London Mine District Joint Venture

0:08 Well, hello, everyone, and welcome to Bunker Hill's live investment summit today, hosted by 6. We're joined today by Richard Williams, Executive Chairman, Sam Ash, CEO, and David Weins, the Chief Financial Officer. The team's going to go into detail about Bunker Hill's most recent news, and then afterwards we will be accepting questions live. So as a reminder, you can submit your questions at any time using the Q&A panel found on the right-hand side of your screen. And as always, the summit is being recorded and will

0:39 be available to watch afterwards on six.com. But without any further ado, I'll hand it over to you, Richard, to kick things off. Good morning, and thank you very much for setting this up, 6, as always, you're doing a spectacular job for us. And thank you very much for setting this up. 6 as always you're doing a spectacular job for us. And thank you very much for everybody that's dialed in. Before I hand over to Sam and David I just wanted to remind everybody who've been tracking Bunker Hill as to what this company is about. And it puts simply we're here to generate significant value for all our stakeholders that includes our investors through the generation of old mine sites within the United States and the wider North American area. That includes Canada.

1:26 As you all know as investors in the mining industry you generate value in mining from investment in 3 areas. The first is exploration, finding the right metal in the ground at the right grade, in the right place, with the right metallurgy.

1:46 Secondly is innovation, doing that which our forefathers and our predecessors were unable to do, making things more sustainable, more efficient, quicker. And then thirdly, really importantly, is investment in partnerships. And I want to say that our partnership with the United States Environmental Protection Agency in particular is significant here. And our partnership with Joe Harrington and Minewater LLC that you're gonna hear a bit about from Sam and David is also absolutely critical here. Because in our view, and it's the view of the mining industry in general, but we're focused on this, there is a huge amount of value to unlock from those sites that were closed courtesy of the war acts in the 1940s and the environmental and other necessary acts that came in the 1970s in the early 1980s that includes Bunker Hill And Bunker Hill is our core asset.

2:49 The asset that we're going to be proving this concept by. And that's why you've all invested in us. And that's why you're showing this interest. But our move through our partners Joe Harrington in particular into this option to develop

3:04 the value that sits within the London mining district is an exceedingly exciting step out from Bunker Hill and gives you as investors partners and interested parties a view of where we're going to take this company beyond realizing value in Bunker Hill and how we're going to deliver significant impact and value to those shareholders. And those interested in ensuring that the United States and North America can once again contribute to the maximum, the most sustainable contribution of metals into their economies and the global economy. So with that let me hand over to Sam and great work Sam and great work David I'm looking forward to this.

3:54 Thank you very much Richard and you know the when I look at the opportunity that exists with the London Mining District you know There is absolutely a phenomenal mineral opportunity that exists, but really, it's the partnership aspect with mine water that we find so compelling. It is absolutely in line with what we're doing as a company. Going in and unlocking the value in historic mining sites across the western United States. And that really starts with the environment and the sustainability of what we will do on these sites. So, you know, just a little bit of context in history.

4:44 Mine Water was able to put together and acquire the land and mineral endowment because of the investment that they made in environmental remediation. They came in and were able and have executed a cleanup and a remediation of this site. And that really focuses around water and water quality. And because of that, and because of the work they did, the opportunity now exists to advance

5:21 the mineral component and unlock the mineral wealth that we see exists on the site. So Partnership is critically important and Minewater is a responsible partner and a partner that is very much in line with where we're looking to go as a company. So a little bit about just the structure of the joint venture upfront so that everybody understands clearly the partnership that we've entered into. We've entered into a joint venture and the opportunity is to earn in to a 50% share in the mineral endowment and the land package that exists in Colorado in the London Mining District. The London Mining District, it is a historic producer, over 650,000 ounces of gold produced, at a really pretty spectacular grade, 0.68 ounces per ton. You know, that is an exceptional grade.

6:22 And again, as Richard said, you know, the mine was in operation up until just before World War II when it went into closure. And there was some subsequent work done, but certainly nothing extensive. The joint venture agreement, to earn that 50% share in the mineral rights, there's a obligation to invest 3 million to advancing the project over a four-year period.

6:56 It's really compelling for us because it does not require a significant upfront investment. And it gives us and the joint venture the flexibility to advance that program in a variety of ways. So it is important to note that Bunker Hill remains the key focus of the company and the restart of Bunker Hill. But this is a great way to begin to build a portfolio of growth. And we're really excited about the opportunity.

