RESOURCES CORP.
Advanced Stage Zinc Exploration in Ireland (Extended)
June 2021 TSX.V: ZNG | OTC: GRLVF | FRA: 3GE Important Notice This Presentation is given by Group Eleven Resources Corp. (“the Company”), incorporation number BC1098004, registered office at 1050-400 Burrard Street, Vancouver, BC, Canada, V6C 1M2 and is made subject to the terms outlined below. No securities regulatory authority has expressed an opinion about the information contained in this Presentation and it is an offence to claim otherwise.
This document and its contents may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or disclosed or published, in whole or in part, for any purpose. This document is being provided for information purposes only and thus viewing, downloading, reproducing, copying or distributing this Presentation may be restricted by law in certain jurisdictions.
Except for statements of historical fact relating to the Company, certain statements in this Presentation may constitute forward-looking information, future oriented financial information, or financial outlooks (collectively, “forward-looking information”) within the meaning of Canadian securities laws. Forward-looking information may relate to this Presentation, Company’s future outlook and anticipated events or results and, in some cases, can be identified by terminology such as “may”, “will”, “expected”, “estimate”, “potential” or “possible” or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to commodity prices, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, the timing and amount of future production, the timing of construction of the proposed mine and process facilities, capital and operating expenditures, the timing of receipt of permits, rights and authorizations, and any and all other timing, development, operational, financial, economic, legal, regulatory and political factors that may influence future events or conditions, as such matters may be applicable. In particular, this Presentation contains forward-looking statements pertaining to proposed expenditures for exploration work, and general and administrative expenses.
Such forward-looking statements are based on a number of material factors and assumptions, and include the ultimate determination of mineral reserves, if any, the availability and final receipt of required approvals, licenses and permits, sufficient working capital to develop and operate any proposed mine, access to adequate services and supplies, economic conditions, commodity prices, foreign currency exchange rates, interest rates, access to capital and debt markets and associated costs of funds, availability of a qualified work force, and the ultimate ability to mine, process and sell mineral products on economically favourable terms. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in this Presentation. The Company has no specific policies or procedures for updating forward-looking information. Forward-looking statements are based upon management’s beliefs, estimates and opinions on the date the statements are made and, other than as required by law, the Company does not intend, and undertakes no obligation to update any forward looking information to reflect, among other things, new information or future events. Potential investors are cautioned against placing undue reliance on forward-looking statements.
This Presentation does not constitute investment advice or a recommendation regarding the securities of the Company or an offer or invitation to subscribe for securities of the Company or its affiliates.
Scientific and technical information in this Presentation, excluding information related to other companies obtained from publicly available sources, has been approved by David Furlong, P Geo who is a qualified person for the purposes of National Instrument 43 101 and who is not independent of the Company. Scientific and technical information is derived from the technical reports entitled “NI 43-101 Independent Report on a Base Metal Exploration Project at Ballinalack, County Westmeath, Ireland” with an effective date of January 11, 2019, “NI 43-101 Independent Report on the Zinc-Lead Exploration Project at Stonepark, County Limerick, Ireland” with an effective date of April 26, 2018, and “NI 43-101 Independent Report on a Base Metal Exploration Project at Silvermines, County Tipperary, Ireland” with an effective date of February 28, 2017, each of which was prepared for the Company by EuroGeol Dr. John G. Kelly, PGeo, MIMMM, MIQ and EuroGeol Paul Gordon, PGeo, MSc of SLR Consulting (Ireland) Ltd. in accordance with National Instrument 43-101. Complete copies of the technical reports are available for review, in colour, on the System for Electronic Document Analysis and Retrieval (SEDAR) located at the following website: www.sedar.com.
