Honey Badger Silver: Investor Town Hall

0:04 We are now live. I see people are starting to enter the room. Hello everyone. Thank you for joining us for this live Honey Badger Silver event. Chad Williams is joining us today from the Prairie Creek Camp alongside some of the team members. So he has taken the time out of his day to answer your questions. You can join the conversation by submitting your questions in the chat and we'll get to as many of them as we can. But before that, he will run through a quick presentation and walkthrough at the camp. So without further ado, Chad, the floor is yours.

0:36 Okay, thank you very much, Kyle. Hello, everybody. And as you can see, I am or we are at the Prairie Creek site. We're in fact, We're in the mill building and the picture, the first slide in the present, I'm gonna go through the presentation, but the first picture is where we are right now. And you see the word rewriting, we're in the mill building. So it's the big building off to the lower left and I'm gonna the way this is gonna work is I will go through the presentation I will do a quick you know summary of the sites or or what we the observations from the site I'll do a quick walk around of the mill and then we'll open it up to questions, okay?

1:26 The first thing though, and arguably the most important, is to mention that we are speaking to you today from the ancestral and traditional territories and waters. Of the debt show. Then a and Mickey people who have lived on and stewarded this land since time In memorial. This includes the Dha Dha. Hey Denny of Nahani Butte, who have stewarded the lands and waters of the South Nahani River. Watershed for generations and the lid leak way First Nation, a member of the debt show First Nations. So thank you very much to the First Nations, of course, for the opportunity and the honor of being here.

2:13 So let's go through the slides. So yeah, okay, the 5 reasons, the first, the 5 reasons to buy Honey Badger shares now, what I'm gonna do is I'm gonna rotate my phone so I can see the lettering a little bit better here. I'm not gonna go through the, and by the way I'll introduce all these folks in just a minute here, the 5 reasons to buy Honey Badger shares right now, obviously where we are standing, sitting is Prairie Creek, it is a world class asset. There are many, many, many good things about Prairie Creek which I'll talk about. Value versus peers, there's a slide I'll show in a moment that it shows that we are one-eighth of the value of our peers. In other words, if we were to trade at the value of our peers, it's an 8 times, 800% increase from where we are today. And I would argue that we are better than most of our peers.

3:16 We have a high quality asset portfolio. Prairie Creek is 1 of 8 silver assets all located in Northern Canada. Insider ownership and experience. A great team and as I said, I'll talk about the team momentarily. And something that's new for us is critical minerals in the sense that we are a silver company. We were always focused on silver, but we have been very fortunate to discover in our asset portfolio critical minerals such as germanium and Tungsten and Antimony and a host of others. So Kyle, if you can go to the next slide, please. All right, so inside ownership, you've heard that Eric Sprott's a big shareholder, Rick Rule is involved, there are institutions that are involved and the momentum of the story is growing and there's no doubt in my mind that we're gonna get more and more institutional ownership of this story.

4:13 Let's go to the next slide. All right, excuse me, some of the people. So yeah, so this is Chad Williams, I'm the chairman and the interim CEO. The Ron Hallis is behind me, Ron is the COO. And we've got Claudine Lee, Claudine is over there. Claudine is amazing in terms of environmental and permitting, world-class for that. And Andrew is not here. Andrew is our VP of exploration, and you'll see Andrew on future calls. Ben's our QP, Justin is back in Toronto. The slide deck that you're about to see or that you are seeing, Justin was an integral part of doing that. And furthermore, Justin is the guy that brought the idea of bringing Prairie Creek into Honeybadger.

5:02 So he deserves a lot of credit. We've got a great board and team of advisors, but there are 2 board members here. John Hill is right here, you can see John. And we have Kobe Kushner, Right here, okay. And, okay, so let's keep going. If you could, okay, so again, Prairie Creek, that's what it looks like. Lots of pictures on the internet and lots of, if you're tenacious, like Mike Jallinen, who's a board member, you would be able to find videos you old very old YouTube videos of the site from the 80s and so forth so there's lots of information on Prairie Creek online. Let's go to the next slide. So we are in the Northwest Territories.

