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Santa Rosa Gold Project
February 2016
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Certain statements included in this presentation are forward-looking statemen...
RED EAGLE MINING CORPORATION
3
• TSX-V: RD, OTCQX: RDEMF, SSE-V: RDCL
• 100% owned Santa Rosa Gold Project and 67% owned V...
KEY SENIOR MANAGEMENT
4
Ian Slater – Co-Founder and Chief Executive Officer
Former Managing Partner of Arthur Andersen and...
5
SANTA ROSA GOLD PROJECT
Santa Rosa
Red Eagle Mining
Medellin
Buritica
Continental Gold
Gramalote
Anglo/B2Gold
Legend
!. ...
DISTRICT CONSOLIDATION
Targets
6
Santa Rosa de Oso
El Hato
Target
Montanitas
Target
Canada Rica
Target
San Ramon
Extension...
EXPLORATION - NEAR MINE VALUE CREATION
7
• All drilling to date in
the San Ramon
Gold Mine
• Over 2,500 historic
adits and...
SAN RAMON RESERVES
8
• Well defined E/W
shear zone – open
ended down dip to
the east
• Parallel high grade
domains defined...
SAN RAMON RESERVES LONG SECTION
9
N
Cross Section
857700E
Apparent Plunge
2014 FEASIBILITY STUDY
Project Economics (post tax)
• Assuming US$1,100 per ounce gold:
– NPV (5%) US$52M
– IRR 32%
– Payb...
2014 FEASIBILITY STUDY
Overview
• Production of 1,000tpd & 70,000
oz/year production (built-in capacity
to double throughp...
COST STRUCTURE
12
Colombian Peso (COP) Devaluation
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
Ma...
POISED FOR PRODUCTION
13
Stracon GyM
Mine Construction and Operation
Leading Latin American contract mine builder and oper...
SAN RAMON UNDER CONSTRUCTION
14
Earthworks
Civil/
Concrete
Works
Steelwork
Erection
Test Ore
Production
Production
on Stop...
PROGRESS TO DATE
15
Production
Portal Progress
CIL Ring Beams near Completion
PROGRESS TO DATE
16
Production
Primary Crusher 2nd Lift
View From La Francia
RESPONSIBLE MINING
17
Project
Financing Production
INICIE Program
Computer Education
Primary and Secondary
Education for A...
COMPARABLE OPERATING MINES
18
Red Eagle
Mining¹
B2Gold Primero Eldorado Gold Lake Shore
Gold
PROJECT
Project Name San Ramo...
GLOBAL DEVELOPMENT PROJECTS
19
0%
10%
20%
30%
40%
50%
60%
70%
$0$50$100$150$200$250$300$350$400$450$500$550$600$650$700$75...
VETAS GOLD PROJECT
20
Production
• Gold mining activity dates back
to 17th century
• 45km NE from Bucaramanga
• Good Infra...
VETAS - ACCRETIVE ACQUISITION
21
Production
CB Gold - $67.7 million Sunk Cost Base
19.4
30.1
13.7
4.5
8 %
0
10
20
30
40
50...
SHAREHOLDERS AND CORPORATE STRUCTURE
Shareholders
Current Shares Outstanding 184m
Shares Fully Diluted 207m
Current Cash P...
INVESTMENT HIGHLIGHTS
23
Technically simple gold development project currently
under construction and in production in 201...
APPENDIX - NON-EXECUTIVE DIRECTORS
24
Tim Petterson
CEO of Black Eagle Mining and former Head of Global Mining Research at...
APPENDIX – VIEW OF PROJECT SITE
APPENDIX - PROCESSING FLOWSHEET
Head Office
920 – 1030 West Georgia Street
Vancouver, British Columbia
Canada, V6E 2Y3
www.redeaglemining.com
CONTACTS
Ian...
