2. FORWARD-LOOKING INFORMATION
Purpose
The sole purpose ("the Purpose") of this presentation (the “Presentation”) is to provide information on Virtus Minerals Corporation Ltd (“Virtus" or "the Company") This
Presentation and the contents of it do not, and are not intended to, constitute an offer for sale, prospectus, invitation to subscribe for or purchase or otherwise acquire, shares or
other securities in the Company.
Verification of information
The information contained in this Presentation is being supplied as a guide only and no reliance may be placed for any purpose whatsoever on the sufficiency, accuracy or
completeness of the statements contained herein. No representation or warranty whatsoever is given by or on behalf of Virtus or any directors, officers, employees or advisers or
any other person, and no responsibility or liability is accepted by any of them, in relation to the shares, business or prospects of the Company expressed or implied, or with respect
to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts, projections or other information set out in this Presentation or any further
information, written or oral or other, supplied in connection with it. Nothing contained within this Presentation is or should be relied upon as a promise or representation as to the
future. Any pro-forma and estimated financial information contained herein is prepared expressly for use herein and is based on certain assumptions and the Directors' analysis of
information available at the time this Presentation was prepared. There is no representation, warranty or other assurance that any of the projections will be realised. The
information contained herein and any further information relating to the Company supplied by Virtus or its advisers is, and will be, supplied on the condition that neither Virtus nor
its advisers accepts any responsibility and/or liability for any loss or damage of whatsoever nature that may result or occur by reliance on such information and howsoever arising.
The information contained in this Presentation has not been legally verified.
Forward Looking Statement
Certain statements made in this presentation are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's
current expectations, estimates and projections about its industry, its beliefs and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,'
'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and
unknown risks, uncertainties and other factors, some of which are beyond the Company's control, are difficult to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements. These factors include, amongst others; technology risks, including dependence on core technology; fluctuations
in results; dependence on new product development; rapid technological and market change; reliance on sales by others; management of growth; dependence on key personnel;
rapid expansion; financial risk management; and future growth subject to risks. The Company cautions recipients of this presentation not to place undue reliance on these forward-
looking statements, which reflect the view of the Company only as of the date of this presentation. The forward-looking statements made in this presentation relate only to events
as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements
to reflect events, circumstances or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.
Qualified Person
Scientific or technical information in this presentation has been reviewed by Stanley Robinson, P. Geo, who is the 'qualified person' (as such term is defined under National
Instrument 43-101) of the Company.
CORPORATE PRESENTATION AND UPDATE
Q1/2017
3. THIS IS D-DAY FOR LITHIUM MINERS: IT’S ALL
ABOUT NEW ENTRANTS TO A COMMODITY
SPACE THAT IS ABOUT TO CHANGE
EXPONENTIALLY…
4. LITHIUM IS KEY
TO ADDRESSING
OUR FUTURE
ENERGY NEEDS.
THE BOUNDARIES OF ENERGY
STORAGE ARE BEING PUSHED BY
GRID-SCALE POWER STORAGE,
ELECTRIC VEHICLES AND
CONSUMER ELECTRONICS.
Photo: Apple.
5. Seed capital will be used to fund exploration on the Company’s
Nemiscau & Nemiscau-Vista, Kapituka, Voirdye, Teilhard, Cramoisy
and Cascapédia lithium projects in Québec, and for general working
capital in preparation for listing Virtus on a Canadian Stock
Exchange.
VIRTUS AIMS TO GENERATE A PIPELINE OF WORLD-CLASS
PROJECTS, FOCUSING ON LITHIUM AND SAFE GEOPOLITICAL
REGIONS OF THE WORLD.
6. THE MOVE TO LITHIUM
Why Lithium?
Lithium powers modern technology: it is used in rechargeable
lithium-ion batteries for electric vehicles, grid-scale energy
storage, phones, laptops, cameras, gaming consoles and
hundreds of other electronic devices. Lithium-ion batteries are
used increasingly for bikes, power tools, forklifts, cranes and
other industrial equipment.
