october 2019 tsxv:mta | otcqb:mtaff | germany:x9cp | www ... · (fms) plenty st. barbara halfiax,...

October 2019 TSXV:MTA | OTCQB:MTAFF | Germany:X9CP | www.metallaroyalty.com

Metalla Royalty & Streaming | October 2019

FORWARD LOOKING STATEMENTS

This presentation contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking

terminology such as "may", "will", "should", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual actions, events or results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which Metalla will purchase gold and other metals or from which it will receive royalty payments and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine construction and operations, actual results of mining and

current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; problems inherent to the marketability of gold and other metals; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; industry conditions, including fluctuations in the price of the primary commodities mined at suchoperations, fluctuations in foreign exchange rates and fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects Metalla; stock market volatility; regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties.

Metalla undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking

information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

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Greatest Exposure to Silver of Any Publicly Listed Royalty Company

THE KEY POINTS

3

Experienced Management Team with Proven, Relevant and Global Track Record

ü Most Active Royalty Company as Measured by Material Acquisitions

Positive Cash Flow Delivers Dividends and Increasing Growth

Focused on Acquiring Royalties on Projects Operated by Large Producers

Trades at a Significant Discount to Peers Despite Recent Outperformance

ü

ü

ü

ü

ü

JUNIOR ROYALTY COMPANY DELIVERING GROWTH


THE BUSINESS STRATEGYSECONDARY MARKET OF ROYALTIES ON HIGH-QUALITY OPERATIONS IS THE

KEY TO OUR SUCCESS

4

SHARE CONSIDERATION

ROYALTY OWNER

ROYALTY

§ Partner with strong counter-parties with operational experience and strong balance sheets

§ Reduced cost in financing acquisitions vs. equity

§ Tighter capital structure when royalty owners maintain a shareholding in Metalla

§ High quality royalties give leverage to resource upgrades at no cost

§ Ability to progressively build a project pipeline with sustainable cash flow

§ Monetize royalty asset by sale to Metalla for cash and shares

§ Maintain meaningful exposure to royalty through stake in Metalla equity

§ Diversify risk through participation in Metalla’s portfolio

§ Benefit through Metalla's dividend distribution policy

§ Share in success of Metalla's business strategy

§ Benefit from significant increase in liquidity and price discovery

BENEFITS FOR METALLA BENEFITS FOR 3RD PARTY


$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

Sep

16

Oct

16

Nov

16

Dec

16

Jan

17

Feb

17

Mar

17

Apr 1

7

May

17

Jun

17

Jul 1

7

Aug

17

Sep

17

Oct

17

Nov

17

Dec

17

Jan

18

Feb

18

Mar

18

Apr 1

8

May

18

Jun

18

Jul 1

8

Aug

18

Sep

18

Oct

18

Nov

18

Dec

18

Jan

19

Feb

19

Mar

19

Apr 1

9

May

19

Jun

19

Jul 1

9

Aug

19

Sep

19

Oct

19

THE TRACK RECORD

5

45Royalties/Streams

Acquired

$70MCapital Deployed

15Transactions

Acquires Royalty

Portfolio from Alamos Gold; Announces

$12M Convertible Debenture

from Beedie Capital

Acquires royalty on St

Barbara Fifteen

Mile Stream

Brokered Offering Upsized to $6.8M due to Strong

Demand

Acquires royalty on Pan

American’s COSE

Acquires royalty

on Agnico Eagle’s Santa

Gertrudis

Acquires Valgold

for royalty

on Osisko’s Garrison

Listing as a Tier-1

Issuer on the TSXVAcquires

Royalty and Streaming Portfolio

from Coeur Mining

Consolidates Hoyle Pond

Extension Royalty

Announces New Luika

Silver Stream and $4M Financing

Changes Name to Metalla; Appoints

Brett Heath as President

Acquires Timmins Royalties and Closes

Oversubscribed Financing for $2.3M

Consolidates remaining royalty on

Fifteen Mile Stream for

$2M


Compound Annual Growth Rate of +65% since September 2016 (inception)

