TSX : RNX RNC MINERALS Focused on Value Creation April 26, 2017
Disclaimer Cautionary Statements Concerning Forward-Looking Statements This presentation provides certain financial measures that do not have a standardized meaning prescribed by IFRS. Readers are cautioned to review the stated footnotes regarding use of non-ifrs measures. This presentation contains "forward-looking information" including without limitation statements relating to the guidance for production; costs of sales, C1 cash costs, all-in sustaining costs and capital expenditures, and relating to the potential of the Beta Hunt Mine and the Reed Mine. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RNC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: future prices and the supply of metals; the results of drilling; inability to raise the money necessary to incur the expenditures required to retain and advance the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash costs, failure to obtain regulatory or shareholder approvals. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to RNC's filings with Canadian securities regulators available on SEDAR at www.sedar.com. Although RNC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this presentation and RNC disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. Cautionary Statement Regarding the Beta Hunt Mine The decision by SLM to produce at the Beta Hunt Mine was not based on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that that anticipated production costs will be achieved. Failure to achieve the anticipated production costs would have a material adverse impact on SLM s cash flow and future profitability. It is further cautioned that the PEA is preliminary in nature and includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. No mining feasibility study has been completed on Beta Hunt. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the PEA will be realized. Cautionary Note to U.S. Readers Regarding Estimates of Resources This presentation uses the terms "measured" and "indicated" mineral resources and "inferred" mineral resources. The Company advises U.S. investors that while these terms are recognized and required by Canadian securities administrators, they are not recognized by the SEC. The estimation of "measured" and "indicated" mineral resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. The estimation of "inferred" resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. It cannot be assumed that all or any part of a "measured", "inferred" or "indicated" mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of "inferred mineral resources" may not form the basis of feasibility studies, pre-feasibility studies or other economic studies, except in prescribed cases, such as in a preliminary economic assessment under certain circumstances. The SEC normally only permits issuers to report mineralization that does not constitute "reserves" as in-place tonnage and grade without reference to unit measures. Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. U.S. investors are cautioned not to assume that any part or all of a "measured", "indicated" or "inferred" mineral resource exists or is economically or legally mineable. Information concerning descriptions of mineralization and resources contained herein may not be comparable to information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC. 2
Highly Experienced Management Team and Board 3
RNC Value Proposition Western Australia Quebec, Canada Manitoba, Canada Quebec and Carolinas Beta Hunt Mine Nickel JV Entity Reed Mine (30%) Gold, Nickel Producer Ramping up gold production to 65-70koz in 2017, net AISC US$900-1,000/oz Massive exploration potential Westgold SKO mine / mill purchase option pro forma 120+koz gold annually RNC - Waterton 50/50 JV to advance Dumont and grow nickel business Dumont project: structurally low cost, large scale, shovel ready nickel project 3rd largest nickel reserve in the world and 5 th largest nickel sulphide discovery ever www.royalnickel.com Copper Producer 2017 Production Guidance: Copper: 4.0-5.0 kt; Gold: 0.8-1.1 koz (30% basis) Low cost production, 2016 AISC US$1.49/lb Ongoing cash flow from January 2017 Exploration Spin-Out Exploration projects in Northern Quebec and U.S. Carolina Gold Belt Qiqavik - new high grade gold mineralization discovery adjacent to West Raglan Project West Raglan Advanced high grade Ni-Cu-PGM Multiple exploration properties in highly prospective Carolina Gold Belt 4
