You are on page 1of 20

NOVEMBER 2017

VALUE THROUGH DISCOVERY


MARKETING PRESENTATION
Disclaimer

The content of this presentation has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 ("FSMA"). Reliance on this
promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested.
This presentation has been prepared by Erris Resources (Exploration) plc (to be renamed Erris Resources plc) (“Erris” or the “Company”) and does not constitute an offer or invitation for the sale or
purchase of any securities, nor does it purport to, set out, or refer to all or any of the information an investor might require or expect in making a decision as to whether or not to deal in shares in the
Company.
This presentation does not constitute and is not a prospectus or listing particulars (under either the Prospectus Regulations 2005 (as amended), FSMA or the Prospectus Rules of the Financial
Services Authority) nor does it comprise an AIM admission document for the rules of AIM, a market operated by the London Stock Exchange plc and should not be construed as such. No
representation or warranty or other assurance, express or implied, is made by or on behalf of the Company or any of its respective directors, officers, employees, advisers or any other persons as
to the fairness, accuracy or completeness of the information or estimates or opinions or other statements about the future prospects of the Company or any of its respective businesses contained
in or referred to in the presentation given in connection therewith and no responsibility, liability or duty of care whatsoever is accepted by any such person in relation to any such information,
projection, forecast, opinion, estimate or statement.
If you are in any doubt about the contents of this presentation or the action that you should take, you are recommended immediately to consult an independent financial adviser duly authorised
under FSMA who specialises in advising on the acquisition of shares and securities.
Neither the Company’s Nomad, Allenby Capital Limited (“Allenby”), nor the Company’s brokers, Shard Capital LLP (“Shard”) and Turner Pope Investments (TPI) Ltd (“TPI”) have approved the
presentation as a financial promotion for the purposes of section 21 of FSMA or otherwise. In any event, this presentation is exempt from the general restriction (in section 21 of FSMA) on the
communication of invitations or inducements to engage in investment activity on the grounds that it is made only to any or all of the following persons:
"investment professionals" as that term is defined in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ("FSMA Order"); and
"certified high net worth individuals" as that term is defined in article 48(2) of FSMA Order;
The requirements that must be met for an individual to qualify as an "investment professional" or a "certified high net worth individual" are contained in the FSMA Order. If you do not fall within the
abovementioned categories please return the document to the Company immediately. If you are in any doubt as to whether you fall into any of the relevant categories described above, you should
consult an independent financial adviser duly authorised under FSMA who specialises in advising on the acquisition of shares and securities for guidance.
This presentation may not be (i) taken or transmitted into the United States of America, (ii) distributed, directly or indirectly, in the United States of America or to any US person (within the meaning
of regulations made under the Securities Act 1933, as amended), (iii) taken or transmitted into or distributed in Canada, Australia or the Republic of South Africa or to any resident thereof, or (iv)
taken or transmitted into or distributed in Japan or to any resident thereof. Any failure to comply with these restrictions may constitute a violation of the securities laws or the laws of any such
jurisdiction. The distribution of this document in other jurisdictions may be restricted by law and the persons into whose possession this document comes should inform themselves about, and
observe, any such restrictions.
This presentation must not be copied, reproduced, published, distributed, disclosed or passed to any other person at any time without the prior written consent the Company.
By accepting a copy of the presentation you agree to be bound by the foregoing provisions.
Forward-looking Statements
This presentation may contain forward-looking statements. These statements relate to the future prospects, developments and business strategies of the Company and its subsidiaries (the
“Group”). Forward-looking statements are identified by the use of such terms as “believe”, “could”, “envisage”, “estimate”, “potential”, “intend”, “may”, “plan”, “will” or the negative of those,
variations or comparable expressions, including references to assumptions. The forward-looking statements contained in the presentation are based on current expectations and are subject to risks
and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying
assumptions prove incorrect, the Group’s actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place
any reliance on forward-looking statements. These forward-looking statements speak only as at the date of the presentation.
Competent Person
The Competent Person responsible for the technical information contained in this presentation is Mr James Hogg, Addison Mining Services, a Member of the Australian Institute of Geoscientists
and a Competent Person as defined under JORC 2012 rules.
All market capitalisation figures in this presentation date from 20 November 2017
The Competent Person has not been able to verify the results of historical data from soil sampling, rock sampling and drilling described in this report. Although the Authors have no reason to doubt
the results described, they should be considered as indications of the presence of mineralisation only and may not accurately reflect true metal concentrations and mineralized thicknesses.
Overview

