Capital Resources Inc. Ecuador Day, PDAC March 3, 2019 TSXV-CGP OTC-CTNXF F-GWN WWW.CORNERSTONERESOURCES.COM
2 Cautionary Statements This presentation includes Forward-Looking Statements as well as historical information. These statements include Cornerstone Capital Resources continued advancement of its mineral exploration programs. When used in this presentation, the words potential, anticipate, forecast, believe, estimate, expect, may, project, plan, and similar expressions are intended to be among the statements that identify Forward- Looking Statements. Although Cornerstone Exploration Inc. believes that its expectations reflected in these Forward-Looking Statements are reasonable, such statements may involve unknown risks, uncertainties and other factors disclosed in our regulatory filings, viewed on the SEDAR website at www.sedar.com. For us, uncertainties arise from the behaviour of financial and metals markets and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward looking statements. Although Cornerstone believes the facts and information contained in the pages of this presentation to be as correct and current as possible, Cornerstone does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained in these pages. Nothing in this presentation constitutes either an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdiction. The technical information contained in this presentation has been reviewed and approved by Yvan Crepeau, P.Geo, MBA, Cornerstone s VP Exploration and President of Cornerstone subsidiaries in Ecuador and Chile, who is a qualified person in accordance with Canada s National Instrument 43-101.
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Current Share Capital Capital Structure as at February 15, 2019 Common Shares 636,329,720 Warrants 82,656,519 Stock Options 42,781,001 Fully Diluted Shares Outstanding 762,219,353 Cash balance as of February 15, 2019 of [~$3.5] million
5 Projects Cascabel (15%) ENAMI-CESA JV (84%) o Espejo o Playa Rica o Rio Magdalena Vetas Grandes (100%) Cana Brava (option to earn 100%) Farm in with Newcrest Bella Maria (100%) Bramaderos JV with Sunstone Metals
6 Cascabel (Cu-Au) JV between Cornerstone (15%) and SolGold (85%) subject to funding 100% through BFS Cornerstone also owns 9.22% of SolGold, or ~23% interest (direct & indirect) in Cascabel Gold enriched copper porphyry deposit at Alpala with mineral resource estimate
7 Alpala Drilling Highlights From depth (m) Interval (m) Cu (%) Au (g/t) Cu-Eq. (%) True Width (m) CSD-13-005 24 1,306 0.62 0.54 1.10 784 CSD-14-009 430 1,327 0.57 0.74 1.23 796 CSD-15-012 128 1,312 0.67 0.63 1.23 787 CSD-16-016 516 1,145 0.63 0.78 1.32 687 Multiple drill intersections of +1 km of +1% copper-equivalent at Cascabel
Cascabel MRE Alpala deposit Updated Mineral Resource Estimate¹ ( MRE ) Indicated: 2.05 Bt @ 0.6% Copper Equivalent (CuEq²) (8.4 Mt Cu, 19.4 Moz Au), including, 400 Mt high grade core @ 1.49% CuEq (3.6 Mt Cu, 11.9 Moz Au) MRE reported at a cut-off grade of 0.2% CuEq, reflecting potential for economic extraction by block caving Note ¹: Mr. Martin Pittuck, MSc, CEng., MIMMM, is responsible for the MRE and is an independent qualified person as such term is defined in NI 43-101 Note ²: The MRE is reported using a cut-off grade of 0.2% copper equivalent calculated using [copper grade (%)] + [gold grade (g/t) x 0.63]. 8
9 Cascabel MRE Grade Contained Metal Grade Category Resource Category Tonnage (Mt) Cu (%) Au (g/t) CuEq (%) Cu (Mt) Au (Moz) CuEq (Mt) Indicated 2,050 0.41 0.29 0.60 8.4 19.4 12.2 Total >0.2% CuEq Inferred 900 0.27 0.13 0.35 2.5 3.8 3.2 Mr. Martin Pittuck, MSc, Ceng, MIMMM, is responsible for this Mineral Resource estimate and is an "independent qualified person" as such term is defined in NI 43-101 The Mineral Resource is reported using a cut-off grade of 0.2% copper equivalent calculated using [copper grade (%)] + [gold grade (g/t) x 0.63] The Mineral Resource is considered to have reasonable potential for eventual economic extraction by underground mass mining such as block caving Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability The statement uses terminology, definitions and guidelines given in the CIM Standards on Mineral Resources and Mineral Reserves (May 2014) The MRE is reported on 100 percent basis Values given in the table have been rounded, apparent calculation errors resulting from this are not considered to be material The effective date for the Mineral Resource statement is 7th November 2018