7:31 I'll just go to the next slide now that we have kind of a foundation for what the joint venture looks like. I'll talk a little bit more about the London Mining District. So the London Mining District is really quite interesting. It's, you know, in relatively close proximity to the Climax Molybdenum Mine, and it is just over the mountain from the Leadville Mining District. So it is certainly in an area that has a demonstrated history of economic mineral potential. In the London Mining District, there's 3 main zones that initially, and through the historic records, are interesting from an exploration potential. There's a wide range of mineralization styles, ranging from more base metal, silver dominant mineralization, but also what our primary interest is, at least initially, which is the gold mineralization.

8:30 Although it's an underground, although it's in an underground environment, it is relatively shallow. You know, most of the exploration targets are within that first thousand feet of topography, which really lends itself with exploration success

8:50 to a relatively low capex opportunity for exploitation when the time comes. Really, when you look at what's the work program and how are we going to approach this? I think that, and we will approach this in a similar fashion that we approached Bunker Hill when we came and embarked on the Bunker Hill asset journey. And that first is to get a solid grounding in all of the historical work and geologic information. You know, that is really where 1 needs to start and where we will start. We will work initially on compiling and tabulating and digitizing all of the historical records and data.

9:41 And that in itself is a large base of information on which the geology team can go to work and begin to assess, you know, what the appropriate development plan is going to look like. You know, you can see that the historic reserves, again, non-43-101 compliant and certainly need to be verified and brought up to modern standards from a technical perspective.

10:08 But a great place to start with the total mineral endowment of, you know, 221,000 ounces. And that's over a relatively limited section of the entire strike link. What's impressive as well is the scope and the scale of the mineral endowment, you know, over 8 kilometers of untested strike link on the primary geologic structure that we're looking at. And so it's really, you know, really very, very exciting. I can't understate how excited we are about being able to begin to build that growth pipeline and build that growth pipeline in a way that is very much in alignment with what we've been talking with you all about, which is the vision and the direction of our company, which is one of regeneration of historic mining districts in a very sustainable and thoughtful manner.

11:09 So

11:10 I'm sure you have a lot of questions, but before we get to the questions, I do wanna let Dave just remind everybody of where we're at and what some of the upcoming catalysts that one could expect to see over the next, over the coming weeks and months. Dave? Thanks Sam. Yeah, I think it's worth just full circle reminding the viewers and investors of what we've got coming up here in the next couple of months and it's pretty exciting. You know we have a slide in our presentation showing the value particularly after the updated PDA that we put out a couple of weeks increasing to 150 million dollars or so at conservative metal prices and about $250 million at spot metal prices. That compares to a market cap today of about $25 million. So, you know, what is it really, there's a huge disconnect in our current valuation and what is going to unlock that value. And that's what you see on the screen here that we're laser focused on over the next couple of months. So starting at the top, we continue to work with our partners at the EPA on getting a restructured agreement such that we can pay the majority of the $19 million liability that we have out of cash flow once the mine's up and running. Once we achieve that, and we've been working with those partners for the last 18 months on doing that, we'll be able to purchase the mine. The terms of the mine purchase are preset at 3.4 million of cash and 2 million of shares.

12:33 Obviously, we need the money to buy the mine. And that's really where the project finance process that we've been working very hard on over the last 5 months comes in. We've had very good interest. We're pretty excited about the next steps on that. So watch this space for an announcement and for some developments on that front. And so really all 3 of those tie together and in a couple of months from now we believe that it's quite possible this slide that you see on the screen will look

12:59 very very different because we will have achieved all 3 of those top catalysts, which is really all about unlocking that value in the Bunker Hill mine. Lastly, which I think goes to probably some of the questions that investors do have, is how are we going to continue to get greater visibility in the market and increasing our liquidity and attract additional investors. And that really goes to our strategy to upgrading the listing further beyond the uplistings that we've done in the US to upgrading the listing in Canada on a TSX venture. And that's very much on the agenda, which we believe is going to

13:34 be achievable in a relatively short period of time, concurrent and shortly after those other catalysts. And so I'll turn it back over to you, Sam, just on some of the operational catalysts, which are equally exciting. Absolutely, you know, our operational focus remains on Bunker Hill and advancing towards restart on the exploration side. The geophysics program that we did over the summer, the data is in, we're in the process of analyzing that. We're excited about seeing what that highlights, and we're excited to share that with you as we finish that work in the coming weeks. We're working on and continue to work on resource here at Bunker Hill, looking at conversion of additional inferred material to an upgrade to indicated status.

14:23 On the development side, we have quite a few technical studies underway. A lot of them are focusing in the areas of processing

14:31 and moving that processing solution to engineered solutions that are construction ready. We're working on options to secure that and de-risk from our processing plant. And we're in several commercial discussions at the moment. And we continue to talk and advance the discussions around the opportunity for toll milling and the generation of pre-production revenue. So really the takeaway is that, the team is hard at work here. We're advancing on multiple fronts.