A NEW EUROPEAN EXPLORATION COMPANY

Create shareholder value through early generative exploration and discovery


Accelerate upside through JV partnerships
Experienced team with proven track record of discovery and value creation

BACKED BY INDUSTRY

Cornerstone (19.9%) shareholder Osisko Gold Royalties (Mkt Cap C$2.4bn)


Joint venture in Sweden with Centerra Gold (Mkt Cap C$2.2bn)

ADVANCED TARGETS, PROVEN MINERALISATION

Sweden: 7 Gold Project Areas (18 licences), JV drilling started on two projects in 2017
Ireland: advanced zinc prospect with regional potential
Multiple drill programmes in both countries for 2018

1
Value Through Discovery
Discoveries result in return multiples even during commodity price downturns.
Exploration success is a key point of value creation in the mining cycle

Sirius Resources
Drill-ready projects
A$0.09 to A$1.78
Nickel Sulphide
Discovery
Solgold Sold for $1.4Bn
1.3p to 26.7p
Cascabel
Discovery
Mkt Cap $533m
Reservoir
Minerals
C$0.65 to C$9.40
Timok JV
Sold for $365m

Erris
Resources
$9m mkt cap post-IPO
Discovery
Driven

2
Team
A team with deep technical expertise as well as
extensive corporate and capital markets experience
BOARD
Non-Executive Director, Graham Brown
Non-Executive Chairman, Jeremy Martin
Co-Winner of the PDAC Thayer Lindsley Award in
Founding director of Erris Resources, Medgold,
2011, past councillor of the SEG and current British
Rathdowney Resources and Horizonte Minerals. Over 18
Geological Survey industry advisor and Natural
years of technical and capital markets expertise, currently
History Museum honorary research fellow. Past
CEO of Horizonte Minerals. BSc (Hons), MSc, ACSM,
Group Head of Geosciences for the Anglo American
MSEG
Group

CEO, Director, Merlin Marr-Johnson Non-Exec. Director, Andrew Partington

Over 22 years of technical and capital markets expertise Partner with Paradigm Capital Inc. specialising in
including: geologist for Rio Tinto, analyst at HSBC for 6 resources corporate advisory, M&A, and equity
years, CEO of exploration companies 8 years, fund manager raising. Previously mining analyst with Deutsche
for 5 years. BSc (Hons), MSc, DIC, FGS Bank and Newcrest Capital. B.Sc. (Hons) Engineering
Geology, MBA
CFO, Director, Cherif Rifaat Non-Exec. Director, Jeremy Taylor-Firth
UK Chartered Account with over 20 years of Venture Jeremy has 19 years of experience in investment
Capital, Corporate Finance, Operational Turnaround and management. He has worked at Singer & Friedlander
Investor Relations experience since his qualification with Investment Management Williams de Broe. Jeremy is
KPMG. Corporate and financial adviser to the Lithium currently an Investment Manager with Hanson Asset
mining company, Bacanora Minerals, since it listed on AIM Management, where he has worked for the last 5
in 2014. years.

SENIOR MANAGMENT
COO, Aiden Lavelle Technical Advisor, David Hall

Experienced exploration manager played a key role in Founding director of Erris Resources, Horizonte
discovery of the Pandora prospect in Djibouti. International Minerals, GoldQuest Mining Corp, Medgold, Thani-
work includes target generation, project management, Stratex Resources and Stratex International having
resource definition. BSc (Hons), MSc, MIGI, P.Geo previously worked with Minorco and Anglogold.
Currently CEO of Thani-Stratex and non-executive
Chairman of Horizonte Minerals. BA (Hons), MSc,
3 FSEG, MIGI, P.Geo
Track Record
Strong track record of discovery, resource
delineation, joint ventures and trade sale

Mkt Cap Mkt Cap


C$14M C$24M Sakatti magmatic Cu-Ni-PGE
Los Sulfatos discovery 2009
TSXV 2012 TSXV 2011 deposit, greenfields exploration
1.2Bt @ 1.5% Cu, 0.02% Mo
Europe Europe discovery in 2009, Finland
22,000m drilled, Chile

