TSX-V: PML BVL: PML I BORSE: PZM OTC: POROF

Transcription

1 TSX-V: PML BVL: PML I BORSE: PZM OTC: POROF PERU FOCUSED COPPER EXPLORER Corporate Presentation December 2018

2 Forward Looking Statements Information and statements contained in this news release that are not historical facts are forward-looking information within the meaning of applicable Canadian securities legislation and involve risks and uncertainties. Examples of forward-looking information and statements contained in this news release include information and statements with respect to: acceleration of payments by Wheaton Precious Metals to match third party financing by Panoro targeted for exploration at the Cotabambas Project payment by Wheaton Precious Metals of US$140 million in installments negotiation of a definitive PMPA Panoro weathering the current depressed equity and commodity markets, minimizing dilution to existing shareholders and making targeted investments into exploration at the Cotabambas Project mineral resource estimates and assumptions the PEA, including, but not limited to, base case parameters and assumptions, forecasts of net present value, internal rate of return and payback; copper concentrate grade from the Cotabambas Project; Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. In some instances, material assumptions and factors are presented or discussed in this news release in connection with the statements or disclosure containing the forward-looking information and statements. You are cautioned that the following list of material factors and assumptions is not exhaustive. The factors and assumptions include, but are not limited to, assumptions concerning: metal prices and by-product credits; cut-off grades; short and long term power prices; processing recovery rates; mine plans and production scheduling; process and infrastructure design and implementation; accuracy of the estimation of operating and capital costs; applicable tax and royalty rates; open-pit design; accuracy of mineral reserve and resource estimates and reserve and resource modeling; reliability of sampling and assay data; representativeness of mineralization; accuracy of metallurgical test work; and amenability of upgrading and blending mineralization. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks relating to metal price fluctuations; risks relating to estimates of mineral resources, production, capital and operating costs, decommissioning or reclamation expenses, proving to be inaccurate; the inherent operational risks associated with mining and mineral exploration, development, mine construction and operating activities, many of which are beyond Panoro s control; risks relating to Panoro s ability to enforce Panoro s legal rights under permits or licenses or risk that Panoro s will become subject to litigation or arbitration that has an adverse outcome; risks relating to Panoro s projects being in Peru, including political, economic and regulatory instability; risks relating to the uncertainty of applications to obtain, extend or renew licenses and permits; risks relating to potential challenges to Panoro s right to explore and/or develop its projects; risks relating to mineral resource estimates being based on interpretations and assumptions which may result in less mineral production under actual circumstances; risks relating to Panoro s operations being subject to environmental and remediation requirements, which may increase the cost of doing business and restrict Panoro s operations; risks relating to being adversely affected by environmental, safety and regulatory risks, including increased regulatory burdens or delays and changes of law; risks relating to inadequate insurance or inability to obtain insurance; risks relating to the fact that Panoro s properties are not yet in commercial production; risks relating to fluctuations in foreign currency exchange rates, interest rates and tax rates; and risks relating to Panoro s ability to raise funding to continue its exploration, development and mining activities. This list is not exhaustive of the factors that may affect the forward-looking information and statements contained in this news release. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information. The forward-looking information contained in this news release is based on beliefs, expectations and opinions as of the date of this news release. For the reasons set forth above, readers are cautioned not to place undue reliance on forward-looking information. Panoro does not undertake to update any forward-looking information and statements included herein, except in accordance with applicable securities laws. TSXV-PML Page 2

