Opportunities For Optimization of Small-Scale High-Grade Mines in Peru – Attracting International Capital for Future Growth

1. Oportunidades de optimización de pequeñas minas
en Peru con altas leyes – Atrayendo capital extranjero
para el crecimiento futuro
Opportunities For Optimization of Small-Scale High-Grade Mines in
Peru – Attracting International Capital for Future Growth
Oportunidades de otimização com escala pequena de produção, porém
com alto teor - atraindo capital internacional para crescimento futuro
David Stein, CFA, MSc., President (Toronto, Canada) and
Christian Aramayo, ChEng., MSc., Chief Operating Officer (Lima, Peru)
May 25, 2018

2. About Aerecura Capital:
Founded in 2016 as an investment manager focusing on niche strategies in
the mining and natural resources sectors. Aerecura invests its own capital
and also manages 3rd party capital.
Principal Investment – Kuya Silver Corp
Founder/Lead investor – acquisition and expansion of high grade
` silver-lead-zinc-copper-gold mine in Peru
Portfolio Manager and Investor – Ore Acquisition Partners LP
Holds minority non-controlling interests in private and illiquid
mining assets, focused on the Americas
Principal investment
Minority investment

3. Peru is one of the only places on Earth where the mining industry is strong
at ALL scales.
This has created challenges for government regulation to maintain fair and
equitable rules for the largest and smallest miners, and as a result have
created four mining categories:
Artisanal Miners
<25 tpd
Small Miners
25 - 350 tpd
Medium Miners
350 - 5000 tpd
Large Miners
>5000 tpd

4. How Aerecura – A Private Equity Investor – Views the Peruvian mining
landscape
• Little to no data available
• Mining methods and scalability are questionable
Small Miners
25 - 350 tpd
Medium Miners
350 - 5000 tpd
Large Miners
>5000 tpd
Artisanal Miners
<25 tpd
• Data varies from one mine to another; can be very good quality
• Only suitable for very high grade mines
• Scalability potential is excellent
• Data quality good to excellent
• Group consists of larger local (private Peruvian) and public
companies
• Scalability potential is excellent
• Data quality excellent
• Highly studied and reviewed projects – public companies and large
SOEs only

5. Peru is the 2nd largest silver producer in the world
Of 585 metal mines in the country, 194 produce some
silver (main product, co-product, by-product)
Roughly 50% of silver production comes with gold only,
and 50% from base metal/polymetallic mines – only 1
operation produced silver only
Polymetallic mines typically produce silver, zinc, lead,
copper and/or gold in some combination. Only about 10%
produce all five metals
Ag
47

6. Silver Polymetallic Mining
Operational opportunities
• High grade/high value ore = less capital intensive
• Trucks, mining equipment, processing equipment
is all smaller, cheaper, off-the-shelf
• Metallurgically simple
• Can be optimized to improve recoveries and
recovery other metals
• Scalable – easy to expand production if desired
Market Opportunities
• Silver typically outperforms gold in a bull market
• Producing 3-4-5 metals provides positive
diversification
• Few silver-focused companies to invest in, less
competitive for investors
• Good opportunities for growth by acquisition in
Peru and LATAM
Peru is the perfect place to execute this strategy

7. Pan American Silver
• Acquired Quiruvilca (La Libertad) in 1995
• Expanded to 2.5 Moz/yr in 1996
• Was Pan American’s only producing mine for 3
years before expanding to Mexico
• Produced lead, zinc and copper concentrates
until sold in 2012
• Acquired 2nd mine in Peru, Huaron (Pasco), in
2000 – growing production >8 Mmoz/yr from
4 mines in LATAM
• Today produces > 25 Moz/yr from 6 mines in
Peru, Bolivia, Argentina and Mexico
Market Cap
$2.7 Billion

8. Fortuna Silver
• Listed with Caylloma mine (Arequipa) in 2005,
a former producing mine that was shut down
in 2003.
• Fortuna invested in modernizing and
expanding Caylloma (1000 tpd) and reopened
the mine in 2007
• Expanded again in 2016, now 1430 tpd
• Fortuna today produces >8 Moz/yr from
mines in Peru and Mexico and is building a
new gold mine in Argentina Market Cap
$950 Million

9. Kuya Silver
• Acquiring 80% of Bethania (Huancavelica) silver
mine in 2018
• Bethania mine on care and maintenance since
2016. Challenged as a small toll milling operation
despite good grades and resource size
• Expand underground production and build
concentrator/plant in 2019
• Building block asset for new silver company,
expected to produced 1.7 Moz/yr silver + by-
products by 2020 (~60% silver/40% by products) Market Cap
$15 Million*
*post-acquisition

