Resource Capital Funds – Latin America

Martin Valdes

Funding Mineral Exploration and Mining Projects

VII Simexmin

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The information provided is to be used as a general introduction to Resource Capital Funds and RCF Management LLC (together “RCF”), as presented. This presentation is not intended for potential or current limited partners in any fund advised by RCF or their affiliates. Information provided may include general market discussions, high level due diligence processes of RCF, and commodity specific information among other topics in light of the financing market for mining projects; this information is subject to change and is current only as of the date of this presentation. The information contained herein should not be relied upon for any investment making decision and is not an offer or solicitation of any securities or investment services. This presentation is not complete without the oral accompaniment.

Disclaimer

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Founded in 1998 with offices in Denver, Perth, Toronto, New York and Santiago

Invested in 148 companies covering

• 29 commodities over

• 47 countries

Our portfolio companies employ over 11,000 people

55 mining Board positions since inception

• 38 historically

• 17 presently

RCF has a team of more than 45 investment professionals with a diverse range of mining industry skills and backgrounds

Dedicated in-house technical team with experience ranging from resource modeling and mine planning through to project, environmental, social and operations management

RCF has total assets under management of US$2.3 Billion

Statistics as of 31 December 2015

Resource Capital Funds Fast Facts

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Private Equity

• Resources have been defined

• Seeks to identify mining assets with strong fundamentals and appropriate valuations

• Investments targeting development, expansion or restructuring of a company’s mineral assets

• Strategies can include Equity, Mezzanine Debt, Royalties or Bridging Finance

Venture Capital

• Investments are targeting less mature companies to gain exposure to early stage development potential

• Smaller investment tickets

• High risk and therefore higher returns

Statistics as of 31 December 2015

Private Equity vs Venture Capital Revisiting definitions from a mining Private Equity perspective

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Valuation at Different Stages

NP

V /

Sh

are

Mu

ltip

le

2x

1x

Opportunity to realize value accretion

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Funding Exploration Where RCF can assist with unlocking exploration value

Planning

Reconnaissance

Target Delineation

Target Testing

Discovery

Deposit Definition

Investment Risk Investment Size RCF Exploration

Investment Range

RCF is seeking the appropriate

level of risk relative to

investment size

Higher Lower

Lower Higher

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Majors divesting non-core assets in the region (ie Anglo)

Minority interests remain valuable mostly by Japanese trading houses

• An important part of the deal value of transactions done in Chile comes from Japanese houses

Financial players looking for opportunities but not easy to make deals

Long life / low cost producing assets maintain value in down cycle

• Zaldivar, Candelaria

Increased amount of royalty/stream financing

• Royal Gold (El Morro)

• Franco-Nevada (Candelaria)

Strategic JV´s among operators to look for synergies in infrastructure

• Corridor Project in Chile (Goldcorp/Teck)

Mining M&A Trends in the Region What is driving Mining M&A in the Region

www.resourcecapitalfunds.com

NEW YORK RCF Management L.L.C.

224 Wall Street, Suite 202 Huntington, NY 11743, USA

Tel. +1 631 692 0043

TORONTO RCF Management (Toronto) Inc.

25 York Street, Suite 610 Toronto, Ontario M5J2V5, Canada

Tel. +1 647 726 0642

DENVER RCF Management L.L.C.

1400 Sixteenth Street, Suite 200 Denver, CO 80202, USA

Tel. +1 720 946 1444

PERTH Resource Capital Funds

Management Pty Ltd

Level 3, 24 Kings Park Road West Perth, WA 6005, Australia

Tel. +61 8 9476 1900

SANTIAGO RCF Management L.L.C

Nueva Costanera 4040, 31

Vitacura, Santiago, Chile

Tel. +56 2 2245 4361