Corporate Presentation TSX:ALS | OTCQX:ATUSF April 2020 - - PowerPoint PPT Presentation

TSX:ALS | OTCQX:ATUSF

Clean Steel Copper Potash Renewable Power Copper Lithium Nickel Cobalt

April 2020

Corporate Presentation

TSX:ALS | OTCQX:ATUSF

Copper 37% Battery Metals (Ni-Li-Co) 2% Potash 19% Electricity Generation 14% Clean Iron Ore 20% Steel Making Coal 4% Zinc 3%

Diversified Assets and Operators

15 Producing Royalties

Investment Grade Operators

2019 Royalty Revenue

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TSX:ALS | OTCQX:ATUSF $6M $28M $33M $46M $67M $78M

FY 2014 FY 2015 FY 2016 FY 2017 2018 2019

Growth

Royalty Revenues

$3M $1M $15M $26M $35M $44M

FY 2014 FY 2015 FY 2016 FY 2017 2018 2019

Adjusted Operating Cash Flow

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$16.3M

Revenues

(Q1-2020)

Quarterly Performance

Base Metals 40% Potash 27% Electricity Generation 15% Clean Iron Ore 6% Steel Making Coal 4% Other 7%

Q1-2020 Royalty Revenue

TSX:ALS | OTCQX:ATUSF

4.9x 1.4x x 1x 2x 3x 4x 5x 6x 2014 2015 2016 2017 2018 2019

TSX: ALS | OTCQX: ATUSF Issued Common Shares 41.8 million Fairfax Preferred Securities 10.0 million ($100 mm) Basic Market Capitalization $300 million Annual Dividend $0.20 per share Outstanding Debt $155 million Cash and Public Equity Holdings† $116 million Available Under Credit Revolver† $35 million

Leverage Ratio (Net Debt:EBITDA)

Dividends $3M Dividends $5M Dividends $7M Dividends $7M Dividends $8M Share buy back $2M Share buy back $2M Share buy back $5M Share buy back $9M

2015 2016 2017 2018 2019

Returns of Capital

Research Coverage

Richard Gray Craig Hutchison Brian MacArthur Carey MacRury Jacques Wortman Orest Wowkodaw

Capital Structure

†Capital table values, return of capital and net debt to EBITDA numbers as of Dec 31 2019 except for market cap as of Apr

3,2020. Cash and public equity holdings as at Mar 31, 2020 includes $32 million cash + $49 million LIORC equity value + $34 million project generation equity values

COVID19’s Impact on Assets

TSX:ALS | OTCQX:ATUSF

Copper Zinc Lead Nickel Iron 65% Pellets Iron 65% Fines

• 30%
• 20%
• 10%

0% 10% 20% 30% 15-Jan-20 28-Jan-20 10-Feb-20 23-Feb-20 7-Mar-20 20-Mar-20 2-Apr-20

Commodity Prices Since COVID19 Outbreak Began

First Confirmed COVID19 Death (China)

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Price component of Altius’s top line (i.e. non-marginal) royalties have declined by 2019 revenue weighted average of 11%

TSX:ALS | OTCQX:ATUSF

Production Level Changes Since COVID19 Outbreak Began

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• On March 17, 2020 Vale ramped down its Voisey's Bay

mining operation and placed it on care and maintenance for a period of four weeks, as a direct result of the COVID-19 pandemic.

• The mine accounted for less than 2% of Altius overall

2019 revenue.

• Iron Ore Company of Canada temporarily halted two iron

pelletization lines (of six) due to weak demand in Europe and North America.

• As a result, IOC plans to shift more of its output to high

grade iron concentrate, which continues to see strong demand.

• In Q1-2020. Altius sold a portion of the LIORC common

shareholding and continues to hold approximately 2.9 million shares of LIORC.

• On March 26, 2020 Excelsior announced that the retrofit

and wellfield upgrades have been successfully completed.

• However, in response to the unfolding global COVID-19

pandemic, the Board of Directors has placed the Gunnison Copper Project on temporary suspension.

• Nutrien announced that it continues to expect solid

demand for crop inputs for the coming spring season and that its facilities continue to operate given its business is deemed an essential service by governments.

• The U.S. farmer is generally in good shape, with debt to

assets less than 13%, equity at an all-time high, and stable cash receipts expected again this year.

• Global grain consumption should exceed production for

the first time since 2011-2012, according to the USDA.

