TSX:ANX
Corporate Presentation | May 2017
From the ground up
Forward Looking Statements
TSX:ANX
This document contains or refers to forward-looking information. Such forward-looking information includes, among
other things, the Arrangement, statements regarding the combined company, estimates and/or assumptions in
respect of future production, mine development costs, unit costs, capital costs, timing of commencement of
operations and future economic, market and other conditions, and is based on current expectations that involve a
number of business risks and uncertainties. Factors that could cause actual results to differ materially from any
forward-looking statement include, but are not limited to: the approval of the Arrangement by the Toronto Stock
Exchange and the TSX Venture Exchange; the approval of the Arrangement by the Ontario Superior Court of Justice;
capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in
commodity prices; delays in the development of the any projects caused by unavailability of equipment, labour or
supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional
funds required to finance the completion of a project; the realization of the expected benefits resulting from the
combination of the two entities (or the strategies or future actions of the companies); and other factors. Additionally,
forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends
on the business. Forward-looking statements may include words such as "plans," "may," "estimates," "expects,"
“intends,” "indicates," "targeting," "potential" and similar expressions. These forward-looking statements, including
statements regarding Anaconda’s beliefs in the potential mineralization, are based on current expectations and
entail various risks and uncertainties. For further details of other risks and uncertainties, please refer to Anaconda
and Orex’s public disclosure available on SEDAR at www.sedar.com, in particular Anaconda’s Annual Information
Form and Orex’s MD&A’s. Forward-looking information is subject to significant risks and uncertainties and other
factors that could cause actual results to differ materially from expected results. Readers should not place undue
reliance on forward-looking statements. The forward looking information contained in this document is made as of
the date hereof and we assume no responsibility to update them or revise them to reflect new events or
circumstances, except as required by law.
2
From the ground up
About Anaconda
TSX:ANX
 Established Newfoundland Gold Producer; Expanding
to greater Atlantic Canada
 Currently, ~16,000 ounces of annual production
 Substantial operating infrastructure in place
 Complete pipeline of Production, Development and
Exploration projects
 Leveraging infrastructure to facilitate M&A and
increase production in the long term
 Potential to mine from multiple sources; process at
Pine Cove Mill
 Announced first major acquisition on March 3, 2017 –
Orex Exploration Inc.
3
From the ground up
Investment Highlights
TSX:ANX
 Atlantic Canada Regional Gold Producer and Developer
•
•
Only pure play gold producer in region
Will work towards bringing next gold mine into production (Goldboro), assuming positive results of further technical study
 Platform for growth in Atlantic Canada
•
•
•
High-performing, upgraded mill
15+ years of tailings capacity
Operating port facility
 Significant mineral resource portfolio
•
•
Main projects – Point Rousse (NL) and Goldboro (NS)
Over 600,000 ounces in the measured and indicated categories; Over 400,000 ounces in the inferred category
 High grade mineral resources
•
•
Approx. 70% of measured and indicated resources are above 5.0 g/t(†)
Approx. 85% of inferred resources are above 4.0 g/t (†)
 Management team with track record of running profitable, safe operations
•
•
•
•
100+ years of experience
CIM, Newfoundland Branch, Miner of the Year, 2016
Top 30 Best Places to Work in Atlantic Canada, 2016
Generated nearly $40M in project level EBITDA in the last 5.5 fiscal years
MINER
OF THE
YEAR
2016
Newfoundland Branch
 Stable, low-risk mining jurisdiction
4
2017
From the ground up
Orex Acquisition Rationale
Orex / Goldboro Project
• Substantial mineral resources
• High grade resource
• Located on tidewater
• Mining friendly jurisdiction
•
•
•
•
•
•
TSX:ANX
Anaconda / Point Rousse Project
• Management team
• Track record of profitable operations
• Development experience
• Mill facility
• Tailings capacity
• Port facility
Acceleration of development of Goldboro Project
Potential for substantial capital cost reductions at Goldboro if can use Pine Cove Mill
Potentially extend longevity of Anaconda and increase annual production to much higher levels
