south american gold - orosur · corporate snapshot orosur investor presentation i february 2018 i 4...

SOUTH AMERICAN GOLDProduction, Development & Exploration

Exploration Update in Colombiawww.orosur.ca I TSX:OMI, AIM:OMI I February 2018

Disclaimer

This document has been issued by Orosur Mining Inc. (the “Company”). This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for,any securities of the Company, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute arecommendation regarding the securities of the Company. In particular, this document and the information contained herein does not constitute an offer of securities for sale in the United States.

This document is being supplied solely for information. The information in this document has been provided by the Company or obtained from publicly available sources. No reliance may be placed for any purposeswhatsoever on the information or opinions contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or any of the Company’s directors,officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of the Company’smembers, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.

Nothing in this document or in the documents referred to in it should be considered as a profit forecast. Past performance of the Company or its shares cannot be relied on as a guide to future performance.

All statements, other than statements of historical fact, contained in this presentation constitute "forward-looking statements" within the meaning of certain securities laws, including the "safe harbour" provisions of theSecurities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this presentation. Such forward-looking statementsinclude statements relating to funding the planned drilling at Anza and San Gregorio, definition of a first mineral resource calculation on the Anza property for precious and base metals, delivery of a PEA on Anza, potentialto build a mining operation in Colombia, exploration results in Chile, completion of a NI 43-101 compliant technical report of the Anza property, the increase in mineral reserves, expected additional capital costs andoperational costs, net present value and the extension of mine life. Such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in suchstatements. Such risks and uncertainties that may affect actual results include, but are not limited to; results of the drilling plan at Anza, environmental base line results, social base line results, upgrading camp facilities,initiation of more active communities engagement, permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes, requirements for additional capital and the priceof gold. Other risks and uncertainties are included in the Company’s most recently filed Annual Information Form under the heading “Risk Factors”. The Company has made certain assumptions about the price of gold. TheCompany does not intend to update any forward looking statements except to the extent required by applicable law.

Qualified Person's Statement

All technical information related to the current assets of Orosur Mining in this presentation has been reviewed by Miguel Fuentealba, a Mining Engineer who is considered to be a Qualified Person under NI 43-101 reportingguidelines. Mr. Fuentealba is a graduate in Mining Engineering from the University of Santiago de Chile and is an AusIMM Member and Qualified Person of Chilean Mining Commission. Mr. Fuentealba has 20 years ofprofessional experience in the field of mining engineering, mine development and management.

For further details regarding the any of Orosur’s projects, please refer to the technical reports available under Orosur company profile, or Waymar Resources profile for previous Anza technical reports, on SEDAR atwww.sedar.com

Non-GAAP Financial Measures

Cash flow from operations and cash cost per ounce are not measures that have any standardized meaning prescribed by IFRS and are considered non GAAP measures. Therefore these measures may not be comparable tosimilar measures presented by other issuers. These measures have been presented in this presentation as additional information regarding the Company’s financial performance and financial position. Cash flow fromoperations is calculated by adding back non-cash items to net earnings. Contribution margin has been calculated by deducting operating expenses from sales. Operating expenses include movements in inventories butexclude operating amortization and depletion. Cash cost per ounce are determined according to the Gold Institute Standard and consist of site costs for all mining, processing, administration, royalties, refining charges, silvercredits and inventory adjustments relating to metal production. Capital expenditure, depletion and amortization, corporate costs and financing costs are not included. Cash costs per ounce are total cash costs divided bygold ounces produced.

2Orosur Investor Presentation I February 2018 I www.orosur.ca

Strategic Footprint in Prolific Belts

COLOMBIA, AnzáHigh Grade Gold Discovery with multiple untested targets

• Antioquia Department• Between Buritica and El Roble-Marmato deposits• Drilling at present, high grades over significant widths• Mining permit in place

URUGUAY, San GregorioGreenstone Belt next to Producing Mine

• Northern Uruguay, close to Brazil• Produced over 1.4Moz to date• Built many open pits, 2 underground mines• 100km in underexplored greenstone belt


