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ESSENTIAL MINERALS TO POWER THE NEW ENERGY ECONOMY

ESSENTIAL MINERALS TO POWER THE NEW ENERGY …s22.q4cdn.com/744141727/files/doc_presentations/...The Company makes no representation or warranty, express or implied, and assume no

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Page 1: ESSENTIAL MINERALS TO POWER THE NEW ENERGY …s22.q4cdn.com/744141727/files/doc_presentations/...The Company makes no representation or warranty, express or implied, and assume no

ESSENTIAL MINERALS

TO POWER THE NEW ENERGY ECONOMY

Page 2: ESSENTIAL MINERALS TO POWER THE NEW ENERGY …s22.q4cdn.com/744141727/files/doc_presentations/...The Company makes no representation or warranty, express or implied, and assume no

This Presentation is not an offer to buy or sell the securities referenced herein, nor has the Securities and Exchange Commission or any state, provincial or territorial regulatory authority determined if this Presentation is truthful or complete. Any representation to the contrary is a criminal offense.

The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the applicable securities laws of any state of the United States and may be offered and sold in the United States only in reliance upon an exemption from the registration requirements of the U.S. Securities Act and in accordance with any applicable securities laws of any state of the United States.

Each prospective investor must rely on his or her own examination of Pancontinental Resources Corporation (“Pancon”) and the terms of the offering, including the merits and risks involved in making an investment decision with respect to the securities. The Company makes no representation or warranty, express or implied, and assume no responsibility for the accuracy, reliability or completeness of the information contained in this Presentation.

Forward – Looking Statements

This Presentation includes “forward looking statements”, within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “budget”, “plan”, “continue”, “estimate”, “expect”, “forecast”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the mining industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainties involved in the discovery and delineation of mineral deposits, resources or reserves; the uncertainty of resource and reserve estimates and the ability to economically exploit resources and reserves; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Pancon to obtain all permits, consents or authorizations required for its operations and activities; and health and safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Pancon to fund the capital and operating expenses necessary to achieve the business objectives of Pancon, the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Pancon. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Pancon should not place undue reliance on these forward-looking statements.

Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this Presentation are made as of the date hereof and the Pancon undertakes no obligation to update publicly or revise any forward-looking statements contained in this Presentation or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements contained in this Presentation are expressly qualified by this cautionary statement.

Historical Results

This Presentation contains past mineral exploration results. Pancon has not yet completed the work necessary to verify those past exploration results and the results should not be relied upon. In addition, this Presentation contains information with respect to adjacent mineral properties obtained through public ally available documents. Such information has not been independently verified by Pancon and is not necessarily indicative of the mineralization on Pancon’s projects. The technical and scientific information in this Presentation has been reviewed and approved by Todd Keast, P. Geo., a Qualified Person under National Instrument 43-101 of the Canadian Securities Administrations.

PANCON Disclaimer

Q1-2019 2TSXV: PUC

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PANCON HighlightsPancon’s vision is to be a leading battery metals explorer and developer.

Pancon’s mission is generating value through responsible exploration, focusing on people, commodity, geology, location and timing.

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COMMODITY

Exploring for minerals that power the new energy economy: Ni-Co-Cu

GEOLOGY

Developing projects near producing/former mines

LOCATION

Camp-sized land position near Timmins, controlling most of the gabbro complex near a former Ni-Co-Cu mine owned by Glencore01PEOPLE

Management team with track record of asset discovery, project

development and value creation

05 TIMING

As a leading global producer of Ni-Co-Cu, Canada is primed to respond to growing demand for commodities required in clean energy technologies

Q1-2019 3TSXV: PUC

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Q1-2019 4

NICKEL (Ni)

Current Price: U$14.97/lb(as of February 22, 2019)

52 Week High: U$43.32/lb52 Week Low: U$14.06/lb

Current Price: U$5.86/lb(as of February 22, 2019)

52 Week High: U$7.14/lb52 Week Low: U$4.83/lb

Current Price: U$2.96/lb(as of February 22, 2019)

52 Week High: U$3.29/lb52 Week Low: U$2.57/lb

NEW ENERGY Economy

TSXV: PUC

COPPER (Cu)

COBALT (Co)• As a leading global producer of nickel, cobalt and copper, Canada is primed to respond to the growing demand for

commodities required in clean energy technologies

• Nickel, cobalt and copper have bullish outlooks due to strong demand for electric vehicles, battery storage and

other new energy solutions

• Innovation trends in advanced battery technology require significantly more nickel content than today’s batteries

• Cobalt, primarily mined as a by-product of nickel and copper, is important as a key input for rechargeable batteries,

and thus electric vehicles

• A laptop computer contains approximately one ounce of cobalt, while an average electric car battery typically

contains more than 30 pounds of cobalt

Pancon believes our exploration work should be a positive catalyst for economic

development, environmental stewardship and social responsibility

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An emerging battery & energy metals district

