March, 2018 IMAN Iron Ore-Scandium Underground Project

Investment Highlights

World class magnetite iron ore resource with significant exploration upside Located in of , one of the lowest risk mining jurisdictions globally Relative cost advantage via direct shipping route to China Optimized underground mine plan ensures long-term free cash flow generation Significant presence of scandium represents future upside to underdeveloped market

Project Location Resource Estimation

Inferred - Potential Imán Inferred (43-101) CHILE (Non-43-101) Project Cut-off Ore FeT Cut-off Ore FeT Location Copiapó (%) (mmt) (%) (%) (mmt) (%) Vallenar Pacific 44 78.6 51.26 44 8.8 51.15 Ocean 34 147.7 45.43 34 207.9 43.85 ARGENTINA 30 244.5 40.1 30 356.2 39.07 26 379.4 35.7 26 513.2 35.66 22 508.2 32.79 22 649.3 33.25

Source: 43-101 resource estimation prepared by SRK Consulting (Oct, 2013)

Iman Project Highlights

 Located 10km southwest of Vallenar in the north of Chile and 40km from the coast, only 500 above sea level and covering a total project area of 11,217 Ha of mining property

 The project evaluation determined an optimal cut-off grade of 30% Fe, which gives 356.2 mm tonnes of inferred resources with an average grade of 39.07% to be produce by a Sublevel Caving operation.

 Preliminary economic assessment completed by NCL Ingeniería y Construcción Ltd. (“NCL”) shows:

 Robust economics for the project under different pricing and production scenarios

 LOM of 22 year for the underground operation.

 Iman project will use a dry magnetite concentration process to produce sinter feed, which is sellable at premium due to current environmental requirements of China and other countries.

 Chile is widely regarded as one of the world’s friendliest mining jurisdictions and provides strategically competitive shipping route to China relative to the majority of other iron ore development projects

 Extensive infrastructure with access to existing roads, rail, power and water

Source: Company reports Geology and Exploration

 High tonnage Iron-Scandium deposit in the Atacama fault, a mega structure that runs for more than 600 km parallel to the coastline of northern Chile

 Magnetite mineralization reflects large magnetic anomaly of roughly 6 km2, similar to other iron deposits in the region currently in production

 Multiple iron-rich layers present that are stacked and dip towards the southwest

 Magnetite-rich layers with strike lengths of 500m to 1,000m and extend to depths of more than 1,000m

 Current exploration work suggests high Fe grades continue at depth (below 1,000m)

 Exploration work to-date includes 13,582m of drilling commissioned by Mineria Iman and 5,771m completed by previous operator

High Grade Ore Zones Magnetic Anomaly (Section View) (Plant View)

Surface 0

-500 >

-1,000 N

Preliminary Economic Model

Mining Capex Development Capex (US$ mm) 557 Port Capex (US$ mm) 150 Owner´s Cost (US$ mm) 10 Total Capex (US$ mm) 717 Annual Throughput (Mtpy) 15

LOM Operating Metrics Product (type) Fines LOM Average Annual Production (Mtpy) 7.1 Concentrate Grade (%) 62% LOM Cash Cost (US$/t) 28,3

Economics Iron Ore Price: 75 US$/tonne (1) NPV 8% (US$ mm) 515.9 IRR (%) 15.3% Payback Period (2) (years) 5 Iron Ore Price: 90 US$/tonne (3) NPV 8% (US$ mm) 1,050,2 IRR (%) 21.3% Incentive Price (4) (US$/t) 61

1. PEA resources and 2017 internal cost estimation for a long-term iron ore price forecast of US$ 75 / tonne (62% Concentrate) with premium 2. From start of production 3. PEA resources and 2017 internal cost estimation for a long-term iron ore price forecast of US$ 90 / tonne (62% Concentrate) with premium 4. Price to reach 8% IRR Infrastructure and Supplies

Pacific Ocean C-46 Iman Project Port Substation Pellet C-46 5 Substation Punta Alcalde Maitencillo

Vallenar Road Railroad CHILE Proposed Water Pipeline 5 Port Proposed Port Peñablanca City 0 2.5 5 Mining Property - Infrastructure kilometres

Shipping  Shipping 40km to port provided via Ferronor railway adjacent to the Iman Project property

 Feasible port alternatives include potential development at Punta Alcalde and Peñablanca, or use of existing Ports Huasco Port operated by CAP

Water  Project considers dry process, mine water enough for requirements

 Existing nearby substations with readily available and sufficient power and lines that run adjacent to the Power northeast boundary of the Iman Project

 Nearby mining towns of Vallenar, Freirina and Huasco, gives capacity to support development due to Labour existing labour market with the required operating skills

Lower Shipping Cost to China

Labrador Trough

Miles Shipped 15,000

Est. Shipping Costs 25 $/T

West Africa Australia Miles Shipped 12,600 Miles Shipped 4,500 Est. Shipping Costs $20 $/T Est. Shipping Costs 11 $/T Chile

Miles Shipped 11,500

Est. Shipping Costs 18 $/T

Brazil

Miles Shipped 13,200

Est. Shipping Costs 22 $/T Next Steps

Mineria Iman is interested in moving forward to feasibility as an underground project, the plan for that would require ~ US$ 28 mm:

 Lower environmental impact can make permitting easier

 Dry process plant and no stripping ratio implies a much more manageable Capex

 Drilling shows an increase of the grade at depth

 Early access ramp development will shorten time to production in ~1.5 years

Year 1 Year 2 Year 3 Item Task US$ 1 2 3 4 5 6 7 8 9 10 11 12 Drilling $ 9.800.000 Mine Plan, Environmental Studies, Feasibility Study $ 4.175.000 Port Engineering & Concession. Permitting Property Rights & Access Ramp $ 1.100.000 Access Ramp $ 12.300.000 Development Scandium Studies Market & Metallurgic Test $ 200.000 Total Investment $ 27.575.000

Upside (not included in the PEA)

Iman  The resources shown before just includes what the drill holes reaches, but it is open in depth with good perspectives to increase size of the deposit. Scandium  World biggest Scandium Resource (NI 43-101), within the Iron resources  The Scandium is a very important additive in aluminum production, enhancing its characteristics  Global production of 10-12 tonnes per year concentrated in Russia/Eastern Europe and China  Severe supply / demand imbalance, with significant unfulfilled demand from variety of potential clients  Total inferred resource of 503 mm tonnes at a grade of 83 g/t Sc following separation from iron ore  Can be developed as stand-alone operation by a third party or internally with incremental processing costs

Source: Company reports

Contact Information

Additional confidential information concerning Iman Project is available to qualified parties who execute and deliver a confidentiality agreement to Minería Activa in the required form.

All inquiries or communications, including any requests for additional information, should be directed to one of the following individuals at Minería Activa.

Ignacio del Rio Ricardo de la Fuente CEO Minería Activa Analyst +56 2 2964 2000 +56 2 2964 3475 [email protected] [email protected]