Corporate Snapshot


Current Price¹ C$/sh $0.16

52 week range C$/sh $0.15 - $0.32

Average Daily Volume ‘000 147

Basic S/O #M 117.6

Options and Warrants #M 15.7

Fully Diluted S/O #M 133.3

Market Capitalisation C$M $18.2

Net Cash³ C$M $0.4

Enterprise Value C$M $17.8

Note 1: Sourced tmx.com and Bloomberg.com as at 19 February 2018Note 2: Sourced from most recently published research Notes, GBP:CAD rate assumed at 1.76Note 3: As at 30 November 2017

TSX/AIM Dual Listed: OMI12 Month Share Performance

Research Target Prices²Cantor Fitzgerald Asa Bridle January 29, 2018 C$0.51 (£0.29)

Edison Investment Research Limited Tom Hayes January 26, 2018 C$0.30 (£0.17)

Numis Securities Jonathan Guy January 15, 2018 C$0.62 (£0.35)

Average C$0.48 (£0.27)

A V E R A G E U P S I D E T O R E S E A R C H T A R G E T O F O V E R 2 0 0 %

Top 5 Shareholders

Name %

Paul Stephens 7.3%

Gold 2000 6.4%

Continental 6.4%

Fidelity 4.2%

Emma Cawkwell 2.3%

Advisors:

Cantor Fitzgerald Nomad & Joint Broker

Numis Securities Joint Broker

The Team – Experience & Commitment

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Board of directorsJohn WalmsleyNon Executive Chairman

• 30 yrs oil & gas experience• Chairman – Pantheon Resources• Exec Chair - Consilience Energy

Ignacio SalazarCEO & Director

• CEO of Orosur since 2013 • President Uruguay Mining Chamber• 18 yrs with Royal Dutch Shell • MSc. In Economics & Business Admin, Masters Degree in Law

Jorge AceitunoCOO and Director

• 30 yrs international geology and operational roles for mining companies incl. GM, Operations for Maricunga, Pascua-Lama and Zaldivar

Roger DaveyNon-Executive Director

• Mining Engineer >40 yrs international experience incl. N M Rothschild, Minorco/AngloGold

• Director of Atalaya Mining, Condor Gold, Tharisa, & Central Asia Metal

Horng Dih LeeNon Executive Director

• CA with >25 yrs finance and admin• Former CFO of Eastern Platinum & Northern Orion Resources

ManagementAlejandra LópezCFO

• CA and MBA with >12 years experience, incl. 8 years with Orosur and previously senior auditor atErnst & Young.

Ryan CohenVP - Corporate Development

• >12 yrs in the mining sector across investment banking, investor relations, management and corporate advisory roles. Previously a Director, ECM with Canaccord Genuity

Fernando FuentesGM, San Gregorio

• >25 yrs in the mining sector, incl. 20 yrs with Orosur

Jerónimo Jáñez Exploration ManagerUruguay

• Mine geologist with >10 yrs in gold/base metals & OP/UG Ops

• Geology degree from La Plata National University

Joaquín SarrocaLegal Counsel

• Corporate lawyer >10 yrs experience• Master of Law - International Business (LLM) / Uruguayan

Lawyer

Héctor LópezAdministration & Budget Manager

• >12 yrs finance experience• Worked for Rea Gold, who developed the San Gregorio

mine

Orosur Investor Presentation I February 2018 I www.orosur.ca

Strategy: Investment Summary

6

Increasing value for shareholders: Multiple opportunities for a re-rating

Value Proposition

Strong Asset Base • Production in Uruguay with material organic growth opportunities

• High grade gold exploration project in Colombia

• Gold exploration asset in Chile

Proven team • Operating expertise, including CSR, exploration, development, mining & processing

• Solid track record of delivering on guidance

• Strong Latin American expertise

• Very low economic threshold to develop and mine reserves from the Company’s greenstone belt in Uruguay

• Opportunity to increase production/Life of mine in Uruguay – and strong leverage to increased in gold price

• Colombia exploration upside – prolific belt, known drill intersected mineralization, untested anomalies

V A L U E A C C R E T I O N : P R O G R E S S I N E X P L O R AT I O N B Y P R O V E N M I N I N G T E A M


Anza, ColombiaDrill Bit Success, More to Follow

>200km2 property package

1 high grade discovery, 4 untested gold targets in soil anomalies


Strategically Located in Prolific Belt

8Note 1: Sourced from company websites, tmx.com & public disclosure as at 19 February 2018

