Aranjin Resources: An Exciting Year for Copper

0:08 Hello, everyone, and welcome to Arangent Resources Live Summit today, hosted by 6. I'm pleased to introduce the President and CEO, Ali Haji. Ali is going to take us through a company update and then we will be accepting questions live. So as a reminder, you can submit questions at any time using the Q&A panel on the right-hand side of the screen. We'll try to get to as many as possible after the presentation is over. And As always, this is being recorded and available to watch afterwards on SIX.com. But without any further ado, I'll pass it over to you, Wally, to kick it off. Thank you, Dasha, and thank you for everybody that's taken the time to dial in today. So we're planning, as Dasha said, to give you an update on the company, give those of you that are familiar with it an overall update, but those that are new to the story, of course, a sort of soup to nuts overview of the company.

0:54 Orangin Resources, we're in Mongolia, it's the home of Big Copper. For those of you that are familiar with Rio Tinto, and of course, the Oly Tolgoi project in Mongolia, We believe there's a lot of promise and hopefully we cover that here today during the presentation. So we're an emerging copper explorer. We've been in sort of in Mongolia for copper, particularly for about 3 years now. We've been in Mongolia as a group for a number of years, close to 13, having a coal exit back in 2012, producing gold mine currently by the name of Stepgold, and then Ion Energy, which is a brine explorer in Mongolia as well. As far as Ranjan is concerned, management and board control over 50% of the shares outstanding. And we currently own 2 projects. One is Sharga, which we'll cover in a bit more detail in Gobi Altai, and then Bayon Under in Bayon Honglor. We do in fact have an interest in the Victory deposit at Bava Ayl and we'll cover that as well. So we've done some work at Sharga and we'll cover that in the coming slides, but we released those results back in 2021, December 21, at a time where of course copper is not having the run that it currently is.

2:05 So the company I mentioned, we've been around about 2 or 3 years now. We started drilling at Sharga shortly after we acquired in May 21. We then announced our results in December 21, which for the most part were extremely encouraging, but have of course not generated as much traction as perhaps you would in this market. We entered into a JV with Ion Energy with respect to victory. And that's sort of where the story ends with respect to our current status or what we have accomplished given our current cash position. So we've been in Mongolia a long time, we've covered that already of the 2 projects that we currently have, both Sharjah and Bayanunder, rather encouraging results. We'll get on to more detail with respect to that. We do know that Mongolia does border China and the 1 Belt 1 Road initiative that the Chinese are pushing forward with and the reopening of the country, of course, means that there will be enough demand for any sort of copper gold that is produced from these projects.

3:02 And we're already seeing the likes of Oyutogoy, the Rio Tinto project, ship their concentrate over to the Chinese for processing. We've seen a fair bit of support from the government of Mongolia, unequivocal support, I should say, with respect to everything that we've been doing in country. And we see Mongolia as a highly undiscovered, underexplored jurisdiction in which there's a lot of potential yet to be unearthed, unintended. The team consists of myself as chief executive, Matthew Wood, my chairman. He was the, or is the chairman of Ion Energy, Step Gold. He was also a founder of Avanco Resources in Brazil that ultimately sold Oz Minerals, so an individual that understands copper rather well, having had a couple of copper exits around the world. A serial mining entrepreneur that ultimately had his larger of the exits when he sold bamboo, or rather Hunu coal to Bamboo of Thailand back in 2012.

3:56 Solongo Gusundurj is one of our 2 Mongolian directors. She runs a family office out of Ulaanbaatar, a wealth of knowledge with respect to government relations as well as the overall operating in country. Jeremy South, our CFO, an individual that has led Deloitte's M&A activities in Asia for a number of years. A very very knowledgeable individual in terms of the region and he continues to add value to the organization. But a tumor or is the CEO of Step Gold. Of course a gold producer that went from essentially IPO to production in under 2 years. So having an individual of that caliber alongside us is rather promising. And then Luis Azevedo, he is the current CEO of Bravo Mining, but also between him and Matt, they built a bank of resources in Brazil. So again, another wealth of corporate experience between the 2 of those individuals there. And then Maxian currently lives in New York. He leads R&R Ventures, which is a family office that is made up of Ronald Lauder, so of the Estellauder family, and Richard Parsons, or Dick Parsons, the ex-chairman of Time Warner and Citigroup.

