INVESTOR PRESENTATION DECEMBER 2018

Transcription

1 INVESTOR PRESENTATION DECEMBER

2 FORWARD LOOKING STATEMENTS This document contains forward looking statements, including Future Oriented Financial Information ("FOFI ) that relate to our current expectations and views of future events. Certain information contained herein and certain oral statements made are forward-looking and relate to Defense Metals Corp. ( DEFN ) business strategy, any estimate of potential earnings, the completion of any transaction with potential customers, product development including blockchain platforms, timing of product development, events, courses of action, regulatory approvals and other matters. Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as "anticipate", "objective", "may", "will", "might", "should", "could", "can", "intend", "expect", "believe", "estimate", "predict", "potential", "plan", "is designed to, "project", "continue", or similar expressions suggest future outcomes or the negative thereof or similar variations. Forward-looking statements may include, among other things, statements about: market prices, exploration and production successes or failures, continued availability of capital and financing, inability to obtain required shareholder or regulatory approvals, and general economic market or business conditions. The FOFI has been prepared by our management to provide an outlook of our activities and results and may not be appropriate for other purposes. Our management believes that the FOFI has been prepared on a reasonable basis, reflecting management s best estimates and judgments. An investor should read this document with the understanding that our actual future results may be materially different from what we expect. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which DEFN will operate in the future, including the demand for our products, anticipated costs and ability to achieve goals, the Company s ability to complete any contemplated transactions, and that there will be no regulation or law that will prevent the Company from operating its business. Although DEFN believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. adversely affect our financial condition; our ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; market conditions and the demand and pricing for our products; security threats; our relationships with our customers, distributors and business partners; our ability to successfully define, design and release new products in a timely manner that meet our customers needs; our ability to attract, retain and motivate qualified personnel; competition in our industry; our ability to maintain technological leadership; the impact of technology changes on our products and industry; our failure to develop new and innovative products; our ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect our business; our ability to manage working capital; and our dependence on key personnel. DEFN is an early stage company with a short operating history; and it may not actually achieve its plans, projections, or expectations. Important factors that could cause actual results to differ materially from DEFN s expectations include, consumer sentiment towards DEFN s products and generally, litigation, global economic climate, increase in operating costs, security threats, government regulations, loss of key employees and consultants, additional funding requirements, changes in laws, technology failures, competition, and failure of counterparties to perform their contractual obligations. Except as required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither we nor any of our representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this presentation. Neither we nor any of our representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this presentation by you or any of your representatives or for omissions from the information in this presentation. DEFN cannot warrant the information contained to be exhaustive, complete or sufficient. The Presentation is being disclosed for general discussion, review, and evaluation only. It is understood that all historical information is not NI compliant and has not been verified by a qualified person. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to, business, economic and capital market conditions; the ability to manage our operating expenses, which may 2

3 Overview Defense Metals Corp. is a Canadian, Toronto Venture Exchange-listed company (TSXV:DEFN) focused on sourcing, exploring and developing rare earth and uranium mineral properties. The company is committed to providing the world with resources necessary to provide reliable energy as well as defend and protect nations globally. Company: Founded: Head Office: URL: The company is currently engaged in exploration on two uranium properties in Northern Saskatchewan, in the Northeast Athabasca basin. DEFN has also recently acquired Spectrum Mining Corporation and its Wicheeda rare earth mineral properties in Northern British Columbia. 3