Beta Hunt Mine: Excellent Location in Established Mining Camp, Close to Nickel and Gold Mills 600 km east of Perth, Western Australia Kalgoorlie goldfield 85 Moz since 1890 Kambalda Ni 1,400 kt Ni over 50 years Long established major mining centre Large local mining workforce & service industry Beta Hunt Source: Beta Hunt Mine PEA dated March 4, 2016 available at www.royalnickel.com and www.sedar.com 5
Beta Hunt Mine: Existing Ramp Infrastructure in Close Proximity To Gold & Nickel Resources Beta Hunt is an exceptional mine with significant gold resource potential near existing underground infrastructure Significant infrastructure in place 5+ km under ground ramp Significant potential for resource expansions at relatively low cost and in close proximity to mine infrastructure provide future growth options Recently filed PEA has 92 koz Indicated Resource and a further 321 koz Inferred Resource in A Zone, Western Flanks and Beta areas Exploration resource target: 300-550 koz Significant potential for extensions to known resources along strike and at depth Potential for additional parallel structures Bonanza potential at Hand of Faith, potential for multiple Hand of Faith areas It should be noted that the identified Exploration Targets are conceptual in nature and there has been insufficient exploration to define them as Mineral Resources, and, while reasonable potential may exist, it is uncertain whether further exploration will result in the determination of a Mineral Resource under NI 43-101. The identified potential of the Exploration Targets are is not being reported as part of any Mineral Resource or Mineral Reserve. Source: Beta Hunt Mine PEA dated March 4, 2016 available at www.royalnickel.com and www.sedar.com www.royalnickel.com 6
Beta Hunt Mine: Historically, Focus Has Been On Nickel Exploration and Production Historical nickel focus is reflected by ~675km of drilling that targeted nickel troughs on ultramafic/basalt contact Very limited drilling greater than 100 m below contact where gold is located Last significant gold mining by WMC in 1985 Historical open pit mine Source: Salt Lake Mining 7
Beta Hunt: Massive Exploration Potential Gold Intersections Across 4 km Strike Length 675,000 metres of historical nickel drilling has yielded gold intersections along a strike length, 3 major structures of 4 km each (A Zone, Western Flanks, Fletcher) Recent drilling under previously mined nickel deposits successfully extended A Zone by 500 metres Fletcher Trend discovered through drilling in July 2016 www.royalnickel.com 8
Beta Hunt: Massive Exploration Potential A Zone Drilling Success Confirms Structure Recent drilling results in A Zone confirm ability to use previously mined nickel areas as outcrop to target potential gold zones below Well-understood structures allow productive exploration drilling Allows use of historic nickel deposits to target gold and vice-versa Multiple nickel deposits south of Alpha Island Fault have limited gold drilling and support potential of Fletcher Trend Specimen Stones from A Zone www.royalnickel.com 9
Massive Exploration Potential A Zone Extension Rapid Discovery to Production A Zone Extension less than 50 metres from existing development for Western Flanks Allows 2 for 1 - Get access to 2 nd deposit from same set of development Highlights: WF16-011: 1.48m @ 4.05g/t including 0.35m @ 10.60g/t WF16-013: 3.20 @ 2.69g/t including 0.75m @ 9.34g/t WF16-014: 2.80m @ 4.24g/t including 1.00m @ 7.99g/t WF16-015: 2.85m @ 6.71g/t including 1.00m @ 8.74g/t WF16-016: 4.45m @ 7.31g/t including 2.05m @ 10.15g/t WF17-008: 3.00m @ 5.97g/t including 1.50m @ 11.38g/t and 4.45m @ 4.77g/t Section view looking northwest showing the A Zone Extension drill results and proximity to existing underground infrastructure as well as the Western Flanks resource. Section window is +/- 125m. 10
Massive Exploration Potential A Zone and A Zone Extension Infill Drilling Recent A Zone drill results increase confidence in near term production from southern extension and resource expansion Highlights A Zone Extension: WFE17-03: 7.08m @ 8.28 g/t including 0.35m @ 10.60 g/t WFE17-04: 4.00m @ 10.71 g/t including 2.15m @ 16.75 g/t WFE17-07: 9.95m @ 3.07 g/t including 3.83m @ 4.02 g/t Longitudinal view looking northeast showing the A Zone infill drill results and proximity to existing u/g infrastructure A Zone Infill: AZ13-029: 5.52m @ 6.51 g/t including 3.30m @ 7.59 g/t AZ13-027: 11.85m @ 2.81 g/t including 2.40m @ 5.75 g/t AZ13-024: 10.09m @ 2.82 g/t including 6.25m @ 3.74 g/t A Zone Longitudinal view looking to the northeast with significant new infill drill results highlighted A Zone Extension Longitudinal view looking to the northeast with significant new infill drill results highlighted 11
