Advanced Stage Zinc Exploration in Ireland March 2018 Important - - PowerPoint PPT Presentation

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Advanced Stage Zinc Exploration in Ireland March 2018 Important - - PowerPoint PPT Presentation

RESOURCES CORP. Advanced Stage Zinc Exploration in Ireland March 2018 Important Notice This Presentation is given by Group Eleven Resources Corp. (the Company), incorporation number BC1098004, registered office at 1050-400 Burrard Street,


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SLIDE 1

Advanced Stage Zinc Exploration in Ireland

RESOURCES CORP.

March 2018

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SLIDE 2

Important Notice

This Presentation is given by Group Eleven Resources Corp. (“the Company”), incorporation number BC1098004, registered office at 1050-400 Burrard Street, Vancouver, BC, Canada, V6C 1M2 and is made subject to the terms outlined below. No securities regulatory authority has expressed an opinion about the information contained in this Presentation and it is an offence to claim otherwise. This document and its contents may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or disclosed or published, in whole or in part, for any

  • purpose. This document is being provided for information purposes only and thus viewing, downloading, reproducing, copying or distributing this Presentation may be restricted by

law in certain jurisdictions. Except for statements of historical fact relating to the Company, certain statements in this Presentation may constitute forward-looking information, future oriented financial information, or financial outlooks (collectively, “forward-looking information”) within the meaning of Canadian securities laws. Forward-looking information may relate to this Presentation, Company’s future outlook and anticipated events or results and, in some cases, can be identified by terminology such as “may”, “will”, “expected”, “estimate”, “potential” or “possible” or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to commodity prices, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, the timing and amount of future production, the timing of construction of the proposed mine and process facilities, capital and operating expenditures, the timing of receipt of permits, rights and authorizations, and any and all other timing, development, operational, financial, economic, legal, regulatory and political factors that may influence future events or conditions, as such matters may be

  • applicable. In particular, this Presentation contains forward-looking statements pertaining to proposed expenditures for exploration work, and general and administrative expenses.

Such forward-looking statements are based on a number of material factors and assumptions, and include the ultimate determination of mineral reserves, if any, the availability and final receipt of required approvals, licenses and permits, sufficient working capital to develop and operate any proposed mine, access to adequate services and supplies, economic conditions, commodity prices, foreign currency exchange rates, interest rates, access to capital and debt markets and associated costs of funds, availability of a qualified work force, and the ultimate ability to mine, process and sell mineral products on economically favourable terms. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in this Presentation. The Company has no specific policies or procedures for updating forward-looking information. Forward-looking statements are based upon management’s beliefs, estimates and opinions on the date the statements are made and, other than as required by law, the Company does not intend, and undertakes no obligation to update any forward looking information to reflect, among other things, new information or future events. Potential investors are cautioned against placing undue reliance on forward-looking statements. This Presentation does not constitute investment advice or a recommendation regarding the securities of the Company or an offer or invitation to subscribe for securities of the Company or its affiliates. Scientific and technical information in this Presentation has been approved by John Barry, who is a qualified person for the purposes of National Instrument 43-101 and who is not independent of the Company. Scientific and technical information is derived from the technical reports entitled “NI 43-101 Independent Report on a Base Metal Exploration Project at Ballinalack, County Westmeath, Ireland” with an effective date of October 6, 2017, “NI 43-101 Independent Report on a Base Metal Exploration Project at Stonepark, County Limerick, Ireland” with an effective date of October 6, 2017, and “NI 43-101 Independent Report on a Base Metal Exploration Project at Silvermines, County Tipperary, Ireland” with an effective date of February 28, 2017, each of which was prepared for the Company by EuroGeol Dr. John G. Kelly, PGeo, MIMMM, MIQ and EuroGeol Paul Gordon, PGeo, MSc of SLR Consulting (Ireland) Ltd. in accordance with National Instrument 43-101. Complete copies of the technical reports are available for review, in colour, on the System for Electronic Document Analysis and Retrieval (SEDAR) located at the following website: www.sedar.com. 2

