North Arrow Minerals Inc. · TSXV:NAR

North Arrow Minerals — Corporate Update (November 2016)

29 slides from North Arrow Minerals's corporate update, November 2016

  1. Slide 1: Exploring Diamond Opportunities in Canada

    TSXV: NAR TSXV:NAR Exploring Diamond Opportunities in Canada North Arrow Minerals Corporate Update with a focus on the Qilalugaq Diamond Project

  2. Slide 2: Cautionary Statement

    CAUTIONARY STATEMENT This presentation contains projections and forward looking information that involve various risks and uncertainties, including, without limitation, statements regarding the potential extent of mineralization, resources, reserves, exploration results and plans and objectives of N

  3. Slide 3: The Opportunity

    THE OPPORTUNITY  EXPERIENCED TEAM – Successful exploration and development (Aber; Diavik; Lucara; Stornoway; SouthernEra)  LEVERAGED EVALUATION - Canadian diamond projects developed over years of exploration by past companies at costs in excess of $40 million dollars  SOLID FINANCIAL BACKING - >$

  4. Slide 4: Corporate Overview – as of October 1, 2016

    CORPORATE OVERVIEW– as of October 1, 2016 unless otherwise noted  Capitalization Listing: TSX Venture - NAR Issued: 54.2 M Options: 4.3 M Warrants: 1.0 M $0.25 & $0.65 Corporate Fully diluted: 59.5 M Highlights Estimated Working Capital: ~$1.1 M (as of Oct 1, 2016)  Main Shareholders Management/Di

  5. Slide 5: Corporate Overview - People

    CORPORATE OVERVIEW - PEOPLE D. Grenville Thomas (Chairman) Founder of Aber Resources (now Dominion Diamond Corporation), discoverer of the Diavik Diamond Mine and 2009 Canadian Mining Hall of Fame inductee. Ken Armstrong P.Geo.(ON) (President, CEO, Director and Qualified Person under NI 43-101) Diam

  6. Slide 6: Corporate Overview – Projects

    CORPORATE OVERVIEW – PROJECTS Hope Bay Gold (NU) • 100% NAR Qilalugaq (NU) • ~10,000 ha on strike • Big kimberlite on tide water from TMAC’s Doris Mine • High value fancy “Canary” diamonds • 2017 delineation drilling Loki (NT) • JV with Stornoway (80% NAR) • Near Diavik & Ekati mines • 100% NAR • 20

  7. Slide 7: Qilalugaq Project, NU

    QILALUGAQ PROJECT, NU View looking south-southwest from Q1-4 kimberlite towards Naujaat  Jurisdiction- Settled land claim.  Near tide water – improved logistics; sealift available – estimate freight costs 50% of NWT mines; proximity to workforce.  Large tonnage – 48.8 million tonnes inferred reso

  8. Slide 8: Qilalugaq Project - Background

    QILALUGAQ PROJECT - BACKGROUND  2000-2005: BHP Billiton discovered 8 kimberlites - Extensive till sampling, Q1-4 geophysics, and drilling; 68 DDH, 18 LDRC, kimberlite diamond testing ~229t from Q1-4 (largest kimberlite discovered).  2006-2012: Stornoway acquired 100% interest; more till sampling,

  9. Slide 9: Qilalugaq Project - Resource

    QILALUGAQ PROJECT - RESOURCE  May 2013 resource estimate1 Q1-4 – Inferred Resource = 48.8 Mt, 26.1 Mcts, total diamond content2 53.6 cpht. TFFE3 = 14.1 to 16.6 Mt, 7.9 to 9.3 Mcts, total diamond content2 56.1 cpht. Inferred – 1Mineral resources are not mineral reserves and do not have demonstrated

  10. Slide 10: Q1-4 Diamond Review

    Q1-4 DIAMOND REVIEW Primary Conclusion from the 2015 Valuation: “Valuation results and modelled values should be treated with considerable caution when it comes to assessing the Qilalugaq Project.”1 Q1-4 2014/15 Sample The parcel was small & complicated by presence of two distinct • ~384 carats from

