Concept. Resource. Driven.

Transcription

1 1 Cncept. Resurce. Driven. Defiance Silver Crp. TSX: DEF OTC: DNCVF Investr Presentatin July 2018 Cncept. Resurce. Driven.

2 Disclaimer 2 FORWARD-LOOKING INFORMATION AND STATEMENTS This presentatin cntains frward-lking infrmatin and frward-lking statements within the meaning f applicable securities laws. This infrmatin and statements address future activities, events, plans, develpments and prjectins. All statements, ther than statements f histrical fact, cnstitute frward-lking statements r frwardlking infrmatin. Such frward-lking infrmatin and statements are frequently identified by wrds such as may, will, shuld, anticipate, plan, expect, believe, estimate, intend and similar terminlgy and reflect assumptins, estimates, pinins and analysis made by management f Defiance in light f its experience, current cnditins, expectatins f future develpments and ther factrs which it believes t be reasnable and relevant. Frwardlking infrmatin and statements invlve knwn and unknwn risks and uncertainties that may cause Defiance s actual results, perfrmance and achievements t differ materially frm thse expressed r implied by the frward-lking infrmatin and statements and accrdingly, undue reliance shuld nt be placed theren. Risks and uncertainties that may cause actual results t vary include but are nt limited t the speculative nature f mineral explratin and develpment, including the uncertainty f reserve and resurce estimates; peratinal and technical difficulties; the availability f suitable financing alternatives; fluctuatins in gld and ther cmmdity prices; changes t and cmpliance with applicable laws and regulatins, including envirnmental laws and btaining requisite permits; plitical, ecnmic and ther risks arising frm Defiance s Suth American activities; fluctuatins in freign exchange rates; as well as ther risks and uncertainties which are mre fully described in ur annual and quarterly Management s Discussin and Analysis and in ther filings made by us with Canadian securities regulatry authrities and available at Defiance disclaims any bligatin t update r revise any frward-lking infrmatin r statements except as may be required by law. NI DISCLOSURE: Peter J. Hawley, P. Ge., a Qualified Persn under the meaning f Canadian Natinal Instrument is respnsible fr the technical infrmatin in this presentatin. Cncept. Resurce. Driven.

3 Why Defiance Silver Grwing High Grade Silver Asset San Acaci Depsit lcated in Zacatecas, Mexic Mine histrically prduced apprx. 100 millin unces f silver Initial Resurce: 17 millin Silver unces at a Silver Grade f 182 g/t Defiance drill results including wide widths and grade, exceed resurce grade Excellent Resurce Expansin & Explratin Ptential Claims hst 65% f the 8.5 km lng Veta Grande Vein system which prduced 200 millin unces f silver San Acaci Depsit is pen t depth and alng strike Brand new target anmaly identified n 900m strike extensin 4.4km f knwn vein remains t be tested Sharehlders Insiders and institutinal funds accunt fr 55% MAG Silver is a 5% strategic sharehlder 3 Cncept. Resurce. Driven.

4 Lcated in Histrical Zacatecas Silver Belt 4 State f Zacatecas is the largest histrical prducer as well as the largest current prducer f silver in Mexic Ntable prjects: Fresnill wrld s largest primary silver prducer MAG Silver s Juanacipi silver depsit Gldcrp s Penasquit and Camin Rj gld mines Cncept. Resurce. Driven.

5 Excellent District Infrastructure 5 Paved rads, access t the state pwer grid and a skilled Mexican labur frce Recently acquired MAG Silver s Zacatecas cncessins, dubling ur land package t 1506ha Several perating mines nearby including Capstne Mining s Czamin Mine, prducing 1M Oz Ag, 16,732 tnnes Cu & 4,232 tnnes Zn in 2017 (2017 Capstne Mining Financials & MDA) Ntable cmpanies include: MAG Silver Pan American Silver Endeavur Silver Capstne Mining Cncept. Resurce. Driven.

6 Expanded Land Package 6 Acquired MAG Silver s Lagarts Prject cncessins MAG Silver is a key strategic sharehlder 800 hectares / 14 key cncessins; cntrl ver 65% f the Veta Grande Vein and increases land package t ver 1506 hectares Key Highlights Reginal database investment apprx. $10 millin Explratin digital data bank including; a drill hle database ttaling 90 hles, extensive gechemistry, gephysics, satellite imagery, and detailed drill lgs frm ver 135,000ha f grund stretching frm the Zacatecas Silver District t the Fresnill Silver District All cre drilled by MAG Silver in the district. Select grab samples alng these znes returned values ranging frm ne half unce up t 2.3 kilgrams silver (67 unces) & significant drilling highlights include 850 g/t (24.8 unces per tnne) silver ver 0.95 meters; 417 g/t (12.1 unces per tnne) silver ver 1.0 meter Cncept. Resurce. Driven.