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SLIDE 3

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Ireland: one of the largest zinc producers in Europe and host to some of the world’s largest zinc deposits

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SLIDE 4

Vision and Highlights

Vision

  • Discover Ireland’s next big zinc mine

How do we get there / what makes us different? Big picture approach 

  • Large land position (largest in Ireland)
  • Excellent Team honed for task (thinking big, out-of-the-box)

Near-term catalysts 

  • Drill-ready targets
  • Resource definition potential

Strategic Shareholders

  • MAG Silver Corp. - 15.8% (basic) or 21.4% (fully diluted)
  • Teck Resources Ltd. – 5.6% (basic) and 4.3% (fully diluted)

4

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SLIDE 5

Capital Structure

5

Share Structure (Jan 2018) Owners Exercise Price (C$) Expiry Date Shares (msh) M.Cap (C$m) Cash (C$m) EV (C$m) Basic 59.8 $12.5 $4.5 $8.0 Options Directors $0.40 Feb-23 0.3 $0.1 Warrants MAG $0.21 Dec-19 3.4 $0.7 MAG $0.40 Dec-19 1.3 $0.5 IPO Agents $0.40 Jun-19 0.8 $0.3 IPO Investors $0.60 Dec-18 12.5 $7.5

  • F. Diluted

78.0 $16.4 $13.6 $2.8 Institutional Shareholders: Bromma | Commodity Discovery | Curvature | Front Street | Galileo | Logiq | Northfield | Premium Gold & Metal | Robinson- Sauter | Sprott Asset Management | U.S. Global Analyst Coverage: Sprott Capital Partners

Insider 15% MAG Silver 16% Teck 6% Retail 54% Instit 10%

Ownership (basic)

0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45

  • 0.2

0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 18-Dec-17 02-Jan-18 17-Jan-18 01-Feb-18 16-Feb-18 03-Mar-18 18-Mar-18 C$/Sh Trading Volume (msh) Volume Close

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SLIDE 6

On Trend, Near Deposits and Historic Mines

6

Source: modified from P. Tyler

G11 property Zinc deposit Zinc – small deposit

  • r major occurrence

Gortdrum(Cu,shut)

Silvermines Tralee Stonepark

PallasGreen(Glencore) Galmoy(Lundin,shut) Lisheen(Vedanta,shut) Tynagh(shut) Navan (Boliden) Silvermines(shut)

25 50 kilometres

Ballinalack

Ireland - Geology

  • Mississippi Valley Type (MVT) zinc deposits
  • Tend to be clean, easy to process, simple
  • Infrastructure rich – roads, power, tidewater
  • Rule of Thumb – 10mt at 10% Zn+Pb

(economic threshold) Ireland – Fraser Institute (2017)

  • No. 1 for ‘Policy Perception Index’
  • No. 4 for ‘Investment Attractiveness’
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SLIDE 7

Team – Experienced in Finding Mines, Building Companies

  • Extensive experience - exploring and developing

zinc deposits in Ireland and Europe

  • Home team advantage – three of four executives

based in Ireland

  • Making Discoveries – Juanicipio, Cinco de Mayo,

Duck Pond, Alligator Ridge, Esquel, Coffee Creek and others

  • Building companies – MAG Silver, Balmoral,

Excellon, Red Back, Rathdowney and others

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Board of Directors

▪ Dan MacInnis – Director, Chairman ▪ Bart Jaworski – Director, CEO ▪ Brendan Cahill – Director ▪ Alessandro Bitelli – Director, Chair of Audit Committee

Management

▪ Bart Jaworski – Chief Executive Officer ▪ John Barry – VP Exploration Strategy ▪ David Furlong – Chief Operating Officer ▪ Shaun Heinrichs – Chief Financial Officer

