Tirua Au - Cu Project Solomon Islands March 2019 sanatanaresources.com
Cautionary Statements & Technical Disclosure This presentation is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. This document includes forward looking statements. Forward looking statements inherently involve subjective judgement and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside of the control of, and may be unknown to, the company. Actual results and developments may vary materially from those expressed in these materials. The types of uncertainties which are relevant to the company may include, but are not limited to, commodity prices, political uncertainty, changes to the regulatory framework which applies to the business of the company and general economic conditions. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, the company does not in providing this information undertake any obligation to publicly update or revise any of the forward looking statements or any change in events, conditions or circumstances on which any such statement is based. Buddy Doyle, BAppSc (Geol.), MAusIMM, VP Exploration of Sanatana Resources Inc., a Qualified Person, as such term is defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects ( NI 43-101 ), has reviewed and approved the scientific and technical disclosure contained herein. 2
Tirua Au-Cu Project Opportunity 282km 2 Prospecting License granted over a 16km wide mineralized collapsed caldera setting in a world class and prolific copper-gold mining region. Solomon Islands are part of the Pacific Ring of Fire north of Australia and to the east of Papua New Guinea. Experienced management team with successful discovery record in the region: Buddy Doyle, co-discoverer of the 49Moz Au Lihir Gold Deposit, located to the west of Tirua along the same mineralized belt. Ian Smith, Mine Superintendent and Chief Mining Engineer 25Moz Au, 6Mt Cu Bougainville Copper mine (Panguna, PNG) located directly west on the adjacent island of Bouganville. Peter Miles, financed Roughrider Uranium, vended to Hathor, ultimately sold to Rio Tinto $600M. Limited exploration in the eastern region by Newmont and Anglo-Ashanti, focused on a copper porphyry discovery with a drill hole intercept of 62 m @ 0.45% Cu. Sanatana s initial exploration focus will be on the untested epithermal gold potential lying adjacent to the porphyry where soil samples have assayed up to 159 g/t Au and have also identified epithermal alteration pathfinder elements As, Hg, Sb and Te. Extensive logging has opened up significant new areas for exploration. Very limited sampling in the western half of the caldera have returned rock-chip results of up to 9.77 g/t Au. 3
PNG - Solomon Gold Trend This prolific belt contains combined resources of >158Moz Au, 26Mt Cu 4
Tirua Au-Cu Project Location Other Active Companies Solgold PLC (Au) Solomon Islands Gold Pty Ltd (Au) Axiom Mining Limited (Ni, Al, Au) Sunshine Minerals Ltd (Ni, Al) 5
Exploring Solomon Islands Stable Jurisdiction Established Mines and Minerals Act 1990 (Amended 2014) Prospecting Licenses (PL) are issued after settlement of landowner surface access agreements, for an initial 3 year term, transferrable and renewable with Ministerial approval. Mining Leases are converted from a PL for a 25 year period, also renewable with Ministerial approval. 3% Royalty on the gross value of minerals mined, shared between National and Provincial government and local landowners. Corporate Tax Rate of 35% Non Resident Co., 20% Resident Co. Favourable Logistics International airports and shipping. Local logistical support via air and sea. Widespread reliable wireless telecommunications network. Well established local commercial businesses and skilled labour workforce. 6
Tirua Favorable Geology 7
Tirua Previous Results Summary Reconnaissance rock chip samples of up to 9.77g/t Au. Yet to be followed up with any additional exploration. Previous drilling 6 holes by Newmont and 12 holes by Anglogold Ashanti all focused on central intrusivecomplex for porphyrycu. Best intersections of: HD2 62m @0.45% Cu TRDD003 14m @ 1.45g/t Au Soil sampling over parts of Kolo East delineated an area of anomalous pathfinder elements including As, Hg, Sb and Te indicating high level epithermal alteration, with values of up to 158g/t Au, 330g/t Ag and 0.29% Cu with no drill testing. Trenching across mineralized outcrops and significant soil results return intervals of up to 11m @1.24g/t Au that remain open and untested with drilling. Rock float samples of up to 37.7g/t Au. 8