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 2 Investment Highlights Investment Highlights - Summary Exciting Newly-Discovered Massive Sulphides in a Large, Emerging Zinc Camp in Ireland
Zinc price up nearly 40% over last 12-months on China demand growth and lower global supply Strong Zinc Market Prospect of zinc-batteries emerging as grid-power storage solution
Politically Stable, Democratic Jurisdiction Ireland - Safe, Mining- One of the Largest Zinc Miners in Europe and Host to Some of World’s Largest Zinc Deposits Friendly Jurisdiction Modern and Thriving Mining Industry Continuously from 1960s to Present
Strong Team Deep Experience in Exploration, Capital Markets and Legal
Recently Completed 5-Year Period Largely Focussed on Regional Exploration (“Big Think”) Focussed on Drilling Now Focussed on Drilling
Dominant and Large License Position in Limerick Region (Stonepark / PG West) Dominant Ground Position Quickly Emerging Frontier for Zinc Exploration in Ireland in a Hot Camp Large-Scale Potential (similarities to Boliden’s Navan Zinc Deposit)
Stonepark MRE – 5.1mt of 11.3% Zn+Pb (Inferred; NI43-101; owns 76.56% interest) Two Zinc Deposits Ballinalack MRE – 5.4mt of 8.7% Zn+Pb (Inferred; NI43-101; owns 60% interest)
Recently Discovered High-Grade Massive Sulphides at Carrickittle Prospect (PG West; 100%) Recently Discovered G11-2840-04 intersected 10.3m of 19.6% Zn+Pb and 43 g/t Ag (approximately true width) Shallow, High-Grade Shallow – Mineralization is Within 100m of Surface
Significant Shareholders Glencore, Michael Gentile, MAG Silver, Teck
Aligned with Shareholders Insiders Founded Group Eleven and Remain Large (>5%) Shareholders
Active Drilling with Active Drill Program in Q3 and Q4 2021 Upcoming Catalysts Drilling at PG West (Carrickittle and other prospects)
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 4 Why Zinc? Why Zinc?
Global Zinc Inventories at Decade Lows, Zinc Price Muted Due to Covid-19 and US-China Trade War
► Zinc Batteries Zinc Price vs. LME Inventories (1995 to present) • Zinc8 (ZincNyx) • NantEnergy • EOS-Bryt Energy • EnZinc | Redflow ► Zinc in Fertilizers • China: World Food Program ► Conventional Uses • Galvanizing steel, die-casting, alloy metals ► Mine supply Zinc Price (US$/lb) - 1 Year • Growing but likely 1.10 impacted by Covid-19 1.00
► Trade War / Covid-19 US$/lb • China – speed up infrastructure 0.90 spend?
Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 6 Why Ireland? Ireland: one of the largest zinc miners in Europe and host to some of the world’s largest zinc deposits
8 Why Ireland? Rich Jurisdiction - Ranked No. 1 in the World in Terms of Zinc Found Per Square Kilometre
Ireland – Geology and Economics Ballinalack • First-world, democratic and politically stable Navan (Boliden, • Very prospective for zinc yet underexplored active) • Ores typically clean, easy to process, simple • Infrastructure rich – roads, power, tidewater • Close to European smelters Tynagh(shut) • Low economic threshold - rule of thumb zinc deposit size is 10mt at 10% Zn+Pb Silvermines Galmoy(Lundin,shut) Silvermines(shut) Lisheen(Vedanta,shut) Ireland – Fraser Institute (2020) PallasGreen(Glencore) • No. 4 for ‘Policy Perception Index’ Stonepark Gortdrum(Cu,shut) / PG West • No. 12 for ‘Investment Attractiveness’ Tralee
