q3-2018 results presentation · q3 production of 101.6 million lbs payable zn continue to target...

TSX: TV | www.trevali.com

Q3-2018 Results Presentation


Perkoa Rosh Pinah

Santander Caribou

November 7, 2018


Cautionary Note Regarding Forward-Looking Statements:

2

This presentation contains “forward-looking information” (also referred to herein as “forward-looking statements”) under the provisions of applicable Canadian

securities legislation. Generally, these forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”,

“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases or statements that certain actions, events or

results “may”, “could”, “would”, “might” or “will”, “occur” or “be achieved” or the negative connotation thereof.

Forward-looking statements include, but are not limited to, those in respect of: the economic outlook for the mining industry; expectations regarding metal prices;

the timing and amount of estimated future production; the current and planned commercial operations, initiatives and objectives in respect of certain projects of

Trevali Mining Corporation (“Trevali” or “TV”), including the Perkoa, Caribou, Rosh Pinah and Santander mines (the “Mines”); the estimation of mineral reserves

and mineral resources; the realization of mineral reserve estimates, changes in mineral resources and conversion of mineral resources to proven and probable

mineral reserves; Trevali’s current and planned exploration initiatives; strategies and objectives in respect of the Mines; liquidity, capital resources and

expenditures; sustainability and environmental initiatives and objectives; business development strategies and outlook; leverage metrics; debt repayment

schedules; planned work programs and drilling programs in respect of the Mines; achieving projected recovery rates; anticipated mine life, recovery rates and

operating efficiencies; costs and expenditures, including capital and operating costs; costs and timing of the development of new deposits; off-take obligations;

targeted cost reductions; exploration and expansion potential; success of exploration activities; permitting and certification timelines; currency fluctuations;

requirements for additional capital; government regulation of mining operations; environmental matters; closure obligations and unanticipated reclamation

expenses; title disputes or claims; limitations on insurance coverage; the timing and possible outcome of pending litigation; Trevali’s intention to launch a normal

course issuer bid and the timing, terms and conditions of any purchases thereunder; and other information that is based upon forecasts of future operational or

financial results, estimates of amounts not yet determinable and assumptions of management.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, if untrue, could cause actual results, performance or

achievements to be materially different from future results, performance or achievements expressed or implied by such statements. Assumptions have been

made regarding, among other things: present and future business strategies and the environment in which Trevali will operate in the future, including commodity

prices, anticipated costs and ability to achieve goals; Trevali’s ability to carry on its exploration and development activities; Trevali’s ability to meet its obligations

under property agreements; the timing and results of drilling programs; the discovery of mineral resources and mineral reserves on Trevali’s mineral properties;

the timely receipt of required approvals and permits, including those approvals and permits required for successful project permitting, construction and operation

of Trevali’s mineral projects; the costs of operating and exploration expenditures; Trevali’s ability to operate in a safe, efficient and effective manner; Trevali’s

ability to obtain financing as and when required and on reasonable terms; Trevali’s ability to continue operating; dilution and mining recovery assumptions;

assumptions regarding stockpiles; the success of mining, processing, exploration and development activities; the accuracy of geological, mining and

metallurgical estimates; no significant unanticipated operational or technical difficulties; maintaining good relations with the communities; no significant events or

changes relating to regulatory, environmental, health and safety matters; certain tax matters; and no significant and continuing adverse changes in general

economic conditions or conditions in the financial markets (including commodity prices, foreign exchange rates and inflation rates). Readers are cautioned that

the foregoing list is not exhaustive of all factors and assumptions which may have been used.


Cautionary Note Regarding Forward-Looking Statements (cont.):

3

Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity,

performance or achievements of Trevali and/or the Mines to be materially different from those expressed or implied by such forward-looking statements,

including but not limited to, those in respect of: risks related to the integration of acquisitions; volatility of the price of zinc, lead, silver and other metals;

international operations including economic and political instability in foreign jurisdictions in which Trevali operates; current global financial conditions; joint

venture operations; actual results of current and planned exploration activities; actual results of drilling programs; discrepancies between actual and estimated

production, mineral reserves and mineral resources, grade and metallurgical recoveries; failure to replace mineral reserves; mining operational and development

risks; actual results of current reclamation activities; environmental policies and risks; conclusions of economic evaluations; changes in project parameters as

plans continue to be refined; changes in the market, demand, supply and/or uses of zinc and copper; accidents; labour disputes; delays in obtaining

governmental approvals or financing or in the completion of development or construction activities and other risks of the mining industry; inaccuracies or changes

in the consolidated zinc production, exploration and operational guidance for the Mines; inaccuracies or changes in the analysis of the exploration potential of the

