Corporate Presentation Open-pit Gold Heap Leach Opportunity in Ghana, West Africa JANUARY 2018 Drilling Underway
FORWARD LOOKING STATEMENT No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained on this presentation. This presentation contains "forwardlooking information" concerning Pinecrest Resources ( Pinecrest or the Company ) future financial or operating performance and other statements that express management's expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as seeks, "believes", "anticipates", "plans", continues, "budget", "scheduled", "estimates", "expects", "forecasts", "intends", projects, predicts, proposes, "potential", targets and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would", should or "might" "be taken", "occur" or "be achieved". Forward-looking statements included in this presentation include statements regarding potential mineralization and mineral resources, the potential development scenarios for the various Gold-Silver Projects, including information with respect to the supporting infrastructure, the potential life of mine, rates of production and the effects of steps taken to mitigate local impacts and the expected completion dates of exploration and drilling, exploration results, estimated and future exploration and administration expenditures, the timing and results of preliminary economic assessments, other development studies, and future plans and objectives of Pinecrest. While all forward-looking statements involve various risks and uncertainties, these statements are based on certain assumptions that management of Pinecrest believes are reasonable, including that it will be able to obtain financing and on reasonable terms, that its current exploration and other objectives can be achieved, that its exploration and other activities will proceed as expected, that its community and environmental impact procedures will work as anticipated, that general business and economic conditions will not change in a material adverse manner, that Pinecrest will not experience any material accident, labour dispute or failure or shortage of equipment, and that all necessary government approvals for its planned exploration and potential development activities will be obtained in a timely manner and on acceptable terms. There can be no assurance that the forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Pinecrest s expectations include, among others, the actual results of current exploration activities being different than those anticipated by Pinecrest, changes in project parameters as plans continue to be refined, changes in estimated mineral resources, future prices of metals, increased costs of labor, equipment or materials, availability of equipment, failure of equipment to operate as anticipated, accidents, effects of weather and other natural phenomena, risks related to community relations and activities of stakeholders, and delays in obtaining governmental approvals or financing. Although Pinecrest has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Pinecrest does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking information orstatements whether asa result of new information, future events orotherwise, except asrequired by law. PEA Disclosure The NI 43-101 Preliminary Economic Assessment is preliminary in nature and includes inferred mineral 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, and there is no certainty that the Preliminary Economic Assessment will be realized. The Enchi Gold Project PEA Technical Report is available on SEDAR and was prepared by Joanne Robinson P.Eng of WSP Canada a professional independent mining engineer registered in Canada and a QP as defined by National Instrument 43-101. Mineral resources that are not mineral reserves do not have demonstrated economic viability. This presentation is not an offer to purchase securities and does not constitute an offering document under Securities legislation. Mr. Gregory Smith, P.Geo, the President and CEO of the Company, is the Qualified Person as defined by NI 43-101, and has prepared and approved the technical data and information in this presentation 2