Mkt Cap C$77M, TSXV Sale of 30% & 1% NSR


C$23m from Agnico-Eagle of Öksüt for $24.5m to
Equity stake Centerra Gold
Dominican Republic Turkey

Mkt Cap £50M


AIM 2010
Major nickel laterite discovery
Brazil Major REE discovery,
Nolans Bore, Australia
ZAMIN FERROUS
Valentines iron ore
discovery Tulu Kapi gold Gold discoveries in Egypt
Uruguay discovery and Djibouti
Ethiopia

4
Operating Countries
Ireland and Sweden have low sovereign risk, favourable mining codes, active
mines, a skilled workforce, support industries and bulk commodity infrastructure

Corporate tax rate 25% Corporate tax rate 22%


Discretionary royalty rate Mineral production tax
typically on a sliding scale rate 0.2%
from 1.5% in early years to
#8 ranked in 2016 Fraser
3.5-3.75% for later years
Institute Mining report
#9 ranked in 2016 Fraser
(#2/17 in Europe)
Institute Mining report
(#3/17 in Europe) 17 operating mines in
Sweden, 5 in Skellefteå
Tara Mine (New Boliden), district
Europe’s Largest Zinc Mine

Mining Journal, World Risk Report 2017 - Ireland WRR Score 73, Sweden WRR Score 81

“Sweden was the only non-North America jurisdiction to register a AAA rating”

“Worthy of individual mentions for the welcoming nature of fiscal policy and overall
economic environment are Sweden (81) and Ireland (80)”

5
Abbeytown District
100% Erris Resources. Project Area 159km2. 4 prospects:
Abbeytown, Skreen, Lugawarry, Streamstown

Proven mineral
district

Historically
overlooked
Carboniferous
limestones

Shallow and
high grade

Targeting
>8Mt at ~12%
combined

6
Abbeytown

Mineralisation Partially mined for lead


(1951-1961) in open pit, then
from surface
underground

Accessible
Pillar samples averaged
underground 9.2% Zn, 2.8% Pb, 91g/t Ag
workings

Erris drilling 400m


Open at
south of mine
depth and Chevron
down plunge 5m @ 6.4% Zn, 3.4% Channel Sample*
Pb, 72g/t Ag 26m @ 20.8% Zn,
5.6% Pb &
223ppm Ag

Industrial Active quarry extending west


setting Road, power, rail, port all local

Untested copper potential at


New
depth
geological
Structurally controlled
model
replacement breccias

*Source: historic third party sampling data. Not true thickness; channel sub-parallel to mineralised structure

7
Abbeytown: Exploration Drilling and Truck in Quarry

Erris drill programme in Sweden

8 Erris geologists pillar sampling


Gold Portfolio
A portfolio built up by direct application in the heart of a mineral-
rich mining district. Multiple targets, good historic grades

Work funded
by JV partner
Centerra Gold

Existing mines
nearby

Targeting
>2moz
deposits

Drilling
underway

9
Brännberg (100% Erris Resources)

High 2018 work programme to confirm and extend


priority
mineralised zones: Geophysics and Drilling
target

High 21 shallow holes drilled, all core extant, 17


success assayed, of which 14 have >1g/t Au >1m
rate

Open at Results include 28m @ 2.0 g/t Au and


depth and 33m @ 1.8 g/t Au, both from top of
along strike bedrock in holes ~100m apart

Strong Gold associated with sheeted quartz-arsenopyrite


alteration +/- chalcopyrite veinlets and a separate magnetite-
system quartz-carbonate-epidote +/- sulphides
(pyrrhotite/pyrite) phase

10
Klippen

2 Year JV to spend $1m


1980s to earn 51%
discovery Large system limited follow up work
(bottom till
sampling)
1,800m
drilled
2017
Historic 124 Diamond & 371 percussion holes,
database max depth 83m

Gold results Drill: 20m @ 2.5 g/t Au inc. 5m @ 5.6 g/t Au


along 11km Bottom Till / Top of Bedrock: 13 g/t Au
strike Trench: 20m @ 2.3 g/t Au inc. 5m @ 6.4 g/t Au & 1% Cu

