Titan Mining Corporate Update

0:08 Okay, as folks are filtering the room quite quickly, I'll say good morning, good afternoon, good evening, depending on where in the world you're signing in from today. Did see at least 8 time zones reflected in today's list, so thanks so much for joining us. I've got with me today Rita Adiani and Joel Rowe, who are coming to us live from Empire State Mines in Governor, New York. Rita, Joel, how are you both doing today? Very good, thanks for having me. Awesome. So here's how today's going to work for everybody that's in the room. I've got some questions for the Titan team that I'll be posing. I know they've got some slides to give some additional context for it. But today's also an interactive event. So this is a live chat in the bottom right of your screen. You can feel free to click that button and ask questions at any time during today's event. I'll make sure that if we don't get your questions for whatever reason that they go directly to the Titan team and they can get back to you afterwards. But I'll try to get to as many as we can today and please do ask them at any point during today's event. I'll say that today is being recorded and that replay will be available in the mid-afternoon Eastern time. It will pop right in your inbox but also be available on Six's YouTube channel and on this exact same link that you're on right now. But that's enough out of me. I'm eager to get into the protein of today's event. So Reid and Joel, I want to start with financial performance and outlooks.

1:14 I know this is an update for Titan Mining. So with Zinc operations already cash flow positive and 2025 guidance showing up to those 15% production increase with lower unit costs, and I'll throw this to you Joel first, how should investors be thinking about

1:27 the growth profile here?

1:30 Thank you Roman. Yeah, well I'm happy to report that 2025 has kicked off very well for us. We've put in 2 solid quarters of performance represented by our operating statistics that were recently released.

1:49 Our tonnage's throughput has been up by about 7%. Grades are about even compared to last year. And Our production is up about 6% year over year in that first period. We've spent a little bit of time developing a new mining zone in the first half and we've just started bringing that online. So we're expecting that will ramp up from 250 tonnes to 500 tonnes in the second half

2:28 of 2025. And that will, we believe, bring us right in line with our guidance for the year. As that rolls forward into 2026, we'll see a consistent full year impact of the new mining zone. And yeah, looking forward to continued growth in 2026. Yeah, thanks. Thanks for that, Joel. I think, I mean, insofar as it comes to costs and, you know, the cash flow being generated from the existing operations. As is up on screen, our ASIC was effectively in at about 90 cents, 0.93 for the first half of 2025.

3:15 We looked at an average zinc price of about 1.29. So in terms of our margins, we certainly are around the sort of 25%. And that's obviously in the given broader landscape where zinc prices have been affected just like other base metals with tariff uncertainties. And as we see that easing up towards the back end of the year with some definitive changes being made on tariffs the impact on the U.S. Dollar and all the other macro economic events

3:46 we certainly see cash flow generation improving. And really for us, the real benefit of being an investor in Titan is you get to benefit from a mine, which is cash flow positive, as we said, is an operational side, but has a huge growth trajectory in front of it. And hopefully we can talk about that a little bit more. But Romeo, I think that sort of is the background of where we're coming from in respect of, you know, the available cash to fund the growth operations.

4:16 No, absolutely. I appreciate that very much. I do actually talk about growth next. So that's convenient. I want to take a quick look into both resource expansion but also long term vision for Titan because you look at the Kilborn resource with only 30 percent of the trend tested so far as I understand it And the broader 120,000 plus acres of mineral rights. Curious and Rita I'll start with you first. What's the long term vision for Titan. Can we see multiple graphite operations or a zinc resource expansion over the next 5 10 years. Well I think I mean certainly and Joel will speak to it in a little bit more detail, I think Kilbourne, the resource itself for Kilbourne was drilled very, very, very carefully with an intention in mind to stay within our active use permit, but that in no shape or form sort of restrains us on the exploration upside.

5:04 And maybe Joel can talk about it a little bit more as we get through this, but for certain I think we see growth and expansion coming through from Kilborn, but also on the zinc side from near mine targets, which go directly into production, and other, you know, regional targets, which have been part of our exploration

5:25 efforts, at least in this year and in years past, which, you know, do have real potential for new big discoveries. But maybe, Joel, I can hand it over to you to speak a little bit more about Kilbourn in particular and then the zinc.

5:39 Sure, thanks, Rita. So yeah, looking at the screen here, The purple constrained resource there is our first run. And that was all drilled out based on the idea of staying on our own active use permit. We do have the mineral rates, both heading south and heading northeast. And the region that we're really excited about is towards the northeast, where we're going to be getting busy very soon on drilling there. And in order to, we believe we'll expand that resource inside that orange outline that's visible on the screen and that red arrow that says 8,000 feet open in that direction.

