Slide 1: More Business Than Mining
TSX-V More Business Than Mining MOX Corporate Update | March 2023 Donkin Headland
Slide 2: Disclaimer
Disclaimer The information in this presentation is provided as of July, 2022, for information purposes only, and may constitute "forward-looking information" as defined under applicable securities laws. All statements in this presentation other than statements of historical fact, including those tha
Slide 3: Corporate Snapshot (TSX-V: MOX)
Corporate Snapshot (TSX-V: MOX) Capital Structure Ownership Summary Basic shares outstanding 50.7 mln Cline Group HNW Retail Options 3.5 mln 12% 14% Warrants nil Morien Mgmt Family & Directors Offices Fully diluted shares outstanding 54.3 mln 16% 8% 28% APAC 4% Resources Share price $0.60 52-week hi
Slide 4: Leadership
Leadership John P.A. Budreski Dawson C. Brisco Susanne H. Willett Mary C. Ritchie John P. Byrne Charles G. Pitcher Executive Chairman Director, President, CEO Chief Financial Officer Director Director Director Capital Markets and Professional geologist Qualified CPA, CA FCPA, CPA, extensive Investme
Slide 5: Why We Are Different
Why We Are Different Shareholder Alignment Share buy backs; dividends; low corporate overheads; no debt High Demand Sectors Bulk commodities; steelmaking coal and aggregate (high demand, limited supply) Long-Life Assets 20+ years (Donkin Mine); 50+ years (Black Point project) Highly Experienced Oper
Slide 6: Business Discipline
Business Discipline Insider Ownership Corporate Overheads Shares Outstanding % Ownership (Mgmt & Dir) Millions Millions 18% $1.20 60 16% -17% $1.00 50 14% 12% +3x $0.80 40 10% -42% $0.60 30 8% 6% $0.40 20 4% $0.20 10 2% 0% $0.00 0 2015 2022 2015 2022 2015 2022 6
Slide 7: Among Lowest Share Count Versus Royalty Peers
Vo x (000,000) 100 120 140 160 180 > 200 0 20 40 60 80 Al R tiu oya s M M l ty et in al er La MMo o la al s br ad rirei e R nn oy or RR a Iro eess lty n o o O uurrcc re ee Ro s Ro y al y ty St al G ar o Ro l d Si y ti o alt ie Sa Roy s il f al ti e N is h s ic R ke oy l2 al El t ec 8 C y tri ap c U
Slide 8: Bulk Commodity Royalty Assets
Bulk Commodity Royalty Assets Donkin Steelmaking Coal Mine (Producing) Production Royalty with The Cline Group (25+ years) Black Point Aggregate Project (Permitted) Production Royalty with Vulcan Materials (50+ years) 8
Slide 9: The Donkin Mine
The Donkin Mine Operator: The Cline Group Capital Spent: >$300 mln Mine Life: 25+ years Mine Type: Underground Product: Steelmaking coal MOX Royalty: 2% to 4% Employees: 130 Mine to Port: 30 kilometres 9
Slide 10: Donkin Mine Recent Events
Donkin Mine Recent Events Q2-2022 Q3-2022 Q4-2022 Q1-2023 Cline submits NS gov’t approves Operations Operation ramping proposal to Mining Permit & & commercial up, ~130 employees reopen Mine operations resume sales commence on site
Slide 11: The Cline Group
W ill i a Bu Su m s ll M ga on ou r C 16.6 nt a ai m p ns 13.2 N o. Hi 1 13.0 Sa l ls n b Ju o ro an 12.2 N o. 1 11.3 Su Ca M fc st le ac o o 11.3 Va u p lle in y 10.7 No M i n .3 9.2 e Ne N o w .1 The Cline Group Fu 8.4 tu W re 8.4 es t De Elk 8.4 The Cline Group Be ser av ad er o 8.4 Sk V al yli l
Slide 12: Donkin's Exceptional Infrastructure Advantage