Gunnison IOC / LIF Shareholding Potash Demand Voisey’s Bay

All other operations appear to be running at or near capacity

TSX:ALS | OTCQX:ATUSF

Strong Underlying Operating Margins

Operator Mine Commodity Benchmark

Guidance Post Covid-19 Outbreak

Altius Price Based Royalty Δ Operator Margin Δ Commodity Price Operating Margin Commodity Price Operating Margin Lundin Chapada Copper $2.74 126% $2.19 81%

• 20%
• 45%

Nutrien All Operations Potash $255 211% $240 193%

• 6%
• 18%

Mosaic All Operations Potash $255 245% $240 224%

• 6%
• 20%

Vale Voisey's Bay Nickel $5.88 103% $5.04 74%

• 14%
• 29%

Rio Tinto IOC Fe Concentrate $110 144% $98 117%

• 11%
• 27%

Rio Tinto IOC Fe Pellet $141 117% $128 96%

• 9%
• 20%

Excelsior Gunnison Copper $2.74 215% $2.19 152%

• 20%
• 63%

Hudbay Manitoba Ops Copper $2.74 800% $2.19 639%

• 20%
• 161%

Notes

• All amounts USD. Gudance commodity price as at January 22, 2020 and post covid-19 price as at April 4, 2020.
• Chapada margin calculated using Lundin’s guidance of 2020 C1 cash costs of copper per pound (NI43-101 report October 10, 2019) after precious metal by-product credits. Chapada cash

costs do not include the effects of copper stream agreements which will be a component of the copper revenue and will impact realized revenue per pound.

• Nutrien and Mosaic per tonne margins calculated by taking FOB Midwest Spot over Cost of Product Manufactured. COPM = Potash COGS for the 2019 excluding depreciation and amortization

expense and inventory and other adjustments divided by the production tonnes for the period. For Mosaic, we used the 2019 four quarter average actuals cash costs of production (excluding brine) – MOP ($/tonne)

• Voisey’s Bay margin calculation using SNL Modeled Cost Curve for Total Cash Cost per pound of nickel net of by-product credits.
• IOC margin based on Altius modeled $45/t cash costs for concentrate and $65/t cash costs for pellet.
• Gunnison is expected to be in commercial production in 2020. Total cash cost pe pound of copper is derived from the Base Case of the Feasibility Study dated January 16, 2017
• Manitoba Operations margin calculated using Hudbay’s annual actuals year ended December 31, 2019. Cash cost per pound of copper produced, net of by-product credits.

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Operations have margin protection against economically driven closures - Underlying operator margins remain strong at an average of 197% despite Covid-19 based price compression

Long Term Growth Profile

TSX:ALS | OTCQX:ATUSF

Coal to Renewables Fossil Fuel to Clean Energy Conversion Cu, Co, Ni, Li Clean Iron Ore Products Lower Emission Steel Making Soil Quality/Agricultural Yield Improvements Electrification and Storage Natural Potash Fertilizer

Macro-Trend Altius Royalty Exposure

Subsidiary Altius Renewable Royalties Corp. (“ARR”) reinvesting declining coal royalty proceeds to fund the advancement of a portfolio of more than 23 GW of potential new renewable energy projects Altius’s potash fertilizer royalties relate to a portfolio of top-tier Canadian mines that are ramping up into pre-built capacity expansions as the need for sustainable food production, without additional deforestation, increases Copper, which benefits more than any other metal from EV and renewable energy transitions, represents a large portfolio

• component. Royalty exposure to battery metals - Nickel, Cobalt

and Lithium - set to increase in importance Royalty from IOC relates to high iron / low impurity concentrates and pellets that require less metallurgical coal usage in steel making – minimizing pollution and carbon impacts

Royalties on a Sustainable Natural Resource Future

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Industry leading fundamental business growth from assets that enable the world to meet its sustainability objectives

TSX:ALS | OTCQX:ATUSF

Royalty Lives - Unrivalled Sustainability & Expandability

Mine lives calculated based on current mineral inventory and 2018 throughput. Coal asset lives denote the expected plant closure and not based on

• reserves. The 2018 revenue weighted average mine life is based on remaining reserves inclusive of MI resources and throughput capacity.