1. Well positioned to develop a project• 100% owned - no 3rd party commitments• All season access with excellent infrastructure,

including grid power, water and labour

2. High grade gold discovered at APTA• Abundant high grade drilled gold intercepts

3. Mining & environmental permits already in place• Existing today for a smaller operation, will need to be

expanded• Located between 700 – 2,000m elevation

4. Significant upside• APTA remains open along strike and at depth• Only APTA tested out of 5 identified targets• +200km2 property

5. Drilling ongoing at present


Tactical Acquisition During Bear Market

9


APTA: Outstanding Historic Drilling Results¹

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Hole From To Interval Au Ag Zn

# m m m g/t g/t %

MAP‐11 213.0 219.0 6.0 18.26 1.95 0.35

including 217.5 219.0 1.5 72.30 6.90 0.93

MAP‐20 145.0 186.0 41.0 3.85 1.39 1.25

including 171.3 177.0 5.7 19.84 3.94 1.66

MAP‐21 224.0 242.0 18.0 14.14 2.05 2.83

including 225.0 229.4 4.4 45.62 5.47 10.59

252.0 253.0 1.0 10.85 1.80 0.67

MAP‐29 183.0 194.9 11.9 10.57 2.40 1.61

including 185.0 187.0 2.1 40.25 4.85 4.64

MAP‐33 157.1 179.5 22.4 10.42 1.87 1.56

including 165.0 170.8 5.8 29.49 3.37 2.81

MAP‐36 198.6 227.5 28.9 3.88 1.68 0.43

including 205.5 217.5 12.0 8.83 2.65 0.59

MAP‐38 123.4 124.5 1.1 15.40 3.60 1.94

172.0 212.5 40.5 14.09 3.82 1.95

including 179.5 186.0 6.5 70.99 6.34 0.12

including 184.6 186.0 1.4 176.00 15.20 0.39

including 202.0 205.4 3.4 20.89 9.71 4.75

MAP‐43 65.5 68.6 3.1 7.66 73.04 0.68

167.5 231.5 64.0 1.88 1.88 0.70

including 209.0 214.0 5.0 9.07 3.40 0.70

MAP‐47 105.0 118.3 13.3 2.24 316.25 1.00

including 106.0 110.5 4.5 4.69 768.89 2.34

MAP‐48 181.0 195.7 14.7 40.37 9.30 3.41

including 185.5 195.7 10.2 58.03 13.16 4.85

including 187.6 189.5 1.9 219.00 29.50 6.55

As announced by Waymar Resources – Press Releases 2010 - 2013

COINCIDENT SURFACE GEOCHEMICAL AND GEOPHYSICAL ANOMALIES

DETAILED MAPPING & DRILLING HAS CONFIRMED GEOLOGICAL POTENTIAL

• Only APTA has been drilled and is defined as a discovery

• A further 4 targets are untested

• Extensions of APTA along the Aragón Fault are Jesuitas and Guaimarala

• Charrascala is a strong soil anomaly on north-south structures, 1.5 km west of the APTA deposit

• La Cejita demonstrates gold anomalies associated with tonalite and diorite intrusives that cover an area of 6.1 km2. The most significant gold anomaly measures > 1 km2 and is associated with the northern edges of the intrusions. Porphyries and vein targets have been identified.

11

Multiple Targets with Coincident Anomalies


APTA Drilling Campaign 2017-2018


Current Drilling Validating High Grades & Thick Intervals

13

Geological Model Validated & Mineralization Extended

• Validated APTA geological model

• Mineralized zone extends 75m down dip, 50m up dip and 85m along strike to the north

• APTA high grade gold mineralized intercepts now covers a strike extent of ~1.5 km and depth extent of 275m

• Mineralization remains open in all directions

• To date, completed 16 holes (MAP_54 to MAP_69) totaling 5,640.5m at APTA

• Received assay results for 9 holes totaling 3,121m (MAP_54 to MAP_62)


