Slide 1: Built for Growth
BUILT FOR GROWTH A PROVEN TEAM DRIVEN BY VALUE AND COMMITTED TO EXCELLENCE TSX: TI TD SECURITIES MINING CONFERENCE JANUARY 16-17, 2019
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation contains "forward-looking information" within the meaning of Canadian political and regulatory stability; the receipt of governmental and third party approvals, securities laws. In some cases, forward-looking information can be identified by the use lice
Slide 3: Overview
Overview • 100%-owned Empire State Mine (“ESM”) with excess capacity for near-term growth • Main focus of the Augusta Group – leaders in building long-term value • Ramping up zinc production in historic mining district in New York State • Growth fueled by excellence in exploration and Empire State M
Slide 4: Investment Highlights
Investment Highlights Best-in-Class • Demonstrated track record. Executive Chair, Richard Warke, and the Augusta Group have Leadership generated extraordinary shareholder value through exploration and development excellence • Award-winning. CEO Donald Taylor is the recipient of PDAC’s 2018 Thayer Li
Slide 5: Our Strategy
Our Strategy Mission: To deliver extraordinary shareholder value through exploration, development and operational excellence BEST-IN-CLASS LEADERSHIP OPERATIONAL EXCELLENCE • Leverage experienced • Deliver on expectations management and directors • Innovate to capture efficiencies • Remain aligned w
Slide 6: The Right People
The Right People • Consistent record • 25+ years of mineral of creating exploration experience shareholder value • Discovered world-class at Augusta Group Taylor sulphide deposit – winner of PDAC’s 2018 Richard Warke Donald Taylor Thayer Lindsley Award Executive Chairman CEO • 25+ years of public •
Slide 7: The Augusta Group Track Record
The Augusta Group Track Record La Bodega gold project (Colombia) Rosemont copper project (Arizona) SOLD in 2011 for ~C$1.6B SOLD in 2014 for ~C$666M 12,960% share price increase 3,300% share price increase Hermosa-Taylor zinc-lead-silver project (Arizona) Castle Mountain gold project (California) SO
Slide 8: Consistently Aligned with Shareholders
Consistently Aligned with Shareholders Share Ownership Management/Directors (50%) Institutional (22%) Retail (28%) Titan Mining Share Price (1) Peer group includes Ascendant Resources, Capstone Mining, Copper Mountain Mining, Ero Copper, Hudbay Minerals, Imperial Metals, Nexa Resources, Sherritt Int
Slide 9: Empire State Mine: Focused on Exploration in a 100-Year-Old Zinc District
Empire State Mine: Focused on Exploration in a 100-Year-Old Zinc District • In production, ramping up to 3,000 tpd; target 5,000 tpd to fill the mill • Major employer with ~200 employees (over 80% local), benefiting St. Lawrence County in northern New York • Long-term zinc concentrate offtake agreem
Slide 10: Two Parallel Exploration Strategies – Filling The Mill and Finding Major New Deposits
Two Parallel Exploration Strategies – Filling The Mill and Finding Major New Deposits • Filling the mill (5,000 tpd) with current mineral resources and near-mine resource additions • Current source is ESM #4 mine – multiple zones; Mahler and Mud Pond zones in production, New Fold zone in development
Slide 11: Excellence in Exploration
Excellence in Exploration Mahler Plan view of ESM #4 mine and #2D zone Mud Pond New Fold NE Fowler ESM #4 • #4 mine – drilling potential zone extensions and Mine upgrading mineral resources • #2D zone1 – major extension of zone mined in Fowler A’ ESM #3 mine (Historic) historic #2 mine; 650 feet eas
Slide 12: Realizing Mineral Resource Expansion Potential at ESM #4 Mine and #2D Zone
Realizing Mineral Resource Expansion Potential at ESM #4 Mine and #2D Zone • #4 mine – mineralized zones generally plunge to northeast; potential to extend zones up- and down-plunge • #2D zone – More than 2,000 feet of strike length and open down-plunge and laterally; connected by historic infrastru
Slide 13: Major Down-Plunge Extension of #2D Zone
Major Down-Plunge Extension of #2D Zone (Longitudinal View) #4 shaft OPERATIONAL EXCELLENCE 1/2019 13
Slide 14: #2D Zone – Focus on Near-Term Expansion and Development
#2D Zone – Focus on Near-Term Expansion and Development • Mineralization remains open in several directions – step-out and definition drilling in Q4 2018 • Bulk-minable – area of thicker, high-grade mineralization extends down-plunge and may be associated with a fold hinge • Preliminary engineering
Slide 15: #2D Zone – Longitudinal View Looking Northeast
#2D Zone – Longitudinal View Looking Northeast #4 Shaft (3,800 tpd) #2D Zone 1,500 ft Tramway Existing 2500 Level North Ramp to 2650 Ore and Internal Ramp Waste Pass LEGEND Underground Crusher Existing Infrastructure 0 feet 250 feet 500 feet OPERATIONAL EXCELLENCE 1/2019 15