Mines; failure to complete the work programs or drilling programs at the Mines; delays, suspensions or technical challenges associated with capital projects;

risks relating to reliance on historical data; failure of plant, equipment or processes to operate as anticipated; inaccuracies or changes in the growth pipelines of

the Mines; taxation risks; title risks; opposition from community or indigenous groups; compliance with laws, including environmental laws; exchange controls;

higher prices for fuel, steel, power, labour and other consumables; political or economic instability and unexpected regulatory changes; as well as those factors

discussed in the section entitled “Risk Factors” in Trevali’s most recent management’s discussion and analysis and annual information form available under

Trevali’s profile on SEDAR at www.sedar.com.

Although Trevali has attempted to identify important factors, assumptions and risks that could cause actual results to differ materially from those contained in

forward-looking statements, there may be others that cause results not to be as anticipated, estimated or intended. There can be no assurance that such

forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking

statements. Accordingly, readers should not place undue reliance on forward-looking statements. Forward-looking statements are based on the beliefs,

expectations and opinions of management on the date the statements are made and, accordingly, are subject to change. Trevali assumes no obligation to

update any forward-looking statements that are included in this presentation, whether as a result of new information, future events or otherwise, except as

required by law.

Non-IFRS Measures

This presentation refers to “EBITDA” (earnings before interest, taxes, depreciation and amortization), “free cash flow”, “site cash operating cost per tonne milled”,

and “site cash operating cost per pound of payable zinc equivalent produced”, which are financial performance measures with no standard meaning under

International Financial Reporting Standards (“IFRS”). Such non‐IFRS financial measures do not have any standardized meaning prescribed by IFRS and are

therefore unlikely to be comparable to similar measures presented by other issuers. Management uses these measures internally to evaluate the underlying

operating performance of Trevali for the relevant reporting periods. The use of these measures enables management to assess performance trends and to

evaluate the results of the underlying business of Trevali. Management understands that certain investors, and others who follow Trevali’s performance, also

assess performance in this way. Management believes that these measures reflect Trevali’s performance and are better indications of its expected performance

in future periods. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance

prepared in accordance with IFRS.

The information presented herein was approved by management of Trevali on November 7, 2018.

http://www.sedar.com/


Trevali Mining – Q3-2018 Overview

4TSX: TV | www.trevali.com

Summary

▪ Q3 production of 101.6 million lbs payable Zn

▪ Continue to target 2018 zinc production of 400+ million lbs

▪ Perkoa’s guidance raised to 172 – 180 mm lbs, partially offsetting weakness at Caribou

▪ C1 costs of $0.72/lb ($0.73/lb YTD) within guidance

▪ Q3 revenues impacted by timing of sales and decline in zinc price

▪ Provisional pricing impact of $42.6 million

▪ Stronger sales in Q4 expected – Rosh Pinah shipped 87% of Q3 production in October ($10.6 mln

incremental EBITDA and $0.01 impact to EPS if sold in Q3)

▪ Maintained strong liquidity – $93 million cash, and $149.5 million drawn on our $275 million facility

▪ Total liquidity $213 million

Our Strategy

▪ Continue to optimize existing operations

▪ Implement best practices across all mines, reducing costs and increasing efficiencies

▪ Add value through exploration to extend mine lives, with 2019 focus on Perkoa and Santander

▪ Pursue organic growth opportunities

▪ Rosh Pinah – Increasing production rates under evaluation (RP2.0)

▪ Bathurst Mining Camp – Life of Mill strategy

▪ Deploy cash towards accretive investments – NCIB initiated


Trevali – Q3-2018 and YTD Consolidated Results

5

(1) Q3-2017 and nine months September 30, 2017 consolidated production and sales include only September for Rosh Pinah and Perkoa. Trevali

acquired the Perkoa and Rosh Pinah mines on August 31, 2017.

