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Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

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Highbank Resources Ltd. (HBK.V) - February 2015 Presentation.

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Highbank Resources Ltd. (HBK.V) - February 2015 Presentation

  1. 1. Loadout Location > Donahue Creek FEBRUARY 2015 1 This document contains certain forward-looking statements and information relating to Highbank that are based on the beliefs of management as well as assumptions made by and information currently available to management. When used in this document, the words "anticipate," "believe," "estimate," "expect," and "intend" and similar expressions, as they relate to Highbank or its management, are intended to identify forward-looking statements. Such statements reflect the current view of Highbank respecting future events such as the antcipated completion of certain Prince Rupert-Kitimat construction projects, the Company’s ramp-up schedule, various stages of financing by the company, completion of stage two and any production estimates, the Company’s use of proceeds calculation, projected cashflow forecasted revenue and production dates, revenue and profit, and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. Any technical or geotechnical information related to the Swamp Point North resource was prepared under the direction of Keith McCandlish of DMT Geosciences Ltd., (formerly Associated Geosciences of Calgary, Alberta), a qualified person under NI 43-101.
  2. 2.  East side of Portland Canal fjord on protected, year round ice free tidewater  Site access by helicopter, float equipped aircraft, or boat  78 miles by water, south to Prince Rupert and 38 miles north to Stewart  Importantly only 35 miles south by water, to Grassy Point, site of proposed LNG Terminal/Plants 2
  3. 3. Swamp Point 3
  4. 4. 4
  5. 5. 5
  6. 6. Sector: Resources Property Type: Construction Aggregate Stock Market Symbol: TSX.V: HBK; Frankfurt: V7O 52-Wk Trading Range: C$ 0.105 - C$ 0.38 Shares I&O: 103,165,999(Feb 28, 2015) Market Capitalization: C$18.0 million (approx.) 6
  7. 7. Athabasca Minerals TSX.V: ABM Price: $1.08 52-Wk Range: $0.65 -$3.20 Market Cap: $39.9 million Polaris Minerals (TSX: PLS) Price: $2.60 52-Wk Range $1.65 - $3.20 Market Cap: $227.9 million 7
  8. 8.  Sand, gravel, crushed stone essential for road building and concrete for commercial operations  Aggregate is the world’s most mined material next to oil. 2012 global sales revenues were est. at $99 billion, an increase of 41% from 2010 est. sales of $70 billion  Annual Canadian consumption of aggregate 10 to 15 tons per person  BC Production was 38 million tonnes in 2010 valued at C$322million  BC Production expected to considerably exceed previous years 8
  9. 9.  The mining of a sand and gravel deposit for construction in the Prince Rupert area to create a significant new supply source for the industry*  All permits, licences and approvals obtained  Approx. $5.4 million of development and $3.2 million equipment capital costs  Proximity to LNG and pipeline projects – high demand for aggregate  First sales commitment received, other bids placed for supply  Cooperative agreement in place with First Nations  Processing Equipment on site and site preparation underway  Near-term production, barge loading commissioned Nov 2014  Land position increased from 51 to 174 Hectares (all in good standing) 9 *The Company decision to proceed with production is not based on a feasibility study of reserves demonstrating economic and technical viability and as a result there may exist increased uncertainty, economic and technical risk of failure associated with such production decision.
  10. 10. 10 Classification Tonnes Measured 62,936,877 Indicated 8,775,166 Measured and Indicated 71,712,043 Inferred 2,246,464 Source: DMT Geosciences Ltd. (Formerly, Associated Geosciences Ltd.) prepared the resource model and estimation under the direction of Keith McCandlish, P.Geo., and P. Cain, PhD, P.Eng., both qualified persons defined under NI 43-101
  11. 11.  PRINCE RUPERT AREA – HAS LIMITED SUPPLIES OF QUALITY SAND AND GRAVEL  HIGHBANK’S SWAMP POINT DEPOSIT MEETS SPECIFICATIONS FOR CONSTRUCTION AGGREGATE  NEAREST, LARGEST AND MOST ACCESSIBLE SOURCE WITH LOW COST TRANSPORTATION - BARGING 11