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Rd preso feb

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Rd preso feb

  1. 1. Santa Rosa Gold Project February 2016
  2. 2. CAUTION REGARDING FORWARD LOOKING STATEMENTS Certain statements included in this presentation are forward-looking statements within the meaning of Canadian securities laws, including the following statements regarding the Santa Rosa property: the ability of Red Eagle Mining Corporation (“Red Eagle” or the “Company”) to acquire additional concessions with potential resources; the potential to develop resources and then further develop reserves; the anticipated economic potential of the concessions; the anticipated economic and political developments in Colombia; the availability of capital and finance for the Company to execute its commitments and strategy going forward. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and perception of current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances. Many factors could cause the Company’s results, performance or achievements to differ materially from those expressed or implied by the forward looking statements, including: discrepancies between actual and estimated results from exploration and development and operating risks, dependence on early exploration stage concessions; political and foreign risks; uninsurable risks; competition; regulatory restrictions, including environmental regulatory restrictions and liability; currency fluctuations; defective title to mineral claims or property and dependence on key employees. Persons reviewing this presentation are cautioned not to place undue reliance on forward-looking statements due to inherent uncertainty therein. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The technical information contained in this presentation have been reviewed by Red Eagle Mining’s Vice President of Exploration, Jeff Toohey P. Eng., who is a Qualified Person as defined under NI 43-101 Throughout this presentation currency used is Canadian Dollars, unless noted otherwise.
  3. 3. RED EAGLE MINING CORPORATION 3 • TSX-V: RD, OTCQX: RDEMF, SSE-V: RDCL • 100% owned Santa Rosa Gold Project and 67% owned Vetas Gold Project • Four years from discovery hole to construction • Fully permitted and fully funded with initial production in 2016 • US$60M construction credit facility closed in April 2015 • US$20M equity financing closed in April and July 2015 • Solid shareholder base: Liberty Mining & Metals (18%), Stracon GyM (18%) & Orion Mine Finance (15%) Developing Colombia’s first modern gold mine Low capex, fully permitted, and fully funded deliverable project with low mining costs
  4. 4. KEY SENIOR MANAGEMENT 4 Ian Slater – Co-Founder and Chief Executive Officer Former Managing Partner of Arthur Andersen and Ernst & Young’s Mining Practices Chartered Accountant Robert Bell – Co-Founder and Chief Operating Officer Previously developed and GM of numerous mines, having led seven projects from feasibility through construction. Co-founder of Minproc Engineers’ Mining Division Mining Engineer Chui Wong – Chief Financial Officer Former GM Finance at Luna Gold. Previously held management positions at Methanex Corporation and VP SEC External and Financial Reporting at Bear Stearns Chartered Accountant Mark Humphery – Project Manager Extensive experience concluding bankable feasibility studies and constructing process plants. Has delivered several large scale gold projects in Africa and Asia Mechanical Engineer
  5. 5. 5 SANTA ROSA GOLD PROJECT Santa Rosa Red Eagle Mining Medellin Buritica Continental Gold Gramalote Anglo/B2Gold Legend !. Towns Roads City - Medellin Third Party !. Power Line
  6. 6. DISTRICT CONSOLIDATION Targets 6 Santa Rosa de Oso El Hato Target Montanitas Target Canada Rica Target San Ramon Extension San Ramon Deposit Legend 2011 (3% royalty - Liberty) 2012 (1.5% royalty - Grupo de Bullet) 2013 (no royalty) 2014 (2% royalty - AngloGold Ashanti)