Potential for corporate and operating synergies
Strong position to participate in future consolidation of Atlantic Canada gold assets
Greater market presence, enhanced liquidity and a broader capital markets profile
5
From the ground up
Overview of Terms
Transaction
Summary
TSX:ANX
 0.85 of an Anaconda share for every Orex share, equivalent to ~C$0.064 per Orex share (based on Anaconda’s closing price as of
March 10, 2017)
 Total transaction equity value of C$12.9M
ProForma
Ownership
 54.9% Anaconda shareholders / 45.1% Orex shareholders on a non-diluted basis
Conditions
 Structured as a plan of arrangement
 Orex - 66⅔% shareholder and certain warrantholder approval of the arrangement and 66⅔% shareholder approval for
continuance
 Anaconda – simple majority approval to issue Anaconda shares to Orex shareholders; 66⅔% shareholder approval for a
consolidation of shares (arrangement is not conditional on the consolidation)
 Customary regulatory and court approval
Governance
 Board to consist of 7 members; 5 existing Anaconda directors and two members from Orex
Other
Timeline
 Unanimous support of the Board of Directors of both Anaconda and Orex
 Lock-ups with officers, directors and key shareholders (Anaconda – 20.6% of ANX outstanding shares; Orex – 25.4% of OX
outstanding shares)
 Customary non‐solicitation covenants on Orex, subject to normal fiduciary outs, and Anaconda right to match
 C$500,000 termination fee payable to Anaconda; C$250,000 termination fee payable to Orex
 Definitive agreement signed on March 2, 2017
 Transaction expected to close in May 2017
6
From the ground up
Transaction Overview
TSX:ANX
Units
Anaconda(*)
Orex(**)
MergeCo(***)
Share Price (March 10, 2017)
(C$)
$0.075
$0.06
$0.075
Basic Shares Outstanding
(M)
209.3
202.6
381.5
Basic Market Capitalization
(C$M)
$15.7
$12.2
$28.6
Cash
(C$M)
$0.9
$1.2
$2.1
Debt
(C$M)
$0.9
$0.0
$0.9
Enterprise Value
(C$M)
$16.1
$11.0
$27.4
Measured & Indicated Resources
(000 oz)
190
457
647
Inferred Resources
(000 oz)
68
373
441
*
Cash and debt as at March 31, 2017. Anaconda also had an unused line of credit of $1,000,000 at March 31, 2017 for total liquidity of approximately $1.9M.
Resources do not take into account production from the Point Rousse Project since December 2015.
** Cash and debt as at December 31, 2016.
*** Based on 0.85 Anaconda shares for each Orex share and assuming no change in Anaconda’s share price.
7
From the ground up
Enterprise Value
TSX:ANX
Enterprise Value / M&I, Inferred Resources (C$/oz)
$350
$300
$250
$200
$150
$100
$50
$0
$344
Developer /Un-Funded
Producer / Fully Funded
$169
$157
$134
$95
$94
$91
$87
$85
$83
$66
$61
$57
$56
$54
$44
$26
$24
$24
$18
$8
Legend
Anaconda/Orex
NewCo
NOTE: Producer comps are small-mid cap producers (generally sub 200k oz/year in safe jurisdictions - GUY is the only exception);
Exploration/development comps are all Canadian based assets with mineral resources under 5M ounces.
Producers
Developers
Averages
8
From the ground up
Experienced and Invested Team
Executive Management Team
TSX:ANX
Board of Directors
Dustin Angelo
President, CEO & Director
Tim Casgrain (Chairman)
Vice Chairman of Skyservice Business Aviation Inc.
Robert Dufour
Chief Financial Officer
Kevin Bullock
Chief Executive Officer of Golden Reign Resources Ltd.
Paul McNeill
Vice President, Exploration
Michael Byron
President & CEO of Nighthawk Gold Corp.
Gordana Slepcev
Vice President, Technical Services
Glenn Dobby
Vice President of Woodgrove Technologies Inc.
Allan Cramm
Vice President & General Manager
Lewis Lawrick
Managing Partner of Thorsen-Fordyce Merchant Capital Inc.
Lynn Hammond
Vice President, Public Relations
Maruf Raza
Partner at MNP LLP




Over 100 years of cumulative experience in mining on the executive management team.
Experience in developing and operating mining projects in Atlantic Canada.
Board and Management collectively own approximately 8% of Anaconda Mining Inc. (before closing of Orex transaction).
Two Anaconda directors will step down at the closing of the Orex transaction and will be replacedby two Orex appointees.
9
From the ground up
Financial Overview
TSX:ANX
Revenue and EBITDA
Unit Economics
$1,800
$30,000,000
$1,700
$25,000,000
$1,600
$1,500
$20,000,000
$1,400
$1,300
$15,000,000
$1,200
$10,000,000
$1,100
$1,000
$5,000,000
$900
$800
FY 2012
FY 2013
Revenue per ounce
FY 2014
FY 2015
FY 2016
$-
Forecast FY
2017**
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
Forecast FY
2017**
Cash operating cost per ounce (PRP level)
All-in sustaining cash-cost per ounce *
10
Revenue - Gold Sales
EBITDA - Point Rousse Project
* - Includes operating costs, corporate costs, sustaining exploration/development investments and capital expenditures.