Slide 16: #2D Zone – Existing Infrastructure Connected to #4 Shaft
#2D Zone – Existing Infrastructure Connected to #4 Shaft Locomotive and rail cars on 1,500-ft Rehab underway at #2D zone tramway on 2500 level OPERATIONAL EXCELLENCE 1/2019 16
Slide 17: New Ideas for a Prolific Zinc District
New Ideas for a Prolific Zinc District Exploration targets throughout district • Targeting large, high-grade deposits in the 15 to 30+ Mt range • Multiple targets identified along trend northeast of ESM and south of Hyatt Existing Mine • Target areas exhibit Exploration Target favourable host rocks,
Slide 18: Focus on Organic Cash Flow Growth
Focus on Organic Cash Flow Growth • New mine plan expected H1/19 – target 3,000 tpd / 150M lb Zn per year near-term, with ESM #4 mine and #2D zone • Fill the mill – target 5,000 tpd / 225M lb Zn per year medium-term, with existing mineral resources and near-mine resource additions • Modernize the op
Slide 19: Our Catalyst-Rich Path
Our Catalyst-Rich Path • Refurbishment of existing infrastructure and equipment Recommissioning • Reconditioning and restarting the mobile equipment fleet (Q4 2017) • General rehabilitation of the underground workings First ore skipped • Development of new ramps, drifts and stopes concurrent with
Slide 20: Our Approach to Sustainability
Our Approach to Sustainibility Guiding • Our employees are governed by a commitment to integrity, trust, community involvement as well as Approach environment and social stewardship • Our projects are developed with the goal of delivering long-term mutual economic benefits for employees, communities
Slide 21: Our Approach to Sustainability… In Practice
Our Approach to Sustainability… In Practice Integrity and Trust We build relationships based on integrity and trust – positive feedback from our partners “With the help of the Governor and NYPA, we are capitalizing one resource, our hydropower assets, to support and develop another resource, our wor
Slide 22: Appendix
APPENDIX Opportunities to enhance Empire State Mine historic economics relative to PEA production, ore types and Dilution control exploration Zinc market Mineral resources Analyst coverage Historic mineralized material write-downs Valuation upside Management, directors and advisors Technical report
Slide 23: Opportunities to Enhance Economics Relative to the PEA
Opportunities to Enhance Economics Relative to the PEA Explanation Potential Benefit Use sorting technology to reject waste rock Lower rate of dilution and increased head Plant Feed Sorting mixed with mineralized mill feed grade entering the mill Simpler materials handling and reduction of Use Rail-
Slide 24: Dilution Control
Dilution Control Rigorous grade control is key • On-shift grade control geologist • Disciplined approach to sourcing incremental zinc mineralization • Implementation of optical ore/waste sorting technology • Tighter stope design APPENDIX 1/2019 24
Slide 25: Outlook for Zinc Prices Remains Positive
Outlook for Zinc Prices Remains Positive As a pure zinc producer, Titan benefits from elevated zinc prices supported by low inventories Source: LME and U.S. Federal Reserve APPENDIX 1/2019 25
Slide 26: Zinc Market Balance
Zinc Market Balance Zinc Supply/Demand Forecast (‘000 Tonnes) Source: Wood Mackenzie, Scotiabank GBM estimates – January 14, 2019 APPENDIX 1/2019 26
Slide 27: Western World Mine Closures vs Forecast New Supply
Western World Mine Closures vs Forecast New Supply Western Mine Closures vs Chinese Growth, New Projects and Mine Restarts (‘000 Tonnes) Note: Analysis is before supply disruption Source: Wood Mackenzie, Scotiabank GBM estimates – January 14, 2019 APPENDIX 1/2019 27
Slide 28: Zinc Uses
Zinc Uses 2016 Global Zinc 2016 Global Zinc Consumption by First Use Consumption by End Use Source: Wood Mackenzie and RBC Capital Markets APPENDIX 1/2019 28
Slide 29: Analyst Coverage
Analyst Coverage Analyst Company Dalton Baretto Canaccord Genuity Shane Nagle National Bank Financial Orest Wowkodaw Scotiabank Daniel Earle TD Securities APPENDIX 1/2019 29
Slide 30: Trading at a Discount – The Valuation Upside
Trading at a Discount – The Valuation Upside Executing to a premium valuation Price to Net Asset Value Enterprise Value to EBITDA (2019E) Titan is trading at only 2.4x estimated 2020 EBITDA Source: Scotiabank, January 14, 2019; NAV calculated at discount rate of 8% and long-term zinc price of $1.00/
Slide 31: Empire State Mine: Historic Production
Empire State Mine: Historic Production EMPIRE STATE MINE PIERREPONT MINE #1 MINE Historic #2 Shaft • Discovered 1979 • Zinc showings identified • Ramp to ~700 foot depth 1920s • Opened 1982, closed 2001 • Inclined shaft to 300 foot (flooded) level • Continuous operation • Mined #1 zone at 3-4% Zn •
Slide 32: Empire State Mine – Types of Mineralization
