Stardust Project A high grade polymetallic district in central British Columbia May 2018
Forward Looking Statements This presentation contains forward-looking information within the meaning of Canadian securities legislation and forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, forward-looking statements ). All statements, other than statements of historical fact, that address activities, events or developments that Sun Metals Corp. ( Sun Metals ) believes, expects or anticipates will or may occur in the future including, without limitation: statements relating to the proposed acquisition of the Stardust Project (the Acquisition ); funding availability and the expected source of funding for 2018 activities; resource estimates; future exploration and operating plans, including the anticipated advancement of the Stardust Project; the release of Sun Metals common shares from escrow; the annual cash payments, issuances of shares and minimum annual property expenditures of Sun Metals required in connection with the Acquisition; and the top-up shares of Sun Metals to be received by Lorraine Copper Corp. and the NSR to be retained by Lorraine Copper Corp. on the Stardust Project are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of Sun Metals based on information currently available to Sun Metals and often use words such as expects, plans, anticipates, estimates, intends, may or variations thereof or the negative of any of these terms. All forward-looking assumptions are made based on the current beliefs of the management of Sun Metals as well as various assumptions made by them and information currently available to them. Generally, these assumptions include, among others: the presence of and continuity of metals at the Stardust Project at estimated grades; the availability of personnel, machinery and equipment at estimated prices and within estimated delivery times; currency exchange rates; metals sales prices and exchange rates assumed; tax rates and royalty rates applicable to the proposed mining operation; the availability of acceptable financing; anticipated mining losses and dilution and success in realizing proposed operations. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Sun Metals to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Sun Metals. Factors that could cause actual results or events to differ materially from current expectations include, among other things: risks and uncertainties relating to the Acquisition, such as Sun Metals ability to complete the Acquisition; risks related to regulatory approvals related to the Acquisition; risks and uncertainties related to ability to obtain or maintain necessary licenses, permits, or surface rights; risks associated with technical difficulties in connection with exploration activities; risks and uncertainties related to the accuracy of mineral resource estimates and exploration results, future cash flow, total costs of exploration; the possibility that future exploration, development or mining results will not be consistent with Sun Metals expectations; risks relating to variations in the mineral content within the mineral identified as mineral resources from that predicted; risks related to completion of a public event. Any forward-looking statement speaks only as of the date on which it was made, and except as may be required by applicable securities laws, Sun Metals disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Sun Metals believes that the assumptions inherent in the forwardlooking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty. All mineral resource information has been estimated and disclosed in accordance with the definition standards on mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian Securities Administrators National Instrument 43-101 ( NI 43-101 ) - Standards of Disclosure for Mineral Projects, which requires disclosure of mineral resource information. U.S. reporting requirements for disclosure of mineral properties are governed by the United States Securities and Exchange Commission Industry Guide 7, which sets forth substantially different guidelines than NI 43-101. 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. 