THE OUTPERFORMANCE

6

METALLA HAS CONSISTENTLY OUTPERFORMED ITS PEERS SINCE INCEPTION

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

Jan-

18

Feb-

18

Mar

-18

Apr-1

8

May

-18

Jun-

18

Jul-1

8

Aug-

18

Sep-

18

Oct

-18

Nov

-18

Dec

-18

Jan-

19

Feb-

19

Mar

-19

Apr-1

9

May

-19

Jun-

19

Jul-1

9

Aug-

19

Sep-

19

Oct

-19

Metalla Maverix Franco-Nevada Sandstorm Osisko Wheaton Precious Royal Gold


THE CAPITAL STRUCTURE

7

Capital Structure Share OwnershipShare Ownership

As of October 9, 2019

Basic Shares Outstanding (M) 134

Fully Diluted Shares Outstanding (M) 151

Dividend Yield 0.8%

Cash (M) $7.0

Convertible Debt (M) $7.0

Convertible Debt Facility Available (M) $5.0

Basic Market Capitalization (M)(Share Price @ August 13: $1.26) $200

Basic Enterprise Value (M) $200

Coeur Mining 15.6%

Alamos Gold 6.1%

Euro Pacific Capital (Gold Fund) 4.4%

Brett Heath (CEO) 3.2%

Adrian Day Asset Management 3.0%

GoGold Resources 2.8%

Original FMS Royalty Owner 2.0%

US Global Funds 1.5%

Quinsam Capital (Roger Dent) 1.1%

Exploration Capital Partners (Rick Rule) 1.0%

Doug Casey 1.0%

E.B Tucker (Director) 0.9%


STRONG OPERATORS & LOYAL SHAREHOLDERS

8

HIGH-QUALITY OPERATORS AND LONG-TERM, SUPPORTIVE SHAREHOLDERS

Royalty Operators Key Shareholders

O3 Mining Inc.


EXPOSURE TO TOP MINING JURISDICTIONS

9

2Production Assets

15Development Assets

28Exploration Assets

Australia

Tanzania

Canada

MexicoArgentina

Ecuador

Peru

Chile


Endeavor Mine

KEY ASSETS

10

NSW Australia

Metal Exposure: Silver

100% Silver Stream

Current focus on discovery at Deep Zinc Lode

Steady production since 1983, recent discovery of deep lode indicates further resource expansion potential

Santa GertrudisSonora, Mexico

Metal Exposure: Gold

2% NSR

Resources: 962 Koz inferred

2019 exploration budget of US$10.2M for ~40,500 m; evaluating scenario using heap leach and small mill for ~ 100 koz Au/year


KEY ASSETS

11

Joaquin MineSanta Cruz, Argentina

Metal Exposure: Silver, Gold

2% NSR

Production Guidance: ~4 Moz Ag, 2 Koz Au

Mine to be commissioned in H2 2019 with the further guidance upon achieving commercial production. Multiple veins left out

of the mine plan totalling 40Moz Ag-Eq

Fifteen Mile StreamNova Scotia, Canada


1% & 3% NSR

Resources: 2P – 576 Koz Au, M,I&I – 761 Koz Au

Estimated production of ~95 Koz Au in 2022; latest mine plan completed by Atlantic Gold expanded production at Fifteen

Mile Stream and extended its mine life


COSE Mine

KEY ASSETS

12

Santa Cruz, Argentina

Metal Exposure: Silver, Gold

1.5% NSR

Production Guidance: 1.34 Moz Ag, 28 Koz Au

Development and ramp up ongoing, commercial production expected H2 2019. High-grade satellite deposit that will be

trucked to Manantial Espejo similar to Joaquin

Garrison MineKirkland Lake, Ontario


2% NSR

Resources: M,I&I – 2 Moz Au

Osisko recently announced that Garrison will be spun out into a new company called O3 Mining which will provide more

effective focus on Garrison as a key asset

O3 Mining Inc.


