Aranjins Victory Lap for Fall 2022

0:07 Hello, everyone, and welcome to Orangian Resources' live investment summit today, hosted by 6. I'm pleased to introduce the president and CEO of the company, Ali Haji. He's joining us today to provide us an update on the company's most recent news and an outlook for the rest of 2022. After Ali's presentation, we're going to be accepting questions that you can ask using the Q&A tab on the right-hand side of your screen at any time. As always, today's summit is being recorded and it's going to be available in the coming days on SIX.com. Without further ado, Ali, I want to pass things over to you and get us started. Thank you, Cam, for that introduction and thank you for our listeners for dialing in today for this update. We're excited to share where we are as a company, where we're headed and, of course, what we've accomplished thus far. So thank you for joining us. One of the things that I want to bring to everybody's attention right at the forefront here is a strategic alliance between Ion Energy, which is a lithium explorer in Mongolia alongside Aranjin Resources, which of course is why we're here today.

1:02 That strategic alliance was built on the basis of Ion Energy's Babai oil license, which is about 81,000 hectares. So in terms of scale, you know, consider about 60 kilometers wide by 20 kilometers tall, about 5 times the size of the city of Vancouver, which ultimately means that it will have potential for additional minerals beyond the lithium that we're exploring or was being explored by ION and will continue to be. During that exploration, Copper and nickel anomalies were found on the asset, given the fact that management and board have a sort of strong and long relationship in country as well as on other projects. It made sense to build this alliance, leveraging not only skillsets, but also allowing us to reduce overhead across both companies and look to monetize from each company's perspective, either base metals or lithium found on the assets of each respective company.

2:00 So we are Mongolia's emerging copper explorer. Some of you may know that Mongolia is the home of big copper and that's sort of on our front slide there. And that's proven and indicated by Oyutolgoy, which is owned by Rio Tinto. Rio Tinto recently tried to outbid or rather buy out Turquoise Hill with an $8 billion investment. We believe that deal will go through. It essentially de-risks not only the country, but shows that Oyutolgoi, being the third largest copper gold mine in the world, is located in Mongolia. And as a result, it remains a rather exciting jurisdiction. We've been there for a number of years with Hunu Coal, which we can chat about in a second, as well as Step Gold, which is Mongolia's premier gold producer. And then of course, Ion Energy, that's looking at lithium brine in Mongolia as well.

2:48 As a company, 50% is held by management and board. So we are very much aligned with what we want to accomplish for our shareholders. We have the Sharga project in Gobi Altai, Bayon Under in Bayon Hongor, as well as Babayul and Urgak Naran, which are ION's assets, But Ranjin does have an 80% interest in those as well. We've done some drilling on the assets and we'll talk to those results in just a second here. So in May 2021, we acquired Sharga. That's in the westernmost province of Mongolia. We started drilling at BU, which is Barnunder. We've also done some additional diamond drilling at Sharga. We put out some results last year and then announced the JV earlier this year as well. As I mentioned, the team has been in country for over 15 years. We've accomplished a fair bit now with Hunu as well as Step and of course Ion.

3:43 With the assets that we have some really strong results from Sharga show results of up to 15.4 meters and 1.3% copper and about 0.94 gram per tonne gold. The big tree discovery we'll chat about in a second, but let's talk about the location and why that's important. In terms of battery metals or just general consumption, China remains the largest consumer of copper, nickel, lithium on the planet. Given our proximity to that market and given the fact that Rio Tinto, through Oyutolgoy, has already built the necessary supply chain and infrastructure to provide concentrates to this behemoth of a market, It's rather compelling and it's rather important that Mongolia play a pivotal role with respect to providing these battery metals to the Chinese. We have strong support from the government. The government is a democracy. It is a young democracy.

4:32 They were part of the Soviet satellite nations. 1991 got independence. And it has 2 political parties, a true democracy, the People's Party that is in power today and was reelected. They are pro-mining and they continue to incentivize investment into the country, as shown by, of course, Zijin Mining of China, very recently investing in Zanadu Mining in Mongolia to the tune of $26 million earlier this year. A bit about the team, half our board is Mongolian. We think it's important to operate that way, irrespective of jurisdiction. I jointly serve as the CEO of Ion Energy. I was an advisor to Step Gold. I am an advisor to Atma Capital Markets, and my background stems in asset management. Matthew Wood, my chairman, he's had about 30 years of global mining experience.

5:22 He founded Hunu Coal in Mongolia, which was a $20 billion IPO in 2010 that led to A0A billion dollar exit in 2011 with essentially 99% Mongolian staff. So we do operate as a Mongolian company traded on other jurisdictions. But importantly, Matthew Wood was also the founding director of the Mirabella Nickel deposit. So He knows copper and nickel quite well. He also built a Banco Resources in Brazil that sold to Oz Minerals as recently as 2018 for $440 million. Solongo is a Mongolian national. She's worked on a number of different commodities in the region. She's also a corporate secretary to Stepgold. Jeremy South, our CFO and executive director, he's had about 35 years of M&A experience, primarily at Deloitte, where he spent about 4 years in Beijing.