We have already seen Tesla increase the land holding of their
$5 billion lithium-ion battery factory currently under construction
in Nevada—and the company recently announced the Model 3,
which has already hit over 300,000 pre-orders
And Faraday Future struck a deal to build a $1 billion electric car
plant in NV.
Due to lithium’s key role in batteries, and the ever expanding
need of batteries to power our modern lives, lithium seems
untouched by economic downturns.
CORPORATE PRESENTATION AND UPDATE
Q1/2017
Photo: Tesla Motors, Inc.
7. BUT IT’S NOT JUST ABOUT TESLA
Demand is growing, not slowing.
It’s not all about Tesla. While Tesla has stoked plenty of
excitement around lithium, it’s far from the only end user.
Google, Apple, Sony, and vehicle manufacturers, such as Audi
and Mercedes, had entered the space in earnest1.
Meanwhile, battery majors, such as LG Chem and Samsung, all
have expansion plans for their new plants. Companies like BYD
are also building their own battery plants. Boston Power is
looking to expand, while Foxconn said they were going to enter
battery manufacturing.
At least 12 lithium ion “megafactories” are forecast to come
online by 2020 (new or existing plants being planned,
constructed or expanded to gigawatt-hour capacity), with seven
of them located in China.
1 Source: Benchmark Mineral Intelligence
CORPORATE PRESENTATION AND UPDATE
Q1/2017
8. $16.5 TRILLION
PROJECTED
INVESTMENT BY 2040 IN
SOLAR, WIND,
TRANSPORTATION AND
INFRASTRUCTURE
- International Energy Agency,
World Energy Outlook, Special
Briefing for COP21
9. LITHIUM IN TIGHT SUPPLY
So where will new supply come from?
Demand for lithium - one of the hottest commodities on the
planet - is poised to continue on its upward trajectory, becoming
the world’s new gasoline and earning the moniker of “White
Petroleum”.
However, new supply of low-cost lithium is constrained: political,
capital, technical and environmental issues are forcing new
projects either into failure or causing delays.
This has caused recent spot prices for lithium in China to have
doubled, resetting price expectations.
Proof of unstoppable lithium demand can be found in the fact
that even though natural gas, coal and gasoline prices are down
50% or more, lithium prices increased by about 20% in 2014
and by a larger percentage in 2015.
CORPORATE PRESENTATION AND UPDATE
Q1/2017
10. Source: Deutsche Bank; Asian Metals
0
50
100
150
200
250
300
350
400
450
2015 A 2016 E 2017 E 2018 E 2019 E 2020 E 2021 E 2022 E 2023 E 2024 E 2025 E
US$900 MLITHIUM “MARKET VALUE”
OVER 400,000 TPROJECTED ANNUAL DEMAND FOR LITHIUM BY 2025
Lithium Carbonate Equivalent (“LCE”)
demand (‘000 metric tonnes)
11. Source: Citigroup, Economist
CHARGING UP
CORPORATE PRESENTATION AND UPDATE
Q1/2017
Lithium Carbonate spot price per metric tonne ($ ‘000)
The price of 99%-pure lithium
carbonate imported to China more
than doubled in the two months to
the end of December, to $13,000 a
tonne.
The spike mostly reflected
concerns about the future liquidity
of China’s spot market.
Sales of “new energy” vehicles in
China almost tripled in the first ten
months of 2015 compared with the
same period in 2014, to 171,000.
12. QUÉBEC: THE PLACE TO EXPLORE!
Québec holds the sixth spot in the Fraser Institute’s 2014 rankings of
the world’s most attractive jurisdictions for mining investments.
Specifically, Québec is favourable because it:
has transparent mining laws.
has a secure investment climate—political stability, transparent
institutions, a sound financial system and a robust economy.
has active mining and exploration markets with historically good
access to capital.
it is mining-friendly—it is Canada’s second-largest producer of
gold, and is highly prospective for other minerals, including
lithium, REEs, base metals and uranium.
