TERTIARY MINERALS PLC - Building and Developing a Multi-Commodity Project Portfolio - Precious Metals, Base Metals and Industrial Minerals.

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TERTIARY MINERALS PLC - Building and Developing a Multi-Commodity Project Portfolio - Precious Metals, Base Metals and Industrial Minerals.
Company Presentation
                                            August 2019

TERTIARY MINERALS PLC
Building and Developing a Multi-Commodity
Project Portfolio – Precious Metals, Base
Metals and Industrial Minerals.
TERTIARY MINERALS PLC - Building and Developing a Multi-Commodity Project Portfolio - Precious Metals, Base Metals and Industrial Minerals.
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 This Presentation is being supplied to you solely for your information. This Presentation has been prepared by, and is the sole responsibility of, Tertiary Minerals plc (the “Company”). The directors of the Company
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 Notwithstanding the aforesaid, nothing in this paragraph shall exclude liability for any representation or warranty made fraudulently.
 January 2019

Company Presentation August 2019                                                                                2
TERTIARY MINERALS PLC - Building and Developing a Multi-Commodity Project Portfolio - Precious Metals, Base Metals and Industrial Minerals.
Board of Directors

                            Patrick Cheetham, Chairman
                            •    Geologist.
                            •    37 years’ experience in mineral exploration.
                            •    32 years’ experience in public company management.
                            •    Founder of the Company, Dragon Mining Ltd, Archaean Gold NL and Sunrise
                                 Resources plc.

                            Richard Clemmey, Managing Director
                            •    Chartered Engineer.
                            •    25 years’ experience in developing and managing mining/quarrying projects
                                 worldwide for Derwent Mining, Lafarge, Hargreaves (GB) Ltd, Marshalls plc and
                                 CFE.
                            •    Board Director since May 2012.

                            Donald McAlister, Non-Executive Director
                            •   Accountant.
                            •   Previously: Finance Director at Mwana Africa plc, Ridge Mining plc and Reunion
                                Mining. Currently: Finance Director of ZincOx Resources plc
                            •   24 years’ experience in all financial aspects of the resource industry, including metal
                                hedging, tax planning, economic modelling/evaluation, project finance and IPO’s.
                            •   Founding director of the Company.

Company Presentation August 2019                                3
TERTIARY MINERALS PLC - Building and Developing a Multi-Commodity Project Portfolio - Precious Metals, Base Metals and Industrial Minerals.
Project Portfolio

   USA                             European            Storuman
                                                       Fluorspar
 Projects                          Projects
                                         Lassedalen
 Pyramid Project                           Fluorspar
         Gold

                      MB Project
                       Fluorspar

                                                               Rosendal
                                                                   Tantalum

                                       Head Office
                                       Macclesfield                  Kiekerömaa
                                                                    & Kaaresselkä
                                                                         Gold

       Paymaster Project
 Zinc-Copper-Lead-Silver-Cobalt

Company Presentation August 2019   4
TERTIARY MINERALS PLC - Building and Developing a Multi-Commodity Project Portfolio - Precious Metals, Base Metals and Industrial Minerals.
Pyramid Gold Project - Nevada, USA

                                       •   Nevada – 5th largest gold producer in
                                           the world

        Reno                           •   #1 most desirable mining jurisdiction in
                                           the world – Fraser Institute

                                       •   Excellent infrastructure - adjacent to
                                           sealed highway, 25 miles NW of Reno,
                                           Nevada.

