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CORPORATE PRESENTATION
January 2019
TSXV: PRZ
OTCQB: PRZFF
FSE: MQSP
COPPER IN MEXICO AND
GOLD IN BRITISH
COLUMBIA
Cautionary StatementFORWARD LOOKING STATEMENTS
This presentation contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws. These forward-looking statements may include statements regarding the successful completion of financings by the Corporation, the perceived merit of properties, exploration results and budgets, mineral resource estimates, the potential to increase estimated minerals resource work programs, capital expenditures, operating costs, resource estimates and similar statements relating to the economic viability of a project, timelines, strategic plans, including the Corporation’s plans and expectations relating to the Manto Negro Copper properties (collectively, “Manto Negro”), the Kena and Daylight Gold-Copper properties (collectively, “Kena”) and the Toughnut property in the Nelson area of British Columbia and market prices for precious metals, or other statements that are not statements of fact. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Statements concerning mineral resource estimates may also be deemed to constitute “forward-looking statements” to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Forward-looking statements and forward-looking information are not guarantees of future performance and are based upon a number of estimates and assumptions of management at the date the statements are made including without limitation, assumptions about: future prices of copper, gold and other metal prices, the success of proposed exploration and development activities, successful exploration and development of the Manto Negro, Kena and Toughnut properties, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, government regulationof the Corporation’s activities, environmental risks and expenses, labour stability, stability in market conditions, availability of sufficient equipment and labour, accuracy of any mineral resources and anticipated costs and expenditures and the Corporation’s ability to achieve the Corporation’s goals.
While the Corporation consider these assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual performance, achievements, actions, events, results or conditions to be materially different from those projected in the forward-looking statements, including price volatility of the Corporation’s securities, further potential of the Corporation’s properties, the need for additional capital and the Corporation’s ability to raise additional funds, land title issues and risks, local community issues, the estimation of mineral resources, conclusions of economic evaluations, the realization of mineral resource estimates, the timing and amount of estimated future production, quality and marketability of mineral product, limited lives of mines, reclamation obligations, the costs of production, capital expenditures, mining or processing issues, currency exchange rates, government regulation of mining operations, environmental risks, risk relating to infrastructure, permitting and licenses, litigation, mining tax regimes, insurance and uninsured risks, competition, adequacy of financial resources, no historical production or revenues therefrom, dependence on outside parties, dependence on key personnel, conflicts of interest and other risks of the mining industry and those factors disclosed under the heading “Risk Factors” in the Corporation’s documents filed from time to time with the securities regulators in the provinces of Canada. This list is not exhaustive of the factors that may affect any of the forward-looking statements. Forward-looking statements are statements about the future and are inherently uncertain, and the Corporation’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of the Corporation, or industry results, may vary materially from those described in this presentation. In addition, a number of other factors could cause the actual results, performance or achievements of the Corporation to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements.
The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Corporation at the time of preparation, may prove to be incorrect and readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Corporation does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
Any financial outlook or future-oriented financial information as defined by applicable securities legislation has been approved by management of Prize Mining as of the date hereof. Such financial outlook or future-oriented financial information is provided for the purpose of providing information about management's current expectations and goals relating to the future of Prize Mining. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Scientific And Technical Disclosure
Richard Dufresne, P. Geol., Prize Mining Project Manager, is a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, and has reviewed and approved the scientific and technical information in this presentation.
All technical and scientific information with respect to the Manto Negro Property contained in this presentation has been taken from the technical report (the “Manto Negro Technical Report”) entitled “Technical Report Manto Negro Property Coahuila State, Mexico” dated March 26, 2018 with an effective date of March 14, 2018 prepared by Norwest Consultants Ltd. of Calgary, Alberta on behalf of Prize Mining or is based on supporting documentation provided by Norwest and has been reviewed and verified by Derek Loveday, P.Geol., or William A. Turner, P. Geol., each of Norwest and Qualified Persons. A copy of the Manto Negro Technical Report is available on the Prize Mining website at www.prizemining.com or on SEDAR profile of Prize at www.sedar.com.
All technical and scientific information with respect to the Kena Project contained in this presentation has been taken from the technical report (the “Kena Technical Report”) entitled “Technical Report for the Kena Project, Nelson, BC” dated June 2, 2017 with an effective date of January 7, 2017 prepared for Prize Mining Vivian Park, P.Geo., VPG Geosciences, and Gary H. Giroux, P.Eng., Giroux Consultants Limited (Ltd.) or is based on supporting documentation provided by either of Vivian Park or Gary H. Giroux and has been reviewed and verified by either such person, each Qualified Persons. A copy of the Kena Technical Report is available on the Prize Mining website at www.prizemining.com or on SEDAR profile of Prize at www.sedar.com.