Beta Hunt: Massive Exploration Potential Western Flanks Re-Interpretation Re-interpretation of Western Flanks to use much larger scale bulk mining approach as mineralization much more continuous than originally believed Larger ~20 metre stopes rather than multiple narrower 3-10 metre wide veins New information being utilized to update the mine block model and facilitate planned bulk mining 12
Beta Hunt: SKO Asset Purchase Option and Toll Processing Rights Provide Synergy Potential and Lower Costs Transactions are a significant step forward for RNC and its Beta Hunt mine 12 month tolling agreement with Westgold s Jubilee Mill Lowers tolling and transportation costs - generating $7 million in savings over 12 month period - reduces AISC costs by US$80 per ounce during tolling period Purchase option to acquire Westgold s South Kalgoorlie Operations (SKO) for A$80M would transform RNC s Beta Hunt mine / Western Australian assets A multi-mine operation anchored by 1.2 Mtpa mill with 4 million ounce resource base and 1000+ km 2 land package in prolific gold belt Pro forma gold production of 125+ kozpa from 2 underground mines (Beta Hunt, HBJ) and several open pit mines at AISC of US$950 per ounce Locks in annual mill synergies of $7 million with potential future annual savings to $10-$12 million with production growth at Beta Hunt Option structure allows RNC to focus on realizing value from completion of the first phase ramp-up at Beta Hunt before exercising with a structure that maximizes value for our shareholders Significant endorsement from experienced Western Australia operator Westgold (recent gold spinout from Metals X) is receiving a total of $8 million in RNC paper ($4 million for purchase option and $4 million for right to toll) and is willing to accept additional RNC equity as part of the consideration for a purchase of SKO up to 19.9% of RNC Westgold (Metals X) is an experienced and well-respected Western Australia mining company 13
Beta Hunt: Toll Agreement with SKO Gold Processing Facility in Western Australia Toll agreement will lower milling costs compared to current arrangements, beginning July 1, 2017. Expected savings of over $7 million over a 12-month period Agreement with Westgold grants RNC access to 50% of capacity at SKO s 1.2 Mtpa Jubilee gold mill for 12-month period beginning July 1, 2017 SKO Jubilee Mill Nearest active toll mill to Beta Hunt mine ( ~30km) Beta Hunt has successfully completed several toll milling campaigns at this facility www.royalnickel.com 14
Purchase Option SKO Mine & Mill Operations in Western Australia Purchase option for A$80M to acquire Westgold s South Kalgoorlie Operations (SKO): A multi-mine operation anchored by 1.2 Mtpa mill with 4 million ounce resource base and 1000+ km 2 land package in prolific gold belt According to Westgold: 1000+ km 2 land package SKO JORC compliant resource/reserves: 3.7 Moz of gold from a Measured, Indicated, and Inferred Resource of 50.9 Mt of ore grading 2.27 g/t Au Including 192koz of Proven and Probable Reserve of 2.3 Mt of ore grading 2.60 g/t Au. Production: 60 kozpa for 3+ years Costs: Steady state AISC of ~ A$1,250/oz ($US 950/oz) Source: Westgold corporate presentation dated 1/27/2017 15
Purchase Option SKO Exploration Potential Westgold s exploration of the SKO properties is delivering success both at HBJ (U/G) mine and open pit operations At HBJ underground mine, highlights include: HBJ-223: 6.94m @ 21.4 g/t from 90m HBJ-224: 9.04 m @ 18.4 g/t from 143m HBJ-226: 3.1m @ 10.68 g/t from 172m Bakers Flat: BKRC057: 6m @ 2.35 g/t from 27m BKRC058: 6m @ 4.36 g/t from 31m George s Reward: 23m @ 2.2 g/t from 18m Samphire: SOSRC041: 5m @ 3.48 g/t from 22m New discovery at Rinjani: ZUC172: 4m @ 4.41 g/t from 24m ZUC174: 4m @17 g/t from 8m; 28m @ 2.41 g/t from 28 m; and 4m @ 5.2 g/t from 72m Source: Westgold quarterly report for period ended 12/31/2016 www.royalnickel.com 16
Reed Mine Overview Reed Mine 2016 Operating Review (100% basis) Q4 2016 Q3 2016 Q2 2016 Q1 2016 Ore (tonnes hoisted) 104,719 112,929 114,452 111,461 Ore (tonnes milled) 123,596 119,795 111,002 94,997 Copper (%) 2.90 3.59 4.87 4.38 Zinc (%) 0.63 0.59 0.45 0.82 Gold (g/t) 0.44 0.42 0.60 0.54 Silver (g/t) 5.76 6.61 7.47 7.21 Reed Mine 2016 Operating Review (30% basis) 1 2016 Copper contained in concentrate (kilo tonnes) 1 5.0 Gold contained in concentrate (ounces) 1 1,357 Copper operating cash cost per pound sold 2 $1.40 Copper all-in sustaining cost per pound sold 2 $1.49 1.Production figures are full year 30% share of production attributable to VMS 2.Cash cost and all-in sustaining cost per pound sold, net of by-product credits. Cost s above are for the April 27 December 31, 2016 period (RNC closed the acquisition of its interest in Reed on April 27,2016). Polishing Pond Portal Entrance Waste Pad 2017 production guidance (30% basis): 4-5 kt copper and 0.8-1.1 koz of gold 2016 production of 11 M lbs copper (5.0 kt) and 1.4 koz of gold 2016 AISC of US$1.49/lb Reed contributes cash flow to RNC beginning in January 2017 (contribution and bridge loan owed to Hudbay have been repaid) 17