** - Forecast information is based on the actual performance for the first three quarters of FY 2017 and projected performance for Q4 FY 2017. For more
information on FY2017 forecast information, see news release dated November 8, 2016.
EBITDA - Consolidated
From the ground up
Project Locations / Mineral Resources
TSX:ANX
Mineral Resource Table1
Goldboro5 (Nova Scotia)
Point Rousse Project
Viking Project
Goldboro Project
Category
Tonnes
Gold (g/t †)
Ounces
Measured
171,000
5.39
29,600
Indicated
2,385,000
5.58
427,800
Inferred
2,669,000
4.35
372,900
Pine Cove2,3 (Point Rousse Project, Newfoundland)
Category
Tonnes
Gold (g/t †)
Ounces
Indicated
1,560,000
1.67
83,685
Inferred
208,700
1.57
10,565
Probable Reserves
858,800
1.46
40,400
Stog’er Tight3 (Point Rousse Project, Newfoundland)
Category
Tonnes
Gold (g/t †)
Ounces
Indicated
204,100
3.59
23,540
Inferred
252,000
3.27
26,460
Thor4 (Viking Project, Newfoundland)
Category
Tonnes
Gold (g/t †)
Ounces
Indicated
1,817,000
1.42
83,000
Inferred
847,000
1.15
31,000
11
From the ground up
Goldboro Project
TSX:ANX
Goldboro5
Category
Tonnes
Gold (g/t †)
Ounces
Measured
171,000
5.39
29,600
Indicated
2,385,000
5.58
427,800
Inferred
2,669,000
4.35
372,900
~66,000 metres of modern
(1984) diamond drilling
Goldboro Deposit
 High-grade gold in quartz veins and
disseminated gold in wall rock
 Past production of ~55,000 ounces at
~6.7g/t(†) gold
 Mineralized from surface to depths of
250 to 350 metres
 Repeating folded vein system - Victoria
Gold Fields (Australia) analog
Decline
Shaft
Deposit
Road
Network
Deposit
Immediate Goldboro Opportunities
 Optimize the current resource to an open
pit and underground development plan
 The deposit remains open for expansion
along strike and at depth
12
From the ground up
Goldboro Project Infrastructure
TSX:ANX
Dock
Shaft
Decline
Infrastructure
 Existing Decline and Shaft
 Existing and maintained mine road
 Adjacent to tide water – existing port
Dock
13
From the ground up
Goldboro Project Development
TSX:ANX
Goldboro Development Strategy:
Leverage the port, mill and tailings infrastructure at
Point Rousse and bring the Goldboro project to
development in the near term
Point Rousse
Short Term (2017) Milestones and Key Work Initiatives:
Optimize the resource model to the development plan
Begin Environmental Assessment process this spring
Determine drilling needs for prefeasibility and begin drilling
Characterization of ore/waste (geotech, geochemistry, ARD, milling
characteristics, metallurgical work, etc.)
 Infrastructure assessment (Goldboro dock, barges, etc.)
 Costing and Mine Planning
 Government and community consultations




Goldboro
14
From the ground up
Point Rousse Project
Production and Pipeline
Point Rousse3 (Pine Cove)
Category
Cut-Off (g/t
Indicated
Resources1
†)
0.7
Tonnes
1,560,000
Grade (g/t
†)
Gold (oz)
1.67
83,685
Resources1
0.7
208,700
1.57
10,565
Probable Reserves2
0.7
858,800
1.46
40,400
Inferred
Point Rousse3 (Stog'er Tight)
Category
Cut-Off (g/t †)
Tonnes
Grade (g/t †)
Gold (oz)
Indicated
Resources1
0.8
204,100
3.59
23,540
Inferred Resources1
0.8
252,000
3.27
26,460
Argyle Prospect Drill Result Highlights
From (m)
To (m)
AE-16-40
34.0
49.0
15.0
5.52
AE-16-39
86.8
92.8
6.0
9.31
AE-16-43
94.0
109.0
15.0
2.95
AE-16-33
68.3
80.4
12.1
2.91
Au (g/t†)
Permitted (Blue) and Planned* (Green) Production
for the Next Five Calendar Years
 Currently, permitted for
continued production at Point
Rousse Project ensuring the
next 2.5 years of production.