This presentation discloses mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
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Introduction
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• Highlights and Corporate Introduction
• Manto Negro Copper Project
• Kena Gold Project
• Near term focus and opportunities
Highlightso Manto Negro Copper Project
o High grade district-scale copper project in Coahuila, Mexico
o Sediment-hosted stratabound copper deposit, analogous to world class Kupferschiefer deposits in Europe
o Grades at surface from 1% to over 5%
o 17,965 hectares of land, 100 % owned, no royalties, 30+ high grade showings over a 45 kilometer trend
o Kena Gold Silver Project
o NI43-101 Gold Resources of 481,000 oz Indicated and 1,318,000 oz inferred in SE British Columbia, Canada
o The Company and the Team
o Expert management and board with proven success of creating shareholder value by building valuable mining companies around the world
o Active programs underway in both Mexico and British Columbia
Prize Mining Team
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Michael McPhie, B.Sc., M.Sc., QEP - President and CEO, DirectorMining industry executive with over 20 years international experience developing projectsfrom early exploration to full operations. Former Managing Director of JDS Copper,President and CEO of Curis Resources, Director and Executive Vice President ExeterResources and currently Chair of the Board of IDM Mining Ltd. and Ridley TerminalsCorporation.
Raul Ramirez, BA – DirectorOne of two principals of Scion Mines SA de CV, which was purchased as part of the MantoNegro acquisition. President and CEO of Molycomex, a private Mexican corporation involvedin mining exploration in Mexico. Founding shareholder of Mexican Silver Mines and VPOperations prior to merger with Rio Alto.
Jose Avina, BA – DirectorJosé has more than 20 years of administrative and finance experience within a range ofdiverse sectors. He supervised administrative and financial processes for insurance,construction, mortgage and mining companies. His experience includes senioradministrative roles with Rew Materials and Mexican Moly Mines and Scion Mines in Mexico.He held the position of Regional Administration Manager with Rew Materials and CFO forMexican Moly Mines and then Scion Mines. Jose holds a Bachelor of Business Administrationfrom Instituto Tecnológico de Monterrey.
Yuyiang Liang, CPA, BBA – Chief Financial OfficerYuying Liang is the principal of Canmore Financial Services, where she provides financialreporting services for both public and private companies. She has extensive experiencein public company environments and full cycle accounting, as well as providingaccounting services for business acquisitions and RTO. Ms. Liang holds the professionaldesignation of Chartered Professional Accountant (CPA).
Richard Dufresne, B.Sc., P.Geo – Geological Project ManagerMr. Dufresne is a professional geologist with over 30 years of global experiencesuccessfully developing and leading mineral exploration programs. He held senior andmanagerial positions with Falconbridge Ltd and Anglo American Exploration Canada.Later he joined junior mining companies as project manager and vice president ofexploration. Mr. Dufresne has been involved in projects in Canada, Mexico, Peru, andIvory Coast. He is a registered member of Engineers and Geoscientists BC
Proven Track Record of
Shareholder Value Creation
Extensive Technical, Financial
and Capital Markets Expertise
Committed to Industry Leading CSR and
Environmental Performance
Prize Mining Capital Structure (as of December 31, 2018)
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Capitalization
Share Price (C$) (C$) $0.04
Basic Shares Outstanding M 124
Options Outstanding M 4.8
Broker Warrants Outstanding M 40.7
RSU Outstanding M 2.4
Basic Market Capitalization (C$) $5
11%
24%
65%
Insider Institutions/HNW Retail
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Manto Negro Copper Project
Coahuila State, Mexico
o “Infrastructure development in major countries such as China and India and the global trend towards cleaner energy will continue to support growth in copper demand.” International Copper Study Group, 2018
o “We believe that copper consumption is entering a new growth phase driven by an ‘electrifying society’.” DBS Bank, Singapore
o “Copper consumption from electric vehicles, estimated at 0.9% of the global total in 2017, will rise to 8.2% of 2017’s total copper demand in 2030.” DBS Bank, Singapore
Copper Market
10
15
20
25
2012 2014 2016 2022 2028 20302018 2020
Base Supply
2024 2026
Demand
Source: Wood Mackenzie Q3 2017. Rio Tinto. Includes Wood Mackenzie estimates of production from Oyu Tolgoi underground.