INVESTMENT HIGHLIGHTS Over 1M oz Au 1 April 2015 NI 43-101 compliant Technical Report Strong Exploration Upside Substantially underexplored 568km 2 land package located on prolific Bibiani Shear zone Strong Management Value Creation with Proven Execution Strong PEA Results Pre-Tax NPV 5% : US$102M Pre-Tax IRR: 34% Post-Tax 5% : US$62M Post-Tax IRR: 25% Strategic Shareholders 16% by Kinross Gold 38% by Insiders Stable Mining Jurisdiction Ghana is Africa s 2 nd largest gold producer and the world s 8 th largest 1. Inferred resource using a 0.5 g/t Au cut-off grade. 3
ENCHI GOLD PROJECT OVERVIEW Open Pit Gold Project: +1 million ounce Inferred gold resource Stable Mining Location: Located in Ghana s prolific Bibiani Shear zone which is host to several multi-million ounce gold deposits (Chirano Gold Mine, Bibiani Gold Mine) (in-country mining by Newmont, Goldfields, Randgold, Kinross) Preliminary Economic Assessment Highlights; US$1,300 oz gold price: 61,749 oz per year, Pre- Tax NPV5% US$102M, IRR 34% and US$802 oz cash costs (including royalties) After-Tax NPV5% US$62M and IRR 25% Significant upside: Under explored Ashanti Style, shear hosted mesothermal gold system Expansion potential: Shallow, near surface gold resources open in all directions, demonstrating excellent resource expansion and discovery potential Drilling: Now underway testing numerous high priority gold targets 4
PINECREST TEAM TRACK RECORD OF SUCCESS Ryan King, President & CEO, Director Greg Smith, Vice President Exploration Daniel Wilson, Country Manager Ghana Dr. John Thomas, Technical Advisor Blayne Johnson, Advisor & Director Doug Forster, Advisor & Director George Salamis, Director Edward Farrauto, Director Doug Hurst, Director Mike Vint, Director 5
2015 PEA HIGHLIGHTS (OWNER OPERATED) Enchi Gold Project April 2015 PEA Base Case US$1,300/oz* Average Annual Production (Au ounces) 61,749 Metallurgical Recoveries (Oxide/Transition/Sulphide %) 75/75/73% Strip Ratio (w/o) 3.16 Mine Life (years) 8.7 Pre-Production Capital Costs (US$) $84.4M LOM Sustaining Capital Costs (US$) $38.6M LOM Cash Cost per Ounce (US$/oz) $802.03 US$1,200/oz US$1,250/oz US$1,300/oz US$1,350/oz Pre-Tax Payback (years) 3.4 3.0 2.8 2.7 Pre-Tax IRR (%) 24% 29% 34% 38% Pre-Tax NPV5% (US$) $61.9M $81.9M $101.9M $121.9M After-Tax Payback (years) 4.1 3.7 3.4 3.1 After-Tax IRR (%) 18% 22% 25% 29% After-Tax NPV5% (US$) $35.9M $49.0M $62.0M $75.0M *2.0% NSR to Kinross Gold and US$10 for each newly defined ounce of gold contained in any new NI 43-101 M&I mineral resource estimate or any ounce of gold mined, whichever occurs first. Such amount shall be payable in cash or, at Pinecrest s option, in common shares of Pinecrest, provided that, Pinecrest shall not be entitled to elect to pay in common shares if such issuance would result in Red Back holding more than 20% of the issued and outstanding shares of Pinecrest. The Ghana government has a 10% free carry and a 5% royalty. 6