                                       •   In productive Walker Lane epithermal
                                           gold/porphyry copper belt – host to
                                           numerous multi million ounce gold and
                                           silver deposits

                                           e.g. Goldfield (4.2Moz Au)
                                                Comstock (8.3Moz Au, 192Moz Ag)
                                                Tonopah (1.8Moz Au, 180Moz Ag)

Company Presentation August 2019   5
TERTIARY MINERALS PLC - Building and Developing a Multi-Commodity Project Portfolio - Precious Metals, Base Metals and Industrial Minerals.
Pyramid Gold Project – Licence Holdings

                                   9 Patented Claims held under 20 year
         Reno                      lease/purchase option (patented
                                   claims have private land status)

                                   25 unpatented claims staked by
                                   Tertiary

Company Presentation August 2019   6
TERTIARY MINERALS PLC - Building and Developing a Multi-Commodity Project Portfolio - Precious Metals, Base Metals and Industrial Minerals.
Pyramid Gold Project – Historical Exploration

                                                   •   Prospector scale workings with little historical
                                                       record from late 19th/early 20th century

                                                   •   Battle Mountain Gold Explored in 1980s carried
                                                       out:

                                   Ruth Mine             •   Surface rock sampling:

                                                             43 widespread historical surface
 Western                                                     samples assayed up to 7.27g/t Au,
                                                              average 1.3 g/t Au
 Line
                                                         •   Soil sampling over area approx. 600m by
                                                             600m

                                                             Cohesive and open ended gold-in-soil
                                                             anomalies including cohesive 750m
                                                             long open-ended gold-mercury-arsenic soil
                                                             geochemical anomaly on “Western Line”

                                                         •   10 drill holes, 8 in Ruth Mine area, 2 on
                                                             “Western Line”

Company Presentation August 2019               7
TERTIARY MINERALS PLC - Building and Developing a Multi-Commodity Project Portfolio - Precious Metals, Base Metals and Industrial Minerals.
Pyramid Gold Project – Historical Drilling
                                        •   Battle Mountain drilling focused on Ruth Mine
                                            area - best result 1.5m grading 1.64 g/t Au

                                        •   Only one hole effectively tested Western Line ~
                                            PYR 9:

                                              ▪   1.52m grading 17.8 g/t Au from 94.5
                                                  down hole

                                              ▪   Ended in 1.52m grading 2.6 g/t Au at
                                                  115.8m depth in wide alteration zone

                                       Ruth Mine

             Western Line

Company Presentation August 2019   8
TERTIARY MINERALS PLC - Building and Developing a Multi-Commodity Project Portfolio - Precious Metals, Base Metals and Industrial Minerals.
Pyramid Gold Project – Soil Anomalies

      ARSENIC
                                   GOLD
                                              MERCURY

Company Presentation August 2019          9
TERTIARY MINERALS PLC - Building and Developing a Multi-Commodity Project Portfolio - Precious Metals, Base Metals and Industrial Minerals.
Pyramid Gold Project – Western Line Target
                              WESTERN LINE:
                              Priority drill target based on:
                              •   Historic workings
                              •   750m+ long, open ended, coincident multi-element
                                  soil anomaly
                              •   Drill hole PYR 9:
                                  1.52m grading 17.8 g/t Gold from 94.5 down hole
                              •   Wide alteration zone

 Western Line Mine workings
                                              Wide alteration zone on Western Line
 Looking
Company    south July 2019
        Presentation
                                     10
Pyramid Gold Project - Nevada,USA
Planned Exploration 20191
•   Soil geochemical sampling programme – to extend open anomalies
•   IP/Resistivity geophysical survey – to define ore channels
•   Drilling programme - to test Western Line target

Company Presentation August 2019             11
Paymaster Polymetallic Project - Nevada, USA
                                                                  •   19 claims staked
                                                                  •   Mineralisation
                                                                      intermittently exposed
                                                                      and sampled over 1.7
                                                                      km strike length

                                                    East Slope    •   Grab samples assay
                                                    Prospect          up to 21% Zn, 6.5%
                                   Valley                             Pb, 3.3% Cu, 253 g/t
                                   Prospect                           Ag and 0.11% Co
                                                                  •   165 soil samples taken
                                                                      in March 2019 –
                                                                      significant elevated
                                                                      levels of Ag, Cu, Zn,
                                                                      Co and Pb:
                                                                        ▪   Ag: 17.5 ppm
                                                                        ▪   Cu: 896 ppm
                                                                        ▪   Zn: 872 ppm
                                                                        ▪   Co: 33 ppm
                                                                        ▪   Pb: 2,251 ppm