5:08 They're, of course, not a mining shop by any means, but they saw value in the team and our vision, and this is one of their 2 mining investments anywhere in the world. Our capital structure today, about 270 million shares outstanding, so it is a rather dilutive sort of share structure today currently, and that's recognized. A range in resources, used to be a diamond company by the name of 5 Star Diamonds in Brazil, that then pivoted on the back of the fall in diamond demand to then focus on copper, a commodity that we see value in, in a jurisdiction in which we have a significant amount of experience. The vast number of shares outstanding today, you know, of course, having pivoted from 1 commodity to the next and including asset acquisitions and shares for services. That's how that got rather bloated. We're trading today at about 3 cents a share, so about a market cap of 8 million Canadian market cap. And we'll talk about why that's rather small relative to the amount of money we've spent on the projects that we have acquired or currently are planning to explore.

6:14 The goal for the company, for those that have been following our story, of course, would be to raise equity. So we are raising equity. This is an update, but also 1 that states, you know, we are looking to raise capital for the various exploration programs that we plan on undertaking this year, which we will cover in due course. And at the same time, we will be looking at concurrently pulling back the cap table so that it is a more respectable, you know, anywhere between 45 and 60 million shares outstanding, something that you would expect from TSX Venture Company. The Sharga project in the western part of the country is about 9,000 hectares. It's only about 20 kilometers from the major paved highway into the Chinese border, and it's the very same highway that Ory Tolgoy uses to ship their concentrate for processing in China. So From an infrastructure perspective, very close to the necessary infrastructure for us to progress, the prior exploration that we had done on the project, about 222 meters, a few core chip samples, and some line kilometers of ground magnetics, showed us promise. And we'll cover those results in just a second here. But based on what we saw there, we believe Sharjah has the potential to become a mine. There is a bit of work left to be done on it, which, of course, will be doing after we have completed the capital raise.

7:29 So That's where we're located relative to Ulaanbaatar, which is the capital, Bayan-Undur, our other project is listed there. A fair bit of early work done on the asset that has shown promise as indicated. And some of the core sort of values there that I think our viewers would be interested in is 15.4 meters of 1%, 1.3% copper and almost a gram per ton gold only on 2,200 meters drilled there. It's a VMS style deposit, so massive sulfides with mineralization about 100 meters in width. We were excited when we saw these results, and then we took it a step further and drilled an additional 2,200 meters on that asset. We've done a fair bit more, including some geophysics. And you can see here that the grades are rather promising. And we're seeing 1.9 meters of 2.25 copper, the 15.4 we've addressed already. And of course, a lot more information is available on our website for our readers to review.

8:26 Our upcoming exploration programs on Sharga include 904 line kilometers of mag. We're going to do a geo mapping survey as well as diamond drilling. So about 12,000 meters worth of diamond drilling planned on this asset. For those that follow us and anything that we're doing in Mongolia, the cost of drilling in Mongolia is very competitive. So with the capital raised and a cost of about $100 US per meter, including assaying, we can do significant damage with very little capital. Some of the images there in terms of what we've seen in cross sections across the assets and some of our targets identified with respect to where we will be drilling. And then we lead into a Victory. So I mentioned that very early on in the presentation. Victory is a deposit that was founded by the Arangin team or discovered by the Arangin team at Bavaio which is a license held by Ion Energy.

9:23 Between Aranjin and Ion, we entered a reciprocal mining rights agreement that gives Aranjin 80% of all interest on base metals. Given the gabroic nature of this discovery, and its sort of 2.5 by 2 kilometers scale. Alongside the technical expertise and in-country expertise for both organizations, we believe it's the best course forward to build that JV, or reciprocal mining rights agreement, allowing us to unearth the value at Bava Yule, but also monetize base metals and increase acreage across the entire country. So some of the results there of interest across the asset about 2150 nickel, 677 copper, early rock chip samples. We've done over 800 auger holes on this discovery that's showing rather promising future.

10:12 And part of that capital raise that I discussed earlier will be used to drill this in detail as well. That drilling and exploration program is currently being defined by the company. So more images there. It's about 814 holes as mentioned. You know, 25 copper-nickel anomalies across the entire province there or the entire asset. Extremely promising with respect to it becoming a new copper-nickel province for not only Mongolia but of course importantly Aranjin as well. A bit more imagery there, and there you have a map that shows you the proximity of Ulaanbaatar to the Victory deposit. And Victory lies about 30 kilometers from the Chinese border as well, so very close to the largest consumer of vastly any or essentially any material today.

