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ONEOFTHEWORLD’SSIGNIFICANTGOLDOXIDE/GOLD-COPPERPROJECTS
TSX:XRCNYSEMKT:XRA
www.exeterresource.com
Caspiche
Cau$onary Note to U.S. Investors – The United States Securi$es and Exchange Commission (“SEC”) permits miningcompanies in theirfilingswith theSEC todiscloseonly thosemineraldeposits thata companycaneconomicallyandlegally extract or produce. We use certain terms in this presenta$on, such as “inferred resource”, that the SECguidelinesstrictlyprohibitusfromincludinginourfilingwiththeSEC.U.S. investorsareurgedtoconsidercloselythedisclosurecontained inourannualreportonForm20.YoucanreviewandobtaincopiesofourfilingsfromtheSEC’swebsiteathNp://www.sec.gov/edgar.shtml.Thisdocumentandtheinforma$oncontainedinitdonotcons$tuteaprospectusanddonotformanypartofanofferof,orinvita$ontoapplyfor,securi$esinanyjurisdic$on.Poten$alinvestorsshouldnotrelysolelyontheinforma$oncontainedhereinpriortomakingany investmentdecision. Investorsshouldseek independentadvicefromaqualifiedfinanceandinvestmentadvisor,givingdueregardtotheirownpersonalcircumstances,priortoforminganyinvestmentdecision.SafeHarbourStatement -Thispresenta$onmaycontaincertain“forward-lookingstatements”within themeaningoftheUnitedStatesPrivateSecuri$esLi$ga$onReformActof1995.Thesestatementsreflectourcurrentbeliefandarebased upon currently available informa$on. Actual results could differ materially from those described in thispresenta$onasaresultofnumerousfactors,someofwhichareoutsideofthecontrolofExeter.Manyoftheassayresultsandtheeconomicanalysispresentedarepreliminaryandmaynotbeaccurateduetovariousfactors,includingbutnotlimitedtosamplerecoveries,truewidthsandinterpreta$ons.WendellZerb,Exeter´sPresident&CEOanda“qualifiedperson”(“QP”)withinthedefini$onofthatterminNa$onalInstrument43-101,StandardsofDisclosureforMineralProjects,hasreviewedandapprovedthetechnicalinforma$oninthispresenta$on.
Cau$onaryStatement
2!
• ATrackRecordofSuccess -Threesignificantmineraldiscoveriesinthelastdecade -SpunoutExtorretoshareholdersona1-to-1basis(2010) - wastakenoverbyforC$414MorC$4.26/share(2012)
• Control100%ofCaspiche -M&IMineralResources1:Oxides1.7MozAuEq,Sulphides37.9MozAuEq -Unique:goldoxide,highergradegold/coppercore,largescalegold/copper -StableMiningJurisdic$on-Chile
• Direc$ngRe-valua$on -LowCapexstartupop$ons2,strongeconomics -Caspichesufficientlyadvancedtofasttrackdevelopmentdecisions -Fundamentallyandcompara$velyundervalued -Favorable$mingforselectgoldequi$es
• CashofC$22million.NoDebt.
WhyInvestinExeter?
3!
Thefounda$onforsuccess:TrackRecord,UniqueAsset,Cash
1SeemineralResourcesslidefordetails:OxideM&[email protected]/tAu,1.58g/tAg;SulphideM&I1,[email protected]/tAu,0.20%Cu,1.17g/tAg.2SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.
CapitalStructure
4!
CapitalStructure(asofFebruary1,2016)
CommonSharesOutstanding 88.4M
OpMons 7.4M
FullyDiluted 95.9M
Avg.DailyVolume
NYSEMKT:124kTSX:11k
Cash C$22M
Shareholders
ManagementandInsiders:8%InsMtuMons:33%Retail:59%
AnalystCoverage
TDSecuriMesMr.DanielEarledaniel.earle@tdsecuriMes.com1.416.308.7906
ManagementandBoardofDirectors
5!
YaleSimpson Co-Chairman
BryceRoxburgh Co-Chairman
RobReynolds Director
JulianBavin Director
JohnSimmons Director
President/CEO WendellZerb,P.GeolGeologist/Capital
Markets–29yrs
CFO CecilBond CA–30yrs
ExploraMon MadhewWilliams–ExploraMonManager,Americas Geologist–24yrs
Development JerryPerkins–VPDevelopment&OperaMons Metallurgist–40yrs
MadhewDorman–StudyDirector Engineer–29yrs
GonzaloDamond–CommercialManager Engineer–21yrs
Corporate RobGrey–VPCorporateCommunicaMons IR–17yrs
StrongBoardofDirectors ExperiencedManagementTeam
LowGeopoli$calRisk-Chile
6!
Chile:aminingfriendly,poliMcallystable,OECDnaMon
TheFraserIns$tute’s2014surveyonoverallrisk(PPI*)placedChile22ndoutof122miningjurisdic$ons,and#1inSouthAmerica.
• World’slargestexporterofcopper.
• Consistentlyrankedasoneofthetopplacestomineintheworld&the#1placetomineinSouthAmerica.
• Clearregula$ons,transparency,well-establishedlegalsystem.
• Skilledlabourforce.
• ManylargeminespermiNed:Escondida,Andacollo,CerroCasale.