KEY ASSETS

13

Wasamac MineRouyn-Noranda, Quebec


1.5% NSR

Resources: 2P – 1.8 Moz Au, MI&I – 2.5 Moz Au

Proposed mine life of 11 years producing an average of 142 Koz Au/year at AISC of US$620/oz. Start date of 2022/2023

El Realito Mine Sonora, Mexico

Metal Exposure: Gold, Silver

2% NSR

Resources: 2P – 84 Koz Au, M,I&I – 353 Koz Au

Satellite deposit located adjacent to operating La India Mine; exploration program recently expanded by 5,000m to 17,000m

as a result of ongoing success at El Realito


LEADERSHIP

14

Lawrence RoulstonNon – Executive ChairmanMining professional and geologist

with over 35 years of diverse hands-on experience.

Alexander MolyneuxNon-Executive Director

Metals and mining industry professional with 20+ years of executive experience. Holds several high level executive and

board positions.

EB TuckerNon-Executive Director

Financial analyst with 20 years experience in fund management

and news letters

Brett HeathPresident and CEO, Director

Founder of Metalla – Mr. Heath is a metals and mining industry professional with 8

years of dedicated royalty and streaming experience.

Bill TsangChief Financial Officer

Chartered Professional Accountant with more than 10 years of financial accounting

and auditing experience in the mineral exploration and mining industry.

Drew Clark, CFAVP Corporate Development

Metals and mining industry professional with 10+ years’ experience in research

and corporate development roles

Frank HanagarneTechnical Advisor

Metals and mining industry professional with 35+years

experience at Newmont Mining and Coeur Mining as COO.

James BeebyNon-Executive Director

Corporate lawyer with 20 years’ experience advising clients on

corporate finance and M&A matters with a focus in the mining industry.


INVEST FOR REVALUATIONMETALLA IS AT AN EARLY STAGE OF ITS GROWTH TRAJECTORY

15

Junior Royalty

Co.

Mid-Tier Royalty

Co.

P/N

AV

0.5x-1.5x

1.5x-2.0x

2.0x +

<$500M Market Cap.

<30 Koz AuEq

$0.5-3B Market Cap.

50-100 Koz AuEq

>$5B Market Cap

>300 Koz AuEq

MajorRoyalty Co.

Sector Average 1.7x


INDUSTRY LEADING GROWTH

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EXPANSIVE DEVELOPMENT PORTFOLIO WITH TOP OPERATORS

In Production

Endeavor Mine Joaquin Mine

COSE Mine

Fifteen Mile Stream

Hoyle Pond ExtensionLa Fortuna

Q4 2019 Mid – Long Term

30+ OTHER ROYALTIES PROVIDING FUTURE CASH FLOW AND OPTIONALITY

Near Term

West Timmins

WasamacSanta Gertrudis

El RealitoNew Luika Gold Mine

Garrison

O3 Mining Inc.


THE CASE FOR INVESTMENT

17

Metalla currently trades at a significant discount to itspeers(1) despite a higher growth rate and moregenerous dividend distribution policy

Portfolio includes stable operations and developmentprojects backed by strong counterparties

Experienced management team with a track recordof value accretive transactions delivered with a lowburn rate

focus on third- party royalties on assets operated bymajors; acquisition for shares enables holders tomonetize the intrinsic value of their royalties.

STRONG VALUE PROPOSITION

ORGANIC GROWTH

DISCIPLINED MANAGEMENT

UNIQUE BUSINESS PLAN / APPROACH

(1) Using a price/NAV basis

TSXV:MTA

MTA I MTAFF I X9CP

APPENDIX

www.metallaroyalty.com I [email protected]: +1 (604) 696-0741

Suite 501 - 543 Granville Street, Vancouver, BC V6C 1X8 Canada


PRODUCTION & DEVELOPMENT PORTFOLIO

Property Operator Location Stage Metal Terms

Endeavor Mine CBH Resources NSW Australia Production Zn, Pb, Ag Stream on 100% of Ag

Joaquin Mine Pan American Silver Santa Cruz, Argentina Development Ag, Au 2.0% NSR Royalty

Santa Gertrudis Agnico Eagle Sonora, Mexico Development Au 2.0% NSR Royalty

Fifteen Mile Stream St Barbara Halfiax, Nova Scotia Development Au 1.0% NSR Royalty