11:01 The third asset that we currently hold is Bayan Under. Bayan Under is located in Bayan Hongur province, sort of in the southwest of the country. It's 4 adjacent mining licenses totaling about 2,700 hectares. There's a mining license on these licenses, So they have been issued a 30-year mining license, and I believe there's about 27 years left there. It lies on the same sort of trend that you expect to see Oyotolgoy, Khamatay, which is held by Xanadu Mining, as well as OT, which is Rio Tinto. So we're on that same trend. We're seeing a lot of value there. And the asset has had over $10 million worth of US exploration done on it, about 57,000 meters drilled on it, and a fair bit of RC as well. And some of the key results there, I think, you can see on the chart there. But let's talk about one of perhaps significance at CD 29 CD. We see 181 meter depth with an intercept an 80 meter core length with grades of 3.3 copper and about 10.1 grams silver. So you know highly highly rich holes that have shown promise and of course the goal of the company will be to do an additional hole that intersects the previous holes that have been drilled on this asset to get a better sense of potential resource on the asset.

12:16 And we know based on, if you look at companies such as Filo Mining, for instance, at Sharga, we see it as an asset that could become a mine. And with Filo, you know, 1 hole can convert that quite quickly. And so the company is quite keen to raise capital and deploy the right team to better explore and de-risk our assets. Once that's done, of course, we'll start to put out results very quickly thereafter. For instance, with Sharga, we started drilling in Q2 and by Q4, we had significant results released to market. As I mentioned, Mongolia is a jurisdiction that we believe is open for business at all levels. And we're keen to get going on this capital, raising a very rich corporate environment and economy to help de-risk what we believe to be a significant finding. So nice and brief as we reintroduce our story to our new and existing shareholders.

13:10 And I'll open up to questions at this point, Dasha. Great, Thank you so much, Ali. We're going to move on to Q&A. So if you do have any questions, feel free to submit them now. You mentioned that the Aranjin team is getting ready to go out and raise money. What should investors be looking out for in terms of timing and opportunity in the coming weeks? Absolutely. I think, you know, as I mentioned at the onset of this conversation, Oranje had sort of gone quiet around 2021. At the end of 2021, Copper had taken a bit of a lull and now Copper is making a comeback. The company is very much held in the hands of management and insiders and has been trading as a private company. So pretty much trades on demand in very much a shell fashion. We're now retelling our story on the back of copper, seeing it's day in the sun.

14:00 We're reiterating and restating all the good work that we've done and all the discoveries that we've made. We're of course engaging with shareholders, both new and existing alike in situations such as this. And the goal for us would be to have that on-market buying come on in, start to walk up the price based on actual value and what the company has accomplished, and then we will do a capital raise, hopefully announce something in and around the end of March, end of February, early March. We're currently building the book to generate sufficient interest and we'd have that closed off hopefully by the middle of March allowing us to turn drills as quickly as the end of March. Got it. Thank you. Yeah you've talked about a lot of exciting things that are in store for a Ranjin. Realistically, what are potential exploration challenges that you might encounter along the way and how are you preparing for them?

14:52 In terms of exploration challenges, I would expect that given that there are a number of organizations that are currently drilling in-country, We have a fantastic relationship with our drillers in country and perhaps demand for the necessary equipment may become a little limiting. But beyond that I don't see too much of a challenge with respect to getting the drills turning as I said at the end of March. We have a question here from Brittany. With China reopening and Arrangen's project strategically located next door, are you going to be focused on China and potential future partnerships? Well, I think, you know, in terms of refining or even consumption, the Chinese machine is one that is of course at the top of any list globally.

15:37 So China reopening is fantastic. I think we're gonna start to see a number of demand indicators with respect to battery metals or otherwise start to increase in that region. You know I'd like to draw on the comparison of perhaps Canada or the US. We were locked down for a period of time and as soon as the shackles came off so to speak we were on a spending spree. And we've seen that it's evident in GDP growth. We've seen that with house prices and everything else. But now that's sort of subsiding, not to say that that's where China's heading, but I think 3 years of being locked up, there's a big yearning to spend and to consume. And we're gonna start to see that sort of come into fruition very quickly. The Chinese, of course, currently acquire the vast majority of mineral resources that are found in Mongolia.