*PPIorPolicyPercep]onIndex:measuresuncertain]essurroundingadministra]onofcurrentregula]ons,environmentalregula]ons,legalsystemsandtaxa]onregimes,infrastructure,labourandskillsavailability,andsecurityissues.Source:FraserIns]tute2014&ExeterResourceCorp.
Chartincludestop60outof122jurisdic$ons.
0 10 20 30 40 50 60 70 80 90 100
MaliGuyana
RioNegroLiberiaMexico
ThailandZambia
FijiPeru
CatamarcaTanzaniaCaliforniaMoroccoGhana
UruguayMontanaVictoria
JujuyBri$shColumbia
NewMexicoPortugalFranceNWT
NunavutBurkinaFasoNewZealand
MichiganQueenslandGreenland
NewSWalesIdaho
SanJuanNorthernTerritory
TasmaniaYukon
ColoradoArizonaAlaskaChile
OntarioNamibia
SouthAustraliaNorway
SaltaMinnesota
NevadaUtah
BotswanaQuebec
NovaSco$aWesternAustralia
ManitobaWyoming
Newfdlnd&LabrSaskatchewanNewBrunswick
SwedenAlbertaFinlandIreland
Caspiche-StrategicallyLocated
7!
PortandDesalina]onFacili]es
CardonesPowerSubsta]on
-2X500kVexpansionin2017
CandelariaMine
CopiapoAirport
Caspiche
MaricungaMine
CerroCasale
Exeter’sPeñasBlancasgroundwaterdiscovery
min400L/s
AguasChañar-Industrialwater
LundinPuntaPadrones500L/s
CapMineraPuntaTotoralillo200L/sexpandableto600L/s
LaCoipaMine
50KmAllweatheraccessroadExis]ngpowercooridor3rdpartypipelineroutePoten]alwaterpipelineroute CaseronesMine
PaipoteCuSmelter
3rdpartygroundwaterrights
Volcan
MarteLobo
CerroMaricunga
Esperanza
Material Class Tonnes(Mt) Au(g/t) Cu(%) Ag(g/t) AuEq1(g/t) AuEq2(Moz)
Oxide Measured 65.9 0.46 - 1.55 0.46 1.0
Oxide Indicated 55.6 0.39 - 1.63 0.40 0.7
TotalOxide M&I 121.5 0.43 - 1.58 0.43 1.7
Sulphide Measured 554.2 0.58 0.23 1.16 1.02 18.3
Sulphide Indicated 727.9 0.48 0.18 1.17 0.84 19.6
TotalSulphide M&I 1,282.1 0.52 0.20 1.17 0.92 37.9
TotalM&I 1,403.6 0.51 0.19 1.20 0.88 39.6
MineralResources
8!
*TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized. 1
PAuandPCuaretheAuandCuprices(US$1,150/ozandUS$2.50/lb,respec$vely),andRAuandRCuaretheAuandCuprojectedmetallurgicalrecoveries,65%and85%,respec$velyforsulphidematerialand78%forAuoxidematerial.2 AuEq (M oz) = resource tonnes * AuEq13PAu,PAgandPCuarethegold,silverandcopperprices(1,250US$/oz,15US$/oz.and2.75US$/lb,respec$vely).RAuandRCuaretheAuandCuprojectedmetallurgicalrecoveriesbasedonanumberofS%thresholds.Foraddi$onalinforma$onseeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec$vedateApril30,2014.
Material Class Tonnes(Mt) Au(g/t) Cu(%) Ag(g/t) AuEq3(g/t)Sulphide Measured 378.6 0.71 0.30 1.30 1.28
Sulphide Indicated 431.6 0.64 0.27 1.40 1.16
TotalSulphide M&I 810.2 0.67 0.29 1.35 1.22
Theoxideandsulphidematerialswerereportedabovecut-offsof0.18g/tAuEqand0.30g/tAuEq,respec$vely:
MineralResourcesundergroundopera$oncut-offgradeof0.75g/tAuEq3:
TheApril2012MineralResourceformedthebasisforthe2014PEA
[ ] [ ] [ ] [ ][ ]
[ ][ ] [ ] [ ] [ ]
[ ][ ][ ]⎟
⎟⎠
⎞⎜⎜⎝
⎛•⎟⎟⎠
⎞⎜⎜⎝
⎛•+•⋅•⎟⎟
⎠
⎞⎜⎜⎝
⎛•⎟⎟⎠
⎞⎜⎜⎝
⎛•+=
%%
/$/$
/000,10/06857.0%%
/$/$%//
Au
Ag
Au
Ag
Au
Cu
Au
Cu
RR
ozPozP
tgAgozlbgRR
ozPlbPCutgAutgAuEq
[ ] [ ] [ ] [ ][ ]
[ ][ ] [ ] [ ] [ ]
[ ][ ][ ]⎟
⎟⎠
⎞⎜⎜⎝
⎛•⎟⎟⎠
⎞⎜⎜⎝
⎛•+•⋅•⎟⎟
⎠
⎞⎜⎜⎝
⎛•⎟⎟⎠
⎞⎜⎜⎝
⎛•+=
%%
/$/$
/000,10/06857.0%%
/$/$%//
Au
Ag
Au
Ag
Au
Cu
Au
Cu
RR
ozPozP
tgAgozlbgRR
ozPlbPCutgAutgAuEq
9!
