Lakeland Resources Inc. (TSXv: LK) Corporate Presentation (June 2013)


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Corporate presentation for Lakeland Resources Inc. (TSXv: LK) as at June 2013. Lakeland Resources is a pure play uranium exploration companies focused on the Athabasca Basin in Saskatchewan and Alberta, Canada.

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Lakeland Resources Inc. (TSXv: LK) Corporate Presentation (June 2013)

  1. 1. JUNE 2013 / TSXv: LK / FSE: 6LL / / @LakelandRes!
  2. 2. TSXv:LK / FSE: 6LL / / @LakelandRes! Disclaimer:  This  Presenta,on  has  been  prepared  by  Lakeland  Resources  Inc.  (“Lakeland”)  using   its   best   efforts   to   realis,cally   and   factually   present   the   informa,on   contained.   However,   subjec,ve  opinion,  dependence  upon  factors  outside  Lakeland’s  control  and  outside  informa,on   sources   unavoidably   dictate   that   Lakeland   cannot   warrant   the   informa,on   contained   to   be   exhaus,ve,  complete  or  sufficient.  In  addi,on,  many  factors  can  affect  the  Presenta,on  which   could   significantly   alter   the   results   intended   by   Lakeland,   rendering   the   Presenta,on   unaKainable   or   substan,ally   altered.   Therefore,   interested   Users   should   conduct   their   own   assessment  and  consult  with  their  own  professional  advisors  prior  to  making  any  investment   decisions.         This   Presenta,on   does   not   cons,tute   a   prospectus   or   public   offering   for   financing,   and   no   guarantees  are  made  or  implied  with  regard  to  the  success  of  Lakeland’s  proposed  ventures.   Interested  investors  are  advised  to  seek  advice  from  their  investment  advisors.     Technical   informa,on   has   been   prepared   in   accordance   with   the   Canadian   regulatory   requirements  set  out  in  Na,onal  Instrument  43-­‐101  and  reviewed  on  behalf  of  the  Company  by   Neil  McCallum  P.Geo.,  a  Qualified  Person.   2!
  3. 3. TSXv:LK / FSE: 6LL / / @LakelandRes! 3! Lakeland  Resources  Inc.  is   a  newly  formed  pure  play   uranium  explora,on   company  focused  on  the   Athabasca  Basin  in   Saskatchewan,  Canada.   About  Lakeland  
  4. 4. TSXv:LK / FSE: 6LL / / @LakelandRes! Investment  Highlights   Strong  Fundamental  Outlook  for  Uranium  Prices   •  Global  demand  for  electricity  is  set  to  grow  70%+  by  2030   •  434  reactors  in  opera,on;  544  new  reactors  under  construc,on,  planned  or  proposed   •  Supply/demand  imbalance  unavoidable  post  2013-­‐14     Experienced  Advisors  and  Team   •  Extensive  experience  in  uranium  explora,on  &  resource  finance   Favourable  Share  Structure   •  Excellent  leverage  to  explora,on  success  with  only  22  M  shares  outstanding   Secured  Significant  PorBolio  of  Uranium  ExploraCon  ProperCes   •  South  Pine/Riou  Lake/Otherside  Proper,es  ini,al  priority  focus  for  drilling   •  Total  poreolio  of  nine  projects  encompassing  100,000+  hectares   •  All  projects  benefit  from  substan,al  historic  explora,on  data  and  expenditures   •  All  projects  have  the  geologic  characteris,cs  amenable  to  a  major  uranium  discovery     4!
