(7!0 M tons "opper 1!20 M o A%) Iies 10 *#to t'e est

=

C%BA%BMo porp'-r- target it' narro 'ig'grade A%BC%BAg ,eins at &ordillo

=

Alteration one 2 .- *#! C%BA% MM6ano#al- 1+800 .- 50 #eters

=

Copper loat e/tends .elo ridge o altereddioriti" intr%si,e o,er <00 Mts

=

< *# a""ess road %p to 7200 Mt ele,ation"o#pleted

=

%rt'er e/ploration and de,elop#ent tore"o##en"e 'en Pi#enton rea"'es

a,erage prod%"tion o 150 190 tBd at "%rrentgold pri"e

2." km

2." km



&ordilloR Assa- ;es%lts ro# S%ra"e Sa#ples

4& X: EGM



1313

atedral and ;ino R Ii#estone

N4N 4;E ASSE&S R

$6DES&MEN&BD

Io"ation Map%##ar-

=

Io"ated 90*# SE o Santiago (2 'o%r dri,e)

=

6nerred N!6! 7101 reso%r"es oappro/i#atel- 9<+100+000 tons

=

GradeV?0K CaC4

=

A""essi.le li#estone or -ear ro%nd#ining

=

>ig' grade li#estone .eds entirel- it'inloer grade li#estone

=

Conta"ts #ar*ed .- gradation

=

Ii#estone ones o W200# t'i"*

=

CaC4 grade ,aries ro# 8K R ?K

=

>ig' grade .eds ,ar- ro# 11# R W0#

=

S'ortage o lo"al li#e prod%"tion ands%pporti,e de#and

=

$eposit ell s%ited or prod%"tion o .ot'

pre#i%# 3%alit- li#e and Portland"e#ent prod%"tion

=

Potential to .%ild and operate W<00tpd li#eplant andBor W1+00+000 ton per -ear "e#entplant

Note 1: #s determined by $atts %ri&&is and 'c()at *imited+ ,ec 2010 Report available on -% website

4& X: EGM



1414

Santa e"ilia R Porp'-r- E/ploration

Io"ation Map%##ar-

=

2!5 s3%are *ilo#etres propert- 190 *# .- road east o

Copiapo! Altit%de 7700 Mts=

Mari"%nga Mine o inross Gold Corporation it' 8!2 Mos A% lies 1< *# to t'e Nort'! Prod%"ing an a,erage oso#e 200+000 o o gold per -ear

=

Cerro Casale o arri"* Gold Corporation it' 18!7 M osA% lies 11! *# to t'e so%t'!

=

2010 %ante" Geos"ien"e CSAM& s%r,e-! En"o%ntered#assi,e "entral ano#alit' #at"'ing A% and C% MM6ano#alies

=

2012 R +< #eters o dia#ond drilling on "entralano#al- split .eteen to 'oles

C$M002 9<? #eters 0!09gBt A%+ 0!19K C% F

0!01<K Mol-

C$M00 1+079 #eters 0!20gBt A%+ 0!25K C% F 0!009KMol-

=

201 R %ante" Geos"ien"e 4;64N $ $CB6PBM& s%r,e-"o#pleted o,er entire altered area

%ante" re"o##ends 2 drill targets asso"iated it' i,e

A%BC% MM6 ano#alies o%r drill 'oles are planned 1+000 #eters so%t'est o

EXE&E; ;eso%r"es Caspi"'e ore.od- ("ontained gold oplanned pit is 1?! #illion o%n"es A%+ 2!1 #illion tons oC% #etal and 71!5 #illion o%n"es o Ag a""ording toE/eter ;eso%r"es) %rt'er 2 'oles planned in "entral oneand anot'er to t'e so%t'

4& X: EGM

Anglo A#eri"an sa#pled 172 #eters o a drit

'i"' ga,e 0!<< gBt gold and 19!7< gBt sil,er near a

dia#ond drill 'ole inter"ept t'at assa-ed 11!2< gBt

gold o,er 12 #eters



1515

Santa e"ilia $rill ;es%lts

4& X: EGM

$ia#ond drill 'oles C$M 002 and 00 ere p%t don on a strong and ,er- large"entral CSAM& %ante" ano#alit' "losel- "oin"iding gold and "opper Mo.ileMetal 6on ano#alies! ot' 'oles en"o%ntered strong .%t %ne"ono#i" gold+ "opper and

#ol-.den%# #ineraliation .eneat' t'e Santa Ce"ilia sili"a "ap as s%##aried.elo!

C$M 002: $rilled d%e so%t' at <0 degrees and starting at 980 #eters .elo t'es%ra"e:

C$M 00: $rilled d%e so%t' at #in%s <0 degrees and starting at 570 #eters.elo t'e s%ra"e dept':

L

6nter"ept

Iengt' G4I$ 4PPE; M4IO

Meters #eters gBt K pp#

??7 1+097 ?0 0!17 0!2< 108

1+097 1+55< 782 0!10 0!2 155

1+55< 1+81< 1<0 0!05 0!1 271

1+81< 1+9< 178 0!0 0!0 7

&otal 9<? 0!09 0!19 178

6nter"ept Iengt' G4I$ 4PPE; M4IO

Meters #eters gBt K pp#

550 8<0 210 0!17 0!1< 5?8<0 1+0<0 00 0!1? 0!2< 71

1+0<0 1+170 90 0!2 0!28 7?

1+170 1+2<0 120 0!29 0!7 80

1+2<0 1+?0 10 0!25 0!29 187

1+?0 1+5?9 209 0!20 0!25 117

&otal 1+079 0!20 0!25 90



1616

S%##ar-

=

E/isting gold and "opper prod%"er it' prod%"tion target

or Pi#enton o 12+000o! o gold and 50 tonnes o

"opper or 2015

=

7101 &e"'ni"al ;e,ie o reser,e and reso%r"e or

Pi#enton "o#pleted in $e" 201

=

M%ltiple A%B % ,ein targets at Pi#enton and &ordillo

=

M%ltiple porp'-r- e/ploration assets in @t'e rig't

neig'.o%r'ood at Pi#enton+ &ordillo and Santa e"ilia

=

%rrentl- drilling porp'-r- targets at Pi#enton

=

Pro,en e/ploration tra"* re"ord o Manage#ent and

Coard

=

as' lo ro# prod%"tion at Pi#enton inan"es EGs

a"ti,ities

4& X: EGM

Documents

CEG Corporation Presentation April 2015 FINAL THIRD VERSION