Technical Advisory Panel

▪ Peter Megaw ▪ Frank Hallam ▪ John Prochnau

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SLIDE 8

Ballinalack Project

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Navan-Style Potential Lies Beneath

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Historic Estimate with Upside Potential

9

Ownership

  • 60% G11 / 40% Zhongjin Lingnan Mining (HK) Company Limited (Nonfemet)

Strategic location

  • 50km west of Navan (largest deposit in Europe)

Historic estimate

  • 2nd largest undeveloped occurrence in Ireland
  • 7.7mt @ 7.3% (6.3% Zn + 1.0% Pb)* – historic (non 43-101 compliant; 1991)

Thick, high-grade intercepts

  • For example: 46m @ 16% Zn/Pb

History

  • 1970 - discovered (Syngenore)
  • 1991 - Feasibility study (Oliver Resources)
  • 2005 - Acquired by Teck
  • 2009 - Nonfemet paid Teck US$6.0m for 40% (implied valuation of US$15.0m)

Infrastructure

  • Dense network of local roads; nearby railway; 14.5km from Mullingar (20k pop.)

Metallurgy

  • Demonstrated to be amenable to conventional floatation (1991)

Database

  • 93,350m of drilling (63,950m historic and 29,400m by Teck)
  • 63 line km of 2D seismic surveys (and other geophysical/geochemical surveys)

Sunk cost

  • Over C$30 million (G11 estimate)

* The resource for Ballinalack predated and is unclassified and not compliant with NI 43-101

  • guidelines. Significant data compilation, re-drilling, re-

sampling and data verification may be required by a Qualified Person before the historic resource can be verified and upgraded to be compliant with current NI 43-101 standards. A Qualified Person has not yet undertaken sufficient work to classify the historic resource as a current resource and the Company is not treating the historic resource as a current resource.

Ballinalack

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SLIDE 10

Convergence of Two Faults

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* The resource for Ballinalack predated and is unclassified and not compliant with NI 43-101 guidelines. Significant data compilation, re-drilling, re-sampling and data verification may be required by a Qualified Person before the historic resource can be verified and upgraded to be compliant with current NI 43-101 standards. A Qualified Person has not yet undertaken sufficient work to classify the historic resource as a current resource and the Company is not treating the historic resource as a current resource.

Fault Historic drilling Seismic survey Property boundary Pale Beds (Navan) ABL (Ballysteen) Waulsortian Lmst WL WL PB ABL Legend

Ballinalack historic estimate*

Other cross-cutting fault zones thought to be prospective

Ballinalack

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SLIDE 11

Historic Focus on Waulsortian Limestone

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1.2m @ 16.9% 0.8m @ 10.7% 1.4m @ 20.4% 1.5m @ 6.9% 1.4m @ 11.9% 1.0m @ 3.5% Zn 34.4m @ 9.6% 19.9m @ 7.2% 5.3m @ 5.7% 1.5m @ 17.1% 1.5m @ 7.6% 9.1m @ 10.0% 1.5m @ 0.7% 45.6m @ 16.0% 24.4m @ 18.1% 24.4m @ 19.7% 10.7m @ 13.1% 4.6m @ 7.6%

Opportunity exists for resource expansion drilling and testing regional targets

Pale Beds (full test) Pale Beds (partial test) Waulsortian (full test) Waulsortian (partial test) No test (too shallow) Historic resource (1991) Fault zone Waulsortian limestone

1.5m @ 6.9%

Pale Bed intercepts

34.4m @ 9.6%

Waulsortian intercepts Legend (% = Zn + Pb)

Note: Historic drill results have not been verified by a Qualified Person as the samples forming the basis of such results are not available to the Company and accordingly no quality assurance programs or quality control measures were applied by the Company.

