ibc corporate presentation

Specialty Alloys & Engineered Materials A Platform For Growth

Corporate Presentation

October / November 2014

TSX-V: IB

OTCQX: IAALF

Some statements contained in this presentation or in documents referred to in it are or maybe forward-looking statements. Actual results may differ from those pressed in such statements, depending on a variety of factors.

Any forward-looking information contained in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary.

Past performance of the Company cannot be relied on as a guide to future performance. This presentation does not constitute, or form part of or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in IBC Advanced Alloys Corp., or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis or be relied on in any connection with or act as a inducement to enter into any contract or commitment therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this document or its contents otherwise in connection therewith.

Legal Disclaimer

2 TSX-V: IB OTCQX: IAALF

IBC Advanced Alloys Corp.

Contents


IBC - Business

Markets / Products

Future Growth

IBC - Business

• Proprietary manufacturing process;

• Sustainable competitive advantages;

• Existing $17M year business;

• Historical gross margins up to 25%;

• Value add high margin growth opportunities.

IBC manufactures specialty alloys and advanced materials for the aerospace, automotive and other high

performance industries.

• 2014 new products and alloys;

• 100% revenue growth with minimal capex.

• Proprietary casting technology;

• Substitution opportunity for high cost machined parts.


Targeting profitability calendar year end 2014

IBC-Business

Beryllium (Be): • Rare metal with unique characteristics.

• Excellent thermal conductivity; • Weight by weight, stiffer than steel; • Second lightest metal (after lithium); • High melting point with excellent thermal conductivity.

• Use as pure metal or an alloy with copper or aluminum to: • Increase hardness; • Dramatically reduce weight; • Improve thermal conductivity.


What is Beryllium?

IBC - Business

1. Manufacturing 2. R&D

Copper Alloys

Products:

• Beryllium Copper

• Chrome Copper

• Aluminum Bronze

• Specialty Copper Alloys

Products:

• Beralcast® - castable Be/Al

• ABX™ - castable Al/Be alloy for commercial applications.

• Casting technology

• Engineered Materials: New alloys in development.

• Nuclear fuels*


Engineered Materials

*Purdue University, Texas A&M University,

Massachusetts Institute of Technology

Automotive Oil & Gas Electronics High End Plastics

Copper Alloys – Markets

Injection molds for wide range of parts

Large Rings

Down Hole Tubing

Directional Drilling

Electrical Connectors

Industrial Motors

Robotic Equipment

High performance Injection molds

liners


IBC - Business

Aerospace

& UAV

Defense Manufacturing Specialized Replacement

Materials

Engineered Materials – Markets

Cast Components and sub-structural

parts

Weapons

Infrared Systems

Optical Targeting

High Performance Core Components Replacement for

aluminum, titanium & advanced composites


IBC - Business

IBC Plant Locations


FACILITY LOCATION AREA (m2)

AREA (sq. feet)

LEASED/ OWNED

Copper Alloys

Franklin, IN

4,800 48,800 Owned

Copper Alloys

Royersford, PA

1,500 16,000 Leased

Copper Alloys

New Madrid, MO

2,500 26,500 Owned

Engineered Materials

Wilmington, MA

5,800 63,000 Leased

IBC - Business

Current Facilities & Revenues


Current • 3 facilities; • Operating at 70% with single shift; • Currently delivers approximately 85% of

overall revenues; • Historical gross margins of up to 25%; • $30M capacity as configured. • Diversified global customer base; • Sell direct and via distributors; • No customer > 10% of sales.

Copper Alloys Engineered Materials

Current • New advanced vacuum casting facility; • Operating at 20% with single furnace; • High margin business; • High barriers to entry; • $5M break even; • ~$10M capacity as configured; • Capacity limited by furnace not plant; • Addition of up to 3 furnaces without

plant expansion; • Received AS9100C certification essential

for aerospace.

IBC - Business

Objectives For Facilities & Revenues


Target • Focus on constant incremental margin

and yield improvements; • Develop “value add” semi finished

product mix (example – CuBe rings); • Expand machining and finishing capacity; • Expand international distributor network; • Grow cast input billets business; • Introduce new alloys; • Add Indiana manufacturing capacity of

20,000 – 40,000 ft2


Target • Add second furnace for growth; • Additional growth capacity exists; • Add de-waxing and machining capacity; • Existing 63,000 ft2 configurable for 3-5x

capacity growth; • L/T aerospace & UAV (DRONE) contracts

• R&D agreements • Development contracts • Purchase orders;

• Increase profile in automotive and high tech industries.

IBC - Business

Growth Drivers


• New products and alloys; • Machining capacity to offer wider range

of semi finished products; • Expansion of distribution channels; • Focus on business development; • Plant and equipment upgrades.

