building a preeminent nickel & pgm company€¦ · q1 2020 building a preeminent nickel &...

M E E T I N G D E M A N D S F O R A C L E A N E R W O R L D

T S X - V : E D D Y C O R P O R AT E P R E S E N TAT I O N Q 1 2 0 2 0

Building a Preeminent Nickel & PGM Company


Forward Looking Statements

Certain information contained in this presentation, includes information and statements which may contain words such as "could", "plans", "should", "anticipates", "expect", "believe", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking information. All of the forward-looking information contained in this presentation is qualified by this cautionary statement. There can be no assurance that the actual results or developments anticipated by Sudbury Platinum Corporation, or Edison Cobalt Corp as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Sudbury Platinum Corporation or its business operations. Sudbury Platinum Corporation disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events. Readers should not place undue reliance on forward-looking information.

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The Opportunity

Nickel & Palladium – the Most Exciting Investment of 2020 !•  Electric Vehicles (EVs) creating “once-in-a-generation investment

opportunity” •  < 40% of world nickel production is suitable for battery manufacturing •  Palladium’s unique properties make it well suited to meet stricter global

emission standards •  Hybrid cars require more palladium than internal combustion engines •  The Sudbury Basin is the world’s second largest nickel mining camp with

PGM and copper as by-products

We believe the nickel & palladium market fundamentals are pointing in the right direction for investors now and in years to come!

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Investment Summary

•  Sudbury Platinum Corp is completing an RTO with Edison Cobalt (TSXV: EDDY) to form SPC Metals (SPC)

•  SPC has two wholly owned, advanced-stage projects in the Sudbury camp and an option on a highly prospective property.

1.  The Aer-Kidd Property located 1.8 km from Vale’s (NYSE: VALE) Totten Mine and 3 km from KGHM’s (WSE: KGH) Victoria Deposit

2.  The Lockerby East Property hosts the Lockerby East and Graham West resources!

3.  The Janes Ni-Cu-PGM Property located 50 km NE of Sudbury and has potential for a high-grade massive Ni-Cu-PGM sulphide mineralization!

•  Addition of the Edison Cobalt Properties brings a 4,000-hectare land package with 3 historic mines

•  Experienced management team focused on exploring in Sudbury since 2001; recipient of numerous awards including the 2004 PDAC Prospector of the Year

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Scott McLean, Chief Executive Officer!!Scott has over 30 years of experience including 23 years with Falconbridge Limited, which was acquired for approximately USD $20 billion by Xstrata in 2006, which then subsequently merged with Glencore (LSE: GLEN) for USD $66 billion. Scott’s experience in exploration and management resulted in the discovery of various mineral deposits including the 17 million tonne Nickel Rim South Mine in Sudbury, Ontario. For his role in this discovery, he was a recipient of the Prospector of the Year Award in 2004 by the Prospectors and Developers Association of Canada. He was also appointed to the transitional board of the Association of Professional Geoscientists of Ontario and has represented the profession as President.

Grant Mourre, President & Chief Operating Officer !!Grant has more than 20 years of experience in the mineral exploration business primarily focused on magmatic Ni-Cu-PGM mineralization. Through his work and research, Grant has developed in-depth knowledge of the geology and mineralization of magmatic systems with an emphasis on the Sudbury Igneous Complex. In 2013, Grant was a co-recipient of the Bernie Schnieders Discovery of the Year presented by the NWOPA for the Sunday Lake PGM Project discovery.

Christopher Chadder, Chief Financial Officer!!Chris is a senior executive with extensive hands on experience in management, business leadership and working with Boards of Directors, Financial Institutions, Regulators and Corporate Council. Chris has experience with a number of TSX-listed junior mining and development companies, including Minera Alamos, (TSXV: MAI), NWM Mining Corp., Ursa Major Minerals and Patricia Mining Corp.