Deficit
Copper supply/demand(million tonnes)
Surplus
Manto Negro Copper Project
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o Prize acquired 100 percent ownership of
approximately 17,965 hectares (180 km2) in
December 2017 - first time this area has been
consolidated in one district-scale package
o Sediment-hosted stratabound copper deposit
o Analogous to the Kupferschiefer deposits of Poland
& Germany and Zambian/DRC Copper Belt that are
some of the richest globally
o District scale potential with 35 high grade Cu and Ag
surface showings and underground (artisanal)
exposures over 45+ km trend
o Mineralized thickness from 1m to 15m
o Zones average 0.73% to 5.5% Cu, 19 to 793g/t Ag
with richer Cu-Ag mineralization outcropping at
various locations
Rich copper mineralization from Ojitos showing - chalcocite (black)
malachite (green)
Manto Negro Project – Location & Infrastructure
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o Coahuila State, NE Mexico
o Safe, easy road access
o Located proximal to mid-size cities with access to
skilled mining labour
o Excellent working relationship and agreements in place
with two local ejidos
o Major highway and rail proximal to property
o High voltage power nearby
Manto Negro Project –Concessions Location
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100 percent ownership
17,965 hectares (180 km2)
35 high grade Cu-Ag showings
Both surface and underground high grade
mineralization
Manto Negro - Geology
12
o Manto Negro is a sediment-hosted stratiform copper-silver-lead-zinc
deposit. Mineralization is associated with the contact of the clastic
(redbeds) of the San Marcos formation and the overlying limestone
of the Cupido formation indicative of a sediment-hosted stratiform
copper-silver-lead deposit of the Kupferschiefer-type (red-bed type).
o The Manto Negro area is underlain by a NW trending anticlinal
structure dominated by lower Cretaceous clastic and carbonate
rocks with a few scattered exposures of Permian and Tertiary
intrusive rocks.
o Within the Manto Negro area lateral exploration potential is indicated
by mines and prospects along the contact of the San Marcos –
Cupido formations for 40 to 50 kilometers.
o Typical thicknesses are in the 1 - 10 meter range, although
mineralization has locally been found over 15 + meter intervals
Sediment-Hosted Stratabound Copper Deposits
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o Largest deposits of this type are in Central African Copper Belt but Manto Negro is more
analogous to Kupferschiefer deposits of Poland & Germany
Kupferschiefer Deposits
o “by far the most important primary European metal source” (Borg, et al, 2012) and one of
the largest deposits of this type in the world
o Laterally extensive – mineralized trend is ~600 kilometers E-W, with individual deposits
typically 10’s of square kilometres
o Consistent grades & thicknesses
o Above features lead to larger operations with economies of scale & significant output
o KGHM is largest producer in Poland, operating 3 mines, concentrators & smelters
o Underground mines, room & pillar method, up to 1,500m deep, 1-15m thick
o Processing ~32 million tonnes per annum
o 2015 resources of 1.7 billion tonnes at 1.84% Cu & 52.5g/t Ag
➔ 31.9 million tonnes Cu & 2.9 billion ounces Ag
Phase 1 Drilling at El Granizo and Pilar Grande Deposits
• Testing two areas 18 kilometers apart but on same mineralized horizon, underscoring the district-scale potential
• 3,000 meters in 30 holes nearingcompletion
• Drilling is testing continuity and style of mineralization
• Some core could potentially be used for preliminary metallurgical testing
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Current Manto Negro Drilling Activities
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El Granizo Historic Mine Areao Underground channel sampling:
o Weighted average of 2.62% Cu and 50g/t Ag over
1.7 meters thickness over 45 X 50 meter area
o Surface channel sampling:
o 2.73% Cu and 58g/t Ag over 6.0m
o 1.78% Cu and 40g/t Ag over 5.2m
o 1.65% Cu and 36g/t Ag over 7.0m
o Current drill program tested a 500m X 100m area with
1,122m in 11 holes.
o Drilling outlined an area of 150m x 70m of continuous
Cu-Ag oxide mineralization.