  5. 5. TSXv:LK / FSE: 6LL / / @LakelandRes! 5! Geological  Consultants   Dahrouge  Geological  ConsulCng  Ltd.   •  Ac,ve  in  the  Athabasca  Basin  since  early  2000   •  Uranium  explora,on  team  led  by  Jody  Dahrouge,  B.Sc.   P.Geol.  and  Neil  McCallum,  B.Sc.  P.Geol.   •  Experience  with  uranium  discoveries  at  Waterbury  Lake   and  PaKerson  Lake  South  amongst  other  proper,es   •  Excellent  network  of  prospectors,  geophysical  consultants   and  explora,on  support  contractors                
  6. 6. TSXv:LK / FSE: 6LL / / @LakelandRes! 6! Current  Advisory  Board  Members   Mr.  Richard  Kusmirski,  M.Sc.,  P.Geo   Experienced  Uranium  Geoscien2st   Mr.  Richard  Kusmirski  has  over  40  years  of  explora,on  experience  in  North  America  and  overseas,  and  has   ac,vely  par,cipated  in  the  discovery  of  a  number  of  uranium,  gold  and  base  metal  deposits.  For  several   years,  in  his  capacity  as  Explora,on  Manager,  he  directed  Cameco  Corpora,on’s  (TSX:  CCO)  uranium   explora,on  projects  in  the  Athabasca  Basin.  In  1999,  Rick  joined  JNR  Resources  Inc.  becoming  Vice   President  of  Explora,on  in  2000.  Subsequently,  he  directed  the  explora,on  program  that  led  to  the   discovery  of  the  Maverick  Zone  on  the  Moore  Lake  uranium  joint  venture  in  the  Athabasca  Basin  with   partner  KennecoK  Canada.  Rick  became  JNR's  President  and  CEO  in  January  of  2001.  In  February  of  2013,   Denison  Mines  Corp.  (TSX:  DML)  successfully  acquired  all  of  the  outstanding  shares  of  JNR  by  way  of  a   friendly  all-­‐share  take-­‐over  bid.   Mr.  Thomas  Drolet  B.Eng.,  M.Sc.,  DIC   Nuclear  Energy  and  Uranium  Industry  Specialist   Mr.  Thomas  Drolet  is  a  uranium  and  nuclear  industry  specialist  and  principal  of  energy  consultancy  Drolet  &   Associates  Energy  Services  Inc.  Mr.  Drolet  has  had  a  40+  year  career  in  the  energy  sector,  where  he  spent  26   years  with  Ontario  Hydro  in  various  engineering,  research  and  opera,ons  func,ons.  He  formed  and  headed   Canada's  Research  and  Development  program  into  Fusion  (CFFTP)  in  1982  and  then  moved  into   Interna,onal  Commercial  work  with  Ontario  Hydro  Interna,onal,  where  he  was  named  President  and  CEO  in   1993.  Mr.  Drolet  was  then  appointed  Managing  Director  of  American  Electric  Power  Canada,  and  President   of  Canadian  Energy  Opportuni,es,  Inc.  where  he  was  involved  in  mergers,  acquisi,ons  and  other  consul,ng   ac,vi,es  in  the  Canadian  and  US  power  sectors.  Mr.  Drolet  earned  a  Bachelor's  Degree  in  chemical   engineering  from  Royal  Military  College  of  Canada,  a  Master's  of  Science  degree  in  nuclear  technology/ chemical  engineering  and  a  DIC  from  Imperial  College,  University  of  London,  England.  He  is  a  frequent  guest   and  keynote  speaker  on  nuclear  energy  at  global  conferences.    
  7. 7. TSXv:LK / FSE: 6LL / / @LakelandRes! 7! Corporate  Structure   Shares  Outstanding:    22.1  million   Op,ons  ($0.11):      1.4  million   Fully  Diluted:      23.5  million   Major  Shareholders   Management,  founders  and  insiders:  22%   Zimtu  Capital  Corp.:  20%   Cash:  ~$300k     Current  Management  Team  &  Board:   Jonathan  Armes  -­‐  President,  CEO  &  Director   Alex  Falconer,  C.A.  -­‐  CFO  &  Director   Garry  Clark,  P.Geo  -­‐  Director   Ryan  Fletcher,  B.A.  -­‐  Director   David  Hodge  -­‐  Director   (as  at  June  2013)  
  8. 8. TSXv:LK / FSE: 6LL / / @LakelandRes! Why  Uranium?   Electricity  demand  to  grow  76%   by  2030.  The  number  of  nuclear   reactors  is  rising  to  meet  it        434  reactors  are  in  opera,on   world-­‐wide        544  new  reactors   (318  proposed,  159  planned,67   under  construc,on)        China,  Russia,  India  and  USA   are  primary  drivers   8!
  9. 9. TSXv:LK / FSE: 6LL / / @LakelandRes! World  Nuclear  Capacity   9! There  are  currently  67  reactors  under  construc,on  world-­‐wide  –  newbuild  levels  not  seen  since  the   1970s  –  of  which  13  have  had  first  concrete  poured  since  Fukushima   Source:  World  Nuclear  Associa,on  
  10. 10. TSXv:LK / FSE: 6LL / / @LakelandRes! 10! Uranium:  Supply/Demand  Dynamics  Unbalanced   A  supply  shortage  is  unavoidable  post  2013-­‐14:     •   Primary  supply  will  have  to  increase  by  ~  90Mlb  U3O8/year  to  meet  demand  requirements  by   2020  (in  8  years)     •   In  previous  8-­‐year  period  (2003  –  2011),  produc,on  increased  by  48Mlb,  but  Kazakhstan   accounted  for  42Mlb  (going  forward  there  is  not  another  Kazatomprom  to  contribute  such  growth)     Source:  Paladin  Energy  Ltd.  