  7. 7. EXPLORATION - NEAR MINE VALUE CREATION 7 • All drilling to date in the San Ramon Gold Mine • Over 2,500 historic adits and 100 surface mines mapped • San Ramon eastern extension acquired from AngloGold to be drilled • Guacamayas and Canada Rica targets to be drilled Canada Rica Target San Ramon Mine Guacamayas Target San Ramon Extension
  8. 8. SAN RAMON RESERVES 8 • Well defined E/W shear zone – open ended down dip to the east • Parallel high grade domains defined along the entire strike length and continuing at depth • Current reserves of 405,000 ounces at 5.2 g/t Au within 200m of surface • 2.0 g/t Au cut-off • 3m average mining width • Long mine life Cross Section 857700E
  9. 9. SAN RAMON RESERVES LONG SECTION 9 N Cross Section 857700E Apparent Plunge
  10. 10. 2014 FEASIBILITY STUDY Project Economics (post tax) • Assuming US$1,100 per ounce gold: – NPV (5%) US$52M – IRR 32% – Payback 1.7 years • Assuming US$1,300 per ounce gold: – NPV (5%) US$104M – IRR 53% – Payback 1.3 years 10 Project Sensitivity (post tax) 0 10 20 30 40 50 60 70 80 90 $- $50 $100 $150 $200 $250 Post-TaxIRR%(blueline) Post-TaxNPV(US$) Gold Price (US$/oz)
  11. 11. 2014 FEASIBILITY STUDY Overview • Production of 1,000tpd & 70,000 oz/year production (built-in capacity to double throughput) • Shrinkage stoping with delayed fill • SAG mill (P80 125 micron), floatation and CIL circuit with 96% recoveries • Grid power and local staffing • First permit under modern environmental legislation 11 Operating Costs 5 87 69 52 42 37 42 46 44 57 34 US$/tonne US$/ounce Mining Cost $37 $265 Processing Cost $25 $176 G&A $11 $75 Royalty $11 $80 Cash Costs $84/t $596/oz Sustaining Capital $74 Tax $93 AISC $763/oz
  12. 12. COST STRUCTURE 12 Colombian Peso (COP) Devaluation $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 Margins (US$) Margin: $337/oz Tax: $93/oz Sustaining Capital: $74/oz Cash Costs: $596/oz DFS ~ 70% 1,700 1,900 2,100 2,300 2,500 2,700 2,900 3,100 3,300 3,500 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16
  13. 13. POISED FOR PRODUCTION 13 Stracon GyM Mine Construction and Operation Leading Latin American contract mine builder and operator Clients include Tahoe, First Quantum, Hudbay and Buenaventura Lycopodium Process and Plant Design, Feasibility, Detailed Engineering, Construction and EPCM Premier global CIL plant design and construction contractor Clients include Newmont, Barrick, Endeavour Mining, Goldfields, AngloGold Ashanti Mine Development Associates Mine Design and Resource and Reserve Estimation Golder Associates Geotech, Tailings Management and Hydrology Universidad de Antioquia and the Fundacion Universitaria Catolica del Norte Environmental Baseline Study and Impact Assessment Comprehensive support in achieving production
  14. 14. SAN RAMON UNDER CONSTRUCTION 14 Earthworks Civil/ Concrete Works Steelwork Erection Test Ore Production Production on Stope Blocks Start Plant Commissioning Decline Excavation Decline Advanced to 200m SAG Mill Delivered Commercial Production HV Power Supply Initial Production First U/G Ventilation Raise
  15. 15. PROGRESS TO DATE 15 Production Portal Progress CIL Ring Beams near Completion
  16. 16. PROGRESS TO DATE 16 Production Primary Crusher 2nd Lift View From La Francia
  17. 17. RESPONSIBLE MINING 17 Project Financing Production INICIE Program Computer Education Primary and Secondary Education for Adults Rural Connectivity Children Sports Children Park Sports Facility
  18. 18. COMPARABLE OPERATING MINES 18 Red Eagle Mining¹ B2Gold Primero Eldorado Gold Lake Shore Gold PROJECT Project Name San Ramon El Limon Black Fox White Mountain Timmins West Location Colombia Nicaragua Canada China Canada RESERVES Proven & Probable Reserves (oz) 405,000 289,000 393,000 571,000 510,000 Grade (g/t) 5.20 5.03 4.00 3.13 4.28 OPERATING METRICS (2014) Throughput (tpd) 1,000 1,300 2,300 2,300 2,700 CIL Recoveries (%) 96% 92% 95% 87% 96% Head Grade (g/t) 6.21¹ 3.38 3.00 3.47 5.26 Annual Gold Production (oz) 68,000¹ 49,700 63,900 85,300 142,000 Annual Cash Costs US$455¹ US$844 US$837 US$617 US$703 ¹estimated 2017
