Solaris Resources (TSX:SLS) — Investor Update - Warintza PFS

0:00 Good morning everybody and thank you very much for joining the call today. I'm Matthew Rollinson, the CEO and President of SOLARIS RESOURCES. Today is a very important milestone for the company and the first time the market has visual of the size, scale and uniqueness of this multi generational project. Personally, would like to thank the team for their efforts. We have an experienced team leading a tier one project and I am extremely proud to be a part of this journey. As you will see from the presentation, this is a globally significant copper project with a life exceeding fifty years. This is exceptionally rare in the world today. The project is simple in design with conventional mining and processing methods. Just recently copper topped the LME seminar pole for the metal with the most potential upside.

0:48 Wood Mackenzie recently published an article saying global demand is set to surge by 24% by 2035, which equates to adding more than 1,000,000 tonnes of production to the market annually. The big question is where is this copper going to come from? The Wurritsa project is a near term executable project which aligns well to the world's desperate requirement for increased supply. Today's presentation will be hosted by myself and Javier Toro, the COO. I will take the forward looking and cautionary statements as being read. Just looking at the investment case, the Tier one status of this asset drives significant cash flows over the life of the mine. There is no attachments to a major in the equity stack, which provides strategic flexibility for the company at the right time.

1:41 We have an extremely good reputation in country, and holding social license is a significant asset. We have an experienced team with diverse skill sets covering all critical elements required at this stage of the SOLARIS development. Additionally, we are fully funded to complete the feasibility study through the $200,000,000 financing package from Royal Gold in May 2025. Some of the PFS highlights I'll just touch on. We had a 312% increase in the measured and indicated resource category compared to the 2024 MRE. We will produce a very clean and high quality concentrate, providing marketing flexibility.

2:27 It's very rare in Latin America to have a concentrate with no arsenic content. We have extremely good byproduct credits coming from moly as well as gold. The pre feasibility study is also prepared in conjunction with highly experienced consultants, ASENCO, Knight Peace Old, as well as AMC. The reserve base supports a mine life of over twenty years. The company has adopted a phased, a two phased permitting approach limited by the 1,300,000,000 tons of tailings capacity. With the potential to extend the mine life by thirty years, the first fifteen years is reflective of the life of the mine. Just highlighting some of the key pre feasibility outputs, production of over 300,000 tons of copper equivalent for the first five years, and over 240,000 tons of copper equivalent for the first fifteen years.

3:24 The life of mine strip ratio of 0.53 to one is one of the lowest strip ratios of mines globally, driving a best in class strip adjusted grade. The all in sustaining cash costs of $0.85 for the first five years and $1.07 for the first fifteen years, and a post tax NPV 8% of $4,600,000,000 and post tax IRR of 26%. A post tax payback period of two point six years. This certainly highlights the quality of the asset. Just looking at the significant resource base, in 2025 the mineral resource increased by 38% versus 2024, with the large inclusion of the West Wurrinsa West deposit.

4:15 The reserves account for a twenty two year life of operation, with significant potential as I said to extend the life of mine by between twenty five to thirty years beyond the reserves. The reserves represent less than a third of the Wurrinsa current resource endowment. Looking at the reserves, have 1,300,000,000 tons, which equates to 5,200,000 tons of copper equivalent. In the resources category, from from an M and I perspective we have 3,700,000,000 tons, and further in the inferred category a further 2,000,000,000 tons, which totals 5,800,000,000 tons of resources, and accounts for approximately more than 16,000,000 tons of copper equivalent, with significant exploration opportunities beyond.

5:03 Looking at the right hand side of the chart, you will see that the life of mine annual copper production places Wurenso firmly in the top tier of future global producers. Only 10 of the top 30 greenfield projects of scale have no attachments to a major, and as said before, this provides great flexibility to the project going forward. From a capital intensity perspective and the key drivers of low capital intensity for the Marinta project, we have to understand that Ecuador is an export driven economy with substantial existing infrastructure, the likes of ports, a rail network and power grids. We also operate at a low elevation of 1,200 meters above sea level, which compares very favorably against future greenfield opportunities.

5:54 We have fresh water availability and minimal pre stripping capital as the ore body sits very close to surface. It's an open pit, mining methodologies and simple in design. From a capital intensity benchmarking perspective, some of the majors have recently provided statistics on where their greenfield and brownfield expansion projects will be guided from a copper equivalent standpoint. And that's somewhere between $15,000 per tonne of copper equivalent to $23,000 per tonne of copper equivalent. And the peer median for development projects is approximately $21,000 per tonne. As a key takeaway, this project has resounding capital intensity metrics, and is highly attractive versus the peers.