Additionally, Canada ranked first on the Behre Dolbear list of the
best countries for mining investment (2014).
CORPORATE PRESENTATION AND UPDATE
Q1/2017
Photo: Tesla Motors, Inc.
14. The Nemiscau Project area comprises two
contiguous claim blocks, Nemiscau and Nemiscau-
Vista, totalling 89 claims covering 4,714 ha in the
James Bay region of Québec.
The property is approximately 5 km from and on
strike with the world-class Whabouchi Lithium Mine
(27.3 million tonnes (P+P) at 1.46% Li2O),
currently being developed by Nemaska Lithium
Inc. (TSX.V NMX).
Work carried out by previous operators at
Nemiscau is minimal: no drilling has yet been
completed on the property.
Exploration is planned to begin as soon as
financing is secured.
NEMISCAU, QC.
15. Property geology
Nemiscau is located in the Superior Craton of the Canadian Shield.
Regional and property-scale geology consists mainly of granites and
oligoclase gneisses with amphibolites and pegmatites reported
regionally.
The Nemiscau area has been considered prospective since the
1950s, and claims have been held by a number of companies. Though
little work has been carried out, several minerals of potential economic
significance have been reported on a regional scale.
Phase I - Thorough sampling and
geochemical analysis of known granites
and pegmatites to assess rare element
fertility along with a property‐wide surface
till and boulder sampling program to
detect pegmatite float and/or LCT
indicator minerals;
Phase 2 - A helicopter magnetic survey at
100 m line spacing to define bedrock
geology and structural controls for
pegmatite emplacement on the property
followed by in‐fill surface till sampling,
base of till sampling, soil geochemistry
and further geochemical sampling of
bedrock to define drill targets;
Phase 3 - An approximately 2,000 –
4,000 m diamond drilling program to test
targets identified in Phase 2.
NEMISCAU, QC.
17. The Kapituka exploration project comprises 55
claims for a total of 2,869 ha in the James Bay
territory of Northern Quebec. The claim blocks lie
some 5 km south from the world-class Whabouchi
lithium deposit of Nemaska Lithium Inc..
The Kapituka project claims were part of a claim
group belonging to Osisko Exploration (Virginia
Gold) back in 2003.
KAPITUKA, QC.
18. Property geology
The Kapituka property covers a small portion of an area underlain
by gneissic rocks that hosts a series of pegmatite dikes that
extend along strike for over 100 km. Pegmatites in this area are
lithium bearing; the most significant to date is the Whabouchi
deposit 5 km to the north that is being developed by Nemaska
Lithium (NMX-TSX.V).
The Whabouchi lithium deposit is chiefly
made up of a spodumene bearing white
pegmatite which has a length of 1,2 km
with a 40 m width. In comparison, the
Kapituka Project has at minimum two
untested granitic pegmatite dikes that
each extend for over 3 km and 1.6 km in
length each.
Critical Elements (CRE.V) holds adjacent
properties to Virtus's Kapituka project and
are prospecting for lithium in those
scattered pegmatites/pegmatitic granites
which are known to occur over a strike
length of 110 km for their content in
lithium, tantalum, niobium and beryllium.
Initial prospecting program is planned to
begin as soon as financing is secured.
KAPITUKA, QC.
20. The Voirdye property is located 15 km east of
the Whabouchi deposit and 7 km south of the
Lemare lithium discovery (Critical Elements
Corporation).
It is composed of 52 Claims covering an area
of 2,787 hectares.
The Voirdye Property is located within a
northeast‐southwest trending package of
Archean orthogneiss with tonalite, granite and
pegmatite intrusions that are part of the
Opatica subprovince. The pegmatites and
intrusive bodies roughly align with the
dominant fabric of the belt.
The pegmatites mapped on the property have
not been tested for rare‐element LCT type
mineralization. In addition, mapping and
sampling by Cambior identified additional
areas that contain pegmatites that are not
included in the government mapping (Caron,
2005).