 Infill drilling to establish a new
resource at Point Rousse
(Argyle)
2.5
500,000
400,000
300,000
200,000
1.33
1.53
Scrape Trend
15
1.97
1.92
-
2.0
1.5
0.5
100,000
Argyle
Stog’er Tight
1.74
1.0
2017
2018
Permitted (Point Rousse)
Pine Cove
Interval
(m)
Hole ID
TSX:ANX
2019
Planned (Argyle)
2020
2021
0.0
Average Grade (g/t)
*Planned production does
not have verified economic
viability and is preliminary in
nature. See additional
cautionary disclaimers
provided at the end of this
presentation.
From the ground up
Point Rousse Project
TSX:ANX
Operating Gold Mill
~1,300 tpd (24-hour run rate)
84%-86% Recovery
94% Availability
Additional capacity available
Water Access
Port Rousse
~1 km from mill
20,000
14,879
11,977
14,577
15,821
16,023
Dock construction completed
16,000
12,000
8,000
4,000
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Historical Production (ounces of gold)
Dry Tonnes Processed
Ounces Au
Tonnes
5-Year Production
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
-
Pine Cove Mill
Currently shipping construction aggregate
Tailings Capacity
Constructed facilities (~1 yrs)
Pine Cove Pit (15+ yrs) (Permit in Progress)
16
Tailings Facility
and Pine Cove pit
From the ground up
Expected Milestones / Catalysts
TSX:ANX
Proposed Production Timeline for Established and Planned Projects*
2017
Point Rousse
2018
2019
2020
2021
Ongoing
Point Rousse
Goldboro
*Planned production at all projects, proposed from mid-2019 onwards, does not have verified economic viability and is preliminary
in nature. Further, proposed production from mid-2019 onwards at Point Rousse is subject to successful exploration and
development. See additional cautionary disclaimers provided at the end of this presentation.
Goldboro
Point Rousse
Goldboro
Technical Study (NI 43-101 Resource Estimate)
Permitting
Close of Transaction
Publish Technical Study/Guidance
Begun
Begin April ‘17
May ’17
Q4 ’17
Argyle Resource Confirmation Drilling
Permitting/Start baseline studies
Publish Technical Study/Guidance
Submit Environmental Registration Document
Prelim. Est. Cost: $4,500,000
Summer ‘17
Begin April ‘17
Q4 ’17
Q1 ’18
Prelim. Est. Cost: $1,500,000
17
From the ground up
Key Investment Takeaways
TSX:ANX
 A combination of Anaconda and Orex provides the catalyst for a
potential re-rating in our stock
 Acquiring a significant amount of mineral resources at an
attractive price
 Management team experience and existing infrastructure can
potentially de-risk and accelerate the development of Goldboro
 First mover advantage as a consolidator of gold assets in the
Atlantic Canada region
 Platform in place to be a major gold producer in Atlantic Canada
18
From the ground up
TSX:ANX
Appendices
Point Rousse Mines and Development
TSX:ANX
Purple/Blue/Green – Resource Blocks
Gold/Benches– Pit Design
Argyle
Pine Cove
Stog’er Tight
Scrape Trend
Pine Cove
Stog’er Tight
Pine Cove and Stog’er Tight mines
 Permitted production
 Proven operations
 Existing infrastructure
 2.5 years of production
Argyle
Purple/Blue – Resource Blocks
Orange – Pit Design
Argyle
 New discovery – recent drill success
 In-house resource and conceptual pit
 Requires expansion and infill drilling,
43-101 compliant resource
calculation, permitting
Purple/Blue – Resource Blocks
White – Pit Design
21
From the ground up
Point Rousse Aggregates Project
TSX:ANX
 Announced on October 27, 2016; Began shipping in
September
 Project involving Anaconda, Shore Line Aggregates
and Phoenix Bulk Carriers
 Fulfilling ~3.5M-tonne aggregates contract for a
project on eastern seaboard of US over 14 months
 Opportunity for Anaconda
• Monetizing waste rock and receiving
approximately $2M in gross revenue over 14
months
• No capital required; own any improvements to
site and fixed dock facility infrastructure
• Shorter haul distance; lowering mining costs
• Potential for future aggregates contracts
• With modifications, can import ore from other