  19. 19. GLOBAL DEVELOPMENT PROJECTS 19 0% 10% 20% 30% 40% 50% 60% 70% $0$50$100$150$200$250$300$350$400$450$500$550$600$650$700$750$800$850$900 AdjustedIRR@$1,300(%) Initial Capex (US$m) Source: Corporate documents, analyst research OGC: Oceana Gold Corp. National Bank Financial Markets FF: First Mining Finance Gold Projects Owned by Non-Cash Flowing Companies – Initial Capex vs. Adjusted IRR @ US$1,300 Romarco (OGC)Midas $970m Pretium Lydian Dalradian Gold Canyon (FF) Victoria Atacama Aureus TreasuryOrezone Goldrock Vista $1,046m Sabina Sandspring Belo Sun Almaden Kaminak Exeter Effectively Fully Funded: Asanko (Essase) Roxgold Guyana True Gold Golden Queen Torex Red Eagle
  20. 20. VETAS GOLD PROJECT 20 Production • Gold mining activity dates back to 17th century • 45km NE from Bucaramanga • Good Infrastructure - roads & grid power • Social License – Vetas town is a mining community • Over 71,000 meters of diamond drilling • 67% Owned Project Overview
  21. 21. VETAS - ACCRETIVE ACQUISITION 21 Production CB Gold - $67.7 million Sunk Cost Base 19.4 30.1 13.7 4.5 8 % 0 10 20 30 40 50 60 70 Sunk Costs Acquisition Cost Property Acquisitions Exploration G&A Professional Fees Blue Sky Potential Over 177 intersections with gold grades over 5 g/t, averaging 30 g/t Au over 1.03 metres, including: • 325 g/t (9.5 oz/t) Au over 2.09 metres; • 507 g/t (14.8 oz/t) Au over 0.74 metres; • 370 g/t (10.8 oz/t) Au over 0.82 metres; • 228 g/t (6.7 oz/t) Au over 1.13 metres; • 104 g/t (3.0 oz/t) Au over 2.45 metres; • 235 g/t (6.9 oz/t) Au over 1.03 metres Controlling interest in Vetas acquired for: • $0.5 million in cash and 8% RD share capital; • ~ 7.5% of Project Sunk Cost Base
  22. 22. SHAREHOLDERS AND CORPORATE STRUCTURE Shareholders Current Shares Outstanding 184m Shares Fully Diluted 207m Current Cash Position $13m Cash Fully Diluted $20m Undrawn Credit Facility (US$) $40m of $60m Market Capitalization $55m 22 Structure Liberty Metals and Mining 18% Stracon GyM 18% Orion Mine Finance 15% Ross Beaty 6% Directors 5%
  23. 23. INVESTMENT HIGHLIGHTS 23 Technically simple gold development project currently under construction and in production in 2016 US$596 per ounce cash costs, 53% IRR. Fully permitted and financed Additional deposits identified and plant designed with built-in capacity to double throughput without disruption Long term strategic mining focused investors: Liberty (18%), Stracon GyM (18%), and Orion (15%) First two years estimated 145,000 ounces of production and $100m EBITDA (US$1,100 Au) High Quality Deposit Low Cost & Risk Exploration & Production Upside Strong Shareholders Opportunity for Imminent Re-Rating
  24. 24. APPENDIX - NON-EXECUTIVE DIRECTORS 24 Tim Petterson CEO of Black Eagle Mining and former Head of Global Mining Research at HSBC and ABN AMRO – Mining Engineer Steve Dixon CEO of Stracon GyM, a leading provider of mining and construction services throughout Latin America – Civil Engineer Jeffrey Mason CFO of Wellgreen Platinum. Former Partner and CFO with Hunter Dickinson – Chartered Accountant Rob Pease Previously Founder and CEO of Terrane Metals and GM Exploration Canada and Global Projects for Placer Dome – Geologist Jay Sujir Securities and mining lawyer. Senior partner of Farris, Vaughan, Will & Murphy– Lawyer
  25. 25. APPENDIX – VIEW OF PROJECT SITE
  26. 26. APPENDIX - PROCESSING FLOWSHEET
  27. 27. Head Office 920 – 1030 West Georgia Street Vancouver, British Columbia Canada, V6E 2Y3 www.redeaglemining.com CONTACTS Ian Slater, Chief Executive Officer +1 604 638 2545 info@redeaglemining.com Bob Bell, Chief Operating Officer +1 778 372 2557 bell@redeaglemining.com Patrick Balit, Corporate Development +1 778 372 2558 +1 604 360 5722 m balit@redeaglemining.com

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