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Ni-Co-Cu project in Montcalm Gabbro Complex, adjacent to Glencore’s former Montcalm Mine, 65 km NW of Timmins

MONTCALM PROJECT (Option to own up to 100%)

Ni-Co-Cu camp-sized project, in Montcalm Gabbro Complex, adjacent to Glencore’s former Montcalm Mine

GAMBLER PROJECT (100% owned)

Co-Cu-Au project with preliminary surface exploration results, 19 km SW of former Montcalm Mine

NOVA PROJECT (Option to own up to 100%)

Ni-Co-Cu project in Strachan Gabbro Complex, 15 km S of former Montcalm MineSTRACHAN PROJECT (Option to own up to 75%)

MONTCALM Regional ProjectsCamp-sized land position in low-risk area with excellent infrastructure and strong First Nation support

Q1-2019 5TSXV: PUC

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Q1-2019 6

LEADERSHIP Team & CAPITAL Structure• Layton Croft - President & CEO: More than 25 years of leadership and management experience

in North America, Asia, Europe, Africa and Latin America, including executive and advisory roles

with Ivanhoe Mines, Rio Tinto, Peabody Energy and Duke Energy. Director of Erdene Resource

Development (TSX: ERD) since 2015.

• Kevin Filo, P.Geo. - Project Advisor: Exploration geologist, mining geologist and project

generator with nearly 40 years of experience, including 30 years in the Abitibi Greenstone Belt,

Ontario. Former VP Exploration for team which acquired the Detour Gold Mine from Placer

Dome, now one of the largest gold mines in Canada.

• Todd Keast, P.Geo. – Project Manager: Exploration and project geologist with 30 years of

experience in a diverse field of commodities. Has led and advanced projects from grassroots

target generation and evaluation through to deposit discovery, delineation, environmental

permitting and PEA.

• Mark McMurdie - CFO: Chartered Professional Accountant with more than 30 years of senior leadership experience in public and private companies. Currently serving as CFO for RoscanMinerals (TSXV: ROS), as well as Director of Finance for franchisor H&S Massage Spa Canada.

• Jeanny So - External Relations Manager: More than 15 years of investor relations, corporate development, communications and communities experience in the mining sector. She is a consultant to Purepoint Uranium Group (TSXV: PTU) and a member of Prospector and Developers Association of Canada (PDAC) and Women In Mining.

BOARD OF DIRECTORS

Donald Whalen (Chair)

Layton Croft

Rick Mark

David Mosher

David Petroff

TECHNICAL ADVISORY COMMITTEE

David Mosher (Chair)

Kevin Filo, P.Geo.

Todd Keast, P.Geo.

TSXV: PUC

TSX Venture PUC

Shares Outstanding: 164,129,290

Share Price (as of February 15, 2019): $0.04

52 Week High/Low: $0.09/$0.03

365-Day Average Volume: 135,000

Options: 11,500,000

Warrants: 25,786,075

Fully Diluted: 204,415,365

Insider Ownership: 35%

Cash on Hand (as February 15, 2019): $1.3 million

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HIGHLIGHTSThe Montcalm Project covers 3,780 hectares (37.8 square kilometres) and is next to Glencore’s former Montcalm Mine

• Ni-Co-Cu project contiguous to and surrounding the former Montcalm Mine, with both hosted by Gabbro Complex

• A ~4,500-metre diamond drilling program testing early stage targets is currently underway

TSXV: PUC

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Q1-2019 8

The former Montcalm Mine, currently owned by Glencore, was discovered and developed based on a single airborne electromagnetic anomaly identified in the 1970s

Source: M.BLECHA, Teck Corporation, H. THALENHORST, Metallgesellschaft Ltd., and A.KOMURA, Dowa Mining Co

• Mine produced 3,931,610 tonnes of ore grading 1.25% nickel (Ni), 0.67% copper (Cu), and 0.051% cobalt (Co), producing in excess of 4 million pounds of Co (Ontario Geological Survey, Atkinson, 2011)

• West & East Zones approximately 200 metres long and up to 25 metres thick

• Sulfide zones indicated to continue to a depth of at least 300 metres, and remain open

MONTCALM Mine

TSXV: PUC

Selected Samples from the Montcalm Deposit

Source: C.T Barrie/A.J. Naldrett(Department of Geology, University of Toronto)