(2) Please refer to non-IFRS Measures in the Cautionary Note Regarding Forward-Looking Statements at the end of this news release and in

Trevali’s September 30, 2018 Management’s Discussion and Analysis.

(3) Revenues include effects of settlement adjustments on sales from prior quarters and is calculated on a 100% basis.

Q3-2018 Q3-2017 2018 2017

Revenues (US$ mm) 30.5 64.4 279.2 141.8

Income from mining operations (US$ mm) (34.2) 28.4 48.5 48.2

Net income (US$ mm) (30.8) (7.8) 21.2 (4.9)

Basic income (loss) per share (US$/share) (0.04) (0.01) 0.02 (0.01)

Q3-2018 Q3-2017 2018 2017

Tonnes mined (kt) 652,904 552,385 2,250,284 1,295,140

Tonnes milled (kt) 753,122 567,552 2,317,271 1,431,774

Payable production

Zinc (lbs) 101,593,542 58,425,056 304,224,094 120,320,433

Zinc (t) 46,082 26,501 137,994 54,576

Lead (lbs) 9,158,996 12,474,379 31,986,971 32,370,137

Lead (t) 4,154 5,658 14,509 14,683

Silver (ozs) 306,678 433,442 976,056 1,164,608

C1 cash cost (US$/lb payable Zn) 0.72 0.53 0.73 0.61

All-in sustaining cash cost (US$/lb payable Zn) 0.87 0.75 0.88 0.80

Site cash operating cash cost (US$/t milled) 67 54 66 51

Q3-2018 Q3-2017 2018 2017

Zinc concentrate (dmt) 84,264 49,346 306,853 119,869

Lead concentrate (dmt) 9,079 13,835 35,447 38,816

Payable sales

Zinc (lbs) 75,512,580 43,892,815 279,223,613 105,115,820

Zinc (t) 34,252 19,909 126,654 47,680

Lead (lbs) 8,089,924 12,068,528 29,206,857 31,605,312

Lead (t) 3,670 5,474 13,248 14,336

Silver (ozs) 281,196 434,418 932,399 1,142,631

Three months ended 2018 YTD

Consolidated Production Results

Summary Financial Results

Consolidated Sales Results




Trevali – Operational Results

6

▪ Costs generally tracking within guidance ranges

▪ Q3 C1 cash cost of $0.72/lb. YTD $0.73/lb Zn

▪ Costs remain within 2018 guidance of $0.67 - $0.73/lb, despite weaker Pb and Ag prices YTD

▪ Q3 cash costs per tonne milled of $67/t. YTD $66/t

▪ 2018 guidance of $60 - $66/t

Note: Q4 2018E mine-site production estimates are for illustrative purposes and based on the lower end of guidance ranges.

(1) Constitutes forward-looking information; see “Cautionary Note Regarding Forward-Looking Statements”. Trevali’s interest is 90% of Perkoa and 90% of Rosh Pinah.

(2) Operating costs are based on various assumptions and estimates, including, but not limited to: production volumes, commodity prices (Zn: $1.25/lb Pb: $1.00/lb Ag: $19/lb) and foreign

currency exchange rates (N$/USD: 13.00; XOF/USD: 609; PEN/USD 3.25; C$/USD $1.25) and is a non-IFRS measure. See “Non-IFRS Measures”

12.1 14.6 14.1 11.0 16.4 13.5

17.9 20.8 21.7

19.1 20.5 18.6

-

15.1

47.7 45.9

46.2 44.4

-

8.0

21.3 22.8

20.8 25.1

0

20

40

60

80

100

120

140

160

Q2 2017A Q3 2017A Q4 2017A Q1 2018A Q2 2018A Q3 2018A Q4 2018E

Pay

able

Zn

(m

m lb

s)

Santander production Caribou production Perkoa production

Rosh Pinah production Upper guidance Consolidated payable Zn sales

High end of guidance

Low end of guidance


Trevali – Quarterly Financial Results

7

▪ Net loss of $30.8 million largely due to low net revenue

▪ Relative to Q2, revenues in Q3 2018 negatively impacted by:

▪ Lower sales volumes (QoQ ↓ 38.7 mm lbs, ↓ 34%)

