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ECUADOR PROJECT

Premier Exploration Opportunity

in Right Country

30 JANUARY 2017

CAUTIONARY NOTE

This document and the information contained herein does not constitute a prospectus

and does not form any part of an offer to sell or the solicitation of an offer to buy

securities in any jurisdiction. Potential investors should not rely solely on the

information contained herein prior to making any investment decision. Investors should

seek independent advice from a qualified finance and investment advisor, giving due

regard to their own personal circumstances, prior to forming any investment decision.

FORWARD LOOKING STATEMENTS:

This document includes certain “forward looking statements.” All statements, other

than statements of historical fact, are forward looking statements that involve various

risks and uncertainties. There can be no assurances that such statements will prove

accurate and actual results and future events could differ materially from those

anticipated in such statements. Such information contained herein represents

management’s best judgment as of the date hereof based on information currently

available. The Company expressly disclaims any intention or obligation to update or

revise any forward looking statements whether as a result of new information, future

events or otherwise.

2

EXECUTIVE SUMMARY

Contiguous concession area of 54,985 Hectare in the center of the

largest mineral discoveries in Ecuador for 25 years

NI 43-101 compliant technical report completed in 2011 is in the

process of being updated by Apex Geosciences

Significant exploration work to date:

multiple large gold mineralization systems

significant anomalies

multiple large caldera-like structures as big as 7km in

diameter

hydrothermal alterations, breccias, stockworks and porphyries

most probable source of large alluvial gold deposits

previously developed to the south

42 exploration targets identified

3

FORTUNA CONCESSIONS

AN INCREDIBLE GOLD OPPORTUNITY

It’s all about the project...

Large contiguous land package in the heart of Ecuador’s prolific gold

mineralization belt

Surrounded by numerous multi-million ounce gold deposits such as

Fruta Del Norte (Aurelian / Kinross / Fortress Mineral [Lundin]), Gaby

(IMC), Mirador (Corriente Resources), Rio Blanco (IMC / Junefield

Mining, a Hong Kong based group) and Quimsacocha (IAMGOLD / INV

Metals)

Favourable geological setting with multiple mineralization styles

identified on the project property

Highly anomalous gold signatures over an extensive area that suggest

the presence of an “enormous gold mineralizing system”

Multiple near surface, high grade, bulk tonnage targets identified.

4

PROJECT LOCATION

100% controlled 573 sq km

contiguous concession area in the

heart of Ecuador’s mineralized belt

50km south of Cuenca – capital of

Azuay province and regional

mining/exploration hub

Good access via Pan American

highway, secondary all-weather

roads and network of gravel roads

Transmission line within 10km

Ready availability of skilled and

unskilled labour

Abundant water available to support

exploration activities

Year-round operating season

5

EXCELLENT AREA CODE FOR

GOLD MINERALIZATION

6

* CRCC-Tongguan Investment Co. Ltd, a Chinese JV company

purchased Corriente Resources in May 2010 for C$660m.

**INV Metals Inc. completed its purchase of Quimsacocha from

IAMGOLD in shares for the equiv. of US$30m in November 2012.

***A private HK company completed the purchase of Rio Blanco

from International Minerals in June 2013 for US$28m

****Fortress Minerals Corp a Lundin company purchased Fruta del

Norte from Kinross Gold for US$240m in November 2014.

.

Company Project Grade

Kinross FDN

Au 11,030,000 O z 6.6g/t

Ag 17,797,000 O z 10.7g/t

IMC Gaby

Au 9,762,000 O z 0.6g/t

Corriente Mirador

Au 8,197,000 O z 0.2g/t

Ag 61,034,000 O z 1.4g/t

Cu 18,686,381,000 Lb 0.55%

Corriente Panantza

Cu 14,541,691,000 Lb 0.62%IAMGOLD Quimsacocha

INV ** Au 3,517,000 O z 3.2g/t

Ag 25,055,000 O z 22.3g/t

Cu 154,544,000 Lb 0.20%

IMC Rio Blanco

Au 635,000 O z 8.7g/t

Ag 4,488,000 O z 61.5g/t

Resource

***

DISTANCE FROM SURROUNDING

MAJOR DISCOVERIES

7

MASSIVE CLAIM-GROUP (572.87 SQ KM)

WITH FAVOURABLE GEOLOGY

Fortuna 1-12 concessions form

contiguous claim-group

Multiple mineralization styles:

High-sulfidation epithermal veins

Low-sulfidation epithermal veins

Porphyry-style stockwork

Placer and paleo-placer

Skarn replacements

Breccia pipes

Highly anomalous gold values

identified in:

Soil samples

Rock samples

Stream-sediment samples

8

FIELD EXAMPLES OF

MINERALIZED STRUCTURES

9

Quartz feldspar porphyry with quartz stockwork

Mineralized breccia

Multiple caldera-like structures

TARGET AREAS IDENTIFIED FROM THE

INTERPRETATION OF LANDSAT

ETM+ IMAGERY

10

42 target areas have been identified in the Fortuna

Concessions on the basis of the interpretation and

Landsat alteration processing.