10 Cascabel JV Deal Terms Cornerstone will fund its 15% after Bankable Feasibility Study (BFS), however, the carried interest on completion of BFS is repaid out of production which is many years away. Libor + 2% is an extremely cheap source of financing and well below the cost of capital for both Cornerstone and SolGold and the key benefit of the carried interest If the BFS is positive, Cornerstone will raise our nominal share, which is only $150 million for every $1 billion in capex
11 Cascabel JV Deal Terms No one has a right of first refusal or other preemptive right on Cornerstone the listed company Any buyer of Cornerstone would simply step into our shoes with the carried interest The value of the carried interest is significant and has enabled Cornerstone to avoid the massive dilution that would otherwise have been necessary to fund our share of the BFS
12 Our Strategy Cascabel is the type of asset that will end up under the control of a well capitalized group that has the financial resources to build a large mine Strategic positioning of Cornerstone's direct and indirect stake of ~23% is extremely valuable and larger than both BHP and Newcrest s stakes in Cascabel Cornerstone will continue to advance other assets through JV s which enables Cornerstone to capitalize on our first mover advantage in Ecuador, retain a significant economic stake and have our JV partners put up the capital to advance the assets
Joint Venture With Enami 13
14 Caña Brava (Au-Ag-Cu) Property hosts IS and HS epithermal gold-silver zones defined by extensive hydrothermal breccia and silica ribs developed on top of porphyry gold-copper style mineralization
15 Caña Brava (Au-Ag-Cu) Geological Map & DDH proposal Results strongly suggest that a porphyry system(s) lies at shallow depth below Soroche and Q. Caña Brava targets with peripheral higher level Intermediate Sulphidation veins at Soroche Norte Property never has been drilled Phase 1 drilling program of 3,200m is proposed 4 Mineralized Zones Defined Porphyry style at Q. Soroche and Q. Caña Brava Geology and proposed Phase 1 drilling program Epithermal style at Soroche Norte and Noreste
16 Bramaderos (Au-Cu) 4,949 ha concession granted on January 4, 2017 Underlain by a cluster of Au-Cu porphyries Gold (+ low grade copper) is present at surface as dissemination in porphyry and hydrothermal breccia bodies/pipes and in quartz veins. Extensive, 5 km by 1-2 km, gold and copper (+/- molybdenum) in-soil anomaly located in the central part of the property has been partially tested by trenching and historical diamond drilling Several anomalies still untested Property at drill-ready stage. Phase 1, 5000m drill program defined Drill permitting through the EIA process was commenced in May 2017 and is ongoing JV signed with Sunstone Metals (formerly Avalon Minerals) (ASX: STM), in June 2017 with first drilling anticipated before the end of Q2 2018, however the drill permit process has taken considerably longer than anticipated Sunstone can earn a 51% interest in Bramaderos by spending US$3.4 million over three years to complete a phase 1 drill program If this option is earned, Sunstone can go to 70% by funding a feasibility study and can go to 80% by financing 100% of the construction cost of a mine & mill PAN AMERICAN HIGHWAY
Bramaderos (Au-Cu) Multiple porphyry gold-copper and epithermal gold-silver targets West zone: Epithermal style mineralization Historical and recent trenching indicates strong results including 30m at 3.6g/t gold Indications of a possible porphyry at depth No previous drilling Bramaderos Main: Porphyry style mineralization. Historical diamond drilling has delivered 248m at 0.56g/t Au and 0.14% Cu from surface, including 30m at 0.8g/t Au and 0.2% Cu at bottom of hole Recent surface trenching has delivered strong gold and copper mineralization Limon: Porphyry style mineralization A 2km x 1km geological-geochemical-geophysical anomaly defined Trench LM-01 intersected 97.6m grading 0.71 g/t gold and 0.23% copper. No previous drilling Porotillo, Ghangue and Agua Salada: Porphyry and epithermal style mineralization Presence of strong magnetic bodies Edge of Porotillo target partially drill-tested Other targets never drill tested Surface exploration ongoing 17
Capital Resources Inc. TSXV: CGP www.cornerstoneresources.com 18