Unique Partnership with Waterton Establishing a Well-Funded Joint Venture Arrangement to Create and Unlock Value within the Global Nickel Industry Strong Partnership RNC Minerals and Waterton to create a 50/50 joint venture limited partnership ( JV Entity ) to advance Dumont and acquire high quality nickel assets globally Well-Funded Funded with US$35M in capital commitments to develop Dumont and acquire additional nickel assets, and backed by Waterton s two largest funds with a total of US$1.725B in committed capital Focused on Nickel The joint venture s objective is to establish a pure play nickel company with multiple projects operating in stable jurisdictions Advancement of Dumont Waterton s acquisition of 50% of Dumont for US$22.5 million (C$30 million) in cash valuing Dumont at C$60 million. Provides funding to continue to advance Dumont. 18
RNC Waterton Joint Venture First of its Kind Platform for Growth Unlocking value in Dumont through a strategic joint venture partnership 50% 50% JV Entity 100% interest in Dumont US$35 million in capital commitments US$5 million to continue to advance Dumont US$30 million to acquire additional nickel assets www.royalnickel.com 19
Dumont Nickel Project Structurally Low Cost Project in Excellent Jurisdiction 19
RNC s Dumont Nickel Project: A Billion Dollar Opportunity Source: Company reports and Wood Mackenzie Ltd. (December 2011); RNC 105ktpd (LOM) vs 2012 production for other projects 20
Dumont One of Largest Nickel Sulphide Discoveries Ever and Largest Since 1960 RNC s Dumont Project Source: Vale presentation at the Metal Bulletin 3 rd International Nickel Conference, London, April 29, 2015 22
Dumont RNC s Nickel Roasting Approach A Significant Breakthrough RNC s strategic alliance with Tsingshan led to the development of the first integrated nickel pig iron ( NPI ) plant to directly utilize nickel sulphide concentrate as part of the stainless steel production process through concentrate roasting Significant potential benefits to producers of suitable nickel sulphide concentrate feed such as RNC s Dumont Project: Lower costs due to simpler processing compared to traditional smelting and refining Higher payabilities than traditional smelting and refining Greater flexibility for more potential partners and customers Ferro-nickel puck produced from Dumont concentrate Roasted nickel concentrate is effectively a very high grade laterite ore feed creates new source of demand for nickel sulphide concentrate, notably at a time when many NPI and ferronickel producers face feed shortages as a result of Indonesia s nickel ore export ban 23
Dumont - World Class Cobalt Potential Cobalt projects are receiving significant market attention - Dumont is a shovel ready project that hosts one of the largest cobalt resources outside of Africa and would be the largest cobalt miner in North America once in production* 2016 North American Cobalt Production by Operation (ktpa) Contained Cobalt Resource by Operation (kt) 1.6 1.1 1.0 0.9 0.9 0.7 386 356 126 Company or Project Market Cap (US$) Clean Teq 429 ecobalt Solutions 119 Havilah Resources 89 Dumont (Implied) 45 Ardea KNP 29 114 Reserve 60 27 13 * Based on 2013 Dumont Feasibility Study; Source: Company reports; market capitalizations as of March 30, 2017 24
Qiqavik and West Raglan Exploration Projects RNC recently announced multiple high grade gold and gold-copper discoveries at its Qiqavik project Located in a virgin volcano-sedimentary belt within an established mining district 70 km from Glencore s Raglan Mine Qiqavik Property extends over 40 km from East to West and covers 243 km 2 www.royalnickel.com 25
Qiqavik Gold Exploration Potential Asset to be JV/Spun Out for Future Funding 2016 program discovered two new high grade gold mineralization zones, Aurora and Esperance, extending mineralized trend to over 40 km, more than doubling the known extent of the trend The prospecting results demonstrate the potential for the Qiqavik project to host important new gold and copper deposits (multiple grab samples returned 1-10% Cu) RNC to joint venture or spin out this asset to allow funding of future exploration programs with minimal dilution at the RNC level Map of Qiqavik Property Showing Significant Gold and Copper Exploration Results GET CHART THAT HAS COPPER GRADES AS WELL Source: RNC news release dated September 19, 2016 available at www.rncminerals.com and www.sedar.com 26
