Kootenay Silver Inc. · TSXV:KTN

Kootenay Silver — Investor Presentation (May 2017)

25 slides from Kootenay Silver's investor presentation, May 2017

  1. Slide 1: Silver Asset Development, New Discoveries, Consolidation

    KTN – TSX.V SILVER ASSET DEVELOPMENT NEW DISCOVERIES CONSOLIDATION PROMONTORIO LA NEGRA LA CIGARRA CORPORATE PRESENTATION I MAY 2017 KTN: TSX.V I CORPORATE PRESENTATION I MAY 2017

  2. Slide 2: Forward Looking Statements

    FORWARD LOOKING STATEMENTS This presentation may contain “forward‐looking statements” with the meaning of Canadian securities legislation. These statements can be identified by the use of words such as "expected", "may", "will" or similar terms. Forward‐looking statements are necessarily based upon

  3. Slide 3: Investment Highlights

    INVESTMENT HIGHLIGHTS  ESTABLISHED SILVER BANK  OVER 140Moz SILVER EQV (M&I)*  TOP TIER JUNIOR OWNED SILVER ASSETS  RESOURCE GROWTH  POTENTIAL FOR FUTURE CASH FLOW  DISCOVERY UPSIDE  STRONG CAPITAL STRUCTURE * Full Resource tables for La Cigarra and Promontorio can be found on pages 13 and 26

  4. Slide 4: 2017 Strategic Objectives

    2017 STRATEGIC OBJECTIVES 1. LA CIGARRA (GROWTH & DEVELOPMENT)  UP TO 15,000 Meters Drilling Planned  PRIORITIZE 11 Peripheral Targets for Drill Testing;  DRILL Peripheral Targets including Ram and Soledad (up to 7,500 meters);  DRILL along extension of La Cigarra Deposit (up to 7,500 meters) 

  5. Slide 5: Silver Resources & Growth

    SILVER RESOURCES & GROWTH LA NEGRA LA CIGARRA PROMONTORIO MEXICO Resource Definition Project Development KTN: TSX.V I CORPORATE PRESENTATION I MAY 2017 5

  6. Slide 6: La Cigarra Resource Upside: Why We Think It Will Get Bigger

    LA CIGARRA RESOURCE UPSIDE WHY WE THINK IT WILLWh GET BIGGER  Under explored 18,000 hectare land package in the prolific Parral Mining Camp  The Parral mining camp continues to discover and mine deposits after 500 years  Two largest producers are only 5 and 20 kilometers south of La Cigarra and o

  7. Slide 7: La Cigarra Resource Upside

    LA CIGARRA RESOURCE UPSIDE 1.5 billion ounces silver 400Moz Ag Resource historical production or resource 51M oz Ag (M&I) 11.5M oz Ag (Inf.) 531 Moz Ag Production & Resource 150Moz Ag Historical Production 281M oz Ag Production & Resource KTN: TSX.V I CORPORATE PRESENTATION I MAY 2017 7

  8. Slide 8: La Cigarra Resource

    LA CIGARRA RESOURCE In-Situ Grade Contained Metal Resource Tonnes Ag Au Pb Zn Category* Ag (oz) Au (oz) Pb (lbs) Zn (lbs) (g/t) (g/t) (%) (%) Measured 3,620,000 88.9 0.074 0.14 0.19 10,340,000 9,000 10,920,000 15,510,000 Indicated 14,930,000 85.7 0.068 0.13 0.18 41,130,000 33,000 42,950,000 59,260,0

  9. Slide 9: La Cigarra Resource Upside: Why We Think It Will Get Bigger

    LA CIGARRA RESOURCE UPSIDE WHY WE THINK IT WILL GET BIGGER  La Cigarra deposit is open in all three directions  There are 11 targets outside of the resource  Only four of these have any drilling KTN: TSX.V I CORPORATE PRESENTATION I MAY 2017 9

  10. Slide 10: La Cigarra Resource Upside: Why We Think It Will Get Bigger

    LA CIGARRA RESOURCE UPSIDE WHY WE THINK IT WILL GET BIGGER La Cigarra Project showing size of anomalous area with 8 of 11 peripheral areas KTN: TSX.V I CORPORATE PRESENTATION I MAY 2017 10

  11. Slide 11: Las Carolinas Zone – Drill Plan

    LAS CAROLINAS ZONE – DRILL PLAN KTN: TSX.V I CORPORATE PRESENTATION I MAY 2017 11

  12. Slide 12: Las Carolinas – Cross Section

    LAS CAROLINAS – CROSS SECTION KTN: TSX.V I CORPORATE PRESENTATION I MAY 2017 12

  13. Slide 13: Potential for Higher Grade Deposit

    POTENTIAL FOR HIGHER GRADE DEPOSIT Silver cut‐off from 35 g/t to 50 g/t increases average grade of 86.3 g/t to above 100 g/t (Resource blocks shown below are modeled above a 50 gpt silver cutoff) La Cigarra Project 2015 Mineral Resource at 50 g/t silver cut-off* Category* Cut-off Tonnes Ag (g/t) Ag