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. Compliance with NI 43-101 Certain information in this presentation is derived from the results of a mineral resource estimate of the Stardust Project prepared by GeoSim Services Inc in accordance with NI 43-101. A copy of the technical report for the Stardust Project entitled Stardust Project - Ni 43-101 Technical Report - Omineca Mining Division, British Columbia with an effective date of January 8, 2018 is available on the Sun Metals website at http://www.sunmetals.ca or on Sun Metals SEDAR profile at www.sedar.com. The scientific and technical information in this presentation has been reviewed and approved by Ian Neill, P.Geo., a qualified person as defined in NI 43-101. Sun Metals has not independently verified any of the data from third party sources referred to in this presentation or ascertained the underlying assumptions relied upon by such sources. Sun Metals does not assume any responsibility for the accuracy or completeness of this information or for any failure by any such other persons to disclose events which may have occurred or may affect the significance or accuracy of any such information but which are unknown to Sun Metals. The information contained in this presentation does not purport to be all-inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and review of Sun Metals and of the information contained in this presentation. Sun Metals has not authorized anyone to provide investors with additional or different information, and any such information should not be relied upon. 2
Oxygen Group 3
The Oxygen Advantage Oxygen has a strategically assembled group of proven technical and management professionals with a track record of success in discovery and development, mine operations, capital markets, and business development the full life cycle. Projects discovered/re-discovered: 14 advanced and/or developed Capital raised: $746 million Value realized in sales: $2.9 billion Nearly 500,000 metres of drilling Responsible for 2 of 7 heap leach mines brought to production since 2013 Oxygen team members contributed to 6 gold mines active in the world today 4
Opportunity Stardust Property A significant polymetallic district covering 96 km 2 in central BC Option to acquire 100% of the project from Lorraine Copper - signed August 2017 Rich exploration history dating back to 1944 Activity to date: ~$25 million invested 1 : 390 holes drilled (80,000 m) 5800 soil samples 425 line kilometers of mag and 390 line kilometers of VLF 2,200 metre corridor of mineralization including four mineralization styles Canyon Creek Cu-Au skarn zone is open for expansion and contains a resource: 2 Category Tonnes Copper (%) Gold (g/t) Silver (g/t) Cu (Eq.) (%) Indicated 985,000 1.34 1.59 36.8 2.92 Inferred 1,985,000 1.24 1.72 30.5 2.65 1 Estimated and approximate value in 2018 dollars: ((80,000 m X $250 per m) + $5,000,000 in other surveys and work) 2 NI 43-101 compliant resource estimate, completed by Qualified Person Ron Simpson, P.Geo. of GeoSim Services Inc., January 2018. For further detail, see press release dated January 8, 2018 and the Stardust Project NI 43-101 Technical Report both available at www.sunmetals.ca 5
Go-Public Complete Sun Metals shares started trading on the TSX.V on May 8, 2018 under the Symbol SUNM Stardust Project in BC is the sole asset in Sun Metals Sun Metals recently completed a non-brokered private placement: $6.45 million raised, ~ 30% oversubscribed due to strong demand 25,788,400 common shares @ $0.25 with a full warrant @ $0.35 Sun Metals management can now focus on executing 2018 exploration at Stardust and other corporate activities 6
Share Structure Common Shares Free trading as of July 6, 2018 25,788,400 Escrow shares, released over 36 months 31,745,001 Additional Pooling Restrictions 13,035,000 Float 7,000,000 Total 77,568,401 Options and Warrants Options @ $0.25 (proceeds $1.16 million) 4,650,000 Callable Warrants: $0.35 for 5 years (proceeds $9.0 million) 25,788,400 Finders Warrants: $0.30 for 12 months (proceeds $0.3 million) 1,173,000 Fully Diluted Total* 109,179,801 *Shares held by Insiders and Founders: 23,440,001 7
The Team Multi-disciplinary team of professionals with technical and management expertise from early exploration to mine operations Board of Directors, Executive & Founders Donald McInnes Chairman Mark O Dea, Ph.D., P.Geo. Board Sean Tetzlaff, CPA, CA Board Glen Garratt, P.Geo. Board Steve Robertson, P.Geo. President & CEO Ian Neill, P.Geo. - VP Exploration Special Advisor Rick Bailes, M.Sc., P.Geo. Technical Advisors Peter Megaw, Ph.D., P.Geo. Jim Oliver, Ph.D., P.Geo. Gerry Ray, Ph.D., P.Eng., P.Geo. Bill Morton, M.Sc., P.Geo. Overview Proven team with significant base metal exploration + mining and capital markets experience including: Vast direct experience in British Columbian natural resources development Oxygen team discovered, advanced and or built two of the last seven heap leach gold mines put into production globally Oxygen team delineated 13 M oz gold, 134 M lbs uranium, 2.1b lbs copper and 33 M oz silver in the past 10 years Oxygen Capital sponsored five companies since 2012, successful exit on two for gross peak value of >$500 million Over the past 9 months the Oxygen Group of Companies has raised $73 Million in 6 financings for 4 Companies. 8