  11. 11. TSXv:LK / FSE: 6LL / / @LakelandRes! 11! Uranium:  Pricing   One  of  the  Best  Commodity  Price  Outlooks   (1)  Consensus  Forecast:  Argonaut  July  2012     Key  Commodity  Price  Performance  (3  Year  Horizon)  
  12. 12. TSXv:LK / FSE: 6LL / / @LakelandRes! 12! Catalysts  2013   Three  Key  Catalysts:    Increased  Chinese  buying  with   approvals  now  resumed  (29  reactors   currently  under  construc,on,  2   restarts)    Restart  of  Japanese  reactors      End  of  Russian  HEU  Agreement   (end-­‐2013)  
  13. 13. TSXv:LK / FSE: 6LL / / @LakelandRes! 13! Athabasca  Basin   The  World’s  Leading  Uranium  Province.  Why?       1. Grades:  in  excess  of  20%  uranium   (compared  to  the  global  average  of  0.14%)   2. Infrastructure     3. Poli,cally  stable  environment  for  investment       Post  Fukushima:  Rio  Tinto  Spent  $654M  to  get   into  the  Basin  
  14. 14. TSXv:LK / FSE: 6LL / / @LakelandRes! 14! Recent  M&A  Ac,vity  in  the  Basin   A  Flurry,  Post-­‐Fukushima:       JAN  2012  Rio  Tinto  Acquires  Hathor     APR  2012  Fission  Acquires  Pitchstone   NOV  2012  Denison  Acquires  JNR    Nexgen  Acquires  Mega  Uranium’s  Basin  Assets   APR  2013  Denison  Acquires  Fission  Assets      (Waterbury,  etc.)  
  15. 15. TSXv:LK / FSE: 6LL / / @LakelandRes! 15! Athabasca  Basin  Uranium   Our  Explora,on  Strategy   LocaCon     Saskatchewan  is  a  favorable  mining  jurisdic,on     Projects  at  or  near  shallow  basin  margins  (0  to  400-­‐m  depth)   Geology     Athabasca  Basin  unconformity  deposits  are  the  highest   grade  deposits  worldwide     Deposits  associated  with  altera,on,  conductors,  and   radioac,vity;  ozen  in  structurally  complex  environments   ExploraCon     Shallow  targets  with  low(er)  drilling  and  explora,on  costs     Projects  are  selected  based  on  a  review  of  historic  explora,on     Geophysics   •  Electromagne,cs,  IP/Resis,vity,  Magne,cs,  Radiometrics,  and   Gravity     Geochemistry   •  Arsenic,  Boron,  Nickel,  Radon  etc.   •  Uranium     Altera,on  Mineralogy  
  16. 16. TSXv:LK / FSE: 6LL / / @LakelandRes! 16! Athabasca  Basin  Uranium   PROJECT  PORTFOLIO     Northern  Athabasca  Basin   •  South  Pine   •  Riou  Lake   •  Otherside   •  Circle  Lake     Northeast  Athabasca  Basin   •  Perch   •  Hawkrock   •  Small  Lake     Eastern  Athabasca  Basin   •  Jasper   •  Richmond   All  projects  100%-­‐owned  
  17. 17. TSXv:LK / FSE: 6LL / / @LakelandRes! 17! Ownership:  100%  Lakeland     Total  Property  Package  Size:  45,285  hectares     • Property  package  spans  ~80km  between  Fond  du  Lac  and   Stony  Rapids  –  excellent  infrastructure,  easy  to  explore     • Benefits  from  $3M+  of  archived  explora,on  (airborne   gravity/MEGATEM,  etc.)  completed  by  UEX  Corp.  since   2005  -­‐  iden2fied  targets  that  remain  to  be  tested     • Mul,ple  targets  (South  Pine,  Gibbon’s  Creek,  Otherside)   iden,fied  benefit  from  shallow  depths  to  unconformity  -­‐   lower  costs  and  higher  success  rates  for  explora2on,   beIer  economics  for  discoveries       Focus:  North  Basin  Proper,es   South  Pine,  Riou  Lake  and  Otherside  
  18. 18. TSXv:LK / FSE: 6LL / / @LakelandRes! 18! Poten,al  of  Area   Demonstrated  by:                           Uracan/UEX  Corp.  Black  Lake  Project:     • UEX  Corp.  recently  (Jan  2013)  op,oned  60%   to  Uracan  for  C$10.0  million  in  explora,on   over  10  years   • DDH  BL-­‐018:  0.69%  U3O8  over  4.4  metres,   including  1.96%  U3O8  over  0.50  m     UEX  Corp.  Riou  Lake  Project:     • Radioac,ve  boulders  in  glacial  ,ll  on  the   property  with  up  to  11.3%  uranium;  source   s,ll  to  be  iden,fied              