6:29 So yeah, that's I think the exciting part there with the Kilborn resource. We've already defined 22 million tons in average grade of just under 3%. And from there, we're building our technical report.

6:48 But yeah, there's still a lot of upside we believe to go here. Great. I did want to get into, if you wouldn't mind, unless you had additional commentary, Rita, sorry, I didn't mean to interrupt you. Oh, perfect. I do want to talk about capital allocation strategy for a second. I know there's recent news about the Ex-Im loan. I'm curious, Rita, if you could provide just a bit more color on the loan that Ex-Im entered into. I believe it was last month. Yeah, sure. So I think, Romeo, for us, the EXIM loan has been

7:20 part of a wider strategy of engagement with the federal government. I think we're all very cognizant that it's us, EXIM, I'm sure the wider community is cognizant of the fact that on-shoring some of these domestic, you know, these domestic mines, which really carry critical minerals, including graphite, does require some amount of federal support. And that's largely because, obviously, 100% of the import is today coming from China, which does actually have significant cost advantages and a lot of state support. So our strategy, given that we are an operational mine, we do have cash flow. We engaged early with Ex-Im under the Make More in America program,

8:02 under which they really specifically wanted to support us for expanding our zinc operations. And that is what the 15 million dollar for said facility is really targeted to its 15.8 million dollar. That will help you know with infrastructure improvements with capital upgrades effectively required for our underground mine. But a big function of that is really the more cash that we can generate from our zinc operations, the more available cash there is for graphite, particularly as we think about the development plan and the equity that in the future may be required to

8:36 fund a larger scale project. So the way we kind of think about it, this is the first tranche of non-dilutive capital which we have, which we have been able to bring on our side. And obviously it wasn't easy and we really value our partnership with Ex-Im because we were their first mining deal. So there was a big learning curve on both sides. But I think we are gonna benefit from the partnership going forward, not only by having, have worked with the federal agency, have the support and have the endorsement, but this is non-dilutive capital. So the terms of it, you know, we're very fair, we're very competitive. We're looking at a 7% effective rate of interest and we're looking at a 7 year term. So I think it serves us twofold. One is obviously brings a non dilutive capital but allows us really to generate more cash flow

9:26 which will sort of help us pay for growth. No it's great. I do want to zoom out a bit and just talk about your strategic asset positioning for a second, particularly in graphite. I know with Titan positioned to become the first integrated U.S. Natural flake graphite producer since the mid 50s, 56. How are you approaching customer qualification and securing those offtake agreements. I'm curious, what specific advantages does domestic production provide for winning over, you know, those Chinese competitors? Sure, so I think, I mean, we have made this public so I can speak to it fairly openly.

10:01 We launched construction on our demonstration facility earlier on in the year and over 50% of the equipment, the large pieces of equipment, major equipment has been delivered already to site, which is why we're all here, because we're working towards installation and commissioning really of that demonstration

10:20 plan for specifically for graphite in 2025. So it is a 1200 ton per annum plant, but has the ability to scale obviously, very quickly subject to customer demand. And the way we really think about Graphite is pretty straightforward because it doesn't really have a trading price like an LME trading price. What we're very focused on is providing that transparency regarding price and demand through product. So what we really want to do, and this has been our execution strategy from day 1, is produce product, produce on-spec product, and

10:55 effectively enter into customer contracts based on the product, and then design a plant which seeks to meet the relevant demand thresholds. So it is a step-by-step approach. And obviously, we believe that when we say we're going to do something, we go out with the first step. And maybe it's not the biggest one, but hopefully, you know, that sets us up very well for success, taking things in a methodical fashion.

11:23 And as, insofar as it comes to, you know, being able to be a domestic producer, Romeo, as you said, you know, there haven't been, there hasn't been a domestic producer for natural flake graphite in a number of decades. So from our perspective, it's a reset for our customers as well, because they don't understand the cost structure that goes with a North American supply chain. They don't understand whether that product will meet their specs or not. So for us, this demonstration plant is a big,

11:52 big step. We've seen on metallurgical test work that we've done, we've seen some great results come through, which is why we're confident about taking this next step and our ability to allocate capital towards this. But we're expecting to de-risk both the price as well as the demand side through our demonstration plant. And that will hopefully set us up well for customer contracts and really a new, what we probably see is a new North American supply dynamic.