3 Investment Highlights Peru Focused Copper Explorer Advanced Stage Cotabambas Copper Project 722 Mt Resource PEA Complete Funding Multiple Resource Growth Targets Petra-David Oxide Cu Maria Jose Oxide/Sulphide Cu Chaupec Sulphide Cu/Skarn Antilla Copper Project 382 Mt Resource PEA Complete Increasing Metallurgical Recoveries Feasibility and Permitting Early Stage Kusiorcco Copper Project Funded by Milestone payments + 2% NSR Royalty Nearby Constancia Mine Humamantata Copper Project Funded by US$8M Joint Venture Funding Cash Total November 14, Advancements at Humamantata & Kusiorcco Projects October 15, Initiation of Drill Targeting Geophysics October 2, Joint Venture with JOGMEC September 25, Receipt of Early Deposit Payment from Wheaton Precious Metals September 4, Announces Increased Copper Recovery Estimates August 28, Chaupec Target Exploration Delineating Skarn and Porphyry Mineralization August 20, Approval of the EIA Expansion August 7, Column Leaching Test Results June 26, Filing of Antilla Copper Project Heap Leach & SX/EW PEA Technical Report June 18, Reports Results of the Drilling Program May 23, Receipt of Early Deposit Payment from Wheaton Precious Metals May 14, Positive PEA for Antilla Copper Project Heap Leach & SX/EW Operation March 13, Granting of Options February 20, Commences 2018 Drilling Program February 1, Exercise of Warrants by Hudbay Minerals January 22, CEO Outlook and Year in Review January 8, Completes Sale of Kusiorcco Project to Hudbay Minerals for up to US$5 million plus a 2% NSR Royalty TSXV-PML Page 3

4 Capital Structure & Share Performance Tickers Share Price 52 Week Low-High TSX-V:PML BVL:PML BORSE:PZM OTC:POROF $0.21 $ $ MONTH CHART Shares Issued Options Fully Diluted 263.8M 19.2M 283.0M Market Capitalization Undiluted Fully diluted $55.0M $59.0M TSXV-PML Page 4

5 Global Copper Mining Industry Overview DEMAND OVERVIEW Copper Expected to Move into a Supply Deficit in 2019 Copper is one of the most widely used base metals due to its variety of applications in the industrial and commercial markets Primary applications include electrical wiring, roofing, plumbing, and industrial machinery The primary applications of copper have been evolving along with new technologies, electric vehicles and renewable energy infrastructure are using more copper than their fossil fuel predecessors Copper demand is driven largely by demand from China, currently the largest consumer of the metal in ore, concentrate and refined form. Key drivers include China s overall economic growth, growth in urban populations and infrastructure, and growth in spending by Chinese consumers SUPPLY OVERVIEW Copper Price Forecast Copper ore is found in the earth s crust and is mined from open pits or underground, depending on the terrain and what s most economically effective Latin America leads the world as the highest producing region for copper, Chile is highest with Peru coming in at second A near term deficit of copper supply driven by declining average grades, less frequent discoveries of higher grade deposits, greater country risks, infrastructure challenges in remote locations and limited exploration funding is expected Source: USGS, International Copper Study Group, Wood Mackenzie TSXV-PML Page 5

6 New Copper Cycle Emerging Again The Crisis of Declining Reserves INVESTMENT IN THE COPPER INDUSTRY IS HIGHLY PRO-CYCLICAL C D A A B C D E F A B D C E F A B E BOTTOM? F NEW CYCLE BEGINS Source: CRU World Copper Conference April 2017 Supply Pressures Refined Cu Shift to Cu Concentrates Concentrate Demand Growth Forecasted Shortages Chilean Mine Output Decline Begins 2014 China Mine Output Set to Decline China Shifting towards Concentrate imports Increasingly from shortage of Concentrate Supply TSXV-PML Page 6

7 Resurging Copper Price The New Cycle Emerges 5 Year Copper Spot Price 1 Year Copper Spot Price A $2.60 $3.05 New Base? +$3.15 $3.05 D BOTTOM F $2.10 $ Day Copper Spot Price $2.83 TSXV-PML Page 7

8 Largest Drivers of Demand Growth KEY REGIONAL DEMAND GROWTH Refined copper consumption expected to gain an additional 2.5 mt of demand from 2016 to 2022 DEMAND DRIVER: ELECTRIC VEHICLES The emergence of Electric Vehicles will increase the demand for copper Demand by Region in 2022E Key Growth Regions Refined copper consumption by region shows that emerging market economies are driving the lion s share of demand Despite China s lower growth profile, it remains the key driver for growth As electric vehicles are adopted by the global population there will be more global demand for copper The electric motor and battery are the a main drivers for the additional kilograms required Emerging markets will continue to increase the demand for copper compounded by new technologies like electric vehicles TSXV-PML Page 8