Stardust Property Located adjacent to the Kwanika Creek deposit on the Pinchi Fault, approximately 250 km northwest of Prince George, B.C. 9
Conceptual Exploration Model after Peter Megaw 10
Exploration Zones Large, coherent, integrated porphyry skarn manto - epithermal system. Mineralization trends northwest continuously for 2,200 meters. All zones open for expansion. Regional geophysical and geochemical data indicate system extends well beyond the identified mineralized zones. 11
Assay Highlights from Previous Drilling 1 Skarn Manto Vein Valley Limestone 1 Quoted drill intercepts are from historic drilling completed by Alpha Gold who owned the project at the time. There was no QA/QC program implemented on work prior to 2006. The quoted intervals have drill logs and assay certificates for verification. 12
Regional Magnetics Large, obvious intrusive complex only partially tested by drilling Exceptional potential for additional porphyry skarn manto-epithermal mineralization 13
Soil Geochemistry (copper) Vast areas of anomalous soil geochemistry Majority is currently untested by drilling Additional soil surveys undertaken in 2017 providing additional targets 14
Proposed 2018 Exploration Program Geophysics Airborne EM Survey in May Geologic Mapping and Prospecting Relog Historic Core Resampling 15,000 m Diamond Drilling Data Compilation / Reporting Estimated Cost : $5,000,000 15
Why Invest in B.C.? Reliable jurisdiction, excellent exposure to capital markets, deep pool of exploration professionals, a wealth of supporting services, exceptional infrastructure with direct access to Pacific Rim markets leads to these recent investments: Nov. 7, 2017 - Centerra Gold Inc. acquires all of the issued and outstanding common shares of AuRico Metals, for C$310 million. Oct. 26, 2017 - Daewoo Minerals Canada invests $7M into the Kwanika copper gold project located in the Quesnel Trough of B.C. Sept.11, 2017 - Coeur Mining, Inc. acquires JDS Silver Inc. owner of the high-grade silver-zinc-lead Silvertip mine located in northern B.C., for US$200 million. 16
Summary Well positioned to create shareholder value via discovery and delineation of the mineralized zones on its extensive land package: High quality exploration project in prolific Central B.C. Project heavily de-risked $25M invested to date Exceptional potential for resource expansion and additional discoveries Sun Metals initiated trading on the TSXV on May 8, 2018 as SUNM $6.4 million financing will fund 2018 activities Efficiently advance Stardust project through aggressive, systematic exploration Seeking further exploration and development opportunities 17
The Team Founders and Board Donald McInnes, Chairman Since 1993, Mr. McInnes has been the founder, president and a director of a number of publicly traded mineral exploration companies. Mr. McInnes was a Director of Fronteer Gold (2001 to 2011), founder of Kutcho Copper Corp. (formerly Western Keltic Mines Inc.), True Gold Mining and True North Nickel. He was the founder and Vice Chair and CEO of Plutonic Power Corporation, that invested $ 1 Billion in creating BC s largest independent clean power company. He is currently Vice Chairman of Alterra Power Corp. Mr. McInnes is a past Chair of the Independent Power Producers Association of British Columbia, a past Governor of the Business Council of British Columbia, past President and Director of the Association for Mineral Exploration British Columbia, and past Director of the Prospectors and Developers Association of Canada. He is a recipient of AME BC s Gold Pan Award, a lifetime Achievement Award from CEBC, an EY Entrepreneur of the Year Award and holds a Honourary Doctor of Technology Degree from BCIT. Mark O Dea Ph.D., P.Geo. Mark O Dea is mining industry entrepreneur. A seasoned geologist and deal maker, Dr. O Dea has built and financed international mining companies from Canada to Africa, taking them from exploration and discovery to development and operations. His companies are built on a common foundation: high-quality, long-life mines with lasting economic opportunities, community benefits and environmental protection. Most recently, Dr. O Dea co-founded and served as executive chairman of True Gold Mining. After building the Karma Heap Leach Gold Mine in Burkina Faso, West Africa, True Gold was sold to Endeavour Mining in 2016. As co-founder and CEO of Fronteer Gold, Dr. O Dea grew the company from startup to its 2011 sale to Newmont Mining Corp., a deal that included the spin-out of Liberty Gold. He also