7 High Grade Silver Depsit Inferred Mineral Resurce Estimate Vein Tnnes > Cut-ff (tnnes) Grade>Cut-ff Ag (g/t) Au (g/t) AgEq (g/t) Ag (zs) Cntained Metal Au (zs) AgEq (zs) VETA G 2,150, ,302,000 10,000 14,147,000 VETA C 739, ,642,000 1,900 3,770,000 TOTAL 2,889, ,944,000 11,900 17,917,000 The San Acaci Depsit has a Inferred Mineral Resurce Estimate available n r Using a silver equivalent ( AgEq )* cut-ff grade f 100 grams tnne ( g/t ). Using a gld price f $1270/ z Au and silver price f $19.60 the silver equivalent value wuld be silver cntent plus 65 times the gld cntent. (Nte: ttal cntained AgEq values may nt add exactly because f runding). Metallurgical recveries are nt taken int accunt. Rbust Initial Resurce with Excellent Ptential fr Expansin Inferred resurce is 17.9 millin silver equivalent g/t silver equivalent (NI cmpliant), cntained precius metals nly. Ptential AgEq resurce grwth as base metals are nt included in the resurce estimate. Hsted within ONLY 1.2km f the ttal 5.6km lng vein system, pen alng strike Depth f resurce is s far ONLY t 175m and is pen t depth Defiance 5,000m Drill Prgram results are nt incrprated in the resurce yet Cncept. Resurce. Driven.

8 Ptential fr Resurce Expansin 8 Cntained Resurce Over 100 Millin Silver Ounces f Histrical Prductin 3.5km Unexplred Vein 1.2km Blue Line Indicates Lwer Limit f San Acaci Depsit t a depth f 175m 0.9km Underexplred Shallw Explratin Cncept. Resurce. Driven.

9 High Grade/Wide Width Drill Results 9 Hle # Frm (m) T (m) Length (m)* Ag (g/t) Au (g/t) Cu % Pb % Zn % AgEq (g/t)** SAD SAD SAD SAD SAD SAD SAD SAD SAD SAD *True Widths are apprximately 70% t 80% f each intersectin **Reprted fr cmparisn nly, with n assumptins regarding metal recvery r smelter payments. Prices used are Au: $ /unce, Ag: $16.33/unce, Cu; $2.80/pund, Pb; $0.83/pund and Zn $0.95/pund in US$. 1 Gram = Try unce ***Grade nt calculated because f n data fr pen mine wrkings Cncept. Resurce. Driven.

10 Almaden Zne 10 SAD g/t AgEq High Grade Histric Stpes SAD g/t AgEq SAD g/t AgEq SAD g/t AgEq SAD g/t AgEq SAD g/t AgEq Cncept. Resurce. Driven.

11 Guadalupe Zne 11 Histric Stpes SAD g/t AgEq including g/t AgEq Cncept. Resurce. Driven.

12 The Next Step - 5.6km f Explratin Ptential 12 San Acaci Vein Mineralized Intersectins Range frm 5-12m Wide Cncept. Resurce. Driven.

13 Vein system is 5-12m in width, hw wide is that? That s ne large schl bus with capacity fr 72 peple 13 That s ¾ the size f a full grwn Gray Whale Cncept. Resurce. Driven.

14 Gelgical Mdel f San Acaci Vein 14 San Acaci is at an early develpment phase similar t Capstne s Czamin mine befre it became a majr mining peratin Defiance Phase I prgram cnfirms gelgical mdel Silver/Lead/Zinc znes abve Ptential fr Gld/Cpper znes at depth Cncept. Resurce. Driven.

15 Hw D We Grw San Acaci Resurce? km - San Acaci Depsit (Cntained in Shaded Blue area) Cmpleted Phase I 5,000m Drill Prgram Lwest risk, highest reward t add unces t initial resurce Drilled Cnfirmed depth/strike extensin f mineralized envelpe Cncept. Resurce. Driven.

16 Phase II Explratin IP Target & Drilling km Expanding n Prir Drilling Drilling Drilling intersected wide znes f anmalus silver mineralizatin, characteristic f being high-level vein intercepts Induced Plarizatin (IP) survey identified 200m lng, 300m wide at a depth f 200m belw surface Anmaly crrelates with knwn strike and dip f the vein Cncept. Resurce. Driven.

17 Explratin Mdel Prf f Cncept Cntrl surveyed pints placed n prperty Detailed air phtgraphy tied int survey pints All histrical features, shafts, trenches and past drill cllards tied int survey Past paper drill lgs, sectins, histrical maps and surface wrk cnverted int electrnic.xyz files 17 All data placed int a GIS system and vein intercepts wire framed tgether t create a 3-D mdel t set up a Phase 1 drill prgram f Prf f Cncept Cncept. Resurce. Driven.

