Excelsior is developing a low cost copper project within the copper porphyry belt of Arizona. Based on an initial production rate of 110 million pounds per year and a US$2.75/lb copper price, the Prefeasibility Study indicates a pre-tax NPV (7.5% discount rate) of US$1.24 billion, pre-tax IRR of 59.7% and a payback period of 1.8 years. Total initial capital expenditures (including contingency) are estimated at US$284.84 million with sustaining capital (including an acid plant) of US$602 million and an average life-of-mine direct operating cost of US$0.69/lb. These metrics are amongst the lowest per pound capital and operating costs for copper projects in North America.
Over 60,000 metres have been drilled to date on Gunnison, which has a Probable Mineral Reserves of 3.61 billion pounds (632 million tons at 0.29% copper) contained within the Measured and Indicated Mineral Resources of 3.91 billion pounds (683 M tons at 0.29%). There is also an additional Inferred Mineral Resource of 1.40 billion pounds (338 million tons at 0.21%). Please refer to the Projects page for further information on the mineral reserve and mineral resource estimates and results of the Prefeasibility Study.
2. 2
Disclaimers
Special Note Regarding Forward-Looking Information: This presentation contains "forward-looking information" concerning anticipated developments and events that may occur in the
future. Forward looking information contained in this presentation includes, but is not limited to, statements with respect to: (i) the estimation of mineral resources and mineral reserves; (ii) the
robust economics, potential returns associated with the Gunnison Project, (iii) the technical viability of the Gunnison Project; (iv) the market and future price of copper; (v) expected
infrastructure requirements; (vi) the results of the PFS including statements about future production, future operating and capital costs, the projected IRR, NPV, payback period, construction
timelines, permit timelines and production timelines for the Gunnison Project; (vii) the timeline for a feasibility study; (viii) future exploration potential; (ix) the permitting process and permitting
risk; and (x) the ability to mine the Gunnison Project using in-situ recovery mining techniques.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or
performance. Forward-looking information contained in this presentation is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and
mineral reserves, the realization of resource and reserve estimates, copper and other metal prices, the timing and amount of future exploration and development expenditures, the estimation
of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the
Gunnison Project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the permitting process,
the estimation of insurance coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company
considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and
development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not
commence at the Gunnison Project, risks relating to variations in mineral resources and reserves, grade or recovery rates resulting from current exploration and development activities, risks
relating to the ability to access infrastructure, risks relating to changes in copper and other commodity prices and the worldwide demand for and supply of copper and related products, risks
related to increased competition in the market for copper and related products and in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in
the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour
disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating
to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development
activities at the Gunnison Project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, environmental risks and the additional
risks identified in the “Risk Factors” section of the Company’s reports and filings with applicable Canadian securities regulators.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information,
there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking
information. The forward-looking information is made as of the date of this presentation. Except as required by applicable securities laws, the Company does not undertake any obligation to
publicly update or revise any forward-looking information.
Additional Information: Further information about the Gunnison Copper Project can be found in the technical report filed on SEDAR at www.sedar.com entitled: “Gunnison Copper Project,
NI 43-101 Technical Report, Prefeasibility Study” dated February 14, 2014.
Qualified Person: Excelsior’s exploration work on the Gunnison Property is supervised by Stephen Twyerould, Fellow of AUSIMM, President and CEO of Excelsior and a Qualified Person as
defined by National Instrument 43-101. Mr. Twyerould has reviewed and approved the technical information contained in this presentation.
3. 3
Project Highlights
• Industry leading Opex and Capex;
• Feasibility underway;
• First production scheduled for 2018;
Location and Infrastructure
• Located in sparsely populated Southeast
Arizona; site has all the necessary
infrastructure.
Seasoned Management
• Management team with extensive experience of
opening and operating major mining projects
around the world.
Executive Summary
On track to be one of North America’s lowest cost copper producers.
4. 4
Lower operating costs
Lower capital costs
Flexible mine plan
Environmentally friendly
Low water consumption
No groundwater contamination
Excellent remediation
No ore or waste rock moved
Minimal noise, dust, and emissions
Fewer permits required
Advantages compared to other mining
processes:
ISR is a low-cost, environmentally sound,
process of extracting metals from deposits.
