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Blue Moon Zinc Investor Presentation October 2017


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100% ownership high-grade NI 43-101 polymetallic resource in California(1)
Indicated: 3.70 Mt @ 8.33% ZnEq
Inferred: 4.09 Mt @ 7.84 ZnEq

Excellent potential to increase resource along strike and at depth
The NI 43-101 Mineral Resource Estimate is available on slides 9 and 10.
Experienced management with knowledge of permitting
Former CEO of Golden Queen (Lutz Klingmann) and key consultants that successfully permitted the open-pit, heap-leach Soledad Mountain gold mine in California
Officers and directors own 21% of the outstanding stock

Low-risk execution and key value drivers in the near-term
Pathway to permitting; which would allow construction to begin 30-36 months from financing
PEA expected in Q1 2018
Drilling in 2018

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Blue Moon Zinc Investor Presentation October 2017

  1. 1. October 2017 TSXV: MOON US OTC: BMOOF
  2. 2. 2 Certain statements included in this presentation constitute forward- looking statements or forward-looking information under applicable securities legislation. Such forward looking statements or information are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking statements or information typically contain statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project”, or similar words suggesting future outcomes or statements. Forward-looking statements or information in this presentation include, but are not limited to, statements or information with respect to: business strategy and objectives; and development and exploration plans. Forward-looking statements or information are based on a number of factors and assumptions which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurances that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involved a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward- looking statements or information. These risks and uncertainties include, among other things: the ability of management to execute its business plan; general economic and business conditions; the risks of the mining industry and fluctuations in commodity prices; risks and uncertainties involving geology of mining deposits; the uncertainty of development and exploration activities; the uncertainty of estimates and projections relating to production, costs and expenses; the uncertainty of obtaining regulatory, including environmental approvals and uncertainties as to the availability and cost of financing. The foregoing list is not exhaustive of all possible risks and uncertainties. The forward-looking statements or information contained in this presentation are made as of the date hereof and the Company undertakes no obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise unless required by applicable securities laws. This presentation is for general background information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. John McClintock, P. Eng, is a qualified person as defined by NI 43-101, has reviewed the scientific and technical information that forms the basis for this presentation. Mr. McClintock is a Director of the Company. Cautionary Note to U.S. Readers Regarding Estimates of Indicated and Inferred Resources. his presentation uses the terms “measured” and “indicated” mineral resources and “inferred” mineral resources. The Company advises U.S. investors that while these terms are recognized and required by Canadian securities administrators, they are not recognized by U.S. securities administrators. The estimation of “measured” and “inferred” mineral resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. The estimation of “inferred” resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. It cannot be assumed that all or any part of a “measured”, “inferred” or “indicated” mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of “inferred mineral resources” may not form the basis of feasibility studies, pre-feasibility studies or other economic studies, except in prescribed cases, such as in a preliminary economic assessment under certain circumstances. U.S. securities administrators normally only permit issuers to report mineralization that does not constitute “reserves” as in-place tonnage and grade without reference to unit measures. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. U.S. investors are cautioned not to assume that any part or all of a “measured”, “indicated” or “inferred” mineral resource exists or is economically or legally mineable. Information concerning descriptions of mineralization and resources contained herein may not be comparable to information made public by U.S. companies subject to the reporting and disclosure requirements of U.S. securities administrators. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. The inclusion of inferred mineral resources are considered too speculative geologically to have the economic considerations applied to enable them to be categorized as mineral reserves. The mineral resources in this presentation were reported using CIM Standards. Forward Looking Statements
  3. 3. Investment Highlights 3 100% ownership high-grade NI 43-101 polymetallic resource in California(1)   Indicated: 3.70 Mt @ 8.33% ZnEq   Inferred: 4.09 Mt @ 7.84 ZnEq   Excellent potential to increase resource along strike and at depth 1.  The NI 43-101 Mineral Resource Estimate is available on slides 9 and 10. Experienced management with knowledge of permitting   Former CEO of Golden Queen (Lutz Klingmann) and key consultants that successfully permitted the open-pit, heap-leach Soledad Mountain gold mine in California   Officers and directors own 21% of the outstanding stock 1 Material resource 2 Knowhow 3 Value creation Low-risk execution and key value drivers in the near-term   Pathway to permitting; which would allow construction to begin 30-36 months from financing   PEA expected in Q1 2018   Drilling in 2018
  4. 4. Material History of the Project 1943-1945 Hecla performed small scale mining during World War II; 56,000 tons grading 12.3% zinc 1981-1984 Imperial Metals completed approximately 33,000 feet of diamond drilling 1984-1988 Boliden (Westmin), one of Europe’s largest zinc producers, completed: •  Approximately 57,000 feet of diamond drilling •  Calculated a mineral resource and commenced engineering, metallurgical, hydrological and environment baseline studies 1989 Boliden (Westmin) obtained a conditional use permit and approval of a reclamation plan from Mariposa County for certain underground development 1991 Barrick (Lac) completed approximately 20,000 feet of drilling 2007 Blue Moon was created as a result of two corporate spinouts of advanced stage zinc assets. Yukon Zinc followed by a 2007 spinout by Selwyn Resource’s zinc assets into Blue Moon 2008 Blue Moon issues a NI 43-101 resource estimate via previous and well-documented work programs 2017 Blue Moon issues updated NI 43-101 Mineral Resource Estimate 4
  5. 5. Favourable Location 5   Located in Mariposa County, Central California.   Active mines and exploration projects in the region   Part of California gold rush   Foothills area
  6. 6. Surface Conditions 6   The property is located in rolling grasslands   The land surface is currently used for seasonal ranching and is sparsely populated   Restricted land use under the Williamson Act (agriculture/ ranching). Permitted uses under the Act include mining and mineral processing.
