TSX-V: SMR     

Advanced Watts
Lake Zinc Project

The world’s top-rated mining jurisdiction

The right property

Award Winning
Management Team

Management team with a proven trackrecord of success

The right people

Excellent Blue-
Sky Potential

Positive trench results that exceed expectations, with an attractive valuation and share structure

The right price

Advanced Watts
Lake Zinc Project

The world’s top-rated mining jurisdiction

The right property

Award Winning
Management Team

Management team with a proven trackrecord of success

The right people

Excellent Blue-
Sky Potential

Positive trench results that exceed expectations, with an attractive valuation and share structure

The right price

WHY INVEST IN ZINC?

The need for zinc is not going away.

Zinc is currently the 4th most widely consumed metal in the world.

Visible zinc inventories are now at a 10-year low. Since 2014, Zinc supply has decreased more than 900% from 900,000 tons per year to 100,000 tons per year.

An award-winning management team with two major successes in the same region. The goal to grow shareholder value through continued exploration at the large and highly-prospective Watts Lake project located near the Flin Flon-Snow district; the richest greenstone belt in Canada per square kilometre.

Watts Lake, Saskatchewan

Advanced Asset in Top Jurisdiction with 3 Pillars to Success

  • Saskatchewan is rated 2nd worldwide in 2017 by Fraser Institute for Mining Investment
  • Large Land Package Excellent Blue-Sky Potential
  • Historic Borys Lake Lead-Zinc-Silver deposit

Historic Borys Lake Zinc VMS Deposit

Volcanogenic Massive Sulphide Deposits (VMS)

Borys Lake is located near the Flin Flon district which is a historically important district for VMS ore production.
VMS Deposits are often found in clusters and can be major sources of zinc, copper and lead & often include silver and gold as by-products.

Watts Lake, Saskatchewan

Advanced Asset in Top Jurisdiction with 3 Pillars to Success

  • Saskatchewan is rated 2nd worldwide in 2017 by Fraser Institute for Mining Investment
  • Large Land Package Excellent Blue-Sky Potential
  • Historic Borys Lake Lead-Zinc-Silver deposit

Historic Borys Lake Zinc VMS Deposit

Volcanogenic Massive Sulphide Deposits (VMS)

Borys Lake is located near the Flin Flon district which is a historically important district for VMS ore production.
VMS Deposits are often found in clusters and can be major sources of zinc, copper and lead & often include silver and gold as by-products.

Zinc: Production Unresponsive to Demand

Zinc Balance

  • Market Deficit: Six consecutive years of production deficits have eroded previously-highinventories. Another large deficit projected in 2018
  • Supply Disruption: Depletion/closure of 4 mines from 2013 to 2016, removed 1M tonnes annual supply(approx. 8% of global supply)
  • Chinese Production Struggling: Mine output from China — world’s largest zinc producer — far below expectations two years running
  • Glencore Restarts Less Aggressive than Anticipated: Lady Loretta expected to restart but guidance for FY2018 (1,090kt +/- 30kt) expected to fall from FY2017’s production

Zinc Price is on the Rise

5 Year Zinc Spot
 
“Total visible zinc inventories of 327kt now represent just 8 days of consumption” — Orest (Dec, 2017)
In the past 5 years, Zinc price has increased from lows of approximately

$0.60 to $1.20 per lb.

While Zinc Supply is on the Rise


 
“Restarts and incremental capacity not enough to close the demand gap” — Scotiabank, “Focus on Zinc” (Dec, 2017) Since 2014, Zinc supply has decreased more than

-900%

from 900,000 tons per year to 100,000 tons per year