85+ Year Revenue Weighted Life

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TSX:ALS | OTCQX:ATUSF

Short to Medium Term Royalty Growth Profile

Strong operating margins and long resource lives (85 years revenue weighted average) motivating multiple new build and expansion investments by operators = free royalty growth

Organic (Free) Mine Royalty Growth

New renewable energy royalty business growing fast as electricity generation transition accelerates and sector begins to recognize benefits of royalty finance offering

Renewable Royalty Business Gaining Momentum

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Discovery

Renewable Development Portfolio 2.5 GW Portfolio Rocanville Cory Allan Vanscoy Esterhazy Completed Potash Expansions New Mines in Construction Voisey’s Underground (Ni-Co-Cu) Gunnison (Copper)

Building Ramping Up Financing and Development

Chapada Expansion (Cu)

Resource Stage Expansion Study

Expansion of Existing Assets New Build Studies 168,000 metres of drilling in 2020 60+ Exploration Stage Royalties

TSX:ALS | OTCQX:ATUSF

“Built” Growth

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Completed Potash Expansions

• In the past decade, The Mosaic Corporation along with the predecessor companies of Nutrien, Potash Corp and Agrium,

embarked on and completed $9 billion of capital expansions.

• These expansions more than doubled the total nameplate capacity of mines with royalties articulable to Altius at no cost to

Altius.

• Incremental increases in capacity utilization are magnified by our disproportional ownership of the two flagship assets,

Nutrien’s Rocanville and Mosaic’s Esterhazy, which are both ultra low-cost mega-operations.

Mine Operator

Expansion Name Plate Capacity (Mtpa) Production (Mtpa)

2019 Capacity Utilization Announcemnt Date Completion Date Pre-Expansion Post-Expansion 2019 Esterhazy Mosaic May 2009 December 2017 3.9 6.2 3.9 63% Rocanville Nutrien February 2010 October 2017 3.0 6.5 5.14 79% Allan Nutrien June 2008 December 2012 1.9 4.0 2.18 55% Vanscoy Nutrien February 2010 December 2015 1.5 3.0 1.42 47% Cory Nutrien September 2010 April 2012 1.4 3.0 0.97 32% Patience Lake Nutrien

• 1.0

0.3 0.24 80% Total 12.7 23.0 13.9 60%

Source: S&P Global, Company Reports Note: (1) Weighted Average Capacity Utilization 1

TSX:ALS | OTCQX:ATUSF

Near Term Production Growth Investments

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Chapada Upside and Optimization

• The Chapada Cu-Au mine located in Goais, Brazil was sold by Yamana to Lundin Mining in early H2 2019. Lundin Mining has taken a

fundamentally different approach to the Chapada operation and is planning to replicate the success it had at the Candelaria copper mine in Chile where it first increased reserves by more than 100% in the first few years and based on this substantially improved the production profile.

• Lundin’s approach to increasing value of the asset is based on this systematic approach of first understanding the full potential of the

mineral resources, achieved by implementing a well funded exploration program led by qualified personnel. The exploration budget for 2020 is at least US$10M, which translates into 50,000 m of drilling. By comparison, in 2017 plus the first 6 months of 2018, Yamana drilled about 28,000 m around Chapada (a ~3X increase).

• Lundin’s approach to the operation will also focus more on maximizing the NPV of the operation, which is unlike Yamana’s mandate which

was to maximize gold production from what is primarily a copper deposit.

• Prior to the sale to Lundin, Yamana was studying an expansion from 24Mtpa to 32Mtpa. Lundin has guided to the market they it is their

intention to revisit studying an expansion which may be of greater throughput than Yamana’s plan and that understanding the near mine exploration upside was the key to determining the size of any potential expansion.

Gunnison ISL Copper Mine and Expansion Potential Voisey’s Bay Expansion

• In 2018, Vale announced that it would recommence the $1.7billion underground expansion of the Voisey’s Bay mine. Two new ramps at

its Reid Brook and Eastern Deeps deposits, will ultimately replace the open-pit mine now used. This project extends the Voisey's Bay mine life to 2034 or longer.

• Operations at Voisey’s Bay have been temporarily put on Care and Maintenance as the fly-in fly-out operation seeks to protect its norther

communities from COVID-19.

• Upon reaching commercial production Excelsior Mining’s Gunnison In-situ Leach operation would be the 16th producing royalty in Altius

production portfolio. The project was in the late stages of commissioning when in March 2019, the project was put on care and maintenance due to the Covid-19 pandemic.

• The Project’s feasibility study envisions a three phased approach to production with the first phase producing 25 million pounds of copper

per year and expanding to 125 million pounds over the projects 24 year life.