EXETERCaspiche:CrossSecMon-GoldValues
BARRICK-KINROSSCerroCasale:CrossSecMon-GoldValues
CaspicheNotJustBig–ScaleableOp$onsCaspichenearsurfacegoldoxide,cohesivehighergradegold-coppercore.
CaspicheLevelPlanGoldValues
10!
1640feet(500m)
985feet(300m)
HigherGradeCore
DioritePorphyry
500m(1640feet)
300m(985feet)
HigherGradeCoreislargeinscale
DioritePorphyry
Aug/t
Aug/t
HigherGradecore510Mtgrading
0.80g/tAu,0.33%Cuhos]ng23.5MozAuEq1
1using1g/tAuEqcutoff,SeeMineralResourcesslideandExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.
RecentDevelopmentOp$ons1forCaspiche
11!
Op$on2and3:CombinedOxideGold/SulphideGold-Copper
-LowcostPitextension/HighergradeUGcore-Lowini$alcapexwithaddi$onalcapitaldeferredandsupplementedbycashflow-Compellingeconomics-LOMAuEqproduc$on4.9to14.1millionoz
Op$on1:StandaloneHeapLeachOxideGold
-M&IResources*1.7millionozAuEq-LowCapex-LowStripra$o0.27:1-FavorableLeachKine$cs
FocusingonhighergradeandlowerCAPEX,u$lizingcashflowtofinancefutureCAPEX.
Thinkingbignowmeansstar]ngsmaller…
*RefertotheMineralResourcesslidefordetails.1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.The2014PreliminaryEconomicAssessmentusesadiscountrateof5%andcommoditypricesofUS$1,300/ozAu,US$20/ozAg,andUS$3.00/lbCu.
OpMon1: OpMon2: OpMon3:
Item Unit 30,000tpdstandaloneoxide
Combined:60,000tpdoxide;27,000tpdSulphide(openpit)commencinginyear6
Combined:60,000tpdoxide;27,000tpdSulphide(underground)
commencinginyear3Minelife years 10 18 42AnnualaverageAuEq*Prod. oz 122,000 289,000 344,000LOMProduc$onAuEq ozM 1.27 4.9 14.2Pre-taxNPV@5% US$M 355 967 1,636IRR % 34.7% 27.2% 20.0%PaybackPeriod years 3.4 6.1 7.7Aker-tax27%NPV@5% US$M 252 656 1,144 IRR % 28.5% 21.1% 16.7% PaybackPeriod years 3.6 6.8 8.1 CapexSummaryIniMalCapex US$M 251 371 387LOMSustainingCapex US$M 93 926 1,580TotalCapex US$M 343 1,297 1,967CapitalU$liza$onperAuEq*oz US$ 270 264 139OpexSummaryUnitTotalOpexProcessed US$/t 6.5 9.4 20.1CashCostCashCost-AuEq US$/oz 546 486 649TotalCashCost-AuEq* US$/oz 589 551 709
AllinSustainingCashcostAuEq* US$/oz 676 752 828
C1CashCost-CuEq* US$/lb n/a 1.31 1.77
Threeop$onsforthedevelopmentofCaspiche
12!
1.The2014PreliminaryEconomicAssessmentusesadiscountrateof5%andcommoditypricesofUS$1300/ozAu,US$20/ozAg,andUS$3.00/lbCu.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.*Goldequivalent(AuEq)valueisbasedongold,silverandcopperrevenues(pricesandrecoveriesinvolved).AuEq[troyoz]=[Aug/t*RecAu*throughputtonnes]/31.1+[Agg/t*RecAg*throughputtonnes]/31.1*silverpricetroyoz/goldpricetroyoz+[[Cu%*RecCu*throughputtonnes]*2204]*copperpricelbs/goldpricetroyoz.RecoveriesareadjustedbasedonmetallurgicalcharacterisUcoftheresource.ForResourceesUmaUonsassumedpricesare$1250/ozAu,$15/ozAgand$2.75/lbforCu.CuEqformulaaccountsforAuandAgozconvertedtolbsCu.
30,000tpdstandaloneheapleachgoldopera$on
• 122,000ozAuEq*peryear• 10yearminelife
• Pre-taxNPV5%ofUS$355million,IRRof34.7%.
• TotalcashcostsUS$589perozAuEq*
• Ini$alCAPEXUS$210million(plusUS$41millioncon$ngency)
• Peakwaterrequirementis44litrespersecond.
Op$on11:30,000tpdHeapLeachGoldOpera$on
13!
ValueGeneralParameters
PlantfeedEst(Tonnes&Grade)(oxide) M&I:[email protected]/tAu&1.62g/tAg
ContainedAuEq 1.6millionounces
Throughput 30,000tpd
MineLife 10yearsStripRa$o(Waste:Ore) 0.27:1GoldRecoveries 80%SilverRecoveries 40%
ProducMonAvg.AnnualAuEqProduc$on 122,000ozAnnualAuEqProduc$on(year1-5)(ounces) 148,000ozLOMAuEqProduc$on 1.27millionoz
CapitalCostsIni$alCapital(incl.Con$ngencyofUS$41M) US$251millionSustainingCapital US$93million
CashCostsTotalCashCosts US$589/ozAllinSustainingCashCost US$676/oz
GoldPriceAssumpMon US$1300/ozValuaMon(aker-tax27%)
NPV(5%) US$252millionIRR 28.5%PaybackPeriod 3.6years
ValuaMon(before-tax)NPV(5%) US$355millionIRR 34.7%PaybackPeriod 3.4years
Nearsurface,lowcapex,lowstrip,withfavorableleachkine]cs
*RefertotheMineralResourcesslidefordetails.1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.2Basecaseassumesa5%discountratewithcommoditypricesofUS$1,300/ozAuandUS$20/ozAg.
TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.
Project LaIndia Amulsar CoffeeCerro
MaricungaElCasMllo Bombore Karma Caspiche1
Company AgnicoEagle Lydian KaminakAtacamaPacific
Argonaut Orezone TrueGold Exeter
Loca$on Mexico Armenia Yukon Chile Mexico BurkinaFaso BurkinaFaso Chile
MarketCap($M) $10,103.18 $49 $161 $20 $194 $33 $126 $60
CashonHand($M) $281 $13 $29 $1 $61 $7 $29 $22
EV($M) $11,495 $36 $132 $19 $136 $26 $97 $38
Reserves/Resources(tonnes&Augrade)
P&P:[email protected]/t
P&P:[email protected]/t
P&P:[email protected]/t
P&P:[email protected]/t
P&P:[email protected]/t
P&P:[email protected]/t
P&P:[email protected]/t
M&I:[email protected]/t
AuEqOunces 0.76Moz 2.5Moz 2.2Moz 3.7Moz 1.2Moz 1.5Moz 0.9Moz 1.7Moz
MineLife(years) 7 10 10 13 11 11 9 10
Throughput(tpd) 16,000 27,000 92,000 80,000 35,000 15,000 11,000 30,000
AuEqProduc$on(oz/yr) 90,000 205,000 1184,00000 228,000 85,000 116,000 92,000 122,000
CAPEX(ini$al)(US$M) $158 $420 $247 $399 n/a $250 $132 $251
GoldPrice(US$/oz) $1,379/oz $1,250/oz $1,150/oz $1,350/oz $1,000/oz $1,250/oz $1,250/oz $1,250/oz
NPV5%(azer-tax)(US$M) $207 $347 $355 $409 $257 $196 $199 $243
IRR(azer-tax) 31% 22% 37% 25% n/a 24% 46% 27%
TotalCashCosts(US$/oz) $426/oz $664/oz $481/oz $864/oz $628/oz $603/oz $630/oz $589/oz
StripRa$o 1.00 2.60 5.70 1.76 0.90 1.07 2.43 0.27
CrushSize(inches) 0.98 0.47 2.00 0.75 0.74 0.008 2.00 1.96
GoldRecoveryRate(%) 80% 84% 86% 79% 70% 87% 87% 80%
ComparableOxideGoldHeapLeachProjects
14!
1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.20%taxrateusedasacompara]ve.2SharepricesasofFebruary10,2016;financialsasofSeptember30orDecember31,2015asreported.AllamountsinC$unlessstatedasUS$.
FinalOxideMetallurgicalTestwork
15!
• Recently completed metallurgical test work suggests previously es$mated heap leachrecoveriesofapproximately80%,usedinthe2014PEA1,areconserva$ve.
• Confidencelevelsapproachingfinalfeasibilityrequirements.
• Most important,high recoveries in thefirst six yearsof themineplanalso correspondswiththehighestgradesinthemineplan.
• Metallurgicalprojec$onses$mateheapleachcyanideconsump$onsaveragingabout0.4kg/tonne.
• Poten$al:Higherprojectvalue,fasterpayback,greaterconfidence.
1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.Foraddi]onalinforma]onrefertoExeternewsreleaseNovember12,2014.
FeedSize HeadGrade ExtracMon Reagents
Composite P80mm g/tAu g/tAg %Au %Ag kg/tNaCN kg/tLime
MineralizedGravel -38 0.74 7.6 78.4 32.9 1.27 2.6
Years1&2(1test) -50 0.66 1.1 93.9 90.9 1.25 4.8
Years3&4 -50 0.81 1.4 87.7 62.5 1.29 4.8
Years5&6 -50 0.33 0.9 84.6 50.0 1.06 6.0
Years7&8 -50 0.37 0.8 78.4 38.1 0.97 4.7
Years9&10 -50 0.63 0.4 79.2 50.0 0.82 3.2
Othermaterial -50 0.47 2.1 83.0 57.1 0.89 5.0
OpMon1: OpMon2: OpMon3:
Item Unit 30,000tpdstandaloneoxide
Combined:60,000tpdoxide;27,000tpdSulphide(openpit)commencinginyear6
Combined:60,000tpdoxide;27,000tpdSulphide(underground)
commencinginyear3Minelife years 10 18 42AnnualaverageAuEq*Prod. oz 122,000 289,000 344,000LOMProduc$onAuEq ozM 1.27 4.9 14.2Pre-taxNPV@5% US$M 355 967 1,636IRR % 34.7% 27.2% 20.0%PaybackPeriod years 3.4 6.1 7.7Aker-tax27%NPV@5% US$M 252 656 1,144 IRR % 28.5% 21.1% 16.7% PaybackPeriod years 3.6 6.8 8.1 CapexSummaryIniMalCapex US$M 251 371 387LOMSustainingCapex US$M 93 926 1,580TotalCapex US$M 343 1,297 1,967CapitalU$liza$onperAuEq*oz US$ 270 264 139OpexSummaryUnitTotalOpexProcessed US$/t 6.5 9.4 20.1CashCostCashCost-AuEq US$/oz 546 486 649TotalCashCost-AuEq* US$/oz 589 551 709
AllinSustainingCashcostAuEq* US$/oz 676 752 828
C1CashCost-CuEq* US$/lb n/a 1.31 1.77
Threeop$onsforthedevelopmentofCaspiche
16!
