FORWARD LOOKING STATEMENTS!

Transcription

1

2 FORWARD LOOKING STATEMENTS This%presentation%contains%certain%forward1looking%statements%regarding%operational%information,%future% exploration%and%development%plans%and%anticipated%future%production.%words%such%as,%potential,% building % inferred,% if,% will,% expect,% forecast,% estimate,% consider,% may,% possible %and% similar%expressions%have%been%used%to%identify%these%forward1looking%statements.%these%statements%are% management s%current%beliefs%and%are%based%on%information%currently%available%to%management.%% % Forward1looking%statements%involve%significant%risk%and%uncertainties.%A%number%of%factors%could%cause% actual%results%to%differ%materially%from%the%results%discussed%in%the%forward1looking%statements%including,% but%not%limited%to,%changes%in%general%economic,%political%and%market%conditions%and%other%risk%factors.% Although%the%forward1looking%statements%contained%herein%are%based%upon%what%management%believes% to%be%reasonable%assumptions,%management%cannot%assure%that%actual%results%will%be%consistent%with% these%forward1looking%statements.%investors%should%not%place%under%reliance%forward1looking% statements.%% % Forward1looking%statements%and%other%information%contained%herein%concerning%the%metals%and%mining% industry%and%alliance s%general%expectations%concerning%the%industry%are%based%on%estimates%prepared%by% management%using%data%from%publicly%available%industry%sources%as%well%as%from%private%sources,%industry% analysis%and%on%assumptions%based%on%data%and%knowledge%of%the%this%industry%which%the%company% believes%to%be%reasonable.%however,%this%data%is%inherently%imprecise.%while%alliance%is%not%aware%of%any% misstatements%regarding%any%industry%data%presented%herein,%the%industry%involves%risks%and% uncertainties%and%is%subject%to%change%based%on%various%factors.%there%is%no%certainty%the%projections%will% be%met.%

3 CORPORATE OVERVIEW Alliance Mining has an option agreement with Buenaventura (NYSE: BVN) to acquire 2 mining projects in Peru for $2.5M The two projects, Poracota and Shila-Paula, include 3 past producing mines, a large tailings deposit, and several high-value exploration targets Completing this acquisition would give the Company the rights to all existing project infrastructure and a 350,000 meter historic drill database, ownership of a 250 TPD flotation mill, and access to a second 700 TPD circuit An independent auditing firm, Evans & Evans, assigned a total value of $32M to the assets that Alliance Mining would be obtaining via this acquisition The Company is aiming to have the mines at Poracota and Shila-Paula back in production within 12 months, at an initial capex of just $2.5M

4 PORACOTA & SHILA-PAULA These two assets are located in a prolific gold and silver mining region of Peru Poracota Mine Shila-Paula Mine Both are within 35km of Buenaventura s Orcopamapa mine, which produced an average of 275,000 oz. Au for several years running The extent of the land holdings that Alliance Mining would control at each project are quite significant: 11,974 Poracota 13,787 Shila-Paula

5 ASSETS TO BE ACQUIRED SHILA-PAULA PROJECT Acquiring two mines (Shila & Paula) and 250 TPD processing plant Combined book value of buildings, machinery and equipment of Shila Mine & Plant estimated to be $3.75M The replacement value for the mill and its attendant infrastructure at Shila is estimated at $15M 5 exploration targets identified at the project, along with 150,000+ meters of historic drill data PORACOTA MINE ASSETS Acquiring Poracota Mine, which has a substantial delineated resource Two additional targets at Poracota already have established NI compliant resources Nearly 200,000 meters of historic diamond drill data (conducted by Buenaventura) The acquisition includes full access to 700 TPD Orcopamapa flotation mill (located 37 km from Poracota Mine)

6 EXPLAINING THE DIVESTMENT Compania de Minas Buenaventura S.A. ( Buenaventura ) is Peru s largest publicly traded mining company, with a market cap of nearly $3B Difficult prevailing market conditions in the mining sector have led Buenaventura to adjust its strategic focus moving forward Having sharply reduced its exploration budget since 2012, Buenaventura is now working to shed its smaller, less developed mineral assets in Peru Buenaventura s corporate repositioning is a huge boon for Alliance Mining, providing the Company an opportunity to acquire two outstanding mineral assets at a steeply discounted price While this divestment would only net Buenaventura $2.5M in cash from Alliance Mining, the main benefit for Buenaventura would be avoiding upwards of $10M in shutdown costs at Poracota and Shila-Paula

7 NEAR-TERM PRODUCTION PATH STAGE ONE (WITHIN 3 MONTHS) Begin mining readily available ore from the Paula Mine (150 MT/D) and blend it with reprocessed historic tailings at Shila-Paula (100 MT/D) Run production through 250 TPD Shila Plant STAGE TWO (WITHIN 12 MONTHS) Commence production on readily available ore from the Poracota Mine Run ore processing operations through 700 TPD Orcopampa Plant Head Frame at Paula Mine