World Class Discovery Team

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Board of Directors

Scott McLean CHAIRMAN

!  Discovered the 17 million tonne Nickel Rim South Mine while at Falconbridge

!  Prospector of the Year in 2004 !  Co-recipient of the “Bernie Schnieders

Discovery of the Year” for the Sunday Lake PGM Project Discovery

!  30 Years experience in the mining industry

William Shaver DIRECTOR

!  COO at INV Metals (TSX: INV) !  Previously President & CEO of DMC Mining !  Co-Founder of Dynatec Corporation !  Board member of Torex Gold (TSX: TXG) !  45 years experience in the Mining Industry !  2013 EY Entrepreneur of the Year for

bringing innovation to the mining industry

Brian Montgomery DIRECTOR

!  Lawyer and a retired partner of Weaver Simmons LLP

!  Currently associated as counsel with the Moutsatsos Laakso Alexander LLP law firm in Sudbury specializing in business and corporate law

!  He is recognized for his expertise in all aspects of mining, corporate, real estate, and business law

Alger St. Jean DIRECTOR

!  Executive Vice President, Exploration & Resource Development, RNC Minerals (TSXV:RNX)

!  Vice President, Exploration at Orford Mining. !  Previously, Senior Geologist at Glencore formerly

Xstrata !  Over 25 years experience in the mining industry,

primarily focused on nickel and gold

Alistair Ross DIRECTOR

!  President and CEO of Rockcliff Metals (TSXV:RCLF) !  Former Head of Mining and Milling for Vale’s (NYSE:

VALE), Atlantic Base Metals Operations !  Former President of Lonmin’s South Africa Operations,

the world’s third largest platinum producer !  Over 40 years of experience in the mining industry

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Primary Deposit Types

Nickel !•  Class 1 Nickel source •  Restricted geological

environment •  Low PGM values •  Rare, difficult to find •  Low PGM recoveries

PGM !•  Extremely difficult to find,

few successful examples worldwide

•  Low base metal values •  Susceptible to precious

metal price fluctuations •  Metallurgy and recovery

issues

Magmatic !Ni-Cu-PGM !

•  Polymetallic deposits •  Class 1 Nickel source •  Significant source of

PGM •  High per ton value •  Proven mining and

processing techniques

Sudbury Camp – !Best area in North America for Magmatic Ni-Cu-PGM!

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[CELLRANGE]

[CELLRANGE] [CELLRANGE] [CELLRANGE]

[CELLRANGE]

[CELLRANGE] [CELLRANGE]

Ni Cu Co Pt Pd Au Ag

Magmatic Ni-Cu-PGM

Victoria Deposit* (owned by KGHM)!•  Discovered in 2010 (1.3% Cu, 0.6 % Ni,

2.2 g/t PGM over 471m). •  14.5 Mt @ 2.5% Ni, 2.5% Cu, !

7.6 g/t PGM!•  In-situ metal value of $13B**!•  Contains 710M lbs Ni, 720M lbs Cu,

1,310K oz Pt, 1,890K oz Pd, 420K oz Au •  Value of the ore per ton in-situ is estimated

at $892**!

**Based on metal vales of $6.32/lbs Ni, $2.82/lbs Cu, $14.74/lbs Co, $1002.00/oz Pt, $2219.00/oz Pd, $1550.30/oz Au, $17.93/oz Ag

$892!

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Excellent targets for both Ni and PGM !

*SPC Metals has no interest in the Victoria Deposit. It is being used as an illustration of the high-grade, high-value nature of Sudbury ore deposits.


Sudbury Camp

$6B

* Estimated market value of total historic production using current commodity prices

Since 1883, 25B lbs. Ni, 26B lbs. Cu, 30M oz Pd+Pt, 5M oz Au !have been produced!

9 $280B 125

$

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Production value �since 1883*

Invested� since 2012

Years of mining history

Active mines


Onaping Depth !Development Project!•  $1.0B CapEx •  14.0Mt @ 2.24% Ni, 1.01% Cu •  +2,500m depth

Norman West !Advanced Exploration!•  New high-grade discovery •  +15.0 Mt discovery •  +2,000m depth

Nickel Rim – Victor !Development Project!•  High-grade Cu mineralization •  +2,500m depth

Copper Cliff South Mine!Capital Project!•  $700M CapEx •  Shaft and Infrastructure

Development Victoria Deposit KGHM!Resource Stage!•  14.2Mt @ 2.5% Ni, 2.5% Cu •  +1,500m depth

Current Discovery and Development

Aer-Kidd

Lockerby East

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•  Aer-Kidd is 1.8 km from Totten, the newest mine in the Sudbury Basin, and 3 km from the Victoria Deposit, the largest and highest-grade undeveloped resource

•  Lockerby contains historic resources both near-surface and at depth

•  Excellent access and infrastructure Totten Mine (Vale)

10.5Mt @ 1.5% Ni, 2.0% Cu, 4.8 g/t PGM

Victoria Deposit (KGHM)

14.5Mt @ 2.5% Ni, 2.5% Cu, 7.8 g/t PGM

Aer-Kidd

The Right Address

Lockerby

Unique land position among Juniors in the Sudbury Basin!