4 PROJECTS RARE EARTH ELEMENTS WICHEEDA URANIUM GEIGER AND KLAPROTH 4

5 RARE EARTH ELEMENTS Wicheeda VANCOUVER, Nov. 26, 2018 /CNW/ - First Legacy Mining Corp. ("First Legacy" or the "Company") (TSX-V: FLM) is pleased to announce that it has entered into an arm's length option agreement (the "Agreement") with Spectrum Mining Corporation ("Spectrum") dated November 22, 2018, pursuant to which First Legacy has the option (the "Option") to acquire all of the issued and outstanding shares of Spectrum (the "Acquisition"), a private British Columbia incorporated company, that is the legal, beneficial and registered holder of a one hundred percent (100%) interest in and to six (6) mining claims located in the Cariboo Mining Division, British Columbia known as the Wicheeda Rare Earth Element Project (the "Wicheeda Property"). First Legacy also announces that it intends to complete a non-brokered private placement (the "Private Placement") of up to 1,200,000 flow-through common shares ("Flow-Through Shares") of the Company at a price of $0.25 per Flow-Through Share to raise gross proceeds of up to $300,000. The Private Placement is subject to TSX Venture Exchange ("TSXV") approval. READ FULL RELEASE HERE Key Highlights The company will incur expenditures in respect to the property totalling $1,930,000 Spectrum Mining will receive and aggregate of $370,00 over three years, plus 200,000 common shares and $50,000 worth of common shares in one year The Wicheeda Property located approximately 80 km northwest of the city of Prince George, British Columbia 6 mining claims located in the Cariboo Mining Division, British Columbia known as the Wicheeda Rare Earth Element Project The company plans to change its name to Defense Metals Corp. 5

6 WHAT ARE RARE EARTH ELEMENTS? Light Rare Earth Elements CE - Cerium LA - Lanthanum ND - Neodymium SM - Samarium NB - Niobium 6

7 RARE EARTH USES Uses of rare-earth elements are applicable to the production of high-performance Guidance and Control Systems, Electronic Jamming Devices (known as ECM pods), next generation electric motors, high-powered laser targeting, Line of sight laser communications, and in next generation fighter jet engine manufacturing CE - Cerium Cerium-based compounds are used as polishing media for many types of optical lenses encountered in the battlefield. ND - Neodymium High-powered Neodymium rare earth magnet actuators control various air surfaces during military operation SM - Samarium Used to dope calcium chloride crystals for use in optical lasers, Infrared absorbing glass and as a neutron absorber in nuclear reactors. NB - Niobium Improves the strength of alloys, particularly at low temperatures. Alloys containing niobium are used in jet engines and rockets LA - Lanthanum Used in camera and telescope, night vision lenses. Also, to gain efficiency in converting crude oil into refined gasoline. 7

8 URANIUM Geiger and Klaproth The Geiger project consists of two claims, Geiger North and Geiger South, totalling 2,310 acres, and is adjacent to the Wollaston-Mudjatik transition zone a major crustal suture related to most of the major uranium deposits in the eastern Athabasca Basin. The Project is approximately 35km northwest of the McClean Lake mine and mill, in a relatively under-explored area of the Athabasca Basin. The Klaproth properties consist of two mineral claims totalling approximately hectares The DEFN properties in the Athabasca Basin are surrounded by multiple major mining companies, giving the company a strategic foothold in a proven uranium deposit. 8

9 ATHABASCA BASIN THE ISO ENERGY HURRICANE ZONE 9

10 URANIUM MARKET Spot price now up $9/lb or 43% from April 2018 low of $20.25 to $29.10 Over the past 3 years equities have been strongly correlated with the spot price Major divergence has emerged Equity correction to the upside is inevitable Additional gains to come from end of year contracting which will put further upward pressure on uranium price 10