12:22 Great. I do want to also talk about the production scaling timeline. So I know your corporate presentation shows a path from 1.2 billion ton a year starting H2 25 to potentially 40,000. Can you walk us through just what the milestones are to get through to this expansion. Sure. So as you know as we've mentioned we've already we're already trying to de-risk the price and the product side of the mix which is what you know sort of some of the critical factors really in projects like this, where we, where you don't have price trading transparency. And as we go through the other elements of the project, we will move on through our technical studies, you know, be it pre-feasibility study or feasibility study during the course of 2026. 1, another very important component of this is permitting. We've already engaged with the New York state. We are an operating mine. So we obviously have the infrastructure and the framework

13:18 and we understand the path and we understand the process that we need to follow. So those are the big work streams that will take up our time and energy during the course of the back end of 2025 and 2026. But 2025 really, you know, our goal is to get the demonstration plan up and running, to progress on our technical studies, so that as we go into 2026 and we decide to put dollars down for, you know, further work, we're doing it in a diligent way where we know we can sell the product.

13:50 Perfect. I appreciate that. Those are the questions that I had, but a quite large number of questions came in over email during the presentation. So I'm going to run through as many as I can, but just to focus something in. If we don't get to any of them for whatever reason, I know there's quite a large number. I'll make sure that the Titan team gets them and they'll get back to you at their leisure. So first one, when can we expect to see samples of mined ore with graphite? And will those be part of the PEA?

14:15 I mean, if it's mined ore with graphite, yes. I mean, you will get to see that, but more importantly, Joel, I mean, that's gonna be part of the demonstration plant because we are mining from our demo pit. Yeah, just thanks, Rita. We're fortunate that that unit did come right to surface, was discovered in diamond drilling, but it's a unit that comes right to surface. We've actually cleared the land for the demonstration pit

14:50 all within our permanent area, And we're already drilling and blasting or in preparation for commissioning this plant. Great. Next question that came in, Rita, I assume this one's for you. Will your zinc operations qualify as a critical material and receive a 10% tax subsidy? And if not, how is that credit going to be split between zinc graphite when equipment is shared?

15:08 So, it was a question on zinc, Romeo. Is zinc a critical mineral? Will the zinc operations qualify as a critical material? Yes. So, zinc is a critical mineral. Yes, it is. Both graphite are. But the tax credit, which we're talking about, which is effectively either it's a 48C or a 45C, whichever 1 applies, only applies to refining. It does not apply to extraction and processing. So we obviously don't get the credit for our zinc operations, but because graphite actually has a downstream component

15:38 associated with it, which is what we'll be pursuing with our flow sheet. Yes, it will have the benefit of the tax credit and that's a 45 C tax credit. Perfect. I think that actually tackles one of the other questions that came in, so I think we can move on. One person's asking, when do you plan to list your equity shares on a U.S. Exchange? I think, I mean, you know, we're always looking for opportunities to improve liquidity, to improve our shareholder base. You know, we are a U.S. Asset, so, you know, it's something that we are always looking at. I think it's a path that we're looking to pursue, but I can't say anything today. So I just say, wait and watch. We're trying our very best. Perfect. One person asks, what exploration plans does Titan have beyond graphite? He notes that you mentioned looking for a new trend of mineralization when the additional acreage was acquired. He's curious if it's a gold copper that you're looking for. Yeah, why don't I bring it up Joel, and maybe you can talk to it a little bit more in detail.

16:36 Let me, just give me 1 second if you can see my screen.

16:42 Sure, so the, yeah, We're now up to 120,000 acres of mineral rights. What was recently acquired, you can see on the screen, is the red and the yellow. The large area, large square there with the Parrish target label, and it is a 2025 target. It's an IOCG target, iron or copper gold. There's been some historical reference. We're starting off with some water sampling and geochemistry. And we will be getting boots on the ground there this year to start a larger scale exploration program.

17:31 And we expect that to continue into 2026 as well. So yeah, there's a, there's, there's good potential for other minerals other than zinc and graphite in the area. Awesome. Next question is looking for a specific. So if you've got a ballpark, great. Otherwise I'll make sure you get that question over email. I'm curious how much electricity is consumed at the mine mill and operations and are there further opportunities to electrify your operations?

18:00 Yeah, I don't have the exact number for megawatt usage, but yeah, we're not far from the St. Lawrence River, which generates a ton of hydroelectric. We don't have any restriction on our usage or well within our capacity.