  11. Slide 11: Q1-4 Diamond Review – Main Questions

    Q1-4 DIAMOND REVIEW – MAIN QUESTIONS Can yellow rough Do the yellow diamonds represent a be polished into desirable diamonds in distinct population from the white the diamonds? gem trade? If so, does it matter? +11 DTC Q1-4 diamonds from 2014 sample. +9 DTC Q1-4 diamonds from 2014 sample. 11

  12. Slide 12: Q1-4 Diamond Polishing and Colour Grading

    Q1-4 DIAMOND POLISHING AND COLOUR GRADING 0.14 ct fancy vivid 0.08 ct fancy 0.04 ct fancy deep orangey yellow intense yellow orangey yellow (GIA) (GIA) (CGL) Summary • 13 diamonds polished with an average yield of 30%. • 7 polished from single diamond crystals. • 6 derived from a single 4.4 ct diamo

  13. Slide 13: Q1-4 Rough to Polished Diamonds

    Q1-4 ROUGH TO POLISHED DIAMONDS GIA Certified +11 DTC 0.12 ct rough fancy vivid1 “dark orangey yellow” yellow inverted brilliant – cube 26% yield GIA Certified +11 DTC 0.14 ct rough fancy vivid1 “dark orangey yellow” yellow, inverted brilliant – cube 30% yield 1“Fancy Vivid” = greatest level of colo

  14. Slide 14: Q1-4 Rough to Polished Diamonds

    Q1-4 ROUGH TO POLISHED DIAMONDS GIA & CGL +9 DTC Certified rough 0.08 carat “yellow” fancy intense cubic yellow diamond brilliant – 36% yield CGL Certified +9 DTC 0.04 carat rough fancy deep “dark orange yellow” yellow1 inverted brilliant – cube 34% yield 1“Orange yellow” = equal orange & yellow = p

  15. Slide 15: Polishing Results - Impact on Value

    POLISHING RESULTS - IMPACT ON VALUE Conclusions Q1-4 ‘canary’ diamonds can be polished, are fully saturated ‘fancy from yellow colours’ and would be desirable in the gem trade diamond A Premium Price for Q1-4 fancy colour diamonds is clearly warranted polishing in smaller size classes. exercise The

  16. Slide 16: Two Separate Diamond Populations

    TWO SEPARATE DIAMOND POPULATIONS Q1-4 Sample Press Release, May 5, 2015 Q1-4 Grade/Size Curve Comparative Curves “Yellow diamonds, representing a range of hues and tones, comprise approximately 9.0% by stone count and 21.5% by carat weight of the +1 DTC diamonds recovered to date”. Total Parcel Obse

  17. Slide 17: Two Separate Diamond Populations

    TWO SEPARATE DIAMOND POPULATIONS Q1-4 Grade/Size Curve Yellow population can be modelled to define 2 distinct scenarios Comparative Curves Scenario 1 – extrapolate to coarser diamond sizes. Total Parcel • Frequency of yellow diamonds at coarser sizes exceeds the current total parcel model. Scenario

  18. Slide 18: Two Separate Diamond Populations

    TWO SEPARATE DIAMOND POPULATIONS June 2015 Price Models Applied to Possible SFD Scenarios: Q1-4 Grade/Size Curve Comparative Curves Scenario 1: • Applying the June 2015 price models to this outcome results in average price range from just under $100/ct to Total Parcel >$200/ ct. $200/ct is positive

  19. Slide 19: Future Work

    FUTURE WORK Project Requires Increased Confidence in: Drilling Bulk Sampling 1. Volume / tonnage 2. Internal Geology 3. Spatial diamond data 4. Recoverable Grade 5. SFD’s of diamond Population 6. Diamond Value Bulk Sample 1: +700 carats 4500-6000 m confirm yellow SFD model Critical for PEA drilling