8 PRODUCTION SCHEDULE TIMELINE

9 250 TPD SHILA PLANT

10 SHILA-PAULA PRODUCTION Alliance Mining has a production target of 250 TPD at Shila-Paula 150 TPD will come from underground operations at the Paula Mine; the remaining 100 TPD will be sourced from the historic tailings at Shila-Paula Both production streams would generate strong positive cash flow and require a Capex of just $1M for each With production costs projected at just $690 per ounce, the Paula Mine would generate estimated gross profits exceeding $500,000 per month Known reserves at the Paula Mine would be exhausted after 16 months, but the profits generated during that time would be exceptional Meanwhile, the Shila-Paula Tailings Project has an estimated payback period of just 13 months, a production horizon of 12 to 16 years and a NPV of US$ 13M

11 PAULA MINE STRUCTURAL GEOLOGY W ANCHACA TARGET Na:vidad'Vein' San'Carlos'Este'Fault' Maribel Vein Olga'Vein' TUNNEL 4880 Lucia Vein Nazareno Vein Juliana Vein Zulema'Vein' ClaudiaVein Piedad Vein V. Escondida Este V.'Otuzco' LauraVein MabelVein R. Escondida SHAFT 158 E SANI'VOLCANO' N Rosario Vein Pilar'Vein' Edith Vein ESCRIBANO TARGET 1.0 Kilometers' LEGEND' PROSPECTIVEAREA

12 SHILA-PAULA TAILINGS MAP Shila'Mill'&'Facili:es' All 4 tailings impoundments are located within 3 km of the Shila Mill. The site is accessible via a well-maintained all-weather road and is fully electrified.

13 TIMELINE FOR TAILINGS PROCESSING Phase I Transfer of Tailings 1 & 2 Shila'Processing'Facili:es' Tailings Transfer Procedure " Strip topsoil from tailings surface " Excavate and load trucks for plant transfer or transfer dredge material by pipeline Phase II Transfer of Tailings 3 Phase III Transfer of Tailings 4

14 SHILA-PAULA TAILINGS DATA SHILA-PAULA TAILINGS TONNAGE, GRADES, AND REVENUE PROJECTIONS GRADE AVERAGES OUNCES RECOVERED TOTAL VALUE SITE TCS Ag Oz./TCS Au Oz./TCS Ag Oz. (71%) Au Oz. (80%) US$ (Ag) US$ (Au) TAILINGS 1 70, , , $803, $2,621, TAILINGS 2 59, , , $543, $1,664, TAILINGS 3 342, , , $4,821, $9,200, TAILINGS 4 903, , , $10,361, $19,073, TOTAL 1,375, ,033, , $16,529, $32,559, ** This valuation was based on the gold price being at $1200/oz. and silver at $16/oz

15 CASH FLOW PROJECTIONS SHILA-PAULA TAILINGS TONNAGE, GRADES, AND REVENUE PROJECTIONS GRADE AVERAGES OUNCES RECOVERED TOTAL VALUE SITE TCS Ag Oz./TCS Au Oz./TCS Ag Oz. (71%) Au Oz. (80%) US$ (Ag) US$ (Au) TAILINGS 1 70, , , $803, $2,621, TAILINGS 2 59, , , $543, $1,664, TAILINGS 3 342, , , $4,821, $9,200, TAILINGS 4 903, , , $10,361, $19,073, TOTAL 1,375, ,033, , $16,529, $32,559,527.00

16 PORACOTA MINE The Poracota Mine was operated between 1995 and 2000, with Teck Resources as the operator (as part of a JV with Buenaventura) 199,841 meters of diamond drilling was carried out at Poracota by Buenaventura " 62,615 meters of surface drilling " 137,225 meters of mine drilling Alliance Mining intends to move the Poracota Mine back into production within six months of the restart at Shila-Paula (at a Capex of $1M) The Company has an agreement in place with Buenavaentura that grants Alliance Mining exclusive access to the 700 TPD Orcopamapa processing facility The Poracota Mine has Proven & Probable Reserves of 37,660 oz. Au and contains multiple target areas with additional delineated resources

17 PORACOTA RESOURCES & RESERVES GEOLOGICAL RESOURCE OF PORACOTA MINE Type Tonnage Au (g/t) Ag (g/t) Au (Oz.) Ag (Oz.) Proven & Probable 110, Inferred Resources 33, TOTAL 262, GEOLOGICAL RESOURCE OF SOMBRERORUMI AREA Type Tonnage Au (g/t) Ag (g/t) Au (Oz.) Ag (Oz.) Measured 555, , ,428 Indicated 299, ,089 97,258 Inferred 166, ,156 44,549 TOTAL 1,021, , ,235 GEOLOGICAL RESOURCE OF QUELLOCOCHA AREA Type Tonnage Au (g/t) Ag (g/t) Au (Oz.) Ag (Oz.) Measured 783, ,411 92,821 Indicated 1,136, ,712 86,863 Inferred 772, ,360 62,395 TOTAL 2,692, , ,079