Hole Number From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Zn (%)MAP_54 41.4 59.3 17.9 2.96 26.97 0.32Including 41.4 43.2 1.8 10.25 76.9 1.22Including 44.7 52 7.3 3.39 33.71 0.37

97.1 110.9 13.8 4.36 1.19 0.77Including 97.1 101.73 4.63 5.47 1.59 1.44Including 107.6 110.9 3.3 10.35 0.83 0.14

144.5 149.82 5.32 17.76 1.55 4.74Including 144.5 145.7 1.2 8.71 0.9 0.8including 145.7 146.7 1 37.96 1.3 0.7including 146.7 148 1.3 19.76 1.4 0.25including 148 148.87 0.87 17.63 1.5 7.56including 148.87 149.82 0.95 5.31 2.9 17.54

149.82 159.1 9.28 2.04 1.15 3.07including 153 155 2 3.43 0.97 1.14

309.2 313.2 4 2.96 5.7 0.41MAP_55 177 190.9 13.9 4.89 4.86 1.35Including 177 181 4 6.26 3.35 0.57Including 185 190.9 5.9 7.24 8.73 2.78MAP_56 223 235 12 1.33 0.9 0.05Including 231 233 2 2.62 1 0.02MAP_58 246 250 4 1.1 3.45 0.15

274.5 276.5 2 4.55 6.5 0.13MAP_59 163.5 195 31.5 1.86 2.39 0.49Including 181 188 7 4.66 2.17 0.27Including 192 194 2 3.4 3.55 1.13

230.5 242.5 12 1.96 2.73 0.50Including 230.5 236.5 6 3.15 1.75 0.63MAP_60 70 75.5 5.5 3.34 17.43 0.20

165 192 25 1.81 2.05 1.21Including 180 186 6 2.92 0.67 0.20Including 189 192 3 4.60 2.90 1.52

222 247 25 4.86 3.23 1.73Including 222 226 4 7.92 4.13 1.94Including 235 238 3 9.54 5.37 0.33Including 245 246 1 14.43 3.4 0.95MAP_62 60 65.3 5.3 5.09 12.06 0.37including 62.2 64.2 2 7.61 16.9 0.8

167.5 176.5 9 1.69 0.62 0.01217 240 23 5.00 3.37 0.40

Including 220 221 1 16.02 9.4 0.81Including 229.7 232.2 2.5 8.59 2.98 0.66Including 237.7 240 2.3 14.94 7.88 0.13

New Zone Defined - 450m Strike

14

Demonstrated multiple zones of gold mineralization

• Defined a new broad zone of gold mineralization covering a continuousstrike of 450m immediately north of previous drilling

• Results from two holes (MAP_60 & MAP_62) demonstrate multiplezones of gold mineralization including:

• MAP_60

• 5.5g/t Au over 3.34 metres from 70 metres depth

• 4.86g/t Au over 25 metres from 222 metres depth

• MAP_62

• 5.09g/t Au over 5.3 metres from 60 metres depth

• 5.00g/t Au over 23 metres from 217m depth

• This zone is characterized by strongly silicified breccias withdisseminated sulphides like pyrite, sphalerite chalcopyrite and traces ofgalena

Orosur Investor Presentation I November 2017 I www.orosur.ca

Mineralised

Near Term Exploration Program

15

Charrascala

• Charrascala is defined by an extensive coincident goldin soil and magnetic anomaly ~3km north-south by1km east-west.

• Surface mapping and sampling combined withinterpretation of geophysical data sets indicates verysimilar signatures to APTA

• The last phase of this drilling campaign will concludework in the center and south of APTA and increase itsfocus in Charrascala

• All permits required to complete this program havebeen granted

Orosur Investor Presentation I November 2017 I www.orosur.ca

San Gregorio, UruguayProduction with Exploration Upside

Produced over 1.4Moz over past 20 years

Strategic Footprint in 1,800 km2 Greenstone Belt With Low Economic Threshold

Orosur Investor Presentation I November 2017 I www.orosur.ca 16

Uruguay Snapshot

Country

• Population: ~3.5 million people

• High Level of Education: Literacy rates one of the highest in Latam. In 2009, became the first country in the world to provide a laptop for every primary school student