  20. Slide 20: Next Logical Steps – 2017 Drilling

    NEXT LOGICAL STEPS – 2017 DRILLING • 4,500-6,000m of delineation drilling. Drilling • Increase confidence in tonnage and diamond distribution of the Target for Further Spring / Exploration (TFFE). Summer • Proving up the TFFE is considered critical for the project. 2017 • Delineation drilling is the

  21. Slide 21: Next Logical Steps – 2017/18 Sample

    NEXT LOGICAL STEPS – 2017/18 SAMPLE Bulk • > 1,000 carats required to confirm most likely yellow diamond SFD; Sampling in • Need 600-700 more carats (2X the 2014 sample size); 2017/18 to • New, near surface hypabyssal kimberlite confirmed in 2016; learn value • Characteristics of kimberlite unit A61

  22. Slide 22: Pikoo Project, SK

    PIKOO PROJECT, SK  North Arrow (~85%)/Stornoway (~15%) Joint Venture.  Good local infrastructure; within 10 km of SK Hwy 911– more than 200 km from nearest kimberlite field (FALC).  10 discrete kimberlites discovered to date. Five tested and proven diamondiferous.  PK150 – most significant diamo

  23. Slide 23: Pikoo Project – Kimberlite Indicator Trains

    PIKOO PROJECT – KIMBERLITE INDICATOR TRAINS PK314, PK346,  Till sampling works; PK347 & Five discrete trains. “North Pikoo Dykes”  Positive samples range PK150 (plus PK151 from 1 to 100’s of KIM and other PK312 grains. dykes) PK311  Excellent chemistry - kimberlite indicator minerals are probe- c

  24. Slide 24: Pikoo Project – 2016 Till Sampling

    PIKOO PROJECT – 2016 TILL SAMPLING PK347 PK346  Infill till sampling program focused on 4 areas. PK314 PK150 PK312  All indicator trains require increased sample density: North Pikoo, South Pikoo, PK311 PK312 and Bear Lake.  Highest priority area remains North Pikoo - high interest KIMs in till n

  25. Slide 25: Mel Project - NU

    MEL PROJECT - NU  100% interest in 7,500 hectare property on Melville Peninsula; 140 km south of Hall Beach; 210 km northeast Naujaat.  Three to five unique unsourced KIM trains well- defined from over 750 NAR & historic till samples.  2013, 2014, 2015 and 2016 till sampling & prospecting program

  26. Slide 26: Mel Project, Northern Train

    MEL PROJECT, NORTHERN TRAIN  Northern indicator train is a 15km long multi-sample ribbon- like train up to 2.5km wide.  Diverging into multiple narrower trains suggestive of multiple sources.  High counts (>100 KIMs) in 2015 samples – close to source!  Excellent mineral chemistry.  2016 - 150 s

  27. Slide 27: Lac de Gras Properties

    LAC DE GRAS PROPERTIES Lac de Gras Property • 125,000 ha south of Diavik. • 45% North Arrow, 55% Dominion Diamonds. • Overburden RC drilling program was funded by Dominion in 2013/14 to earn their 55%. • 2016 - $1.28 million exploration budget. • Data compilation work (complete in October), airborne

  28. Slide 28: The Way Forward

    THE WAY FORWARD Project Location Commodity Interest Comment Pikoo Saskatchewan Diamonds ~85% 2016 till sample results; 2017 drilling; Qilalugaq Nunavut Diamonds ~82% 2017 – delineation drilling; 2017-2018 – bulk sample leading to PEA Lac de Gras NWT Diamonds 45% Airborne geophysical survey; target g

  29. Slide 29: TSXV: NAR

    TSXV: NAR Ken Armstrong President & CEO Nick Thomas Community and Investor Relations Manager Suite 960-789 West Pender Street Vancouver, BC Canada V6C 1H2 Tel: +1.604.668.8354 Fax: +1.604.336.4813 info@northarrowminerals.com @narminerals northarrowminerals www.northarrowminerals.com

North Arrow Minerals — Corporate Update (November 2016) on 6ix