urbanfibre corporate presentation

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•  Click to edit Master text styles •  Second level

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•  Fi8h level Ultra High Speed

1-Gig Internet Service in

Greater Vancouver

High-Margin Business Backed by 200km of 100%-Owned Fibre Optic Network

UBN.TSXV | 01.2016




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FORWARD-LOOKING STATEMENT

During the course of this presentation, Urban Communications Inc. will make a number of statements with regard to the Company’s products, business strategy and plan, which could be construed as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause results to be materially different than expectations.




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THE URBAN OPPORTUNITY Urban has the largest independent fibre network in Southern BC stretching over 200km to deliver high margin, ultra high speed internet services. The Fibre Optic Network Allows Urban To:

•  Build a High-Margin Monthly Subscriber Base

•  Create a High-Value Subscriber Acquisition Opportunity for Shareholders




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THE NEED FOR ULTRA HIGH SPEED INTERNET IS SKYROCKETING

•  Internet traffic increased 46% in 2014 in North America and expected to grow 300% from 2014 to 2019

•  Primarily from increased video (Netflix) and high quality of service

demanded for those applications. Internet video traffic was 73% of all Internet traffic in 2014.

DRIVERS FOR FIBRE

•  Today, a typical consumer household connects to the Internet through 8-12 devices, where each devices slows down the network connection

•  According to NPD Group data, the percentage of US households subscribing to premium TV channels dropped from 38% in March 2012 to 32% in August 203, while the share of households subscribing video-on-demand services rose from 23% to 27%




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FIBRE – THE NEXT UTILITY MACRO TRENDS EXTREMLY BULLISH

January 2016 - Fibrenoire Purchased by Videotron for $125 Million Montreal-based Fibrenoire operates a 4,500-kilometre fibre-optic network in Toronto, Ottawa, Montreal and Quebec City. December 2015 – AT&T to roll out Gigabit to 38 more cities in 2016 AT&T expansion plans will grow coverage from 1 million to 14 million November 2015 - MTS Allstream purchased by Zayo for $465,000,000 MTS Allstream operates a 30,000 kilometre fibre optic network. October 2015 - Telus to spend $1 billion on fibre optic network Telus plans to invest $1billion on building out its fibre network in BC. June 2015 – Bell Canada to spend $1.14 billion on fibre optic network. Bell plans to deliver gigabit internet to 1 million+ in Toronto area.




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URBAN’S 100%-OWNED FIBRE OPTIC NETWORK

•  200 Km of network gives access to serve over 850,000 households and 80,000 commercial enterprises with Ultra High Speed Internet

•  Recent 3rd party valuations put the replacement cost of Urban’s dark fibre network over $57M (current Market cap of ~$5.5M)




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CREATE VALUE: Three Verticals to Grow

Urban is leveraging its existing network to launch a 1,000 Mbps (1 Gig) service into homes and offices.

Urban has identified THREE key verticals to create Shareholder Value:

Residential On-Net Commercial On-Net Municipal Partnerships •  First to offer residential

consumers 1-Gig Internet service

•  100x faster than competitors’ internet service

•  End-to-end solutions to businesses

•  Can support high-bandwidth applications:

•  Digital Phone Lines •  Hosted Office

Applications •  Cloud Services •  Offsite backup •  Virtual Private

Networks

•  Allow Municipalities to better compete

•  Interconnect municipalities and provide transit to Internet

•  Launch Urban services on their build cost

•  Provides significant cost savings and faster time to market.




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Vertical #1: Residential On-Net

UrbanFibre is delivering up to 100 times faster internet speeds than what most North Americans have access to today

PROMOTIONAL POSTER

100x FASTER THAN

BROADBAND

What does that mean? •  Instant downloads •  Crystal clear high definition TV •  Urban offers 1,000mbps service at a price

the competition charges for 25mbps service




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VERTICAL #2: COMMERCIAL ON-NET

•  Urban offers high quality end-to-end data solutions for businesses of all sizes through delivery over the fibre connection.

•  Urban has the resources and facilities in place to accommodate today's most critical high-bandwidth applications including:

•  Digital Phone Lines •  Hosted Office Applications •  Cloud Services •  Offsite backup •  Virtual Private Networks

•  Why we win •  Significant margins means greater service at a fraction of the price

of the incumbent carriers.




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VERTICAL # 3: MUNICIPAL PARTNERSHIPS

•  Extend existing suite of disruptive products and services into municipal partnership opportunities

•  Competitive Advantage – Urban leverages existing network to offer transit services to municipalities

•  Municipalities across North America racing to create their own Utilities and revenue streams are looking to fibre.

•  Creates a niche for Urban to leverage Municipal buildout to compete with incumbent carriers •  Reduces capital expenditure requirements by 50%,

increasing margin

•  Objective: 3-4 Additional municipal partnerships in 2016: 10 year deals, with 10 year options




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STRATEGIC ROLL OUT DISRUPTIVE 1-GIG INTERNET SERVICE

UBN FIBRE NETWORK

TOTAL SERVICABLE MARKET WITHIN 200km NETWORK: Residential Units: 1,000,000+

Commercial Enterprises: 80,000

New Westminster

UPCOMING TARGET

CONNECTED

LEGEND

SFU URBAN’S TOTAL SERVICEABLE HOUSEHOLDS: Dec 2015: 3,500 Mar 2016: 8,000+

HOUSEHOLDS: 17%

HOUSEHOLDS: 4% HOUSEHOLDS: 8%

HOUSEHOLDS: 4%

HOUSEHOLDS: 7%

HOUSEHOLDS: 30%

HOUSEHOLDS: 9.5%




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RESIDENTIAL POSITIONING LOW MEDIUM FAST