Hole number Width (m) Cu% Ag g/t
DDHMN-18-01 4.40 1.02 28
DDHMN-18-02 3.55 1.69 28
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Multiple historic mines and prospects over 5km
o El Rincon:
o 2.33% Cu and 63g/t Ag over 4.4 meters
o La Cuchilla Mine:
o 0.99% Cu and 38g/t Ag over 4.20 meters
o 11.40% Cu, 622g/t Ag; 3.01% Cu, 436g/t Ag;
and 2.80% Cu, 280g/t Ag in old dumps
o El Tajo Prospect:
o 1.26% Cu and 90g/t Ag over 2.50 meters
o El Nopal Prospect:
o 1.10% Cu and 33g/t Ag over 5.90 meters
o El Pilon Prospect:
o 1.26% Cu and 90g/t Ag over 2.45 meters
o Las Palmas Prospect:
o 0.81% Cu and 78g/t Ag over 1.80 meters
o San Marcos Prospect:
o Up to 2.11% Cu and 128g/t Ag in old dumps
o La Abandonada Prospect:
o 1.5% Cu and 47g/t Ag
Don Indio Concession Area
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1500 m
1000 m
3 km 4 km 5 km
La Abandonada Mine / El Rincón
Pilar Grande Mine
6 KM LONG SECTION N25°E
1 km 2 km
La Cuchilla Mine
San Marcos West Mine
La Encalmada Mine
El Pilón Mine
Don Indio Concession Area
6 km
Pilar Grande Historic Mine
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o Pilar Grande Mine workings cover 240
meters on 4 levels and 80 meters down
dip
o Underground channel sampling returned
weighted average of 2.35% Cu and 184g/t
Ag over 2.35m thickness
o Current drill program will test a 200m X
50m area with 1,273m in 11 holes
Hole number Width (m) Cu% Ag g/t
DDHDI-18-01 4.10 0.88 49
DDHDI-18-02 3.40 1.58 122
DDHDI-18-03 4.05 0.82 55
DDHDI-18-05 1.0 1.43 126
DDHDI-18-05 2.15 0.78 37
Mining Sediment Hosted Copper Deposits
Granizo deposit area of Manto Negro Project Room and pilar mining at KGHM Mine in Poland
Infrastructure Improvements 2018
• Very large exploration area with over 35 major copper showings over a 45 + kilometer trend
• All road accessible but terrain and precipitation have required significant investment in road building and maintenance
• Desert environment requiring new water infrastructure for drilling and future operations
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22
Phase 1 of Program Nearing Completion
o Phase 1 drilling: 3,000 meter, ~30-
hole diamond drill program at El
Granizo and Don Indio Areas
o Data compilation, structural and
stratigraphic mapping and geological
model development
o Mining engineering assessment of
key showings
o Ongoing community engagement
Kena Gold-Silver ProjectKootenay-Boundary Region, British Columbia
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o Prize Mining’s advanced stage Kena Project hosts a NI43-101 gold resource of 481,000
ounces Indicated and 1,318,000 ounces Inferred
o Historic mining district with Prize claims hosting four past producing mines with grades
as high as 37g/t gold
o Prize consolidated land package of Kena, Toughnut and Daylight Properties for first time
o Recently completed 2,700 meter exploration diamond drilling program
Location and Infrastructure
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o Kootenay Boundary Region of
southeastern BC
o Easy access by road and rail
o Power lines cross the property
o Local service and supply companies
o Historic mining district with Teck
Resources Trail Smelter nearby
Kena Project
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THREE IMPORTANT GOLD AND COPPER-
GOLD ZONES
1. Kena Property
o KGM Gold Deposit - Bulk tonnage gold
deposit with high grade zones
o Copper King Zone - Bulk tonnage
porphyry copper-gold mineralization
2. Toughnut Property
o Gold Eagle trend with grades up to 25g/t
gold
3. Daylight Property
o High Grade Gold Veins characterized by
four historic mines
Kena Property
PORPHYRY GOLD DEPOSIT
o 24,890,000 tonnes INDICATED Resources
o Average grade 0.60g/t Au (Using a 0.3g/t
Au cut-off)
o Containing 481,000 ounces GOLD
o 85,790,000 tonnes INFERRED Resources
o Average grade 0.48g/t Au (Using a 0.3g/t
Au cut-off)
o Containing 1,318,000 ounces GOLD
* Mineral resources that are not mineral reserves do not have demonstrated economic viability
** NI 43-101 Mineral Resource Estimate by Giroux and Park (2017) available on Prize Mining website and on SEDAR
www.prizemining.com
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OTCQBPRZFF
TSX.VPRZ
FSEMQSP
Mailing Address
Prize Mining Corporation2301 – 838 West Hastings StreetVancouver, BC, V6C 1C8Tel: 604-336-1327