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Aer-Kidd Project Overview

•  Located only 1.8 km NE of the Totten Mine (Vale) •  10.1 Mt @ 1.5% Ni, 1.97% Cu, 4.8 g/t PGM.

•  Located only 3 km SW of the Victoria Project (KGHM) •  14.5 Mt @ 2.5% Ni, 2.5% Cu, 7.6 g/t PGM.

•  Three historic past producing deposits located on the Aer-Kidd Property

•  Preproduction resource: 786,000 t @ 0.57% Ni, 0.76% Cu1

•  Mineralization is hosted within the Worthington Offset Dyke

•  Target is high-grade massive Ni-Cu sulphides •  Values up to 7.96% Ni, 7.5% Cu over 0.25 metres

•  Significant PGM associated with Ni-Cu mineralization •  Values up to 133.87 g/t PGM (128.5 g/t Pd) have been reported in

drilling over 0.25 metres

•  SPC has completed 21,500 m of drilling

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1. The Company considers the cited public domain resource estimates to be historical in nature and cautions the reader that they may no longer be relevant. The Company does not treat the historic estimate as a current mineral resource.


Aer-Kidd Mineralization

•  Massive sulphide occurs interstitial to or wrapping around breccia fragments

•  High-tenor Ni sulphides (2 – 12 wt.%, Avg. 6.5 wt. %)

•  Elevated Pt and Pd values, Rh? •  Values up to 7.9% Ni, 7.5% Cu, 133.8 g/t PGM

(128.5 g/t Pd) over 0.25 m encountered in drill core

•  8.10 metres @ 1.04% Ni, 0.75% Cu, 2.4 g/t PGM •  9.15 metres @ 0.67 % Ni, 0.99 % Cu, 1.46 g/t PGM •  12.35 metres @ 0.91 % Ni, 0.28 % Cu, 0.8 g/t PGM •  13.35 metres @ 0.61 % Ni, 0.92 % Cu, 2.5 g/t PGM •  13.60 metres @ 0.66 % Ni, 1.22 % Cu, 3.46 g/t PGM

•  At both Totten and Victoria grades increase with depth

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Aer-Kidd Opportunities and Program

Targets!•  Testing geophysical anomalies with BHEM

and AMT •  Testing mineralization and geological trends Opportunity!•  0.5 – 2Mt potential above 1,000m •  2 -10Mt potential below 1,000m !Phase 1 Program - $1,100,000 !•  Relogging of historic core •  Compilation and 3D modelling •  4,400m drill program (2 initial + 2 follow-up) Phase 2 Program - $2,500,000 !•  10,650m (5 parent + 5 follow-up) •  Same exploration techniques used to

discover both Totten and Victoria

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Lockerby Project Overview

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•  Adjacent to the past producing Lockerby Mine (1971-2015)

•  9.6 Mt @ 1.83% Ni, 1.08% Cu was produced •  Located 3 km from past producing Crean Hill Mine

(Vale) now owned by Lonmin Canada •  16.0 Mt @ 1.22% Ni, 1.11%Cu, 1.92 g/t PGM.

•  Property hosts both the Lockerby East deposit1 and the West Graham deposit1

•  West Graham: 8.5Mt @ 0.45% Ni, 0.31% Cu (Indicated)

•  Lockerby East: 0.18Mt @ 2.32% Ni, 0.87% Cu (Indicated)

•  Mineralization is associated with ‘traps’ the basal contact of the Sudbury Basin

•  Potential for PGM rich material in the footwall. •  Exploration to date has included compilation and

borehole geophysics 1. The Company considers the cited public domain resource estimates to be historical in nature and cautions the reader that they may no longer be relevant. The Company does not treat the historic estimate as a current mineral resource.