Group Eleven asset 0 25 50 Zinc deposit kilometres Zinc – small deposit or major occurrence Source: modified from P. Tyler
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 9 Team and Capital Structure Team – Exploration, Capital Markets and Legal Experience
Board of Directors Management
Dan MacInnis | Chairman (non-executive) Shaun Heinrichs | Chief Financials Officer • Geologist / Executive • Chartered Accountant with 20 yrs experience • Retired CEO of MAG Silver (sits on MAG Board) • Including 7 yrs at Ernst & Young LLP • 40 yrs experience, involved with 7 discoveries • Previously with Veris Gold, VMS Ventures • Spent 5 yrs in Ireland in late 70s with Noranda
Bart Jaworski | Chief Executive Officer David Furlong | Chief Operating Officer • Geologist / ex Mining Equity Analyst • Geologist with 24 yrs industry experience • 24 yrs experience (co-founder of Group Eleven) • Co-Founder of Group Eleven • Including 12 yrs with Raymond James and Davy • Previously, GM at Rathdowney Resources • Regional identification of Coffee Creek anomaly
Brendan Cahill | Director (non-executive) Dr Mark Holdstock | Project Manager • Law and corporate finance expertise • Geologist with over 30 yrs experience • President & CEO of Excellon Resources Inc. • Led team which discovered >20Mt ‘SWEX • Previously with Pelangio Group of Companies extension’ at Navan mine in Ireland • Previously, MD at Aurum Exploration Services
Alessandro Bitelli | Chair, Audit Cmte. (non-exec) • Chartered Accountant • CFO of Lundin Gold (Fruta Del Norte, Ecuador) • Former CFO of Red Back Resources upon $10bln takeover by Kinross in 2010 Ken Klassen | Director (Glencore appointee) • 20 year career as Canadian M&A and corporate lawyer at leading Canadian law firms • Retired (2016) General Counsel of Glencore plc • Recently on Board of Noranda Income Fund
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 11 Capital Structure
Share Owners Average Expiry Shares Ownership (Basic) Structure Exercise Price Date^ (mln) Basic 137.5 Options Directors $0.19 Feb-23 1.0 Officers $0.16 Oct-22 2.9 Glencore Consultants $0.20 Sep-23 0.2 26.4% Employees $0.13 Oct-22 0.7 Others Warrants Investors $0.12 Jan-23 10.7 46.5% Glencore $0.14 Oct-22 15.1 Michael F. Diluted 168.1 Gentile DSUs Indep. Directors n/a n/a 1.2 17.0%
Note: ^ Earliest Expiry Date; above data as of April 30, 2021
Insiders MAG Teck Other Items 5.6% <5.0% 2.4% Cash on hand (Q1 2021) C$2.4 mln
Market Capitalization (as at Jun-01-2021) C$22.0 mln
Daily Average (50 Day) Trading Volume (TSX-V) 173,021 shares
52-wk Trading Range C$0.05-C$0.18
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 12 Share Price Performance and News Flow Share Price Performance and News Flow Price (C$/sh) and Volume | Jun-2020 to Jun-2021 | ZNG-TSXV
0.17
2 4 11 15 19 0.15
0.13 1 3 5 6 7 8 9 10 12 13 14 16 17 18 20
0.11 CAD
0.09
0.07
0.05
1 Expl News 2 Corp News 1.5
0.5 mln sh