The exploration target criteria include the presence of

major faults, major fault intersections, converging and

branching faults, releasing bends, splays along major

faults, domal / circular and linear resistant features and

alteration anomalies.

Fortuna 1 and 3 appear particularly prospective as they

contain clusters of domal / circular features within a

zone of NNE-SSW trending major faults which is parallel

to the principal mineralized trend in the district.

A number of small domal / circular features are located

along, or close to NNE-SSW trending major faults or on

their intersections with NW/WNW trending faults

suggesting that these structures may have had an

important control on the emplacement of small

intrusions within the Fortuna Concessions.

.

A structural interpretation was undertaken at up to

1:25,000 scale for a Landsat ETM+ extract centered on the

Fortuna Concessions with the aim of defining the structural

framework of the district and the generation of exploration

targets.

Culebrillas y El Buitre (CEB) – massive copper gold porphyry system fully exposed without overburden, typical

vertical epithermal mineralization common to the Andes, which is 6km long, 1km wide and 1.4km exposed above

the surface of the caldera (and it does not simply end at the surface of the caldera).

Significant anomalies: background is 2 ppb; anomalies are 20 ppb to 400 ppb (the EL Mozo discovery located just

outside (10km) from the South East of the Andi 4 concession was made on anomalies of 100 ppb).

Hydrothermal breccia outcrop on S. part and breccia on N. wall of Callebrittas typical of porphyry structure.

Isolated veins examined by Makrominas SA, prior holder of the concessions contained 44 g/t gold & 9.7 g/t silver.

Stream sediment sample taken from the middle of Fortuna 6 contained 1.898 g/t gold.

Silver values around Laguna Tulipas of 2.6 g/ton.

Copper values on Callabrittas porphyry structure of Fortuna 3 of 45 to 175 g/ton.

Molybdenum values around Laguna Tulipas of 13 to 107 g/ton.

Fine gold found in eight pan concentrate samples in streams in S-SW corner of Fortuna 3 concession.

Buitre Porphyry

Culebrillas Porphyry

TOP DRILLING TARGET

CULEBRILLAS & EL BUITRE AREA

11Fortuna 3 - Culebrillas y El Buitre porphyry

GEOLOGIC MACRO SCHEMATIC

12

Geologic schematics of the structures relating to the porphyry on Cullebrillas Hill

EXTENSIVE GOLD

MINERALIZATION INDICATORS

13

View of caldera on Fortuna 3

Topographic Map of caldera on Fortuna 3

FIELD WORK IN THE CALDERA

ON FORTUNA 3

14

Helicopter borne reconnaissance

at Laguna Tulipas

At edge of caldera on Fortuna 3

overlooking Laguna Tulipas, with the

Cellebrillas porphyry in foreground &

Buitre porphyry in background

Horse mounted approach to

Laguna Tulipas in Fortuna 3

through the Paramo grasslands

Massive Buitre copper

gold porphyry up close

Temporary Field camp at

Cullebrillas above Laguna

Tulipas

Horse mounted field work on the

Cashitaco ridge on the rim of

the caldera on Fortuna 3

Field exploration team on the Buitre

ridge, being of glacial origin with

hydrothermal mineralization

associated with the porphyry

Field team & geologists hiking

and taking samples from the

breccia body at Loma Cashitaco

in the caldera on Fortuna 3

FIELD WORK IN THE CALDERA

ON FORTUNA 3

15

The North side of the Cullebrillas

hill bearing the massive copper

gold porphyry

Geologist taking samples of the

mineralized breccia

Outcrop of mineralized breccia

structures on the Cashitaco

ridge on the rim of the caldera

on Fortuna 3

Close up of the mineralized

breccia from the outcrops

Close up of the breccia on the

North side of Callebrillas with

phyllic altered quartz feldspar

porphyry outcrops bearing

quartz stockwork

Monterra field exploration

geologists taking samples from

the streams around Laguna

Tulipas in the caldera on

Fortuna 3

Samples taken from the field

prepared for shipment to the

assay labs

Artesenal workers digging for

gold nuggets in the tributaries

on Fortuna 6

FIELD WORK ON FORTUNA 4 & 5

16

Small excavator mining and

stockpiling the feed for the Z

Model washing plant with Fortuna

4 in the background

Camp of artisanal miners on the

eastern side of the Shinkata river

on the edge of Fortuna 5

The Fortuna 4 Concession Hut of artisanal miners with

artisanal miner in foreground

on Fortuna 4

Monterra’s former Exploration

Manager Byron Granda with

artisanal miners with washing

plant in the background

Washing plant placed by

artisanal miners at tributary of

the Shinkata river

Black sand and gold panned by

artisanal miners at the Shinkata

river

Gold nuggets extracted by

artisanal miners from the

Shinkata river

BOARD OF DIRECTORS

Mark Tory, CA, MBA – Director, President & CEOAustralian citizen. An accounting and finance professional with over 20 years of experience in the mining industry. Former

Managing Director and CFO of Crescent Gold. VP Finance at Anglo American Exploration & Controller of Homestake Gold of

Australia. Currently CFO of Northern Minerals. Graduated Bachelor of Business with major in accounting & minor in information

systems from Edith Cowan University and subsequently with an MBA with a major in accounting also from the University of WA.

Boris Goldstein – Director, Seed Investor, Founder & Seed InvestorU.S. citizen. One of the founders of Software House High Tech, which has over 40 offices in 17 countries, was Chairman of E-

Trade Eurasia, CEO of Trans Global Ventures and CEO of Nefco Petroleum. Dr. Goldstein is currently manager of Pacific

Venture Fund, Co-Chairman CBSF Capital Management, and CBSF International Fund. Graduated with a BA, MBA and PhD

from the Latvian Technical University.

Jeff Moore - DirectorAustralian Citizen. Former Managing Director of Savanna Mineral Resources NL, Abra Mining Ltd., Allied Gold Ltd and New

World Alloys. Former Exploration Director of Mount Burgess Mining NL, Terrace Gold NL a subsidiary of AKD Ltd. and Capricorn

Resources Australia NL. Member of Australian Institute of Mining and Metallurgy and Geological Society of Australia. Currently

Managing Director of Riedel Resources Ltd. Graduated Bachelor of Applied Sciences with a major in geology with distinction

from Western Australian Institute of Technology (Curtin University).

Nicolas Febres–Cordero Gallardo – Director, Founder & Seed InvestorEcuadorian citizen. Over 25 years of executive business experience in Ecuador. Currently CEO of Ecuasal, S.A., the largest salt

producer & distributer in the Ecuador. Also CEO of Papercorp S.A., that owns a producing gold mine in Ecuador. Nico is from an

established Ecuadorian business family Graduated B.A. Franklin Marshall University, Pennsylvania, USA, 1986 and

subsequently graduated MBA equivalent from Institute of Entrepreneurial Development (IDE), Ecuador 1996.

17

A STRONG BOARD OF DIRECTORS

The Fortuna project has the potential to be South America’s next

large gold and copper discovery

Geological interpretations and historical sampling suggest the

presence of a massive plumbing system underneath the project

concessions

Anomalous gold signatures have been identified over an enormous

area throughout the land package

Monterra is on a clear path towards public listing on an extablished

stock exchange in the medium term

An experienced management team and a resourceful board of

directors is at the helm

Seeking potential major gold companies as potential partners in the

project

A premier gold exploration play in South America that presents

investors with an opportunity to realize very significant gains in the

short, intermediate and long term

18

IN SUMMARY…

Concessions

Fortuna 1

Fortuna 2

Fortuna 3

Fortuna 4

Fortuna 5

Fortuna 6

CURRENT CORPORATE STRUCTURE

19

Monterra S.A.Incorporated in Panama

Terrasources

Minerals S.A.Incorporated in Ecuador

Goldmindex

S.A.Incorporated in Ecuador

(Current Title Holder)

Nabonminas

S.A.Incorporated in Ecuador

Concessions

Fortuna 7

Fortuna 8

Fortuna 9

Fortuna 10

Fortuna 11

Fortuna 12

100%

20

Concession Name

Number Code

Hectares ProvinceRecordDate

Concessionary

FORTUNA 1 4,980MoronoSantiago

GoldmindexS.A.

FORTUNA 2 4,000MoronoSantiago

GoldmindexS.A.

FORTUNA 3 4,799Zamora

ChinchipeGoldmindex

S.A.


ChinchipeGoldmindex

S.A.


ChinchipeGoldmindex

S.A.


ChinchipaGoldmindex

S.A.


ChinchipaGoldmindex

S.A.

FORTUNA 8 4,250 AzuayGoldmindex

S.A.


S.A.


S.A.


ChinchipeGoldmindex

S.A.


ChinchipeGoldmindex

S.A.

TOTAL 54,985

CONCESSIONS LIST

WHY ECUADOR?

GOLD ABUNDANCE

Geologically part of the South American Cordillera, one of the great gold-provinces of the world.

Rich natural resources with the best endowed country in the Cordillera on gold per unit area

basis.

Less than 5% of the country explored.*

Strong history of mining dating back to pre-Incas era.

Country

Total Gold in

Resource /

Reserve (M Oz)

Total Size

(X1000 Sq

Km) Endowment (M Oz Au Per 1000 Sq Km) Rank

Ecuador 59.3 256 0.23 1

Chile 143.0 750 0.19 2

Peru 87.3 1128 0.08 3

Colombia 79.3 1141 0.07 4

Source: www.intierra.com of reported mineral resources August 2008.

*Source: Ministry of Non-Renewable Natural Resources, presentation PDAC March, 2012.

21

http://www.intierra.com/

Why Mining Investment in Ecuador

22

The following slides are from a presentation by the Minister of Mines at the

IMARC conference in 2016.

These demonstrate clearly the opening up of Ecuador particularly for

mining and exploration companies.

In a tough year for the mining world, Ecuador’s

mining sector has continued to build momentum

New mining

concessions

available

Opportunities

to invest

Fiscal

regime

improving

Valuable

Operational

Advantages

Gov’t

capacity

building

Projects

advancing

2

3

Source: Minister of Mines

presentation IMARC 2016

The government is increasing its capabilities

to support the growing sector’s needs

Government capacity

2017

2014

Financial terms agreed for FdN

Mirador started construction

Ministry of Mining formed

Lundin purchased FdN

Codelco signed agreement for Llurimagua

Rio Blanco started construction

Loma Larga pre-feasibility study updated at larger scale

FdN starts construction

Additional fiscal incentives passed(Public-Private Partnerships)

Terms clarified for existing taxes

New geoportal created

First set of fiscal incentives passed

Launch of new concession request process

GOVERNMENT CAPACITY

TODAY

Granting of new concessions

Phase change FdN



Our laws and government programs provide strong

support in building community support for mining

60%

50%

of royalties

required by law to go to social

investment projects and regional

development

of social

investment projects aimed at indigenous

groups or territorial constituencies, when

appropriate

$837 millionZamora : $96 million, Azuay: $30 million

Morona Santiago: $15 million y El Oro: $41

million.

Water & sewageHealth

Education

Millenium Community

Culture & sports

Safety

Electricity & telecom

Highways & tourism

Improving communities affected by strategic industries

GOVERNMENT CAPACITY



VAT refunds starting in 2018• VAT will be refundable for mineral exportations

• Increases IRR of projects up to 1.5%

Foreign investment in small mining• New opportunities for investors interested in Ecuador

• Some small miners have potential to operate at larger

scale on currently owned and/or new concessions

Limited applicability of capital gains tax• Previously, all share transaction were taxed with no limit

on share value

• With the new change, only share transactions for more

than 20% of the company value will be taxed

Additional fiscal and legal reforms were approved in

2015 to further enhance investment conditions

Fiscal stability contracts

Accelerated depreciation,

investor choice of 5 - 10 years

Use of NPV for Sovereign

Adjustment formula, to include

companies’ cost of capital

Currency exportation tax (ISD)

exemption for mining sector

Standardized extraordinary

gains tax

2014 incentives Incentives approved in Q4 2015

6

7

8

1

2

3

4

5

FISCAL REGIME



The advantages of mining in Ecuador remain strong

Infrastructure

~10,000 km of improved highways

5 main ports

15 airports (5 new, 10 remodeled)

Energy and Water

90% clean energy– 9 hydroelectric projects

– Over 8,300 MW of installed capacity by

end of year

Abundant access to water

Work Force

Regionally competitive work force

MOUs signed for partnerships in

human resource development with

governments of Australia, Peru, and

Chile

Mineral grades

Several of the highest-grade projects

in the region, both for gold and copper

< 10% of territory explored

OPERATIONAL ADVANTAGES



Ecuador manifests its commitment to become the

new mining frontier of Latin America by…

AdvantagesOpportunity



Contact:

MARK TORYChief Executive Officer

Monterra S.A.

+ 61 488 188 638 Mobile

[email protected]

PETER NESVEDA

International Investor Relations

Monterra S.A.

+ 61 412 357 375 Mobile

[email protected]

SANTIAGO YEPEZ

Country Manager

Monterra S.A.

+ 593 9958 87204 Mobile

[email protected]

Orellana E11-75 y

Av. Coruña Edificio Albra

Oficina 505

Quito, Ecuador

mailto:[email protected]



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