(FMS) Plenty St. Barbara Halfiax, Nova Scotia Development Au 3.0% NSR Royalty

COSE Mine Pan American Silver Santa Cruz, Argentina Development Ag, Au 1.5% NSR Royalty

Garrsion Mine Osisko Mining Kirkland Lake, Ontario Development Au 2.0% NSR Royalty

El Realito Agnico Eage Sonora, Mexico Development Ag, Au 2.0% NSR

Hoyle Pond Ext. Newmont Goldcorp Timmins, Ontario Development Au 2.0% NSR, subject to 500 Koz exemption

La Fortuna Minera Alamos Durango, Mexico Development Au, Ag, Cu 1.0% NSR Option

New Luika Shanta Gold Lupa Goldfields, Tanzania Production Au Stream on 15% of Ag

Wasamac Monarques Gold Val d'Or, Quebec Development Au 1.5% NSR

Timmins West Ext. Pan American Silver Timmins, Ontario Development Au 1.5% NSR (subject to a 0.75% buyback)

Beaufor Mine Monarques Gold Val d'Or, Quebec Development Au 1.0% NSR

San Luis SSR Mining Peru Development Ag, Au 1.0% NSR

Akasaba West Agnico Eagle Val d'Or, Quebec Development Au, Cu 2.0% NSR, payable after 210 Koz Au

TVZ Zone Newmont Goldcorp Timmins, Ontario Development Au 2.0% NSR

Dufferin East Resource Capital Halfiax, Nova Scotia Development Au 1.0% NSR

Zaruma Core Gold Ecuador Development Au 1.5% NSR

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EXPLORATION PORTFOLIO

Property Operator Location Stage Metal TermsKirkland-Hudson Kirkland Lake Gold Kirkland Lake, Ontario Exploration Au 2.0% NSR

Orion Minera Frisco Nayarit, Mexico Exploration Au, Ag 2.75% NSRBig Island Copper Reef Mining Flin Flon, Manitoba Exploration Au 2.0% NSR

Biricu Guerrero Venturs Guerrero, Mexico Exploration Au, Ag 2.0% NSR + $10/oz AgBoulevard Independence Gold Yukon Exploration Au 1.0% NSR

Camflo Northwest Monarques Gold Val d'Or, Quebec Exploration Au 1.0% NSREdwards Mine Waterton Wawa, Ontario Exploration Au 1.25% NSR

Pucarana Buenaventura Peru Exploration Au, Ag 1.8% NSR OptionCapricho Pucara Peru Exploration Au, Ag 1.0% NSRLourdes Pucara Peru Exploration Au, Ag 1.0% NSR

Santo Tomas Pucara Peru Exploration Au 1.0% NSRGuadalupe/Pararin Pucara Peru Exploration Au 1.0% NSR

DNA Detour Gold Cochrane, Canada Exploration Au 2.0% NSRPuchildiza Regulus Resources Chile Exploration Au 1.5% NSR

DeSantis Mine Canadian Gold Miner Timmins, Ontario Exploration Au 1.5% NSR

Bint Property Glencore Timmins, Ontario Exploration Au 2.0% NSRColbert/Anglo Goldcorp Timmins, Ontario Exploration Au 2.0% NSR

Montclerg IEP Timmins, Ontario Exploration Au 1.0% NSRPelangio Poirier Pelangio Exp. Timmins, Ontario Exploration Au 1.0% NSR

Beaudoin Explor Resources Timmins, Ontario Exploration Au, Ag 0.4% NSR

Sirola Grenfell Golden Peak Resources Kirkland Lake, Ontario Exploration Au 0.25% NSR

Mirado Mine Orefinders Kirkland Lake, Ontario Exploration Au 1.0% NSR + OptionSolomon's Pillar Sage Gold Greenstone, Ontario Exploration Au 1.0% NSR

Los Patos Private Venezuela Exploration Au 1.5% NSRGoodfish Kirana Warrior Gold Kirkland Lake, Ontario Exploration Au 1.0% NSRTower Mountain Private Thunder Bay, Ontario Exploration Au 2% NSR

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october 2019 tsxv:mta | otcqb:mtaff | germany:x9cp | www ... · (fms) plenty st. barbara halfiax,...

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