• Proprietary process for delivering proven alloy at lower cost point;

• New markets, applications and alloys; • Acquisitions and joint ventures; • Materials performance awareness and

substitution opportunities.


• Nuclear fuels. • Alloys and composite development.

Research & Development

IBC - Business

Lighter • 22% less weight than aluminum.

Faster • Weeks vs. months for machined parts.

High Volume • Precision cast to simple and complex geometries.

• Cast to near net shape reducing expensive machining.

Low CTE • Critical in certain applications with wide operating

temperature ranges.

The Beralcast® Advantage

0

50

100

150

200

250

300

350

400

Steel Magnesium Titanium Aluminum Beralcast®

Specific Stiffness Comparison (Modulus/Density)

Cheaper • Up to 50 - 80% cheaper than machined

competitive material; • Significantly improved lead times over beryllium

aluminum machined parts.

Stiffer • 300% stiffer than aluminum.

Beralcast® is an excellent material when light weight and high modulus

applications are required.


Markets/Products

Cast Performance Alloys


IBC Engineered Materials Beralcast castings offer significant advantages over machined parts.

Faster delivery Suited to high

volume applications Cost control /

competitive pricing

Markets/Products

Nuclear fuels research with Purdue University, Texas A&M University and MIT.

Nuclear fuel development MOU with GNF (GE) Provisional patents filed

Expected Benefits:

• Increased MW-days per ton. • Utility cost savings.

• Extended fuel cycle. • Reduce waste.

• Lower core temperature and lower temperature gradient across the fuel. • Enhance reactor safety.

Nuclear fuels market currently:

$25 billion

Nuclear fuels market projected for 2020:

$35 billion


Nuclear Fuels Opportunity

The Opportunity

• Existing $17M business; • Copper Alloys division is cash flow

positive; • Historical gross margins of up to

25%; • Introducing high margin semi-

finished products; • Targeting continued growth.

• Beryllium aluminum proven and widely used material;

• IBC’s casting process provides opportunity to substitute machined parts with castings;

• Management estimates for castings are $200M annually;

• Enormous market potential.



Future Growth

Corporate Information October 15, 2014

Inception 2007

Head Office Vancouver

F2012 Revenues $25.5M



TSX-V:IB

100 Day Average Daily Vol. 163.5K

100 Day High/Low Close $0.22 - $0.12

OTCQX:IAALF

100 Day Average Daily Vol. 53.0K

100 Day High/Low Close $0.207 - $0.11


Corporate Summary

Options 5,903,333

Exercise Price C$ Amount

0.14 2,005,000

0.15 3,755,000

0.90 16,667

1.02 58,334

1.08 51,666

1.56 33,333

Share Structure To October 15, 2014

Shares Outstanding 80.6M

Fully Diluted* 110.7M

Market Cap $9.7M


Corporate Summary

Warrants

Expiry Date Financing Warrants Broker Warrants Price C$

28-Feb-15 0 120,699 0.12

28-Feb-15 14,590,097 171,459 0.18

13-May-15 0 40,383 0.12

13-May-15 576,900 0 0.18

13-Mar-16 7,500,000 1,027,289 0.24

Total 22,666,997 1,359,830

Management & Directors

Anthony Dutton Director, President & CEO Finance & Strategic Advisory Background

Simon J. Anderson Chief Financial Officer Chartered Accountant with public and private company experience as director / officer

Major General David R. Heinz (Ret) Director Retired US Marine Corp officer. Former PEO for F-35 JSF Program

Dal S. Brynelsen Director President and CEO of Vangold Resources Ltd., Corporate Finance

Jim Malone Vice President Nuclear Fuels, Chair, IBC Nuclear Fuels Advisory Board Former VP Nuclear Fuels for Exelon Corp.

Mike Jarvis Director Former President of Franklin Power Products and Delco Remy’s Powertrain Division

Alastair Neill Director Former VP Sales & GM of AMR (Neo-Material Technologies)

Ray White President of IBC Engineered Materials

Mark Wolma President of IBC Nonferrous

Douglas Veitch Vice President of Business Development

Rajeev Jain Vice President of Sales

Chris Huskamp Executive VP Business & Technical Development – IBC Engineered Materials


Corporate Summary

Specialty Alloys & Engineered Materials A Platform For Growth

Contact Investor Relations: IBC Advanced Alloys Ian Tootill Director of Corporate Communications [email protected] (604) 685-6263 ext. 110

TSX-V: IB

OTCQX: IAALF

Thank You

The Howard Group Dave Burwell / Brad Dryer Senior Associate [email protected] (403) 221-0915