Your Top Generation Mining Questions Answered

0:08 Hello everyone and welcome to Generation Mining's live summit today. I'm pleased to introduce our speakers, President and CEO of Generation Mining, Jamie Levy, as well as their CEO, Drew Anwalt. Jamie and Drew are going to be conducting a live Q&A session today as well as going over some of the most recent news and updates. But I want to make sure that everyone in the audience is aware that if you'd like to participate in today's Q&A, please do so using the Q&A chat found on the right-hand side of your screen at any point during today's conversation. As always, this event is being recorded and is going to be available on six.com in the coming days. But Drew, Jamie, you guys

0:39 have some recent news that you want to start with at the top. So I'm going to pass things over to you to get us kicked off. Well, Thank you, Cameron. Thanks for 6 for hosting today. Earlier this week, I guess November 14th, was probably the biggest news that the company's had to date. And we signed a community benefit agreement with Bidigon Nishinabeg, which just borders the southern project, southern portion of our project area. And I just wanted to thank everybody for being patient. It took some time here through our joint review panel hearings, And there's a saying that Warren Buffett has, and it always resonates to me. And it's the stock market is a device for transferring money from the impatient to the patient.

1:28 And I just want to thank all of, sorry Drew for the laugh, but I think the shareholders, if thanks for your patience, it took a little while to get the CBA with BN. And I think the next steps with our environmental assessment, November 30th date should be a positive approval process due to

1:46 the CBA with BN. So thank you all to the patient investors. And I think a time for developing our project is very soon. So thank you for coming. And I just wanna introduce you to The important person on our team right now is Drew Anwalt. That's going to take us through our development of our project. Thanks, Drew. Yeah, thanks, everyone. I'm looking forward to a couple of questions coming up. So if I'm not mistaken, Cameron, are you going to field those questions for us? Absolutely, guys. And just as a reminder to everyone in the audience, we have received some questions in advance of today's summit. So we're going to start off with those. But please feel free to enter into the Q&A chat any questions that you might have for our gentleman here today, and we will get to those. But

2:36 to start things off, in regards to the CBA with BN, what are your next steps?

2:43 Drew, you wanna take that one? I'll take it. Well, next steps with the BN, we do have a bank council resolution with the CBA. So the CBA with BN is complete right now. So we put out a press release on the November 14th. So next step is we did do deep consultation with BN to get to the CBA. It did go to the community to get ratified. They had a referendum on that. It took them some time and November 12th was the date that they had it. It was a positive outcome. It was more than a majority, 90% of their community members voted in favor of the CBA with Generation BGM. Great. Next question that we have, have you made or come to a decision regarding an environmental assessment?

3:34 Drew, why don't I start off and you finish. We did apply for our environmental assessment. We had a joint review panel hearings over the spring, 0203, took off a few years of Drew's life, but we did a good job on that. We do have the conditions from IAC, from the federal and the province, and we're on timing to get a recommendation on November 30th. Drew, anything to add on? Yeah, it was, it's again, the process that we went through for the environmental assessment

4:09 is without a doubt, the highest standard of environmental assessment that Canada, that anyone in Canada goes through. So it's an extremely robust process. There's a lot of community, both First Nations, indigenous communities and local communities, feedback and consultation. So it was, again, Jamie's correct. I wouldn't suggest that I had a full head of hair going into the process, but had I had a full head of hair, it wouldn't have existed after that process. But suffice to say, it's a very robust process that we've gone through. So we're quite confident with Biktigon Nishnawbeg's

4:52 support of the project with the recent referendum that we anticipate the government to approve the EA. Now that being said, we've got a number of conditions that have been issued. I think there was about 350 odd conditions that have set the framework for both the federal and provincial elements of the EA, then of course we go through the normal permitting process for any operation in Ontario. Absolutely. This question came in and so, I mean, it has to do with the EA as well but assuming a positive EA decision, what are your next steps? Yeah so the positive EA, so we've got to meet the permitting conditions, the 3 critical permits that we have to get before we commence construction and the first phase of construction is harvesting trees on site.

5:54 So the critical ones are the closure plan.

6:00 So we've got to set up what the mine looks like at the end of its mine life and the closure conditions. So that's a closure plan that goes through and we've already done the pre-negotiations with a lot of folks, both government and BN on the closure plan. We've got to get an offset permit for Caribou in the northern range with which is on the north shore of Lake Superior and then the permit to cut trees.

6:28 So we can't get any of those permits until the EA is approved on November 30th. So as Jamie says, all those forms go in November 31st and we start the official process of the permitting. So along with the permitting or I guess in parallel to the permitting are some draft EA conditions that have been issued associated with the environmental assessment. And those will also play into the, some of them, the approvals or systems or documents we largely need to get in place prior to construction.