9 Peru A Mining Country Mining Investment By Region PIURA Canada 21% USA 12% UK 13% 6% Mexico 9% China 22% CAJAMARCA More than 10% Between 1% & 10% Less than 1% 22% Country US$ Million % China 10,189 22% APURIMAC 21% AREQUIPA 11% Source: Peru Ministry of Energy & Mines MOQUEGUA 13% COTABAMBAS CU/AU/AG PROJECT ANTILLA CU/MO PROJECT Canada 9,877 21% United Kingdom 6,000 13% United States 5,535 12% Peru 5,029 11% Mexico 4,160 9% Australia 3,135 7% Brazil 1,996 4% Japan 490 1% Total 46, % TSXV-PML Page 9

10 Mining Friendly Peru POLITICAL AND ECONOMIC STABILITY 1990 TO PRESENT KEY FISCAL REFORMS GROWING MINING SECTOR 7 Governments 5 Political Parties 6 Presidents Modernizing Pro Mining Framework 1st Producer of zinc, lead and gold in Latin America 2nd Producer of copper, silver and molybdenum in Latin America Producer of silver, copper and zinc worldwide Reduction of Corporate Income Tax Rate to 29.5% Replace Top Line Royalty with Scale Royalty on Operating Margins Tax Stability Agreement allows for Accelerated depreciation 2nd 4th 5th Producer of lead and molybdenum worldwide Largest mining country in the world Mining Represents approx. 14% of Peru s GDP and Copper Mining accounts for 6% and about 50% of exports Projects expected to receive US$32 Billion of investments by 2021, representing 65% of the mining sector total Over 95% of Cu Production is exported Total Mining Investments during 2016 reached US$43 Billion Mining Project Portfolio $46 Billion Left: MARTIN VIZCARRA CORNEJO President of Peru Right: FRANCISCO ÍSMODES MEZZANO Minister of Energy and Mines TSXV-PML Right: FRANCISCO Page 10

11 Peru A Copper Country with Power Antapacay, Glencore Antamina, Teck Growing Power Supply Soc Minera Cerro Verde Toromocho, Chinalco Constancia, Hudbay Minerals Las Bambas, MMG Cerro Verde, Soc. Minera Cerro Verde Quellaveco, Anglo American Mina Justa, Minsur Toquepala, Grupo Mexico Tia Maria, Grupo Mexico Cotabambas, Panoro Minerals Antilla, Panoro Minerals Corocohuayco, Xstrata Trapiche, Buenaventura Haquira, First Quantum Double Cu Production 2011 to / No. 2 Worldwide 421,000 tonnes/year concentrate 108,000 tonnes/year refined Cu 5.6% of Peru s 2015 Production ,000 MW power / capacity growth ,000 MW power / supply excess Power Costs ( /kwhr) Peru 6.1 Chile 12.1 Canada 5.3 Australia 8.9 doubled Los Chancas, Grupo Mexico Quechua, Pan Pacific Copper Towards World s Top Cu Producer Zafranal, Teck / Mitsubishi TSXV-PML Page 11

12 Panoro Projects District Potential - Infrastructure CUSCO COTABAMBAS Panoro X Calca X Pisac X $1.5B LOS CHANCAS ICA ANTILLA Grupo Mexico $1.6B ABANCAY LAS BAMBAS MMG $7.0B X HAQUIRA First Quantum $2.8B Panoro $0.3B CONSTANCIA Hudbay $1.7B MINA JUSTA Minsur $1.7B ANTAPACAY Glencore $1.5B! ( RAILWAY PRIVATIZED & EXPANDING Marcona Port Future Expansion Potential ZAFRANAL Teck/Mitsubishi $1.5B AREQUIPA CURRENT CORRIDOR X PUNO CERRO VERDE Freeport Mac Moran $4.5B CUAJONE Grupo Mexico X $0.4B QUELLAVECO Matarani Port Privatized & Expanded MOQUEGUA X Anglo American TOQUEPALA $5.3B Ilo 1 Grupo Mexico $0.6B TSXV-PML Page 12