Qiqavik Gold and Copper Exploration Potential IP Survey Has Defined High Priority Targets Induced Polarization ( IP ) survey identified a 400m highly resistive felsic intrusive which hosts high grade gold in quartz veins (up to 189 g/t Au) and lies within a larger 2 km till anomaly Identified multiple large chargeable zones at Esperance (100m to 500m) which are parallel to the main shear zone and were not previously identified at surface due to overburden cover Open to the west, more IP planned for 2017 season High priority targets defined at Esperance and Aurora Source: RNC news release dated December 13, 2016 available at www.rncminerals.com and www.sedar.com 27
Qiqavik Tip of the Iceberg? Asset to be JV/Spun Out for Future Funding TNN has acquired the most prospective part of an under explored volcano sedimentary belt Au Cu Recipe ingredients: pre-, syn- & post tectonic intrusions Evidence of hydrothermal alteration Cherty/Sediment Fe-formations, Structures (shearing & thrusting) Observed high grade Au, Cu, Ag, Zn, Pb mineralization at surface Mineralization at surface over 40km Potential for further discoveries on land package as indicated by surface geochemistry Potential to expand new discoveries with IP and drilling Geophysical data (IP) data processing is ongoing, preliminary results identify good drilling targets Is Qiqavik the new next district scale Gold Copper camp? www.royalnickel.com 28
Carolina Gold Belt Properties Highly Prospective, Underexplored Jurisdiction TNN recently acquired options to earn a 70% interest in both the the Jones- Keystone/Loflin, and Landrum-Faulkner gold properties in the Carolina Gold Belt, home to the Haile Mine Jones-Keystone/Loflin Two zones of Haile-style gold mineralization over a 4.5 km trend Historic drilling: multiple intercepts: 1-3 g/t intervals over 100 m 1.56 g/t Au over 54m including 3.01 g/t Au over 28m 1.12 g/t Au over 74m including 2.59 g/t Au over 30m Landrum-Faulkner High-grade vein hosted gold mineralization occurring in the same volcanic sequence as the Haile and Ridgeway mines Historic drilling: Continuity over 300 m strike and 100 m depth 4.2 g/t Au over 17.8 m including 6.1 g/t Au over 11.3 m Location of CGR Projects in the Carolina Gold Belt, North and South Carolina www.royalnickel.com 29
Purchase Option Significant Re-Rate Potential in Junior Producer Peer Group 2017E Enterprise Value (US$M) Pro Forma Annual Production of >130koz (1), a ~100% increase, Positions RNC in Top Half of Global Junior Producers and for Significant Near-Term Re-Rating Enterprise Value (Sorted by 2017E Production Profile) $450 $400 $350 $300 $250 $200 $150 ~80% increase in share price $149 $100 $50 $0 PRU BDR PG SLR RNC RMS DRM ASR AR TMM RIC JAG RPM WDO MTO GQM ROG AGB Prod n (Koz AuEq) 154 149 145 143 135 133 132 116 116 97 94 90 60 50 40 34 31 20 AISC (US$/oz) $1,315 $923 $420 $926 $960 $779 $883 $905 $1,131 $955 $870 $900 $887 $1,125 $1,000 $1,082 $762 $879 Source: Bloomberg, Street Research (1) Assumes mid-range of RNC guidance for 2017E gold production and run-rate SKO production of 60-70koz per year. Excludes attributable production and liabilities from Reed Mine operations 30
Purchase Option Significant Re-Rate Potential on Production Profile EV/2017E Production (US$/oz) Strong Pro Forma Production Profile (1) Positions RNC as an Attractive Junior Gold Producer Global Junior Producers Enterprise Value to 2017E Production (US$/oz) $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 +90% to median $1,019 Median $1,388 $0 RMS DRM TMM RNC PF SLR RPM MTO PRU JAG BDR AR ASR PG GQM KDX RIC GUY WDO AGB Source: Bloomberg, Street Research (1) Assumes mid-range of RNC guidance for 2017E gold production and run-rate SKO production of 60-70koz per year. Excludes attributable production and liabilities from Reed Mine operations 31
