Bill Newman, CFA 403.260.2460 [email protected]

February 8, 2021

OMINECA MINING AND METALS LTD. – SPECULATIVE BUY

OMM - TSX-V $0.32 TARGET: $0.75 At the Forefront of New PROJ. RETURN: 134% VALUATION: 1.0x NAV ACTION – Initiation Coverage with SPEC. BUY Rating and $0.75 Target Price Share Data We are initiating coverage of Omineca Mining and Metals Ltd. (“Omineca” or “OMM”) with Basic Shares O/S (mm)*: 121.9 a SPECULATIVE BUY recommendation and a target price of $0.75 per share. Potential Fully Diluted O/S (mm)*: 179.1 catalysts include initial results from an ongoing placer gold bulk sample, and assay results Market Cap ($mm): 39.0 from a hard rock exploration drilling program, both currently underway at the Company’s Enterprise Value ($mm): 43.4 flagship Wingdam property. Net Debt (W.C.) ($mm)*: 4.4 DETAILS – Near-term Placer Gold Recovery with Lode Gold Exploration Upside *As of September 30, 2020 adjusted for financing w hich closed on November 26, Wingdam Gold Project: Omineca’s Wingdam Gold Project, is located within the historic Cariboo Mining District, in South Central . The property includes both a placer gold 2020. recovery bulk sampling program and a hard rock, lode gold mineralization play looking for the Thomson Chart – One Year source of the placer gold. Wingdam Placer Gold Exploration: In 2012, a test bulk sample of a placer paleochannel located beneath Lightning Creek at the Wingdam property was completed. A total of 173.5 ounces of gold was recovered from a 2.4 metres wide, 23.4-meter-long crosscut drift, with a high average gold grade of 13.6 g/tonne. Operations are currently underway to restart and continue bulk sampling along the paleochannel, with placer gold recovery anticipated to begin in early Q2/21. OMM expects to cover an initial 300 metres of the paleochannel in a series of side-by-side crosscuts this year. OMM’s partner supplies 100% of all the equipment, labour, and other Corporate Profile services necessary to begin the mining operations to earn 50% of the placer gold recovered. Omineca is a Canadian resource company Mining operations are contracted at a fixed, all-in cost to OMM of C$850 per oz of gold produced. engaged in the exploration of precious metals Wingdam Hard Rock, Lode Gold Exploration: OMM holds a 100% interest in 51,000 hectares of within the historic Cariboo Mining District, hard rock mineral tenures at Wingdam, which is located in a parallel trend and in mirror image in South Central British Columbia. The to the five million-ounce Cariboo Gold Project, owned by Osisko Development Corp. (ODV – Company’s primary focus is on the Wingdam TSX-V) a recent spin out from Osisko Gold Royalties (OR - TSX). The Wingdam and Cariboo Gold Project, which is located approximately Gold projects share similar lithology and structure which are the two main ingredients for the 45 km to the east of Quesnel B.C. on the discovery of an economic gold deposit. We note that some of the nuggets recovered from the highway. The property includes 2012 Wingdam bulk paleochannel sample were jagged and angular, contained quartz inclusions, 500 km2 of both placer and hard-rock tenures and a high silver content, which indicates a minimal transportation distance from its bedrock along and surrounding the Lightning Creek valley. source. OMM has completed extensive geological and geophysical studies and has identified an initial focus area in close proximity to the 2012 bulk sample, with a maiden 27-hole (8,000m) Upcoming Events drilling program currently underway. Initial assay results are expected in Q1/21. Valuation: Based upon an annual production rate of 17,500 oz/year, a gold price of US$1,850/oz, - Initial results of the 300-metre bulk sample of the Wingdam placer paleochannel we valued the Wingdam placer gold project at C$115 million ($0.94/share). Adjusting for net (Q2/21) debt and dilution, we arrive at our NAV of $0.77/fd share. At this time, we have excluded any potential value for the current Wingdam hard rock exploration program or any of OMM’s other - Initial results of the 27-hole hard rock exploration assets. Wingdam exploration program (Q1/21) IMPACT – Junior with Near-Term Revenue Potential & Big Exploration Upside - Initial results of the 2,000-metre drill diamond program at Mouse We believe OMM is a compelling investment opportunity given that the Company could be Mountain(Q2/21) on the cusp of establishing placer gold production. Exploration is also underway for the lode gold source of the Wingdam placer gold, which provides substantial speculative upside appeal. We initiate coverage with a SPECULATIVE BUY rating and $0.75 target price, based on a 1.0x multiple to our NAV estimate.

This report has been created by analysts who are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report

www.mackieresearch.com Initiating Coverage – Omineca Mining and Metals Ltd. Page 2

RISKS TO TARGET Omineca is subject to risks inherent in the mining industry. While this is not an exhaustive list, we view the following risks as being noteworthy to investors in Omineca. FINANCIAL RISK| The Company has limited financial resources, has no source of operating income and there can be no assurances that additional funding will be available for further exploration and development of its projects. The ability of the Company to arrange additional financing in the future will depend, in part, on the prevailing capital market conditions as well as the business performance of the Company. EXPLORATION RISK| The exploration for minerals and mining involves a high degree of risk. The Company’s properties are in the exploration stage. There is no assurance that the Company’s exploration and development activities will result in a commercial discovery. The long-term profitability of the Company’s operations will in part be directly related to the costs and success of its exploration programs. DEVELOPMENTAL RISK| Substantial expenditures are required to establish reserves through drilling and to develop the mining and processing facilities and infrastructure at any site chosen for mining. No assurance can be given that funds required for any proposed development of the Company’s properties can be obtained. OPERATIONAL RISK| OMM is utilizing freeze mining technology to recover the placer gold at Wingdam. Although freeze mining technology was successfully employed to recover the bulk sample taken in 2012, there can be no assurances that this technology can be used to economically recover additional placer gold from the Wingdam paleochannel. Omineca’s fixed price production sharing agreement somewhat mitigates the potential risk for cost overruns. REGULATORY RISK| Environmental laws and regulations may adversely affect the operations of the Company. These laws and regulations set various standards regulating certain aspects of health and environmental quality. They provide for penalties and other liabilities for the violation of such standards. COMPETITION| The mining industry is intensely competitive in all its phases, and OMM competes with other companies that have greater financial resources and technical facilities. The Company’s inability to compete with other mining companies for these mineral deposits could have a material adverse effect on the Company’s results. COMMODITY PRICE RISK| OMM’s future revenues is expected to be primarily derived from the sale of gold. The price of gold is highly volatile and is affected by factors beyond the control of the Company. A prolonged period of low gold prices could impede the company’s ability to secure funding for exploration and development activities. RELEVANT DISCLOSURES APPLICABLE TO OMINECA MINING AND METALS LTD. 1. This Issuer has generated investment banking revenue for MRCC. 2. Relevant disclosures required under IIROC Rule 3400 applicable to companies under coverage discussed in this research report are available on our web site at www.mackieresearch.com. ANALYST CERTIFICATION

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