co-founded and served as Chairman of True North Nickel and CEO of Aurora Energy, sold to Royal Nickel Corp. and Paladin Energy in 2014 and 2011, respectively. Founder of Oxygen Capital Corp., Dr. O Dea is currently chairman of Liberty Gold, director of Pure Gold Mining and Discovery Metals. His many honours include EY s Entrepreneur of the YearTM for 2014 in the Pacific mining and metals category, the Globe and Mail s Top 40 Under 40, and the Association for Mineral Exploration British Columbia s Murray Pezim Award for perseverance and success in financing mineral exploration. Sean Tetzlaff CPA, CA Sean Tetzlaff is an experienced financial professional with over 20 years of experience in the mining industry. Recently he served as Chief Financial Officer and Corporate Secretary of Blue Gold Mining, which merged with Riverstone Resources in 2012 to become True Gold Mining. He also served as CFO, VP Finance and Corporate Secretary of Fronteer Gold from 2005 to 2011. During this time, he had oversight of financial, legal, and contractual matters for all of Fronteer Gold operations and international subsidiaries. He was responsible for the successful execution of numerous equity investments, asset divestitures, and merger and acquisitions transactions including the sale of Fronteer to Newmont for $2.3 billion in 2011. Mr. Tetzlaff also served as CFO of Aurora Energy Resources from 2006 to 2008, helping the company grow from initial public offering through to the advancement of one of the world's largest undeveloped uranium deposits. Mr. Tetzlaff has a tax background, having worked with KPMG LLP from 2000 to 2004 Glen Garratt P.Geo. Mr. Garratt completed a B.Sc. in Geology from the University of British Columbia in 1972 and has pursued a career in mineral exploration since that time. After working for a number of major and junior mining companies he founded a consulting/contracting company in 1979 and continues to service the mineral exploration community as President of Mincord Exploration Consultants Ltd. In 1986 Mr. Garratt co-founded Eastfield Resources Ltd., a TSX-Venture Exchange listed company, which focused on mineral exploration in western North America. Subsequently Mr. Garratt has been active in developing several other junior exploration companies and is currently an officer and director of Eastfield as well as Cariboo Rose Resources Ltd. Woodjam Copper Corp. and Lorraine Copper Corp.which also trade on the TSX-V. 18
The Team Special Advisor to the Board Rick Bailes M.Sc., P.Geo. Mr. Bailes served as the President and Chief Executive Officer of Canadian Gold Hunter Corp., (International Curator Resources Ltd.) from September 2002 to April 17, 2009 and also served as its Vice President. Mr. Bailes had been an Independent Director at True Gold Mining Inc. from 1996 until its acquisition by Endeavour Mining in 2016. He served as a Director of Canadian Gold Hunter Corp. from 2002 to 2009, as a Director at Fortress Minerals Corp. from 2005 to 2011, as Director of Champion Resources Inc. (subsequently Red Back Mining Inc.), as a Director of Riverstone Resources Ltd. and as a Director of Newstrike Capital Inc. until December, 2008. Executive Steve Robertson (President & CEO) P.Geo. Steve Robertson joined Sun Metals from Imperial Metals, a mid-tier mining company that has been involved in the development and/or operations of five mines, primarily in British Columbia. In 2013 Steve was appointed as Vice President, Corporate Affairs with responsibilities including government relations, community relations, aboriginal affairs and corporate communications. As a member of the executive team, he was actively engaged in the planning and execution of strategies to meet Imperial s corporate objectives. Prior to his VP appointment he was Manager of Exploration at Imperial including responsibility for Red Chris exploration, feasibility, permitting and development, and also exploration at Mount Polley. He designed and executed many exploration programs including the highly successful deep drilling at Red Chris. Always actively engaged within the mining community, he currently serves as director for AME BC and previously sat on the Geoscience BC Technical Advisory Committee. As well, he was a founding director of the BC Aboriginal Mine Training Association. Mr. Robertson was awarded the 2016 E.A. Scholz Award for Excellence in Mine Development for his leadership role in development of the Red Chris mine. Ian Neill (VP Exploration) P.Geo. Ian Neill is a registered professional geologist with over 25 years experience in leadership and discovery, working throughout the Americas exploring for base metals, gold and diamonds. Ian has extensive