International Tower Hill Mines Ltd. · TSX:ITH

International Tower Hill Mines — Investor Presentation (September 2017)

25 slides from International Tower Hill Mines's investor presentation, September 2017

  1. Slide 1: Livengood: A Leveraged Gold Opportunity

    LIVENGOOD A Leveraged Gold Opportunity Corporate Update Alaska Headquarters Tower Hill Mines, Inc. September, 2017 506 Gaffney Road, Suite 200 Fairbanks, AK 99701 1-­‐855-­‐428-­‐2825 TSX: ITH | NYSE MKT: THM www.ithmines.com

  2. Slide 2: Forward-Looking & Cautionary Statements

    Forward-­‐Looking & CauHonary Statements This presentaSon contains forward-­‐looking statements and forward-­‐looking informaSon (collecSvely, “forward-­‐looking statements”) within the meaning of applicable Canadian and US securiSes legislaSon. All statements, other than statements of historical fa

  3. Slide 3: The Livengood Advantage: Size - Leverage - Location

    The Livengood Advantage: Size -­‐ Leverage -­‐ LocaHon § Largest North American gold-­‐only deposit by Reserves and Resources not wholly owned by a Major or Producer § Quality asset provides long-­‐term leverage & opportunity § Located in a stable jurisdicSon with rich mining history § Easy acce

  4. Slide 4: Livengood Gold Reserve and Resource

    Livengood Gold Reserve and Resource § 9.0M ounce Gold Reserve at $1,250 oz Proven & Probable Reserve (392 MT, Grade Avg. 0.71 g/t, cut-­‐off grade varies*) § 11.5M ounce Gold Resource at $1,230 oz Measured & Indicated Resource (525 MT, Grade Avg. 0.68 g/t, cut-­‐off grade varies**) § 783 Drill hole

  5. Slide 5: Largest Gold-Only Reserve in North America Not Wholly Owned by a Major

    Largest Gold-­‐Only Reserve in North America Not Wholly Owned by a Major Proven & Probable Reserves (m oz) 10 8 Au -­‐ Oz Millions 6 4 2 0 Sources: ITH -­‐ April 10, 2017 NI 43-­‐101 All others -­‐ public documentaAon TSX: ITH | NYSE MKT: THM 5 www.ithmines.com

  6. Slide 6: Largest Gold-Only Resource in North America Not Wholly Owned by a Major

    Largest Gold-­‐Only Resource in North America Not Wholly Owned by a Major Measured & Indicated Resource (m oz) 12 10 8 Au-­‐Oz Millions 6 4 2 0 Sources: ITH -­‐ April 10, 2017 NI 43-­‐101 All others -­‐ public documentaAon TSX: ITH | NYSE MKT: THM 6 www.ithmines.com

  7. Slide 7: ITH - Impressive Leverage to Gold Price

    ITH -­‐ Impressive Leverage to Gold Price A]er Tax NPV (US$) A]er Tax NPV @5% ($M) A]er Tax NPV@0% ($M) $6,000 NPV(A]er-­‐Tax, $US million) $5,000 $4,000 $3,000 $2,000 $1,000 $-­‐ $(1,000) Based on financial model used in Gold Price (US$/oz) April 10, 2017 NI 43-­‐101 TSX: ITH | NYSE MKT: THM 7 www.i

  8. Slide 8: Share Structure & Cash

    Share Structure & Cash TSX: ITH -­‐ NYSE MKT: THM (as of August 7, 2017) Issued & Outstanding Shares 162,392,996 Shares Fully Diluted 168,332,996 Working Capital (as of June 30, 2017) $4.6 Million Major Shareholders Shares Held % Paulson & Co. Inc. 55,487,842 34.2 Tocqueville Asset Management LP 31,

  9. Slide 9: Alaska: Rich Mining Jurisdiction

    Alaska: Rich Mining JurisdicHon Red Dog Mines (Teck/NANA) • OperaSng since 1989 • Zinc-­‐lead mine -­‐ top producer of zinc concentrate Fort Knox (Kinross) • OperaSng since 1996 • Surface gold mine -­‐ produced >7,000,000 oz Pogo (Sumitomo) • OperaSng since 2006 • Underground gold mine -­‐ produced

  10. Slide 10: Great Access To Infrastructure

    Great Access To Infrastructure § Adjacent to Ellioe Highway and Trans-­‐ Alaska Pipeline System corridor § Minimal transmission line required to connect to electric grid § No need for a camp TSX: ITH | NYSE MKT: THM 10 www.ithmines.com

  11. Slide 11: Livengood - Gently Rolling Terrain of Interior Alaska

    Livengood – Gently Rolling Terrain of Interior Alaska TSX: ITH | NYSE MKT: THM 11 www.ithmines.com

  12. Slide 12: Excellent Project Fundamentals: Jurisdiction & Infrastructure

    Excellent Project Fundamentals: JurisdicHon & Infrastructure § 70 miles northwest of Fairbanks via year-­‐round paved highway § 50 miles from electric grid power § Livengood Mining District acSve since 1914 and the State designated the primary surface use as mineral development § Alaska has a hi