  14. Slide 14: La Cigarra Development Initiatives

    LA CIGARRA DEVELOPMENT INITIATIVES  Remodel Resource with objective to improve grade and define higher silver grade drill targets  DRILL along extension of La Cigarra deposit (up to 7,500m)  DRILL Peripheral Targets (up to 7,500m)  Update Resource Estimate; and  Set timeline of Preliminary Econ

  15. Slide 15: Promontorio Mineral Belt

    PROMONTORIO MINERAL BELT  Optioned to Pan American Silver (PAAS)  Hosts two major silver discoveries: Promontorio & La Negra  New high‐grade La Negra silver discovery  Numerous additional targets within a 6.5km x 15km area, including the Promontorio (2013)* Tonnage Grade Contained Cameron‐Vania

  16. Slide 16: La Negra High Grade Discovery

    LA NEGRA HIGH GRADE DISCOVERY  6,500 meters planned for 2017 Promontorio with June start up 7 km  6,800 meters over 31 holes drilled to date by PAAS  High‐grade silver intercepts to La Negra 300m vertically from surface  Open Pit Low Cost Potential  Surface footprint of ~500m x 200m High‐grade

  17. Slide 17: La Negra Cross Section

    LA NEGRA CROSS SECTION La Negra Section 627500E KTN: TSX.V I CORPORATE PRESENTATION I MAY 2017 17

  18. Slide 18: Kootenay - Pan American Carried to Production Deal

    KOOTENAY - PAN AMERICAN (PAS) CARRIED TO PRODUCTION DEAL  Provides pathway to production and future cash flow  Augments and strengthens consolidation platform  KTN carried interest mitigates project and finance risk  To earn 75% PAAS invests: – US$16 million in work and cash payments; pay up fro

  19. Slide 19: Prospect Generator Portfolio

    PROSPECT GENERATOR PORTFOLIO Exploration Properties Optioned Properties Canada Copley Silver Fox – Antofagasta Spike’s Big Adventure 2X Fred, Fox – Theia Resources Walter the Water Buffalo Connors Creek Exploration Properties Optioned Properties Mexico Santa Lucia Cervantes – Aztec Metals Guadalupe

  20. Slide 20: Capital Structure

    CAPITAL STRUCTURE Exchange (Tier 1) TSX.V (“KTN”) Issued & Outstanding(1) 174.69m Pan American, 10% Options 15.63m Warrants 45.76m Retail & Other,24% Fully Diluted(1) 236.08m Current Market Cap(2) CAD ~$51.5m KTN Institutions, 35% Condire, 6% KTN (shares 52-week High/Low) CAD$0.60/$0.265 Average Dai

  21. Slide 21: Board and Management Team

    BOARD AND MANAGEMENT TEAM FROM DISCOVERY TO OPERATIONS MINE BUILDING • James McDonald ‐ Alamos • Andrea Zaradic ‐ Diamet FINANCE & LEGAL FINANCE & MARKETING • Raj Kang ‐ Salares • Ken Berry ‐ Northern Vertex • Jon Morda ‐ Alamos • Tony Reda ‐ Kaminak Gold • Joe Giuffre ‐ Nevsun EXPLORATION • Tom Ric

  22. Slide 22: 2017 Strategic Objectives and Catalysts

    2017 STRATEGIC OBJECTIVES AND CATALYSTS  La Cigarra Drill Program  La Cigarra drilling on  La Cigarra Resource focused on Deposit peripheral targets RAM Update Expansion (up to 7,500m) and Soledad etc. (up to 7,500m) Q2 2017 Q3 2017 Q4 2017 Q1 2018  La Negra Drill Program by Pan  Set timeline f

  23. Slide 23: Kootenay – Why Invest?

    KOOTENAY – WHY INVEST?  STRONG POTENTIAL FOR VALUE RE‐RATING  SIGNIFICANT LEVERAGE TO SILVER PRICE  TOP TIER JUNIOR OWNED SILVER ASSETS  3 DRILL PROGRAMS TO EXPAND SILVER RESOURCES  RESOURCE UPDATE AT LA CIGARRA SILVER DEPOSIT  PATH TO PRODUCTION AT PROMONTORIO & LA NEGRA PROJECTS  LARGE PORT

  24. Slide 24: Contact Us

    CONTACT US KOOTENAY SILVER INC. 1055 West Hastings Street, Suite #1820 Vancouver, BC, V6E 2E9, Canada Tel: (604) 601‐5650 Fax: (604) 683‐2249 Toll free: (888) 601‐5650 E‐Mail: [email protected] Website: www.kootenaysilver.com Twitter: https://twitter.com/KootenaySilver KTN: TSX.V I CORPORATE P

  25. Slide 25: Appendix – Promontorio

    APPENDIX – Promontorio KTN: TSX.V I CORPORATE PRESENTATION I MAY 2017 25

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