▪ Decline in zinc prices (↓ $0.26/lb, ↓19% QoQ)

▪ Provisional pricing adjustments ($42.6 million)

▪ In October, Rosh Pinah shipped concentrate totaling 25,472 DMT

▪ 87% of concentrate produced in Q3


Trevali – Provisional Pricing Explained

8

▪ Provisional pricing reflects two components:

▪ Final settlement of sales

▪ Mark-to-market of open contracts that have not yet settled

▪ Provisional pricing sensitivity will vary quarter to quarter and depends on numerous factors, including:

▪ Quantity of metal provisionally priced

▪ Final timing of settlements for each of the four mines

▪ Settlement periods generally range from one to 6 months after shipment

▪ Settlement price is at average LME for the month of settlement

▪ Actual zinc price movements throughout the quarter

▪ 3-month forward average zinc price for the last month in the quarter

▪ Quantity of other Zn sales made during the quarter


Trevali – Strong Financial Position

9

▪ September 30, 2018

▪ $93 million cash & equivalents

▪ $155 million total debt

▪ $62 million net debt

▪ $9 million settlement of financial leases in October 2018

▪ $175 million in working capital

▪ Amended Credit Facility effective September 18, to $275 million

▪ $149.5 million drawn as at September 30, 2018

▪ Replaced the $160 million Term and $30 million Revolving Credit facilities

▪ Reduces interest payments and provides flexibility to repay debt without compromising liquidity

▪ No principal repayments required until maturity in September 2022

▪ Implementing a NCIB for up to C$20 million, with actual repurchased dependent on:

▪ Market conditions

▪ Trevali share price performance

▪ Other uses of cash

▪ Other factors

Undrawn RCF*$ 119.6 mm

Cash$ 93.1 mm

Liquidity at Sept. 30, 2018

*net of $5.9 mm in Letters of Credit

$212.7 mm


Location Burkina Faso (150 km west of Ouagadougou)

Ownership 90% Trevali, 10% Government of Burkina Faso

Type of deposit Volcanogenic Massive Sulphide (VMS)

Mining Underground - Transversal and retreat

ProcessingConcentrator plant with crushing, milling,

flotation, thickening and filtration

End product Zn concentrate

Infrastructure2,000 tpd underground mining operation and

processing mill

Current mine life 5 years; remains open, drilling ongoing

Perkoa MineBurkina Faso

Perkoa Mine

Primary metal



(1) Site operating cost per tonne milled is a non-IFRS measures. See “Non-IFRS Measures”

(2) Revenues include effects of settlement adjustments on sales from prior quarters, smelting, refining

and freight, and is calculated on a 100% basis.

Perkoa Mine – Q3-2018 Operational Review

11

Q3-2018

Tonnes Mined 171,739

Tonnes Milled 183,367

Average Head Grades:

Zinc (%) 14.5

Average Recoveries (%):

Zinc 90

Concentrate Produced DMT (dry metric tonnes):

Zinc 48,096

Concentrate Grades:

Zinc (%) 50

Payable Production:

Zinc (pounds) 44,383,330

Cash Operating Costs per Pound of Payable Zinc Produced $0.79

All-In Sustaining Cash Cost Cash per Pound of Payable Zinc Produced $0.84

Site Cash Operating Cost per Tonne Milled(1) $103

Perkoa Mine Production Results (100% basis)

Q3-2018

Zinc Concentrate (dry metric tonnes) 41,849

Payable Zinc (pounds) 38,399,626

Revenues(2) $15.5 million

Perkoa Mine Sales Results (100% basis)

▪ Q3 production of 44.4 mm lbs Zn

▪ Annual zinc production guidance increased for 2nd

time this year to 172-180 million payable pounds

▪ Zn concentrate production above expectations

▪ Strong mill availability

▪ Record mill throughput in Q3

▪ Continued high grades (14.5%)

▪ Q3 total site cash operating costs of $103/t

($101/t YTD). 2018 guidance of $103 - $113/t

▪ $9 million Heavy Fuel Oil Generators installation

underway with commissioning expected in early

Q1/19. Both generators arrived on site in October.