5:53 One thing I can tell you is it is not, it doesn't feel as remote as you would think. It is remote in many aspects, no doubt, but people have been operating here. In fact, this deposit was discovered in 1928. People have been operating here for many, many decades. It doesn't feel remote. Obviously today with wifi and everything else, we feel connected. And so that's one of the first observations about this place. Let's keep going here. You know, there is a proposed 170 kilometer road. There has been a winter road that's gone to site as recently as 2023.

6:40 And many parts of the road are actually in very good shape. We've traveled. I would say probably around 10 km from the site to the park boundary and the road. I mean, I it's not Ferrari level quality road, but certainly with an F 1 50 absolutely no problem. And So, you know, let's keep going as well. The exploration potential of this project is enormous. There are 18, it's an 18 kilometer strike length, which means there's a linear structure that has 18 kilometers of mineral anomalies on it, including, of course, the Prairie Creek deposit, which is about 15 million tons in total. And by the way, it is one of the highest grade undeveloped polymetallic deposits in the world. It's 800 grams per ton silver equivalent, and it contains about, well, in fact, over 400 million ounces of silver equivalent.

7:42 So it's big, it's high grade, it's high quality. And my personal belief, based on some of the former drilling that some of the holes ended in mineralization. It's opened down dip, down plunge. I think, again, this is just my personal opinion here, and I refer all of the listeners, everybody on the line, to refer to the cautionary statements that are part of this presentation. But my personal opinion is that this deposit will grow very substantially in many different directions. And there are lots of anomalies, as I said, along the 18 kilometers that remain to be tested. And so in terms of exploration upside, very, very, very, we're very excited about it. Let's go to the next slide.

8:36 Yeah, again, you've seen if you're familiar with Honey Badger, you've seen this slide before. It's an underground deposit. It is an underground mine. And yeah, and we have 20,000 acres of mineral leases and so exploration leases in the in this area. So lots of land to explore and prospect. Let's let's keep going. In the interest of time, I mentioned at the very beginning because they deserve mentioning at the very beginning, the First Nations, we have signed impacts and benefits agreements with the 3 impacted Indigenous governments. That was done by our predecessors, really.

9:25 In fact, the truth is many good people have done a lot of great work on this project and we are fortunate to be in the position today standing on their shoulders and you know we're just in such a fortunate position but the The IBAs with the First Nations are important, in fact, they're critical, and are certainly worth mentioning. Let's go to the next slide. Now what's changed, and I'll talk a little bit more about that later, but there is now billions of funding from the Canadian and also US government to advance critical mineral projects like Prairie Creek.

10:15 We've been fighting the governments, literally, I've been fighting in essence the governments for my entire career. They haven't wanted mines to be built. Now it's the complete opposite. They are supporting them with money. They want these projects to be advanced. And so we're in a great position, the right place at the right time with the right assets. Let's Kyle, let's go on to the next one. We talked about the US, let's keep going. All right, So this is really interesting. And this is a new slide that Justin put up. Nothing against our peers here. You know, these are good deposits. There's a lot of information here.

11:01 Okay, these, so you get on, you see on the left, there's a column that shows Prairie Creek all of the key characteristics. All right. And then there are 3 other companies, nothing to do with us, obviously, 3 other independent public companies With the characteristics of their projects. And if you go at the bottom you can see that we are trading at a very very small fraction of the market valuation that they're trading at again I have nothing against these projects These are great projects. But it's to illustrate that we are substantially, severely, dramatically undervalued. The data is there. You don't have to believe me. Just look at the information on this slide. Great slide, Justin. Let's go on to the next one. I won't speak about it very much at all, but I mentioned at the beginning that we have 8 silver projects. Prairie Creek is by far our most important. We will spend 80% of our time, our money, our efforts, our energy on Prairie Creek. However, these 7 other projects, any company would love to have any one of our projects. Sunrise, for example, also in the NWT, has a mineral inventory. We think we can grow it. And we'll see if we're able to add some value to Sunrise this year.