18 PORACOTA MINE " Total known resources at Poracota, including the mine and the Sombrerorumi and Quellococha targets, come to 255,325 oz. Au " Poracota veins are an average of 6m wide, facilitating exploitation with minimal dilution and projected operating costs of only $668/oz. " The project has fully developed infrastructure, access to electricity and all mine machinery is in place

19 ALLIANCE MANAGEMENT TEAM Christopher Anderson, CEO & Director " Brings 25+ years of business experience with a strong emphasis on strategic planning, communications, and creative marketing " Has been instrumental in facilitating millions of dollars of financing for public and private companies " Former VP of Business Development at Geodex Minerals Travis Snider, President & Director " 20+ years of industry experience in exploration, production, permitting, development, and consulting for major mining companies " Has served as Senior VP of Operations for Sierra Resource Group; also worked for 8 years with Phelps Dodge Mining Corporation Zeny Manalo, CFO " Boastsmorethan20yearsofexperienceinbusinessmanagement " TakescareofaccounFngandadministraFonresponsibiliFesforanumberofpublicandprivate Canadiancompanies,mostofwhichareintheminingsector Dr. Andy Chakrabarti, Advisor & Qualified Person " 40+ years of experience in Exploration and Mining Geology, Mine Planning and Development, Business Development, and Project Management " Has held the positions of VP and Senior Geologist for major consulting firms and mining companies in the United States, United Kingdom, South Africa, Colombia, and Canada

20 ALLIANCE PERUVIAN TEAM Alliance Mining will be bringing aboard the same production team and mine staff that previously worked with Buenaventura Operations in Peru will be led by Dr. Aaron Morales, an integral member of Buenaventura s team who served as the right hand man to its CFO Dr. Morales expertise also extends to the banking sector; for several years, he was the President of Intercontinental Bank, Peru s second largest bank Dr. Javier Barco, who will serve as legal counsel for Alliance Mining s Peruvian interests, is the former head of a major mining association in Peru By employing the same staff members that Buenaventura hired, Alliance Mining can help to soothe any political tensions and tap into a highly skilled worker pool that requires zero training

21 LEADING MINING JURISDICTION " Peru is ranked among the largest mineral producers in the world: Silver (1st), Copper (2nd), Zinc and Tin (3rd), Lead (4th), and Gold (6th) " Less than 1% of Peru s mineral reserves are currently being exploited and only 14% of the country has been staked " Peru boasts a modern geological information system; it has been praised for its efficient administration of mining rights and title granting procedures " Latin America accounted for 25% of global exploration expenditures in 2012 " Peru s Ministry of Energy and Mines estimates that around US$ 59.5 billion will be invested in the Peruvian mining sector from 2014 to 2020 Sources: Australian Trade Commission Report: Mining in Peru, August 2011 EY Report: Peru s Mining & Metals Investment Guide (2014/2015)

22 EXCELLENT ASSETS ON DISCOUNT The confluence of a prolonged bear market and a strategic realignment by Buenaventura has allowed Alliance Mining to negotiate a highly lucrative deal " Acquire 100% interest in the Shila-Paula Project (incl. the Paula Mine, Shila Mine and historic tailings) and 250 TPD Shila Mill for consideration of $1.5M " Acquire 100% interest in the Poracota Project, with full access to the 700 TPD Orcopamapa flotation mill, for consideration of $1M The projects each contain several high value exploration targets, where an extensive amount of diamond drilling has been conducted " At Shila-Paula, the main exploration targets are: Anchaca, Collpa, Escribano, Huactana and Tocracancha " At Poracota, the list of identified exploration targets include: Faculla, Oxidos, Perseverancia, Soras and Wendy

23 CORPORATE OBJECTIVES SHORT-TERM (12 to 18 months) Launch production at the Paula and Poracota Mines and begin reprocessing historic tailings at Shila-Paula Conduct geophysical work and surface drilling at exploration targets MEDIUM-TERM (18 to 36 months) Complete Underground Resource Evaluations at Paula and Poracota Mines, including Feasibility Studies Increase production levels based on Resources-Grade viability Aerial View of Shila-Paula Project

24 ALLIANCE MINING ADVANTAGES # Eric Sprott is the second largest shareholder (~8%) in Alliance Mining; CEO Chris Anderson is the largest (~13%) # The Company has an immediate, low-cost production plan, as well as significant exploration upside that can be leveraged into JVs # In 2011, Buenaventura negotiated the sale of Anchaca, a single exploration target at Shila-Paula, to Condor Resources for $9M (the transaction ultimately fell apart due to financing issues) # Buenaventura has put at least $5M into the exploration of targets at Poracota and Shila-Paula; Alliance will have access to a database of 350,000+ meters of drill data # Alliance Mining has an outstanding, local Peruvian technical team that will oversee mine operations and tailings reprocessing at Poracota and Shila-Paula

25