Current Trends in Mining Finance and

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1 Current Trends in Mining Finance and Reaching The Next Generation Investor X P L O R C H A D W I L L I A M S, M B A, P. E N G. P R E S I D E N T & C E O O C T O B E R 1 8,

2 2 I S C L A I M E R The material in this presentation has been prepared by Red Cloud Klondike Strike Inc. ( Red Cloud or RCKS ) and is general background information current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Red Cloud believes that the information provided is reliable, however, it does not warrant that it is accurate and persons relying on the information do so at their own risk. Any opinions or analysis contained in this publication may be subject to change and Red Cloud does not undertake to advise the reader of such changes. Information in this presentation should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offering document and in particular, you should seek independent financial advice. All securities and financial products or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer in Canada. US investors are not permitted to participate in offerings posted on the platform.

3 3 A B O U T R E D C L O U D K S

4 4 A G O L D I L O C K S M A R K E T M O M E N T M i n i n g c a p i t a l m a r k e t s i n a h e a l t h y b a l a n c e. C o m p l e t e d M i n i n g E q u i t y F i n a n c i n g s t o A u g u s t 3 1, T S X / T S X - V o n l y :

5 R C K S C L I E N T C A S E S T U D Y : N O V O R E S O U R C E S ( T S X - V : N V O ) U N L O C K I N G A P O T E N T I A L W O R L D C L A S S G O L D D I S C O V E R Y I N A U S T R A L I A 5

6 A C C E L E R A T I O N B 2 B I NV E S T I N G OF 5

7 ' O V E R - I N S T I T U T I O N A L I Z A T I O N O F I N V E S T I N G S i g n i f i c a n t t h r e a t t o j u n i o r m i n i n g c o m p a n i e s - R e c o r d a m o u n t o f i n v e s t m e n t d o l l a r s a r e b e i n g f u n n e l l e d i n t o E T F s a r o u n d t h e g l o b e - I n v e s t o r s p u s h e d i n t o s a f e p r o p r i e t a r y p r o d u c t s - S m a l l c o m p a n i e s m u s t m e r g e t o g a i n c r i t i c a l m a s s o r g e t a c q u i r e d 6

8 T H E C A P I T A L A L T E R N A T I V E S 8

9 K E Y M E T R I C S F OR M I N I N G C A P I T A L R A I S I N G NPV, IRR, payback period, WACC/interest rate, tax rate, royalties, working interests CAPEX, OPEX Production, throughput, grade, tonnage, recoveries Mining methods, type of deposit, mine life Metal price assumptions Permitting risk, social risk, country/political risk, technical risk, regulation By-product credits Debt-to-capital, EBIT interest coverage, CF-to-debt, EBITDA interest coverage, Debt-to-EBITDA, Debt-to-equity, ROE, ROA, ROIC, free cash flow, working capital 9

10 T H E C A P I T A L A L T E R N A T I V E S 1

11 11 C H A N G I N G D E M O G R A P H I C S I N V E S T O R

12 T E C H N O L O G Y A D O P T I O N I S A C C E L E R A T I N G 12

13 T H E N EX T G E N E R A T I O N I N V E S T O R I S A L R E A D Y H E R E T h e y r e i n v e s t i n g i n s i g n i f i c a n t n u m b e r s a n d i n s i g n i f i c a n t a m o u n t s 13

14 A T T R A C T I N G N EX T G E N E R A T I O N O F I N V E S T O R S : D I G I T I Z A T I O N O F M I N I N G F I N A N C E 14

15 F I R S T M O V E R : L E S S O N S L E A R N E D Online financing forays in other jurisdictions note these potential causes for failure: Lack of Video Successful online raises tell a compelling story, via video Lack of Video Quality Poorly or cheaply produced videos, without music, do not perform as well Lack of Open Communication Online investors expect transparency, and to receive answers to their questions You should interact and respond publicly, online Lack of Planning Successful raises require a well-planned and well-executed marketing & communications plan Lack of Social Media Followers Statistics reveal that 11,000 followers are required for a $500K-$1M target raise, on average 15

16 R e s h a p i n g m i n i n g i n v e s t m e n t, a n d b u i l d i n g a c o m m u n i t y o f i n v e s t o r s.

17 R E D C L O U D E Q U I T Y F I N A N C I N G S

18 1 R E D C L O U D M & A A D V I S O R Y E X P E R I E N C E

19 O U R M O N T R E A L M I N I N G C O N F E R E N C E : A B I G S U C C E S S! 20

20 O N T A C T U S 21