Summary 2016 Moved from single asset development company into multi-asset gold, nickel and copper producer Beta Hunt 2016 gold production of 28 koz and 4.0 MM lbs of nickel Reed 2016 copper production of 11 MM lbs 2017 Focus on completion of ramp up of Beta Hunt, unlock value for shareholders from asset portfolio with strong partners Complete ramp-up of Beta Hunt to target production levels Joint Venture with Waterton to unlock value in the nickel industry 50:50 JV with Waterton, a leading mining private equity firm JV will contain 100% interest in Dumont and US$35 million of committed capital Westgold SKO mine / mill purchase option pro forma 120+koz gold annually A$80 million purchase option on multi-mine operation anchored by 1.2 Mtpa gold mill next door to Beta Hunt, multi-million ounce resource on 1000+ km 2 land package If option exercised, Westgold to become 19.9% shareholder of RNC significant endorsement from experienced, well-respected Western Australia operator Spin-out of TNN subsidiary (68% RNC) as a TSXV gold-focused exploration company during 2 nd quarter Project portfolio: Qiqavik and West Raglan in northern Quebec; Carolina gold belt properties 32
Appendix 33
Beta Hunt: SKO Transaction Terms RNC to acquire a purchase option and toll milling rights at SKO in exchange for 23.4 million common shares of RNC, worth approximately A$8 million Purchase Option: Westgold has granted RNC a six-month option (the Option ) to purchase SKO, including all existing mining, milling, and infrastructure assets, for A$80 million (the Purchase Price ) Option Fee: In exchange for the Option, RNC will pay Westgold an upfront option fee of A$4 million, equal to 5% of the Purchase Price, in common shares of RNC Should RNC exercise the Option, this fee will be deducted from the Purchase Price Extension: RNC is entitled to extend the Option for an additional six months by paying an additional 5% of the Purchase Price (the Extended Option Payment ) Should RNC exercise the Option after six months, only the Extended Option Payment will be deducted from the Purchase Price Toll Milling Agreement: Westgold has granted RNC access to 50% of its plant capacity at SKO, on an approximate three week on three week off basis, for a 12 month period commencing July 1, 2017 Toll Milling Rights: In exchange for these toll milling rights, RNC has issued approximately A$4 million in common shares to Westgold Toll Milling Costs: RNC will pay toll processing fees on a fixed plus variable arrangement on commercial terms. It is anticipated that the total toll processing and transportation costs under this arrangement will be materially lower than RNC is currently budgeting for processing of Beta Hunt ore in 2017 www.royalnickel.com 34
Financing Two Acquisitions Comprehensive Debt Restructuring Completed Auramet: Beta Hunt Mine US$16.5 million senior secured gold loan: Repaid by delivery of 560 ounces per month over 30 month period (total of 16,800 ounces) commencing February 28, 2017 US$11.0 million working capital facilities: US$5.5 million in-process gold facility for higher grade material, US$4.0 million for lower grade material, and a US$1.5 million in-process nickel facility Interest rate of LIBOR + 4.5% per annum Auramet may purchase, at market rates, all gold and nickel from Beta Hunt during the loan term Reed Mine US$9.0 Million Secured Copper Prepayment Agreement: Repaid by delivery of 3.9 million lbs of copper over 14-month period (commenced Jan. 31, 2017) US$5.0 Million Copper Working Capital Facility: US$5.0 million facility as part of a copper purchase agreement Interest rate of LIBOR + 4.5% per annum Each month during the term of agreement, Auramet will purchase RNC s share of accountable metal content of Reed output in prior month and advance to RNC 95% of the purchase amount Riverfort: US$2.5 million unsecured debt facility 12% annualized interest, repayments commenced March, 2017 35
Beta Hunt Mine Operating Overview Mine in transition to primary gold producer from nickel 2017 gold production expected to exceed 65,000 ounces As gold production ramps up and grades improve operating costs are expected to decline Full-year 2017 all-in-sustainingcosts for gold expected to be US$900 1,000 per ounce Beta Hunt Operating Overview Beta Hunt Mine 2016 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Gold tonnes mined (000s) 371 104 105 95.4 66.2 Gold mined grade (g/t) 1 2.3 2.26 2.10 2 2.48 1 2.41 Gold tonnes milled (000s) 354 89.96 140.0 80.4 43.1 Gold mill grade (g/t) 1 2.29 2.26 2.24 2.23 2.65 Gold mined (ounces) 1,2 27,882 7,553 7,094 7,599 5,636 Gold sales (ounces) 20,958 4,571 7,570 5,402 3,416 Nickel tonnes mined (000s) 73.3 11.7 13.1 19.1 29.4 Nickel tonnes milled (000s) 73.9 11.7 13.3 19.2 29.7 Nickel mill grade, nickel (%) 2.72 2.80 2.48 2.34 3.04 Nickel in concentrate tonnes (000s) 1.80 0.29 0.29 0.42 0.8 Beta Hunt Mine (YTD period March 16 Dec 31, 2016) Gold all-in sustaining cost, net of by-product credits (US$ per ounce sold) 3,4,5 $1,608 Gold C1 cash operating cost, net of by-product credits (US$ per ounce sold) 3,4,5 $1,331 Nickel C1 cash operating cost (US$ per lb. sold) 4 $2.20 Nickel C1 cash operating cost (US$ per tonne sold) 4 $4,854 Nickel all-in sustaining cost (AISC) (US$ per lb. sold) 4 $2.23 Nickel all-in sustaining cost (AISC) (US$ per tonne sold) 4 $4,927 YTD 1. The difference in gold sales ounces and gold mined ounces is due to a delay in reporting outturns from the Perth Mint in the last two weeks of December 2016. The outstanding gold sales occurred in Q1 2017. 