  7. 7. Tenure & Local Infrastructure   525 acres of mineral rights on patented and unpatented claims.   Accessible by a three mile gravel road off a nearby paved highway.   A hydroelectric power generation facility one mile north; the main transmission line passes less than a miles away.   Elevations on the property range from 1,000 to 1,600 feet above sea level.   Sea ports, rail and trucking routes are all accessible.   Labour and contractors are readily available from population centres in the Central Valley. 7
  8. 8. Near Term Catalysts   Preliminary Economic Assessment (PEA)   Expected Q1 2018   PEA for the Blue Moon zinc project   Drilling in 2018   Continued metallurgical work and commence baseline study   Feasibility study 8
  9. 9. NI 43-101 Mineral Resource Estimate(*): Blue Moon Indicated Mineral Resources: 9 Cutoff Tons > Grade > Cutoff Contained Metal (Millions) ZnEq Cutoff Zn Cu Ag Au Pb ZnEq lbs lbs lbs ozs ozs % (tons) % % oz/t oz/t % % Zn Cu Pb Ag Au 1 6,210,000 3.60 0.40 0.88 0.02 0.17 5.88 447 50 21 5.5 0.1 2 5,220,000 4.12 0.46 1.01 0.03 0.19 6.72 430 48 19 5.3 0.1 3 4,220,000 4.73 0.53 1.16 0.03 0.22 7.74 399 45 18 4.9 0.1 4 3,700,000 5.09 0.57 1.25 0.03 0.23 8.33 377 42 17 4.6 0.1 5 3,160,000 5.50 0.62 1.35 0.04 0.25 8.99 348 39 16 4.3 0.1 6 2,620,000 6.00 0.66 1.43 0.04 0.27 9.71 314 35 14 3.8 0.1 7 2,130,000 6.53 0.71 1.46 0.04 0.29 10.45 278 30 12 3.1 0.1 8 1,660,000 7.11 0.77 1.49 0.04 0.29 11.28 236 25 10 2.5 0.1 The parameters used in the NI 43-101 were as follows: Metal Price (US) Recovery (%) ZnEq Factor Zinc $1.30/lb 95 24.70 Copper $3.00/lb 93 55.80 Lead $1.00/lb 95 19.00 Silver $17.00/oz 65 11.05 Gold $1,250.00/oz 70 875.00
  10. 10. Blue Moon Inferred Mineral Resources (*) A NI 43-101 report detailing the resource and summarizing metallurgical recoveries will be available on the company’s website ( and filed on SEDAR within 45 days of October 3, 2017. The equation to calculate ZnEq is as follows: ZnEq = (Zn%*24.70 + Cu % * 55.80 + Pb% * 19.00 + Ag(oz/t) * 11.05 + Au(oz/t) * 875.00) / 24.70. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of mineral resources will be converted to mineral reserves. 10 Cutoff Tons > Grade > Cutoff Contained Metal (Millions) ZnEq Cutoff Zn Cu Ag Au Pb ZnEq lbs lbs lbs ozs ozs % (tons) % % oz/t oz/t % % Zn Cu Pb Ag Au 1 12,140,000 2.40 0.23 0.67 0.02 0.17 4.00 582 56 41 8.1 0.2 2 7,840,000 3.25 0.27 0.95 0.03 0.24 5.40 509 42 37 7.5 0.2 3 5,160,000 4.20 0.32 1.25 0.03 0.32 6.93 434 33 32 6.4 0.2 4 4,090,000 4.82 0.35 1.41 0.04 0.35 7.84 395 28 29 5.8 0.2 5 3,330,000 5.39 0.38 1.53 0.04 0.38 8.61 359 25 25 5.1 0.1 6 2,710,000 5.91 0.40 1.64 0.04 0.41 9.32 320 22 22 4.4 0.1 7 2,060,000 6.55 0.43 1.80 0.04 0.44 10.21 270 18 18 3.7 0.1 8 1,430,000 7.32 0.46 2.12 0.05 0.49 11.41 209 13 14 3.0 0.1
  11. 11. Resource Expansive and Exploration   Expand Existing Resources   Deposit is open to South   Deposit is open to depth (new deep zone)   Extension of West, Main and East zones untested   Exploration targets along strike   Untested trend of coincident soil and IP anomalies within the favorable felsic volcanic rocks   Blue sky potential to find another "Blue Moon" style deposit on strike as polymetallic deposits are often found in pods or clusters 11
  12. 12. Exploration Upside   Extent of alteration and mineralization indicates a large mineralizing system may extend south of the resource   IP anomalies along strike   VMS deposits known to exist in clusters 12 Only a few drill holes in this area
  13. 13. Long Section of Current Resources and Expansion/Exploration Opportunities 13 3.2’ (1.2m) @29.6% Zn, 1% Pb, 3.48% Cu, 5.15 opt Ag, 0.128 opt Au Surface Historical Production during WWII Existing 43-101 resource; lenses average 4-5 meters wide Drilled to 2,000 feet or 600 meters needs follow up Mineralization open at depth