ISR Advantages
5. 5
Remediation
Unlike conventional mining, there will be no permanent
scaring of the landscape. Post mining, the surface will bear
little sign of mining activity and will be available for general
use. Water quality will returned to the levels mandated by the
state and federal regulatory agencies.
Water Use
The ISR process uses less water than a conventional mine;
the majority of the water used is recycled. A water treatment
plant will operate on site.
Limited Environmental Issues
Many of the negative issues normally associated with mining
are not part of ISR. There is minimal noise, dust and
emissions; no waste dumps, tailings piles or explosives; no
potential for acid mine drainage.
Additional Buffers
Excelsior’s host rock is a natural acid consumer and limestone
deposits sit immediately to the east of the property. The
opportunity for a negative environmental event of any
significance is very remote.
Open pit mines fill with ground water
that becomes acidic and contaminated.
Only ISR mining offers the potential for
full remediation of the site.
Green Mining
6. 6
• 2.5 hour drive SE of Phoenix; 65 miles
SE of Tucson
• Mining district with direct access to
major road, rail, power and water
infrastructure
• 6,405 acres (2,592 ha)
I-10 Freeway
Gunnison’s
North Star
Deposit
Project
Boundary
High-voltage
Power Line to
Coal Power
Station ~10
miles East
Union Pacific
Railway
North Star Mineral Resources
North Star Mineral Reserves
Short Tons
(million)
Total
Copper %
Pounds of Cu
(million)
Measured 158 0.38 1,205
Indicated 525 0.26 2,704
Measured + Indicated 683 0.29 3,909
Inferred 338 0.21 1,397
The Mineral Resources (0.05% cut-off) are inclusive of Mineral
Reserves (0.05% cut-off). The oxide and transition portion of the
Mineral Reserve has the potential to be mined using in-situ recovery
methods with an estimated total copper recovery of 47%.
Short Tons
(million)
Total
Copper %
Pounds of Cu
(million)
Probable 632 0.29 3,614
Large Deposit – Excellent Infrastructure
7. 7
After tax in US$
$2.75 Cu price, 7.5% discount rate
• NPV: ~$820 million
• IRR: ~45%
• Payback period: 2.4 years
• Initial capital: $285 million
• Production rate: 110 million lb/year
• Average for the first 14 years, then
declining over a 20 year total mine life
• LOM production: 1,682 million pounds
• Direct operating cash costs (C1): $0.69/lb
• Indirect/other operating costs: $0.13/lb
• Sustaining capital: $599 million
• “All-in” costs of $1.37/lb
Results of the PFS are in USD using the “Acid Plant” option. For further details
see the February 14, 2014 technical report filed on SEDAR entitled: “Gunnison
Copper Project, NI 43-101 Technical Report, Prefeasibility Study”.
2014 Prefeasibility Study
M3 Engineering, Tucson
Mine Site Plan
Industry Leading Economics
8. 8
Industry Leading Economics
After tax in US$
$2.75 Cu price, 7.5% discount rate
• NPV: ~$820 million
• IRR: ~45%
• Payback period: 2.4 years
• Initial capital: $285 million
• Production rate: 110 million lb/year
• Average for the first 14 years, then
declining over a 20 year total mine life
• LOM production: 1,682 million pounds
• Direct operating cash costs (C1): $0.69/lb
• Indirect/other operating costs: $0.13/lb
• Sustaining capital: $599 million
• “All-in” costs of $1.37/lb
Results of the PFS are in USD using the “Acid Plant” option. For further details
see the February 14, 2014 technical report filed on SEDAR entitled: “Gunnison
Copper Project, NI 43-101 Technical Report, Prefeasibility Study”.
2014 Prefeasibility Study
M3 Engineering, Tucson
9. 9
Prefeasibility study demonstrates the oxide and transition portion of the mineral
reserve has the potential to be mined using in-situ recovery methods.
• Boreholes (injection and recovery wells) are drilled into the copper ore-body.
• Low pH solution is pumped into injection wells, moves through the rock in a controlled manner, and is
recovered (pumped from) surrounding recovery wells. Acid is consumed during the process.
• Recovered copper-rich solution is pumped to the solvent extraction and electrowinning facility to
produce pure copper cathode. Recycled solution after copper extraction (raffinate) is re-acidified, re-
injected, and the mining process continues.
• Reclamation involves rinsing
using the same wells.