2. As of December 31, 2016, 22 kt of gold mineralization from December 2016 production remained on the ROM pad for tolling in the subsequent quarter, compared to 5 kt of gold mineralization from September 2016 production as of September 30, 2016. 3. Gold operations in 2016 were at the early stage of the ramp up towards commercial production and operating and sustaining costs per ounce are not comparable to other companies. 4. Cash operating cost, cash operating cost per tonne, and all-in sustaining cost, are not recognized measures under IFRS. Such non-ifrs financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Management uses these measures internally. The use of these measures enables management to better assess performance trends. Management understands that a number of investors, and others who follow RNC s performance, assess performance in this way. Management believes that these measures better reflect RNC s performance and are better indications of its expected performance in future periods. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. 5. Excluding in each case inventory adjustments of C$4.3 million as of December 31, 2016. 36
Beta Hunt: Recently Completed PEA Confirms 92 koz of Indicated Resource and 321 koz of Inferred Resource Beta Hunt Nickel Mineral Resources as at February 1, 2016 1,2,3,5 Nickel >=1% Ni Gold Classification Inventory (kt) Grade (Ni %) Contained Metal Nickel Tonnes (NiTs) Measured 96 4.6 4,460 Indicated 283 4.0 11,380 Total 379 4.2 15,840 Inferred 216 3.4 7,400 Beta Hunt Gold Mineral Resources as at February 1, 2016 1,2,4,5 >=1.8 g/t Au Classification Inventory (kt) Grade (Au g/t) Contained Metal (Ounces) Measured 0 0.0 0 Indicated 815 3.5 92,000 Total 815 3.5 92,000 Inferred 2,910 3.4 321,000 1.Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves. 2.The Mineral Resource estimates include Inferred Mineral Resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is also no certainty that Inferred Mineral Resources will be converted to Measured and Indicated categories through further drilling, or into Mineral Reserves once economic considerations are applied. Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding 3.Nickel Mineral Resources are reported using a 1% Ni cut-off grade 4.Gold Mineral Resources are reported using a 1.8 g/t Au cut-off grade 5.Mineral Resources described here has been prepared by Elizabeth Haren, MAusIMM CPGeo, of Haren Consulting Pty Ltd. Cautionary Statement The decision by SLM to produce at the Beta Hunt mine was not based on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that that anticipated production costs will be achieved. Failure to achieve the anticipated production costs would have a material adverse impact on SLM s cash flow and future profitability. It is further cautioned that the PEA is preliminary in nature and includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. No mining feasibility study has been completed on Beta Hunt. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the PEA will be realized. Source: Beta Hunt Mine PEA dated March 4, 2016 available at www.royalnickel.com and www.sedar.com 37
Reed Flin Flon / Snow Lake Camp Long History of Resource Additions Flin Flon 777 Lalor* Chisel U/G Trout Lake Chisel Callinan Reed Centennial Chisel Pit Anderson Stall Lake Westarm Konuto Photo Dickstone Rod Spruce Coronation White Lake Osborne Ghost & Lost Schist Lake Cuprus North Star Mandy Birch Lake Flexar Discoveries in the Greenstone Belt (Flin Flon/Snow Lake) Initial resource Added resource 62.5 0 5 10 15 20 25 30 Tonnes (millions) Source: Hudbay Minerals Inc., company reports * Lalor reported as initial reserve and added reserve 38