Operating costs savings of ~$5/t expected

▪ Regional exploration drill program commenced in

late October testing two new VMS systems


Location Namibia (600 km south of Windhoek)

Ownership 90% Trevali, 10% Namibian Empowerment Partners

Type of deposit Sediment hosted massive sulphide

Mining Underground – Sub-level open stoping

ProcessingConcentrator plant with crushing, milling, flotation,

thickening and filtration

End product Zn concentrate and Pb-Ag concentrate

Infrastructure2,000 tpd underground mining operation and processing

mill


Rosh Pinah MineNamibia

12

Rosh Pinah Mine

AFRICA

NAMIBIA


Primary metal By-product metals


Rosh Pinah Mine – Q3-2018 Operational Review

13

(1) Site operating cost per tonne milled is a non-IFRS measure. See “Non-IFRS Measures”

(2) Revenues include effects of settlement adjustments on sales from prior quarters, smelting, refining

and freight charges, and is calculated on a 100% basis. There were no sales from Rosh Pinah in

August and September.

▪ Q3 production of 25.1 mm lbs Zn

▪ Quarterly production record under TV ownership

▪ Metal production increased in Q3 as planned as mine

sequencing moved into higher-grade stopes

▪ 2018 guidance unchanged at 95-105 mm lbs Zn

▪ Milled tonnage was reduced in Q3 to better manage

float cell capacity as higher zinc feed grades were

processed

▪ Costs/tonne in Q3 as a result above guidance, but

higher grades milled delivered a 20% rise in QoQ

Zn production

▪ Costs/lb of $0.48/lb below 2018 guidance of $0.55

- $0.60 (YTD $0.62/lb)

▪ Zn concentrate inventory build-up at site being

reduced with 25,472 DMT sold in October

▪ Increased moisture content in final concentrate

impacted Q3 sales

▪ RP2.0 (increase in mill throughput to 3,000 TPD)

advancing to PFS given attractive rate of return and

upside optionality. Board decision expected mid-2019

Q3-2018



Average Head Grade:

Zinc (%)

Lead (%)

Silver (oz/t)

10.9

0.8

0.35


Zinc

Lead

Silver

88

48

38

Payable Production:


Lead (pounds) 968,376

Silver (ounces) 16,524

Cash Operating Costs (per pound of payable zinc produced) $0.48

All-In Sustaining Cash Cost Cash (per pound of payable zinc produced) $0.71

Site Cash Operating Cost (per Tonne milled)(1) $66

Rosh Pinah Mine Production Results (100% basis)

Q3-2018


Lead Concentrate (dry metric tonnes) 0

Payable Sales:


Lead (pounds) 0

Silver (ounces) 0


Rosh Pinah Mine Sales Results (100% basis)


Location Bathurst Mining Camp, New Brunswick, Canada

Ownership 100% Trevali

Type of deposit Volcanogenic Massive Sulphide (VMS)

Mining Underground - Modified Avoca (cut-and-fill)




Infrastructure3,000 tpd processing mill; 2,600 - 2,700 tpd

underground mine


Bathurst Mining Camp OperationsNew Brunswick, Canada

CANADA

NEW BRUNSWICK

Primary metal


Caribou Mine

By-product metals


Caribou Mine – Q3-2018 Operational Review

(1) Site operating cost per tonne milled is a non-IFRS measures. See “Non-IFRS Measures”

(2) Revenues include effects of settlement adjustments on sales from prior quarters and smelting, refining

and freight charges.

15

Q3-2018



Average Head Grades:

Zinc (%) 5.7

Lead (%) 2.3

Silver (oz/t) 2.1


Zinc 78

Lead 57

Silver 31

Payable Production:


Lead (pounds) 6,104,356


Cash Operating Costs (per pound of payable zinc produced) $0.89

All-In Sustaining Cash Cost (per pound of payable zinc produced) $1.11

Site Cash Operating Cost (per Tonne Milled)(1) $62

▪ Q3 production 18.6 mm lbs Zn, 6.1 mm lbs Pb

and 167 koz Ag

▪ As reported Oct. 22, 2018 Zn guidance

reduced to 70 – 75 mm lbs (from 86 – 90

mm lbs)

▪ Operating costs/tonne of $62/t above prior

guidance of $55 - $61/t

▪ Increased use of cemented rock fill (CRF)