Deposit is suitable for ISR
10. 10
Industry Leading Opex (Gross)
Source: Wood Mackenzie, RBC Capital Markets
Gunnison
US$0.69
2014E Copper Cash Cost Curve (C1)
11. 11
SHARES OUTSTANDING: 114.8 M
FULLY DILUTED: 135.4 M
RECENT PRICE $0.23
MARKET CAP $26.4 M
LARGEST HOLDERS
Greenstone Resources 28.3 %
Management 10.9 %
TSX.V MIN
OTCQX: EXMGF
FSE: 3XS
One-Year Share Performance
12. 12
Strategic Partnership - Greenstone
About Greenstone Resources
• U.K.-based private equity firm
• Specializing in resources
• Ex-Xstrata Executives
• Long-term investor
The Transaction (closed October 21, 2014)
• US$10M at C$0.34 (significant premium / no warrants)
• ~ 28% of Excelsior Common shares
• Two Nominees to the Board of Directors:
Lord Robin Renwick – Vice Chairman, Investment Banking, JP Morgan
Europe; former British Ambassador to South Africa and the United States.
Michael Haworth – Co-founder of Greenstone Resources, Ex-Managing
Director at JP Morgan and Head of Mining and Metals Corporate Finance in
London.
13. 13
Heritage Survey ► no historical or archeological sites
Biodiversity Survey ► no threatened/endangered species or habitat
Water use ► no active water use downstream or nearby the site
Water management ► outside State Active Management Area
Population ► no one living on/nearby the site, no farming/agriculture
Special interests ► no state or national forests
Gunnison’s remote location reduces risks and delays.
Excelsior’s ISR mining method mirrors the
reclamation process for groundwater,
making ISR the preferred mining method
among regulators.
Location = Low Permitting Risk
We are here.
14. 14
Social License / Outreach Program
Strategy:
• Engage the community early
• Listen carefully & understand their concerns
• Mitigate and manage community concerns
• File permits after successful community
engagement
Process:
TIER 1 Meetings – complete!
(County supervisors)
TIER 2 Meetings – complete!
(Local business leaders/State representatives)
TIER 3 Meetings – underway!
(Community outreach)
15. 15
Results of 2014 Economic Impact Study
• An average of 819 jobs created annually
state-wide
– 108 direct, on-site jobs; 711 in-direct or
“induced” jobs
• US$2.94 billion added to Arizona’s Gross
State Product
• US$294 million added to State Revenue
generated directly from the project
Economic Impact On Arizona
Note: All figures are based upon Excelsior’s 2014 Prefeasibility Study;
these numbers include building an acid plant and span the entire life of
the project. The Economic Impact Study was authored by the Seidman
Research Institute, W.P. Carey School of Business, Arizona State
University.
16. 16
North Star Oxide Dimensions: 8200 ft (2.5km) long x 2300 ft
(700m) wide x 650 ft (200m) thick
218,179 feet (66,500 metres) in 189 holes drilled to date
Contains key elements for ISR:
Deposit is below the water table
Rocks are highly fractured and permeable
Oxide minerals are readily leachable
Texas Canyon Qtz Monzonite
Escabrosa Limestone
Martin Formation
Mid/Upper Abrigo Formation
Lower Abrigo Formation
Bolsa Quartzite
Pioneer Shale
Oxide resource boundary
Sulphide resource boundary
Water Table
Geology of North Star
17. 17
The naturally fractured nature of Gunnison oxidized copper deposit makes it
amenable to ISR. Copper oxide minerals are mostly on the fracture surfaces.
Deposit is Highly Fractured
18. 18
17m @ 0.39% Cu 2.4m @ 0.04%
Cu
19.2m @ 0.21% Cu 3.7m @ 0.10% Cu
349m
387.6m 391.3m
368.4m366m
* Oxide interval from 790ft to 1360ft for 570ft at 0.42% total copper.
Fracturing Determines Grade
NSD 13 (240.8m to 414.5m: 173.7m @ 0.42% Cu)*
19. 19
Arizona has a positive track record for ISR mining.