    Follow up prospecting in May 2019 identified two prospects for follow up work
                           East Slope & Valley Prospects

Company Presentation August 2019              12
Paymaster Project – East Slope Prospect

                                        East Slope Prospect:
    15.8% Zinc, 95 g/t Silver
                                        •   Chip sample c. 2m @ 15.8% zinc
                                            & 95 g/t silver

                                        •   Associated zinc soil anomaly - 600m long

                                        •   Work planned:
                                             •   Infill soil sampling
                                             •   Magnetic survey
                                             •   Follow up drilling as required

Company Presentation August 2019   13
Paymaster Project – Valley Prospect
Valley Prospect:
Large outcropping skarn zone – c. 350m long and up to 8m thick

                                             Mine shaft on skarn
                                             Waste material sampled:
                                             11.8% zinc+lead, 180 g/t silver

                         Work planned:
                         • Magnetic survey
                         • Detailed mapping & sampling
                         • Drill targeting

                                    14
Fluorspar – A Strategic Mineral

    Company holds three Fluorspar deposits with defined Mineral Resources
•     Fluorspar is the commercial name for the mineral
      fluorite, composed of calcium and fluorine (CaF2)
•     Fluorspar is the predominant commercial source for
      the chemical element fluorine
•     Fluorine is a STRATEGIC non-metallic element and
      the lightest of the halogens and is therefore largely
      irreplaceable
•     Two principal commercial grades:
         ➢ Metallurgical grade/Met-spar (60-96% CaF2)
         ➢ Acid grade/Acid-spar (+97% CaF2)

    Company Presentation August 2019                          15
MB Fluorspar Project - Nevada,USA
Highlights
•      Phase 1, 2 & 3 drilling programmes
         ▪    35 holes, 5,736 metres
•      Large JORC Compliant Mineral Resource Estimate
    Classification                Million Tonnes (Mt) Fluorspar (CaF2%)
    Indicated (9% CaF2 cut-off)                     6.1                 10.8
    Inferred (9% CaF2 cut-off)                     80.3                 10.7
    Total                                          86.4                 10.7

•      Phase 4 drilling programme completed following
       JORC Mineral Resource Estimate
         ▪    4 holes, 1,553 metres - significant lateral and depth extension
              of fluorspar mineralisation proven in the Western Area

•      Key Opportunities and Challenges:
          ▪   Metallurgical testwork has indicated that part of the open-pit ore is metallurgically
              complex, presenting certain processing challenges
          ▪   Company has engaged the services of one of the world’s leading consultant fluorspar
              metallurgists to assist with the testwork
          ▪   Project sensitive to transport distance/cost to market
          ▪   Targeting potential for higher grades to the north-west of deposit following field appraisal
              by world renowned geologist Dr Richard Sillitoe.
Company Presentation August 2019                                   16
Storuman Fluorspar Project - Sweden

Positive Scoping Study – Scott Wilson
•   Low Capex: US$ 46 million
•   Average annual T/O: >US$ 34 million
•   Pre-Tax NPV (8% coc): US$ 33 million
•   IRR (100% Equity): 24%
•   Payback:
Lassedalen Fluorspar Project - Norway
Highlights
•     Positive Scoping Study (Wardell Armstrong International) – 2012
                                                                      Base Case           Extended Mine Case
    Tonnage Mined (Underground)                           3.6mt @ 22.4% Fluorspar          4.5mt @22.4% Fluorspar
    Mining Rate                                                        543,000 tpa                     543,000 tpa
    Acid Grade Fluorspar production/year                               100,000 tpa                     100,000 tpa
    Mine Life                                                            6.6 years                      8.25 years
    Initial Capital Cost (Capex)                                    US$ 78 million                  US$ 78 million
    Pre-Tax NPV (10% coc)                                         US$ 31.6 million                US$ 52.2 million
    IRR (100% Equity)                                                      20.20%                          24.10%