TSX:ALS | OTCQX:ATUSF

Renewables Transition Momentum Growth

Levelized Cost of Energy Comparison

EV Battery $ Cost / kWh $ Cost Parity with Internal Combustion Engine

Electrification trends (e.g. transportation about to shift to EV) will cause demand for electricity to grow and gain market share relative to other sources of consumer energy such as fossil fuels Lower costs, higher efficiencies and underlying demand growth coupled with a surge in ESG investment mandates creating a massive tailwind for renewable energy investments

Megatrends driving increased electricity demand: ESG Going Mainstream:

Source: “Electrifying Insights: How Automakers can Drive Electrified Vehicle Sales and Profitability,” McKinsey – January 2017 , Lazard’s Levelized Cost of Energy Analysis – Version 13.0 (November 2019), US SIF Foundation

Within the electricity sector, renewable energy has become the cheapest form of new generation

Past the tipping point:

TSX:ALS | OTCQX:ATUSF

ARR Development Progress Accelerating

GBR formed and begins working on business concept with Altius Developed and refined renewable royalty structure and

• ffering (legal, tax, etc.)

First renewable royalty on small hydro/solar project in VT GBR acquired by Altius (through Altius Renewable Royalties) $30MM royalty investment in Tri Global Energy Silverpeak acquired Canyon Wind (TX) from TGE with 1st embedded royalty on a TGE project CIP acquired Woodford Wind (IL) from TriGlobal Energy with 2nd embedded royalty attributable to Altius $35MM+ royalty investment in Apex Clean Energy 2017 2018 2020 2019 Silverpeak acquired Flatland Solar (TX) from TGE with 3rd embedded royalty on a TGE project 16

TSX:ALS | OTCQX:ATUSF

ARR’s Royalty Finance Model Attracts Second Major Developer

US$35MM+ Investment in Apex Clean Energy

Apex is one of the largest renewable energy developers in the U.S. and has commercialized over 5 gigawatt (GW) of clean energy projects since inception in 2009. Its current portfolio includes approximately 21 GW (12.5 GW wind, 8.5 GW solar) of development projects. Apex typically vends these projects to utilities, infrastructure funds and other institutional investors prior to construction. Overview

• On March 10, 2020, Altius announced that ARR has closed a US$35+ million royalty investment transaction with Apex Clean

Energy (“Apex”)

• ARR’s investment is funding Apex’s development efforts for its current portfolio of projects and also facilitating its expansion -

allowing Apex to ultimately bring more projects to market

• As Apex sells its development projects to final project sponsors ARR receives new royalties until a minimum royalty vesting

threshold is met.

• Once vested by ARR, royalties are “perpetual” and uncapped

Royalty Contract Details

• Option mechanism allows for future US$10 million tranches based upon achieved milestones
• Royalty payment is pre-set as a percentage of gross revenues
• Using current assumptions portfolio is estimated to generate US$3-4 million in new annual royalty revenues

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TSX:ALS | OTCQX:ATUSF

21 GW

Development Portfolio

1.6 GW

Projects Transacted in 2019

+2.0 GW

Under Construction

Apex Is One of the Largest Renewable Energy Developers in US

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TSX:ALS | OTCQX:ATUSF

Tri Global Energy Investment – Proof of Concept

• Renewable energy royalties are being generated ahead of schedule – project sales in first year represent more than half that

required for full royalty vesting threshold - with remainder expected throughout 2020

• First royalty project, Canyon Wind (360 MW – TX), sold in October 2019 to Silverpeak Strategic Partners with operations

expected to begin in Q2 2021

• Woodford Wind (400 MW – IL) sold to Copenhagen Infrastructure Partners in December 2019 with operations expected to

begin in Q4 2021

• Flatland Solar (180 MW – TX) sold to Silverpeak Strategic Partners in March 2020 with operations expected to begin in Q4

2021

• TGE development pipeline has increased to over 2,300 MW (even after accounting for the 940+ MW in project sales)

Source Company Reports

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TSX:ALS | OTCQX:ATUSF

Altius generates mineral exploration projects for sale in exchange for royalties and equity positions. This is a proven Equity/Royalty Investment Strategy that allows creation of new pipeline royalties at negative cost and provides cash for 3rd party royalty acquisitions

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PG Business Growth - Royalty Creation At Negative Cost

57

Projects

$17M

Converted to new royalties and junior equities since 2016 market bottom Positive cash generation in 2019

Junior Equity Portfolio Growth

$22M $33M $54M

$54M

$34M $11M

• $3M
• $6M

$17M $1M

April 2016 April 2017 December 2018 December 2019 March 2020

TSX:ALS | OTCQX:ATUSF

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PRODUCING ROYALTIES DEVELOPMENT ROYALTIES PROJECT GENERATION PROJECT RENEWABLE ENERGY PORTFOLIO

CONTACT INFORMATION

Flora Wood Director, Investor Relations Phone: (416)346-9020 Email: Flora@altiusminerals.com

Thank You