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun No News Release Description No News Release Description 1 Enters Separate C$50k Private Placement (Jun-12-2020) 11 Grant of Stock Options and DSUs (Oct-02-2020) 2 AGM - Glencore Approved as Control Person (Jun-23-2020) 12 Results of Regional Drilling at PG West (Nov-03-2020) 3 Closes Tranche 2 (C$640k) of Glencore PP (Jun-29-2020) 13 Intersects 7.24m of 30.5% Zn+Pb at Carrickittle (Dec-09-2020) 4 Intersects 10.3m of 19.6% Zn+Pb at Carrickittle (Jul-06-2020) 14 Announces C$1.5m Private Placement (Dec-24-2020) 5 Announces C$1.0 mln Private Placement (Jul-09-2020) 15 First Tranche Done, M. Gentile Increases to 19.9% (Dec-30-2020) 6 Placement Upsized to $1.55m (Jul-21-2020) 16 Final Tranche Done, Glencore Maintains Interest (Jan-11-2021) 7 Closes Upsized $1.55m Placement (Jul-30-2020) 17 Exploration Update at Carrickittle and General (Jan-28-2021) 8 Glencore appoints Ken Klassen to the Board (Aug-12-2020) 18 Start of Drilling and IP Results at Carrickittle (Feb-22-2021) 9 Commences Drilling at Stonepark (Sep-10-2020) 19 Intersects 14.4m of 0.22% Cu at Gortdrum (Mar-22-2021) 10 Commences Follow-Up Drilling at Carrickittle (Sep-30-2020) 20 Intersects 1.4m of 14.8% ZnEq at Zone 2, Carrickittle (May-26-2021)
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 14 Stonepark / PG West Project Searching for the Heart of the Pallas Green Trend
15 Stonepark / PG West – Pallas Green Corridor is Near-Term Focus Dominant License Position in Most Metal-Endowed Zinc Camp in Ireland (outside of Navan)
16 Stonepark Project ► Stonepark Deposit – Expansion Potential Stonepark Deposit (Plan View) – Expansion Opportunities Multiple Highly-Prospective Zones with Encouraging Results from Historic Reconnaissance Drilling
Drilling to Date
G11 New Holes (Jan-2021) >4% Zn N G11-2638-04 2-4% Zn SPN <2% Zn No mineralization
Areas Inferred Resource (5.1mt @ 11.3% Zn+Pb) SPW Highly Prospective G11-2638-05 SP Not Yet Drilled Likely Mineralized Trend
Resource Zones Stonepark North 0.95m of SPN 10.7% Zn+Pb SPW Stonepark West 0m 500m (TC-2638-068) SP Stonepark
TSX.V: ZNG, FRA: 3GE 18 Stonepark – Maiden Inferred Mineral Resource Average Grade of 11.3% Zn+Pb – with the Bulk of Resource Grading at an Impressive 12.1% Zn+Pb
Note: Classification of the MRE was completed based on the guidelines presented by Canadian Institute for Mining (CIM), adopted for Technical reports which adhere to the regulations defined in Canadian National Instrument 43-101 (NI 43-101). • Inferred Mineral Resources are at 4.8% zinc equivalent cut-off grade • Zinc Equivalent (ZnEq) = (NSRPb+NSRZn+Mc+Pc)/(RZn*PZn*(PrZn-ScZn)-RZn*PZn*PrZn*(RoyZn/100)) • ZnEq cut-off grade (calculated from Net Smelter Return) using the following parameters: o Zinc price of US$3,284/t, recovery 88%; Lead price of US$2,425/t, recovery 80% o Concentrate grade 60% zinc, 50% lead o Processing cost of US$21.25/t; Mining cost of US$46.50/t; Treatment charges of US$1.00/t of concentrates o Payable zinc 85%, lead 94%, with selling cost zinc US$1,257/t metal and lead US$1,026/t metal o Royalty of 4.5% • The Inferred Mineral Resource classification is based on geology, trends in mineralisation, drilling spacing, sampling QA/QC, estimation search pass number and number of samples, and zinc equivalent grade • Tonnages and metal are rounded to the nearest 100,000 to reflect this as an estimate • Average In Situ Dry Bulk Density for mineralised material is 3.24 t/m3, based on available data • Mineralisation wireframes were constructed using a minimum true thickness of 2.0 m, at 2% Zn+Pb natural cut-off • CSA Global is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the MRE