project locations
22
From the ground up
Viking Project Development
Legend Au (g/t):
1-2 – Green
2-4 – Pink
+ 4 – Dark Red
TSX:ANX
Pit
Design
Viking resource
blocks
200m
Existing resource has ~60% of current Indicated
Resource1 greater than 3 g/t †
Thor4 (Viking Project, Newfoundland)
Category
Tonnes
Gold (g/t †)
Ounces
Indicated
1,817,000
1.42
83,000
Inferred
847,000
1.15
31,000
23
From the ground up
Argyle Drill Program Results
Argyle Phase 2
Argyle Phase 1
To (m)
TSX:ANX
Width (m)
Au
Hole ID
From (m)
AE-16-03
4.5
16.5
12.0
1.32
including
5.5
15.5
10.0
1.52
and
5.5
7.5
2.0
4.71
AE-16-04
3.1
6.0
2.9
1.02
AE-16-05
4.0
5.0
1.0
1.59
AE-16-06
3.7
10.0
6.3
4.35
including
4.2
9.0
4.8
5.58
AE-16-08
4.4
5.0
0.6
1.09
AE-16-09
23.4
28.0
4.6
1.42
including
25.0
28.0
3.0
1.95
AE-16-10
25.5
29.6
4.1
0.34
AE-16-11
35.0
43.9
8.9
6.09
including
37.0
43.9
6.9
7.67
AE-16-12
22.8
27.0
4.2
1.15
including
24.0
27.0
3.0
1.46
and
Hole ID
(g/t†)
25.0
27.0
2.0
2.06
and
42.0
43.0
1.0
1.45
AE-16-13
22.8
23.4
0.6
0.57
AE-16-14
24.0
25.6
1.6
3.20
AE-16-15
34.0
37.0
3.0
0.74
AE-16-16
13.0
16.0
3.0
1.41
AE-16-17
43.0
45.1
2.1
1.25
AE-16-19
19.0
21.6
2.6
1.68
AE-16-20
18.0
32.0
14.0
2.05
including
28.0
32.0
4.0
4.86
AE-16-21
35.0
35.9
0.9
1.51
*Hole BN-16-269: Mineralization discovered in the bottom portion of the drill hole is hosted by the
Stog’er Tight gabbro.
AE-16-23
and
AE-16-24
and
and
AE-16-26
AE-16-27
AE-16-28
AE-16-29
and
AE-16-30
and
and
and
AE-16-31
AE-16-32
AE-16-33
including
AE-16-34
AE-16-35
including
AE-16-37
AE-16-38
AE-16-39
including
AE-16-39
AE-16-39
AE-16-40
including
and
AE-16-41
AE-16-41
AE-16-42
AE-16-43
including
24
AE-16-44
and
and
From (m)
To (m)
Interval (m)
Au (g/t†)
25.5
44.6
28.0
33.0
34.6
58.3
73.2
69.5
32.6
109.0
48.0
53.5
56.0
62.0
25.0
50.0
68.3
72.0
32.0
15.9
22.0
33.4
74.0
86.8
89.8
95.8
100.8
34.0
39.0
39.0
49.0
56.0
76.0
94.0
103.0
59.0
87.0
99.0
27.7
45.8
29.0
34.0
36.0
61.9
74.0
69.7
33.4
109.9
51.0
55.0
57.0
63.0
26.0
52.0
80.4
75.0
34.0
26.0
26.0
36.0
77.7
92.8
90.8
97.8
101.8
49.0
43.0
40.0
50.0
58.0
78.0
109.0
106.0
60.0
87.9
100.0
2.2
1.2
1.0
1.0
1.4
3.6
0.8
0.2
0.8
0.9
3.0
1.5
1.0
1.0
1.0
2.0
12.1
3.0
2.0
10.1
4.0
2.6
3.7
6.0
1.0
2.0
1.0
15.0
4.0
1.0
1.0
2.0
2.0
15.0
3.0
1.0
0.9
1.0
1.10
0.56
0.88
0.55
1.08
1.59
0.52
0.50
0.54
4.13
1.36
0.80
0.74
0.81
1.52
1.27
2.91
8.55
3.63
0.74
1.31
0.95
0.59
9.31
46.60
0.64
1.07
5.52
14.01
34.50
0.50
0.69
3.05
2.95
6.94
0.50
2.44
1.90
From the ground up
Biographies
TSX:ANX
Dustin Angelo | President, CEO & Director
Dustin has been President and CEO of Anaconda Mining, a Toronto Stock Exchange listed company, since September 2010, and has been a director since
November 2009. Under his guidance, Anaconda has expanded its land package ten-fold at its flag ship asset, the Point Rousse Project, on the Ming’s Bight
Peninsula in Newfoundland, acquired three additional projects close to Point Rousse, cleaned up the balance sheet of the company and built a sustainable,
profitable company. Prior to joining the Anaconda team, Dustin served as CFO of Elgin Mining Inc. (formerly known as Phoenix Coal Inc., a TSX-listed resource
company) where he was integral in the growth of the organization from a private enterprise to a publicly-listed company from August 2006 to November 2010; as
vice-president of MHI Energy Partners (an energy-focused private equity fund) from 2005 to 2006, and; as a Principal at New York City’s Waller Capital Corporation
(a boutique investment bank focused on mergers and acquisitions) from 1997 to 2005. Dustin was also a founding member and director of North American
Limestone Corporation (a private developer and operator of limestone quarries in the United States). Dustin earned a BSBA in Accounting and International
Business from Georgetown University and a MBA from the Columbia Business School. He is a Certified Public Accountant, licensed in the state of Kentucky.
