Slide 1: Bomboré Gold Project Detailed Feasibility Study
Bomboré Gold Project Detailed Feasibility Study July 2018 All figures in US Dollars on 100% project basis
Slide 2: Forward Looking Statement
Forward Looking Statement This Presentation may contain “forward-looking information” which may include, but is not limited to, statements with respect to: political conditions and government regulations in foreign countries; timing of the receipt of governmental approvals and/or acceptances; target
Slide 3: Investment Highlights
Investment Highlights • Burkina Faso is an immerging mining jurisdiction Prolific Mining • 11 Mines constructed in last 10 years Jurisdiction • ~10 Moz of resources within 15km of Bombore • Experienced management team with proven track record Experienced in construction and operations Management Tea
Slide 4: Feasibility Study Technical Summary
Feasibility Study Technical Summary Simple Conventional Low Cost • Shallow, free-dig open pit truck and shovel mining operation • Simple processing circuit: • Single stage grinding ball mill • 7-stage carbon-in-leach (CIL) • Standard Zadra gold recovery circuit • Tailings stored in lined facility co
Slide 5: Feasibility Study Financial Highlights
Feasibility Study Financial Highlights The Bomboré Feasibility Study with simplified flow sheet provides robust project economics High Returns • Pre-Tax NPV5% of $315.3m, IRR of 59.4% , 1.3 year payback Short Payback Period • After-tax NPV5% of $224.5m, IRR of 42.6%, 1.7 year payback • LOM productio
Slide 6: Burkina Faso Gold Endowment – A Great Place to Build a Mine
Burkina Faso Gold Endowment – A Great Place to Build a Mine Past producer Gold Mine (2P+M&I+Produced) Niger Gold Deposit (2P+M&I) Essakane Inata 7.0 Moz Orezone Bomboré (M&I) 2.7 Moz An emerging district Karma Taparko/Bouroum 0 100 200 km 2.6 Moz 1.6 Moz Samira Hill Kalsaka Bissa/Bouly 2.5 Moz 1.0 M
Slide 7: Local Infrastructure – Key to Logistics and Development
Local Infrastructure – Key to Logistics and Development Access Road Orezone office Ouagadougou 85 Mogtedo Dam km Camp Po Bomboré Camp we r L in e 13 2K VA Bomboré Property Komadanisi Current Mine Plan 10 km Ouaga Office ➢ Located 85 km from the Capital City along a major highway ➢ Excellent infrastr
Slide 8: Bomboré Gold Resources (NI 43-101)
Bomboré Gold Resources (NI 43-101) Tonnes Grade Gold Content Category (millions) (Au g/t) (ounces) Jan 5, 2017 Resource Statement (constrained to a $1400 pit shell) Oxidized M&I +0.45 g/t 53.4 0.87 1,487,000 Oxidized Inferred +0.45 g/t 4.8 0.77 117,000 Sulphide M&I +0.50 g/t 71.0 0.97 2,208,000 Sulp
Slide 9: Study Focus – Free Dig Oxide Zone
Study Focus – Free Dig Oxide Zone Gold mineralization continues at depth into sulphides Siga South Deposit – Section 10600N Phase 1 – shallow oxide only pit – Average depth 45 m Phase 2 Sulphide Pit OPEN 9
Slide 10: Simplified Site Layout
Simplified Site Layout Low Grade Stockpile 10
Slide 11: Simplified Flow Sheet
Simplified Flow Sheet : OREZONE 11
Slide 12: 3-D Plant Layout
3-D Plant Layout Area for potential new tank Current Mine Plan 12
Slide 13: Low-cost, High-margin Oxide Gold Project: AISC of US$746/oz over 13-year mine life
Low-cost, High-margin Oxide Gold Project: AISC of US$746/oz over 13-year mine life 406koz at AISC of US$485/oz over the first 3 years of production 180,000 $1,400 160,000 155,373 $1,269 $1,200 140,000 $1,067 126,710 123,495 $1,050 $1,000 120,000 $863 $883 100,953 100,000 92,050 $778 $803 $800 $653 7
Slide 14: Production and Grade Profile
Production and Grade Profile 180.0 2.50 160.0 94.2% 93.9% 92.6% 92.5% 2.00 140.0 155.4 90.2% 120.0 126.7 88.5% 88.1% 123.5 87.2% 86.8% 85.1% 84.9% 81.4% 1.50 100.0 1.20 1.14 80.0 92.0 101.0 1.00 77.3 74.7 60.0 0.95 68.7 66.1 0.92 57.7 56.7 40.0 0.71 0.50 0.60 0.59 0.54 0.53 20.0 0.47 0.46 24.5 0.37
Slide 15: DFS Base Cost Economics
DFS Base Cost Economics 1 Base Case (100% Basis) Unit Years 1 to 3 LOM Material moved Mt 42.9 149.8 Waste moved Mt 25.2 93.8 Ore moved Mt 17.7 56.0 Strip ratio (waste:ore) 1.4 1.7 Total ore processed Mt 13.5 56.0 Annual ore processed Mt 4.5 4.5 Au grade g/t 1.00 0.64 Au recoveries % 93.1% 89.1% Annu
Slide 16: Initial Capital Costs
Initial Capital Costs Area Unit Project Total Construction Indirects US$M $ 13.2 Treatment Plant US$M $ 34.7 Reagent and Plant Services US$M $ 10.6 Infrastructure US$M $ 16.2 Mining (contract mining) US$M $ 1.1 EPCM Management US$M $ 11.6 Owners Project Costs (including RAP) US$M $ 45.8 Plant & Mine
Slide 17: Operating Cost Breakdown