Florence (Taseko, formally Curis Resources)
Phase 1 production set to commence
pending receipt of final permits
2.84 billion lbs of oxide Cu (429M tons at
0.33% measured & indicated)
Positive Prefeasibility Study
Pinto Valley/Miami Unit (BHP/Magma Copper)
Operations: Pinto Valley & Miami Unit
Miami unit: ISR and SX-EW
20+ years of production
1.47 billion lbs of Cu (214M tonnes at 0.31%)
San Manuel (BHP/Magma Copper)
Historical in-situ mine
14 years of production
Produced copper at less than US$0.40 per lb
3.25 billion lbs of Cu (284M tonnes at 0.52%)
Note: Production from, and mineralization on, these properties is not necessarily indicative of the production from, or
mineralization on, the Gunnison Project.
ISR in Arizona
20. 20
The Prefeasibility Study is based on 110M lbs of copper
per annum starting in Year 1 of production. Excelsior is
considering starting with Phase I Production of
approximately 20 to 30 million pounds of copper cathode.
This initial production would generate cash flow while
providing valuable operations experience prior to full
production.
Advantages:
• The well-field is entirely scalable; no efficiency loss;
• Lower capital requirement = reduced capital risk;
• Once production is optimized, the cost of further
capital should be reduced;
Staged Start-up
21. 21
2015 will be a very active year:
Work Program
• Feasibility-level Data Collection – underway!
• Metallurgical Drilling – completed!
• Resource Upgrade program – underway!
• Hydrology Drilling program – underway!
• Economic Impact Study update – completed!
• Commencement of Permitting process – file Q3!
• Community Outreach program – underway!
Corporate
• Marketing program - underway!
• Search for an offtake/strategic partner – underway!
Moving Forward…
22. 22
Over 56 years of
cumulative mining
experience.
Extensive company
building, capital
markets and financing
expertise.
Stephen Twyerould, Ph.D. - President & CEO, Director
Over 29 years of industry experience; formally with WMC Resources
(now BHP); previous General Manager Geology/Exploration of Gold
WMC Resources. Chief Geologist Windarra Nickel & Gold Company.
Roland Goodgame, Ph.D. - VP of Exploration, Director
27 years of experience with WMC and Anglo-American; extensive
knowledge of copper exploration and project evaluation.
Mark Morabito, J.D - Executive Chairman of the Board
Founder of several exploration companies; over 15 years’
experience in public markets with a strong focus on junior mining
with extensive experience in capital-raising and corporate
development.
Notable Members of the Board of Directors
Jim Kolbe - Eleven-term member of the US House of
Representatives for Arizona’s 8th Congressional District.
Steve Lynn - Former VP of UniSource Energy and Tucson Electric
Power Company.
Lord Robin Renwick – Vice Chairman, Investment Banking, JP
Morgan Europe; former British Ambassador to South Africa and the
United States.
Board of Directors
includes prominent
Arizona Citizens.
Excellent Management Team
Greenstone Nominee.
23. 23
Operations and
Sustainability
King & Bay West is a Canadian company headquartered in Vancouver,
with operations across North America, that specializes in identifying,
funding, developing and managing resource and technology-based
opportunities
King & Bay West
Mark J. Morabito, B.A., J.D.
Chairman & CEO
Business
Development
• Multi-disciplined professionals with extensive M&A expertise and a broad international network
• Total capital raises and commitments of C$600M with over C$475M raised since January 2012
Corporate
Communications
• Public affairs and investor relations, management of online exposure, internal communications,
media relations and marketing
Legal/ Admin/
Accounting
• Full-time securities lawyer with an office that is fully Sarbanes-Oxley compliant
• Accounting and administrative support with expertise in both the private and public sectors
Geology and
Technical Services
• Geologists with experience in various mining commodities and jurisdictions as well as expertise
in project planning and execution, data management, reporting and interpretation
KBW is proud to provide services
to the following companies:
• Program logistics and execution, permit approvals and environmental management
• Community, Aboriginal and Government relations
Backed by King & Bay West
24. 24
Head Office
Arizona Office
Concord Place
Suite 300
2999 North 44th Street
Phoenix, AZ
USA 85018
Vancouver Office
Suite 1240
1140 West Pender Street
Vancouver, BC
Canada V6E 4G1
Investor Relations
info@excelsiormining.com
Ph: 604-681-8030
TF: 866-683-8030
JJ Jennex
VP Corporate Affairs
jjennex@excelsiormining.com
• Established copper reserve
• Industry leading operating costs
• Remote location within mining-friendly Arizona
• Seasoned management team
• Production goal: 2018
Summary