15:08 And just to circle back around to the London Mine joint venture and the opportunity that it presents there, that is absolutely, I think, demonstrates our commitment to the vision of the company and positive progress towards beginning to build a very robust growth portfolio that we can move forward on in the larger context of the company looking beyond Bunker Hill. But just to reinforce, you know, the team's focus is still very much on Bunker Hill and we have a lot of work going on and there's going to be a lot of exciting news coming out in the coming weeks and months. So thank you very much and absolutely willing to

15:55 to answer any questions that any might have either on London Mine or on Bunker Hill more generally. Thank you. Great, thank you guys so much for the updates. We're gonna move into the live Q&A. So if anyone has any questions, feel free to submit them now. But to kick things off, what are each of you most excited about and what should attendees consider to be the main takeaway from today's summit?

16:21 I think I'll start. You know, what I'm most excited about is that is that the partnership aspect that this London Mine joint venture represents, you know, it's a representation that, you know, that the business thesis and the and the vision and strategy of the company is coming into fruition. So we've talked quite a lot over the last year about our vision to create a company that creates value across the whole stakeholder spectrum, shareholders, local communities and the environment by going in and addressing head-on the challenges

17:08 that surround historic mining districts and mineral endowments. I think that this is a tangible demonstration that there is value in that strategy, in that approach. And it also demonstrates the value in partnerships and couldn't ask for a better partner along this journey than Minewater. And I think that it's pretty exciting

17:37 about the opportunity and where we're gonna be able to go as we move forward. Absolutely, anything to add, David? Sure, yeah, I mean, I'm most excited about getting this company into positive free cash flow and I think that's very achievable and I think what you see on the page, particularly at the top of the page, is exactly how we get there and that's what we're laser focused on doing And I'm looking forward to getting these catalysts across the line, because I think that's when the market is really going to realize even more than it's starting to, that this is, I think as Sam puts it very well, we're not an exploration company. We're a development company, a Brownfields development company, and we're going to be a producer in about 2 years. And so that's that's what most excites me.

18:24 Great, Richard.

18:27 Yeah, thanks. I think Sam and David have outlined it. I just want to emphasize that what this creates is increased optionality in our stock. We have a plan to bring Bunker Hill into production. Dave has outlined that we are seeking project finance for the majority of that. And that process is going well. If you make the assumption that that process executes well and we deliver on that, what you as an investor will then be wanting to know is what additional value beyond that base case is this company going to generate? We've spoken before about the high-grade silver that will be unlocked at depth at Bunker, and you'll expect that to come in.

19:15 You also know that we're doing geophys surveys of potential new areas for exploration offset from the existing mining areas at Bunker and you should expect those results and feedback from that to come through soon. And what this London Mine joint venture does, structured so that the exploration can be funded at a time that suits the company, we've got 4 years in which to exercise that right, is you'll see not just gold exploration, which is clearly going to be interesting from London's joint venture, but there's also base metal and other opportunities in that district.

20:04 So with that, you can see that there is, we are building, and this is the first of a number, we'll be building a portfolio of growth options outside the bunker envelope. So I'd say the big takeaway from here is watch this space. Not only are you going to be seeing us deliver on bringing bunker into production in the most efficient way for equity holders, but you're also gonna see us carefully selecting opportunities for growth within an outside bunker. So you're going to get a lot of upside optionality. Great. Thank you so much. So we have a bunch of questions here. First one is from Rob. He's asking, are there any back office or in the field synergies that can be achieved in operating both properties?

20:57 Yeah, I'll take that question. I think that when you're talking synergies, the idea of synergies is around a lot of times is there overlap that can be eliminated. And I think when you look at Minewater and you look at Bunker Hill, we are both very efficient companies to begin with. When David and I are talking to you, when you talk about a back office, There really isn't a back office. You know, we run the mine and we are in our, and we are the back office as well. So, you know, when we talk about how are we going to approach the, you know, the London Mine joint venture and how are we going to move that forward. You know certainly you know the the geology team here will be able to take the first steps and and consolidate all of that historic data and work on building a geologic model and a geologic understanding. That's a process that we went through at Bunker Hill. That's a process that we're familiar with. And that's a process that we will, that we are embarking on now.

22:14 So, you know, from a Synergies perspective, you know, that, you know, you're talking about 2 very focused, highly efficient companies to begin with, they're certainly, Minewater is going to be able to provide a lot of assistance and bring to the partnership experience in the local area. I'd also add to that, Sam, to emphasize this point of partnership. Mine Water, Joe Harrington's network for the Western United States and Canada with respect to understanding which mine sites can be best managed from a sustainability point of view, these are closed sites, is exceptional.