Tirua Priority Targets Other areas of similar magnetic texture are next stage priority targets. Possible buried intrusion target. Epithermal footprint interpreted from magnetics corresponds with mapped alteration zone and soil As, Hg, Sb and Te. 9
Moving Forward with Tirua Project Socio-Political de-risking: Surface Access Agreement completed and Prospecting License issued. Fully permitted and ready to begin exploration. Geological de-risking: Improve airborne magnetic survey data to 50 m line spacing over key locations of the Kolo Caldera using a drone based system. Expand geochemical sampling and alteration mapping coverage over the entire Kolo Caldera area through excavator trenching along the expanded forestry road network. Initial drilling to 3D vector towards the centre of mineralization within the East Kolo Epithermal Field. 10
Current Share Structure OWNERSHIP Share Price $0.055 as at March 3, 2019 Public 40% 20% Management & Directors 15% Institutions Market Cap $8.37 million 25% Shares Outstanding 152,229,834 Warrants 10,870,000 Exercisable at $0.10 per share until March 21, 2019 3,720,000 Exercisable at $0.10 per share until March 29, 2019 Options 6,800,000 Exercisable at $0.06 per share until September 28, 2022 Fully Diluted 173,619,834 As at February 6, 2019 High Net Worth Individuals 11
Veteran Leadership and Professional Advisors Peter Miles President & CEO, Director Formerly a Vice President at Midland Doherty Inc, Dean Witter Reynolds and CIBC World Markets, Mr. Miles has raised in excess of $100M for a variety of resource companies, including Roughrider Uranium. Mr. Miles was instrumental in structuring Roughrider s acquisition by Hathor Exploration Ltd., which was subsequently acquired by Rio Tinto for in excess of $600M in 2012. Mr. Miles continues to sit on the board of Gamehost Inc., a significant Canadian gaming and hotel company based in Red Deer, Alberta. Buddy Doyle Vice President Exploration, Director Formerly the Vice President Exploration for North American Diamonds at Rio Tinto, Mr. Doyle has more than twenty-five years experience in mineral exploration, including work as Senior Project Geologist at the 30+ million ounce Lihir gold mine discovery in Papua New Guinea and co-discoverer of the Diavik Mine, Canada. Mr. Doyle is a Member AusIMM and a Qualified Person as defined by National Instrument 43-101. Ian Smith Independent Director A mining engineering graduate of the University of Queensland, Australia, Mr. Smith has 50 years experience in corporate, operations and project management and consulting within the international base and precious metals industries. Most importantly for Sanatana, Mr. Smith was Mine Superintendent at the 90,000 tpd Bougainville Copper mine in Papua New Guinea. As president and CEO of bcmetals Corp., he engineered the 30,000tpd Red Chris copper/gold porphyry project for development in northwest BC prior to it being acquired by Imperial Metals Corp. Mr. Smith was president and founding partner of the consulting company Mineral Resources Development Inc. until it was purchased in 1995. Tim Barry Independent Director Mr. Barry is the President and CEO of Silver Bull Resources, Inc., having served as Vice President of Exploration for Metalline Mining (renamed to Silver Bull Resources). Previously, Mr. Barry held the position of Chief Geologist for Dome Ventures Corporation, working on projects in Africa. Mr. Barry has over 15 years of exploration and management experience and has worked as a Consulting Geologist and manager on projects in Canada, Mexico, Australia, New Zealand, Mongolia and West and Central Africa. Mr. Barry is a Chartered Professional Geologist (CPAusIMM) and holds a BSc in Geology from the University of Otago in New Zealand Darcy Will Independent Director Mr. Will is a commercial real estate developer and president, director and co-founder of the publicly traded company Gamehost Inc. Simon Anderson Chief Financial Officer Mr. Anderson is a Chartered Professional Accountant with a broad range of public and private experience in both the US and Canada. Formerly Partner at an international accounting and consulting firm. Troy Gill Exploration Manager Mr. Gill s fifteen years of mining and mineral exploration experience with Rio Tinto provided him with exposure to a wide range of commodities including gold, copper, nickel, diamonds, coal and iron ore in a variety of geological settings. As a Member of the Australian Institute of Geoscientists, Mr. Gill meets the requirements of a Qualified Person as defined by National Instrument 43-101. McMillan LLP Legal Counsel A leading Canadian business law firm with offices in Toronto, Vancouver, Calgary, Ottawa, Montréal, and Hong Kong. 12
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