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Transaction Overview
March 2015
TSX: SMC Hope Brook Gold Project Overview
& Transaction Highlights
March 2015
to acquire
2 TSX: SMC | www.sulliden.com
Cautionary Statements
Certain information contained in this presentation, including any information relating to the Transaction (including the anticipated
benefits of the Transaction), and statements that address events or developments that Sulliden or Coastal Gold expects to occur, are
"forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always,
identified by the words "expects", "does not expect", "plans", "anticipates", "does not anticipate", "believes", "intends", "estimates",
"projects", "potential", "scheduled", "forecast", "budget" and similar expressions, or that events or conditions "will", "would", "may",
"could", "should" or "might" occur. Forward-looking statements include, but are not limited to, statements relating to completion and
timing of the acquisition of Coastal Gold, the delivery of the Hope Brook PEA, the upside potential of Hope Brook and the Hope Brook
mineral resource estimate and its potential to be enhanced. All such forward-looking statements are subject to important risk factors
and uncertainties, many of which are beyond Sulliden's or Coastal Gold's ability to control or predict. Forward-looking statements are
necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other
factors that may cause Sulliden's or Coastal Gold's actual results, level of activity, performance or achievements to be materially
different from those expressed or implied by such forward-looking statements. Assumptions upon which such forward-looking
statements are based on include the estimation of mineral resources, the availability of necessary financing and materials to continue
to explore and develop Hope Brook, that Sulliden and Coastal Gold will be able to satisfy the conditions contained in the Arrangement
Agreement, that the required approvals will be obtained from the shareholders of Coastal Gold, that all third party, court, regulatory and
governmental approvals to the Transactions will be obtained, including from the Exchange and all other conditions to completion of the
Transaction will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of
Sulliden and Coastal Gold and there is no assurance they will prove to be correct. Such factors include, without limitation: capital
requirements; fluctuations in the international currency markets and in rates of exchange of metal prices; changes in national and local
government legislation in Canada or any other country in which Sulliden and Coastal Gold currently or may in the future carry on
business; taxation; controls, regulations and political or economic developments in the countries in which Sulliden and Coastal Gold do
or may carry on business; competition; loss of key employees; and additional funding requirements.
Any forward-looking statement speaks only as of the date on which it is made and Sulliden and Coastal Gold expressly disclaim any
intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise,
except in accordance with applicable securities laws. Although each of Sulliden and Coastal Gold believe that the assumptions
inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and
accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Qualified Person
Dr. Bill Pearson, President and CEO of Coastal Gold, is a qualified person as defined under National Instrument 43-101 – Standards of
Disclosure for Mineral Projects and has reviewed and approved the scientific and technical content of this news release.
3 TSX: SMC | www.sulliden.com
Transaction Highlights
High Quality, Advanced Gold Project in Friendly Mining Jurisdiction
Coastal Gold’s Hope Brook Project is an advanced-stage gold project located in Newfoundland.
Excellent infrastructure including on site grid power, a good road network and a wharf.
Former producing mine (~750,000 oz Au, 1987-1997). Important mine infrastructure remains at site.
In the last three years, Coastal Gold has outlined a significant mineral resource, which can
immediately be taken to the engineering stage.
Excellent Mineral Expansion Potential
Indicated mineral resource of 5.5 Mt grading 4.77 g/t Au containing 844,000 oz Au*.
Inferred mineral resources of 836,000 t grading 4.11 g/t Au containing 110,000 oz Au*.
Resource covers about 1.5 km of an 8 km mineralized structure on its 25,000 ha land package.
Many targets already outlined will provide excellent short and long term exploration upside.
Fast-track Development Potential
Sulliden has the financial resources to advance the Hope Brook project to a potential
production decision, while continuing to expand the mineral resource.
Upon closing of the transaction, Sulliden intends to immediately initiate a PEA on the project.
Management Teams with Proven Track-Record
Sulliden’s strong technical team and its capital markets experience will greatly complement
the excellent geological work completed at Hope Brook.
Improved Market Presence
The Hope Brook project will become Sulliden’s cornerstone asset and will provide a re-rating
opportunity as a well funded development-stage company with a proven operating team
coupled with significant exploration potential.