12:20 I said that we are undervalued based on Prairie Creek alone, so you get 7 other projects for free. And again, this is just my opinion. So let's go to the conclusion.

12:34 So there are again 5 reasons to buy Prairie Creek, world-class, high-grade, excellent asset. Valuation versus peers, our high-quality asset portfolio, so we're not just a one-trick pony, I guess, if I could use that cliche. Insider ownership and experience, and the critical mineral upside which is new to us. So what I'd like to do now is focus more on the site and some of the observations. If you were to come to site today, you would see, first of all you'd be amazed at how advanced this is, I keep saying that, and how substantial this operation this is a mine this is not an exploration camp or this is a mine a mining operation really the we have a large mill building which we're standing in and I'll do a walk around in a few minutes so you can see the amazing asset that we have.

13:37 We have a substantial office building,

13:42 many service buildings including a fully equipped mechanics shop. I'm told we can do anything, service any piece of equipment here. We have lathes and drill press, all kinds of things because we have to be, and they have been self-sufficient here. The analogy that I use is for the golfers that are listening, it's like having a 350, like Tiger Woods' drive, okay, in the middle of the fairway. We are exceedingly well set up. Now, we have 2 or 3 more strokes to get the ball in the cup, without a doubt, but we are very, very advantaged with what we have today. We have a really good airstrip here. We have 5 kilometers of underground workings.

14:31 If we were to, so it's very difficult. People ask me, what's the value of what you have here? If we were to rebuild all of this stuff, like for example, underground development, that's $1,000 a foot, okay?

14:46 So what's 5,000 meters? That's a substantial investment just on underground with time and and and the logistics and all of that. I estimate that there's at least if we were to recreate all this stuff at least 400 million dollars at least if not more and again time you know we have the luxury again of benefiting of all the good hard work that other people have done on this project but you know clearly one of the most important aspects is the very professional team that we have on site. They are focused on, on safety. They wake up, literally wake up and go to bed thinking about safety. And that's important For those of you that are familiar with mining, you know that a company with a good safety track record, good housekeeping, that's a good operation. And we have that, we benefit that. We benefit from that from the people on site here.

15:47 So let me talk a little bit about Claudine. As I said, she is, if you've got any questions on permitting, Claudine is available.

15:57 We have Sean who I haven't introduced yet. Sean is operations, he's the operations guy. If I wanted to go to Mars tomorrow morning, Sean is the first guy that I would call because he would figure it out. And a guy like that is so important because you've got to be resourceful here. Plus, he's got lots of experience on this site as well. In terms of logistics, Amy, who's not here, she's actually taking care of business, if you know what I mean. Amy is very, very good on that. There are many others on site that are busy doing what they're supposed to be doing and obviously other people in other locations, accounting people and other permitting people, environmental people that are integral part of this team that as an investor in Honeybadger, You can sleep very, very well at night knowing that they are protecting your interests and doing the right thing. OK, so

16:55 the. I get asked this question all the time, like this operation has been around, what's different? So I'll tell you what's different. The silver price has never been over $100 Canadian an ounce. The zinc price is nearly $2 Canadian per pound, okay? Those price levels in combination have never happened before. We have government support. The government of the Northwest Territories want this mine to be built. There are many mines that have recently shut down or are shutting down, diamond mines. Now's a good time to buy diamonds if you're in the diamond market because the diamond price is low, but unfortunately it's caused some of these diamond mines to go to shut down for economic reasons. Okay, so the government is very supportive.