Ballinalack

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SLIDE 12

Pale Beds below Historic Estimate - Largely Ignored Historically

12 TARGET Pale Beds (micrite) Waulsortian Lmst

B113 B54 B125 B126 B58 0.7% Zn+Pb

  • ver 1.5m

Upper ABL / Calp Lmst Waulsortian Lmst ABL (Argillaceous Lmst) Fault Pale Beds (Upper, shaley) Pale Beds (Lower, micrite) Basal clastics Lower Paleozoics Zn grade (<0.1 – 24.4%) Drill hole trace Legend Hole ends off-section

Note: Historic drill results have not been verified by a Qualified Person as the samples forming the basis of such results are not available to the Company and accordingly no quality assurance programs or quality control measures were applied by the Company.

Priority focus will be on Pale Beds – which host Navan Deposit 50km east of Ballinalack – immediately below known deposit

Ballinalack

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Stonepark Project

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Using new seismic technology to find source of Pallas Green Trend

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Adjacent to Glencore’s Pallas Green

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Ownership

  • 76.56% G11, 23.44% Connemara Mining Company plc (CON-AIM)

Strategic location

  • Adjacent to Glencore’s Pallas Green deposit
  • Pallas Green is one of largest undeveloped zinc deposits in the world (44.0 mln tonnes @ 8.0% Zn+Pb; JORC-

compliant, as at 31-Dec-2016)

  • Contiguous with PG West property (100% owned by G11)

History

  • 2007 – Teck enters option to buy 75% from Connemara (by spending C$3.0m)
  • 2007 – discovery of Stonepark (2007) and Stonepark North (2009)

Database

  • 57,742m – total historic (Teck drilled 54,767m from 2007-2012)
  • 18 line km of seismic surveys
  • Numerous geochemical and geophysical surveys

Sunk cost

  • C$8.9m (€6.1m) since early 2007 (by Teck and CON)

Big picture

  • G11 has 1,240 sq km ground position in camp (incl. PG West)
  • Tectono-stratigraphic analysis and seismic surveys to discern new key structures

Stonepark

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Advanced Prospects On-Strike from Glencore’s Pallas Green Deposit

15

STONEPARK (G11)

PG WEST (G11) PG WEST (G11) PG WEST (G11)

PALLAS GREEN (GLENCORE)

Newcastle West prospect Tipperary prospect

km km km

Limerick Basin New camp (Pallas Green discovered in 2002) Largest in terms of metal content in Ireland (except for Navan) Yet – main mineralizing fault has not yet been found Key tool – seismic surveys

Stonepark

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Regional Exploration a Key Focus

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Prospects remain open in several key areas Sparse regional drilling has intersected evidence of other hydrothermal systems

WL ABL

0km 5km

Stonepark North Stonepark Crecora Rockfield Rathmore Limerick South Rochestown Ballyneety (Stonepark West) LLS ORS Waulsortian Lmst Old Red Sandstone Lower Limestone Shale Ringmoylan Shales ABL (Ballysteen) Knockroe Lithic Tuff Knockroe Basalt Flow Legend

Stonepark

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Stonepark North – Over 600m in Length

17 Zn-Pb sulphide zone Lower ABL (argillaceous lmst) Waulsortian limestone Waulsortian equivalent Igneous dissolution breccia Black Matrix Breccia Alkali basalt intrusion Diatreme or igneous breccia Hydrothermal dolomite Plan View

055 074 049 040

N S

Note: Historic drill results have not been verified by a Qualified Person as the samples forming the basis of such results are not available to the Company and accordingly no quality assurance programs or quality control measures were applied by the Company.