11 MANAGEMENT AND DIRECTORS MAXIMILIAN SALI CEO & Director CRAIG TAYLOR Director Mr. Sali has been in the capital markets for 10 years managing private family assets. He is the president of Baccarat Investments Inc., a private company providing consulting and management services to public companies along with investing. He is the founder and CEO of Defense Metals Corp. Since 1994 Mr. Taylor has been President and CEO of Vanville Projects Ltd., a private company which provides products and services to resorts, hotels and restaurants worldwide. From March 2008 until December 2016, Mr. Taylor was a director of Saber Capital Corp., a former capital pool company, which completed its qualifying transaction and was renamed Emblem Corp. In addition, he was a director of Advantage Lithium Corp., a TSX-V listed junior exploration company, from March 2007 until August 2016.From April 2012 until April 2016, he was a director of Clear Mountain Resources Corp., a TSX-V listed junior resource exploration company (now named Patriot One Technologies Inc.). Mr. Taylor has also served as director and officer of several other public companies engaged in mineral exploration and development. RICHARD GRAYSTONE CFO Mr. Grayston has spent thirty-five years in public company management and as a finance and economics consultant. He sits on the board of several different public companies. Mr. Grayston received a Ph.D. in finance and economics from the University of Chicago in 1971, an M.B.A. from the University of Chicago in 1969 and a B. Comm. from the University of British Columbia in 1966 and became a Certified General Accountant in CHRIS GRAF Advisor Mr. Graf was born in Cranbrook, B.C. and graduated from Mount Baker high school in Cranbrook in He obtained a B.Ap.Sc. degree in geological engineering from UBC in Vancouver, B.C. in 1974 and has been registered as a Professional Engineer with the Association of Professional Engineers of British Columbia since He has successfully applied his profession for the past 40 years, conceiving and conducting mineral exploration programs in British Columbia, Alberta and Yukon as well as northern Mexico. His forte has been mineral property evaluation, field exploration and diamond drilling. In 2011, Mr. Graf was the recipient of the Chamber s Frank Woodside Past Presidents Award for distinguished service to the Minerals Industry. PETER DICKIE Director Mr. Dickie has over 35 years of experience in the public and private corporate environment, over 25 years spent in management positions. He is the former President, CEO and Director of NioCorp Developments, a company developing the largest super-alloy mineral deposit in North America (Niobium, Titanium and Scandium). Over the course of 6 years at NioCorp he developed a solid relationships with property owners and all levels of government in the project area, attracted key internationally recognized senior members of the executive team, raised tens of millions of dollars and graduated the company to the TSX, growing the market cap from under $5 million to more than $200 million. Mr. Dickie is also a former Director and Officer of Lateegra Gold, responsible for accumulating the land position that resulted in Lateegra being acquired by Excellon Resources in 2011, as well as several other listed companies. He is a former Investment Advisor with a Canadian Securities dealer, and a graduate of both the University of Victoria, and the University of British Columbia. 11

12 KEY INVESTMENT HIGHLIGHTS 1. Well financed, strong shareholder base, tight share structure % ownership of Property Portfolio. (Right place at the right time) 3. Extensive local infrastructure (Roads, Water, Power, and Labour.) 4. Diversified Approach (Uranium and Rare Earth) 5. Strong Executive team and Board implementing focused strategy. 6. Proven Asset Base, large resource growth potential. 12

13 CURRENT PRIVATE PLACEMENT ISSUE: Up to $300,000 consisting of up to 1,200,000 Flow Through Common Shares ( Shares ) at a price of $0.25 per Share (the Offering ). OFFERING: The Offering is being conducted on a non-brokered a private placement basis in the Selling Jurisdictions (as defined below) (the Non-Brokered Offering ). FEES: The broker(s) (the Broker ) under the Offering will receive from the Corporation on Closing (i) a cash commission 7% of the gross proceeds raised under the Offering. The Corporation retains the right to pay a finder's fee to eligible finders of (i) a cash finder s fee of up to seven percent (7%) of the gross proceeds subscribed for under the Non-Brokered Offering through the eligible finder. CLOSING: On or before December 28, 2018 or such other date as mutually agreed to by the purchasers and the Corporation. USE OF PROCEEDS: Engage SGS to run bulk sample through their pilot plant 13

14 CAPITAL STRUCTURE (POST CURRENT FINANCING) Shares Outstanding (as of December 1st, 2018) $0.30 (expr. September 27th, 2020) Options 20,073,333 3,823,333 $0.25 (expr. January 19th, 2020) $0.15 (expr. February 12th, 2020) $0.20 (expr. September 28th, 2023) 750,000 December 2018 Private $0.25(current) 1,200,000 FULLY DILUTED AND OUTSTANDING (POST FINANCING) 29,904,666 14

15 DEFN:TSX DEFENSE METALS CORP. EXCHANGE LISTING CONTACT W Pender St. Vancouver BC, Canada V6E2M6 Toll Free: Investor Relations: +1 (778) TSX-V: DEFN CUSIP: Registrar & Transfer Agent: Computershare Trust Company Todd Hanas VP Investor Relations Mobile (778) Toll Free todd@blueskycorp.ca