17:42 And of course, the world has a brand new interest in some of these critical minerals like germanium. When this project was advanced, it was 95% built in 1982. And nobody thought about geranium in those days because they didn't have the infrared uses and cell phone and high-tech uses that we have now. But of course those metals like germanium and unfortunately because of the war and so

18:06 forth, metals like tungsten are in high demand. And finally, and I keep saying this because it's highly important, the agreements with the impacted Indigenous governments. That took a long time and a lot of effort to negotiate those. We benefit from those, okay? So just to finish off really, the final thing that's never happened here is I am very confident in telling you that we have the best team here that ever, although this place has benefited from great people that without a doubt, Without it, I can see it and the good things that they've done. Okay, you know, we went underground, the quality of the underground and so forth.

18:55 But, you know, I've talked about the board and Ron Hallis, you know, he's a mind builder. You know, You do your due diligence on Ron Hallis and again you can sleep very, very well. This is the best team that this project has ever had to advance it. So just to finish off before I do my little walk around and then open it up to questions, The conclusion in general is that we are extremely fortunate to have this deposit, this mine, this operation, these people working on our behalf, if you will, as investors. In terms of next steps, we'll be releasing our action plan very soon. I know some of you or many of you are waiting for that. It's important, listen, we just closed on the transaction 2 weeks ago, all right? We're getting there.

19:43 And I have a saying, we can do things quickly or we can do things properly. And it's maybe taking a little bit longer, but we'll release our action plan very, very soon. You will not be disappointed, I guarantee you.

19:55 We're excited. You can tell I'm excited. That energy, that excitement will be flowing to this project. This project needs that. Okay. And we're going to be advancing it as quickly and as responsibly, underline bold responsibly, as possible. And you will see signs of advancement of this thing moving forward very quickly. So let me end on that and I'm going to walk around a little bit to show you the mill. And Actually, why don't we do it this way. Let's open it up to questions in case that we have questions for the folks behind me and then at the very end I'll sign off with the walk around the mill.

20:44 Okay? Okay. Sounds good. Any questions?

20:48 There's a few questions, yeah. See where, so you talked about the resource size, it's already permitted for underground development. For investors who haven't followed Prairie Creek closely, what's actually left to do to move this from where it sits today toward first production? Right, it's a great, in fact, that is the the best question. What is left for us to do? So the road has to be upgraded from a winter road to an season road were permitted. It's engineered. There are steps remaining, but they are. Minor steps relative to what's been done before the mill, and you'll see the mill looks great, but it's never been operated.

21:37 So we have to go in here and we have to, I'm going to be a little bit tongue in cheek here, but you know, just to turn the power on and lubricate some of the, some of the, the joints and things, it's obviously more complicated than that, but, but the mill has to be, has to be updated. You know, it's like a vintage car, right? It's a great, it's got great bones, but you know, once you get in it, you don't really know exactly all the stuff you're going to have to do, but it's got great bones, all the right stuff. And in terms of the resource itself, nothing has to be done. Everything has been done on the resource to go into production. We don't have to drill anything. We are choosing to drill because we think there's a lot of upside and we want to demonstrate that to the world.

22:26 But again, it's hard to say 95% of the work is done, 90%, it's something like that. We're very, very well at that. There's quite a few questions. I'm just trying to figure out the most logical order right now. Peter Epstein, you said roughly 400 million silver equivalent ounces. What percentage of that 400 million is silver? What are the second and third largest contributing metals? Right. And the silver, let's talk about silver equivalent, because that's kind of a weird number. Because what we do is we convert zinc into silver and lead into silver. It includes nothing on the germanium or tungsten or other unusual metals. And it depends on the price of the metal that you use. So that number can go up and down.

23:15 But in production at today's commodity prices, over 50%, 5-0 of the revenue will be silver, about 35% will be zinc, 15% will be lead, and X% will be germanium, Y% will be tungsten and so on. There's also copper in this deposit. There are some very copper rich zones. No one talks about copper really or has talked about copper. That's kind of cool. We don't know what impact that's going to have. Great. Clearly the focus and value is in Prairie Creek. Any plans to spin out the other assets into a new cove?