Lockerby Mineralization

Lockerby East!•  Narrow (<5m thick) high-grade massive sulphide

associated with breccia along the basal contact •  The bulk of the deposit occurs at the nose of the ‘roll-

over’ and remains open at depth •  10.0 metres @ 5.60% Ni, 1.26% Cu, 0.10% Co�

West Graham!•  The deposit extends from 40m below surface to a

depth of approximately 475m. The modelled zone ranges in thickness from 1.7 to 66m

•  Composed primarily of high-tenor Ni (8-10 wt. %) disseminated and blebby sulphide mineralization within the Sublayer, 30 to 100m above the basal contact

•  71.5 metres @ 0.51% Ni, 0.34% Cu •  4.8 metres @ 1.04% Ni, 0.31% Cu

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Lockerby Opportunities

Targets!•  Geophysical anomalies down-

dip •  Cu-PGM mineralization in the

footwall •  Eastern margin of the West

Graham deposit Opportunity!•  10 - 30Mt above 500m •  0.5 – 2 Mt below 500m •  High-grade blue sky potential

below 1,200m

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Janes PGM-Cu-Ni Property

•  Option to acquire a 100% interest in the property signed in December 2019

•  Potential for both high-grade contact style PGM-Cu mineralization and high-grade massive Ni-Cu-PGM sulphide mineralization

•  Contact mineralization has been identified at surface for over 400m and is up to 30m thick averaging between 1 - 4 g/t PGM (Pd dominant).

•  To date drilling has focused down to a depth of 150m

•  No modern ground geophysics has been completed on the property

•  Drill Hole: 7.80m @ 1.51% Ni, 1.86% Cu, 1.79 g/t PGM

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RTO Transaction Details

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EDDY Pre Consolidation Cap Table Shares O/S 70.8M Warrants & Options 17.1M Total! 87.9M!Total Cash! $1.0M!

SPCM Post Consolidation Cap Table EDDY Shares O/S 19.9M SPC Shares O/S 67.0M Total Post Consolidation 86.9M EDDY Warrants & Options 5.1M SPC Warrants & Options 6.1M Total FD Post Consolidation!

98.1M!

RTO Financing Shares! 14.7M!RTO Financing Warrants! 9.0M!Total FD Post Financing! 121.8M!Pre-Money Valuation! $21.7M!

SPC Pre Consolidation Cap Table Shares O/S 50.8M Warrants & Options 4.6M Total! 55.4M!Total Cash Raised ! $9.6M!Average Cost/Share ! $0.20!Insider Ownership! 45%!

Edison Cobalt (TSXV: EDDY) will rollback its shares 3.55 to 1 and SPC shareholders receive 1.32 post consolidation shares for each SPC share !


Use of Proceeds and Visionary Steps

•  Continued exploration at Aer-Kidd towards discovery of resources

•  Evaluation of Lockerby towards a PEA decision

•  Geophysics and initial drilling at Janes •  Acquisition of new high quality assets

within Sudbury and other Canadian Ni-PGM Mining Camps

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Vision to build a preeminent Ni-PGM company focused on the acquisition and development of assets within the shadows of headframes!


Timeline

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Marketing kick off Feb 10

Close Financing

End of

Feb

July Aug Sept Oct Nov Dec June May April March Feb Jan

PDAC Mar 2-4

Close RTO Transaction

Late April 2019 DDH

Results Mid May

Acquisition of Janes

Mid May

Aer-Kidd Drilling Program June -

August

DDH News

Aer-Kidd DDH News

Janes Program Geophysics,

channel sampling

May - August

Geophysics

News SamplingNews

Fall

Janes DDH News

Marketing & Financing

News Release

Work Program

Janes Program Drilling?

•  Results driven exploration programs •  Evaluation of Lockerby towards a PEA decision •  Acquisition of new high quality assets within Sudbury and other Canadian Ni-PGM Mining Camps


Advanced Exploration Stage PGM Companies

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1.  Assumes completion of RTO and C$3.5M concurrent financing 2.  Assumes completion of the announced C$15M subscription receipt financing Market Cap C$25.4M1 C$65.4M C$25.0M ~C$20M2 C$18.9M C$18.1M C$9.3M

Exchange TSXV CNSX TSXV TSXV TSXV TSXV TSXV

Key Project(s) Aer-Kidd (100%) Lockerby East (100%) Janes (up to 100%)

Marathon (51% with option for

up to 80%)

Stillwater West (100%) Escape Lake (100%) Thunder Bay North

(100%)

Läntinen Koillismaa (100%)

East Bull (100%) East Bull Lake (100%)