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 19 Stonepark North (Cross-Section) – Expansion Opportunities Step-Out Hole (G11-2638-04) Should Allow for Expansion of Wireframe
N G11-2638-04 S
17.95m of 1.3%, including: LEGEND
045 038 -
- 2.15m of 4.3% (incl 0.50m of 12.0%) and 074
- 1.55m of 4.5% (incl 0.55m of 7.6%) 2638
2638 New Drilling
- -
047
-
TC TC 2638
- 18.20m of 2.6%, including: TC 2638 Waulsortian Historic Drilling - 3.60m of 4.0% (incl 0.35m of 10.5%) and
TC Limestone 1.80m of 6.6% (incl 0.50m of 13.6%) Wireframe of MRE (deposit)
Mineralized
intercept
TC TC
- 0.50m of New Assays
2638 -
2638 12.0%
- 0.50m of Historic Assays
032 - 036 12.0%
ABL
7.30m of 7.45m of 5.4m of 5.35m of 2.00m of 12.7% and 7.20m of 0 100 11.6% 27.8% 32.2% 16.4% 3.40m of 8.5% 15.3% metres
TSX.V: ZNG, FRA: 3GE 20 Stonepark – PG West Project ► Pallas Green Corridor | Carrickittle Stonepark / PG West – Pallas Green Corridor (Cross-Section) Main Zinc Mineralizing System May Occur Under the Volcanic Complex
Carrickittle - Kilteely Pallas Green and Stonepark
Newly 1 Discovered 45.4mt of 8% Zn+Pb and 5.1mt of 11.3% Zn+Pb2 High- Grade at Carrickittle Not to Scale – Conceptual only Target: Higher- grade, mirror-image of Pallas Green?
1 Pallas Green Inferred Resource (Glencore, Resources & Reserves, dated Dec 31, 2019) 2 Stonepark Inferred Resource (Group Eleven news release dated April 17, 2018)
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 22 Stonepark / PG West – Carrickittle-Kilteely (Cross-Section) Several Mineralized Intercepts along 1km Strike Extension North of Carrickittle SSE NNW >1km Strike Extent Along Pallas Green Corridor Kilteely Carrickittle G11-2840-03 G11-450-02 P13 G11-2840-04* OL-81-04 2840/7
Knockroe Waulsortian Limestone Volcanics
112m 139m 6.6m incl. py, sph, EOH EOH gal (+/- volcanics)
Specs of sph, gal, py (+/- volcanics) 233m EOH (did not reach Legend target at base of Waulsortian) Recent drilling 393m showing highly Dissolution Breccia EOH 504m disturbed lithology, Black Matrix Breccia EOH suggesting major New Major Fault – Zinc Mineralization fault(s) near-by interpreted from recent drilling Volcanics Approx. 200m of Faults intermittent pyrite and possible marcasite; with local silica-flooding and 0 100 200 300 elevated zinc, within metres interlayered volcanics and brecciated limestones Note: ‘sph’ = sphalerite (zinc-bearing mineral); ‘gal’ = galena (lead-bearing mineral; ‘py’ = pyrite (an iron sulphide); * G11-2840-04 – 10.3m of 19.6% Zn + Pb and 43 g/t Ag (News Release dated July 6th, 2020)
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 23 Recently Discovered High-Grade at Carrickittle (PG West) Hole G11-2840-04 (announced July 2020) intersected 10.3m of 19.6% Zn+Pb and 43 g/t Ag, including:
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 24 Follow-Up Yields More High-Grade at Carrickittle (PG West) Hole G11-2840-09 (announced Dec 2020) intersected 7.2m of 30.5% Zn+Pb and 108 g/t Ag, including:
25 Carrickittle Regional View – Along Pallas Green Corridor
TSX.V: ZNG, FRA: 3GE 26 Discovery of Thick, Shallow, High-Grade at Carrickittle Highlights from G11-2840-04 – 10.3m of 19.6% Zn+Pb and 43 g/t Ag (despite 1.1m of no recovery)
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 27 Carrickittle – Key Assays from Follow-Up Drilling at Zone 1 Highlights Include G11-2840-09, Elevated Copper and a High-Grade Silver Zone (736 g/t Ag)
TSX.V: ZNG, FRA: 3GE 28 Carrickittle – Key Assays from G11-2840-09 at Zone 1 Continuous Zone of High-Grade Intervals with Elevated Copper and Silver
TSX.V: ZNG, FRA: 3GE 29 Carrickittle – Zone 1 (Plan View, Massive Sulphide Lenses)
TSX.V: ZNG, FRA: 3GE 30 Carrickittle – Zone 2 (Plan View, Vein Mineralization)
TSX.V: ZNG, FRA: 3GE 31 Carrickittle – Zone 1 (Long-Section A-A’, Lens 1)
TSX.V: ZNG, FRA: 3GE 32 Carrickittle – Zone 1 (Long-Section B-B’, Lens 2)
TSX.V: ZNG, FRA: 3GE 33 Carrickittle – Zone 1 (Cross-Section C-C’, Lens 1 and 2)
TSX.V: ZNG, FRA: 3GE 34 Carrickittle – Zone 1 (Cross-Section D-D’, Lens 1 and 2)
TSX.V: ZNG, FRA: 3GE 35 Carrickittle – Zone 2 (Cross-Section)
TSX.V: ZNG, FRA: 3GE 36 Carrickittle – Zones 1-4 (Plan View) – High Prospectivity to West
29
TSX.V: ZNG, FRA: 3GE 37 Carrickittle – Zones 1-4 (Plan View) – Intercepts
TSX.V: ZNG, FRA: 3GE 38 Zone 1 – Analogous to K Zone at Galmoy? Orientation (north-west) and elongated nature of K Zone has similarities to Zone 1 at Carrickittle
K Zone
1km
Source: Lundin Technical Report (WGM, April 2005)
TSX.V: ZNG, FRA: 3GE 39 PG West Project ► Ballywire Prospect PG West – Ballywire: Potential for Re-Interpretation As Well Mineralization Drilled in 2019 May Also Be Viewed Through a Carrickittle-Style Re-Interpretation Pallas Green Corridor
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 41 PG West – Ballywire: Compelling Follow-Up Targets Follow-Up Drilling at Shallow Targets is Next Logical Step
? ?
?
? ?
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 42 Ballinalack Project Navan Bed Potential Lies Beneath
43 Ballinalack – Inferred Resource with Upside Potential
• 60% Group Eleven Ownership • 40% Zhongjin Lingnan Mining (HK) Company Limited (Nonfemet)
Strategic location • 50km west of Navan (largest zinc deposit in Europe)
• 5.4 Mt grading 8.7% combined (7.6% zinc and 1.1% lead)* Resource Estimate • Inferred category (NI 43-101) • 3rd largest undeveloped occurrence in Ireland
• 1970 - discovered (Syngenore) • 1991 - Feasibility study (Oliver Resources) History • 2005 - Acquired by Teck • 2009 - Nonfemet paid Teck US$6.0m for 40% (implied valuation of US$15.0m) • 2017 – Group Eleven acquires Teck’s share of project
• Dense network of local roads; nearby railway; 14.5km from Mullingar (20k Infrastructure pop.)
Metallurgy • Demonstrated to be amenable to conventional floatation (1991)
• 93,350m of drilling (63,950m historic and 29,400m by Teck) Database • 63 line km of 2D seismic surveys (and other geophysical/geochemical surveys)
Sunk cost • Over C$30 million (G11 estimate)
* Mineral Resource Estimate in the Inferred Category as stated in Group Eleven news release dated November 28, 2018.