VALUE PROPOSITION $3,355 $3,052 $2,274 $2,223 $2,016 $1,827 $1,768 Peer Average: $2,098 $1,169 $867 Orezone West Kirkland Victoria Orla Lydian Belo Sun Pinecrest African Gold Pershing FDITM Market Cap (US$M) $104 $19 $192 $236 $301 $133 $22 $13 $62 Asset Name (name) Bombore Hasbrouck Eagle CQ / CR Amulsar Volta Grande Enchi Kobada Relief Canyon Au Total Resources (Mozs) 5.8 1.1 4.4 10.4 4.8 6.8 1.1 2.2 0.8 Head Grade (g/t) 0.76 0.58 0.67 0.77 / 0.71 0.79 1.02 0.91 1.25 0.72 Gold Recovery (%) 87% 76% 71% 86% / 75% 87% 93% 75% 82% 80% Strip Ratio (x) 1.07 1.10 0.95 0.72 / 0.70 2.20 4.27 3.16 3.28 3.45 LOM Avg Annual Prod. (kozs) 116 74 189 79 / 122 225 205 62 53 89 Development Capex (US$M) $266 $151 $288 $117 / $134 $370 $298 $84 $45 $22 EV / Total Resource (US$/oz) $16 $22 $32 $19 $73 $11 $14 $5 $66 Adj. EV 1 / Avg. LOM Prod. (US$/oz) $3,355 $3,052 $2,274 $2,223 $2,016 $1,827 $1,768 $1,169 $867 Source: FactSet, company disclosure; 1. Adjusted Enterprise Valued calculated as Enterprise Value + Remaining Development Capex 7
VALUE OPPORTUNITY Head Grade (g/t) 1.25 1.02 0.91 0.79 0.77 0.76 0.72 0.71 0.67 0.58 Peer Average: 0.77 0.45 African Gold (Kobada) Belo Sun (Volta Grande) Pinecrest (Enchi) Lydian (Amulsar) Orla (Cerro Quema) Orezone (Bombore) Pershing (Relief Canyon) Orla (Camino Rojo) Victoria (Eagle) West Kirkland (Hasbrouck) Rye Patch (Florida Canyon) Enterprise Value / Total Resources (US$/oz) $73 $66 $50 Peer Average: $33 $32 $22 $19 $16 $14 $11 $5 Lydian Pershing Rye Patch Victoria West Kirkland Orla Orezone Pinecrest Belo Sun African Gold Source: FactSet, company disclosure Source: FactSet, company disclosure 8
CAPITAL STRUCTURE & OWNERSHIP Capital Structure Top Shareholders Symbol TSX-V: PCR Shares Outstanding Basic 62.1M Options (avg exercise $0.26) 8.6M Kinross Warrants (avg exercise $0.30) 5.0M Warrants (avg exercise $0.30) 18.0M Fully Diluted 93.7M Working Capital ~C$2.0M 16% Management & Insiders 38% Market Capitalization ~C$18.4M Source: Capital IQ and SEDI. Market Capitalization priced as of market close on May 9, 2017 9
RENEWED FOCUS ON AFRICAN GOLD EQUITIES Select Transactions in Africa African focused gold companies up ~25% year-to-date ( YTD ) C$31M December 2016; acquisition of remaining 77% of Merrex Gold A$180M Feb 2015; ~A$180M acquisition of Orbis Gold Limited announced C$240M March 2016; $240M acquisition of True Gold announced C$46M US$150M Feb 2015; C$46M bought deal financing completed July 2014; US$150M debt facility with Red Kite Mine Finance Trust I secured A$118M February 2016; acquisition of Amara Mining US$570M June 2014; US$570M acquisition of Papillion Resources Limited Financing Acquisition 10
WEST AFRICAN GOLD DEPOSITS NON PRODUCING Gold assets in West Africa with deposits >0.5M oz Au Opportunity to consolidate nearby West African gold deposits Gold Fields Limited Damang 6.0M oz Toro Gold Mako 1.4M oz Legend Gold DIBA/Tabakroloe 0.9M oz IAMGOLD Boto 1.7M oz Endeavour Mining Hounde 2.7M oz B2Gold Fekola 4.8M oz SEMAFO Natougou 2.0M oz Cassidy Gold Corp Kouroussa 0.7M oz IAMGOLD Diakha-Siribaya 1.2M oz West African Resources Sanbrado 2.1M oz B2Gold Kiaka 4.7M oz Polo Resources Nimini 0.9M oz SEMAFO Nabanga 0.6M oz Avesoro Resources Ndablama 0.9M oz Perseus Mining Sissingue 0.9M oz Viking Ashanti Akoase 0.8M oz Pinecrest Resources Enchi 1.1m oz Asanko Gold Asanko Mine 5.2M oz 11
WEST AFRICAN GOLD DEPOSITS PRODUCING Gold assets in West Africa with currently operating West African Resources Tanlouka 1.5M oz IAMGOLD Sadiola 8.1M oz Teranga Gold Sabodala 1.2M oz Endeavour Mining Tabakoto 2.7M oz Avesoro Resources New Liberty 1.7M oz Nordgold Taparko 1.6M oz Nordgold Bissa-Bouly 6.5M oz Robex Gold Nampala 1.0M oz SEMAFO Mana 5.7M oz Endeavour Mining Karma 3.8M oz Roxgold Yaramoko 1.1M oz IAMGOLD Essakane 5.1M oz Perseus Mining Edikan 6.0M oz Kinross Chirano 1.8M oz Golden Star Prestea 3.4M oz Golden Star Wassa 5.4M oz Endeavour Mining Ity 1.1M oz Endeavour Mining Agbaou 1.1M oz Asanko Gold Nkran 2.3M oz 12