10. Kuya Silver - Opportunity
Current Status as Small Mine
• Operated well at a small scale
• No exploration
• Lack of capital for processing –
reliance on toll milling which carries
very high cost
• Lack of working capital – during
periods of low prices mine is
unprofitable
+
Capital
And
Expertise
Optimized Status
• Expand production by 3.5x
• 43-101 resources review and
exploration plan to grow resources
• Build plant at mine site to capture
more profit from ore and optimize
recovery
• Take public to provide better access
to capital for growth

11. Gracias / Thank You

12. This presentation includes a summary description of Kuya Silver Corp. (“Company”) and its business and does not purport to be
complete. This presentation is not, and in no circumstances is it to be construed as, a prospectus, an advertisement, or a public
offering of securities. No securities regulatory authority or similar authority has reviewed or in any way passed upon the
document or the merits of these securities and any representation to the contrary is an offence. This presentation is submitted
on a confidential basis for use by a limited number of qualified prospective investors solely in connection with the consideration
of the purchase of common shares of the Company (collectively, the “Securities”) on a private placement basis. No person has
been authorized to provide any information in connection with this offering of the Securities other than the information
contained in this presentation.
The information contained in this presentation has been prepared by the Company and there is no representation or warranty by
the Company or any other party as to the accuracy or completeness of the information set forth herein and prospective investors
will only be able to rely on the representations and warranties contained in the subscription agreement to be entered into at the
time of a sale of the Securities. Except as otherwise stated, information included in this presentation is given as of the date
hereof. Neither the delivery of this presentation nor any sale made under the terms described herein shall imply that the
information herein is correct as of any date after the date hereof.
In making an investment decision, prospective investors must rely on their own examination of the Company and the terms of the
Securities, including the merits and risks involved and should not base their decision on whether to invest in the Company upon
the material provided herein. Purchasing, holding or disposing of the Securities may subject purchasers to tax consequences
under the laws of Canada. These tax consequences are not disclosed in this document and prospective investors should consult
with their tax advisors prior to making an investment in the Securities. Prospective investors should not construe anything in this
presentation as investment, legal or tax advice. Each prospective investor should consult its own investment, legal, tax and other
advisers regarding the financial, legal, tax, and other aspects of any purchase of Securities, including whether it is legally
permitted to purchase the Securities under applicable laws.
All dollar amounts referenced herein, unless otherwise indicated, are expressed in Canadian dollars.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Statements contained in this presentation that are not current or historical factual statements may constitute “forward-looking
information” within the meaning of applicable securities laws. The forward-looking information reflects current expectations
regarding future results, performance or achievements and speaks only as of the date of this presentation. When used in this
presentation, forward-looking information can be identified by such words as “may”, “will”, “expect”, “believe”, “plan”, “project”,
“anticipate”, “intend”, “estimate” and other similar terminology. Such forward-looking information involves known and unknown
risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be
materially different
from any future results, performance or achievements expressed in or implied by such information. Such risks, uncertainties and
other factors include, but are not limited in any manner to: risks inherent in exploration activities; volatility and sensitivity to
market prices for silver; volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the ability
to raise funds through financings; imprecision in resource and reserve estimates; environmental and safety risks including
increased regulatory burdens; unexpected geological conditions; changes in government regulations and policies, including trade
laws and policies; demand for silver; failure to obtain necessary permits and approvals from government authorities; weather and
other natural phenomena; and other exploration, development, operating, financial market and regulatory risks. The foregoing
list of factors is not exhaustive.
Although management of the Company believes that the assumptions underlying and the expectations reflected in the forward-
looking information are reasonable, significant risks and uncertainties are involved in such information. Management can give no
assurances that its assumptions, estimates and expectations will prove to have been correct. Forward-looking information should
not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or
the times at or by which such performance or results will be achieved. Many factors that are beyond the Company’s control could
cause actual results to differ materially from the results discussed in the forward-looking statements.
When considering forward-looking information in this presentation, prospective investors should ensure that the preceding
information, the risk factors and the other contents of this presentation are all carefully considered. Except as expressly required
by law, the Company does not assume any obligation to update or revise forward-looking information, or to publicly release the
results of any revisions to forward-looking information to reflect new events, assumptions or circumstances.
FOR INFORMATION ONLY - NOT INTENDED AS AN INVESTMENT PRESENTATION