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Ballinalack 44 Ballinalack – First NI 43-101 Resource Estimate Average Grade of 8.7% Zn+Pb – Significant Improvement on Historic Estimate from 1991
Classification of the Ballinalack MRE was completed based on the guidelines presented by Canadian Institute for Mining (CIM), adopted for Technical reports which adhere to the regulations defined in Canadian National Instrument 43-101 (NI 43-101). • Inferred Mineral Resources are at 5.2% zinc equivalent cut-off grade. • Zinc Equivalent (ZnEq%) = (NSRPb + NSRZn + NSRAg in Pb + NSRAg in Zn)*100/(RZn*PZn* (PrZn-ScZn) - RZn*PZn*PrZn*(RoyZn/100)) • ZnEq cut-off grade (calculated from Net Smelter Return) using the following parameters: • RZn: Metallurgical recovery of Zn, PZn: Zn price, ScZn: Selling cost for Zn, RoyZn: Royalty. • Mining recovery of 95%; Mining dilution of 10% • Mining cost of US$60.00/t; Processing cost of US$13.63/t • Treatment charges of US$400/t of Zn concentrate and US$270/t of Pb concentrate; Refining charges of US$1.00/oz for Ag • Concentrate transport to smelter: US$100/t of wet concentrate. • Processing recovery 92.7% Zn; 54.1% Pb; 82.6% Ag in Zn; 9.4% Ag in Pb. • Zinc price of US$2,954/t; Lead price of US$2,325/t; Silver price of US$15.79/oz • Concentrate grade 64.4% Zn, 45% Pb, 98 g/t Ag in Zn, 104 g/t Ag in Pb; Concentrate moisture of 9% • Payable Zn 85%, Pb 93%, Ag in Zn 49%, Ag in Pb 51.9%, with selling cost Zn US$1,259/t metal, Pb US$1,026/t metal, Ag in Zn US$6.73/t metal, and Ag in Pb US$6.97/t metal. • Royalty of 4.5%. • The Inferred Mineral Resource classification is based on geology, trends in mineralisation, drilling spacing, sampling QA/QC, estimation search pass number and number of samples, and zinc equivalent grade. • Tonnages and metal are rounded to the nearest 100,000 to reflect this as an estimate. • Assumed average in situ dry bulk density for mineralised material is 3.05 t/m3. • Mineralisation wireframes were constructed using a minimum true thickness of 2.0 m, at 3% Zn+Pb natural cut-off. • CSA Global is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the MRE.
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Ballinalack 45 Ballinalack – Significant Exploration Upside
Numerous Targets to Follow Up Regionally, and in Proximity to Historic Estimate
Ballinalack Recently zinc-lead deposit* Surrendered
* Mineral Resource Estimate in the Inferred Category as stated in Group Eleven news release dated November 28, 2018.
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Ballinalack 46 Ballinalack – Navan Bed Targets (Plan View) Strong Navan Bed Mineralization Already Intersected
LEGEND 4a
Ballinalack Deposit 4b Zinc Targets Ballinalack Fault 4c Cross Faults 4d Historic hole that intersects Navan Beds G11 hole
% Zinc + Lead G11-1344-02 4e n/a Not assayed for silver g/t Silver
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Ballinalack 47 Ballinalack – Hanging Wall Navan Bed Zinc Targets Hanging wall targets virtually untested with drilling to date
Cross Faults Ballinalack Fault Ballinalack Deposit* (blue)
4e
4c 4d 4b Target Areas
Navan Beds 0 250 metres Looking ESE (approximate)
* Mineral Resource Estimate in the Inferred Category (5.4mt @ 7.6% Zn + 1.1% Pb) as stated in Group Eleven news release dated November 28, 2018.
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Ballinalack 48 Ballinalack – Footwall Navan Bed Zinc Targets Footwall targets already pierced by a number of strong zinc intercepts
Cross Faults Ballinalack Deposit* (blue)
Ballinalack Fault 1
2 2
33
Target Areas Navan Beds 0 250 metres Looking NNW (approximate)
* Mineral Resource Estimate in the Inferred Category (5.4mt @ 7.6% Zn + 1.1% Pb) as stated in Group Eleven news release dated November 28, 2018.