Robert Dufour | CFO & Corporate Secretary
Robert Dufour was appointed Chief Financial Officer of Anaconda Mining in May 2017. Mr. Dufour brings a strong track record in the mining sector with deep
experience in capital markets and finance, including debt structuring, royalty arrangements and financing, as well as extensive experience with corporate
governance and risk management. Most recently Mr. Dufour was Chief Financial Officer of Newmarket Gold, a TSX listed mid-tier Australian gold producer which
produced over 220,000 ounces of gold. Mr. Dufour was part of the team that executed the transformational merger between Newmarket Gold and Kirkland Lake
Gold, creating a new 500,000+ ounce gold producer in 2017. Prior to his appointment as Chief Financial Officer at Newmarket Gold in 2015, Mr. Dufour was
Chief Financial Officer of Crocodile Gold. In 2015, Mr. Dufour also led the merger between Newmarket Gold and Crocodile Gold. Mr. Dufour joined Crocodile Gold in
June 2012 as Director of Finance, and was appointed Chief Financial Officer in April 2013. Mr. Dufour is a Chartered Professional Accountant with over 12 years of
finance and accounting experience. He started his career with the Toronto office of PriceWaterhouseCoopers. He later joined Northgate Minerals Corporation as
Corporate Controller and subsequently was promoted to Group Financial Controller for Northgate's Australian subsidiaries, and was based out of Victoria, Australia
until its acquisition by AuRico Gold.
25
From the ground up
Biographies
TSX:ANX
Gordana Slepcev | Vice President ,Technical Services
As the Vice President of Technical Services, Gordana Slepcev is directly responsible for overseeing the mining and geology departments at the
Point Rousse Project in Newfoundland. In addition to a focus on delivering long- and short-term planning and geological support of the mining
operation, she is also heavily involved in strategic planning and project expansion evaluations. With a Master’s Degree in Science and a Bachelor’s
Degree in Mining Engineering from the Yugoslavia (Belgrade) Faculty of Mining and Geological Engineering, combined with more than twenty years
of experience in mining base metals, coal and gold, Ms. Slepcev brings invaluable industry expertise to the project. In addition to Anaconda Mining,
she has held senior roles at Labrador Iron Mines Holdings, Agrium Inc. and Western Coal Corp.
Paul McNeill | Vice President, Exploration
Mr. McNeill joined Anaconda in the summer of 2014. Formerly, he served as Principal Geologist with Paladin Energy Ltd. from 2011 to 2013 and
Vice President – Exploration for Aurora Energy Resources Ltd. from 2009 until 2011 where he was focused on the development of the Michelin
Project in Labrador, as well as working on uranium projects in Australia and a gold project in Nevada. Prior to that, Mr. McNeill was Exploration
Manager for Mega Uranium Ltd. and worked as a consultant to a variety of gold and uranium exploration companies including Rubicon Minerals
Inc. and Monster Copper Ltd. Mr. McNeill has an expertise in structural controls on mineralization and project development. He also has experience
in managing First Nations relationships and developing a positive rapport to the benefit of the native community and the company. Mr. McNeill is a
Professional Geologist registered in the Province of Newfoundland and Labrador, is a Member of the Board of Mining Industry NL and is a member
of the CIM Newfoundland executive.
26
From the ground up
Biographies
TSX:ANX
Allan Cramm | Vice President & General Manager of the Point Rousse Project
Allan Cramm is the General Manager of Anaconda’s Point Rousse Project in Baie Verte, Newfoundland and Labrador. He is responsible for the
overall operation of the project including permitting, construction, production and special projects. Allan has been involved in various management
and supervisory roles associated with mining for the past 25 years (both open pit and underground) including Project Coordinator/General
Manager of two underground mines in Newfoundland, Nugget Pond and Hammerdown, that used a central-processing facility. He has a high regard
for environmental protection with some associated projects having been recognized provincially and nationally for their attention to environmental
stewardship.