13 Cotabambas and Antilla Projects KEY PROJECT PARAMETERS (IN USD CURRENCY) COTABAMBAS 2 CU/AU/AG PROJECT (GROWTH TARGETS) ANTILLA 4 CU PROJECT (HEAP LEACH SX/EW) Mill Feed, life of mine million tonnes Mill Feed, daily tonnes 80,000 20,000 Strip Ratio, life of mine waste: process feed 1.25 : : 1 NPV 7.5% million USD After PEA Prices 2 IRR % Payback years After Tax NPV 7.5% million USD 967 (+42%) 350 (+15%) 6 months Peak IRR % 20.0 (+20%) 27.7 (+15%) Prices 3 Payback years 3.1 (-14%) 2.9 (-3.3%) Cu thousand tonnes Annual Average Au thousand ounces 95 - Payable Metals Ag thousand ounces 1,018 - Mo thousand tonnes - - Initial Capital Cost million USD 1, Prices in USD 2. At PEA commodity prices; Cu = $3.00/lb, Au = $1,250/oz, Ag = $18.50/oz, Mo = $12.00/lb 3. At Spot commodity prices; Cu = $3.25/lb, Au = $1,340/oz, Ag = $17.30/oz, Mo = $7.26/lb (October 16, 2017) 4. At PEA commodity prices; long-term Cu = $3.05/lb Luquman Shaheen; President & CEO, and Luis Vela, Vice President of Exploration for Panoro and a "qualified person" under National Instrument , has reviewed and approved the scientific and technical information TSXV-PML Page 13

14 Cotabambas Project Targeting Growth SEPTEMBER 2015 PEA BEFORE TAX $1,052M NPV 20.4 % IRR 3.2 Year Payback CASH COSTS, NETS OF BY PRODUCTS CREDITS C1 $1.22/lb Cu C2 $1.94/lb Cu AFTER TAX $683M NPV 16.7 % IRR 3.6 Year Payback ANNUAL PAYABLE METALS 155 M lbs Cu 95 k oz Au 1,018 k oz Ag LIFE OF MINE PAYABLE METALS 2.6 B lbs Cu 1.6 M oz Au 17 M oz Ag CLEAN CONCENTRATE 27% Cu 11 g/t Au 134 g/t Ag Cu = $US3.00/lb, Au = $US1,250/oz, Ag = $US18.50/oz Luis Vela, Vice President of Exploration for Panoro and "qualified persons" under National Instrument , have reviewed and approved the scientific and technical information TSXV-PML Page 14

15 Cotabambas Project Capital Costs and Enhancements Item COTABAMBAS INITIAL CAPEX (US$ MILLIONS) Cost 2 Mine Equipment $236 Mine Development $127 Mine Infrastructure $17 Tailings Starter Dams $4 Tailings Disposal System $73 Process Plant $505 1 Site Infrastructure $67 Off Site Infrastructure $27 Mine Closure $50 Subtotal $1,106 1 Grow Resource Reduce Costs Increase Margins Owners Cost $40 Indirect Costs $152 Subtotal $1,298 Add High Grade Sulphides Add Low Cost Oxides Improve Metallurgical Recovery Contingencies $235 Initial Capital Cost $1,533 2 nd Quartile Capital Efficiency ($7.6/lb Cu eq ), Targeting 1st Quartile Luis Vela, Vice President of Exploration for Panoro and a "qualified person" under National Instrument , has reviewed and approved the scientific and technical information TSXV-PML Page 15