18:22 So yeah, there's nothing to worry about there as far as being any power restricted. Yeah, I think, Bromier, going to your point about electrification, you know, it's always with an underground mind. You always do think about electrification because, you know, the deeper you go, the more ventilation needs to come in. So it is something that we're looking at, but obviously, and it is a part of a trade-off, But, you know, as Joel said, we haven't really had any major issues with ventilation constraints just yet. But as we go through into

18:53 the future, yes, you know, we'll continue to look at these opportunities and hopefully things will only continue to become cheaper from here on as, you know, as technology scale. Sure. One person has a semi-political question, so I apologize in advance. But they're under the impression that currently all zinc concentrated Titan is shipped to Canada for smelting. And they're curious if tariffs or potential tariffs or who knows, tariffs have a negative impact on Titan because of that. So, I mean, first and foremost, critical materials are actually exempt from the current tariff base. So I don't think it's an issue now. The way the way most offtake contracts work and I've been doing this for a very long time and Joel has specifically been doing this with Empire State Mines for a very long time. Usually when you do an offtake agreement, it's the purchaser who needs to bear import duties or any sort of burdens which are associated with it. I mean, we've been working with Blancor now in this operation for 7 years.

19:48 And I think if there are ways to make it easier for them, of course we will, instead of delivering, you know, where we truck it across, if they asked us to deliver it to a port, we would do that. But at the end of the day, does it really make a difference to our business? Our, you know, our transport costs, our refining costs, it doesn't really materially impact us. But will we always work with our partners to make things better for them? Of course we will. Great.

20:14 One person asked, Is there an opportunity to smelt the Zinc ore yourselves as a company? They reference a nice Clarksville as an alternative or.

20:22 Yeah, they're just curious if you can add a smelting operation that gives the thrust of the question. I don't want to take this one. Well, I know that, yeah, we've we've looked at vertically integrating the business before. Right now, that's not part of our plan.

20:38 It doesn't make sense at this 0.1 question is, is there a possibility of adding silver extraction to any future lead mining? I said they noticed the PEA assumed a silver price of $70 an ounce. Obviously it's moved a lot since then. They're curious if that's a tiny fraction of revenue not worth your time or if it's something worth putting some time into. Again, yeah. So the upper portion of the mine, the number 2 unit, actually did have some lead while it was historically mined. That did have a silver component to it. At this point, in the future plans here, there is very little lead to be recovered from the ore bodies. So it's, yeah, we did look at it in previous technical reports and found that, yeah, there's not enough lead and silver by-product to warrant a big investment in a lead extraction circuit.

21:38 Perfect.

21:39 One person asked, what time duration, years of contract, graphite offtake are you attempting to obtain from purchasers? And they're curious, have conversations even progressed to that point yet? The answer would be no, conversations haven't progressed, but we know very clearly what we need from a financing perspective. And I think we're very confident that we can meet those long-term contracts. And long-term obviously means it may be 3 or 5 years subject to extension. So we think we know what we need from a financing perspective. Our approach very much remains, show me the product and then ask for a contract. So as soon as we are able to get our product out, all those conversations will begin.

22:26 And no doubt, we're hopeful that There will be updates on that later on in the year. Perfect, thank you. One person asked, are you intending to apply for DOT grants or Department of Energy, Ex-Im loans in larger quantities to accelerate the expansion of zinc and graphite and allow for further exploration? Yeah, I mean, I think I mentioned that I referenced that as we started the conversation on Ex-Im.

22:50 I think we are looking for definitely federal support and with us, you know, Ex-Im has been a great partner. So we continue to progress that. We have ongoing conversations with the Office of Strategic Capital, which falls under the Department of Defense and other programs within the Department of Energy. And that relates to the graphite operation. If obviously we hit out a massive zinc discovery, which I'm hopeful we can with all the exploration, then we will be talking about expanding the zinc operations. We have a 5000 ton per day mill. So we're very well served on the processing side for zinc. And really what we're focused now is you know that is solving for the capital required for graphite. But the indications we've had are very positive. It really helps for us to be a cash flow positive mind, have track record and, you know, have all the infrastructure set up and have engaged with XMOD with respect to, you know, an ongoing transaction.

23:45 But I think, yeah, we're fairly confident that there is federal support out there for us. Great. A sidebar question, the same person, they asked, will the PEA assume tax credits and government financing terms for the economics of zinc smelting and germanium production? So we're not doing zinc smelting. Germanium production, I'm just not, I mean, yeah, I'm just not sure where that comes from. But in terms of tax credits, to the extent that, you know, we obviously have tax advisors and we've been advised we will be able to assume some tax credits for the refining portion of the graphite business, obviously not for the zinc business, as I mentioned. So, you know, we we expect them to be included. But again, you know, we haven't, we haven't formally concluded on that. Perfect.

