Search Minerals Inc. · TSXV:SMY
Search Minerals — Investor Presentation (March 2016)
28 slides from Search Minerals's investor presentation, March 2016
Slide 1: Development of World Class Critical Rare Earth Element District
of World Class Critical Rare Earth Element District } o> SEARCH —« ee sew 00 ne rapes MINERALS —" = Rare Earth Elements March 2016 S = LABRADOR — SMY: TSX-V
Slide 2: Forward-looking statements and cautionary note
The following presentation may include certain “forward-looking statements” within the meaning of the United States Private Litigation Reform Act of 1995 and applicable Canadian Securities Laws. All statements other than statements of historical fact, included in the presentation, including without
Slide 3: World Class 100% owned Port Hope Simpson Critical Rare Earth Element District
• World Class – 100% owned Port Hope Simpson Critical Rare Earth Element District Labrador, Canada (All dollars are $CDN) • Robust Preliminary Economic Assessment report • Low Initial Capital Cost $ 152M (including $ 33M contingency) • Scalable Processing Facility – initial production 1,000 tonnes p
Slide 4: Design and Build Larger-Scale Demonstration Plant
Design and Build Larger-Scale Demonstration Plant • Further test Foxtrot Project mineralization – commenced November 2015: target completion September 2016 • Produce mixed REO product for testing by end-users and REE refineries • Scale-up new metallurgical process toward commercialization. Engage En
Slide 5: Low cost to Bankable Feasibility and Construction Decision
2016 2017 2018 2019 Continued Partner Development – Joint Venture, Off-take, Equity investment Updated Preliminary Economic Assessment Report - Feb 2016 Completed Metallurgy Pilot Plant testing - Start Nov 2015, complete September 2016 Permitting - Environmental Impact Statement Low cost to Bankable
Slide 6: All parties work together to maximize production and sales
Search Minerals All parties work together to maximize production and sales cycle Strategic / Joint Venture Partner Off-take Partner • Search Minerals – continues to develop District and manage processing facility and open pit operations • Strategic Partner / Joint Venture Partner – finance the Banka
Slide 7: Rare Earth Elements: Critical for the 21st Century
Rare Earth Elements: Critical for the 21st Century Green Energy The Toyota Prius is estimated to contain: • Hybrid and Electric Vehicles 1 kg Neodymium Metal • Wind Energy 15 kg Lanthanum Metal • Energy Efficient Lighting 0.1 kg Dysprosium Metal Sales are greater than 1 million units per annum Milit
Slide 8: Criticality assessment: importance to clean energy and supply risk
• Criticality assessment was framed in two dimensions: importance to clean energy and supply risk • 5 REEs have been identified as the most critical, including Dy, Nd, Tb, Eu and Y • These five REEs are used in magnets for wind turbines and electric vehicles or phosphors in energy- efficient lightin
Slide 9: Foxtrot Economics
FOXTROT ECONOMICS SMY: TSX-V
Slide 10: Operating Metrics ($CDN)
Operating Metrics ($CDN) Plant Capacity 1,000 tpd production rate Method / Schedule / LOM 14 years - Initial 8-year open pit followed by 6 years of underground mining – to be funded by operating cash flow LOM Production LOM production of 44,129 tonnes of TREO, or 3,300 tpa at peak production Feed Gr
Slide 11: Foxtrot Resource and District Potential
FOXTROT RESOURCE and DISTRICT POTENTIAL SMY: TSX-V
Slide 12: SMY: TSX-V
12 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | March 2016 SMY: TSX-V
Slide 13: SMY: TSX-V
13 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | March 2016 SMY: TSX-V
Slide 14: Foxtrot Mineral Resource (December 31, 2015)
FOXTROT MINERAL RESOURCE (December 31, 2015 – Open Pit – $NSR cut-off $ 165, Underground $NSR - $260) Cut-off TONNAGE Dy Dy2O3 Nd Nd2O3 Pr Pr6O11 LREE LREO HREE HREO TREE TRE0 CLASSIFICATION $ NSR (TONNES) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) % % % % % % OPEN PIT INDICATED $ 165 4,129,000 177 203 1,3