16 Cotabambas Project Deposit Resource & Growth Potential Company Year Drill Holes Metres Antofagasta 1995 to ,538 CDLM 2002 to ,252 1 Panoro 2007 to ,785 Panoro 2012 to ,467 4 Panoro 2013 to ,946 Panoro 2017 to ,805 Total ,793 Resource Category Zone Million tonnes Cutoff Grade % Cu eq Cu % Au g/t Ag g/t 3 Indicated Hypogene Supergene Oxide Cu-Au Oxide Au Total Inferred Hypogene Supergene Oxide Cu-Au Oxide Au Total Source: April 2015 NI Technical Report prepared by Amec Foster Wheeler & Tetra Tech Luis Vela, Vice President of Exploration for Panoro and a "qualified person" under National Instrument , has reviewed and approved the scientific and technical information TSXV-PML Page 16

17 Cotabambas Project 2017 Cluster 1 Exploration Program 1 MARIA JOSE 2 BRECCIA 3 PETRA-DAVID TARGETS TARGET TARGET NEAR SURFACE SULPHIDES & OXIDES NEAR SURFACE OXIDES CU OXIDES CB m 0.34% Cu, 0.06 g/t Au, 1.6 g/t Ag CB m 0.54% Cu, 0.06 g/t Au, 2.52 g/t Ag 56.3m 0.41% Cu, 0.05 g/t Au, 2.19 g/t Ag 187.7m 0.25% Cu, 0.04 g/t Au, 1.75 g/t Ag 22.9m 0.48% Cu, 0.08 g/t Au, 3.39 g/t Ag CB m 0.41% Cu, 0.06 g/t Au, 2.3 g/t Ag 2.7m 1.03% Cu, 0.11 g/t Au, 6.8 g/t Ag 74.8m 0.24%-0.78% Cu, 0.03 g/t g/t Au, 1.3 g/t-2.7 g/t Ag CB m 0.23% Cu, 0.02 g/t Au, 1.1 g/t Ag, incl. 9.0 m 0.43 % Cu, 0.03 g/t Au, 1.1 g/t Ag 34.9m 0.30% Cu, 0.02 g/t Au, 1.3 g/t Ag CB m 0.41% Cu, 0.06 g/t Au, 2.0 g/t Ag, incl m 0.56% Cu, 0.10 g/t Au, 2.8 g/t Ag 52.9m 0.46% Cu, 0.07 g/t Au, 2.1 g/t Ag CB m 0.9 g/t Au, 1.1 g/t Ag, 0.01% Cu, incl. 2.4m 1.52 g/t Au, 0.8 g/t Ag, 0.01% Cu CB-154 2m 0.75 g/t Au, 3.4 g/t Ag, 0.02% Cu CB m 0.85 g/t Au, 39.6 g/t Ag, 0.03% Cu 2018 DRILL PROGRAM INCLUDES ADDITIONAL DRILLING AT THESE TARGETS CB m 0.35% Cu, 0.09 g/t Au, 2.7 g/t Ag, incl m 0.44 % Cu, 0.12 g/t Au, 2.8 g/t Ag 49.3m 0.24 % Cu, 0.07 g/t Au, 1.7 g/t Ag, incl. 30.2m 0.32% Cu, 0.09 g/t Au, 2.2 g/t Ag 12.0m 0.40% Cu, 0.09 g/t Au, 3.2 g/t Ag CB m 0.32% Cu, 0.08 g/t Au, 2.2 g/t Ag, incl m 0.48 % Cu, 0.12 g/t Au, 2.6 g/t Ag 10.0m 0.57 % Cu, 0.14 g/t Au, 2.2 g/t Ag CB m 0.38% Cu, 0.10g/t Au, 4.9 g/t Ag, incl. 27.1m 0.58 % Cu, 0.14 g/t Au, 2.9 g/t Ag CB m 0.20% Cu, 0.07 g/t Au, 1.8 g/t Ag, incl. 7.6 m 0.39% Cu, 0.13 g/t Au, 2.4 g/t Ag 8.6m 0.29 % Cu, 0.08 g/t Au, 2.3 g/t Ag Luis Vela, Vice President of Exploration for Panoro and a "qualified person" under National Instrument , has reviewed and approved the scientific and technical information TSXV-PML Page 17