Donkin’s Exceptional Infrastructure Advantage DEEPWATER HARBOUR DONKIN MINE SITE MINED-OUT AREA 1863-2001: 258 mln tonnes coal mined Ongoing $4.5 mln program from Canadian Over $250 million invested by The Cline Coast Guard to allow Capesize vessel entry. Group into the mine since 2015. PEV COAL EXP
Slide 13: Coal Export Terminal - Sydney, Nova Scotia
Coal Export Terminal - Sydney, Nova Scotia WORLD-CLASS PORT WITH WORLD-CLASS ACCESS Short, 30-kilometre truck haul from Donkin mine to Sydney port Completion of $4.5 mln Canadian Coast Guard project to upgrade Harbour infrastructure to support larger Capesize vessels Coal Terminal recently acquired
Slide 14: Global Trade of Steelmaking Coal (2022)
Global Trade of Steelmaking Coal (2022) 328 mln tonnes 9.1% (vs. 2021) 1) Wood MacKenzie, August 2021. Semi-Soft Metallurgical Coal Market Overview and Donkin Assessment. 2) Map data source: Coal Mint, January 2023 14
Slide 15: Global Demand for Seaborne Steelmaking Coal
Global Demand for Seaborne Steelmaking Coal Seaborne Steelmaking Coal Demand Growth by Decade (million tonnes) 6 394 20% growth 60 387 over 20-year period 328 2021 2030 2040 Source: McCloskey 15
Slide 16: Morien - Top Performing Royalty Company
Morien - Top Performing Royalty Company Share Price Performance of 24 Mining Royalty Companies Listed in Canada Feb 2022 to Feb 2023 250% 200% Morien Resources + 165% 150% 100% 50% 24 x TSX & TSX-V Mining Royalty Co’s + 40% 0% -50% - 50% -100% Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22
Slide 17: Hope (vs. Analytics)
Hope (vs. Analytics) Advanced Target Continuity at Depth Experienced Management Team World Class District Prospective Land Position Tier 1 Di stri ct Resource Expansion Simple Metallurgy igh-Grade Surface Resu Assays Pending Exploration U pside Untested Target Open at Depth Supportive Jurisdiction L
Slide 18: Analytics (vs. Hope)
Analytics (vs. Hope) Investor’s Investor’s Description Reality Perceptions Perception Punitive Donkin Implied investor discount rate applied on 30% IRR Industry norm: 8% to 12% Discount Rate future Donkin cashflows Discounted Coal Investor inferred coal price required on Current prices: C$400/t (met
Slide 19: Top Line Royalty Tied to Coal Prices
Top Line Royalty Tied to Coal Prices ANNUAL ROYALTY AT 3 MLN TONNES SALEABLE PRODUCTION4 $35 COAL PRICE $31 ANNUAL ROYALTY ($CAD MILLIONS) $30 C$100/tonne ANNUAL ROYALTY ($CAD MILLIONS) C$200/tonne $25 C$300/tonne $23 C$400/tonne $20 $15 $15 $10 $7 $5 $0 3.0 ANNUAL ANNUALSALEABLE SALEABLE PRODUCTION
Slide 20: Delivering Dividends
Delivering Dividends Unique Dividend Calculator on § Reinstated quarterly dividend Morien Website5 program in advance of receiving first royalty cheque § Declared a special dividend of $0.005/share payable in December 2022 § Quarterly dividend of $0.0025/share commencing in Q1-2023 § Designed to sca
Slide 21: Morien is More Business Than Mining
Morien is More Business Than Mining 1. Cash-In, Cash-Out business model designed to reward shareholders 2. Re-Rate Potential is substantial as Donkin scales up production 3. Delivering Dividends as a high percentage of free cash flow 4. Insider Buying has been consistent each year 5. Buying Back Sha
Slide 22: TSX-V: MOX
TSX-V: MOX www.MorienRes.com info@morienres.com 1701 Hollis St, Suite 800 Halifax, Nova Scotia Canada, B3J 3M8 Tel: 902-466-7255 John P. A. Budreski Dawson C. Brisco Susanne H. Willett Executive Chairman President & CEO CFO dbrisco@morienres.com