  19. 19. TSXv:LK / FSE: 6LL / / @LakelandRes! 19! Targets                      
  20. 20. TSXv:LK / FSE: 6LL / / @LakelandRes! 20! South  Pine  Target   •   17  historic  drill  holes    -­‐DDH  PC81-­‐2:  0.15%  U3O8  over  0.13  m    -­‐Several  anomalous  intersects   •   2.5  kilometre  long  conductor   •   Shallow:  70  metres  to  unconformity   •   Easy  access  along  winter  highway   •   Not  followed  up  since  discovery  in  1981                    
  21. 21. TSXv:LK / FSE: 6LL / / @LakelandRes! 21! Gibbon’s  Creek  Target   • At  least  23  historic  drill  holes  in  region:      -­‐DDH  GC-­‐15:  0.18%  U3O8  over  0.13  m      -­‐Several  anomalous  intersects      -­‐Very  strong  altera,on  in  sandstone  and  basement   • Easy  access  near  winter  highway   • Shallow:  100  metres  to  unconformity   • Nearby  conductor  is  untested                         Otherside  Target   • Priority  Airborne  EM  (MegaTEM)  anomaly   • Shallow:  es,mated  150  metres  to  unconformity                    
  22. 22. TSXv:LK / FSE: 6LL / / @LakelandRes! 22! Perch  Lake  Property   • Straddles  the  northeastern  edge  of   the  Athabasca  Basin   • 4  kilometre  long  basement   conduc,ve  trend  iden,fied  by  a   2007  VTEM  survey     • Unexplained  uranium  radiometric   anomaly,  iden,fied  by  a  2010   regional  Geological  Survey  of  Canada   survey,  lies  directly  on  the  northern   por,on  of  the  conduc,ve  trend  and   is  priority  for  immediate  follow-­‐up   • Prospec,ng,  mapping,  and  sampling   proposed      
  23. 23. TSXv:LK / FSE: 6LL / / @LakelandRes! 23! 2013  Timeline     Airborne  geophysics  (Re-­‐interpreta,ons)       All  proper,es       July  2013             Fieldwork  (Radon  surveys,  prospec,ng,  sampling)       South  Pine/Riou  Lake/Otherside/Perch       Q3  2013         Ground  geophysics  (IP  resis,vity)       South  Pine         Q4  2013         Explora,on  drilling       South  Pine/Riou  Lake/Otherside         Q1  2014       The  company  will  also  con2nue  to  review  and  generate  opportuni2es  for  acquisi2on/staking  and  poten2al  subsequent  joint  venture.      
  24. 24. TSXv:LK / FSE: 6LL / / @LakelandRes! 24! Key  Market  Comparables   Athabasca  Basin  Uranium  Explorers   Company      Shares  Outstanding  Recent  Trading  Price  Market  Cap.     Fission  Uranium  Corp.  (TSXv:  FCU)  149.5  M    $0.71    $106  M     Alpha  Minerals  Inc.  (TSXv:  AMW)  22.6  M    $4.05    $91  M     NexGen  Energy  Ltd.  (TSXv:  NXE)  86.8  M    $0.275    $23  M     Forum  Uranium  Corp.  (TSXv:  FDC)  19.0  M    $0.39    $7.4  M     Azincourt  Resources  Inc.  (TSXv:  AAZ)  14.1  M    $0.33    $4.6  M     Lakeland  Resources  Inc.  (TSXv:  LK)  22.1  M    $0.10    $2.2  M     *As  at  June  2013          
  25. 25. TSXv:LK / FSE: 6LL / / @LakelandRes! 25! A  well-­‐posi,oned  Athabasca  uranium  explorer   with  key  success  factors  in  place.     Team  with  technical  and  capital  markets  strength     Building  solid  asset  base,  large  scale  presence  in  the  Basin       Low  shares  outstanding  with  high  insider  ownership     Well-­‐planned  and  aggressive  explora,on  program  for  2013/14     Startup  valua,on     Strong  interest  and  market  fundamentals  for  uranium  
  26. 26. 26! Make  Contact   Lakeland  Resources  Inc.   Phone:  604.681.1568   Toll  Free:  1.877.377.6222   Email:   Web:       Roger  Leschuk,  Corporate  Communica,ons   Phone:  604.681.1568   Email:   TSXv:LK / FSE: 6LL / / @LakelandRes!