NI 43-101 Compliance Compliance Statement (JORC 2012 and NI 43-101) Qualified Person The technical information in this presentation relating to historic exploration results at the Beta Hunt Mine is based on information compiled by Steve Devlin, who is a member of the Australian Institute of Mining and Metallurgy. Mr. Devlin is a full time employee of Salt Lake Mining Pty Ltd and has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the "Australasian Code for Reporting of Exploration Results. Face sampling in the HOF drive was conducted by SLM personnel. Samples are shipped to ALS Minerals Geochemistry of Kalgoorlie for preparation and assaying by 25 gram fire assay analytical method. First sample of each sample submission incorporates a barren rock sample as a flush to clean the lab crusher and pulveriser and as a check for contamination. Analytical accuracy and precision are monitored by the analysis of insertion of blank material and a certified standard. The disclosure of scientific and technical information contained in this presentation has also been approved by Alger St-Jean, Vice President Exploration of RNC, who is a Qualified Person under National Instrument 43-101. Quality Assurance - Quality Control ( QA/QC ) at Beta Hunt The majority of the Nickel Mineral Resources reported has been defined by drillholes completed in 2008 and 2014 while the gold Mineral Resources have been generated from drillholes completed over the life of the Beta Hunt mine. Sampling and assaying methodologies have been tailored to either nickel or gold depending on the drill target. All diamond core samples have been analyzed by external laboratories with various levels of company based and laboratory internal QA/QC programs implemented. Some quality issues have been identified over time however the Qualified Person does not consider the overall effect of minor errors to be material to the reported Mineral Resources. This is supported in the case of the nickel estimates by reconciliation of nickel production by SLM during 2014. Drillhole programs completed by SLM follow industry standard procedures for drilling, collection of samples and submission to external laboratories. Where specific gravity data is absent, regression curves have been used to populate the database. Data collection, retention and backup by SLM follow industry standards. No independent verification of significant intersections has been performed. Overall thorough QA/QC protocols are followed at Beta Hunt and the Qualified Person is satisfied that the data is reliable. The Mineral Resource estimates set out in this presentation have been prepared using accepted industry practice and classified in accordance with the JORC Code, 2012 Edition. Elizabeth Haren, MAusIMM CPGeo, of Haren Consulting Pty Ltd accepts responsibility as Qualified Person for the Mineral Resource estimates. The JORC Code means the Australasian Code for Reporting of Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral Council of Australia. There are no material differences between the definitions of Mineral Resources under the applicable definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM Definition Standards") and the corresponding equivalent definitions in the JORC Code for Mineral Resources. Readers are advised that Mineral Resources not included in Mineral Reserves do not demonstrate economic viability. Mineral Resource estimates do not account for mineability, selectivity, mining loss and dilution. These Mineral Resource estimates include Inferred Mineral Resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that Inferred Mineral Resources will be converted to Measured and Indicated categories through further drilling, or into Mineral Reserves, once economic considerations are applied. Based on the resource estimate, a standard methodology for stope design, mining sequence and cut-off grade optimization, including application of mining dilution, process recovery, economic criteria and physical mine and plant operating constraints has been followed to design the mine and to complete a Preliminary Economic Assessment ( PEA ) report for the Beta- Hunt Mine by David Penswick, P.Eng. The full Beta Hunt Mine PEA dated March 4, 2016 is available at www.royalnickel.com and www.sedar.com. 39
Corporate Overview Share Structure 1 : Basic Shares Outstanding: 276.2 million Options (average exercise price: C$0.41) 28.2 million Deferred/Restricted Share Units 7.4 million Warrants (average exercise price: C$0.49) 17.2 million Compensation Warrants 1.5 million Contingent Shares 7.0 million Fully Diluted Shares Outstanding: 337.5 million Directors and Officers Share Ownership: ~4% Large Shareholders: Eric Sprott ~10% Oppenheimer Funds, Inc. ~4% Balance Sheet Highlights: Cash and Cash Equivalents 2 : C$4.8 million Market Capitalization 1 : C$83 million 1. Shares outstanding, fully diluted shares outstanding, shareholdings and market capitalization as at March 31, 2017 2. Cash and cash equivalents as at December 31, 2016 www.royalnickel.com 40