  14. 14. Permitting   Lutz Klingmann, who recently permitted and achieved commercial production (early 2016) at Golden Queen’s project in Southern California is a key technical advisor to Blue Moon.   Environmental team retained who recently assisted in the permitting of Golden Queen’s project in Southern California.   Project will be underground with lower environmental footprint.   Local County is key decision maker.   Project was a past producer and had a permit and reclamation plan approved in 1989 for certain underground development. 14
  15. 15. Metallurgy Metallurgy/Recovery   1998 Lakefield Research results show recovery up to 95% for Zinc and Lead, 93% for Copper, 65% for Silver and 70% for Gold.   Simple processing will produce premium concentrates.   Coarse grained sphalerite, chalcopyrite and galena means easy separation of the economic minerals from pyrite and therefore high recoveries.   Conventional flotation to result in multiple concentrates. 15
  16. 16. Advance to Construction 16 Baseline study Infill drilling to upgrade resource classification Feasibility study Conditional Use Permit /Reclamation Plan 12 month review by County 3-9 month hearing process From Financing 30-36 Months Construction Metallurgy Engineering Expansion and Exploration drilling
  17. 17. Comparable Development Stage Zinc Projects 17 * Compiled to the best of the Company’s knowledge from publicly available information as of August 22, 2017 97 62 59 34 18 Blue Moon Inzinc Fireweed Constantine Zinc One Indicated Pounds of Zinc per $1.00 of market capitalization
  18. 18. What is a Proven Zinc Pound Worth? 18 Trevali acquisition from Glencore (March 2017) 1.6 billion lbs Zn P&P USD $400 million * USD $0.25 per pound is derived from the acquired proven and probable zinc in place metals divided by the US $400 million purchase price Blue Moon’s resources would be upgraded on commencement of production 377 million lbs Zn indicated 395 million lbs Zn inferred $0.25 lb Zinc (*) USD $? $0.25 lb Zinc (*)
  19. 19. Comparable Producing Projects 19 * Compiled to the best of the Company’s knowledge from publicly available information Project Indicated resource at commencement of production Method Recoveries Geology Mill rate Galmoy Zinc Mine (Lundin Mining) 6.0 Mt @ 11.5% Zi (1997) Underground 83% Massive sulphides 1,700 tpd Santander Zinc Mine (Trevali) 6.3 Mt @3.6% Zi (2012) Underground 89% Polymetallic high temperature carbonate 2,000 tpd
  20. 20. California: Active in Resource Development   Golden Queen (Soledad Mountain Mine) •  Permitted in 2012 and Commercial Production in early 2016 •  Lutz Klingmann, former CEO of Golden Queen, is a key technical advisor to Blue Moon •  Produced approximately 19,000 ounces of gold and 193,000 ounces of silver in 2016   New Gold (Mesquite Mine) •  Production commenced in 2008 •  Former VP Operations who re-started Mesquite is key technical advisor of Blue Moon •  Produced approximately 110,000 ounces in 2016   California is the US’s second most prolific construction aggregate producing state.   California is the US’s fourth most prolific oil producing state. 20
  21. 21. Deposit Geological Attributes   High-grade polymetallic Zn-Cu-Pb-Au-Ag volcanogenic massive sulphide deposit   Classified as a Kuroko-type, polymetallic, volcanogenic, massive sulphide (VMS) deposit hosted in rhyolite.   The ore minerals are pyrite, sphalerite, chalcopyrite, galena, and minor tetrahedrite and bornite.   Associated sulphate minerals are barite, gypsum and anhydrite.   To date, four lenses of mineralization have been identified within two, possibly three, near vertical stacked horizons within a 50 - 180 foot (15 – 55 metres) stratigraphic interval. 21
  22. 22. Cross-Section of mineralized Zones Cross-section 7200N, looking to the north.   Main Zone is red, East Zone is green, and the West Zone is blue.   Grid is 200’ vertical and 500’ east-west.   Near vertical. 22