1.The2014PreliminaryEconomicAssessmentusesadiscountrateof5%andcommoditypricesofUS$1300/ozAu,US$20/ozAg,andUS$3.00/lbCu.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.*Goldequivalent(AuEq)valueisbasedongold,silverandcopperrevenues(pricesandrecoveriesinvolved).AuEq[troyoz]=[Aug/t*RecAu*throughputtonnes]/31.1+[Agg/t*RecAg*throughputtonnes]/31.1*silverpricetroyoz/goldpricetroyoz+[[Cu%*RecCu*throughputtonnes]*2204]*copperpricelbs/goldpricetroyoz.RecoveriesareadjustedbasedonmetallurgicalcharacterisUcoftheresource.ForResourceesUmaUonsassumedpricesare$1250/ozAu,$15/ozAgand$2.75/lbforCu.CuEqformulaaccountsforAuandAgozconvertedtolbsCu.
60,000tpdopenpitheapleachgold27,000tpdopenpitAuCu(year6)• Average289,000ozAuEq*or125
MCuEqlbperyear• 18yearminelife• LOMProduc$on4.9MozEq*• TotalcashcostofUS$551peroz
AuEq*
• Ini$alCAPEXUS$375million• Sustainingandclosurecostsare
es$matedatUS$924million• Pre-taxNPV5%ofUS$967million
andanIRRof27.2%
• Peakwaterrequirementis185litrespersecond.
Op$on21:HeapLeachGoldtoOpenPitGoldCopperOpera$on
17!
ValueGeneralParameters
PlantfeedEst(Tonnes&Grade)(oxide) M&I:[email protected]/tAu&1.54g/tAgPlantfeedEst(Tonnes&Grade)(Sulphide) M&I:[email protected]/tAu&0.27%CuLOMOpera$ngCost US$/t14.4“ore”Throughput 60,000tpd(oxide);27,000tpd(sulphide)MineLife 18yearsStripRa$o(Waste:Ore) 1:1GoldRecoveries 80%(oxide);75%(sulphide)CopperRecoveries 89%(sulphide)
ProducMonAvg.AnnualAuEqProduc$on 289,000ozAvg.AnnualCuEqProduc$on 125millionlbsLOMAuEqProduc$on 4.9millionoz
CapitalCostsIni$alCapital(Incl.Con$ngency) US$371millionAddi$onalCAPEX(incl.sustainingandclosure) US$926million
CashCostsTotalCashCosts US$551/ozAllinSustainingCashCost US$752/ozC1CashCost US$1.31/lb
GoldPriceAssumpMon US$1300/ozValuaMon(aker-tax27%)
NPV(5%) US$656millionIRR 21.1%PaybackPeriod 6.8years
ValuaMon(before-tax)NPV(5%) US$967millionIRR 27.2%PaybackPeriod 6.1years
Acceleratedheapleach;extendedAuCusulphideopenpit
*RefertoCompleteMineralResourcesslideintheAppendixfordetails.1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.2Basecaseassumesa5%discountratewithcommoditypricesofUS$1,300/ozAu,US$3.00/lbCu,andUS$20/ozAg.
TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.
StagedDevelopment-CapitalAdvantage
18!1.Capitalrequirementsfundedfromcashflowwerecalculatedusinga20%taxrate,US$1,300/ozAu,US$3.00/lbCu,andUS$20/ozAg.
60,000tpdopenpitheapleachgold27,000tpdundergroundgoldcopper(year3)
• Average344,000ozAuEq*or147MlbCuEqperyear
• 42yearminelife
• TotalcashcostsUS$709perozAuEq*
• Ini$alCAPEXUS$387million
• SustainingcapitalUS$1.58billion
• Pre-taxNPV5%ofUS$1.64billion,IRRof20.0%
• Peakwaterrequirementis151litrespersecond
• Lowerimpactenvironmentally.
Op$on31:HeapLeachGoldtoUndergroundHGGoldCopper
19!
ValueGeneralParameters
PlantfeedEst(Tonnes&Grade)(oxide) M&I:[email protected]/tAu&1.62g/tAgPlantfeedEst(Tonnes&Grade)(Sulphide) M&I:[email protected]/tAu&0.35%CuLOMOpera$ngCost US$/t30.1“ore”Throughput 60,000tpd(oxide);27,000tpd(sulphide)MineLife 42yearsStripRa$o(Waste:Ore) 0.27(oxide);n/a(sulphide)GoldRecoveries 80%(oxide);77%(sulphide)CopperRecoveries 90%(sulphide)
ProducMonAvg.AnnualAuEqProduc$on 344,000ozAvg.AnnualCuEqProduc$on 147millionlbsLOMAuEqProduc$on 14.2millionoz
CapitalCostsIni$alCapital(incl.Con$ngency) US$387millionAddi$onalCAPEX(incl.sustainingandclosure) US$1.58billion
CashCostsTotalCashCosts US$709/ozAllinSustainingCashCost US$828/ozC1CashCost US$1.77/lb
GoldPriceAssumpMon US$1300/ozValuaMon(aker-tax27%)
NPV(5%) US$1.144billionIRR 16.7%PaybackPeriod 8.1years
ValuaMon(before-tax)NPV(5%) US$1.636billionIRR 20.0%PaybackPeriod 7.7years
Acceleratedheapleach;transi]oningtoundergroundgoldcoppersulphideopera]on
*SeeMineralResourceslidefordetails.1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.2Basecaseassumesa5%discountratewithcommoditypricesofUS$1,300/ozAu,US$3.00/lbCu,andUS$20/ozAg.
TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.
StagedDevelopment-CapitalAdvantage
20!1.Capitalrequirementsfundedfromcashflowwerecalculatedusinga20%taxrate,US$1,300/ozAu,US$3.00/lbCu,andUS$20/ozAg.
21!
“BefearfulwhenothersaregreedyBegreedywhenothersarefearful”WarrenBuffet
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
01/0
1/19
83
01/0
8/19
84
01/0
3/19
86
01/1
0/19
87
01/0
5/19
89
01/1
2/19
90
01/0
7/19
92
01/0
2/19
94
01/0
9/19
95
01/0
4/19
97
01/1
1/19
98
01/0
6/20
00
07/1
2/20
01
30/0
6/20
03
31/0
1/20
05
31/0
8/20
06
31/0
3/20
08
30/1
0/20
09
31/0
5/20
11
31/1
2/20
12
31/0
7/20
14
31/1
2/20
15
VSE Index CDNX Index TSX-V Index
SmallCapMiningRalliesandCorrec$ons
22!TSX-VIndexValuestoDecember31,2015.Source:CanaccordGenuityCorp.&ExeterResourceCorp.
VSE Index CDNX Index S&P/TSX Venture Exchange Index
-45%
-75%
-40%
-73%
-34%
-78%
- 79%
+ 65%
+ 21% + 91%
+ 23%
+ 88%
+ 84%
+257% +252%
HUIGoldIndex
23!
GoldEquityPricesboNomed?
Source:www.bigcharts.com.
US$IndexandGoldPrice
24!Source:FederalReserveBankofSt.Louis.
RecentlyConverging
US$IndexTrend
25!Source:828cloud.worldpress.com.
ArizonaStarsharepriceperformance
26!Source:ExeterResourceCorpora]on.
ArizonaStar (controlled50%ofCerroCasale) shareprice sufferedbadlypostdiscoveryphaseandwith thedownturnofthebullionpriceinthelate1990’sandearly2000’s.Star]ngin2002,withanewrisingtrendinbullionitssharepriceappreciatedfromC$0.50toitstakeovervalueofC$17.95pershare,or$805million.
250
350
450
550
600
TrendingGoldPriceUS$
GoldEquivalentResourcestoMktCap
27!
1SeeMineralResourcesslideandExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.*GoldEquivMoz(AuEq)Resourcetonnes*[Aug/t+{Cu%*Cupricelbs/AuPricetroyoz*0.06857glb/oz*10000}+Agg/t*Agpricetroyoz/Aupricetroyoz]Novagold*50%shareofDonlinandGalore.Reservoir**45%interestassumed.PricingasofFebruary10,2016.
MassivelyUndervaluedGoldResources
UndevelopedGoldandGold-CopperProjects
28!
1SeeMineralResourcesslideandExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.Goldequivalent(AuEq)AuEqg/t=Aug/t+(Cu%*Cupricelbs/AuPricetroyoz*0.06857glb/oz*10000)+Agg/t*Agpricetroyoz/Aupricetroyoz.IncludesP&PReservesandM&ImineralResources.Reflects%interestinprojectofoutlinedcompanies.*Caspichesulphideat0.30g/t,0.75g/tand1.0g/tAuEqcutoff.
Basedonmajority%interest
Novagold50%
Barrick75%
Gabriel80.7%Goldcorp50%
Reservoir45%
EXETER100%
Exeter-largeandaboveaveragegrade
LargeDepositsareRare
29!Source:USGlobalResearch.
+3millionouncediscoveriesarescarce
LeveragetoGold
30!
1SeeMineralResourcesslideandExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.PricingasofFebruary10,2016.
Appendix
Sensi$vity-Op$on1
32!
GoldVariability
Sensitivity 30k t/d Heap Leach Open Pit
Item Unit Value Item Unit Value
Pre-tax US$1,100/oz Au After-tax (27% Tax Rate) US$1,100/oz Au
NPV @ 5% US$ M 177 NPV @ 5% US$ M 120 IRR % 21.1% IRR % 17.2%
Payback Period years 4.0 Payback Period years 4.0
Pre-tax US$1,300/oz Au After-tax (27% Tax Rate) US$1,300/oz Au
NPV @ 5% Discount rate US$ M 355 NPV @ 5% US$ M 252 IRR % 34.7% IRR % 28.5%
Payback Period years 3.4 Payback Period years 3.6
Pre-tax US$1,500/oz Au After-tax (27% Tax Rate) US$1,500/oz Au
NPV @ 5% US$ M 533 NPV @ 5% US$ M 381 IRR % 47.3% IRR % 38.6%
Payback Period years 2.9 Payback Period years 3.1
30,000tpdstandaloneheapleachopera]on
1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.2Basecaseassumesa5%discountratewithcommoditypricesofUS$1,300/ozAu,US$3.00/lbCu,andUS$20/ozAg.