18 Cotabambas Project Exploration Target Rich Cluster 1 JANUARY TO JUNE 2018 CLUSTER 1 $MCAD Pre-Drilling 0.08 Drilling (5,000m) 0.99 Supporting 0.35 Geology 0.31 Grassroots 0.23 Indirects 0.91 Contingency 0.24 Total Budget ,173m drilling completed in 2018 Luis Vela, Vice President of Exploration for Panoro and a "qualified person" under National Instrument , has reviewed and approved the scientific and technical information TSXV-PML Page 18

19 Panoro Minerals Valuation Potential STREAM AGREEMENT CAPPED POST 90M AG EQ OZ OPTION CHANGE OF CONTROL 8.0% 5.3% 4.0% PAYMENTS USD (M) STREAM REDUCTION IN FUTURE CAPTURES EXPLORATION UPSIDE FLEXIBILITY FOR ACQUIRER OF PROJECT Advance $140 Gold Delivery $ 180 Exploration Funding Derisked Financing Flexibility Validation of Project Silver Delivery $ 100 Total $ 420 Development Funding Custom Fit Agreement Valuation Benchmark Leveraged for 2016 Placement TSXV-PML Page 19

20 Cotabambas Project Cluster 1 and Cluster 2 Project Scale Expansion Potential CLUSTER 1 CLUSTER 2 SECTION Chalcobamba Chaupec Target Guaclle Target Buenavista Target Cochapata Target Maria Jose Target Sulfobamba Ccalla Deposit SKARN POTENTIAL PORPHYRY Ccayrayoc Target CLUSTER 2 Jean Louis Target Ferrobamba Azulccacca Deposit APPROVAL OF ENVIRONMENTAL IMPACT ASSESSMENT EXPANSION AT COTABAMBAS PROJECT, PERU AUGUST 20, 2018 Las Bambas Pits overlay Panoro s targets Km SKARN ZONE 1 For scale comparison only. TSXV-PML Page 20

21 Cotabambas Project Targets INCREASE ADD IMPROVE EXPLORE HIGH GRADE LOW COST METALLURGICAL SCALE CHANGING RESOURCE RESOURCE RECOVERIES POTENTIAL NEAR SURFACE SULPHIDES OXIDE AU/AG HEAP LEACH MIXED & OXIDE RESOURCES SKARN DISCOVERY OXIDE CU HEAP LEACH & SX/EW PORPHYRY DISCOVERY ENHANCEMENT OBJECTIVES INCREASE RESOURCE INCREASE AVERAGE GRADE INCREASE PAYABLE METALS HIGHER NPV REDUCED PAYBACK LONGER MINE LIFE HIGHER IRR REDUCED CASH COSTS REDUCED START-UP CAPITAL Luis Vela, Vice President of Exploration for Panoro and a "qualified person" under National Instrument , has reviewed and approved the scientific and technical information TSXV-PML Page 21

22 Antilla Project Heap Leach SX/EW Project Initial Capital Pretax After Tax Cash Costs LOM Cashflow $US 250 M NPV $US 520 M IRR 34.7% PAYBACK 2.6 NPV $US 305 M IRR 25.9% PAYBACK 3.0 C1 $1.51/lb C2 $ 1.82/lb $US 1.0 B pretax $US 669 M after tax Antilla Initial CAPEX (US$ millions) Cu = $US3.05 long-term Cu price/lb Item Cost Mine Equipment $0 Mine Development $41 Process Plant $95 Tailings Storage Facility $0 Infrastructure $42 Subtotal $178 Owners Cost $8 Indirect Costs $14 Subtotal $200 Contingencies $50 Total Initial Capital Cost $250 Luis Vela, Vice President of Exploration for Panoro and a "qualified person" under National Instrument , has reviewed and approved the scientific and technical information TSXV-PML Page 22

