DEVELOPING A GREEN, LOW COST, HIGH GRADE MAGNESIUM RESOURCE IN WESTERN CANADA - TSXV - WHY www.whyresources.com
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DEVELOPING A GREEN, LOW COST, HIGH GRADE
MAGNESIUM RESOURCE IN WESTERN CANADA
www.whyresources.com
TSXV - WHY
DISCLAIMER
Disclaimer and Forward Looking Statement No stock exchange, securities from the Company expectations include, among others, risks related to international
commission or other regulatory authority has approved or disapproved the information operations, the actual results of current exploration activities, conclusions of
contained herein. This presentation includes certain “forward-looking statements”. All economic evaluations and changes in project parameters as plans continue to be
statements other than statements of historical fact, included in this presentation, refined as well as future prices of magnesium, as well as those factors discussed in
including without limitation statements regarding potential mineralization and the section entitled “Risk Factors” in the Company’s Annual Information Form
reserves, exploration results, and future plans and objectives of the Company, are available on www.SEDAR.com. Although the Company has attempted to identify
forward-looking statements that involve various risks and uncertainties. The mineral important factors that could cause actual results to differ materially, there may be
resources estimates contained herein are only estimates and no assurance can be other factors that cause results not to be as anticipated, estimated or intended. There
given that any particular level of recovery of minerals will be realized or that an can be no assurance that such statements will prove to be accurate as actual results
identified resource will ever qualify as a commercially mineable or viable deposit and future events could differ materially from those anticipated in such statements.
which can be legally and economically exploited. In addition, the grade of Accordingly, readers should not place undue reliance on forward-looking statements.
mineralization ultimately mined may differ from the one indicated by drilling results
and the difference may be material. The estimated resources described herein should Cautionary Note: Not for distribution in United States.
not be interpreted as assurances of mine life or of the profitability of future operations.
All figures are in Canadian dollars unless otherwise indicated.
There can be no assurance that forward-looking statements will prove to be accurate
and actual results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ materially
www.WHYRESOURCES.com 2
COMPANY OVERVIEW
“OUR OBJECTIVE IS TO BRING INTO PRODUCTION ONE OF THE WORLD’S
LARGEST AND MOST ECONOMIC DEPOSITS OF HIGH GRADE, LOW COST MAGNESIUM.”
Frank Marasco, CEO, West High Yield Resources.
ABOUT MAGNESIUM AND ITS USES ABOUT THE RECORD RIDGE DEPOSIT
(http://www.whyresources.com/corporate/video/) (http://www.whyresources.com/corporate/video/)
Au
Midnight Property Gold Drilling Stage Rossland, BC
www.WHYRESOURCES.com 3
COMPANY OVERVIEW
PROJECTS
Mg
Record Ridge Magnesium Environmental Environmental Mine Plan Rossland, BC
South Assessment Baseline Permit
Study Application
West High Yield (WHY) is currently updating its Preliminary could support open pit mine and processing facility, with full
Economic Assessment (PEA), including a radically improved infrastructure in place including electricity, natural gas, roads and
production optimization that is expected to significantly lower water. (Other projects must invest significant capital to develop this
CAPEX and operating costs, and improve project economics. infrastructure)
(Due out Q4, 2018.)
The Company is now completing an environmental assessment,
Currently, Measured and Indicated Mineral Resources include 43 environmental baseline study and a mine permit application, for
million tonnes averaging 24.6% Mg, using a 21.9% cut-off, totalling submission Q3, 2018.
10.6 million tonnes contained Mg.
Ownership: 100% ownership of 8,380 contiguous hectares which
www.WHYRESOURCES.com 4
CORPORATE PROFILE
Venture Exchange 52 Week Basic Shares Fully Diluted: Market Insider
Listing: Low-High: Outstanding: Capitalization: Ownership:
TSXV: WHY $0.21 - $3.80 59.81 MM 65 MM $22,130,000 41%
* Fully Diluted
www.WHYRESOURCES.com 5
INVESTMENT HIGHTLIGHTS
MAGNESIUM IS A STRATEGIC METAL THAT IS VITAL TO OUR COLLECTIVE FUTURE
WHY WHY RECORD RIDGE? WHY ROSSLAND, BC? WHY OUR TEAM?
MAGNESIUM?
§ Over 10,000 metres drilling, 53 § A mining town with numerous other § The team is lead by an
• Magnesium is 33% lighter than holes, all mineralized mines nearby. entrepreneur with a track record
aluminum and 75% lighter than steel. of building and selling over 47
§ PEA Completed in 2013, currently § Safe mining jurisdiction. successful Canadian businesses
• It is the greenest metal. being updated with new process in the region.