Basedon2013/14costs• higherinputcosts–fuel,consumables,power,etc• unfavorableChileanPesoexchange• op]mizedMetworknotincluded
Capex,Opex–Op$on1,2014PEA
33!
OP Opex Unit Value Crushing US$/t 0.26 Leaching US$/t 2.35
ADR US$/t 0.17 Reagents Plant US$/t 0.03
G&A US$/t 0.42 Power Supply US$/t 0.02 Water Supply US$/t 0.12
Total US$/t 3.36
OP Mine Opex Unit Unit Cost Loading US$/t 0.44 Hauling US$/t 0.64 Drilling US$/t 0.15 Blasting US$/t 0.32 Ancillary US$/t 0.21 Support US$/t 0.10
Eng. & Adm US$/t 0.19 Pit Dewatering US$/t 0.00
Labour US$/t 0.68 Leasing US$/t 0.40
Total US$/t 3.13
Open Pit Mining - Costs per tonne of material processed
Area Initial Sustaining Total US$ M US$ M US$ M
Mine Direct & Indirect Costs 36 6 42
Pre-stripping 13 0 13 Dispatch 1 0 2
Other Investments 9 4 12 Leasing 13 2 15
Oxide Plant Direct Costs 120 58 178
Crushing 16 0 16 Leaching 29 58 87
ADR 12 0 12 Reagents 1 0 1
Infrastructure 16 0 16 Power supply 3 0 3 Water supply 43 0 43
Plant Indirect Cost 54 11 65
Contingency 41 18 59
Mine 6 1 7 Plant 35 17 52
Total Cost 251 93 344
Some rows and columns may not sum due to rounding
30,000tpdstandaloneheapleachopera]on
1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.2Basecaseassumesa5%discountratewithcommoditypricesofUS$1,300/ozAu,US$3.00/lbCu,andUS$20/ozAg.
Costs per tonne of material processed
Sensi$vity–M&IMineralResources
34!
Gold–Coppersulphidemineraliza]on-highergradezone
1SeeMineralResourcesslideandExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.
AuEq Cut-off Mt Au (g/t) Ag (g/t) Cu (%) AuEq6 (g/t) Au Moz Cu Mlbs AuEq Moz
0.60 1,063.2 0.60 1.26 0.26 1.09 20.5 6094.3 37.3
0.65 974.8 0.62 1.29 0.27 1.13 19.4 5802.5 35.4
0.70 891.4 0.65 1.32 0.28 1.18 18.6 5502.2 33.8
0.75 813.7 0.67 1.35 0.29 1.22 17.5 5,202.4 31.9
0.80 742.2 0.70 1.37 0.29 1.26 16.7 4745.3 30.1
0.85 675.6 0.72 1.39 0.30 1.31 15.6 4468.3 28.5
0.90 612.7 0.75 1.41 0.31 1.35 14.8 4187.4 26.6
0.95 558.7 0.77 1.43 0.32 1.39 13.8 3941.8 25.0
1.00 510.1 0.80 1.45 0.33 1.43 13.1 3710.8 23.5
1.05 462.2 0.82 1.48 0.34 1.47 12.2 3464.7 21.8
1.10 415.4 0.85 1.50 0.35 1.52 11.4 3205.6 20.3
1.15 375.1 0.87 1.51 0.36 1.56 10.5 2977.1 18.8
1.20 342.2 0.89 1.53 0.37 1.60 9.8 2791.7 17.6
1.25 311.4 0.92 1.56 0.38 1.63 9.2 2608.3 16.3
1.30 281.9 0.94 1.59 0.38 1.67 8.5 2361.3 15.1
1.35 253.8 0.96 1.63 0.39 1.71 7.8 2182.0 14.0
1.40 226.7 0.99 1.66 0.40 1.75 7.2 1998.9 12.8
1.45 198.7 1.02 1.69 0.40 1.79 6.5 1752.3 11.4
1.50 177.1 1.05 1.71 0.41 1.83 6.0 1600.3 10.4
WendellZerb,P.Geol,President&CEO(29yearsexperience)Mr.Zerbhasextensiveexperienceinthemining/mineralresourcesector.Histechnicalexperienceincludesseniorposi$onsingenera$vemineralexplora$on,development,andopenpitandundergroundminingofbaseandpreciousmetals.Inthecapitalmarkets,Mr.ZerbhaspreviouslyservedasDirector,ResearchAnalyst,MetalsandMining(CanaccordGenuityInc.),VicePresidentofResearchandIns$tu$onalSales,andPresidentandCEOofawhollyownedUSsubsidiary(PIFinancial).
CecilBond,CA,ChiefFinancialOfficer(30yearsexperience)Mr.Bondhasservedvariousposi$onsinanumberofpublicexplora$oncompanieswithac$vi$esinCanada,SouthAmerica,Africa,EuropeandAustralia.Throughouthiscareer,Mr.Bondhasmanaged$700millionintransac$ons,includingthesaleofExtorreGoldMinesLtd.toYamanaGoldin2012azersuccessfullyspinningitoutofExeterin2010.