23 Antilla Project Heap Leach SX/EW PEA Summary PEA DESIGN PARAMETERS HIGH GRADE NEAR / AT SURFACE 119 Mt Mill Feed 20,000 tpd 17 year LOM 1.38 Strip Ratio 163 Mt wasterock 0.44% Cu Grade 72.5% in 200 Days No Tailings Dam Payable Metal 21 Kt/year Cu Cu Cathode LOM Payable Metal 358 Kt Cu Cathode HIGH GRADE NEAR / AT SURFACE Column Tests 79.9% in 150 Days Potential 11% increase in Production and 30% increase in Value Cu = $US3.05 long-term Cu price Luis Vela, Vice President of Exploration for Panoro and a "qualified person" under National Instrument , has reviewed and approved the scientific and technical information TSXV-PML Page 23

24 Antilla Project Growth Potential KEY PROJECT PARAMETERS (IN USD CURRENCY) HEAP LEACH PROJECT 3 HEAP LEACH GROWTH POTENTIAL 4 Mill Feed, life of mine million tonnes Mill Feed, daily tonnes 20,000 35,000 Strip Ratio, life of mine waste: process feed 1.38 : : 1 NPV 7.5% million USD After Tax IRR % 25.9 PEA Prices Payback years Annual Average Payable Metals Cu thousand tonnes Au thousand ounces - - Ag thousand ounces - - Mo thousand tonnes Initial Capital Cost million USD Prices in USD 2. At PEA commodity prices; Cu = $3.00/lb, Mo = $12.00/lb 3. At PEA commodity prices; long-term Cu = $3.05/lb 4. Conceptual level estimate Luquman Shaheen; President & CEO, and Luis Vela, Vice President of Exploration for Panoro and a "qualified person" under National Instrument , has reviewed and approved the scientific and technical information TSXV-PML Page 24

25 Antilla Project Heap Leach SX/EW Optimized Mine Plan Increased Grade 0.31% to 0.43% Secondary Sulphides 117 Mt, 98% of feed Indicated Category 95% of mine plan Reduced Throughput Cathode Production 21.0 Kt/yr Strip Ratio 1.38 Mine Plan 20,000 tpd Life of Mine 17 years Lower Capital and Operating Costs Cu Recovery 72.5% from leaching secondary Sulphides Capital Cost reduced 59% C1, C2 Costs Reduced 18-23% Eliminated Sustaining Capital Costs No Tailings Dam Use Contract Mine Fleet Maximized Project Cash Flows After Tax NPV +36% IRR + 72% Payback -27% NPV/Capex > 1 Capital Intensity, lower quartile 5.41 Roadmap to Permit Infill Drilling $ 2 million, 3 months Feasibility Study $ 2 million, 7 months Impact Assess & Approval $ 0.5 million, 22 months TSXV-PML Page 25

26 Panoro Minerals Valuation Metrics COTABAMBAS VALUATION (M CAD) Legend 5 indicates 5 /lb Cu eq in M/I/I Resource 10 indicates 10 /lb Cu eq in Mineable Resource 0.4 indicates 40% of NPV 0.8 indicates 80% of NPV MARCH 2012 PML Market Capitalization $120M 6 /lb Cu eq South 32 OCTOBER 2017 BHP Antilla + Cotabambas = 10.5B lb Cu eq $630M Valuation Potential TSXV-PML Page 26

27 Copper Sector Rebound DEVELOPERS Panoro 44% COPPER SECTOR MARKET CAPITALIZATION PEAK VS. TODAY (US$BN) RELATIVE PERFORMANCE OF COPPER SECTOR (LAST TWELFE MONTHS) Excelsior Entrée Copper Average NGEx Nevada Copper (7%) (7%) (11%) 18% 7% 26% JUNIOR PRODUCERS & SELECT DEVELOPERS PEAK VS. TODAY (US$MM) Copper Fox (19%) Western Copper (37%) Norhtern Dynasty (71%) Source: Bloomberg; Capital IQ; Street research Note: Peer groups are not exhaustive and are comprised of companies in existence for entire time series; Peak as at February 14, 2011; Low as at January 15, 2016; Current as at July 5, 2018 TSXV-PML Page 27