Ni % Co % Cu %

1.98 0.08 0.432.60 0.15 1.081.73 0.07 0.21

1.36 0.05 0.243.58 0.21 0.51

2.49 0.17 1.06

2.09 0.16 1.442.45 0.10 1.51

2.72 0.14 0.662.61 0.18 1.20

3.19 0.19 0.983.85 0.24 0.202.60 0.21 0.44

1.77 0.06 0.524.30 0.20 0.413.73 0.17 0.591.82 0.11 1.882.69 0.11 0.50

2.51 0.12 1.451.54 0.30 1.334.70 0.19 0.22

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Q1-2019 9

MONTCALM MineDISCOVERY GEOPHYSICAL SIGNATURE

Diamond drill hole EE-1 was collared on September 12, 1976

1.35% Ni & 0.49% Cu over 33.44m

0.38% Ni & 0.26% Cu over 40.9m

59.28 metres

119.18 metres

TSXV: PUC

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Q1-2019 10

TARGETS• Completed state-of-the-art VTEM and gravity airborne geophysical surveys over priority gabbroic

phase lithology

• VTEM survey included 280-line kilometres, covering approximately 66% of Montcalm Project

• Analysis detected numerous anomalies of interest within the gabbro phase and other prospective gabbro complex lithology

• Numerous anomalies are directly associated with or proximal to subtle magnetic feature comparable to the Montcalm Mine deposit

• ~4,500m of diamond drilling started in January 2019 to test a series of newly identified state-of-the-art VTEM anomalies

• VTEM targets are coincident with a robust gravity anomaly

• Gravity feature not recognized or explained in past exploration programs

TSXV: PUC

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HIGHLIGHTS

• Regionally, the Nova Project covers a portion of the eastern boundary

of a major regional structure known as the Kapuskasing High

• Numerous surface occurrences of Co values as well as Cu and Au

• Limited surface sampling by Teck geologist returned high-grade Co

sample (1991) containing 3,230 ppm or ~6.5 lb/t Co

• Government survey identified numerous airborne geophysical

anomalies that remain untested

Nova is an early stage Co-Cu-Au exploration project covering 2,080 hectares (20.8 km2 ) 19 km southwest of Glencore’s

former Montcalm Mine

TSXV: PUC

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Q1-2019 12

GEOLOGICAL ANALYSIS TO DATE

• Anomalous mobile metal ion (MMI) Cu responses correspond to a limited extent with elevated MMI Au responses

• Weak anomalous Au and Zn values also identified in bedrock occurrences in felsic-hosted rocks proximal to MMI Au and

Cu soil anomalies

• Suggests potential for polymetallic volcanogenic massive sulphide deposition

• All targets associated with bullseye anomaly located within a broad, complex, folded magnetic anomaly stretching across

entire property

• Magnetic anomalies are a series of bullseye targets with coincident untested EM anomalies

TSXV: PUC

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Q1-2019 13

HIGHLIGHTS

• 7,620 hectares (76.2 km2) covering significant portion of

Montcalm Gabbro Complex and a continuation of

Montcalm Project geology

• Airborne geophysical surveys and analysis will prioritize

target areas of interest

• Geophysical results to be incorporated into ongoing

interpretation and compilation with neighboring Montcalm

Project

TSXV: PUC

Camp-size property surrounding the Montcalm Project and adjacent to Glencore’s former Montcalm Mine

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Q1-2019 14

HIGHLIGHTSStrachan covers 2,280 hectares (22.8 km2) of the Strachan Gabbro Complex south of Glencore’s former

Montcalm Mine

• Pancon’s fourth early stage Ni-Co-Cu exploration project in

the emerging Montcalm battery metals district

• Underexplored gabbro 15km south of Montcalm Mine

• 2 MMI geochemical soil anomalies

• 1 explained EM anomaly, coincident with one of the MMI

geochemical anomalies

TSXV: PUC

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Q1-2019

McBride Ni-Co-Cu Project, Southeastern Ontario

• ~100 historic diamond drill holes (1960s) and ~20,000 metres of core with two

historical deposits

• North Zone Deposit: 3.9 million tons grading 0.82% Ni, 0.054% Co, 0.25% Cu*

• South Zone Deposit: 1.2 million tons grading 0.30% Ni, 0.03% Co, 0.14% Cu*

• Open along strike and at depth

Jefferson Gold Project, South Carolina, USA

• 100%-owned early stage project in prolific Carolina Gold Belt

• 12 km along trend from OceanaGold’s Haile gold mine, which produced 118,466

oz Au in 2017, production guidance for 2018 between 140,000-155,000 oz Au, and

AISC guidance of U$725-775/oz sold

• In 2011, previous Jefferson Project operators drilled four holes, all encountering

mineralization, including 164m at 1.27g/t

TSXV: PUC

* Historical Resources (1970) pre-dating NI 43-101 resources

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NEW ENERGY ECONOMY

BATTERY & ENERGY METAL PROJECTS IN THE WORLD’S SAFEST & MOST PROSPECTIVE JURISDICTION

www.panconresources.com

Twitter: @PanconResources