Telus $63 (15x1 Mbps)

$68 (25x5 Mbps)

$93 (100x20 Mbps)

Shaw $53 (5x0.5 Mbps)

$93 (60x6 Mbps)

$123 (120x10 Mbps)

Novus $40 (25x10 Mbps)

$62 (50x10 Mbps)

$113 (300x15 Mbps)

URBAN $49 (100x100 Mbps)

$49 (100x100 Mbps)

$79 (1,000x1,000 Mbps)

SMALL MEDIUM LARGE XL

Telus $69 (6x1 Mbps)

$99 (25x10 Mbps)

$129 (50x10 Mbps)

$1,400 100x100 Mbps

Shaw $55 (5x0.5 Mbps)

$65 (20x1.5 Mbps)

$85 (30x2.5 Mbps)

$1,400+ 100x100 Mbps

Novus $75 (25x25 Mbps)

$148 (50x50 Mbps)

$249 (100x100 Mbps) -

URBAN $149 (100x100 Mbps)

$149 (100x100 Mbps)

$149 (100x100 Mbps)

$499 (1,000x1,000 Mbps)

Margin on Product 60%+ 60%+ 60%+ 60%+

COMMERCIAL POSITIONING




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Urban is targe&ng to have 5,886 residen&al and 840 commercial customers on-‐net by the end of 2018.

PROJECTED SUBSCRIBER GROWTH

2016 2017 2018

Buildings/Fibrehoods Live:

Residential 98 207 325

Commercial 36 105 207

Total 134 312 532

Urban Internet Subscribers:

Residential 1,499 3,253 5,886

Commercial 120 388 840

Total 1,618 3,642 6,725

Subscriber Value = 48 months revenue. Deals in Canada have seen as high as 60 months revenue.




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MONTHLY FORECAST REVENUES BY SOURCE

-‐

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Jan-‐15

Mar-‐15

May-‐15

Jul-‐1

5

Sep-‐15

Nov-‐15

Jan-‐16

Mar-‐16

May-‐16

Jul-‐1

6

Sep-‐16

Nov-‐16

Jan-‐17

Mar-‐17

May-‐17

Jul-‐1

7

Sep-‐17

Nov-‐17

Jan-‐18

Mar-‐18

May-‐18

Jul-‐1

8

Sep-‐18

Nov-‐18

Business

ResidenMal

BASE / ENTERPRISE




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Growing Demand for UBN’s 1-Gig Internet Almost 5,000 requests for Service since April 2015




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John Farlinger,CEO • Veteran technology executive and entrepreneur

• Over 20 years of experience in telecom, operations, technology and finance

• Past positions: CEO of Titan Communications/Galaxy Multimedia Inc.; CEO and President at Silicon Valley-based Adzilla Inc.; COO of Seattle-based Quanta Investment; and CFO of Lavalife, the world’s largest independent provider of technology-based meeting services.

Mike Schmidt, President • Over 20 years of sales and marketing experience

• Past Positions: VP, Business Development for TeliPhone Corp, CEO of Uniserve Communications, a TSX Venture listed Canadian national telecommunications provider; VP, Sales and Marketing, and a founding member of Parasun Technologies, a provider of software to cable operators, and pioneer in Internet delivery over cable.

HIGHLY EXPERIENCED MANAGEMENT TEAM

Tom Samplonius, VP of Technology • Seasoned Internet technologist, specializing in ISP technology and operations

• Prior to joining UBN: VP of Operations at Uniserve Communications and helped grow the business from 300 subscribers to 120,000 subscribers, including 20,000 broadband customers.

Julie van Baarsen, CFO • Over 23 years as a Chartered Accountant

• Previous Tenures: VP, Finance of Teliphone Navigata-Westel Commnications Inc., where she integrated several acquisitions CFO of Petaquilla Minerals Ltd., an operating mining company listed on the TSX

• Over 20 years of product management and marketing experience

• Previous Positions: Head of Product Marketing for global email security provider Fusemail, Director of Marketing at Titan Communications/Galaxy Multimedia Inc., Director, Product Management at Sutus and Director Product Development Group at Adzilla Inc.

Jon Paul Janze, VP, Product

• Over 20 years of sales, business development and product management experience in the telecom sector.

• Previous Positions: Lead Unified Communications and Collaboration sales efforts in BC for MTS Allstream, Infrastructure Solutions Product Manager for Bell Canada, and Managing Director, Consumer Strategy at Telus

Geoff Hultin, VP, Corporate Sales




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CORPORATE OVERVIEW

Urban Communications Inc. (TSX.V: UBN) (“Urbanfibre”) is a telecommunications company providing a full suite of Internet, voice, video and broadband application products over its state-of-the-art carrier grade fibre optic network to commercial, residential and public sector customers.

Share Structure as at Jan 07, 2016

Shares Outstanding 65,539,965

Options 5,577,500

Warrants (strike price: $0.10-$0.20) 45,971,390

Embedded Warrants 807,275

Fully Diluted Shares 117,896,130

Management Ownership >20%




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Next Steps

Q1 2016 2nd Municipal Partnership

FEB 2016 Complete

Private Placement

JAN 2016 IPTV Beta

Launch

Non Municipal

Municipal

MAR 2016 IPTV

General Launch

Q2 2016 3rd Municipal Partnership

Q3 2016 4th Municipal Partnership

Q4 2016 5th Municipal Partnership

MAY 2016 Residential

Phone General Launch

OCT 2016 Complete round of

growth funding




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CONTACT INFO

John Farlinger Chief Executive Officer

604.763.7565 [email protected]

Caleb Jeffries Investor Relations 604-684-6730 [email protected] [email protected]