*See slide 7 for details on the mineral resource estimate
4 TSX: SMC | www.sulliden.com
“With our financial resources and the focus of a proven team, we believe that
the fast-track development of this project will generate tangible short and long
term value for our shareholders.” - Justin Reid, President & CEO of Sulliden
Transaction Summary
Proposed
Transaction
Sulliden to acquire all outstanding shares of Coastal Gold
Transaction value of approximately $4.06 M, including assumption of $1.25M in debt
Consideration
Sulliden to acquire each outstanding Coastal Gold common share for 0.05 of a
Sulliden share (the “Exchange Ratio”).
The Exchange Ratio represents $0.0166 per Coastal Gold common share, based on
Sulliden’s 60-trading day volume weighted average price ("VWAP") of $0.33.
Fairness opinion attests that Coastal Gold shareholders are receiving fair
consideration from a financial perspective.
Conditions
Coastal Gold shareholder vote (66 2/3% of shareholder votes cast and majority of
votes excluding certain related parties).
Customary regulatory and court approvals
Anticipated
Timing
Coastal Gold to hold a special shareholder meeting in mid April 2015
Closing expected by the end of April 2015
Other Terms
& Loan
Agreement
The directors of each company unanimously support the proposed transaction.
On March 1, 2015 Sulliden and Coastal Gold entered into a loan agreement whereby
Sulliden made available to Coastal Gold up to $150,000 (see press release dated March 2, 2015 for details)
Hope Brook Location
Excellent mining jurisdiction
Large 26,400 ha property
located in southwestern NFLD
Excellent infrastructure
from past-producing mine
Strong local labour force
5 TSX: SMC | www.sulliden.com
Hope Brook Infrastructure
Hope Brook formerly produced
approximately 750,000 oz of gold
from 1987 to 1997, and important
mine infrastructure remains on site,
including:
Ramp to 350m below
surface and vent raise
Power from provincial
electrical power grid
Wharf on tide water
Existing tailings ponds
1.2km long air strip
Good Road Network
Air Strip
Wharf
Ramp Portal
Wharf Tailings Ponds
Power Grid
Airstrip
6 TSX: SMC | www.sulliden.com
7 TSX: SMC | www.sulliden.com
Hope Brook High-Grade Mineral Resource
Resource Category Tonnes
(Rounded) Gold Grade Contained Gold
Indicated (3.0 g/t Au cut-off) 5,500,000 4.77 g/t 844,000 oz
Inferred (3.0 g/t Au cut-off) 836,000 4.11 g/t 110,000 oz
High-Grade Underground Mineral Resource Estimate (January 2015)
* Details of the Mineral Resource can be found in the press release dated January 12, 2015. A NI 43-101 compliant Mineral
Resource Report was filed on February 24, 2015. High Grade Underground Mineral resource is included within mineral
resource released December 4, 2013. Dr. Bill Pearson, President and CEO of Coastal Gold, is a qualified person as
defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects and has reviewed and approved
the scientific and technical content of this news release.
8 TSX: SMC | www.sulliden.com
Hope Brook Long Section of Mineral Resource
9 TSX: SMC | www.sulliden.com
Hope Brook Exploration Potential
The mineral resource covers
approximately 1.5 km of a mineralized
structure extending for at least 8 km
along strike on the property.
A number of targets have already been
outlined, which will provide excellent
exploration upside in the short and long
term.
Excellent geological work done to date
- very good understanding of controls
on mineralization, how to efficiently drill
resources and find new deposits and
extensions using geology, geophysics,
lithogeochemistry and 3D modeling
and interpretation.
Hope Brook Exploration Potential
10 TSX: SMC | www.sulliden.com
Extensive mineralized system that is very under-explored
8 km gold
mineralized
structure
within Hope
Brook
concessions
Sulliden Mining Capital Inc.
Caroline Arsenault
Corporate Communications
+1 (416) 861-5805
For further information about Coastal Gold,
please visit www.coastalgold.ca or contact:
Coastal Gold Corp.
Rob Hopkins
Investor Relations Manager
+1 (416) 861-5899