▪ 2018 guidance raised to $63 - $69/t

▪ Targeting a return to normal mining rates in

Q2/19

Q3-2018


Lead Concentrate (dry metric tonnes) 7,099

Payable Sales:





Caribou Mine Production Results

Caribou Mine Sales Results


Caribou Mine – Production Update

Cross section showing the location of Zone 13

on the Eastern side of the orebody

Primary Causal Factors

• Concentration of stress as the mining front

retreats to the center of the level

Actions to mitigate

• Development rates have been increasing

throughout the year to spread mining

activities through the mine (debottleneck)

• Modified ground support & Cemented fill

utilized in key locations to provide additional

support

• Expert consultants to ensure short,

medium, and long-term stability

Timeline to return to normal operations

• Mitigation works are advancing on schedule

and the mine will return to “normal”

production in Q2-2019.

Future / Long Term Implications

• Limited - Ore Loss from zone 13 and 11

total approx. 50kt

• New support and backfill requirements will

be built into LOM plans

• Site will continue to use Modified Avoca /

longitudinal retreat mining.

16


Location Peru (approx. 200 km northeast of Lima)

Ownership 100% Trevali

Type of deposit Carbonate Replacement Deposit (CRD)

Mining Underground - Modified Avoca (cut-and-fill)




Infrastructure2,000 tpd underground mining operation and processing

mill


Santander MinePeru


Primary metal By-product metals


Santander Mine – Q3-2018 Operational Review

18

(1) Site operating cost per tonne milled is a non-IFRS measure. See “Non-IFRS Measures”

(2) Revenues include effects of settlement adjustments on sales from prior quarters and

smelting, refining and freight charges.

▪ Q3 production 13.5 mm lbs Zn, 2.1 mm lbs Pb and

123 koz Ag

▪ 2018 zinc production guidance unchanged at 55

– 58 mm lbs

▪ Mill throughput averaged >2,200 tpd, despite

temporary blockade in Q3

▪ Mill has since been operating above target

▪ ~2,600 tpd

▪ Operating costs of $41/t in-line with Q2, despite

fewer tonnes milled

▪ Cost trend expected to be maintained in Q4

Q3-2018



Average Head Grade:

Zinc (%)

Lead (%)

Silver (oz/t)

4.1

0.6

0.9


Zinc

Lead

Silver

89

81

62

Payable Production:




Cash Operating Costs (per pound of payable zinc

produced)$0.69

All-In Sustaining Cash Cost (per pound of payable zinc

produced)$0.89

Site Cash Operating Cost (per Tonne milled)(1) $41

Santander Mine Production Results

Q3-2018


Lead Concentrate (dry metric tonnes) 1,980

Payable Sales:





Santander Mine Sales Results


Rosh Pinah

Deposit

Bathurst Mining

Camp

Santander CRD System

Perkoa

VMS Belt

Trevali Exploration Update

19

Successful exploration

& discovery:

Tier One Zn deposit

(tonnage/grade) in an

underexplored major Zn

district.

Ongoing underground

exploration continues to

extend the Western Orefield.

In-mine and regional

discovery drill program has

commenced.

Control 6 deposits in one of

the world’s larger VMS

Districts.

Unlocking the project

pipeline to provide +20

years of mine to mill

strategy.

Caribou resource expansion

drilling continue to add new

inferred resources.

Unlocking potential of the

system – discover high

grade tonnes.

Pipe – multiple high grade

Zn-Cu lenses intersected

and continuing to extend the

high-grade targets at depth.

Multiple targets identified

with potential for Zn–Pb–Ag

replacement and porphyry

Cu style mineralization.

Perkoa resource expansion

drilling continued to extend

high-grade zinc hangingwall.

Continue to test the depth

and lateral extents of Perkoa

system - two new target

horizons identified.

Two new VMS systems

identified regional – drilling

in progress

➢ Aim is to expand and discover new mineral resources adjacent to existing mine infrastructure, replace mined inventory,

grow sustainable production, extend expected mine life and ultimately, contingent on success, provide production

growth optionality to the operations.

➢ Exploration drilling at Trevali’s four mines totaled approximately 25,000 metres during Q3 - 2018.

➢Proven exploration team – lower quartile discovery costs providing

strong leverage for generating shareholder value.