                                                                  •   JORC Mineral Resource Estimate (SRK
                                                                      consulting)
                                                                  •   Re-logged and sampled 3.5 km of drill core from
                                                                      23 of the 28 diamond holes drilled in the 1970’s

                                               JORC Mineral Resource Estimate
                                               Classification           Million Tonnes (Mt)       Fluorspar (CaF2% )
                                               Inferred                                    4                      24.6

                                                       18
Strategic Relationship -                                Possehl Erzkontor GmbH& Co. KG

Memorandum of Understanding (“MOU”) signed with
•   Highlights and Key Terms:
      ▪   Possehl and Tertiary intend to enter into a definitive purchase and sales agreement (“Offtake
          Agreement”) for a minimum of 70% of Tertiary’s acid-grade fluorspar production

      ▪   Possehl will provide part of the pre-financing to Tertiary for working capital needs and/or its
          capital investment needs for the development of its fluorspar projects

      ▪   The MOU provides extends to any near-term revenue generating fluorspar acquisition targets

      ▪   Possehl will provide invaluable commercial and logistical support and advice to Tertiary during
          the development of its fluorspar projects

      ▪   Possehl, founded in 1915 with headquarters in Lübeck, Germany, is owned by CREMER:
          (Founded in 1946; headquarters in Hamburg; circa 70 branch offices and holdings worldwide; circa
          1800 employees; annual revenue of >3 billion Euro; sales volume of >10.4 million tonnes in 2016)

      ▪   Possehl continue to support Tertiary with the development of its fluorspar assets and
          evaluation of new projects in the pipeline

Company Presentation August 2019                       19
Royalty Interest Project

Kaaresselkä & Kiekerömaa - Gold, Finland
•    Two legacy gold assets in Finland sold to TSX-V listed Aurion Resources Ltd
•    Aurion is a Canadian listed (TSX-V: AU) exploration company 8% owned by Kinross Gold
     Corporation and primarily focusing on the development of its Finnish gold projects.
•    Deal Highlights:
       ▪ Received £100,000 initial consideration paid by Aurion: £15,000 in cash and £85,000 in
         Aurion shares – sold in Nov 2017 resulting in a profit of £31,264
     Tertiary retains royalty interest in the projects:
       ▪ Pre-Production Royalty on definition of a NI 43-101 (or equivalent) Code compliant
         Minerals Resource Estimate on either project:
            ▪ US$1.00 – US$2.00 – US$3.00 ounce gold: Inferred-Indicated-Measured Mineral
              Resources
       ▪ Net Smelter Returns Royalty (NSR) of 2% on all future gold production from either
         property (Aurion can purchase 50% of the NSR from Tertiary for USD$1,000,000 at any
         time prior to commencement of commercial production on either project

Company Presentation August 2019                    20
Summary

 • Turnaround Strategy to:
       •   Build and develop multi-commodity project portfolio – Precious metals, Base Metals and Industrial
           Minerals

       •   Reduce future geographical, technical, permitting and commodity risk exposure

 •   Exciting new polymetallic project portfolio - Paymaster and Pyramid

 •   Additional project acquisitions in the pipeline – focus on low cost claim staking

 •   Three 100%-owned fluorspar assets strategically located in the USA and Europe: 13.1 million tonnes
     contained fluorspar (CaF2) resources (JORC classified) - advancing through mine development cycle.
     Current Fluorspar price approx. $500/tonne

 •   Strategic relationship and MOU signed with leading global commodities trading group, Possehl Erzkontor
     GmbH & Co. KG – MOU provides for intention to enter into Offtake Agreement and associated partial pre-
     financing

 •   Potential future revenue: Retained Royalty interest in Finnish gold projects

Company Presentation August 2019                        21
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