PROPOSAL TITLE

A PROPOSAL TO

CLIENT:

Month Day Year

March 2015

World Scale VTM Holdings - Pacific Coast Mexico

� Concession holder mining company − HQ: Canada

− Privately held − Operator of profitable barite mines in

Chiapas State, Mexico & Western Canada − Exploration experts

� Mining target − Polymetallic mineral sand ore body

Vanadiferous Titanomagnetite (“VTM”). − Economically favorable concentrations of

high grade magnetite, vanadium, titanium, gold and Rare Earth Elements.

− Location: State of Chiapas, Mexico. − Type of mining: Dredge (lowest cost). − Potential resource: 700 billion tonnes VTM ore

− Concessions totaling 854,431 ha (8,543 km2). � Onshore (sand & hard rock) 282,814 ha. � Offshore (sand) 571,617 ha.

− Term of concessions: 50 years.

− Development stage: Late stage exploration.

− Expenses to-date > US$15 million.

− Technical Report (CIM NI43-101) by

respected independent geological consulting

firm 2011.

� Polymetallic ore body − Magnetite source rocks – Granodiorite

− Mountains parallel to Pacific Ocean

continually depositing magnetite and heavy

minerals over 8500 km2 coastal plain for >50 million years.

− Deposit extends 30km inland and >20km offshore in shallow waters.

− One of the largest polymetallic

vanadium deposits to be discovered

anywhere in the world. − Concessions feature145km long magnetic

anomaly identified by magnetic survey.

− Studies show magnetite throughout all

concessions, corresponding to magnetic

survey.

− Beach sand deposits similar to New Zealand Steel’s Taharoa operation.

− Potentially 250 times larger than aggregate total of New Zealand Steel’s iron sand mines.

− Iron ore is completely liberated from the sand.

− VTM contains exceptionally high 0.61% V2O5.

− VTM concentrate of 87% Fe3O4 (61% Fe) can be

produced through low cost gravity

concentration followed by magnetic separation.

� Infrastructure − Rail infrastructure in place.

− Power readily available.

− Paved 4-lane highway access.

− Direct access to the Port of Chiapas

protected by Mexican Navy.

� Environmental benefits − “Clean” waste sand from dredge tailings

will be used for reclamation of coastal erosion.

− River dredging can augment State flood control.

− Dredged flatland sites can create sustainable fish or shrimp farms.

� Mexico Federal & State of Chiapas

Government support for development

− The federally controlled Chiapas Port

Authority supports dredging (required

annually) construction of mineral terminal

and plant development at the Port of

Chiapas.

− The State of Chiapas government fully supports

mining projects and jobs creation.

− Readily available labour from nearby City of

Tapachula, population 200,000.

− Port dredging and environmental permits are in

place.

Blackfire Exploration Ltd

Company Name Here

NI 43-101 & Development Objectives

� Independent “Qualified Person” Technical Report* (2011) on Arena

Negra concession: *Based on Canadian Institute of Mining NI 43-101.

− Concession hosts an exploration target for iron sands concentrations containing areas with

grades between 4% and 10% Fe. (1 hour ICP, 24 hour ICP resulted in higher percentages)

− Fe3O4 (magnetite) concentrate with a grade of > 60% Fe is possible with combination of low

cost gravity and magnetic separation.

− Significant that titanium and vanadium preferentially concentrate with the Fe and are present

in potentially commercial quantities in the final concentrate.

− Economics of a dredge and titano-magnetite removal plant are very favorable assuming proof

of suitable resource.

− No condition modeled resulted in a negative NPV.

− Concession is a “property of merit”.

− Beach sands of [this] concession and larger concession look very similar and notionally, the

conclusions of the current study may be relevant for the larger concession as well.

− Rare Earth oxides Neodymium (Nd2O3) & Praseodymium (Pr6O11) averaging combined

440g/tonne & Niobium (NbO) averaging 187g/tonne present in concentrate.

� Polymetallic Oxides Production

− Create high value oxide production plant utilizing VTM concentrate as feedstock. − Conservative market prices of oxides listed below range from $500/mt (Fe2O3) to $90k/mt (Pr6O11) − Virtually “unlimited” multi-billion tonne supply of low cost feedstock <$20/mt.

� 99% hematite Fe2O3 (69% Fe) � 99% vanadium pentoxide V2O5 � 99% titanium dioxide TiO2 � 95+% gold Au � 99% REEs:

• niobium oxide NbO • praseodymium oxide Pr6O11 • neodymium oxide Nd2O3

− Oxide plant features proven “acid leaching” technology. − Regeneration of acid with zero atmospheric emissions.

� Oil & Gas Pipeline Weights

− Develop patented “Slimline” oil & gas pipeline weighting product line utilizing best in class magnetite as filler for pipe sacks. � Magnetite filled weights provide far greater efficiencies due to higher density (4.7-5.2 t/m3)

resulting in multi-million $ cost savings per 100km of pipeline versus alternative weighting methods; gravel, sand, concrete and coated pipeline.

� Virtually “unlimited” multi-billion tonne supply of low cost magnetite <$20/mt. � Capitalize on Mexico’s oil & gas industry growth and close proximity to Chiapas. � Expand service to USA, Canadian and South American oil & gas pipeline markets.

March 2015

Blackfire Exploration Ltd

Blackfire Exploration Ltd

Concessions, Magnetic Anomalies & Gold Exploration Targets

March 2015

Hard Rock Anomalies & Gold target areas on Ampilacion Arena Negra

Frontera, Arena Negra, F1-F7, Angelina

Magnetic anomaly with high Fe, Rare Earth Elements and world class vanadium concentrations

Concentrated sample = 60.7% Fe, 1.29% V2O5, 505g/tonne Nb, 302g/tonne Nd2O3

Blackfire Exploration Ltd

Brent WillisPresident

4150, 825-8th Avenue SW Calgary, AlbertaCanada T2P 2T3

bwblackfire@gmail.com

Mobile: 403-923-5944