Lynn Hammond | Vice President, Public Relations
Lynn Hammond has been the Vice President Public Relations for Anaconda Mining since December 2015, responsible for media, public and
government relations. Her career experience consists of senior roles in public service including Director of Communications for Newfoundland and
Labrador government departments of Municipal Affairs, Fire and Emergency Services, Education and Post-Secondary Education. She also held
senior positions in the Communications Branch of Executive Council and the Office of the Premier. Through her career she has earned the
reputation of a “fixer” often taking on some of government’s most challenging communications activities.
27
From the ground up
Technical References
TSX:ANX
References with an asterisk (*) are footnotes and provided on the same slide.
The numbered references below apply throughout this presentation.
† - Grams per tonne
1 - Mineral Resources are not Mineral Reserves and do not imply the economic viability of the resource. The Pine Cove Resource statement includes the
Pine Cove Reserves.
2 - Pine Cove and Stog’er Tight Resources and Reserves do not include production since the December 8, 2015 NI 43-101 Technical Report
3 - 0.7 g/t cut-off for Pine Cove and 0.8 g/t cut-off for Stog’er Tight as per “NI43-101 Technical Report, Mineral Resource and Mineral Reserve Update on
the Pine Cove Mine and Mineral Resource Estimate on the Stog’er Tight Deposit, Point Rousse Project, Baie Verte, Newfoundland and Labrador, Canada”
authored by independent qualified persons David Copeland, P. Geo. (an independent consultant) and Catherine Pitman, P.Geo. (AMC Mining Consultants
(Canada) Ltd.). and qualified persons David Evans, P.Geo. (Silvertip Exploration Consultants Inc.), Paul McNeill, P. Geo. (Anaconda Mining Inc.) and
Gordana Slepcev, P. Eng. (Anaconda Mining Inc.). The Pine Cove Resource statement includes Pine Cove Reserves.
4 - 0.5 g/t cut-off as per “NI 43-101 Technical Report and Mineral Resource Estimate on the Thor Deposit, Viking Project, White Bay Area, Newfoundland
and Labrador, Canada” with an effective date of August 29, 2016 and authored by independent qualified persons David A. Copeland, M.Sc., P.Geo., (an
independent consultant), Shane Ebert, Ph.D., P.Geo. (an independent consultant) and Gary Giroux, MASc, P.Eng. (Giroux Consultants Ltd.).
5 – 2.0 g/t cut-off as per the March 1, 2017 News Release by Orex Exploration Inc.
28
From the ground up
Additional Cautionary Disclaimers
TSX:ANX
Anaconda uses certain non-GAAP performance measures in this document. These performance measures have no meaning under IFRS and, therefore,
amounts presented may not be comparable to similar data presented by other mining companies. The data is intended to provide additional information and
should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Operating cash costs per ounce of gold
and all-in sustaining costs per ounce of gold (“AISC”) are non-GAAP measures that Anaconda uses as key performance measures to monitor performance and
ability to generate cash flow. Management uses these statistics to assess how well Anaconda’s producing mines are performing compared to plan and to
assess overall efficiency and effectiveness of the mining operations.
Anaconda provides operating cash cost and AISC information as it is a key performance indicator required by users of its financial information in order to
assess its profit potential and performance relative to its peers. Cash cost per ounce sold is cost of sales from the period before depletion, depreciation and
amortization of production stripping assets divided by the number of ounces of gold sold in the period.
AISC reflects all of the expenditures that are required to produce an ounce of gold from current operations. While there is no standardized meaning of the
measure across the industry, Anaconda’s definition conforms to the AISC definition as set out by the World Gold Council in its guidance dated June 27, 2013.
The World Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies. Anaconda
believes that this measure will be useful to external users in assessing operating performance and the ability to generate free cash flow from current
operations. AISC per ounce includes total cash costs plus the sum of corporate administrative expenses, sustaining capital expenditures, the addition of
production stripping assets and certain exploration and evaluation expenses, all divided by the number of ounces sold in the period. This measure seeks to
reflect the full cost to sustain the current level of gold production from Anaconda’s operations. Certain other cash expenditures, including income tax payments
and financing costs are not included. Certain prior period amounts included in the calculation of AISC have been changed to conform to the presentation
adopted in the current period.
The information presented herein related to Anaconda was approved by management of Anaconda on March 13, 2017.
The information presented herein related to Orex was approved by management of Orex on March 13, 2017.
Note: All dollar amounts are in Canadian dollars unless otherwise denoted.
The disclosure in this presentation uses mineral reserve and mineral resource classification terms that comply with reporting standards in Canada, and certain
mineral resource estimates are made in accordance with Canadian National Instrument 43-101—Standards of Disclosure for Mineral Projects (“NI 43-101”). NI
43-101 establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards
differ significantly from the mineral reserve disclosure requirements of the United States Securities Exchange Commission (the “SEC”) set forth in Industry
Guide 7. Consequently, information regarding mineralization contained in this presentation is not comparable to similar information that would generally be
disclosed by U.S. companies in accordance with the rules of the SEC.
