Kootenay Silver Inc. · TSXV:KTN

Kootenay Silver — Merger or Acquisition (January 2016)

17 slides from Kootenay Silver's merger presentation, January 2016

  1. Slide 1: Creating a Leading Mexican Silver Consolidator

    KTN – TSX.V INM – TSX.V CREATING A LEADING MEXICAN SILVER CONSOLIDATOR PROMONTORIO LA NEGRA LA CIGARRA The Combination of Kootenay Silver Inc. and Northair Silver Corp. January 2016

  2. Slide 2: Forward Looking Statements

    FORWARD LOOKING STATEMENTS The information in this presentation has been prepared as at January 12, 2016. This presentation contains “forward‐looking statements” with the meaning of Canadian securities legislation. Such forward‐looking statements concern the completion of the proposed combination (t

  3. Slide 3: Transaction Highlights

    TRANSACTION HIGHLIGHTS  Creation of a leading Mexican silver exploration and development company  Large resource base with strong exploration  Focus on low‐cost overhead expenses  Platform for aggressive growth and consolidation in the silver sector  Active prospect generator portfolio, with mu

  4. Slide 4: Transaction Summary

    TRANSACTION SUMMARY  0.35x shares of KTN + 0.15x warrants of KTN per INM share held Exchange Ratio  KTN warrants with a strike of $0.55, 5 year term, will be listed on the TSX‐V  Implied consideration of $0.071 (spot basis) & $0.076 (VWAP20 basis) per Implied share to INM, including value of the

  5. Slide 5: Consolidation Thesis

    CONSOLIDATION THESIS COMBINED ASSETS LOCATION  Flagship Promontorio / La Negra and La Cigarra projects in Mexico – Promontorio resource growth and definition LA NEGRA of high‐grade zone LA CIGARRA – La Negra maiden resource in H2/2016 – La Cigarra resource growth and exploration, PROMONTORIO includ

  6. Slide 6: Benefits to Shareholders

    BENEFITS TO SHAREHOLDERS  Increased and diversified silver resource base  Enhanced capital markets presence – Increased liquidity – Access to capital – Strengthened institutional and retail shareholder base: Coeur Mining, Agnico‐Eagle, Gold2000, Sprott and institutional shareholders to hold >50%,

  7. Slide 7: Pro-Forma Capitalization

    PRO-FORMA CAPITALIZATION Kootenay Northair Pro‐Forma Shares Outstanding 79.4M 150.1M 132.0M Basic Ownership 60.2% 39.8% 100.0% Warrants 20.2M 40.0M 64.5M Options 7.5M 11.9M 11.7M Market Cap(1) $14.3M $6.8M $23.8M Cash(2) $0.8M $2.4M $3.2M Promontorio (2013) (4) La Cigarra (2015) Resources(3) • M&I:

  8. Slide 8: Management & Board

    MANAGEMENT & BOARD  Co‐founded National Gold, which merged with Alamos Minerals to form Alamos Gold JIM MCDONALD President & CEO, Director  Past President of Genco Resources which operated La Guitarra Silver Mine, Mexico  Founder of Kootenay  Over 25 years of experience in finance and venture ca

  9. Slide 9: Promontorio Mineral Belt

    PROMONTORIO MINERAL BELT  100% owned claims located in Sonora, Mexico  Host to two major silver discoveries: Promontorio & La Negra  Established resource at Promontorio (historic minesite)  New high‐grade La Negra silver discovery located 7km away; maiden resource expected in Promontorio (2013)*

  10. Slide 10: La Negra Discovery

    LA NEGRA DISCOVERY  Highly prospective high‐grade silver Promontorio discovery extending to surface  Surface footprint of ~500m x 200m 7 km  Silver intercepts defined‐to‐date down ~250m ‐ 300m vertically from surface  25 holes drilled in Phase I program + 16 holes drilled in Phase II program hav

  11. Slide 11: Promontorio Mineral Belt

    PROMONTORIO MINERAL BELT N ° Legend Alamito Rock Sample w- E Au (gpt) Ag (gpt) Agua Zacate ae Au:05g/t 5 \ Au (gpt) Ag (gpt) 2 AU: 20.1B/t e ° al 2 © Ag >ase/t ys al 7 © Ag:>10e/t A a ° Other Rock Sample 77 141 Fault S: 11 13 a Miocen Qe: iocene ae a a oe - Ao is ¢ Upper Cretaceous TAY aS S Gringo ‘

  12. Slide 12: La Cigarra

    LA CIGARRA  Located in the state of Chihuahua, Mexico, within the Parral Silver Belt – 26 km from the city of Parral, near paved highway, close to power and rail – 100% ownership of 19,000 ha – Surface rights obtained for mining and exploration  Open‐pitable resource, with significant expansion po

  13. Slide 13: La Cigarra

    LA CIGARRA  Numerous targets to increase the potential open‐pit resource  Main resource area defined over 2.4km strike at the San Gregorio and Las Carolinas Zones  Deposit remains open along strike to the NW and SE, and at depth  Target growth areas: – La Borracha Zone (11 holes intercepted mine

  14. Slide 14: Prospect Generator Portfolio

    PROSPECT GENERATOR PORTFOLIO Exploration Properties Optioned Properties Canada Copley Silver Fox – Antofagasta Spike’s Big Adventure 2X Fred, Fox – Theia Resources Walter the Water Buffalo Connors Creek Exploration Properties Optioned Properties Mexico Santa Lucia San Diego – Alamos Gold Guadalupe C

  15. Slide 15: Forward Plan & Near-Term Catalysts

    FORWARD PLAN & NEAR-TERM CATALYSTS* 2016 2017+  Evaluate additional exploration targets  Move toward updated NI 43‐101 resource Promontorio  High‐grade resource review estimate  Drill program, metallurgical work  Move toward PEA, evaluate project La Negra  Maiden resource expected in H2/16 dev

  16. Slide 16: Contact Us

    CONTACT US KOOTENAY SILVER INC. NORTHAIR SILVER CORP. 1055 West Hastings Street, Suite #1820 625 Howe Street, Suite #860 Vancouver, BC, V6E 2E9, Canada Vancouver, BC, V6C 2T6, Canada Tel: (604) 601‐5650 Tel: (604) 687‐7545 Fax: (604) 683‐2249 Fax: (604) 689‐5041 Toll free: (888) 601‐5650 E‐Mail: inf

  17. Slide 17: Mineral Resources

    MINERAL RESOURCES Promontorio(1) Promontorio In‐Situ Grade Contained Metal Tonnes (kt) Pit‐Constrained AgEq (g/t) Ag (g/t) Au (g/t) Pb (%) Zn (%) AgEq (koz) Ag (koz) Au (koz) Pb (klbs) Zn (klbs) Measured 10,289 74.79 32.69 0.40 0.46 0.55 24,741 10,814 134 105,328 123,715 Indicated 34,215 61.18 26.30

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