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE Ballinalack 49 Ballinalack – Ballycorkey Prospect (Regional View) Crest of Antiform with Increasing Grades and Thicknesses
TSX.V: ZNG, FRA: 3GE 50 Ballinalack – Ballycorkey Prospect (Local View) Crest of Antiform with Increasing Grades and Thicknesses (Towards Target Area)
TSX.V: ZNG, FRA: 3GE 51 Ballinalack – anomalous PGMs proximal to zinc deposit
NW SE Ballinalack Zinc-Lead Deposit 5.4 million tonnes of 7.6% zinc and 1.1% lead (Inferred Category); see news release dated November 28, 2018
Calp Limestone
Supra-Waulsortian
Waulsortian Limestone
340m Argillaceous Bioclastic Lmst 401m 473m 481m Shaley Pales Pale Beds 680m 700m Mafic 708m 764m
Dyke 45.1m downhole thickness of mafic dyke containing: 2.30m of 0.216 g/t 4PGE, 0.18% Ni, 0.19% Cu and 203 ppm Co; including Paleozoic Basement 0.30m of 0.528 g/t 4PGE, 0.43% Ni, 0.37% Cu and 494 ppm Co;
TSX.V: ZNG, FRA: 3GE 52 Catalysts Upcoming Catalysts 2021 • PG West | Overall Plan • 5,000m of drilling (fully funded), primarily focussed on Carrickittle in 2021 • PG West - Carrickittle Prospect | Drilling and Geophysics • Phase 3 drilling at Zone 3 and 4, start-up (this summer) and results in Q3 • Phase 3 to include ground magnetics survey on 1km NW extension • Phase 4 drilling at 1km NW extension – to start immediately after Phase 3 • 2,700m of drilling (Phase 3 and 4) remaining at Carrickittle as part of 5,000m planned in 2021 • PG West – Regional Prospects | Drilling • Croom (Zn prospect) – approx. 300 metres, started in May • Denison (Cu-Ag prospect) – approx. 300 meters starting in June • Ballywire (similarities to Carrickittle) – approx. 250 metres, starting early Q3 • Oola (Cu-Ag prospect) – approx. 150 metres, starting Q3
54 How Do We Stack Up Versus Our Peers? Resource Grade (ZnEq%) Ranking Pure Play Zinc-Lead Companies (Excluding Copper and/or Precious Metal Rich Projects)
Carrickittle intercept1 Notes: 1 Hole G11-2840-09 intersected 7.2 metres of 23.9% Zn, 6.6% Pb (30.5% combined) and 108 g/t Ag (news release dated Dec 9th, 2020) 2 3.9mt of 9.2% Zn, 2.9% Pb (12.1% combined) at Stonepark North, the Stonepark North Resource2 largest of three resource blocks at Stonepark (Technical Report dated April 26, 2018)
Source: Data derived from Cormark (Jun-16-2021)
TSX.V: ZNG, FRA: 3GE 56 Relative Valuation – Enterprise Value (EV/lb resource) Pure Play Zinc-Lead Companies (Excluding Copper and/or Precious Metal Rich Projects)
Source: Data derived from Cormark (Jun-16-2021)
TSX.V: ZNG, FRA: 3GE 57 Relative Size/Grade vs. Enterprise Value Tonnage-Grade (X-Y axis) vs. Enterprise Value (Bubble Size)
Source: Data from Cormark (Jun-16-2021)
TSX.V: ZNG, FRA: 3GE 58 Appendices Appendix A - Where Does the Zinc Occur? In Ireland – Zinc Occurs in the Waulsortian Limestone and Navan Beds
Ballinalack Navan
Silvermines
Stonepark Pallasgreen
Oola
Gortdrum
Source: Modified after Dr John Kelly, SLR Consulting, 2018
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 60 Appendix B: Cross-Section of an Irish-Type Zinc Deposit Zinc Typically Occurs Close to Major Faults (which Allowed Mineralizing Fluids to Migrate Upwards)
South North
Faults Navan Bed Target
0 50 100
Source: Modified after Unicorn Mineral Resources Ltd.
TSX.V: ZNG, | OTC: GRLVF | FRA: 3GE 61 RESOURCES CORP.
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