VOIRDYE
22. TEILHARD AND
CRAMOISY
The Teilhard property is located 15 km
ENE of the Whabouchi deposit and 5
km northwest of the Lemare lithium
discovery (Critical Elements
Corporation).
The Teilhard property is composed of
45 Claims covering an area of 2,396
hectares.
The Cramoisy property is located 15 km ENE of the
Whabouchi deposit and 7.5 km north of the Lemare lithium
discovery (Critical Elements Corporation).
The Cramoisy property is composed of 14 Claims covering
an area of 745 hectares.
24. The project area comprises 14 claims
covering approximately 700 ha in the
southern Gaspe Peninsula of eastern
Québec.
Work carried out by the Ministry of Energy
and Resources includes property-scale soil
sampling, the results of which show
anomalous lithium.
Further work is required to establish whether
elevated lithium values on the property are
hosted by clay minerals in sedimentary rocks
or are associated with pegmatites.
CASCAPÉDIA, QC.
25. Property geology
The Cascapédia Project, in southern Gaspe Peninsula is underlain
with Ordovician to Lower Silurian metasedimentary rocks of the
Matapédia and Honorat Groups.
Lithological units are limestone, shale, sandstone and conglomerates.
A geochemical survey carried out in 1988 returned anomalous lithium-
in-soil values. A preliminary interpretation concludes that the
Matapédia and Honorat Groups host Lithium bearing minerals that are
most likely contained within pegmatites.
Phase 1 would consist of a site visit where
geologists would collect rock samples for
geochemistry and petrography to
investigate the source of lithium anomalies
found in the soil and rocks.
CASCAPÉDIA, QC.
CASCAPÉDIA
PROJECT
CASCAPÉDIA LITHIUM
PROJECT
26. CASCAPÉDIA, QC.
Geochemistry summary
The 1988 geochemical survey
returned lithium -in-soil values
ranging from 41 to 146 ppm Li over a
3.5 km strike length and 2.0 km width
normal to strike.
Further work is required to establish
whether elevated lithium values on
the property are hosted by clay
minerals in sedimentary rocks or are
associated with pegmatites.
27. “THE STONE AGE
CAME TO AN END, NOT
BECAUSE WE HAD A
LACK OF STONES, AND
THE OIL AGE WILL
COME TO AN END NOT
BECAUSE WE HAVE A
LACK OF OIL.”
— Sheikh Ahmed Zaki Yamani
formerly Saudi Arabia's minister for oil (1962–1986) and head of Opec
29. DANIEL BARRETTE — President and Chief Executive Officer (Director): Mr. Barrette possess over ten years’ experience in the mining
industry in a variety of commodities, including gaining substantial experience in managing and restructuring mining companies. Mr. Barrette was
instrumental in the restructuring, consolidation and development of SearchGold Resources Inc. (TSX.V-RSG) from 2011 until its successful RTO
by Ubika Corp in 2013, and for its financing of $54 million. Mr. Barrette has assisted public and private mining companies in acquiring mineral
properties, and in establishing and developing business in Africa, where he has extensive network of strategic contacts. Prior to Searchgold, he
was COO for Gilla Inc. (GLLA-OTCBB) until its RTO with Snoke Distribution Canada Ltd. Mr. Barrette was President & CEO of Affinor
Resources Inc. (TSX.V:AFI) from 2006 to 2008.
MARTIN NICOLETTI, CPA, CGA — Chief Financial Officer: Mr. Nicoletti joins the Company as Chief Financial Officer. Mr. Nicoletti is a
certified general accountant with twenty-seven years of experience. He graduated from the Quebec University in Trois-Rivières in 1987 with a
bachelor degree in business administration. He joined Price Waterhouse where he spent the next four years serving several clients in the mining
industry. He then spent the following eleven years with companies as a controller or chief accountant. Since 2004, he has been involved with
public junior mining companies carrying out exploration activities worldwide, with responsibilities in financial controls and financial reporting. He
currently serves as the Chief Financial Officer of several public companies.
