Highbank Resources - August 2013 Corporate Presentation
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  • 1. August 2013 August 2013
  • 2. Stock Snapshot Sector: Resources Property Type: Construction Aggregate Stock Market Symbol: TSXV: HBK; Frankfurt: V7O 52-Wk Trading Range: C$ 0.025 - C$ 0.13 Shares I&O: 73,693,999 (as at August 20, 2013) Market Capitalization: C$5.2 million (approx.) 2
  • 3. CONSTRUCTION AGGREGATE • Sand, gravel, crushed stone essential for road building and concrete for commercial operations • Aggregate is the world’s most mined material next to oil. 2012 global sales revenues were est. at $99 billion http://ow.ly/oaQzb, an increase of 41% from 2010 est. sales of $70 billion http://ow.ly/oaQzb • Annual Canadian consumption of aggregate 10 to 15 tons per person • BC Production was 38 million tonnes in 2010 valued at C$322million (2012 figures not available) • BC Production expected to considerably exceed previous years 3
  • 4. WESTERN CANADIAN AGGREGATE STOCKS Athabasca Minerals (TSXV:ABM) Price: 52-Wk Range: Market Cap: P/E: P/Rev: $1.37 $0.33-$2.40 $45.0mm 10.8 2.5 Polaris Minerals (TSXV:PLS) Price: 52-Wk Range Market Cap: P/E: P/Rev: $1.59 $0.52-$1.99 $39.1mm NA 1.4 4
  • 5. HIGHBANK’S AGGREGATE PROJECT: SWAMP POINT NORTH • Full Working Interest earned • $2.1 million of capitalized costs • Proximity to Prince Rupert – high demand for aggregate • NI 43-101 compliant • 72 million tonnes measured and indicated • First sales commitment received • Cooperative agreement in place with First Nations • Swamp Point Near-term production, pending final permits and financing 5
  • 6. LOCATION • East side of Portland Canal fjord on protected, year round ice free tidewater • Site access by helicopter, float equipped aircraft, or boat • 78 miles by sea north of Prince Rupert, closest West coast port to Asian markets by 33 hours • 38 miles south of the Port of Stewart & 35 miles North of Grassy Point also a proposed new LNG terminal 6
  • 7. RESOURCE – NI 43-101 compliant Classification Tonnes Measured 62,936,877 Indicated 8,775,166 Measured and Indicated Inferred 71,712,043 2,246,464 7
  • 9. TARGET MARKET • Primary Target Region Prince Rupert-Kitimat, B.C. and Alaska • Competitive Advantage Proximity to the Port of Prince Rupert’s construction projects facilitates port to port transportation – most economic mode of delivery • Highbank’s First Sales Contract To West Fraser Concrete. 100,000 tonnes. Signed March 2012. Location of Highbank Off Loading - Ridley Island 9
  • 10. MAJOR PRINCE RUPERT-KITIMAT CONSTRUCTION PROJECTS TOTAL $80 BILLION (VANCOUVER SUN - SEPT. 2012) • 10 year expansion plan of Prince Rupert Port Authority - $1.3 billion Federal Initiative • Spectra – BG, 850-km pipeline project $6-$8 billion • Canpotex potash terminal - $400 million • Watson Island Industrial Site Redevelopment - $90 million • Ridley Terminals coal expansion - $200 million and $90 million road and infrastructure projects • Global TV video clip on multi-billion dollar projects in Prince Rupert-Kitimat http://tinyurl.com/9q4syyx Canpotex Potash Export Terminal 10
  • 11. MAJOR PRINCE RUPERT-GRASSY POINT CONSTRUCTION PROJECTS • Exxon Mobile Imperial Oil export, permit filed for terminal at Grassy Point (38 miles from Swamp Point) • Region’s share of BC provincial govt’s $25 billion Pacific Gateway Transportation Strategy investment • Rio Tinto expansion of Alcan smelter C$3.3 billion • See Invest in Northwest http://investnorthwestbc.ca 11
  • 12. AGGREGATE PRODUCTION: SHORT-TERM RAMP-UP SCHEDULE Highbank, upon completion of a C$3 million financing and receipt of permits, will ramp up Swamp Point North production: Months 1-12 - Stage One development - stripping, construction of processing plant, conveying systems and development of product stockpiles Initial mining phase at rates of up to 235,000 tonnes per year 12
  • 13. AGGREGATE PRODUCTION: MEDIUM-TERM OBJECTIVES • Months 12-24 - Completion of Stage Two and ramp-up of production to 1,500,000 annual tonnes 1,500,000 tonnes of annual production potentially by Year 4 • Years 3-20 - Large-scale mining of the aggregate and commence export sales 13
  • 14. PROPOSED FINANCING & USE OF PROCEEDS Source of Funds Debt Financing C$3,000,000 Use of Funds Swamp Point North Start-up Costs C$2,550,000 General Working Capital C$ 450,000 Total C$3,000,000 14
  • 15. CASH FLOW OBJECTIVES SEPTEMBER 2013 – OCTOBER 2014 Inflows • C$ 3.0 million financing, Q4 2013 • C$ 2.7 million exercise of $0.10 and $0.15 warrants, Q3 /Q4 2013 • C$5.3 million in aggregate sales, less C$500,000 royalties, from sale of 235,000 tonnes Outflows* • C$2.55 million on start-up capital costs • C$4.9 million of operating expenses from production of 280,000 tonnes • C$300,000 for Highbank overhead expenses of (C$25,000/month) *excluding interest payments and taxes 15
  • 16. Medium/Long-Term OBJECTIVES Years 3 and 4 (through September 2016) • 540,000 tonnes per annum • $12.150million per year in revenue • $1.6million per year in operating profit* *prior to interest, Highbank overhead, taxes Full-Scale Production By 2017 (without major expansion) • 1,500,000 tonnes per annum • $33.75million per year in revenue • $4.425million per year in operating profit * * prior to interest, Highbank overhead, taxes 16
  • 17. MANAGEMENT • Victor N. Bryant, I.Eng; MAusIMM, President/CEO/Director 40+ years mining experience incl. with Major Mining Companies • Gary Musil, Secretary/CFO/Director 30 years financial and management consulting experience • Stan Spletzer, VP of Aggregate Operations 30 years contracting experience incl. for Canfor, Houston Forest Products, and BC Ministry of Forests • Luard J Manning, P.Eng (Mining) Director 50 years mining experience and as a consultant as President of L.J. Manning and Associates since 1967 • Jake Bottay, Director, past President of Highbank Mining and project financing experience as director or officer of numerous public companies • Jim Place, P. Geo; 25+ years with BC Government, engineering and consulting companies including Levelton, and quarry evaluations 17
  • 18. Contact Information #600 - 625 Howe Street, Vancouver, B.C. V6C 2T6 Gary Musil, CFO, Secretary/Director t. (604) 683-6648/f. (604) 683-1350 highbank@telus.net www.highbankresources.com This document contains certain forward-looking statements and information relating to Highbank that are based on the beliefs of management as well as assumptions made by and information currently available to management. When used in this document, the words "anticipate," "believe," "estimate," "expect," and "intend" and similar expressions, as they relate to Highbank or its management, are intended to identify forward-looking statements. Such statements reflect the current view of Highbank respecting future events such as the antcipated completion of certain Prince Rupert-Kitimat construction projects, the company’s ramp-up schedule, various stages of financing by the company, completion of stage two and any production estimates, the company’s use of proceeds calculation, projected cashflow forecasted revenue and production dates, revenue and profit, and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. 18