6:47 Just looking at it from a strip ratio perspective, Wurzha has one of the lowest strip ratios in the world, and the ore body sits very close to surface, with the advantages of such being minimal waste removal, which significantly reduces costs and capital. It's high graded surface and you would note the first five years of production is prolific in terms of that high grade accessibility. There's optimization opportunities for mine planning as the ore body is very homogeneous in nature. And again, the low truck hours which reduces the carbon footprint, which is a key driver of this project in terms of decarbonization efforts. Just looking at the world of large porphyry deposits, they need to be benchmarked against a strip adjusted grade with a median strip ratio of approximately 2.5 to one.

7:41 Wurrinsa has a strip ratio of 0.53 to one. And as you will see from the head grade and the strip ratio, the Wrences sits well within the top tier of future producers from a strip adjusted grade perspective. As you will see, this again reflects the caliber of the ore body and the significant flexibility it offers over the multi decade life of mine. Wirinza will produce approximately 250,000 tons of copper equivalent over the first fifteen years, with the first quartile all in sustaining cash cost. As you will note from the slide, its robust and consistent production and cost profile over the life of the mine, and the reserve life continues for twenty plus years.

8:33 Further, looking at the slide below, the first quartile all in sustaining cash costs of $0.85 and $1.07 per pound on the first fifteen years drive significant margin and the ability for the asset to see through multiple commodity cycles. From an EBITDA and free cash flow delivery perspective, its first quartile cash cost drives significant free cash and EBITDA generation. The EBITDA and EBITDA margins remain very consistent over the life of the mine. As you will note, the average EBITDA for the first fifteen years is 1,400,000,000 and the total life of mine EBITDA of 25,000,000,000. Looking at it from a cash flow perspective, annual free cash flow over the first fifteen years equates to approximately 1,000,000,000 and the total life of mine of twenty two years approximately 17,000,000,000.

9:30 So this is very prolific in terms of what this mine will generate for shareholders in the future. From a technically simplistic design perspective, the project design is very simple, it's an environmentally encapsulated design, Javier will go into a little bit more detail on these slides later on. But the footprint is really encapsulated by the north, the west and the south ridge lines demarcated with the red dotted line in the map below. It's a very small and compact footprint and water flows downstream from Southwest to Northeast. As you will note, the principal access road to the port is demarcated and again what I will just highlight is this pre feasibility study is prepared in conjunction with the SENCO, nine P SOLARIS INC world class consultants.

10:25 From a social license to operate, everyone understands that Latin America, you have to have a social license to operate, and we're very proud of what we've achieved over the last seven odd years. We have signed multiple partnerships within indigenous organizations in the area of influence and you would have seen the recent one we signed and announced this year with the PSHA, the Schwab Federation, which operates in the area of influence. The free, prior and informed consultation process led by the government is scheduled to commence shortly after a successful visit from the Ministry of Energy and Mines. Multiple impacts and benefits agreements have been signed with the host communities, the Warrants and Yahweh community, and updated in 2024. We have a very proactive engaging policy around the communities now kept informed, empowered.

11:17 There is an element of significant trust between ourselves through transparency. Just looking at Ecuador as a whole, it's an export driven country with strong infrastructure as mentioned before, including deep sea ports. The left, the right, the centralist governments have all supported mining intrinsically, and certainly Daniel Naboa today is supporting mining and it's a key pillar of economic growth for the country. It's a US denominated currency and very stable fiscal regimes, which is quite in contrast to many of the other Latin American countries. The final technical EIA report was submitted and is under final government review at this stage, and hopefully we can obtain that before the end of the year.

12:06 Just from a district level perspective and understanding the cluster where we operate, we operate in the Southeastern Corridor of Ecuador, very close to the Peruvian border. The lines demarcated by the solid lines is the Warinza wholly owned properties, 100%. And you'll see the mineral resource estimate of ours sitting just merely over the central, west and east deposits. Further, we have option agreements with the government NME, which is reflective by the dotted lines as the option properties to the east, west and north of our properties. Further than that, we understand the Equicoriente assets sit between seven nine kilometers away from the direct mineral resource estimate that we hold.

12:53 If you looked at the inferred resource that they provided in the past, they own approximately a billion tons of inferred resource today, and if you add that to our 5,800,000,000 tons, this region definitely has the potential to become one of the world's largest undeveloped copper clusters, with further exploration potential in the district. Just from where we operate, the Mirador mine is about 40 kilometers to the south and the Fruta Del Norte mine is about 80 kilometers to the south of us. So very well and accustomed area to mining. I would now like to hand over to Javier Toro to talk you through some of the technical slides. Thank you. Hello everyone, in this slide is we are showing how strategically we have encapsulated our footprint.

13:48 As Matt mentioned, this is encapsulated to the north, west, and south. This is a key important considering the environmental, the social, and obviously the economical point of view. From the environmental point of view, with these pre layout, is easy to manage the water, where we will have all the non contact water in the South West of the, of the figure that you see, and after we can monitor in the water in the Northeast. So this consideration has been key for our environmental impact assessment, baseline studies, and hopefully we can receive the approval soon as Matt mentioned.