N S

0m 150m Source: Nick Kerr, M.Sc. Thesis (2012)

Stonepark

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Near-term catalysts

  • 1. Ballinalack 

drill testing Navan Bed target below historic estimate

  • 2. Ballinalack 

confirmatory and step-out drilling at historic estimate

  • 3. Stonepark 

confirmatory and step-out drilling at Stonepark North

  • 4. Stonepark 

seismic survey to identify large-scale structures

  • 5. Silvermines 

drilling at Cooleen to expand known mineralization

18

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Supplemental Information

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Silvermines Project

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Back on the Market After 20 Years

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Four Formerly-Producing Zinc Mines in Region

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Source: G11, modified from EMD

Silvermines zinc mine (shut) Cooleen prospect Lisheen zinc mine (shut) Galmoy zinc mine (shut) Silvermines North

Crinkill (ironstone deposit with zinc)

Tynagh zinc mine (shut)

Rapla zinc prospect (Vedanta) Derrykearn zinc prospect

Silvermines

Waulsortian limestone

Historic Silvermines Zinc Mine produced approximately 10.8 million tonnes grading 7.4% zinc and 2.7% lead between 1968 and 1982 Cooleen prospect has not been explored in 20 years

Silvermines

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Cooleen Prospect and Targets

22

Long-section Cooleen prospect area Drill targets defined by Ennex in 1996 (not yet tested) Drill collars (historic) G11 drilling

Off limits for staking

G11 license (released from long-term moratorium in May 2015)

G11 licence

Waulsortian limestone

Silvermines deposit

Target 1 Target 2 Target 3 Target 4

0km 1km

G11 licence

Exploration to focus

  • n Targets 1 to 4 and

regionally along trend to the northeast

Silvermines

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Cooleen Zone - 300m long, 100m wide

23

Long section

Note: Historic drill results have not been verified by a Qualified Person as the samples forming the basis of such results are not available to the Company and accordingly no quality assurance programs or quality control measures were applied by the Company.

Above holes define a mineralized zone approximately 300m long and 100m wide Exploration will focus on expanding this zone (currently open) and tracing it back to a feeder structure

Silvermines

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Cooleen Cross-Section

24

zinc zinc

intense black matrix breccia 2.1m @ 10.7% Zn+Pb * 2.0m @ 4.9% Zn+Pb) 7.3m @ 16.0% Zn+Pb *

* Historic drill results have not been verified by a Qualified Person as the samples forming the basis of such results are not available to the Company and accordingly no quality assurance programs or quality control measures were applied by the Company.

Silvermines

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SLIDE 25

Board of Directors

Dan MacInnis (64)

Chairman

  • 40 years experience in

mineral exploration worldwide (including Ireland)

  • Director, MAG Silver Corp.

(retired CEO) & Chairman, Balmoral Resource Ltd.

  • Managed exploration

programs for Noranda, Battle Mountain Gold/Hemlo Gold

  • Associated with Juanicipio,

Cinco de Mayo, Duck Pond and other discoveries

  • An accredited director with

B.Sc. Geology at Saint Francis Xavier University

Bart Jaworski (43)

Chief Executive Officer

  • CEO, Director and Co-

Founder of GERL since June 15, 2015 (full time basis)

  • 20 years in mining industry,

including 6 years as an exploration geologist

  • Previously mining analyst

at Davy and Raymond James Ltd. (12 years combined)

  • Associated with the early

stages of the Coffee Creek gold discovery, Yukon

  • Bachelors of Science (Hons)

in Geology from the University of British Columbia

Alessandro Bitelli (59)

Chair of Audit Committee

  • 30 years of experience in

the resource industry and in public accounting

  • A member of the senior

management team at the Lundin Group of Companies

  • Executive Vice President

and Chief Financial Officer

  • f Lundin Gold Inc.
  • Previously CFO for Red

Back Mining Inc. during $9.2 billion takeover in 2010

  • Also a director of Filo

Mining Corp.

Brendan Cahill (39)

Director

  • President and CEO of

Excellon Resources Inc. (since 2012)

  • Capital markets, corporate

finance and law expertise

  • Previously, Corp. Secretary

& VP Corp. Dev. with Pelangio Group of Companies

  • Involved in negotiating

Pelangio Mines’ merger with Detour Gold Corp.