experience working in northern and remote conditions with both major and junior mining companies. As project manager of the Wolfden Resources High Lake project in Nunavut, he led the team which was awarded the 2003 PDAC Prospector of the Year award for the discovery of the West Zone VMS deposit (18mT). Mr. Neill also managed the MMG discovery of the High Lake East VMS deposit (5mT) in Nunavut in 2012 and was part of the Kennecott Canada discovery team at the Diavik Diamond project. Ian obtained a B.Sc. (hons.) degree in Geology from the University of British Columbia in 1992. Mr Neill s most recent experience was as Canadian Exploration manager for the Australian based mid-tier miner MMG, which included time seconded to the Global Zinc team evaluating CRD deposits in Peru. Lauren McDougall (CFO and Corporate Secretary) CPA, CMA Ms. McDougall is a Chartered Professional Accountant with 8 years of experience in corporate financial accounting. Ms. McDougall is currently the Controller of Pure Gold Mining Inc., and previously was the Manager of Accounting of Primero Mining Corp. Ms. McDougall obtained a Bachelor of Commerce degree from Carleton University in 2009. 19
The Team Technical Advisors Peter Megaw Ph.D., P.Geo. Dr. Megaw, C.P.G. is President of INDEX/Cascabel and co-founder of MAG Silver Corporation. He has a Ph.D. in Economic Geology from the University of Arizona and more than 35 years of relevant experience focused on silver and gold exploration. He is a certified Professional Geologist by the American Institute of Professional Geologists and an Arizona Registered geologist. Dr. Megaw has been instrumental in a number of mineral discoveries in Mexico including new ore bodies at existing mines, Excellon Resources Platosa Mine, and MAG Silver s Juanicipio-Fresnillo, Zacatecas; and Cinco de Mayo-Pozo Seco, Chihuahua. He was instrumental in assembling the Mexican property portfolio now held by Revolution Resources Corp. and arranged the acquisition of X-Strata s Latin American holdings by Linear Gold. Dr. Megaw has served on the Board of MAG Silver since 2005, Candente Gold since 2009 and Minaurum Gold since 2010. Dr. Megaw was awarded the Society of Mining Engineers 2012 Robert M. Dreyer Award for excellence in Applied Economic Geology and the Carnegie Mineralogical Medal for 2009. He is the author of numerous scientific publications on ore deposits and is a frequent speaker at academic and international exploration conferences. Bill Morton M.Sc., P.Geo. Mr. Morton, serves as the President and Chief Executive Officer of Lorraine Copper Corp., Consolidated Woodjam Copper Corp., Eastfield Resources Ltd., and Cariboo Rose Resources Ltd. He has been Vice President and Partner of the Mincord Exploration Consultants Ltd. since 1987. He has been Technical Advisor of Fort St. James Nickel Corp. since February 2015. He has been involved in the senior management of public resource companies for almost 20 years and is or has been a Director or Technical Advisor to more than a dozen public resource companies in that time. He has been a Professional Geologist since 1972 and is a Member of the BC Association of Professional Engineers and is a Member in good standing with the Association of Professional Engineers and Geoscientists of British Columbia. Mr. Morton holds a Bachelor of Science Degree in Geology from Carleton University and a Masters of Science Degree from the University of British Columbia. Jim Oliver Ph.D., P.Geo. Dr. Oliver has more than 25 years exploration experience specializing in global mineral deposit evaluations and early to advanced stage project valuations, with particular emphasis on belt, regional and detailed geological mapping programs, lithologic, structural and alteration mapping, Archean and Epithermal gold, porphyry copper, molybdenum gold, SedEx and REE mineral systems. He has successful track record. He served as Vice President of Geology for the Hunter Dickinson (HDI) Group of Companies, where he was instrumental in the successful acquisition of several mineral projects and deposits and provided leading edge geoscience input on a diverse range of deposit types. He has worked on five continents, in 25 countries and examined or worked on approximately 400 mineral occurrences or deposits. He served as a Geological Consultant to major mining companies, to junior companies and to government geological surveys. He is a committed and energetic explorationist. Gerry Ray Ph.D., P.Eng., P.Geo. Dr. Ray completed his undergrad and graduate studies in England before heading to Africa, Asia and Australia. Eventually he came to Canada and settled in British Columbia where he worked with career with the BCGS and mapped several mining camps and carried out thematic studies on a number of deposit types. His initial work focused on gold veins in the Coquihalla Gold Belt and Harrison Lake areas. He subsequently went on to study skarns, massive sulphides and iron oxide copper-gold deposits. Based on this work, Gerry has become a regular contributor to Economic Geology. His true passion is skarn deposits and his work on the famous Hedley gold skarn developed into a study of all types of skarns throughout the province. He now works around the globe as a consultant to mining companies. 20