24:35 Sorry, a lot of questions, so I'll just keep them up. One person wants to know, does the newly acquired mineral lease rights from St. Lawrence County have an NSR? And if so, what percentage is it? I don't think, yeah, I don't think it was that there wasn't a significant NSR associated with it. Yeah. Great. Just jumping into questions from the live chat. Apologies, there are a lot on email, but I'm just getting you guys now. For the folks that came in late, please do put in chat in the bottom right of your screen. Still time to get some questions in. But one person asked right near the beginning of the hour, how fast can the graphite operation move while the current administration is in office? So, I mean, we have conversations with the White House, you know, on a very, very frequent basis, given our engagement with other federal agencies as well. And I think what we are very focused on and the indication that we've got is, you know, if we can put in front of them a feasibility study with a financing plan, which is accretive, which we believe is possible at this moment, there will be support for that towards the back end of next year.

25:37 That's obviously once we've been through the feasibility study and been able to provide bankable technical plans. And so assuming that is the case, I think we're looking at probably production certainly commencing within the term of this administration. And that remains our focus. Perfect. Kay Zeitzer from the chat asks, is there a plan to take analysts to the mine like Solaris did previously? Yeah, I think that time will come as soon as we have our, you know, our, some of some of our plans ready together. And I think, yeah, that that will be available to us back into this year. I would though say that, you know, September, October is a better time to visit than December. But, you know, we're open whenever people would like to come. That's great. One question, I know you've already tackled it, but it just came up in the chat, so I thought I'd throw it to you again, just for clarity. When can the company get an NYSE or NASDAQ listing?

26:26 I go back to the same point, we're always looking at, you know, alternatives, And obviously if the time comes up and we're able to pursue it and execute it, we will. Perfect. I've got one last question for both of you. Everybody in the room, please take this as your last opportunity to enter questions while I ask them. But I'll ask both of you, starting with you, Joel, what are you most excited about for the rest of this year and going into 2026 for Titan? Well, for the rest of this year, I think we're all laser focused on getting our demonstration plant commissioned and start producing that natural flake graphite product. As Rita had mentioned, this is something that hasn't happened in the United States since the 1950s. Going forward as well, the potential in the area and our ability to implement this graphite plan is truly exciting.

27:24 I think the other thing that's encouraging too is the social license that we have to operate here. We have a very supportive community. We get out in front of our communities regularly to do updates, which they're appreciative of and give them a chance to ask questions. But over, yeah, I live in this community and I know that they are concerned to know what we're doing. And We're building, I think, an exciting future, and we're going to do it right, and we're going to do it safe. It's going to be a lot of fun over the next few years.

28:11 Awesome. Reid, I'll throw it to you. Same question. What are you most excited about? I mean, I think I just look at the size of the opportunity and, you know, we've come a very long way from, you know, having this from concept form to taking it into execution, the graphite. I think it just shows for all of us here that, you know, we have a great team who can execute Joel's book and, you know, to the social license that we have to operate. We're getting inbounds in from the federal government. So at this time, and I think all we're really focused on is execution and delivering everything that we've promised, which we're fairly confident that we'll be able to do. And really the next year for us is, as Joel said, executing, delivering on our milestones, engaging with federal governments and really fast tracking this to the first made in America natural graphite product, which there has been in 70 years, which I have to say the big sense of pride for me and, you know, to see the pride there is in the community.

29:09 Yeah, I mean, I have, we're all very proud of, you know, if we can make this happen. That's Great. 2 questions that snuck in under the buzzer, so I'll throw those to you, and then we'll call it for the day. Somebody asked in the chat, does Titan have historical core for Parrish? No, no, we don't. There's no historical core for Parrish. Super. And Last question, when does Titan estimate they can gain access to Parrish and Drill? That's in our Q4 plan. Perfect. Well, Rita, Joel, thank you so much. I know we absolutely grilled you with questions today. More than I expected. It was great. Thank you so much for being willing to answer. And everybody in the room and those who are watching on replay, thank you so much for joining us. If you have any additional questions, you think of the perfect one right after the event ends, as I usually do. Please feel free to reach out. I'll make sure the Titan Mining team gets it and I'll get back to you as soon as possible. But ReaJoy, Thanks so much. I hope you have a great end to your day. Thanks. Bye-bye.

30:03 Cheers.