7:06 Great, okay. Next question, what's the current status of the exploration program? That's a good question. Our exploration program is not happening right now. As much as I think we'd like to explore this past project, I think we have over 220 square kilometers and a bunch of nice targets to drill. Focus right now is to getting our EA, then to get the provincial permits and then to build this project. If we have some extra funds while we're building, we're gonna do some exploration, but right now our money is earmarked for developing the Marathon Palladium

7:46 Copper project. Absolutely, okay. What's the expected timeline of final approval to build the mine? So again, I can start this, Jamie, and you can add color on it. So the key timing is really the EA approval. So that's set to, we should hear on or before, and we expect it'll likely be on November 30th. So once the EA is approved, then effectively that sets the path for the development of the project.

8:22 We acknowledge that both the federal and provincial governments have really stood behind their critical mineral strategies and While nothing's a rubber stamp, not even remotely, they're very supportive of the project developing the critical minerals.

8:43 Just to add on, going through this EA process, as Drew had mentioned, it was the highest standard of environmental protection and we did work with BN and other indigenous communities, the Town of Marathon, and many other individuals to make sure that what we were doing was protective of the land, the water, the air, and so we're very happy with our outcome. So since we've done all of that, I would hope that the provincial and the federal governments, which are, as Drew had mentioned, pro-critical metals, and trying to look to move these projects swiftly ahead, that there should be hopefully no delays in us getting through the E A and the provincial permits that we can begin construction in the 1st or 2nd quarter. Of 2023.

9:30 Okay another question. What are relations like with local communities and is there support?

9:37 Well, as we put out in the press release on November 14th, we do have support from Biktigun Nishnawbeg. There's a town that we're part of, which is the town of Marathon, and Mayor Dumas, it's a big supporter of this project. If you ever want to ask him how the town is supportive of it, just call him up or listen to his interviews. He is a huge proponent for mining and so is the town. The town had a pulp and paper mill that got shut down numerous years ago. The main service right now, it would be Hemlo and that's somewhat winding down right now, the famous gold camp. So this town needs this project, and they're very supportive of us moving this project ahead.

10:25 Awesome, and to do with that, the next question is, what are the key concerns of BN, and how did you mitigate them in your production plan? I mean, as we put out again, Drew, I'll start off here, but we did have a community benefits agreement. So within there, There's certain confidential documents that we can't share right now, but that's,

10:53 how do I say that? We mentioned earlier about the environmental protection. There is some jobs and training and business opportunities for the community, And we're looking forward to partnering with them, going ahead for the development and operations of this project. Drew, anything to add? Yeah, and BN, first and foremost, was extremely strong, which largely we were very supportive of, of environmental protection. We're on their exclusive land.

11:24 It's within 10 to 20 kilometers of their community. The Bictigon, sorry, the Pick River or Bic-Tig-Zibby goes directly through our, east of our project and through their community. So it was a, it was a, we've got a large responsibility to be environmentally, good environmental stewards of the land because we are directly linked to the community. BN leadership and chief Duncan Machado, are exceptional. Community leaders. They recognize that environmental protection is first and foremost.

12:09 And also there's an opportunity for the community to grow with our project. So they're very much partners in the project going ahead. Again, like Jamie said, from a community growth in terms of employment, development, training, and also business opportunities that the community already has some exceptional skills at and together with generation and BN, we should be able to develop those even further. Great, The other question we received in advance of today's summit is if you're looking to do any financing. We are looking to do some financing as mentioned on previous webinars and in press releases.

13:01 We are going to need to do some project financing to build this project. We've already announced, as most people know, a $240 million stream with Wien Precious Metals. We've already drawn down $40 million of that. That other $200 million will come on a financial investment decision, which will hopefully occur after we receive the provincial permits, not after we get the EA. So if it's the 1st or 2nd quarter of 2023 when we get those permits inside. We had put out a press release earlier that there's about $400 million US indicative interest from Export Development Corporation of Canada and 2 other banks. So we're just trying to finalize that. Hopefully we could have something to the market if not by the end of this year, earlier next year, on some term sheets from the banks. That money's not drawn down until

13:53 after we raise some equity, and right now we're probably a little bit shy on the wind stream and on the debt, so we're gonna have to look to do some equity financing, and we're hopeful that we're gonna be able to do this non-dilutive, but we're waiting to get our EA and then a few of the provincial permits, and then we'll go ahead with some raise, But right now we're looking to do some raises that are non-dilutive to our shareholders. I'm a large shareholder of Generation Mining, and the last thing I would like to do is to dilute at this level that we're trading at about 10% of our net present value. But let's see what happens over the next couple of months here, and then we'll see if we could protect the shareholders' interests. Awesome. Now we'll be diving into the questions that we're receiving live.