  • Involved in Pelangio

Exploration’s acquisition of the Manfo Project in Ghana

  • Previously at Davies Ward

Phillips & Vineberg LLP

25

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SLIDE 26

Management

Bart Jaworski (43)

Chief Executive Officer

  • CEO, Director and Co-

Founder of GERL since June 15, 2015 (full time basis)

  • 20 years in mining industry,

including 6 years as an exploration geologist

  • Previously mining analyst

at Davy and Raymond James Ltd. (12 years combined)

  • Associated with the early

stages of the Coffee Creek gold discovery, Yukon

  • Bachelors of Science (Hons)

in Geology from the University of British Columbia

John Barry (62)

VP, Exploration Strategy

  • 29 years in mining industry

and co-founder of GERL

  • Director (since 2014),

Pasinex Resources Ltd. (zine mine in Turkey)”

  • Previously, CEO of

Rathdowney Resources Ltd. (zinc in Poland and Ireland)

  • Previously, Director,

Sovereign Mines of Africa, Orogen Gold, Heatherdale Res.

  • M.Sc. (Geol) at Penn. State

University, MBA at Edinburgh School of Business

David Furlong (46)

Chief Operating Officer

  • 22 years of industry

experience as a geologist

  • Co-founder (and director) of

GERL (since 2015) and GEME (since 2013)

  • Previously, 7 years as

General Manager, Projects for Rathdowney Resources Ltd.

  • Expertise in design,

implementation and management of exploration programs

  • B.Sc. (Hons) in Exploration

and Mining Geology from the University of Wales

Shaun Heinrichs (44)

Chief Financial Officer

  • 19 years of financial

accounting experience, primarily in mining industry

  • Including 7 years of public

practice experience with Ernst & Young LLP

  • Previously CFO at Veris Gold
  • Corp. (precious metals

producer)

  • Previously, CFO at VMS

Ventures Inc. (base metals producer)

  • B.BA from Simon Fraser

University and Chartered Professional Accountant

26

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SLIDE 27

Technical Advisory Panel

  • Dr. Peter Megaw, Mr. Frank Hallam, Mr. John Prochnau and Mr. David Whitehead provide the Company with strategic and technical

advice from time to time on an ad-hoc basis. The panel members are not directors or officers of the Company.​

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  • Dr. Peter Megaw

30 years of experience focussed on silver and gold exploration in Mexico

Chief Exploration Officer of MAG Silver Corp.

Instrumental in Platosa, Juanicipio and Cinco de Mayo discoveries

World-renowned expert in carbonate replacement silver, lead-zinc deposits

Received several major awards, including Thayer Lindsley Award (2017)

Ph.D. in Geology from the University of Arizona

Frank Hallam

20 years of financial experience in mining industry, helping raise over $1 billion

Negotiated transactions with Anglo Platinum, Barrick, JCI and Newmont Mining

Director (and founder) of Platinum Group Metals Ltd.

Previously Co-founder and Director, West Timmins Mining and MAG Silver Corp.

CFO and Director, West Kirkland Mining; Director of Lake Shore Gold

John Prochnau

Successful explorationist (Casey Research “Hall of Fame” in 2005)

Associated with Alligator Ridge (Nevada) and Esquel (Argentina) discoveries

Experience with Irish exploration via Billiton’s Irish operations in early 1980s

Director of Carolina Gold Resources Inc.

B.Sc. Mining Engineering, University Washington; M.Sc. (Geol), McGill University

David Whitehead

years experience in exploration, mine development and mining operations ith Billiton Group (1976-2002) as VP, Integration, Exploration and Innovation pertise in formation of strategic alliances with junior exploration companies Director of Tertiary Minerals plc, Consolidated Mines & Investments Ltd. Mining Geologist by training

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RESOURCES CORP.

Suite 1050 – 400 Burrard Street Vancouver, BC, Canada V6C 1M2 Bart Jaworski, CEO E: b.jaworski@groupelevenresources.com M: +353-85-833-2463