Slide 15: SMY: TSX-V
15 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | March 2016 SMY: TSX-V
Slide 16: Deepwater Fox 2015 Channel Program
• 2015 Channel Program Completed • Similar (vs FOXTROT) Surface Strike Length & Greater Width (up to 30m) • Greater than 15% Higher Assays (vs FOXTROT) in Mineralized Zones • Second Major Discovery in the Fox Harbour Belt • Additional Source For Processing Facility • 12 Km From FOXTROT • 2 Km From S
Slide 17: Deepwater Fox assays versus Foxtrot
Assays Quantity Dy Nd Pr (M tonnes) (ppm) (ppm) (ppm) FOXTROT Indicated 7,392 191 1,485 397 Inferred 1,938 198 1,576 423 DEEPWATER FOX Channel 14-01 5.96 metres 286 2,156 567 Channel 15-07 9.29 metres 270 1,911 504 Channel 15-06 10.17 metres 260 2,049 525 Channel 15-11 11.40 metres 253 1,732 461 Cha
Slide 18: Breakthrough Metallurgy
BREAKTHROUGH METALLURGY SMY: TSX-V
Slide 19: Acid Bake Discharge from Kiln
Acid Bake Discharge from Kiln 19 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | March 2016 SMY: TSX-V
Slide 20: Process flow: crush, acid bake, leach, precipitate
• Foxtrot Rare Earth mineralization is coarse crushed (6 mesh, 3.45 mm) • Rare earth minerals are treated with relatively small amounts of sulphuric acid at 200 C (low temperature) to render the rare earth elements water soluble. • After water leaching, the rare earth solution is purified by neutral
Slide 21: Old versus new process benefits
OLD NEW BENEFIT Rock Crush and Grind to .105mm Crush to 3.45mm Save grinding cost and process Treatment Upgrading Use flotation, gravity and None Save beneficiation cost and Process magnetic separation process. Flotation, gravity and magnetic separation not required Primary Acid Bake, Water Leach, A
Slide 22: Mixed rare earth oxide product
Rare Earth Oxide Rare Earth Oxide % • Very high purity product La2O3 14.1 38.6 • 98.9% REO+Y CeO2 Pr6O11 4.68 • S=<0.01%, F=<0.01% Nd2O3 18.0 • Th = 2 g/t. U = 97 g/t Sm2O3 3.10 • Key impurities: 93 g/t Si, 0.15% Eu2O3 0.17 2.46 Ca, 44 g/t P, 465 g/t Mn, 34 g/t Gd2O3 Tb4O7 0.40 Cr, 23 g/t Sr, 56 g/t
Slide 23: New process developed and pilot plant next steps
• New Process Developed – Simpler (no grinding, no flotation, no magnetic or gravity separation, whole ore extraction) – Maintain high overall recovery to final mixed REO – Lower reagent use (Acid, MgCO3, Oxalic Acid) – High quality Mixed REO Produced – Dry inert – stackable residue – potentially pl
Slide 24: Breakthrough in simplicity, cost and efficiency; patent
• Search believes that the new process represents a breakthrough in simplicity, cost and efficiency. • Search has sought protection for the process by applying for a patent through the US Patent office. Search will seek protection for the process in additional countries through the Patent Cooperatio
Slide 25: The Company
Development of World Class Critical Rare Earth Element District THE COMPANY S SMY: TSX-V
Slide 26: Search Minerals Inc.
Ticker TSX-V: SMY Shares Outstanding O/S 132,491,188 Warrants 46,645,334 Search Minerals Inc. Options 10,120,000 Head office – North Vancouver Fully Diluted Shares O/S 189,256,522 Market Cap $7.949 million As at March 1, 2016 Rare Earth Element Projects Labrador Canada Flagship Foxtrot Project Red W
Slide 27: Management and Directors
MANAGEMENT DIRECTORS Greg Andrews, President & CEO Jim Clucas, Executive Chairman, Director B. Commerce, Finance from University of Calgary . He has extensive Former CFO of Inco Canada, and founder of International Nickel experience with strategic planning, budgeting, implementation, and Ventures In
Slide 28: Contact
CONTACT Greg Andrews, President & CEO gregandrews@searchminerals.ca Tel: 604.998.3432 — Ext 2 eE~ SEARCH we MINERALS S SMY: TSX-V