23:59 Not at the current time. We think that our current 7 other assets have a lot of value. They don't cost us a lot of money. It's not like we need to spend tons of money to keep them. And with a little bit of value, excuse me, with a little bit of money, we can add a lot of value. So we think about it, but there are no immediate plans to spin those off or joint venture them. I mean, if somebody came to us and we have been approached by many large corporations, especially about Plata, all right, we'd obviously be open to things. But Plata, I mean, Plata's got 32 drill-ready targets. It's the single best exploration story, like grassroots or early-stage exploration, as I've ever seen in 40 years in the business.

24:45 Why would we let that go for a song? That makes no sense. Upon registration, there are 2 questions very similar, but also a little different. I'm just going to read them both to you. Hi Chad, You have stated in the past that you did not want to be a mine operator. Has your position changed since acquiring Prairie Creek Asset? What is the company's plan for silver production at Prairie Creek and or the other projects? Who will lead the mine building operation and what is the anticipated CapEx and funding methodology? Right. And you know, I am a, those are great questions. I am a mining engineer, but to be fair, I haven't done that kind of work for a long time.

25:31 The guy that we're leaning on heavily is Ron Hallis. And I didn't want to be a mining company because I know how difficult it is to be a mining company, to put a mine into production. Why We are doing it here and why I want to do it here and why I think it's reasonable and realistic to do it here is because we have such an advantage because of all the work that's been done before. This is not a normal situation. If you make it, let's say we made a big discovery at Plata, it'd be 10 years at least before we had a mine. Here, the timeline has collapsed because of all the work that's being done and all the capital that's being spent. In terms of the silver, I mean, to me, silver is extremely valuable. When I launched essentially or took over control of Honeybadger, I had a view, silver was $16 an ounce. I had a view that silver was going to $100. Everybody thought I was crazy.

26:27 Now I'm saying $200 an ounce, and it can go there actually pretty quickly. For the silver bugs online, you know that it's broken out. You know that technically very high prices are reasonable and realistic. The point being is the silver aspect of this company is very cherished and very valuable. We want to make sure that our shareholders, it's called Honey Badger Silver for a reason. That's why we own physical silver in essence as well through the Bunker Hill debt facility. We own 10,000 ounces of silver. We're not going to let the silver aspect of Honey Badger go away anytime soon. Great. So you have a lot of money invested already in physical assets.

27:14 An individual in the chat, Shane, is wondering, given the skilled trade capacity constraints, what will the contracting strategy be? Engage a tier 1 general contractor or break into several smaller packages and try and manage it yourself? Well you bring up actually an interesting point, the person brings up an interesting point is, and I get this as well, they're like, you have 8 assets, like how are you gonna manage all that? As I said a few moments ago, our holding costs are very low. And one of the really neat side effects of acquiring Prairie Creek. As I said, we've got these professional people that have expertise in permitting, logistics, and so forth. And so already we're seeing advantages, in terms of permitting certain things on other projects outside Prairie Creek. The.

28:07 Previous Prairie Creek team members have assisted us in getting those permits and things like that. So there are so You know, it's actually become easier for us because of acquiring a career repeat for us to work on our other projects. Okay, I don't know if that's clear, but in terms of who will do the underground work and the mining and all of that, to a certain extent, it does make sense to bring contractors in here. All right, it's a cost benefit analysis. It's simple, it's quick, but it's also more expensive. And so we are going to evaluate that in due course. We're not ready to make that decision yet. That decision would be probably, I don't know, 6 months at best from now. Great. I'm sure a lot of people are eager to see the action plan with Honey Badger. Tom's wondering, is there a core graveyard where you could assay for rare earth minerals?

29:03 The answer is yes, there is core on site. We thought about doing this video there but obviously we don't have Wi-Fi there. There will be pictures on our website very shortly of this trip and you'll see some core. And the answer is yes, there is core that can be assayed. Now, how representative is it for germanium? Because what happens is when core is left outside, especially through the elements, it gets oxidized and the metallurgical characteristics change. But still, there is material that we can assay. I'm thinking just in the interest of time, one more question, and then I'll do the walk around. Okay. Or how about this? I'll do the walk around. And then we can have one more question all right sure sure we can do including remarks after the walk around sounds good yeah yeah okay good stuff so I'm walking up you'll see you'll tell You'll tell that I'm walking up because I'm going to be out of breath in a few seconds here.

