Bunker Hill Corporate Update

0:08 Hello everyone, it's a pleasure to have everyone here today. We're going to do this a little bit differently today. I wanted to be able to share a video to really share in the progress that we've been making here at site. So we'll be showing a short video and then after the video I'll be turning the presentation over to Dave Weins who will run through the financing that we announced on Monday. So Cam, with no further ado if you would go ahead and play the video please. Thank you.

0:37 This is Sam Ash and I am excited to show this short video introducing the restart progress of the Bunker Hill mine. In Wardner, development between the 5 and the 6 level decline is progressing on budget with an expected breakthrough to the New Guard ramp in September. This opens up access to roughly a third of the resource and puts us in an excellent position to resume mining operations. On surface, Tom Francis, our new General Manager, is overseeing the cleanup and preparation of the site to receive the Pend Oreille mill and ultimately to begin and initiate construction later this summer. Several buildings have been demolished in preparation as well as a tremendous amount of cleanup both external and internal to the existing buildings and infrastructure.

1:32 At Pend Oreille, mill demobilization is well underway with significant amounts of equipment already making the 2.5 hour journey between Pend Oreille and the mine site here at Bunker Hill. Mike Eiselin has joined the team as processing manager and is overseeing the engineering of the processing plant design, ensuring that we are ready to begin construction later this year. Currently, assessment is underway to judge the ability to reuse the existing buildings to house the processing plant. From a bird's eye view, you can see here the ultimate location of where the different processing capabilities and processing functions will rest. What's important to note is that the site is more than large enough to handle all of the key aspects of the processing facility.

2:27 We have also been busy the last few months building and testing a pilot water treatment plant. This is a 1 in 20 scale plant meant to test the applicability of the water treatment solution to meet both the flow rate and the water quality standards that we must achieve with our water treatment facility. Our partner Mine Water has been instrumental in helping us engineer, build, and operate this test water treatment plant. I'm happy to say that the initial results look very good indeed. In summary, I would like to thank you all for watching the significant progress that we're making here at the Bunker Hill site. Thank you. And now I want to turn it over to Dave, who's going to run through some of the details of the most recent financing that we announced and press released on Monday.

3:21 Dave? Thanks, Sam. I'm so very pleased to announce what effectively represents a further deepening of the relationship with Sprott and allows us to take that next step towards full project financing with the announcement of the new convertible debenture on Monday morning. So you can see on the page here, this represents an incremental $15 million of financing, expanding the project finance facility with Sprott to $66 million in total, of which $29 million has now been advanced. You can see that similar to the, we're calling this the Series 2 convertible debenture because there was a previous convertible debenture of the Series 1. You can see, similar to Series 1, 10.5% interest rate, which is about LIBOR plus 7 based on current interest rates, about the same as what the 7.5% represented on the Series 1.

4:14 29 cent conversion price, which is about 20% higher than the current price of the shares and maturity of March 31st 2025 which is important because that allows us more than enough time post commercial production to be generating free to be generating free cash flow and service that you can see in the news release as well that concurrent with this new $15 million financing we extended the maturity on the Series 1 convertible debentures as well. They were previously scheduled to be repaid or converted when the stream came in, they're now extended to March 31st 2025 as well. So quite pleased with this package. As you can see on the slide there, it allows us to meet those important obligations. If you may recall with the EPA deal that we announced in December, we had 180 days to get that financial assurance in place to push those maturities out to be paid from free cash flow between 2024 and 2029.

5:10 This new financing accomplishes that while continuing to finance the key project work streams including the mill demobilization, underground decline, engineering optimization, and the completion of the PFS, which we expect to happen in the third quarter. The stream, no change to the stream assumptions, which you can see on the right-hand side, which is the final piece of the SPROT package, and we expect that to be advanced concurrent roughly around the time frame that the pre-feasibility study is published. So that's it in a nutshell. We're quite pleased to have taken this next step in our financing package and happy to answer any questions. Great, thanks a lot gentlemen. All right, so I'd like to remind everyone in the audience that you can ask questions using the Q&A tab found on the right hand side of your screen at any time during the Q&A period now. Guys, we've already received a question though from Greg. Is there a plan for a listing in the US anytime soon?

6:09 Greg, I'll talk to that. We do have a US listing. We're on the OTCQB, and Certainly we have a view to upgrade that listing when we're able to. All right, another question. Have you selected an EPCM contractor for the mill and when can the construction start? Yes, we have not selected an EPCM contractor yet. However, we are well down the path of doing a selection process to identify the appropriate EPCM contractor. We're certainly looking to, and there are local EPCM contractors who are capable of handling a project of this scope and scale, which is really a benefit

6:57 to the construction. Using local contractors is always, we feel, you know, the preferred way to move forward. Fair enough. Mark wants to know why is the PFS slip from Q2? That's a good question and Mark, as we have been doing the technical work and we've been moving from a PEA to a PFS, there are, as you can imagine, multiple optimization opportunities that come to light. And, you know, the nature and the amount of those optimization opportunities that have presented themselves really put us in the position where we felt that putting the best foot forward with that pre-feasibility would be to take a little bit of extra time and run a couple of those optimization opportunities fully to ground so that we can incorporate them and have the most robust pre-feasibility possible.