  23. 23. Other Zinc Assets Yava Property, Nunavut Canada   Brascan Resources estimated the Yava main zone contained 1.3 million tons at 4.96% zinc, 1.03% copper, 1.6% lead, 3.42 ounces per ton silver and 0.008 ounces per ton gold to a depth of 300 feet (Salaken March 1976) (*)   The Yava Lease contains four known base and precious metal occurrences   The north end of the greenstone belt hosts the Hackett River base metal occurrence and the south end of greenstone belt hosts the Musk base and precious metal, both held by Glencore * This estimate predates NI 43-101 and constitute a historical estimate under that policy. However, based on the definitions of Mineral Resources and Mineral Reserves used in NI 43-101, Brascan’s 1976 estimate is comparable to an Inferred Mineral Resource that is inferred from geological evidence, but not confirmed because data from outcrops, trenches, pits, and widely- spaced shallow drill holes, are limited. Dr. Hodder, the NI 43-101 author, was not able to identify assumptions and parameters used in the Brascan resource estimation and neither Dr. Hodder nor Blue Moon are treating this historical estimate as current Mineral Resources under NI 43-101. Historical estimates should not be relied upon. 23
  24. 24. Share Structure 24
  25. 25. Management Team/Board Patrick McGrath, Chief Executive Officer •  CPA-CGA with 20 years experience in financing and executive roles in junior public sector. •  Most recently CFO of Cub Energy, an international oil and gas producer with peak production of 2,500 boe/d. Was CFO of Anatolia Energy which raised $37 million and was acquired by Cub Energy in 2013. •  Co-founder and former VP Finance of Adriana Resources Inc. (now Sprott Resource Holdings Inc.) which raised $50 million in equity and debt during his tenure. Jack McClintock, Director •  P. Eng and President and CEO of Northisle Copper and Gold Inc. •  Former Exploration Manager with BHP Billiton. Successful track record of leading and participating in significant mineral discoveries including the Spence porphyry copper deposit in Chile. •  Recipient of the “Prospector of the Year” award in 1998. Douglas Urch, Director •  CPA-CMA and Executive VP Finance CFO of Bankers Petroleum Ltd. since 2008 with last reported production of 16,000 bopd. •  Bankers acquired in 2016 for $575 million. •  Former CFO of Rally Energy Corp; Rally acquired for $898 million in 2007. Varun Prasad, Chief Financial Officer •  CPA-CGA and has held senior roles with development stage mining companies listed on the TSX and NYSE market. •  Bachelor of Technology in Accounting from BCIT. 25
  26. 26. Key Consultants/Advisors Lutz Klingmann, P. Eng   CEO/Director of Golden Queen from 2001 too 2015. Permitted, financing and built the Soledad Mountain project in Southern California. Commercial production in early 2016.   Founded Minto Exploration Ltd. where he acquired, financed and worked to bring the project to production. Minto is one of the leading operating mines in Capstone Mining Corp’s production portfolio. California Environmental Engineering Firm/ Environmental Lawyer •  35 years experience in environmental law and permitting in resource sector. •  Assisted in the permitting of Golden Queen’s Southern California gold project. •  Instrumental to retain right permitting team. Mike Petrina, P. Eng •  Former COO of Probe Mines Limited where he managed permitting and preliminary economic assessment of the Borden Gold project. •  Former VP Operations of MAG Silver where he worked with MAG’s partner on the preliminary feasibility study for the Jaunicipio project. •  Former Manager of Mining at Pan American Silver where he managed the restart and optimization of the Hauron mine. Lawrence O’Connor, Q.P. •  Former VP Operations at Western Goldfields (now New Gold) where he restarted of the Mesquite Mine in California. •  Former G.M. of Eldorado Gold Corp’s La Colorada Mine where he completed the feasibility study and permitting required for expansion. 26
  27. 27. Company Contact Patrick McGrath, CEO Telephone: 1-832-499-6009 E-mail: