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Creating a Leading Canadian Gold Exploration and Development Company 1 June 9 th , 2015

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Page 1: Creating a Leading Canadian Gold Exploration and ...sectornewswire.com/ObanCorporatePresentation.pdf · Creating a Leading Canadian Gold Exploration and Development Company 1 June

Creating a Leading Canadian Gold Exploration and Development Company

1June 9th, 2015

Page 2: Creating a Leading Canadian Gold Exploration and ...sectornewswire.com/ObanCorporatePresentation.pdf · Creating a Leading Canadian Gold Exploration and Development Company 1 June

This presentation (the "Presentation") contains certain information that may constitute forward-looking information under applicable Canadian securitieslegislation, including but not limited to information about current expectations on the timing and completion of the proposed transaction to combine ObanMining Corporation ("Oban") with the other companies referenced herein (including the ability to satisfy all conditions precedent thereto), the financialcondition and anticipated market capitalization of the proposed combined company, the pro forma capitalization and ownership of the combinedcompany, the timing and completion of the proposed investment by and management services agreement with Osisko Gold Royalties Ltd, the timingand success of exploration, development and metallurgical testing activities, the timing, extent and success of mining operations (if any), projectdevelopment and related permitting, the results of exploration programs, the results of economic analyses (including the Windfall Lake PEA as definedbelow), the ability to expand mineral resources beyond current mineral resource estimates, opportunities for growth of mineral projects, estimates ofgold prices, the ability to adapt to changes in gold prices, estimates of costs, estimates of planned exploration and development expenditures andestimates of mine development and construction. This forward-looking information entails various risks and uncertainties that are based on currentexpectations and actual results may differ materially from those contained in such information.

These uncertainties and risks include, but are not limited to, the strength of the global economy; the price of gold; operational, funding and liquidity risks;the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineraldeposit commercially viable are present; the risks and hazards associated with underground and open pit mining operations; and the ability of Obanand/or the other companies referenced herein to fund their substantial capital requirements and operations. Risks and uncertainties about Oban'sbusiness and the business of each company referenced herein are more fully discussed in each entity's disclosure materials filed with the securitiesregulatory authorities in Canada and available under the applicable company profile page at www.sedar.com. Readers are urged to read thesematerials. Oban assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from suchinformation unless required by law.

The distribution of the Oban Shares in connection with the offers will not be registered under the United States Securities Act of 1933 (the "U.S.Securities Act") and the Oban Shares may not be offered or sold in the United States absent registration or an applicable exemption from the registrationrequirements of the U.S. Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation ofan offer to buy the Oban Shares, nor shall there be any offer or sale of the Oban Shares in any jurisdiction in which such offer, solicitation or sale wouldbe unlawful.

Forward Looking Statements

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Mineral ResourcesThis Presentation contains information regarding mineral resources estimated at the projects of the companies referenced herein. Mineral resources arenot mineral reserves and do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental,permitting, legal, title, socio-political, marketing or other relevant issues. In particular, the quantity and grade of reported inferred mineral resources inthe estimates referenced in this Presentation are uncertain in nature and there is insufficient exploration to define these inferred mineral resources as anindicated or measured mineral resource in all cases. It is uncertain in all cases whether further exploration will result in upgrading the inferred mineralresources to an indicated or measured mineral resource category.

For details regarding the key assumptions, parameters and methods used to estimate the mineral resources presented in respect of the Windfall Lakeproject, please see the "Technical Report for the Windfall Lake Gold Project, Quebec" dated April 17, 2014 (effective date March 3, 2014) filed onwww.sedar.com under the company profile of Eagle Hill Exploration Corporation. Please note that the Windfall Lake PEA (as defined below) is based ona mineral resource estimate with an effective date of November 13, 2014.

For details regarding the key assumptions, parameters and methods used to estimate the mineral resources presented in respect of the Whitney project,please see the "Technical Report and Resource Estimate on the Upper Hallnor, C-Zone, and Broulan Reef Deposits, Whitney Gold Property, TimminsArea, Ontario, Canada" dated February 27, 2014 filed on www.sedar.com under the company profile of Temex Resources Corp.

For details regarding the key assumptions, parameters and methods used to estimate the mineral resources presented in respect of the Juby project,please see the "Technical Report for the Juby Gold Project, Ontario" dated and effective February 26, 2014 filed on www.sedar.com under the companyprofile of Temex Resources Corp.

Preliminary Economic AssessmentThe preliminary economic assessment of the Windfall Lake project (the "Windfall Lake PEA") is preliminary in nature and includes inferred mineralresources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to becategorized as mineral reserves, and there is no certainty that the Windfall Lake PEA will be realized.

Qualified PersonThe technical information contained in this Presentation has been reviewed and approved by Gernot Wober B. Sc., P. Geo., a Qualified Person withinthe meaning of NI 43-101.

Cautionary Statements Regarding Technical Information

* See Temex presentation dated March 1, 2015 and/or back end of Temex news release

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4

Combination to Create a Leading Canadian Gold Exploration and Development Company

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5

Transaction Summary

1. Based on cash per share value of $0.11 per share for Oban Mining Corporation

Proposed Transaction

Business combination between Oban, Ryan Gold, Corona Gold,Temex Resources and Eagle Hill Exploration (herein referred to as “New Oban”) by way of share exchange takeover bid

Combined entity market capitalization of approximately C$122 million1

C$20 million private placement by Osisko Gold Royalties

Consideration

10.000 Oban common shares per Eagle Hill Exploration share, or $1.10 per share, and 5 common share purchase warrants of New Oban exercisable at $0.151 per common share of New Oban

0.780 of an Oban common share per Temex share, or $0.0861 per share 1.880 Oban common shares per Ryan Gold share, or $0.2071 per share 7.671 Oban common shares per Corona Gold share, or $0.8441 per share

DealProtection

Customary non-solicitation covenants, subject to normal fiduciary outs Termination fees payable in certain circumstances if the transactions not completed Holders of New Oban, in addition to the board and management have agreed to support the transaction and

enter into lock-up agreements

Other Considerations

66⅔ minimum tender condition Oban shareholder vote (majority of shareholder votes cast) Customary regulatory and court approvals Osisko to receive 3 seats on New Oban’s Board of Directors

Timing Launch take-over bids on or before June 30, 2015 (and in any event no later than July 21, 2015) Closing expected early August

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Pro Forma Ownership in New ObanPost Osisko Private Placement2

6

Consideration Summary

1. Based on cash per share value of $0.11 per Oban share2. Osisko ownership excludes current share position in Ryan Gold and Oban as well as insider holdings; Based on pro forma basic shares outstanding3. Based on fully-diluted-in-the-money shares outstanding at the offer price

Units Eagle Hill Temex Ryan

GoldCorona

Gold

OfferExchange Ratio

(Obanshares

per share)

10.000x 0.780x 1.880x 7.671x

Offer Price1 (C$ share) $1.10 $0.086 $0.207 $0.844

Implied Equity Value1,3 (C$ M) $28.7 $16.0 $24.2 $19.5

Oban11%

Eagle Hill

24%

Temex13%Ryan

20%

Corona16%

Osisko16%

Page 7: Creating a Leading Canadian Gold Exploration and ...sectornewswire.com/ObanCorporatePresentation.pdf · Creating a Leading Canadian Gold Exploration and Development Company 1 June

Units Oban Eagle Hill Temex Ryan Gold

Corona Gold Osisko PP Pro

Forma

Shares Issued M 119.9 261.3 145.5 220.2 177.2 181.8 1,105.9M

Equity Value (at offer price)1 C$M $13.2 $28.7 $14.6 $24.2 $19.5 $20.0 $122M

PF Ownership in New Oban2 (%) 11% 24% 13% 20% 16% 16%3 100%

Cash & Investments C$M $11.4 $1.4 $1.1 $22.0 $17.7 $20.0 $74M

($65M)4

Debt C$M -- -- -- -- -- -- --

7

New Oban Capitalization Summary

1. Based on fully-diluted-in-the-money shares outstanding at the offer price2. Pro forma private placement by Osisko Gold Royalties3. Excluding current share positions in Ryan Gold and Oban4. Net of estimated transaction fees and severance

~C$65M in cash resources and no debt pro forma the transaction

• Osisko Gold Royalties pro forma ownership of 18%1 in New Oban including private placement shares and current share positions in Ryan Gold (9.5%) and Oban (1.6%)

• Dundee Corporation pro forma ownership of 15%1 in New Oban including current share positions in Ryan Gold (22.6%), Corona Gold (26.3%) and Eagle Hill (29.5%)

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Osisko Gold Royalties to provide cornerstone financing– Total amount: $20 million1

– Pro Forma ownership: 18% (including shares already held in Oban and Ryan Gold)

Royalties– Osisko to hold exclusive right on

• Existing royalties within New Oban• Future royalty and stream financing by New Oban• Right to purchase a 1% NSR royalty for an additional $5 million on post deal

properties only (Catharine, Whitney, Juby and Windfall) upon Oban first financing subsequent to the transaction

Management Services Agreement– Osisko to enter into agreement with New Oban to provide technical services, legal and

finance/accounting support to New Oban

8

Osisko Private Placement

1. Osisko’s pro forma ownership in New Oban not to exceed19.9%.

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9

Strong Management Team

Jose Vizquerra Benavides – Senior VP, COO

Blair Zaritsky – CFO

John F. Burzynski – President & CEO

Gernot Wober – VP Exploration

New Oban Management Team

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10

New Oban Board of Directors

Jose Vizquerra Benavides

Sean Roosen – Co Chairman

Ned Goodman – Co Chairman

Robert Wares

Patrick Anderson

John F. Burzynski

Currently President & CEO of Oban Mining Corporation. Mr. Vizquerra previously worked as Head of Business Development for Compania de Minas Buenaventura, prior to which he worked as production and exploration geologist at the Red Lake gold mine.

Currently Chairman & CEO, Osisko Gold Royalties. Previously served as President & CEO of Osisko Mining Corporation, where he led the transition of Osisko from a junior exploration company to a leading intermediate gold producer. His boardships include Astur Gold Corporation, Bowmore Exploration Ltd., Condor Petroleum Inc., Dalradian Resources Inc., Falco Resources Ltd. and NioGold Mining Corporation.

Mr. Goodman is the founder of Dundee Corporation, an independent asset management company focused in the areas of real estate and infrastructure, energy, resources and agriculture. From July 2014 to January 2015, Mr. Goodman was Chairman of Dundee Corporation and from June 1993 to July 2014 he was President and CEO of Dundee Corporation.

Currently serves as President & CEO of NioGold Mining. He was responsible for the discovery of the Canadian Malartic gold deposit, which was subsequently developed by Osisko Mining Corporation into one of Canada’s largest gold producers. Mr. Wares also sits on the Board of Directors of the following public companies: Bowmore Exploration Inc., Komet Resources, Oban Mining Corporationand Wildcat Silver.

Currently President & CEO of Dalradian Resources Inc. Previously was President & CEO of Aurelian Resources Inc. which was acquired by Kinross Gold in 2008. Mr Anderson currently sits on the board of Oban Mining Corporation.

Currently Senior Vice President, New Business Development at Osisko Gold Royalties. Previously served as Vice President, Corporate Development of Osisko Mining Corporation. He currently serves as a Director with Condor Petroleum Inc. and is Chairman of the Board of Directors of Oban Mining Corporation. Mr. Burzynski is also a founding member of EurAsia Resource Holdings AG, a private resource fund based in Europe.

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11

New Oban Board of Directors (Continued)

Murray John

René Marion

Keith McKay

David Christie

Currently Director, President and CEO of Corona Gold Corporation, an exploration company, and was President and Chief Executive Officer of Dundee Resources Limited, a private investment company. Prior to September 2004, Mr. John was an investment banker with Dundee Securities Corporation, a securities dealer.

Business executive and mining engineer with approximately 30 years of industry experience. He was President and CEO of AuRico Gold from 2007 through 2012, where he oversaw the friendly takeover of Northgate Minerals and the subsequent development of the Young-Davidson mine in Kirkland Lake. From 1995 to 2007, Mr. Marion held a variety of roles with increasing responsibility at Barrick Gold.

Currently CFO and Corporate Secretary of Dalradian Resources Inc. Mr. McKay was previously the CFO at Continental Gold Limited, CFO of Andina Minerals Inc., Vice President and CFO at Aurelian Resources Ltd. Mr. McKay sits on the board of Oban Mining Corporation.

Currently President & CEO of Eagle Hill Exploration Corporation. Mr. Christie is also Vice President at Goodman & Company, Investment Counsel Inc. and Dundee Resources Limited. Mr. Christie previously spent 12 years as a highly ranked gold and precious minerals equity analyst at two bank-owned brokerages before joining Goodman in 2011. He is a director of Eagle Hill Exploration and Formation Metals Inc. as well as two private companies: Condor Precious Metals Inc. and True North Nickel Inc.

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~C$65 M in cash and investments

Total of 2.54 Moz M&I Au resources and 3.83 Moz Inferred Au resources across all projects1

Strong board, management and technical team, with the support of Osisko

Strong shareholder base

– Osisko Gold Royalties 18%2,3

– Dundee Corporation 15%2

Focus on gold in Ontario and Quebec

Significant land position with ~114,000 hectares of highly prospective ground

Clear strategy for consolidation of three Camps

– East Timmins (Temex-Whitney)

– Urban Barry (Eagle Hill and Oban)

– Catharine Camp (Oban, Juby-Temex)

Camp consolidator

Path for intermediate producer (100koz+ /y Au)

12

A Leading Canadian Gold Exploration and Development Company

1. See Appendix A for full disclosure on mineral resources; See also “Cautionary Statements Regarding Technical Information – Mineral Resources” 2. Pro forma private placement by Osisko Gold Royalties3. Includes Osisko share ownership in Ryan Gold and Oban

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13

Consolidation of Three Major Gold Camps

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14See Appendix A for full disclosure on mineral resources; See also “Cautionary Statements Regarding Technical Information – Mineral Resources” Note: Resources shown consider all categories

Ont

ario

Que

bec

Casa-Berardi District>3MOz Au

Estrades Mine(Poly-Metallic)

Poirier Mine(Copper)

Joutel1.1MOz Au

Vezza350,000 Oz Au

Larder Lake13MOz Au

Rouyn-Noranda19MOz Au

Bousquet21MOz Au Malartic

14MOz Au

Val D’Or20MOz AuMatachewan

GeologyGrenville Gneisses

Archean Sediments

Proterozoic Sediments

Felsic Intrusives

Archean Volcanics

N

Windfall Lake Deposit

1.6M Oz Au

Catharine Camp

East Timmins Camp

Urban Barry Camp

Temex Resource:Juby Deposit

3.99MOz Au

Lakeshore Gold Corp.

Timmins71MOz Au

Temex: Whitney Project

900,000 Oz Au

Young Davidson

Kirkland Lake24MOz Au

Consolidation of Three Major Gold Camps

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15

Robust Project Pipeline in Canada

Pre-Drill

• Catharine - Cote

• Catharine - Miller

• Juby• Whitney • Windfall

Discovery Infill PEA Feas.

New Oban is a camp consolidator

Page 16: Creating a Leading Canadian Gold Exploration and ...sectornewswire.com/ObanCorporatePresentation.pdf · Creating a Leading Canadian Gold Exploration and Development Company 1 June

Oban has subscribed for up to 19.9% of current outstanding shares of BonTerraResources Inc. in flow-through shares

– Price: $0.22/share

Conditional upon the entry into a subscription agreement and satisfactory due diligence by Oban

Upon closing, Oban will have the right to nominate one member to the BonTerra’s Board of Directors

16

Private Placement into BonTerra Resources Inc.

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Next Steps

17

Windfall (PEA)

Whitney (Infill)

Year 3

Catharine

Year 2Year 1

Feasibility Study Construction

Infill Drilling

Juby (Infill) Infill Drilling PEA

Exploration Drilling

PEA U/G

Resource Compilation

Current Stage

Page 18: Creating a Leading Canadian Gold Exploration and ...sectornewswire.com/ObanCorporatePresentation.pdf · Creating a Leading Canadian Gold Exploration and Development Company 1 June

~C$65 M in cash and investments

Total of 2.54 Moz M&I Au resources and 3.83 Moz Inferred Au resources across all projects1

Strong board, management and technical team, with the support of Osisko

Strong shareholder base

– Osisko Gold Royalties 18%2,3

– Dundee Corporation 15%2

Focus on gold in Ontario and Quebec

Significant land position with ~114,000 hectares of highly prospective ground

Clear strategy for consolidation of three Camps

– East Timmins (Temex-Whitney)

– Urban Barry (Eagle Hill and Oban)

– Catharine Camp (Oban, Juby-Temex)

Camp consolidator

Path for intermediate producer (100koz+ /y Au)

18

Summary

1. See Appendix A for full disclosure on mineral resources; See also “Cautionary Statements Regarding Technical Information – Mineral Resources” 2. Pro forma private placement by Osisko Gold Royalties3. Includes Osisko share ownership in Ryan Gold and Oban

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Appendix A: Mineral Resources19

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Mineral Resources1

20

Whitney Project (100%) Windfall Project

1. See “Cautionary Statements Regarding Technical Information – Mineral Resources”Note: Inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

Juby Gold Project

Tonnes Gold Grade Gold

(Mt) (g/t) (Moz)

Indicated 26.60 1.28 1.09

Inferred 96.20 0.94 2.91

Category

Tonnes Gold Grade Gold

(Mt) (g/t) (Moz)

Indicated 2.76 8.42 0.75

Inferred 3.51 7.62 0.86

CategoryTonnes Gold Grade Gold

(Mt) (g/t) (Moz)

Measured & Indicated 3.22 6.85 0.71

Inferred 1.00 5.34 0.17

Category

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Appendix B: Property Information21

Page 22: Creating a Leading Canadian Gold Exploration and ...sectornewswire.com/ObanCorporatePresentation.pdf · Creating a Leading Canadian Gold Exploration and Development Company 1 June

Windfall Project

22

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Windfall Project Overview

23

Windfall Lake Property (100% interest, Au, Quebec) 12,400 ha comprising 285 mineral claims in the Abitibi mineralized belt Located within the region covered by Quebec’s Plan Nord A PEA study was recently completed with the following parameters1:

– 1,200 tpd underground mine producing 106koz/year average gold production through an existing ramp

– 7.8 year mine life– 8.26 g/t head grade– Preliminary metallurgical tests of 95.7% gold recovery using flotation and leaching– LOM total gold production of 828koz Au– C$558/oz total LOM average cash costs

• Average mining cost of $76/t– C$240.6M development capital– C$241.4 M NPV (5%) on a pre-tax basis– C$135.2M NPV (5%) on a post-tax basis– 3.4 years pay back (pre-tax)

Feasibility study expected by 2017

1. See “Cautionary Statements Regarding Technical Information – Preliminary Economic Assessment” and the news release dated April 28, 2015 of Eagle Hill Exploration Corporation available on SEDAR.

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Windfall Lake Overview

24

Key Parameters – 2015 PEA1 Mineral Resources2

Source: Windfall Lake PEA1. See “Cautionary Statements Regarding Technical Information – Preliminary Economic Assessment”2. See “Cautionary Statements Regarding Technical Information – Mineral Resources”

Tonnes Grade Gold(M) Au (g/t) Au (Moz)

Indicated 2.76 8.42 0.75

Inferred 3.51 7.62 0.86

Mine Life (Years) 7.8

Mill Design Throughput (tpd) 1,200

Au Mill Head Grade (g/t) 8.26

Recovery (%) 95.7%

Avg. Annual Au Production (koz) 106.2

LOM Total Au Production (koz) 828.0

Operating Costs (C$/t) $141.70

Cash Costs (C$/oz) $558

LOM Development Capital (C$ M) 240.6

LOM Sustaining Capital (C$ M) 53.5

5% After-Tax NPV (C$ M) $135.2

After-Tax IRR (C$ M) 17.2%

Operating Parameters

Capex

Economics ($1,200/oz Au)

102106

104117

104 105 104

86$564

$556

$575

$515

$585 $587 $578

$498

1 2 3 4 5 6 7 8Au Production (koz) Cash Costs (C$/oz)

Operating Profile1

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Whitney Project

25

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Whitney Project Overview

26

60% / 40% JV with Goldcorp (Porcupine Gold Mines)– Temex is the operator of the joint venture– LOI signed with Goldcorp to increase its equity interest to

85% of the Whitney JV Located near Timmins, Ontario, on the Porcupine-Destor fault Property includes the past producing Hallnor, Broulan Reef and

Bonetal mines– The Hallnor Mine was the highest grade gold mine in the

Timmins gold camp, having produced 1.7 million ounces of gold at an average grade of 0.40 opt (13.71 g/t)

1. See “Cautionary Statements Regarding Technical Information – Mineral Resources”

Tonnes Grade Gold(M) Au (g/t) Au (Moz)

Whitney Project (100%)Measured & Indicated 3.22 6.85 0.71Inferred 1.00 5.34 0.17

Overview Mineral Resources (100%)1

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27

Whitney - JV with Goldcorp 60/40 Shallow underground resources @ 6.85 g/t

*Most of the annotated intercepts are historic, except where annotated as Temex

(Temex)

(Temex)

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Juby Gold Project

28

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Juby Gold Project Overview

29

Juby Gold Project (100% Interest, Au, Ontario) Located in the Shining Tree Area, Gowganda, Ontario Temex holds a 100% interest in 226 claims covering

14,423 acres Property holds the Juby Main Zone on the Juby Lease

Property, its extension onto the Golden Lake Property, and the Hydro Creek and Big Dome zones

There is no diamond drilling along the 3 kilometre long geological trend between the Juby Main Zone and Hydro Creek and Big Dome areas, offering excellent opportunity for resource expansion

1. See “Cautionary Statements Regarding Technical Information – Mineral Resources”

Tonnes Grade Gold(M) Au (g/t) Au (Moz)

Juby Project (100%)Indicated 26.6 1.28 1.09Inferred 96.2 0.94 2.91

Mineral Resources1

Overview

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Juby Gold Project

301. Note: The intercepts shown above are selected intercepts and are not necessarily representative of the broader results of the relevant drill program.

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Catharine Project

31

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Catharine Project: Path to Discovery

32

Catharine Fault an underexplored structure

Revisit area of exploration from 1930’s

Consolidated land package: > 5000Ha

Property contains known mineralization

3 types of mineralization:

– Syenite-hosted Au

– Vein Au

– Cu-Au VMS

1. Note: The intercepts shown above are selected intercepts and are not necessarily representative of the broader results of the relevant drill program.

Golden Dawn Minerals ZoneCAT99-04: 31.3m @ 2.74 g/t AuCAT03-10: 1.7m @ 7.77 g/t Au CAT05-02: 1.5m @ 5.69 g/t Au CAT08-02: 3.0m @ 3.55 g/t AuCAT09-02: 2.0m at 8.96 g/t Au

Miller-Independence MineMG14-08: 97.5m @ 1.05 g/t AuMG14-12: 102m @ 0.99 g/t AuMG14-09: 63m @ 0.89 g/t Au

Planet Gold Mine430,000 Oz at 2.9 g/t Au (1941)

Mirado Deposit 367,000 Oz at 1.18 g/t Au

Kennedy-Boston Mine46m Vertical Shaft, VG reported

Daley Showing70 g/t Ausurface sample

Fault Zone5.3 g/t Au surface sample

Kalyniuk Zone16.9 g/t Au surface sample

Roger Barnet Zone33 g/t Au surface sample

Hounslow Zone78.9 g/t Au surface sample

Puits Ostrom ZoneOld Vertical Shaft, 3 veins w/ VG

N Barry-Hollinger Mine 70,000 Oz at 8.3 g/t Au