6:13 He understands the Asian market rather well. He also serves as the CFO of Stepgold. Batatumar Orchir is another Mongolian national, the chief executive of Stepgold, an individual that's really brought that company to where they are today in terms of production and was awarded from the Ministry of Mining the best investment of the year for his work at Stepgold. And beyond that, he is an advisor to the Ministry of Mining. He was with the prior government, he was reappointed with the new government, so we are politically agnostic irrespective of the party in power, we're able to get things done. Luis Azevedo is a lawyer and a geologist based out of Brazil. He worked with Matthew Wood on companies such as Avenco and the Mirabella Nickel deposit. He runs the equivalent of the PDAC down in Brazil and was nominated as National Explorer of the Year in 2017.

7:04 Max Jahn is a managing director at R&R Venture Partners. R&R is a family office out of New York that manages money or funds for Estee Lauder's heir, which is Lorna Lauda, as well as Dick Parsons, who used to be the chairman of Citigroup and Time Warner They were early investors with us as a group In fact, we are their 1st mining investment and they continue to be rather supportive With respect to all the work that we're doing in Mongolia and beyond The cap table today about 216 million shares outstanding close about 4.5 cents yesterday I believe, giving us a market cap of about 11.8 million dollars, including options fully diluted we're around 230. As you can see Management Insiders hold a fair chunk of the company and that's a result of us investing alongside our shareholders at every base.

7:54 And we have some legacy shares that were issued for the prior company, which was a diamond exploration company that we continue to see on our cap table. The goal of the company, of course, would be to look to draw those back or withdraw, I beg your pardon, consolidate the shares, so we do a rollback in due course. And that would happen to be more reflective of a TSX listed company. When we started on Babayol and then the copper nickel discovery, some of the more exciting sort of rock chips that provided us with results were up to 2150 nickel and 667 copper. The TSX granted us one of its kind of joint venture agreement between Ion and Arangin. We were extremely encouraged by what we saw there, and so we drilled down to 6 meters using augers, giving us a geochemical sort of analysis.

8:46 And then on the basis of that, we were able to drill an additional 814 holes around what we're calling the Victory Copper-Nickel discovery. Victory is rather apt because it is a significantly sized discovery. It's a gabbro-style deposit, so it's a weathered gabbroic clay. And we're seeing that it spans about 2.5 kilometers by 2 kilometers which is rather significant. And if you look at the grades that we're looking at here, if you look at potentially a depth of 100 meters, don't quote me on this, I'm not a geologist, but this is what my geologist tells me, that we're potentially looking at about 1.2 billion tonne of ore that's worth processing, which is of course big. And we are excited to continue to drill on this asset using a diamond core rig in the coming months here. So we are very excited about Victory. I'm actually going to be on site next week in Mongolia visiting this deposit to plan out the exploration program and work with the team there to better understand it.

9:43 So we are pressing forward quite quickly. We expect to share more results with the market as we go along here. Sharga, that was our acquisition back in January of last year. It's about 9,000 hectares, as I mentioned. It's in Gobi Altai province. It's very well situated to the Chinese sort of infrastructure that is required to ship concentrate. Some of the prior work that we've done on the project included 222.5 meters, 77 drill core samples and a fair bit of line geomag and electromag. The project is only about 10 kilometers from the city, so it is rather quick to access. Of the previous work that we had done, looking at this map here, you'll see where we're situated relative to Ulaanbaatar, the capital.

10:31 It was all done in and around Sharga. That's some of the infrastructure that speaks to where we're located. Bayanunder, a project we'll discuss shortly. And then of course, Bar and Tal and Udgaknar. So the early results From Sharga, we managed to drill an additional 2200m. We put out those results back in December of last year, about 15.4m at 1.33% Copper and 0.94% Gold. Wide zones, it is a BMS style deposit. We've seen multiple mineralised areas within that licence. And we have plans now to drill about 12,000 meters across this asset to better understand it. So it is rather exciting and with 12,000 meters planned we expect to start to really better understand and de-risk it rather significantly as we move on here.

11:18 Buy and under is the other asset or one of the other assets that Arantum currently holds. It is a mining license with 57,000m drilled on it. So it is rather advanced. We will be planning to do about 2000m on this asset in due course and that will allow us to better understand the 57,000 meters drilled on the asset thus far. About $10 million US has been spent on this asset and that's essentially more than our market cap today. We've had a number of fantastic results out of this asset. We've seen results of up to 3.31% copper and 10.16 van per tonne silver over an 80 metre intercept. And that's just one of many exciting intercepts seen here. So when we do this, the additional holds here for the 2000m planned, we expect to get a better sense of the assets and then ultimately work towards advancing it.