  13. Slide 13: Optimization Study Results: Improved Livengood Gold Project

    OpHmizaHon Study Results: Improved Livengood Gold Project § Project size opSmized at 52,600 tons/day § Lowered CAPEX by $950 million to $1.84 billion (34%) § Reduced Process OPEX by $2.97/ton to $7.48/ton (28%) § 6.8 million ounces of gold produced over 23 years § ProducSon Costs before Capital

  14. Slide 14: 2017 Work Plan: Improve & De-risk

    2017 Work Plan: Improve & De-­‐risk § $14.7 million land payment paid on January 12, 2017, which removed large financial risk § Now focused on project improvement § Board approved 2017 budget of $6.3 million ØPursue opSmizaSon opportuniSes idenSfied in October 2016 Pre-­‐Feasibility Study § Goal

  15. Slide 15: 2017 Work Plan: Update Block Model

    2017 Work Plan: Update Block Model Examine opportunity for updated block model to improve producSon forecast compared to MulSple Indicator Kriging (MIK) § BBA Inc. retained for 2017 program § Assay stored pulps to improve geologic model § Isolate zones with varying recoveries The Company cauSons

  16. Slide 16: 2017 Work Plan: Recovery Optimization

    2017 Work Plan: Recovery OpHmizaHon AddiSonal metallurgical test work to idenSfy potenSal recovery improvements § ConSnue reagent and flow sheet opSmizaSon § Confirm and potenSally improve recovery and OPEX esSmates For example: § For each overall recovery improvement of 1% in RT7 and RT9, an NPV i

  17. Slide 17: 2017 Work Plan: Environmental Baseline

    2017 Work Plan: Environmental Baseline Ongoing programs prepare for future permijng § Rock CharacterizaSon § Geohydrology § Surface Water & Hydrology § Meteorology § Air Quality § Wetlands & VegetaSon § AquaSc Studies § Cultural Resources § Noise Studies § Wildlife & Habitat Studies TSX: I

  18. Slide 18: Excellent Management Team

    Excellent Management Team Track Record of Large Mine Development and Permijng Success Mr. Hanneman has over 35 years of Alaska-­‐based mining industry experience and most recently was COO of ITH. Prior to joining the Company in 2010, he played a key role on the team that Karl L. Hanneman worked to r

  19. Slide 19: Opportunity To Invest At Low Valuation

    Opportunity To Invest At Low ValuaHon Peer Comparison to ITH Market Cap/Oz P&P $80 $60 $40 $20 $-­‐ Outstanding Shares, Market Price and Proven & Probable Reserves based on corporate websites as of Sept. 12, 2017. ITH taken from April 10, 2017 NI 43-­‐101. TSX: ITH | NYSE MKT: THM 19 www.ithmines.co

  20. Slide 20: Meaningful Potential Upside to the ITH Share Price

    Meaningful PotenHal Upside to the ITH Share Price NPV/Share (US$) NPV@5%(A]er-­‐Tax, US$)/share $20 $15 $10 $5 $-­‐ $(5) Based on financial model used in Gold Price (US$/oz) April 10, 2017 NI 43-­‐101 TSX: ITH | NYSE MKT: THM 20 www.ithmines.com

  21. Slide 21: Livengood: A Leveraged Gold Opportunity

    LIVENGOOD A Leveraged Gold Opportunity Alaska Headquarters Investor RelaHons Tower Hill Mines, Inc. Richard Solie, Jr. 506 Gaffney Road, Suite 200 rsolie@ithmines.com Fairbanks, AK 99701 1-­‐855-­‐428-­‐2825 Telephone: (907) 328-­‐2800 TSX: ITH | NYSE MKT: THM www.ithmines.com

  22. Slide 22: Solid Shareholders Who Understand Long-Term Leverage

    Solid Shareholders Who Understand Long-­‐Term Leverage Major shareholders parScipated in recent financings: § CAD 8.4M private placement in December 2014 § USD 22.0M private placement in December 2016 Private Placement ParHcipants Dec. 2014 Dec. 2016 Paulson & Co. Inc. C$6,509,000 $15,566,324 Tocqu

  23. Slide 23: Board of Directors

    Board of Directors Partner at Paulson & Co. Inc. since 2011, where he oversees natural resource investments, specializing in gold, base metals, bulk Marcelo Kim commodiSes and oil & gas. Prior to that, commencing in 2009, he was a generalist analyst covering event arbitrage investment Chairman oppor

  24. Slide 24: 2017 Pre-Feasibility Study: Gold Production

    2017 Pre-­‐Feasibility Study: Gold ProducHon Year 1-­‐5 -­‐ Average: 378,300 oz/yr Life of Mine -­‐ Average: 294,100 oz/yr Source: April 2017 Pre-­‐Feasibility Study, as reported in the April 10, 2017 NI 43-­‐101. The Company cauSons that it has not demonstrated that it will be economically viable t

  25. Slide 25: Livengood Reserves and Recovery by Rock Type

    Livengood Reserves and Recovery by Rock Type Livengood Reserves from designed ulHmate pit (April 10, 2017 NI 43-­‐101) Mineralized Material Kmt Contained Au Koz Au Recovery (%) Rock Type 4 61,506 16% 1,298 14% 81.8 Rock Type 5 89,009 23% 1,747 19% 84.7 Rock Type 6 91,032 23% 2,023 23% 75.6 Rock Type

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