  12. 12.  Primary Target Region Prince Rupert-Kitimat, B.C. and Alaska  Competitive Advantage Proximity to the Port of Prince Rupert’s construction projects facilitates port to port transportation – most economic mode of delivery  Strategic location to supply Grassy Pt. and proposed pipelines  Highbank’s First Sales Contract To North Coast Concrete. 150,000 tonnes. Signed March 2014. 12 Proposed Off –Loading site at Ridley Island
  13. 13.  10 year expansion plan of Prince Rupert Port Authority - $1.3 billion Federal Initiative  Spectra – BG, 850-km pipeline project - $6-$8 billion  Canpotex potash terminal - $400 million  Watson Island Industrial Site Redevelopment - $90 million  Ridley Terminals coal expansion - $200 million and $90 million road and infrastructure projects  Global TV video clip on multi-billion dollar projects in Prince Rupert-Kitimat http://tinyurl.com/9q4syyx 13 Canpotex Potash Export Terminal
  14. 14.  Exxon Mobile Imperial Oil export, permit filed for terminal at Grassy Point (38 miles from Swamp Point)  Region’s share of BC provincial govt’s $25 billion Pacific Gateway Transportation Strategy investment  Pacific North West LNG Terminal $9 - $11 Billion  See Invest in Northwest http://investnorthwestbc.ca 14
  15. 15.  Site preparation complete October and Plant installed – stockpiles of aggregate being prepared for processing  Pilings for loadout completed October 2014  Loadout conveyor installed October/November 2014  Loading first barge for shipment estimated March 2015  Initial mining phase at rates of up to 235,000 tonnes per year 15
  16. 16.  Initiate Environmental Impact and associated studies for unlimited production March – July 2015  Assess requirements for plant expansion February 2015  Install new conveyor from plant to load-out conveyor – 2nd Quarter 2015  Commence plant scale-up and determine additional equipment requirements  Year 2015/16 Full Scale production 16
  17. 17. Source of Funds Convertible Debenture Financing C$4.0 million Other Financing (Short Term Loans, warrant exercising) C$3.0 – C$3.5 million Use of Funds Swamp Point North Capital & Start-up Costs C$6.5 – C$7.0 million General Working Capital C$ 500,000 Total C$7,500,000 17
  18. 18.  Victor N. Bryant, I.Eng; MAusIMM, President/CEO/Director 40+ years mining experience incl. with Major Mining Companies  Gary Musil, Secretary/CFO/Director 30 years financial and management consulting experience  Stan Spletzer, VP of Aggregate Operations 30 years contracting experience incl. for Canfor, Houston Forest Products, and BC Ministry of Forests  Luard J Manning, P.Eng (Mining) Director 50 years mining experience as a consultant and as President of L.J. Manning and Associates since 1967  Jim Place, P. Geo; 25+ years with BC Government, engineering and consulting companies including Levelton, and quarry evaluations  Bill Loucks CPA, CA, CFP 25+ years providing audit, accounting, tax & consulting services. Managing Partner – Collins Barrow Chatham - Kent 18
  19. 19. #600 - 625 Howe Street, Vancouver, B.C. V6C 2T6 Victor Bryant CEO/President/Director Gary Musil, CFO, Secretary/Director t. (604) 683-6648/f. (604) 683-1350 highbank@telus.net www.highbankresources.com This document may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Forward-looking statements are projections of events, revenues, income, future economic performance or management’s plan and objective for future operations and include, without limitation, statements with respect to the anticipated production from the Swamp Point North Aggregate Project, the realization of mineral estimates, success of mining operations, the timing and amount of estimated future production, title disputes or claims, environmental risks, limitations on insurance coverage, current and anticipated purchase negotiations and arrangements, requirements for additional capital; and government regulation of mining operations. In some cases, you can identify forward- looking statements by the use of terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. By their very nature forward-looking statements involve 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 statements. Such factors, including: fluctuations in worldwide prices and demand for aggregates; changes in project parameters as plans continue to be refined; possible variations in grade and or recovery rates; accidents, labour disputes as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, are filed and available for review on SEDAR at www.sedar.com. 19

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