Project Type Brownfield Greenfield Brownfield Greenfield Greenfield Greenfield Greenfield

Location Sudbury Basin, Ontario Marathon, ON Stillwater District, Montana

~60 km NW of Thunder Bay, ON

Finland ~60 km SW of the Sudbury Basin

~60 km SW of the Sudbury Basin

Resource Yes (historical) Yes (historical) No Yes (historical) Yes Yes No

Mineralization Magmatic Ni-Cu-PGM,�massive sulphides

Magmatic Cu-PGM, disseminated

sulphides

Platreef-style PGE-Ni-Cu

Magmatic Ni-Cu-PGM, disseminated sulphides, massive

sulphides

Magmatic Ni-Cu-PGM, disseminated

sulphides

Magmatic Ni-Cu-PGM Magmatic Ni-Cu-PGM, reef-type

Stage Advanced exploration

PEA Advanced exploration Advanced exploration Advanced exploration Advanced exploration Early exploration

Potential Mine Type

OP and UG OP UG UG OP OP OP

1.  Shown pro forma the RTO and concurrent C$3.5M private placement 2.  Shown pro forma the announced C$15M private placement

$65.4

$25.4 $25.0 $20.0 $18.9 $18.1 $9.3

Generation Mining SPC Metals Group Ten Clean Air Metals Palladium One Canadian Palladium Grid Metals

Market Capitalization (C$ millions) !


Appendix Nickel and PGM Market


The Electric Vehicle (EV) is the Future

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EV Companies 2015 Additional EV Companies 2020

EV sales will reach 44 million vehicles per year by 2030 under the EV30@30 Initiative (EVI)!

•  EVI includes 11 countries and 29 companies to reach reduced emissions and reach a 30% sales share for EV’s by 2030


A Nickel Battery-Charged Future

•  To increase energy density, future battery chemistries will contain more nickel

•  Nickel will make up to 80% of the mass in cathodes

•  2030 projected nickel demand of 1.3 Million Metric Tonnes Per Annum (59% of current annual supply) as nickel content in EVs increases to 40kg per car battery

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“Our cells should be called Nickel-Graphite primarily because the cathode is nickel and the anode side is graphite with silicon oxide.”

Elon Musk


Not All Nickel is Created Equally

Less than 40% of world nickel production comes from sulfides!

•  Sulphide deposits such as those in Sudbury are the primary source of Class 1 nickel

•  Only Class 1 nickel (purity > 99.98%) suitable for EV batteries

•  Class 2 nickel (ferronickel and nickel pig iron) not suitable for EV batteries due to iron content and impurities, common use in stainless steel

Source: CRU, Bloomberg

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Nickel demand for batteries has doubled from 3% of the world Nickel Market in 2017 to 6% in 2018. This rapidly increasing demand is already over 12% of Class 1 nickel production.

World Nickel Market!~2.3 million tonnes per annum


Global Nickel Supply Deficit Forecast Estimated that 1.83Mt of new Ni supply (Class 1 & Class 2) is needed by 2040 – broadly the same as the current market!

Source: Wood MacKenzie

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Supply�Gap


Palladium Market

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•  Price has increased 500% since 2016 ($500 to $2,500 per oz)

•  Annual demand is 11M oz •  6.8M oz mined worldwide in 2018, 3.2M

oz recovered from recycling •  1–1.5M oz deficit forecasted for 2019 to

2022 •  80% of production is from higher-risk

jurisdictions (Russia and South Africa) •  90% of production is a by-product of Pt

(41%) and Ni (49%) mining •  Demand from the automotive sector has

been growing as a result of tightening emissions legislation, most notably in China and Europe


Palladium’s Environmental Benefits

Cleaner Air, !Reduced Hydrocarbons !!

•  Critical in reducing harmful emissions from gas-powered vehicles •  85% of palladium market is for autocatalysts, a typical automobile uses 3 to 7

grams palladium •  New emission standards in China require 30% more palladium per vehicle •  Real Driving Emissions (RDE) testing shows palladium performs much better

than platinum •  Diesel emission scandal is causing diesel to be phased out more quickly,

increasing palladium demand

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Source: CRU, Bloomberg


For more information please contact: ��Scott McLean #5 - 410 Falconbridge Road Sudbury ON P3A 4S4 Telephone: 705-669-1777 [email protected]

Thank You

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