GHANA OVERVIEW 7th Biggest gold producer in the world 6 th / 2 nd Ghana s rank among African countries on Fraser Institute s Overall Investment Attractiveness Index and Policy Attractiveness Index, respectively 70% $500 MILLION 2nd Biggest gold producer in Africa $200 BILLION Estimated value of all the gold in Ghana s Ashanti Belt The amount of West Africa s Gold Ghana is believed to hold The amount of tax resulting from gold produced in Ghana for 2011 5-10% The amount of Ghana s labor force employed by gold mining $21.5 MILLION Royalties given back to Ghanaian Communities between 2009-2011 Source: Fraser Institute Annual Survey of Mining Companies 2016 (February 2017); 911 Metallurgist 13
REGIONAL SETTING Pinecrest s Enchi Gold Project is located on the prolific Bibiani Shear zone which hosts multi-million ounce gold deposits Enchi Gold Project covers 50km of the Bibiani Shear Zone Located within 70km of Kinross Gold Corporation s Chirano gold mine which produced 286,542 oz Au in 2014 Ahafo Deposit Bibiani Deposit Chirano Deposit Esaase Deposit Obotan Deposit Ashanti Deposit Perseus Deposit Tarkwa Deposit 14
ENCHI GOLD PROJECT OVERVIEW 100% 1 owned resource delineation stage gold project April 2015 NI 43-101 compliant Technical Report with an Inferred resource of +1M oz Au Gold Producers Substantially underexplored 568km 2 land package VTEM airborne geophysical survey identified over 25 new exploration targets Resource zones Boin, Nyam and Sewum open in all directions 1. Subject to a 10% carried interest to the Ghana government. 15
ENCHI MINERAL RESOURCE ESTIMATE (2015) Inferred Resource Cutoff (g/t Au) Tonnes Gold (g/t) Contained Gold (oz) 0.30 72,611,000 0.65 1,526,065 0.40 53,366,000 0.76 1,304,918 0.50 37,357,000 0.90 1,078,697 0.70 20,816,000 1.15 768,000 0.90 12,933,000 1.36 569,879 1.00 10,127,000 1.49 484,388 The April 2015 Mineral Resource estimate was based on 52,385 metres of diamond and RC drilling in 646 holes as well as data from 13,799 metres in 102 surface trenches. The drilling is spaced at 25 to 50 metre intervals 1. CIM definition standards were followed for the resource estimate. 2. The April 2015 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids. 3. A base cut-off grade of 0.5 g/t Au was used for reporting resources with a capping of gold grades at 18 g/t. 4. A US$1,300/ounce gold price, open pit with heap leach operation was used to determine the cut-off grade. 5. A density of 2.45 g/cm3 was applied. 6. Numbers may not add exactly due to rounding. 7. Mineral Resources that are not mineral reserves do not have economic viability. 16
SUPERIOR DISCOVERY POTENTIAL Several high priority gold targets identified to expand the already substantial +1 million gold ounces near surface oxide resource with multi-million ounce opportunities DRILLING UNDERWAY ON SEWUM, BOIN, KOJINA HILL 1.44g/t Au over 17m Open in all directions (900m North of Boin Zone) 2.65g/t Au over 35m Open in all directions Deposit, Resource zone Previous drill success Enchi Claim Boundary Gold in soil anomalies Kojina Hill Kwakyekrom 3 geo-chemical anomalies over 3km long, limited drilling 1.13g/t Au over 34m open for expansion New Gold Zone outside of resource estimate, 1.14g/t Au over 68m New Gold Zone (1.51g/t Au over 22m) Open Sewum South 2.01g/t Au over 29m (limited drilling) Limited drill results include: 2.0g/t Au over 30m, 0.53g/t Au over 81m 17
ENCHI NEAR SURFACE RESOURCE EXPANSION OPPORTUNITY Potential to expand by drilling between known zones as demonstrated by Boin and Sewum Long Sections Near surface oxide resource expansion potential on all resource zones Boin/Nyam & Sewum as many other additional untested zones 18
BOIN CLEAR EXPANSION OPPORTUNITY RC DRILLING UNDERWAY NOW TESTING HIGH PRIORITY TARGETS Prospects Shear Zone Enchi Claim Boundary Gold in soil anomalies BOIN GOLD ZONE Near surface oxide potential to expand with clear drilling gaps BOIN PIT SHELLS Opportunity to expand resources between zones 125 m Vertical depth 19