• Uruguay has the most progressive income distribution in Latin America

• Strong, long lasting track record of respect for political, social and economic freedom

• Established banking and other financial institutions

• Uruguay ranked the best place to live in Latin America1

• One of the safest countries in Latin America (along with Chile & Costa Rica)2

• Promotion and protection of investments a consistent state policy

Orosur Track Record

• In Uruguay since early 1990´s as an explorer and in production since 2004

• Workforce predominantly local – Orosur has trained the majority of its underground workforce

• Ability to permit i.e. responsibly diverted a river in 2007, permits in 6m - 1year

• Orosur has been granted a gold royalty exemption in 2015/ 2016 and again in 2017/2018

2014Orosur Investor Presentation I February 2018 I www.orosur.ca 17


San Gregorio: Greenstone Belt with Infrastructure

• Exploration efforts curtailed in the bear market: focusing on near mine exploration

• Despite under investment in exploration which has resulted in declining grade profile, the mine is breaking even at the average grade of the last two years, which has been dominantly UG

• Owner operated 1.5Mtpa CIL plant: ~ 93% average recovery, spare capacity (currently processing 800k tpa)

• Little systematic exploration to date in the Greenstone belt

18


Technical Excellence & Tested Operating Team

19

Remediated Tailings Dam

Strong Social Track Record Multiple Open Pits

US$40M Development of Arenal UG Mine

Backfill RaiseDiameter: 3.1mHeight: 210m

Main Ramp

Emergency ExitDiameter: 2m

Arenal – Over 0.5Moz OP& U/G Production

Mine Portal

Main Ventilation RaiseDiameter: 3.5mHeight: 130m

VACA MUERTA13koz @ 1.31 g/t Au

SAN GREGORIO536koz @ 2.12 g/t Au

ARGENTINITA13koz @ 1.33 g/t Au

ZAPUCAY86koz @ 1.61 g/t Au

OMBU13koz @ 1.55 g/t Au

SANTA TERESA63Koz @ 0.92 g/t Au

VETA SUR33koz @ 2.04 g/t Au

SOBRESALIENTE22koz @ 1.04 g/t Au

LAURELES12koz @ 1.10 g/t Au

VETA A29koz @ 3.10 g/t Au

VETA REY16koz @ 1.41 g/t Au

Airmag (AS) base

GUILLO5koz @ 1.09 g/t Au

ARENAL528koz @ 2.12 g/t Au

100km Long Under-Explored Greenstone Belt

20

A M O D E S T D I S C O V E R Y W O U L D R E P R E S E N T G R E A T V A L U E G I V E N T H E E X I S T I N G P L A N TO R O S U R H A S O P E R A T E D 2 0 O P E N P I T & 2 U N D E R G R O U N D M I N E S



4 9 2 , 2 6 5 M O F T O T A L D R I L L I N G I N T H E G R A N I T E G R E E N S T O N E

ONLY 39,000M DRILLED OUTSIDE 5 MAIN PRODUCING ZONES OVER 20 YEARS

Underexplored Granite Greenstone

Orosur – A New Growth Profile

22

Colombia

✓ Current drill program aimed at infill drilling and expanding known gold mineralization at the Anzá Project

✓ Active mining licence in place

✓ Exciting current drilling intersects: 17.75g/t over 5.32m, 5.00g/t Au over 23m and 4.86 g/t Au over 25.0m

✓ Mineralized zone extended 75m down dip, 50m up dip and 85m along strike to the north

✓ APTA high grade gold mineralized intercepts now covers a strike extent of 1.5km and depth extent of 275m

✓ Drilling in new target, Charrascala in next few months, extensive coincident gold in soil and magnetic anomaly

✓ Charrascala is approximately 3km north-south by 1km east-west.

Uruguay

✓ Prominent position in underexplored Greenstone belt

✓ Existing and proven CIL plant with spare capacity

✓ Proven Developer: Built two underground mines & multiple open pits

✓ Effective operators with high standards

✓ Substantial cost reductions achieved over past 4 years

✓ Uruguay is a proven and safe mining jurisdiction

H I G H Q U A L I T Y E X P L O R A T I O N A S S E T S W I T H A P R O V E N O P E R A T O R A N D D E V E L O P E R


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