23:05 And we've got to know Joe over a very long period of time. He's working with us at Bunker on the water management efficiencies. So the synergies that's most interesting to me is the combination of Sam and team's mining expertise with Joe's sustainability and water management expertise. So you're gonna have synergies of excellence upfront. And again, we can manage the costs and the delivery of that excellence quite efficiently between the 2 very small companies. Great, thank you. Kathy's question is, can you speak to what part of this venture will enter into Lake County or impact the Leadville Mining District?

23:54 Cathy, thank you for your question. And I think that what's important to understand is that we are at the start of an ongoing project. And the first part of that project is to really understand the geology and the opportunities. So I think, at this point, it is really premature to forecast just exactly what the ultimate operation will look like. But certainly what I can say is that Along that process, there will be extensive engagement and with local communities and interested shareholders and stakeholders. So, I think, you know, I can't speak to what the, what the, and how extensive the areas are that we're going to be operating but needless to say it will certainly just as it has been here at Bunker Hill a collaborative inclusive process as we move forward.

25:03 Thank you. Jim's question is, what is the mineralization of the ore? Is there galena mineralization? Jim, thank you very much. It's a high sulfidation mineralization, so you know there is opportunity and there is a historic base metal going to mineralization within the district. That's not our primary focus initially. Our primary focus initially is the hydrothermal gold mineralization along the London Fault system, but there is certainly a wide range of mineralization opportunities that exist.

25:51 Great, thank you. So Todd's question here is asking, as a shareholder, I ask why you have not focused on the lead ore in upper Bunker Hill workings as your initial milling material? Well Todd, I can speak to exactly the approach that we've taken. So right from the start of the mine, you know, we inherited and our focus has been the SEC compliant reserve that existed and was being mined when the mine went into closure in the early 1980s. When we look at that, We've done extensive technical work around what is the best approach to resuming mining operations.

26:39 And we believe that the mine plan that we have is certainly robust. I think that plays out in the economics, certainly this most recent PEA, where you're seeing double digits improvements in NPV, operating margin, all of the key financial metrics. I think we have the right plan, and that's the right balance of scale, productivity, and what the existing resource has to offer. Now, that being said, we certainly agree with you that we see certainly a lot of upside potential and exploration potential in the upper areas of the mine. We're working on that. And certainly the intent, as we've always stated, is to move from a zinc dominant resource, right now around 70% of that revenue stream is zinc in nature, to a more balanced revenue mix and more in line with the historical production at Bunker Hill, which is more 50% silver revenue and 50% revenue generated from the base metals.

27:42 So, what we're doing is we're approaching the mine and the resource that we have to deliver the optimal economic outcome. And along the way, we're certainly looking to leverage the upside potential of lead and silver resources throughout the mine horizon, but certainly that includes in the upper areas of the mine as well. Great, thank you so much. We have a question here, are there any takeaways from the silver symposium last weekend? Well, it was a fantastic symposium and we certainly enjoyed hosting a visit from some of the participants in that symposium here at Bunker Hill.

28:30 It was great to have some visitors to site. We certainly enjoy hosting guests here at the site and having the opportunity to talk more about our company and the program and the project. And if there's any of the attendees that are on this call, we certainly enjoyed hosting you. It was a great symposium from my perspective. Dave? I would echo that. So I was at the booth and there were perhaps maybe some viewers here that I spoke with. And welcome to the call and thank you for the opportunity to bring you up to speed on the story. I mean, I was really just struck by, you know, the amount of enthusiasm and interest and all the stories. I mean, this is, this Bunker Hill mine is just such a foundation of the county and the local area and, you know, I'm humbled by the opportunity to be a part of bringing this iconic mine back and It's just great to see anecdotally all the support and all the interest and enthusiasm for everything we're doing here. So it was, from my perspective, it was a phenomenal conference.

29:42 Perfect, well, I think that's a great note to wrap up on. Thank you so much to Sam, David and Richard for the update and taking us through the live Q&A. We also thank you to everyone who joined us today and asked great questions. If you do think of another question after the summit, we will be sending out a short survey where you can leave your contact information and the Bunker Hill team will be happy to follow up with you directly. You can also find more information at bunkerhillmining.com. A copy of this presentation is available under the handouts tab and this presentation has been recorded and will be uploaded to 6.com afterwards. But for the final word, I'll pass it back to you, Sam. I just want to thank everyone for tuning in today and letting us talk about what we think is a really exciting advancement.

30:35 You know, you're beginning to see our vision become crystallized. You're seeing that pipeline of growth being established. And we're excited about this opportunity.