JerryPerkins,VPDevelopmentandOpera$ons(40yearsexperience)Mr.Perkinsisachemicalengineerwithover40years’experienceintheminingandmetallurgysectorintechnical,opera$onalandcorporatemanagementposi$onsinNSW,Queensland,Tasmania,Australia,Africa,theUK,andPapuaNewGuinea.Mr.Perkinsspecializesinmineralprojectdevelopmentprogramsandfeasibilitystudies,mineproduc$onandcommissioning,testwork/R&Dprograms,engineeringandprocessdesign,opera$onsmanagement,andprojectdevelopmentandop$miza$on.
RobGrey,VPCorporateCommunica$ons(17yearsexperience)Mr.GreyisaBusinessgraduatewith10yearsexperienceinequitysalesand17yearsexperienceinInvestorRela$onsinthejuniorminingsector.Mr.Greyworksdirectlywithseniormanagement,andinvestorsattheins$tu$onalandretailslevels.
MaNhewWilliams,BAScinAppliedGeology,Explora$onManager-South&NorthAmerica(24yearsexperience)Mr.Williamshasmorethan22yearsofexperienceinmineralexplora$on,specializingingeologicalappraisalofbaseandgoldmetalminingprojectsinAustralia,theDominicanRepublic,W.A.,Australia,Mexico,Nevada,USA,Panama,Argen$na,andChile.Mr.WilliamsservedasExplora$onManageroftheDonSixtoProject,CerroMoro,andearlyac$vi$esatCaspiche.
GonzaloDamond,CommercialManager(21yearsexperience)Mr.DamondisanIndustrial/Electrical/CivilEngineerwithopera$onalandmanagerialexperiencewithinsignificantmul$na$onalcompanies,includingraillogis$csbetweenArgen$naandBrazil,andintermodalopera$onsforChileanports.Hehasmanagedthedesign,organiza$onandcommissioningoflargedistribu$oncenters,andhassubstan$alexperienceinpurchasemanagement,includingthenego$a$onofsupplycontracts.Throughtheseexperiences,Mr.Damondhasbuiltconstruc$verela$onshipswithcommuni$es,clients,tradeunionsandGovernmentauthori$es.
MaNhewDorman,CaspicheStudyManager(29yearsexperience)Mr.Dormanisaprojectmanagerwithover29yearsofinterna$onalexperienceintheminingsector,specializingintechnicalduediligencestudies.Mr.Dormanhasalsomanagedthedesignandconstruc$onofgoldminesinUzbekistan,Tajikistan,SaudiArabia,UruguayandHonduras,andofcopperprojectsinChile,Peru,andKazakhstan.
Management
35!
Drivingfuturesuccesswithexperience
BryceRoxburgh,AusIMMCo-Chairman(41yearsexperience)Managedtheexplora$onteamsthatdiscoveredtheSelwyn,RedDomeandJunc$onReefore-bodiesinAustralia,theDinkidiore-bodyinthePhilippines,andtheDonSixtodepositinArgen$na.HeestablishedExeterin2003andsubsequentlydiscoveredCaspicheinChileandCerroMoro(ExtorreGoldMinesLtd.)inArgen$na.
YaleSimpson,Co-Chairman(41yearsexperience)Anexperienced,seniorgeologist,explora$onmanagerandCEOofcompaniesinvolvedinpreciousmetalsprojectsinAustralia,Africa,EasternEuropeandSouthAmericawithpar$cularexper$seinstrategicresourceplanning,financingandcorporatecommunica$ons.
RobertG.Reynolds,CA(32yearsexperience)Servedinvariousposi$onsresponsibleforcorporateplanning,financeandadministra$on.Mr.Reynoldspar$cipatedinthedevelopmentoftheGrannySmithandKanownaBelleminesinAustralia,andtheHartleyPla$numMineinZimbabwe.Mr.ReynoldsalsoservedasChairmanofAvocaResourcesLtd.un$litsmergerwithAnatoliaMineralsDevelopmentLtd.in2011.
JulianBavin,BSc,MSc(32yearsexperience)Gainedtechnical,opera$onandcommercialexperienceinmineralexplora$oninSouthAmerica,Australia,Indonesia,andEuropethroughhisexperiencewiththeRioTintoGroup.From2001to2009,Mr.Baviniden$fiedthepoten$alinarangeofprojectsincludingthePRCpotashandAltarcopper/goldprojectsinArgen$na,theMinaJusta,ConstanciaandLaGranjacopperprojectsinPeru,andtheAmargosabauxiteprojectinBrazil.
JohnSimmons,CA(42yearsexperience)Con$nuestomanageanaccoun$ngprac$ceinAustralia,whereMr.Simmonshasextensiveexperienceadvisingontaxa$on,strategicplanning,financialmanagementandgeneralbusiness.Hemaintainsanac$veinvolvementintheminingindustrythoughassocia$onwithanopera$ngminingcompany.
BoardofDirectors
36!
Astrongfounda]on
“Developmentop]onsatCaspiche,whethermodestorlargerscale,deliverstrongeconomicreturnsatcurrentmetalprices.Ourabilityintoday’smarkettofocusonadvancingthe1.7millionouncegoldoxideopenpitissensibleandachievable.Importantlyforshareholders,
withfutureelevatedgoldandcoppermarkets,webelievethevalueoftheverylargeCaspichegold-copperinventorywillbeastrongvaluedriverforExeter.Caspicheisunique,represen]ngoneofonlyafewscalabledevelopmentprojectsthatisnotyetcontrolledbya
majorcompany.”Co-ChairmanofExeter,YaleSimpson.