7:52 Great, he actually has a follow-up question. Will the royalty streams be included in the PFS financials? Yes, they will. All right, great. As you're wrapping up, are you having trouble finding skilled labor?

8:07 We're in a very fortunate position that, you know, here in northern Idaho in the Silver Valley, we're in a community and a locality that has a long history of mining. So we're able to draw extensively on the local talent base and certainly for the construction we're able to expand that out into the areas of eastern Washington as well so. To date we've not had any trouble finding skilled- skilled labor and certainly we are certainly seeing as you can see by the addition of Tom Francis and Mike Eislen, that on the technical side of things as well, we're able to draw on talent who's very excited about the opportunity to come and join a dynamic team and a story that offers the opportunity that the Bunker Hill restart offers.

9:07 Absolutely. What, if any, permits or agreements are still required to restart production? So there are a couple of small local ancillary permits that we will have to do, you know, as we go through the process of modifying buildings, you know, the, you know, the local building codes and building inspector, you know, things like that. But there's certainly nothing that is represents or is even close to being a critical path for the restart of production. Okay. Does the delay in PFS impact your expected Q4 2023 plant commissioning? No, it doesn't. We are still on track for the commissioning and restart in late Q3 early Q4 of 2023.

9:54 And really you know that's the way that we are continuing to approach this operationally at site. That's why you see the level of activity that you do, why you see that the rehabilitation and development in the underground mine is progressing on plan and on cost, and you're seeing the site preparation here on surface advancing. And in addition, the mill relocation. Right, okay. The press release mentioned material improvement in your working capital. What do you estimate your working balance to be now. That's a great question actually- yeah highlights- related to what I mentioned earlier in terms of satisfying the EPA financial assurance with this financing. So if you looked at our last balance sheet, our working capital balance was about negative 21 million.

10:47 Obviously the team is, we're not even at June 30th yet and the team has yet to compile the accounts. But what I can say is that you will see a step change in our working capital balance as of the next reporting date, because there was about $12 million of EPA liabilities that sat within short-term liabilities.

11:06 Those are now going to move into long-term liabilities. So together with the 12 moving from short-term to long-term, you're about to see $15 million of cash come in on top of that. And that's in addition to the equity financing that we did in the second quarter. So you're going to see again I should sort of not venture to sort of guess on these things until the teams have done it but you could see positive working capital here which has all sorts of benefits to us, not just from a financial stability perspective, but also things such as the TSX-V listing that we are still in the process of pursuing. So it enables all sorts of things going forward. Thanks for that. Another question, are the 17 million payment bonds, LOC and the 2.9 million additional unpaid water treatment facility, CAPEX and OPEX costs due now, are covered by existing cash in the new Deventure, which was $15 million?

12:05 That's correct. And that's just in terms of top terminology, when we say financial assurance, that's effectively what we're referring to, the $17 million. So we have successfully lined up performance, a combination of performance bonds and letters of credit to satisfy that $17 million obligation enabled by this financing, which is really that short term portion I mentioned of the 12, which is going to move to long term. And so the short answer is yes those obligations are covered with this financing which is yet another sort of de-risking step for the company. All right thanks David. Listen I think that's all the questions we have come in currently. I want to thank you David and Sam for not only walking us through your presentation but giving us a great overview. I'd like to thank everyone who submitted questions. If you didn't get a chance to think of 1 or think of one later, you can always contact the Bunker Hill Mining team, accessing their information and contact information. BunkerHillMining.com is a great resource for finding that stuff out. But Sam, David, I'd like to pass things back to you for some closing remarks before we wrap up for the day.

13:11 Yeah, thank you. What I can say is that it's going to be a very, very busy summer here at Bunker Hill. You know we're advancing the project accelerating the- the work streams. And we're moving forward really- in a very positive manner here at site you know the mill relocation. Of the process plant coming down from pond array is a well advanced we're off to a great start there- on the underground development side we're ahead of schedule and under budget- which is pretty impressive. And we're really looking to accelerate through the summer and- looking forward to building this mine and putting it back into production. Absolutely, thank you for that Sam. We just do have another question that's slipped in, just another one from Mark. What's your corporate GNA and is it expected to remain consistent?

14:02 So I can take that. So I was actually going to add as part of my closing remark, you know, this is the fun part. Sam talks about, you know, building the mine and we're building our team as well, both at corporate as well as on the ground. So I think you will see it as you would imagine moving from effectively if you went back a year this company being a bit of a startup to now a very serious development and going into production player. So we are continuing to build that team. You know I'd say corporate GNA at the moment you know it's always categorization except it is in sort of the couple million dollars a year. And I wouldn't expect much upward movement on that just because most of the team that we are building is on the ground in Idaho adding adding value at the project level.

14:48 Absolutely. Thank you for that, David. Listen, gentlemen, I want to thank you again for coming on. If that's all, I think we can wrap up for the day. I want to thank you and everyone who's joined us, and I hope you have a good rest of your day. Cheers. Thank you. Thank you.