18 Cntinued Depth Cntinuity with Wide Znatin Defiance cmmenced a Phase I 5,000m Drill Prgram t test utside the limits f the San Acaci Depsit at depth t grw the resurce based n Prf f Cncept mdel 1. Cmpleted 17 hles i. First 8 hles extended mineralizatin by 140m belw the base f the initial ii. resurce Cnsiderably higher silver equivalent grades than the initial resurce 2. Hles 9-11 extended mineralizatin 550m t the sutheast f the first 8 hles drilled, and again extending mineralizatin t a depth f 140m belw the inital resurce 3. Recent drill hle #12 intersected meters grading g/t AgEq, extending mineralizatin 85 meters belw initial resurce 4. Results frm the recent 5,000m drill prgram are nt included in initial resurce, allwing fr ptential t grw resurce 18 Cncept. Resurce. Driven.

19 IP Gephysical Survey Over Basalt Cvered Area meters strike Area Surveyed Cncept. Resurce. Driven.

20 IP Survey: Strng Respnse At Depth 1) Plan View: identified large NW-SE trending anmaly 20 2) Hanging Wall f vein adjacent t anmaly Hanging Wall 3) Anmaly cming up frm depth 4) High Chargeability Values 5) IP Cnfirms Structure f Hanging Wall and Large Anmaly Cncept. Resurce. Driven.

21 Target Anmaly Open at Depth 21 Plan View Crss Sectin View Cncept. Resurce. Driven.

22 AERI Gephysical Survey t Recnfirm IP Results 22 Plan View Transitin zne frm Ag, Pb t Ag, Cu Crss Sectin - 1,000 meters 400 meters Open At Depth Cncept. Resurce. Driven.

23 AERI Gephysical Survey Lng Sectin 23 Cncept. Resurce. Driven.

24 AERI Gephysical Survey Plan/Crss Sectin Views 24 Cncept. Resurce. Driven.

25 25 Dipping twards Defiance at depth Surce: January 16, 2018 Analyst & Investr Presentatin Cncept. Resurce. Driven.

26 26 Dipping twards Defiance at depth Surce: January 16, 2018 Analyst & Investr Presentatin Cncept. Resurce. Driven.

27 Nte size f re bdy crrespnds t size f gephysical anmaly Dipping twards Defiance at depth Surce: January 16, 2018 Analyst & Investr Presentatin Cncept. Resurce. Driven.

28 28 Surce: January 16, 2018 Analyst & Investr Presentatin Cncept. Resurce. Driven.

29 Cntinue with Phase III Explratin 3.5km Greenfield Explratin 29 Expand explratin beynd the 1.2 km San Acaci Depsit t the sutheast Drilling New Claims 4.4km sutheast extensin 0.9km partially explred 3.5km unexplred Cncept. Resurce. Driven.

30 San Acaci Ging Frward 30 Phase I 5,000 meter Drill Prgram Cmplete Phase II - Receive final IP survey data and cmmence drill testing new targets alng un-explred prtin f the vein Exercise ptin t purchase 100% in San Acaci Depsit and Claims $4.6M n r befre September 27, 2018 Final payment can be reduced by acceleratin clause Cncept. Resurce. Driven.

31 Management 31 Peter J. Hawley, BSc, BEng, PGe. Chairman, CEO With ver 36 years f gelgical and mining experience spanning grassrts explratin thrugh t develpment and prductin, including Teck, Nranda, Placer Dme and Barrick Gld, Mr. Hawley was als the funder, CEO & Chairman f Scrpi Mining Crpratin frm 1998 t December 2014 when Scrpi cmbined with U.S. Gld and Silver Inc t frm Americas Silver Crpratin, where he still remains a Directr. Peter is als the Chairman f Scrpi Gld Crpratin, a lw cst pen pit heap leach gld prducer in Nevada, USA. BOARD OF DIRECTORS Darrell A. Rader, BBA Funder f Defiance, raised ver $100 millin fr mineral explratin and develpment. CEO f Minaurum Gld Inc. Rn Swerby, CA Previusly Directr f Glentel Inc., recently sld fr $594M t Bell Paul Smith, MA Funding sharehlder and Finance Directr f Ocean Partners Hldings (U.K.) SENIOR GEOLOGICAL CONSULTANTS Bruce Winfield, M.Sc, P.Ge Previusly VP Explratin fr Eldrad Gld Rick Tschauder, M.Sc. Previusly Chief Gelgist fr Hecla Mining Michael Kinley, CPA, CFO 25 years experience in the public markets. Cncept. Resurce. Driven.

32 Symbl Investr Infrmatin 32 DEF:TSX.V DNCVF:OTC D4E:Frankfurt ($CDN) Shares Issued 98,351,820 Optins 3,585,000 Price Range: $ $0.41 Warrants 6,187,201 Pricing: $ Week Hi-Lw $ $0.06 Market Cap $45M Insider Ownership 55% Cncept. Resurce. Driven.

33 View Prject Vides n ur Website 33 Click the image r link here: Cncept. Resurce. Driven.

34 Defiance Silver Crp West Hastings Street Vancuver, BC, V6E 2K3 Canada Crprate Develpment, Sunny Pannu Cncept. Resurce. Driven.