Operating Cost Breakdown Department Unit LOM Average Mining (contract mining) US$/t $ 4.59 Processing US$/t $ 4.92 Site G&A US$/t $ 1.68 Total Operating Cost per Ore Tonne US$/t $ 11.19 Mining cost per tonne moved US$/t $ 1.72 (includes stockpile rehandling) Based on the following key inputs: LFO (D
Slide 18: Sensitivity Table
Sensitivity Table Base Case Gold Price ($/oz) 1,100 1,200 1,275 1,300 1,400 NPV After-Tax (5%) ($M) 127.0 181.8 224.5 231.0 287.0 IRR After-Tax 28.6% 36.5% 42.6% 43.5% 51.7% 18
Slide 19: Project Construction Schedule
Project Construction Schedule 2018- 2018- 2019- 2019- 2019- 2019- 2020- 2020- 2020- 2020- Task Name Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Resettlement Action Plan Mine Development Tailings Storage Facility (TSF) – Stage 1 Process Plant Detailed Engineering Procurement Construction Commissioning Process Plan
Slide 20: Enhancement Opportunities
Enhancement Opportunities Enhancement Opportunities Could Significantly Improve Bomboré’s Already Robust Economics • Increase processing capacity to 5.2M tpa from 4.5M tpa – increasing annual Additional CIL Tank gold production • Reduce the need for low-grade stockpiling and re-handle • Reduction of
Slide 21: Addition of one CIL tank will enhance pro-forma annual gold production
Addition of one CIL tank will enhance pro-forma annual gold production Potential to Add Significant Gold Production Between 6,000 and 32,000 oz/year • Additional resources from restricted zones (~12,800 oz/year) • Milling of high grade sulphides (~31,000 oz/year) • Processing of low grade stock pile
Slide 22: TSF Capex Reduction
TSF Capex Reduction Green outline shows potential extended footprint Limits of Currently Planned TSF 22
Slide 23: Resources in Restricted Zones
Resources in Restricted Zones • Currently, significant M&I drilled off oxide resources are within “Restricted Zones” per circled areas • Discussions have been held with relevant authorities on plan to re- activate these areas for mining • Plans accepted and approved, and permitting now in process. •
Slide 24: 2018 Regional Oxide Exploration Highlights
2018 Regional Oxide Exploration Highlights Historical result: 4 m @ 4.0 gpt 2018 result: 3 m @ 7.1 gpt KT Target 4 m @ 4.0 gpt KT 3 m @ 7.1 gpt 6 m @ 2.0 gpt 7 m @ 1.6 gpt 10 m @ 12.9 gpt P13 Target 9 m @ 1.3 gpt 5 m @ 1.2 gpt 14 m @ 0.8 gpt 7 m @ 1.6 gpt 7 m @ 1.6 gpt 4 m @ 3.7 gpt P17N Target 1 m
Slide 25: 2018 Regional Sulphide Exploration Highlights
2018 Regional Sulphide Exploration Highlights 2018 result: 3 m @ 7.1 gpt KT P17S – NE Extension (500 m strike, open to P17S Down-dip the North) Extension 10.0 m @ 1.7 gpt 7.1 m @ 1.5 gpt 7.0 m @1.5 gpt 7.0 m @ 2.1 gpt 15.4 m @ 1.0 gpt 7.25 m @ 5.0 gpt 5.0 m @ 2.2 gpt 6.95 m @ 2.7 gpt 6.0 m @ 3.0 gpt
Slide 26: P17S Mineralization Trend
P17S MINERALIZATION TREND Current Resource Pit N Shells Untested Gap Plan View 200 m 2018 Core Drill Collar Longitudinal View (Looking N270) 26
Slide 27: High-Grade Ore Shoot Definition Program
High-Grade Ore Shoot Definition Program Maga North Target Area 2m @ 10.3 gpt • HG oxide and shallow 3m @ 15.1 gpt sulfide targets 4m @ 7.9gpt • 4 target areas • 12,171 m RC 5m @ 4.2 gpt • 3,756 m core drilling – ongoing results pending • Q2’18 programs Maga Hill Area 2.5 m @ 16.2 gpt 3m @ 7.3 gpt 5m
Slide 28: High Grade Chutes into deeper Sulphides
High Grade Chutes into deeper Sulphides Siga West Pit Shell P11 Pit Shell Siga East Pit Shell 500 m Isometric view (looking N250) of the Siga E-P11 current resource pit shells and folded granodiorite unit. The hypothesis of moderate to shallow fold hinges and sub-parallel high- grade gold mineralize
Slide 29: Next Steps
Next Steps ❖ Complete review of tailings and plant optimization work and release when complete. ❖ Commence Phase 1 Resettlement Action Plan in H2 2018 – tender contract currently out for bids. ❖ Finalize model for high grade zones and update resources which will include resources in the “Restricted
Slide 30: Capital Structure
Capital Structure Capital Structure (as of July 6, 2018) - ORE.TSXV Shares Issued 210.4 M Shares Fully Diluted 223.7 M Cash (no debt) C$51.0 M Market Cap C$170 M Key Shareholders Management and Directors 4.51% Strategic Shareholders: Resource Capital Funds VII L.P. 19.99% Coris Capital S.A. 1.78% 30
Slide 31: Experienced Team
Experienced Team Management Years Experience Patrick Downey, P.Eng President & CEO, Director 35 Peter Tam CPA CFO 25 Pascal Marquis Ph.D., Geo SVP Exploration (Previously Agnico) 30 Tim Miller Chem, MBA COO (Previously Goldcorp, Glamis) 30 Joe McCoy MBA VP Administration & Corporate Secretary 35 Lou
Slide 32: Contact
Tel: 1-613-241-3699 / Toll Free: 1-888-673-0663 info@orezone.com / www.orezone.com 32