§ World class mining infrastructure in
• Has many applications: Construction, § Amenable to low cost, very high place
aeronautics, automotive, technology, § Ability to finance ongoing
grade processing for ALL industry operations.
health, agriculture, batteries. applications
• Magnesium demand is currently
§ The deposit is ideally situated 10
growing at >6% per year.
km from Rossland, BC, with all
• Only one producer in North America, infrastructure in place (Val. $1.5 bn)
86% is produced in China.
§ 100% owned by WHY Resources
www.WHYRESOURCES.com 6
MEET THE BOARD OF DIRECTORS
Frank Marasco Jr. Dwayne Vinck, CA Patricia L. Nelson B.Com, Maria Marasco Ian F. T. Kennedy Rick Walker
Founder, President and CEO, Director, Chief Financial Director Director P. Eng / P. Geo, Director P. Geologist, P. Engineer
Director Officer
Ms Nelson was Controller for Sabre Mrs. Marasco is an Mr. Kennedy brings over 45 Rick has over 25 years of
Frank Marasco is also President and Mr. Vinck is an independent Petroleum’s, Petroterra Natural independent business woman years of experience in geological and structural mapping
Director of Big Mountain Development financial consultant and Chartered Resources and Manager of Financial who has provided services in venture capital and experience in the mineral
Corp. Ltd. Over the course of 45 Accountant with over 26 years of Control for Suncor. She is the Vice corporate restructuring investment banking activities. exploration industry. He has
years, Frank has built and sold 47 business experience. He is Board Chair and Director of the In Situ Oil
finance, acquisitions, and Mr. Kennedy is a consultant worked on a wide variety of
successful businesses, including Sands Alliance, Director of Altalink,
Chairman at Sulfur Recovery strategic planning. She is also who has served on the board deposit types which include gold,
hotels, motels, rental units, RV and and Director of Optiom Inc.. Ms
Engineering and volunteer Director responsible for overseeing of more than 35 public silver, base metals, rare to
mobile home parks, apartments, liquor Nelson served 15 years as an
and Treasurer of Kids Help Phone. management information companies from mining, oil strategic metals and diamonds.
stores, pubs, strip malls and elected Member of the Legislature of
nightclubs. At the age of 47, Frank Alberta. She was appointed and systems, human resource and gas, to high-tech. He has Rick has delivered significant
retired, later going into business in the served as Minister of Energy, strategies, and property also been Chairman of geological value throughout his
oil and mining sectors. He has since Minister of Economic Development management systems. Ryerson Polytechnic, Toronto. career for companies, ranging
purchased 81 oil and gas and Tourism, Minister of Government from junior to major resource
development sections in S.E. Services and finally was appointed companies, both nationally and
Saskatchewan in the Bakken, as well Minister of Finance. She served 12 internationally.
as fifteen gold mines in Rossland, years as a member of the Treasury
B.C. After briefly exploring for—and Board and the Agenda and Priorities
finding—gold on the project, Marasco Committee of the Government. An
and his team then discovered what is active member in the community, she
now a world-class, 2,000 acre, high supports charitable organizations
grade, low cost, magnesium deposit such as the Kidney Foundation, the
known as Record Ridge. Cancer Foundation, Heart and
Stroke and Juvenile Diabetes. 7
www.WHYRESOURCES.com
PROPERTY LOCATION THE RECORD RIDGE PROJECT EXTENDS OVER 7.5 SQUARE KILOMETERS AND IS LOCATED 10 KM SOUTHWEST OF ROSSLAND AND 4.5 KM NORTH OF THE US BORDER. www.WHYRESOURCES.com 8
PROPERTY LOCATION THE RECORD RIDGE PROJECT EXTENDS OVER 7.5 SQUARE KILOMETERS AND IS LOCATED 10 KM SOUTHWEST OF ROSSLAND AND 4.5 KM NORTH OF THE US BORDER. www.WHYRESOURCES.com 9
RECORD RIDGE INFRASTRUCTURE
RECORD RIDGE HAS EXCELLENT INFRASTRUCTURE
Proximity to Rossland (10 km) and Trail, BC (28 km) Skilled workforce readily accessible
Paved roads and highways cross through project Nearest port is Vancouver, BC
Grid power, water and natural gas Supporting industries in close proximity
Property is easily accessible for open pit mining and
accommodates tailings, waste disposal, and Nearby rail access with CP Rail (Trail, BC)
processing plants
4.5 km north of Canada-US Border Commercial Air Service (Trail, Castlegar, BC)
www.WHYRESOURCES.com 10MAGNESIUM AT RECORD RIDGE: A HAPPY ACCIDENT The Rossland, BC gold camp was first established in 1885 and experienced a It became quickly apparent that any potential gold values would be dwarfed by the productive gold history. property’s potential to host a world class magnesium deposit. When Frank Marasco purchased the first 500 acres of property in 2003, West High Over the course of a total of 77 holes, West High Yield has demonstrated a remarkable Yield drilled 28 exploratory holes in search of the famed high grade Rossland gold. high grade magnesium-rich deposit: While the project did hit some excellent gold values (such as 30.45 grams per tonne Measured and Indicated Mineral Resources of approximately 43 MT @ 24.6% Mg, gold over 5.64 meters) even more remarkable was the very high grade, near surface using a 21.9% cut-off. Approximately 10.6 MT contained Mg. Metallurgy reported in the Magnesium—initially averaging 25.3% over the first five holes including 80.92 meters PEA indicated an 80% recovery rate for the magnesium. true width averaging a grade of 24% magnesium in hole 5. www.WHYRESOURCES.com 11
SUPPLY AND DEMAND
PIE CHART: PIE CHART:
BY COUNTRY END USES
Current global demand for
Magnesium: 7 million tons
* Charts: Roskill Information
Services, November 2013
World production of primary magnesium is estimated by Roskill to have increased from CM Group estimates that global primary magnesium demand grew 14% in 2013, to
499kt in 2002 to 905kt in 2012, a compound annual growth rate (CAGR) of 6.1%. Today 792,000 mt from 693,000 mt in 2012.