DEPTH POTENTIAL Multi-million ounce Chirano Gold Mine ~50km Northeast hosts plunging zones of high gold mineralization Similar to gold zones on the Enchi Gold Project including known zones Boin and Nyam Lower grade at surface on both Chirano and Enchi Gold Project (Boin/Nyam) Boin/Nyam gold zones previous drilling depth of approximately 75-125 metres 20
BUILDING VALUE FOR SHAREHOLDERS Expanding Open Pit Gold Resources: +1 million ounce Inferred gold resource Stable Mining Location: Located in Ghana s prolific Bibiani Sheer zone which is host to several multi-million ounce gold deposits (Chirano Gold Mine, Bibiani Gold Mine) (in-country mining by Newmont, Goldfields, Randgold, Kinross) Preliminary Economic Assessment Highlights; US$1,300 oz gold price: 61,749 oz per year, Pre- Tax NPV5% US$102M, IRR 34% and US$802 oz cash costs (including royalties) After-Tax NPV5% US$62M and IRR 25% Expansion potential: Shallow, near surface resources open in all directions, demonstrating excellent resource expansion and discovery potential Drilling: underway now testing high priority gold targets at Boin, Sewum, Kojina Hill Strategic Team with Proven Track Record: Reviewing additional value creation opportunities 21
APPENDIX 22
OWNER OPERATED 2015 PEA HIGHLIGHTS Enchi Gold Project April 2015 PEA Base Case US$1,300/oz* Average Annual Production (Au ounces) 61,749 Metallurgical Recoveries (Oxide/Transition/Sulphide %) 75/75/73% Strip Ratio (w/o) 3.16 Mine Life (years) 8.7 Pre-Production Capital Costs (US$) $84.4M LOM Sustaining Capital Costs (US$) $38.6M LOM Cash Cost per Ounce (US$/oz) $802.03 US$1,200/oz US$1,250/oz US$1,300/oz US$1,350/oz Pre-Tax Payback (years) 3.4 3.0 2.8 2.7 Pre-Tax IRR (%) 24% 29% 34% 38% Pre-Tax NPV5% (US$) $61.9M $81.9M $101.9M $121.9M After-Tax Payback (years) 4.1 3.7 3.4 3.1 After-Tax IRR (%) 18% 22% 25% 29% After-Tax NPV5% (US$) $35.9M $49.0M $62.0M $75.0M *2.0% NSR to Kinross Gold and US$10 for each newly defined ounce of gold contained in any new NI 43-101 M&I mineral resource estimate or any ounce of gold mined, whichever occurs first. Such amount shall be payable in cash or, at Pinecrest s option, in common shares of Pinecrest, provided that, Pinecrest shall not be entitled to elect to pay in common shares if such issuance would result in Red Back holding more than 20% of the issued and outstanding shares of Pinecrest. The Ghana government has a 10% free carry and a 5% royalty. 23
CONTRACT MINING 2015 PEA OPTION Enchi Gold Project Dec 2015 Contract Mining Option PEA Base Case US$1,300/oz* Average Annual Production (Au ounces) 61,749 Metallurgical Recoveries (Oxide/Transition/Sulphide %) 75/75/73% Strip Ratio (w/o) 3.16 Mine Life (years) 8.7 Pre-Production Capital Costs (US$) $61.6M LOM Sustaining Capital Costs (US$) $22.4M LOM Cash Cost per Ounce (US$/oz) $961 (includes royalties and refining) US$1,200/oz US$1,250/oz US$1,300/oz US$1,350/oz Pre-Tax Payback (years) 2.6 2.5 2.3 2.2 Pre-Tax IRR (%) 26% 36% 44% 52% Pre-Tax NPV5% (US$) $33.4M $53.4M $73.4M $93.4M *2.0% NSR to Kinross Gold and US$10 for each newly defined ounce of gold contained in any new NI 43-101 M&I mineral resource estimate or any ounce of gold mined, whichever occurs first. Such amount shall be payable in cash or, at Pinecrest s option, in common shares of Pinecrest, provided that, Pinecrest shall not be entitled to elect to pay in common shares if such issuance would result 24 in Red Back holding more than 20% of the issued and outstanding shares of Pinecrest. The Ghana government has a 10% free carry and a 5% royalty.
MINED TONNES, GOLD GRADE AND STRIP RATIO 25
PRE-PRODUCTION OWNER OPERATED CAPITAL COSTS US$11.8M 14% Contingencies US$3.1M 4% Owner s Costs US$5.9M 7% Construction (Indirect) US$4.9M 6% Engineering & Procurement US$84.4M US$18.8M 22% Mining US$35.6M 42% Processing US$4.4M 5% Infrastructure 26
CONTACT RYAN KING PRESIDENT & DIRECTOR T: 604 628 1012 RKING@PINECRESTRESOURCES.COM 27