➢All deposits remain open for expansion – drives increased

Life Of Mines (LOM) - ~60,000m committed brown-field (low risk) drill

campaign in progress.


Perkoa Exploration Q3-2018

Perkoa Mine: Value Add

• Resource expansion drilling continued to return high-grade zinc

results up to 320m below the current modelled mining level

• Deepest hole has intersected high grade mineralization

PUX016: 18.3m at 13.2% Zn, incl. 6.75 metres at 18.78% Zn-

open at depth

• Continued to test the depth and lateral extents of the Perkoa system

• Q4: Directional drilling from surface to drill multiple intersects, aiming

to increase inferred resources

Regional: Value Creation

Two New VMS systems identified:

• AF1: Mineral system analysis suggests larger hydrothermal

system then Perkoa – requires drill testing

• Byrhado: Stacked gossan horizons plus stockwork zone

discovered with geochemical support

• Drilling in progress – 2nd rig currently being mobilized

Map showing areas worked in Q3 and drill targets planned during Q4Hangingwall Lens Long Section

20


Santander Exploration Q3-2018

Value Add:

• Magistral – Exploration drilling continues to test the deposit

extensions approximately 350m below current development.

• Pipe – continuing to extend the high-grade Zn-Cu targets at depth.

o Multiple high grade lenses intersected

o Q4: continue to drill test and delineate high grade

mineralization and associated geophysical anomalies

Value Recognition and Creation:

• 45 km2 Santander exploration block remains under-

explored and recent geophysical and geochemical

surveys have defined several high priority targets

• 8 distinct hydrothermal centers defined multiple targets

with potential for polymetallic replacement and vein type

mineralization

Magistral Sur

Magistral Section looking West HG Pipe Section looking North

21


Value Add:

• Caribou UG exploration and definition drill program at East

Limb and Hinge Zone in progress – 3,000m complete in Q3

and 4,000m remain for Q4


• Murray Brook JV - metallurgical and geotechnical drilling

complete. Met testwork in progress - results pending.

• Trevali / Puma Exploration Alliance – exploration continue along

+30km long productive and under-explored Caribou ore horizon

Bathurst Mining Camp Exploration Q3-2018

Caribou East and North Lenses – Q3 2018 Exploration Drill Program

Targeting remaining portion of

the hinge zone.

Positive drill hole intersections

in the area.

22


Value Add - Western Orefield Resource Extension Drilling:

• Ongoing underground exploration continues to extend and

define the emerging NW extension in the Western Orefield.

• Rosh Pinah deposit re-targeted from first principles and known

deposits exhibit strong plunge suggesting excellent potential

to discover new extensions.

• 9.1 m grading 15.6% Zn, 0.13% Pb, 3.6 g/t Ag



Rosh Pinah Exploration Q3-2018


• An initial ~10,000-metre in-mine and regional

discovery drill program has commenced.

• Data mining - numerous priority targets identified.

200m

EXT –

WF3

WF3

EF1

PO

TE

NT

IAL

EX

T -

EF

1

SF1

23


Wrap Up

▪ Diversified production base helping to add operating stability

▪ Continue to target 2018 zinc production of 400+ million lbs

▪ Cash costs per pound YTD of $0.73/lb are within guidance

▪ Revenues impacted in Q3 by timing of sales and decline in zinc price

▪ Provisional pricing impact of $42.6 million

▪ Stronger sales in Q4 expected

▪ Maintained strong liquidity – $93 million cash and total liquidity of $213 million

▪ Continue to optimize existing operations and look for ways to reduce costs and increase efficiencies

▪ Exploration program remains a key value driver, with the focus this quarter on drilling new VMS targets at

Perkoa & expanding the Santander Pipe

▪ Continue to evaluate organic growth opportunities at both Rosh Pinah and in the Bathurst Mining Camp

▪ Intention to launch NCIB for up to C$20 million


Trevali Mining CorporationSuite 1400-1199 West Hastings Street

Vancouver, BC, V6E 3T5, CANADA

Tel: 1-604-488-1661

Fax: 1-604-629-1425

www.trevali.com

A member of the

Steve StakiwVice President, Investor Relations and

Corporate Communications

[email protected]

Direct phone:1-604-638-5623

q3-2018 results presentation · q3 production of 101.6 million lbs payable zn continue to target...

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