world production continues to grow, passing 1.1MT per year in 2015. (Frank to supply
source) MMTA>CO>UK Over the next 10 years, CM Group expects global magnesium demand to see a 7.8%
compounded annual growth rate, with China accounting for 11.4% of that growth.
Global magnesium demand is forecast to see a compounded annual growth rate of 7.7%
over the next five years, with China's consumption leading the way at a projected 12.1% Platts:
CAGR, said Alan Clark, managing director of Australia-based consultancy CM Group. http://www.platts.com/latest-news/metals/munich/global-magnesium-demand-projected-to-
rise-77year-26800334
www.WHYRESOURCES.com 12WHAT IS MAGNESIUM USED FOR? MAGNESIUM HAS 100s OF APPLICATIONS IN A VARIETY OF INDUSTRIES INCLUDING AUTOMOTIVE, AEROSPACE, CONSTRUCTION, DEFENCE, TECHNOLOGY, ENERGY STORAGE, AGRICULTURE AND HEALTH CARE AND PYROTECHNICS, AND MORE. www.WHYRESOURCES.com 13
MAGNESIUM IN THE AUTOMOTIVE SECTOR
The largest market for magnesium metal is aluminum alloying and die casting, comprising Potential Mg Growth Scenario 2:
two thirds of magnesium metal use. Primary industry is automotive. A report from the United States Automotive Materials Partnership (a collaboration between
car makers GM, Ford, and Chrysler) estimates that by 2020, 250 pounds of magnesium
Vehicle manufacturers have a mandate to make cars lighter and more fuel efficient! will replace 500 pounds of steel and 90 pounds of magnesium will replace 130 pounds of
aluminum per vehicle, resulting in an overall 15% weight reduction.
According to GM, there is a 7 percent improvement in fuel economy for every 330 pounds
reduction in weight. The Math:
88.5 MM* vehicles per year globally X 340 lbs per vehicle
Growth expectations vary depending on source. Projection is for huge growth. POSSIBLE 2020 AUTOMOTIVE Mg DEMAND: 30 billion lbs
Potential Mg Growth Scenario 1: * Source: U.S. Automotive Materials Partnership
Used on cars since 1920, the average light vehicle has about 10 pounds* of magnesium
in its composition. That number is poised to triple by 2025, according to a forecast by
Ducker Worldwide, a Troy, Mich., consulting and research firm.
The Math:
88.5 MM* vehicles per year globally X 10 lbs X factor of three (Ducker forecast for growth)
2025 AUTOMOTIVE Mg DEMAND: 2.66 billion lbs
www.WHYRESOURCES.com 14MAGNESIUM CEMENT AND
MAGNESIUM WALLBOARD
CEMENT PRODUCTION IS SECOND MOST CARBON-INTENSIVE ACTIVITY ON PLANET.