30:10 Is the altitude high there? No, it's not. I forget how high it is, but it's not high. It's not an alpine or high elevation. So the first stop is, let me turn my camera around if I can figure out how to do that. Well, I don't know how to do that. So I will just turn my camera. So this is a flotation cell. All right. And for those experts on the line, you will see that it has never been used. It is brand new. Now, brand new being 40 years old, but it's not like it's a mess. It's not like it's leaking or anything like that. It is fresh out of the box. Okay, so that's a flotation cell.

30:56 All right. So yeah, so I'm climbing upstairs. I'll ask, Sean, how high are we here? The elevation. No, no, in terms of the ground, like the elevation of the site itself. So 900 meters, 900 meters above sea level. Okay. Okay. Like I said, I've just walked up 3 flights of stairs and I'm not in a good shape and I'm not breathing that heavily. Okay, so I'm going to turn the camera around and show you some of the sites here. So the first thing, can you see that Kyle?

31:43 Can you see that well? Yes, Yes. Okay, so these tanks again never used. These very large tanks. Under the tarps, brand new filtration, pressure filtration systems. Okay, very valuable, very hard to get. These are the flotation cells. One would be the lead circuit, the other one would be the zinc circuit, I imagine. And, and you can see there's the ball mill that was behind me when I was talking. And you can see our team there for scale. Okay. And, you know, you can see, look at the ceiling, the, I don't know if you can see it, it's a little dark, but you can see that the steel is in very, very good condition on the roof. Right? There's no leaks in the roof.

32:32 All right. So that's it. You want to do one more question or the concluding remarks? What do you think? Yeah, well, there is one that was submitted upon registration, and I don't know if the individual is not on the call or not. So I like asking them on your news capital raise. It was understood that the share that the shares once the company approved was rolled into Honey Badger the shares would become free trade in. Can you give an update on why this has not been implemented as of yet? Been implemented as of yet? The offering was always, I mean there was something a little bit unusual about it in that the stock was in escrow until the transaction closed, okay, which happened recently and then there's a 4 month hold after that, required by the authorities and I mean these are the this is the this is not our rule this is an exchange rule And if that person who asked that question has a specific question about the time or anything related to the shares, please send anyone at Honeybadger an email and we'll get ComputerShare or Monique on our team to answer that question.

33:50 You know, it's not something that I'm an expert on in terms of legends and things like that. But yeah. And for anyone else on the call, when we close off here today, there's going to be a prompt. If you want to request a meeting with management, just feel free to hit that button. And then our team will get in touch with the Honey Badger team, and we'll make sure that they are aware of your request for a meeting and you can chat more with them. But with that, Chad, why don't you turn the camera around facing you? I don't see you right now. And any closing remarks, any final thoughts before we sign off here? Thank you for doing this. It's a nice, nice change for once. There you go. Yeah, a little bit different. And the truth is our team deserves incredible appreciation and thanks for putting this on. This is not simple, OK, to do this, but it's an illustration of what can be done by people who know what they're doing.

34:45 And also, thank you to 6 for making it happen as well. I know there's a lot of good people at 6 that have the technology that makes sure that this thing went off without a hitch. So that's it for now. And we'll be doing more of those. There'll be some, 1 will be on the road itself, another one of these will be on exploration, another one will be on the mill, and we'll be rolling these sessions out in, this was a general overview to get people a sense of what we have, but then we'll be more drilled in, more detailed. And we also plan to have a site visit sometime in August. So, you know, we cannot accommodate a lot of people at the current time, but if There are investors that are interested in a site visit in August sometime.

35:34 Please reflect your interest to anyone at Honeybadger. Go to our website and send us an email and we'll put you on the list. No guarantees, of course, but early bird gets the Okay, take care. Bye for now. Bye