12:10 So in closing, I think, you know, hopefully we've shown that Arangent is well positioned given our experience not only in copper, but also in Mongolia. We continue to see great potential from the Victory deposits, and we'll start to de-risk that here in short order. Given our proximity to the largest consumer, we continue to be rather relevant, and we expect to sort of de-risk our assets and bring them a tad further as we progress the company, not only from a potential financing opportunity in the future, but also the work that needs to happen over the course of the next sort of few quarters. So it is brief, but that is the presentation. I will open up for questions now and hopefully we have some detail to pick on. Absolutely, Ali. I want to thank you for the great presentation and remind the audience that you can ask questions using the Q&A tab on the right hand side of your screen. But Ali, to start with, you've mentioned Mongolia as a mining jurisdiction, and I understand that the government is opening up many more licenses.

13:08 Is it a part of Aranjin's growth strategy to acquire more licenses and expand its copper-nickel exploration potential? You know, I'll answer that in 2 ways. I think Mongolia is, in fact, a very strong mining jurisdiction. Mining accounts for 80% of its exports, and you have a number of skilled laborers in country that you don't need to bring in expensive expats to operate. And so Mongolia, yes, absolutely, is a fantastic mining jurisdiction. With respect to the assets and availability of assets and expansion of Arangin as we continue to progress here, absolutely. I think it would be silly for an organization that understands the country rather well to not go after something that would be of value. So if the price is right and the technical side of things is correct, we would absolutely consider acquiring additional licenses.

13:57 All right. How is Mongolia, and for that matter, Aranjan, impacted by the current geopolitical situation and will it impact catalyst timelines? So the situation is is one that is yes, it is affecting to some degree the the FX availability in country or foreign exchange availability in country. But thankfully, because we operate as a Mongolian company that's trading overseas, most of our vendors are local. They get paid in MNT, which is the local currency. We don't have any risk in that perspective. And it's also important to note that Mongolia is very much a buffer state supported by the Western powers that be. It's situated between Russia and China today, allowing it to be that buffer state between 2 big eastern powers.

14:47 The US government, Pompeo, when Trump was in power, was in-country, sort of advancing relationships with Mongolia. The Japanese helped build the airport that sits in Ulaanbaatar today. The Germans have helped with a fair bit of infrastructure in terms of roads. The Koreans have been, so Samsung, for instance, has had its longest standing offtake agreement for copper from Mongolia. And so there's a lot of external sort of influences in country, And as a result, we haven't seen any direct spillover from the conflict in the region. It's good to hear. This question is about how is it being the CEO of 2 different battery metals emerging explorers, especially concerning the fact that there's a strategic alliance in place with each other.

15:34 It's sometimes difficult to remember which hat to put on. And I think that was illustrated in my opening slide here when we talked about the ion and orange and JV. But ultimately, I think you have to look at this as you require copper, nickel and lithium to advance the clean green energy revolution. These are essential elements. The fact that we have an experienced team in country, as well as myself running Ion and Rangin, you know, we're able to ultimately reduce overheads significantly for our shareholders. We're looking at an alliance here that ultimately provides value for our shareholders and allows us to work towards the goal of providing these very essential battery metals to the clean green energy revolution. All right. Copper is the new Gold. That's a statement that has been said many times and we've heard it from many industry leaders. How do you feel about it and especially in relation to Aranjin's long term potential?

16:29 I think you know you look at Mark Bristow of Barrick back in, call it February or January of this year at the Future Minerals Forum in Saudi Arabia. You know, he indicated unequivocally that he wants to move 20% of Barrick's portfolio to copper as opposed to gold. And that's something that he's pressing on with quite quickly here. We've seen gold prices come up a bit and then ultimately falter. We've seen copper have a massive hit over the course of the summer here, but it will start to return. I think when you look at electrification, one of the key ingredients in wires and everything else will remain to be copper. And so as a result, copper is rather important and will continue to be necessary. Is it the new gold? I don't have a crystal ball. I can't forecast whether it's going to be a store of wealth, but I will tell you that it will be required for this revolution.

17:24 All right, fair enough, Ali. Well, listen, that looks like all the questions we have for today. So I want to thank you for coming on, especially those in the audience. But with that Ali, I'd like to pass things back to you for some closing remarks before we wrap up for the day. Thank you, Ken. So yeah, thank you everybody for joining us today. As mentioned, I will be in Mongolia next week on site reviewing the work that's been done as well as what will be done over the coming quarter. You can expect to see a fair bit more data being shared with the market over the course of the next couple of quarters and some advancement with respect to not only exploration but also some strategic related items that may make sense for the company. So we're just getting started. We've been quiet for a while here, but now that the world is open back up and we have access to country, but we're also pressing on with some of our plans to advance the company, you'll start to hear a fair bit more from our engine resources over the next couple of quarters.

18:15 So thank you very much.