Empire State Mine – Types of Mineralization Primary (parent) mineralization • Conformable lenses (175m x 750m) • Sphalerite with pyrite and minor galena • ~1.0-3.0 Mt @ 11.5-14.5% Zn Remobilized (daughter) mineralization • Cross-cutting, elongate trends (125m x ~2000m) • Sphalerite with minor pyrite
Slide 33: History of Exploration Success Plus Potential for Additional Discoveries
History of Exploration Success Plus Potential for Additional Discoveries Many discoveries Long Production History with Numerous made during a Discoveries century of 120000 New (Hyatt) mining West Branch (Hyatt) Sully (Hyatt Area) #2 (1927) #3 (1946) Pierrepont (1979) Edwards (1903) Hyatt (1917) #4 (
Slide 34: First Priority – Mining Historical Data
First Priority – Mining Historical Data Compiling, digitizing and modelling existing data • 100 years of historical exploration ‒ ~800 kilometers of available drill data • Consolidating and assessing exploration data from multiple programs and operators • Previous (re)discoveries based on examinatio
Slide 35: Expanding and Upgrading the Mineral Resources at #4 Mine
Expanding and Upgrading the Mineral Resources at #4 Mine Potential to increase Plan view, ESM #4 mine production and extend mine life • Mineral resources in eight mineralized zones – with excellent potential for zone extension • Underground drilling targeting up-plunge extensions and upgrading infer
Slide 36: Filling the Shaft (3,000 tpd) – Focus on Converting More Remnants to Mineral Resources
Filling the Shaft (3,000 tpd) – Focus on Converting More Remnants to Mineral Resources #4 mine – already converted 3.1 M tons at 11.88% zinc to inferred mineral resource in early 2018(3) Mahler • Historic mineralized material write- New Fold downs of ~4 million tons at Empire State Mines(1) Mud Pond
Slide 37: Mineral Resources
Mineral Resources Mineral Resources at Empire State Mine #4 Mine as at January 31, 2018 Measured Indicated Measured & Indicated Inferred Mineralized Zones ‘000 Tons Grade (% Zn) ‘000 Tons Grade (% Zn) ‘000 Tons Grade (% Zn) ‘000 Tons Grade (% Zn) Mud Pond 337.0 10.40% 285.2 10.87% 622.2 10.61% 1,390
Slide 38: Historic Mineralized Material Write-Downs
Historic Mineralized Material Write-Downs(1),(2) Proven Ore Probable Ore Proven Ore and Probable Ore Inferred Ore Zinc Contained Zinc Contained Zinc Contained Zinc Contained Year Area Tons Tons Tons Tons Grade Zinc Grade Zinc Grade Zinc Grade Zinc Balmat (No. 2 1985 824,225 7.11% 58,602 860,620 7.41
Slide 39: Experienced Management
Experienced Management Donald Taylor Purni Parikh Michael McClelland Jerrold Annett Chief Executive Officer President Chief Financial Officer SVP, Corporate Development Donald Taylor has 30 years of Purni Parikh has more than 25 Michael McClelland is a Jerrold Annett has over 11 mineral exploration
Slide 40: Experienced Management, cont’d
Experienced Management, cont’d Jacqueline Allison Scott Burkett Naomi Johnson Eric Strom VP, Investor Relations & VP, Exploration VP, Community Relations VP, Projects and Innovation Strategic Analysis Jacqueline Allison is a Scott Burkett has over 10 Naomi Johnson is a global Eric Strom is a mining
Slide 41: Experienced Management, cont’d, & Directors
Experienced Management, cont’d, & Directors Management Directors Kevin Torpy Richard Warke John Boehner Lenard Boggio VP, Operations Executive Chairman Director Director Kevin Torpy joined Titan in Richard Warke is a John Boehner served as the Len Boggio was formerly a September 2018. He is a Vancou
Slide 42: Directors, cont’d
Directors, cont’d Gregory Clark James Gowans William Mulrow Purni Parikh Director Director Director Director Greg Clark has been retired James Gowans has more than William Mulrow is a Senior Purni Parikh has more than 25 since 2013, prior to which he 30 years' experience in Advisor at the Blackstone
Slide 43: Directors, cont’d, & Advisor
Directors, cont’d, & Advisor Directors Advisor George Pataki Donald Taylor Robert Wares R. Stuart Angus Director Director Director Advisor George E. Pataki is the co- Donald Taylor has 30 years of Robert Wares is the Executive Stuart Angus is an founder and Chairman of the mineral exploration experi
Slide 44: Technical Report Qualified Persons
Technical Report Qualified Persons Qualified Person Company Professional Designation Mike Makarenko JDS Energy & Mining Inc. P.Eng. Matt Moss JDS Energy & Mining Inc. P.Eng. Indi Gopinathan JDS Energy & Mining Inc. P.Eng. Allan Reeves Tuun Consulting Inc. P.Geo. Robert Raponi TR Raponi Consulting Lt
Slide 45: For More Information Contact
FOR MORE INFORMATION CONTACT: Jerrold Annett www.titanminingcorp.com Senior Vice President, Corporate Development 416-366-5678 Ext. 207 TSX: TI jannett@titanminingcorp.com Jacqueline Allison Vice President, Investor Relations and Strategic Analysis 416-366-5678 Ext. 205 jallison@titanminingcorp.com