The Deal Sun Metals is a public company established, and initially capitalized by Oxygen Capital partners for the purposes of optioning and advancing the Stardust project To earn its interest in Stardust, Sun Metals will make annual cash payments totaling $375,000, share issuances of 2,500,000 and minimum annual property expenditures until a total of $6M has been spent on Stardust before December 31, 2021 At Earn-in, Lorraine Copper will receive top-up shares for a total 30% interest in Sun Metals and retain a 2% NSR on precious metals and a 1% NSR on base metals which may be bought down by one-half each with the payment of $1.5M per royalty to Lorraine Copper 21
Canadian Securities Law Considerations This information summary (the Summary ) provides a general description of Sun Metals Corp. ( Sun Metals or the Company ) a publicly listed company incorporated under the laws of the province of British Columbia. This Summary is not intended to make any offer or solicit any offer from potential investors and prospective investors should not make any investment decisions based upon the information contained in this Summary. Prospective investors should be aware that there are certain risks associated with a purchase of securities of the Company that are not set forth in this Summary. Prospective investors are strongly urged to consult with their own financial, legal and tax advisors, before investing in the Company. This Summary is based on information provided by management of Sun Metals as of the date hereof and is based on beliefs, assumptions, expectations and/or opinions of management as of the date hereof. Certain information contained in the Summary has been obtained by management from third parties. The Summary may contain forward-looking statements. Although management of the Company believes that the expectations and views reflected in any such statements are reasonable, such statements are based on current expectations, assumptions and estimates and are inherently subject to significant uncertainties, risks and contingencies, many of which are beyond control. Management of the Company expressly disclaims any obligation or undertaking to provide any updates or revisions to any information contained herein to reflect any change in beliefs, opinions, expectations, assumptions or estimates with respect thereto or any change in events, conditions or circumstances on which any statement in this Summary is based. Each reader of this Summary agrees that the information contained herein is not to be used for any purpose other than informational purposes; that such information is preliminary and does not constitute an offer or a solicitation of an offer for the purchase of any securities; and that, if and when securities of the Company are offered, each such recipient will rely on the offering documents for such offering (provided such recipient is entitled to rely on such documents pursuant to the terms thereof) and not on this Summary. None of the Company or its affiliates, associates, shareholders, partners, members, directors, officers, employees, agents or representatives, as applicable, (collectively, the Sun Metals Group ) makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein or any other information (whether communicated in written or oral form) transmitted or made available to prospective investors, and the Sun Metals Group expressly disclaims any and all liability relating to or resulting from the use of this Summary or such other information by a prospective investor or any of its affiliates, associates or representatives. The Sun Metals Group shall not be liable for any errors (as a result of negligence or otherwise, to the fullest extent permitted by law in the absence of fraud) in the information, beliefs, assumptions, expectations and/or opinions included in this Summary, or, as noted above, for the consequences of relying on such information, beliefs, assumptions, expectations and/or opinions. 22
Corporate Inquiries 604.683.7790 info@sunmetals.ca SUNM:TSX.V 1900 1055 West Hastings Street Vancouver, BC V6E 2E9 www.sunmetals.ca