29
From the ground up
Additional Cautionary Disclaimers
TSX:ANX
In particular, the SEC’s Industry Guide 7 applies different standards in order to classify mineralization as a reserve. As a result, the definitions of proven and
probable reserves used in NI 43-101 differ from the definitions used by the SEC in Industry Guide 7. Under SEC standards, mineralization may not be classified
as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve
determination is made. Among other things, all necessary permits would be required to be in hand or issuance imminent in order to classify mineralized
material as reserves under the SEC standards. Accordingly, mineral reserve estimates contained in this presentation may not qualify as “reserves” under SEC
standards.
In addition, this presentation uses the terms “measured mineral resources,” “indicated mineral resources” and “inferred mineral resources” to comply with the
reporting standards in Canada. The SEC does not recognize mineral resources and U.S. companies are generally not permitted to disclose mineral resources of
any category in documents they file with the SEC. Investors are specifically cautioned not to assume that any part or all of the mineral deposits in these
categories will ever be converted into mineral reserves as defined in NI 43-101 or Industry Guide 7. Further, “inferred mineral resources” have a great amount
of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, investors are also cautioned not to assume that all
or any part of an inferred resource exists. It cannot be assumed that all or any part of “measured mineral resources,” “indicated mineral resources,” or
“inferred mineral resources” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part of the reported “measured mineral
resources,” “indicated mineral resources,” or “inferred mineral resources” in this presentation is economically or legally mineable. For the above reasons,
information contained in this presentation containing descriptions of our mineral reserve and mineral resource estimates is not comparable to similar
information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC.
All scientific and technical information relating to the Stog’er Tight Deposit is based on and derived from the NI 43-101 report entitled “NI43-101 Technical
Report, Mineral Resource and Mineral Reserve Update on the Pine Cove Mine and Mineral Resource Estimate on the Stog’er Tight Deposit, Point Rousse
Project, Baie Verte, Newfoundland and Labrador, Canada” with an effective date of October 22, 2015. All scientific and technical information relating to the
Pine Cove Mine is based on and derived from the NI 43-101 report entitled “NI43-101 Technical Report, Mineral Resource and Mineral Reserve Update on the
Pine Cove Mine and Mineral Resource Estimate on the Stog’er Tight Deposit, Point Rousse Project, Baie Verte, Newfoundland and Labrador, Canada” with an
effective date of October 22, 2015. All scientific and technical information relating to the Thor Deposit/Viking Project is based on and derived from the NI 43101 report entitled “NI 43-101 Technical Report and Mineral Resource Estimate on the Thor Deposit, Viking Project, White Bay Area, Newfoundland and
Labrador, Canada” with an effective date of August 29, 2016. All of the above mentioned technical reports were prepared by “qualified persons” within the
meaning of NI 43-101. The information contained herein is subject to all of the assumptions, qualifications and procedures set out in each of the technical
reports and reference should be made to the full details of the technical reports which have been filed with the applicable regulatory authorities and is
available on Anaconda’s profile at www.sedar.com.
Paul McNeill, Anaconda’s VP of Exploration and a qualified person pursuant to NI 43-101, has reviewed and approved the scientific and technical data of
Anaconda contained in this document.
30
From the ground up
Additional Cautionary Disclaimers
TSX:ANX
The scientific and technical information relating to the Goldboro Project is based on Orex’s news release of March 1, 2017. Any additional information
regarding the current estimate will be available upon filing of a Technical Report by Orex.
Jean-Pierre Landry, P. Eng., director and consultant of Orex, is a qualified person pursuant to NI 43-101, has reviewed and approved the technical information
relating to Orex contained in this document.
This presentation does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States, nor shall there be any sale of
these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States
or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Certain information contained on this presentation with respect to other companies and their business and operation has been obtained or quoted from
publicly available sources, such as continuous disclosure documents, independent publications, media articles, third party websites (collectively, the
“Publications”). In certain cases, these sources make no representations as to the reliability of the information they publish. Further, the analyses and opinions
reflected in these Publications are subject to a series of assumptions about future events. There are a number of factors that can cause the results to differ
materially from those described in these publications. None of the Anaconda, Orex or their representatives independently verified the accuracy or completeness
of the information contained in the Publications or assume any responsibility for the completeness or accuracy of the information derived from these
Publications.
31
From the ground up