28 Future Copper & Gold Explore Companies FUTURE SPIN-OUT COTABAMBAS PANORO COPPER ROYALTY LTD. ANTILLA FUTURE SPIN-OUT FUTURE SPIN-OUT Panoro Copper Exploration Ltd. El Rosal Panoro Gold Exploration Ltd Utupara (JV Project) Chap. - Chapi (JV Project) Cochasayhuas Promesa KUSIORCCO 2% NSR Checca HUMAMANTATA Anyo Sancapampa Morosayhuas TSXV-PML Page 28

29 Management & Directors Peru Experience MANAGEMENT Luquman Shaheen, PEng, PE, MBA President & Chief Executive Officer & Director Over 27 years experience in mining sector, 20 years experience in Peru and Latin America Shannon Ross, CPA,CA Chief Financial Officer Over 25 years experience in accounting and financial management in the mining sector Yves Barsimantov Vice President Operations & Peru General Manager 20 years management experience with Peruvian banking, fishing and mining sector Luis Vela, P.Geo., MSc.Econ.Geology Vice President Exploration Over 25 years exploration experience in Peru and Chile mining sector DIRECTORS WILLIAM BODEN, CPA,CA CHAIRMAN Former Chairman of First Coal Corporation AUGUSTO BAERTL DIRECTOR Over 50 years of experience in the Peruvian and International Mining Sector RONALD HALL DIRECTOR Over 40 years of experience in the management, operation, evaluation and design of mining projects globally ANTHONY LAUB DIRECTOR Partner at Laub & Quijandria Consultores y Abogados CHRISTIAN PILON EXECUTIVE DIRECTOR PERU DIRECTOR Over 30 years of experience in applied geophysics and mining sector, resident in Peru CHRISTIAAN STAARGAARD, MSC, PGEO DIRECTOR Over 40 years experience in exploration including as a Director or Senior Officer of public companies since 1990 LORNE TORJHELM DIRECTOR President RNJ Ventures TSXV-PML Page 29

30 Panoro History Acquisition of CDLM 90 Mt Resource at Cotabambas $20M Financing Antilla Drill Program Antilla Community Agreement 154 Mt Resource Antilla Project Cotabambas Community Agreement $6.6 M Financing Antilla Infill Drilling Cotabambas Drill Program $7.8M Financing Cotabambas Community Agreement 404 Mt Resource at Cotabambas Project $13.8M Financing Cotabambas Drill Program Mt Resource at Cotabambas Project 334 Mt Resource Antilla Project Cotabambas Drill Program $6.5 M Financing Maria Jose Zone at Cotabambas Cotabambas Drill Program Completed Cotabambas PEA Completed & Optimized Cu Oxide Target at Cotabambas Antilla PEA & 382 Mt Resource Cotabambas Community Agreement Chaupec Target Cluster at Cotabambas Cotabambas Resource Growth Drilling Antilla Optimization Study Gold Oxides Targets at Cotabambas Cotabambas Cluster 1 and Cluster 2 Growth Antilla PEA Update TSXV-PML Page 30

31 Conclusions COTABAMBAS PROJECT Large scale copper project, greater potential, strategic location ANTILLA PROJECT Moderate scale project, potential to monetize FINANCED Funding in Place $21.6M CAD COPPER Principal commodity with supply constraints coming and demand strong COTABAMBAS PERU Key copper producing nation with goal to become largest copper producer nation ANTILLA VALUATION POTENTIAL Significant Valuation Growth Potential for New Cycle TSXV-PML Page 31

32 TSXV:PML Frankfurt:PZM BVL:PML For further information, contact: Luquman Shaheen, President and CEO Phone: TSXV-PML