14:39 And Jamie, I think you touched on at least the next 2 questions with your answer there, but if there's anything to reiterate or expand upon, let's make sure that we do so. Pete wants to know if you've considered expanding the streaming deal with Wheaton.

14:53 We've looked at numerous non-dilutive financing options. Great. And Doug also has a question here regarding financing. If there are any other options to demonstrate, as he says, skin in the game, other than an equity portion, and if so, are you considering them? Yes. Sorry for the short answer. Yeah, fair enough. Okay. Yes. Pete's got another question. When do you expect you will be able to begin construction, for instance, felling trees and building roads? Drew, you want to take that? Yeah, it's really predicated on receiving the permits. We're on an aggressive schedule as generation has done all through its history.

15:39 We've largely been very successful on meeting those aggressive schedules. But with the, and with the permitting requirements, like I said, the 3 critical permits we need for to begin harvesting, but it's also meeting the ongoing permitting through the timeline. So our current target, again, aggressive target, but we have had the history of achieving these targets, is end of Q1, early Q2. Again, it's predicated on receiving, obviously, the permits and in turn, the financing. Right, absolutely. We definitely have more questions about financing and I just wanna make sure that we touch on them, even if you've already given their answer, but Steve wants to know if you've had offers for financing the mine built.

16:32 I think we've already answered that question by the Wheaton stream and by the indicative bank interest. So we have had some interest and some other interest from outside of that. But as I've mentioned earlier, we're waiting to get the key EA in our pocket and then some indication on those conditions when we could build, when we could start to build. I believe we have just under 25 million in the bank still, so we're good on cash right now. But if we're going to start building this mine in the 2nd or 3rd quarter of 2023, we're going to have to draw down on some of that debt financing and look for other project financing money. Great. And Frederik, I think that hopefully answers your question about the status of debt financing discussions. So I'll move over to Adam's question.

17:17 If you're considering any hedging programs as a part of your financing initiatives. Yes, we are looking at hedging opportunities for the various metals. So that's all we could talk about so far. Well, look, gentlemen, I want to pass things over to you. Those are, we've had a lot of questions come in so far. If you guys have any comments or any, you know, any discussion that you'd like to review, anything you'd like to highlight about not only your latest news, but anything that we've talked about otherwise, I encourage everyone in the audience to continue asking questions if you have any. But Jamie, Drew, do you have any comments for today? Drew, you want to start and I'll finish? Yeah, again, we're going full steam ahead on the premise that we at Generation have historically, like I said, advanced this project pretty quickly.

18:09 Again, going through the EA process we've gone through, extremely, again, folks on the outside have said, geez, I don't know how you guys got through this. So we've been successful on meeting a lot of targets and advancing the project pretty quickly. And that's what we're working on. We've got a home office group, a projects group, that's advancing for project readiness. Again, there's a lot of balls in the air and a lot of things advancing, but frankly, when you're going into one of these things, you want to do it with people that have done it before, that have had the experience to get it done. And that's largely the project's team that we've already put together. So I'm pretty proud of those folks.

18:55 And I believe we can get from here to there. And to follow up, I want to thank Drew and his operations team and our sustainability team to getting to this level that where we're at right now. I mean, originally, this company was founded in 2018. In 2019, we acquired the project from Sabanier. People know that we put out a resource report, we put out a PEA, we put out a feasibility study, we started our permitting process or continue the permitting process. Now We're almost there. For those football people, we're in the red zone right now. I think we're on the goal line right now. We're going to cross over it. I just want to thank all the shareholders for being patient. It's been a long road.

19:44 If you look around, for those of you that are mining and you follow the other companies there's very few if any development projects for PGMs and copper and certainly not in Canada or North America so I think we are a story that should be watched. It's a project that as Drew had mentioned earlier and I mentioned it's protective of the environment. We're getting support from VN. We're gonna get our social license from the government very soon. And we're producing critical metals that the world needs for their cell phones, for their computers, for their cars, for everything. And I just hope that we get the support from our investors out there, that this project is very, very inexpensive to where we should be at. And once we get those feasibility numbers or hold out in the for the timing of when we actually start to construction, this project is going to be very robust.

20:40 So thank you all for being shareholders and hopefully in the next month or so we're going to get a positive E or shorter than that. And then in March, we're going to be doing some work on the project.