Gold in quartz veins and silicified volcanics


Volcanics &
Gold with sulphide replacement and quartz+/-
granodiorite
sulphides veins and veinlets in granodiorite
intrusions
Associated As-Cu-Ag-Bi-Sb anomalies

11
Klippen Drilling September 2017

Erris drill programme in Sweden

12 Erris geologists pillar sampling


Käringberget

1928
Previous Operator - Boliden, limited work completed discovery
(trenching)

Adak, Rudtjebacken, Brannmyran deposits (<10km to Mineral


NW) mined 1940-1976 for Cu, Ag, Au, Zn rich area

Silica-pyrite core, localised massive


Alteration
sulphide replacement and pyrite veins
system
(1.1 g/t Au & 1.1% Cu)

Drilling focused on alteration and grade 1,600m


anomalies in shallow-dipping volcanics drilled 2017

2 Year JV to spend $1m


to earn 51%

13
Industry Backing
Strong partners at both the Corporate and the Project level

▪ Holder of 1% royalty on Abbeytown, Ireland

▪ Holder of 1% royalty on DPAs in Sweden

▪ Stated intention to invest in IPO, to be 19.9% shareholder


Mkt Cap C$2.4bn

▪ Strategic Alliance over Swedish Joint Area of Interest (65,796km2)

▪ Erris Resources fully carried and earns a 10% management fee

▪ Centerra holds an option per project to earn 70% by spending $3m

Mkt Cap C$2.2bn

14
Work Programme
Multiple drill-programmes, >7,000m of diamond drilling scheduled for 2018
Establish regular news flow, batch reporting, rolling results

November 2017, Marketing

Corporate December 2017, Admission to AIM

January 2018, Regular corporate reporting

Abbeytown, Skreen, Lugawarry, Streamstown


Ireland
H1 2018 Starter 5,000m diamond drill programme
(funded by Erris
Resources) H2 2018 Phase 2 drilling programme results dependent

Sweden Klippen, Käringberget, Brännberg, project pipeline, generative exploration

H1 2018, Klippen 3,000m drilling,


(funded by Käringberget geophysics and 2,000m drilling
Centerra JV)
Klippen & Käringberget review, interpretation, plan

(funded by Erris Brännberg geophysics


Resources)
H2 2018 Brännberg 2,000m drilling

15
Peer Table
IPO valuation at bottom end of peer group range

Company Ticker Mkt Cap Project Name Location Notes


US$m

Mirasol JV & project generator specialist, Cu-Au-Ag


CVE:MRZ $64 Various Chile
Resources assets

Oman, Finland,
Savannah
LON:SAV $56 Cu-Zn, Li, TiO2 Mozambique, Multi-commodity company, Africa and Europe
Resources
Portugal

Mawson
CVE:MAW $31 Rompas-Rapajalot Finland Nordic gold exploration
Resources

Longford Maiden Resource 6.9Mt @ 6.4% Zn+Pb, drilling


ASX:LFR $36 Keel, Longford Ireland
Resources ongoing

Curipamba Cu-Zn-
Adventus Zinc CVE:ADZN $36 Ecuador High grade VMS deposit
Au

Maiden Resource 2.6Mt@ 8.8% Zn+Pb, drilling


Hannan Metals CVE:HAN $9 Kilbricken, Clare Ireland
ongoing

AVERAGE $39

Abbeytown,
Erris Brännberg, Shallow & high grade zinc, 100% Erris.
pvt $10 Ireland, Sweden
Resources Klippen, Swedish portfolio funded by Centerra Gold
Käringberget

*all mkt cap figures in presentation as at 20 November 2017

16
Investment Case
Key components to create value for shareholders

Multiple drill Partnered with


programmes in both Osisko Gold
countries for 2018 Royalties and
Centerra Gold

Portfolio of Zinc and Excellent


Gold assets with Jurisdictions: Ireland
discovery potential and Sweden

Discovery
Technically Driven Clean capital
Led Team with structure, no debt,
Proven Track no warrants, no
Record convertibles

Targeting new
discoveries in 2018

17
Contact Details

Merlin Marr-Johnson merlin@errisresources.com phone +44 (0)7803 712 280