16:25 But let's not forget that the Koreans, Samsung, for instance, has the longest standing offtake agreement anywhere in the world. So they've been in an offtake agreement with the Mongolians for about 40 years for copper. So it's a jurisdiction that can sell to any one of those regions. And I think having China on your doorstep of course is a huge advantage. Right. And where do you think the future of the copper opportunity lays as you develop your company's value proposition. I think copper is you know it's required for a number of different things. It's sort of it's not the best conductor of electricity but you can't use gold as an alternative because that's far too expensive. We're seeing its use in electric vehicles really increase its demand. We're also seeing a sort of a housing boom in some areas that require copper for wiring and et cetera. So I think we're gonna start to see copper really have a run here, the likes of Mark Bristow, the CEO of Barrick, has said time and time again, or last year, he said that copper is an extremely important part of his business. And I believe this year he said copper is as important as gold to his business. So we're not seeing copper slow down anytime soon, and it's going to continue to run.

17:33 Great. Another question here. Can you tell us more about the growing global confidence in investing and working in Mongolia? Yeah. Yeah. I mean, you know, Mongolia 13 years ago would have, It came into some negative press when Oyutolgoy was being started. And that was, of course, started by Robert Friedland and Ivanhoe Mines. And that negative press has abated to some degree, but I think it's still a jurisdiction that's deemed rather exotic by the various investor base in North America, but that's now changing. Oy Tolgoy, which is Rio Tinto, had a majority of the work, a significant number of their JV shares with Turquoise Hill here in Canada. Rio Tinto very recently got approval and has concluded the transaction of acquiring Turquoise Hill shares.

18:21 And so they've essentially doubled down to the tune of close to $8 billion being invested in Mongolia. So that deviated significantly. And then you have a company that I mentioned earlier in one of my slides, and that's Xanadu mining. Zijin of China has committed close to $46 million in that remit as well. So we're seeing a fair bit of investment in Mongolia. The Japanese, through Mitsubishi, currently build and operate the major airports in Ulaanbaatar. There's a fair bit of interest in country and I think that's going to continue to accelerate now that we have a government that is very transparent, is comprised primarily of the younger generation, if you will, as opposed to the folks that were around when Mongolia separated from the USSR.

19:06 And time and time again, we've had nothing but reassurance from not only the government, but I think the global mining industry is telling us that Mongolia is in fact a safe jurisdiction to do business. Great, thank you. And can you just speak to why Orangin and Ion decided to enter into a JV agreement last year and how is that good for Orangin? Of course, so it's great for, We decided to enter into it in the first place because with Ion Energy and one of their assets, they did an exploration program on an asset called Babayol and they found some very strong copper nickel anomalies. As I mentioned, Arangin was very much trading as a private company. And so it was one that was is still very highly controlled by management insiders. But we saw an overlap there for a range into increase the acreage for allowing us to explore additional parts of the country. And on the flip side you know we've offered eye on the opportunity to explore our licenses to look for lithium on our licenses whereby they would potentially be able to monetize any lithium found on our licenses. And for Arangent, that's important because we now have additional acreage. We've seen the victory deposit. And for both companies, I think in terms of the synergies of operating in country, reducing overheads so that we're not, you know, as a junior miner, you have to be very conscious of how much you're spending and what your team and board consist of. So bringing them together, looking at both lithium and copper as battery metals, just made sense. And I think we'll continue

20:37 down that path until such time that we see a change is required. But we're extremely pleased with the relationship currently. Great. Well, thank you so much, Ali, for taking us through the presentation. And thank you to everyone who joined. I don't see any questions in the chat now. But if you do think of any other questions, feel free to reach out directly. Ali's contact is on the slide here. And you can also find more information on their website, aranjanresources.com. But with that, I think I'll close things up. Maybe pass it back to you, Ali, if you have any closing remarks. Yeah, no, I think I'm just gonna say thank you again for everybody that dialed in. And now that we have the sufficient sort of market environment to press on with copper and having of course 2 excellent assets, 1 that we believe can quite easily become a mine and the other that is showing significant promise with its sheer scale, the Victory deposit.

21:28 The company is keen to raise Capital and get the drills turning. So we appreciate your support. Stay tuned for our story and we will be telling it far and wide.