MAGNESIUM OXIDE BOARD VS THE COMPETITION:
• Production of Mg cement uses Attributes Magnesium Oxide Board Gypsum Board Plywood/OSB Cement Board
less fossil fuels (and therefore no
CO2) Fire Resistant & Non-Combustible Yes X X Yes
• Mg cement absorbs and locks in Moisture, Mold & Mildew Free Yes X X Yes
CO2 emissions at it sets
Insect Resistant Yes X X Yes
• Non-toxic
Cut/Saw – No special tools Yes Yes Yes X
• Health-promoting properties for
occupants of homes Wallpaper over Yes Yes X X
• Binds to all things cellulose vs Tile Backer Yes X X Yes
portland cement repels cellulose
Insulation Sound & Heat Yes X X Yes
• Strengths of 9,000 to 45,000 psi
Environmentally ‘Green’ & Non-Toxic Yes X X X
and tensile strength over 800 psi
• Many times stronger than Strong & Durable Yes X Yes Yes
conventional concrete Light Weight Yes Yes X X
• Never rots as it expels moisture Recyclable Yes X X X
www.WHYRESOURCES.com 15AEROSPACE & DEFENCE, BATTERIES
AND CONSUMER GOODS
BATTERIES: MOVE OVER STRATEGIC METAL FOR AEROSPACE Rana Mohtadi, a scientist working on hydrogen storage at the Toyota Research
LITHIUM… AND DEFENSE INDUSTRY Institute of North America has discovered a material that could be used as an
electrolyte for a magnesium battery. Mohtadi and fellow scientists published the
research in the Angewandte Chemie journal.
§ Lithium ions have a charge of +1, § Lightweight properties of magnesium
magnesium ions have a charge of +2, improve performance of aircraft, vehicles,
therefore they can carry twice the armor and military equipment.
electrical current
CONSUMER GOODS INDUSTRY
§ Magnesium batteries are less
expensive to produce than lithium
batteries § Power Tools and Sporting goods such as
bicycle frames, ski bindings and tennis
§ Less prone to catching fire than lithium rackets.
§ Electronics such as mobile phones,
www.WHYRESOURCES.com laptops and flat screen TVs. 16AGRICULTURE AND HUMAN HEALTH
MAGNESIUM (IN THE FORM OF MAGNESIUM IS VITAL TO HUMAN
HEALTH, AND IS A COFACTOR IN MORE LACK OF MG IN THE BODY IS KNOWN TO CAUSE:
MAGNESIUM NITRATE) IS ESSENTIAL
FOR HEALTHY PLANT GROWTH! THAN 300 ESSENTIAL ENZYME
SYSTEMS IN THE BODY:
§ Muscle Hyperexcitability § Irritability
§ Weakness § Muscle twitching
§ Photosynthesis: Mg is the central element § Protein synthesis
of the chlorophyll molecule. § Sleepiness § Poor memory
§ Muscle and nerve function
§ Carrier of Phosphorus in the plant § Reduced ability to learn
§ Blood glucose control § Burns
§ Magnesium is both an enzyme activator and § Heart changes
§ Blood pressure regulation § Medications
a constituent of many enzymes
§ Energy production § Rapid heartbeat
§ Sugar synthesis § Low blood levels of calcium
§ Oxidative phosphorylation § Muscle contraction
§ Starch translocation § Surgery
§ Glycolysis § Delirium
§ Plant oil and fat formation § Anorexia
§ Structural development of bone § Numbness
§ Nutrient uptake control
§ Apathy
§ Required for the synthesis of DNA, RNA,
§ Increased Iron utilization § Hallucinations
antioxidant glutathione § Confusion
§ Aid nitrogen fixation in legume nodules § Tingling
§ Plays a role in the active transport of calcium
§ Fatigue
and potassium
§ Insomnia
www.WHYRESOURCES.com 17ONCE WE REACH PRODUCTION
III
3. Wallboard Plant
I
1. Magnesium Nitrate Fertilizer
IV
4. Cement Plant
V
5. Battery Plant
II
2. Magnesium Oxide Fertilizer VI
6. Ingot Plant
I. Mg is a vital nutrient for healthy plant growth. It is a key component of the chlorophyll molecule IV. No CO2 emissions, Mg cement PSI strength ranges from 9,000 to 45,000; Mg cement lasts for
3,000-5,000 years; and it absorbs and locks it CO2 emission as it sets and cures.
II. WHY can produce MgO that is up to 99% purity with no CO2 emissions from the production process.
V. Mg batteries may have up to 12 times energy density of lithium batteries and a charge/discharge that is
III. Mg Wall board plant can replace OSB board, plywood, drywall and cement board. It is fire proof, 5 times greater.
smoke proof, water proof, mould and mildew proof and termite proof.
VI. Mg ingots are the lightest and strongest based on weight to density ratio, lighter by 33%, which results in
lower CO2 emissions in all uses.
www.WHYRESOURCES.com
18CONTACT US West High Yield (W.H.Y.) Resources Ltd Corporate Address: 4500 Bankers Hall East 855 - 2nd Street SW Calgary, AB T2P 4K7 Mailing Address: PO Box 68121 Calgary, AB T3G 3N8 Office: (403) 660 3488 Fax: (403) 206 7113 Frank Marasco, President and CEO Email: frank@whyresources.com www.whyresources.com
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