STANLEY ROBINSON, M.Sc., P.Geo — VP, Exploration (Director): Mr. Robinson is a Professional Geoscientist with 40 years’ exploration
and corporate experience in management of base metal and gold exploration projects from grassroots to feasibility in Africa and Canada as well
as project due-diligence and report writing in South America. Stanley delineated: 1.67 million ounce NI 43-101 compliant gold and inferred gold
resource, part of a nearly 3 million ounce global resource, in the Democratic Republic of Congo; 1.30 million ounce, non-NI 43-101 compliant,
gold resource in Burkina Faso; currently in commercial production; 0.25 million ounce, non-NI 43-101 compliant, gold resource in Nunavut,
Canada. Stanley serves as a Qualified Person, as defined under National Instrument 43-101.
CORPORATE PRESENTATION AND UPDATE
Q1/2017
MANAGEMENT TEAM
30. DERRICK WEYRAUCH, CPA, CA — Non-Executive Chairman of the Board (Director): Mr. Weyrauch is a Chartered Professional
Accountant (“CPA”, “CA”) with over 25 years of experience that includes corporate financial management, financings, corporate restructuring,
strategic planning and merger & acquisitions. He serves currently as the Audit Committee Chair for Banro Corporation (a gold producer).
Previously for Jaguar Mining Inc. (a gold producer), he served as the Chief Financial Officer, Chairman – Special Committee Restructuring and
Recapitalization and as a member of the Audit Committee. Additionally, prior to its sale in 2013, Mr. Weyrauch served as the Chief Financial
Officer of Andina Minerals Inc. Mr. Weyrauch earned his CA designation in 1990 while working at KMPG and he is a member of the Institute of
Chartered Accountants of Ontario, the Institute of Corporate Directors and he holds a Bachelor of Arts degree in Economics.
DAN HRUSHEWSKY, B.Eng., MBA, CFA — Director: Mr. Hrushewsky is an Engineer, MBA and CFA. Since his recent role as a gold mining
analyst for Jennings Capital in Toronto, he has consulted for numerous mining companies on strategic issues, M&A, capital markets financing
and mine plan optimization. Prior to his work as an analyst, he was employed in Corporate Development/M&A for gold and base metal
producers, and in project finance for a Canadian Bank.
SILVIO BERTOLLI, B.S. (Chemical Engineering), — Senior Advisor: Mr. Bertolli has over 40 years of experience in the mining and oil
industries, and has held technical, management and executive positions at ENI Group Companies, Agip SpA, Snamprogetti and major US
companies. Mr. Bertolli’s mining experience includes project and technology development, management and business in the US. As Managing
Director, he was responsible for the Agip Group’s mineral properties acquisition and development in the western US. Since 2008 as Senior VP
at Western Lithium Corp., Mr. Bertolli was responsible for project and engineering development, including technology of lithium projects
encompassing Li-rich clays and salt deposits. His knowledge in technical, cost estimating and economic analysis, includes the traditional Li-
Salars.
PIERRE LABREQUE, P.Eng. — Senior Advisor: Mr. Labreque is a consultant geological engineer with over forty years experience in mineral
exploration and evaluation, both in Canada and abroad. He has diversified experience which encompasses all the modern techniques now in
use to evaluate the exploration potential of a property, with extensive experience in prospecting for gold, base metals, uranium and industrial
minerals. Mr. Labreque has a strong background in exploration geophysics, geochemistry, economic geology and drilling. He has been involved
on a regular basis in project management and decision making and has participated in several international assignments as a consultant,
supervisor and senior geologist. Pierre holds a Geological Engineering degree from Ecole Polytechnique, University of Montréal and is a
member of the Ordre des Ingénieurs du Québec. and is a Qualified Person, as defined under National Instrument 43-101.
CORPORATE PRESENTATION AND UPDATE
Q1/2017
BOARD AND ADVISORY TEAM