14:37 From a social point of view, these footprint also basically only impact to communities that they are from the direct influence, and we are not having other direct influence from other communities under this configuration. So it's easy to go for the next stage to the feasibility, basically following this configuration. And from an economical point of view, having a decent capsulated FLT3 gave us different opportunities to improve the CapEx, and also the OpEx cost for the project. In terms of resources, as Matt mentioned it, we have 5,800,000,000 tons of resources.

15:34 In comparison with the previous MRE that we published last year, we did around 80,000 additional meters during 2024, basically. And as you see in the graphic in the upper right side, we have still some opportunities in all the areas, especially in the, in the bottom, in the east and in the west area. And in pink color, you can see the high grade, which is basically in the surface, and in all the areas you can see all the ore that allow us to have the lowest stripping ratio, that we can play with different opportunities further on.

16:25 In terms of the mine plan, which is key, was key for this project based on the stripping ratio, we basically be differing alternatives, moving more material or moving different amount of material to expose the high grade and to have the high grade for, especially for the first five years, for example, and that allowed us to have a low capital intensity as Matt showed in the previous slide. We also work in terms of the NSR variable cutoff, that again allow us to optimize our mine plan and all the economics that you have saw in the previous slide.

17:14 And still there are opportunities in the graphic in the lower part that we could keep doing some additional optimization that for sure we will do in the next stage of the project. Just to mention that all the resources on the MyPlan, we basically were working with AMC, an international consultant company, well known for the market and for all of the industry. And the process plan here that we have been working with out SENCO shows in this graphic the Lajau starting in the left side with the track shop where the mining trucks will be, and after that going to the crusher, to the all related to the milling and the flotation, and finally to the concentrate, and we'll go out to the right side of this graphic with a concentrate to the port. So the layout is very optimized like that, layout working together with our SENCO is a simple process plan, even though it's 165,000 tons per day, but configuration is basically primary and secondary crusher and balls and sack and the flotation system.

18:44 One important topic is that we won't have deleterious elements, basically our ore is clean and that gave us opportunities to improve the recovery and also to work in a simple process plant like yeah, we will have two concentrates, copper with gold and silver and moly concentrate. And the plant also is located in the upper elevation in comparison with the tailings management facility, which means that the tailings will go by gravity to the tailings facility. The tailings management facility have been working with NYPDESOL, another international company.

19:32 The capacity for the tailings is 1,300,000,000 tons and basically the tailings will have or the tailings management facility will have a principal dam and three smaller dam is a classic centerline method with a rock fill starter dam, and after that the cyclone sand racing, and two important topic is the water management that we have been working with, with night diesel, being sure that we will have beach in all the dams, it is beach in all the dams, and also the dam is not hard to sign it following the long term stability and their operation and seismic loading condition, following the CDA criteria, which is the Canadian Dam Association.

20:29 The infrastructure for the project also is important basically in terms of roads, in terms of ports, and in terms of power. So we, Ecuador and especially in the area where we will be working, have a very good infrastructure in terms of the roads for the port, the distance between the project and the Port Bolivar that we are gonna use is around three forty kilometers with well established and constructed road. And for the power, we will take the power from a substation called Bomboinza and we will construct a transmission line, which is 65 kilometers from our project and Bombo Inza.

21:18 And the rest of the road for the logistics also have been well established, which is more or less the same than Bolivar. These three key topics will be for our internal infrastructure. Go back to you, Matt. Thanks Javier. Just looking at the project timelines and catalysts for shareholders, as mentioned before, twenty twenty five activities and twenty twenty six activities are fully funded by the $200,000,000 financing package by Royal Gold. And that was concluded in May this year following a very competitive process. We raised the capital at a very low cost of capital. And we streamed a very small percentage of the gold and provided us a point 3% NSR on the property, a very compelling and non dilutive deal to shareholders and highlights the real highlighted the real quality of the asset at the point in time.

22:14 Today, delivered the pre feasibility study and the MRE. And as said we hope to obtain the technical approval of the EIA prior to year end. Looking forward into 2026, the exploitation agreements in the second half of the year, early work in the second half of the year and the completion of the feasibility study and into '27 and beyond that will be the construction period. So certainly a very exciting period of time for shareholders in the project. And also the greenfield step out opportunities and field work does continue. Capital will be deployed in a very mature manner when assessing these opportunities. Just touching on the final slide for today. It goes without saying that today's presentation I think highlights the uniqueness of this multi generational project.

23:06 WARINC is very well positioned for the world's desperate requirements for future copper supply. This is a region, it's a regional district hub, which is significant for the world. The team and I will continue to focus on maximization of shareholder value, and continue to adequately de risk the project. We look forward to some exciting news and announcements in the very short term, and I would like to now thank everyone for joining and I'll hand back to the operator. Thank you very much.