For North America January 2022 - NeoTerrex
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Green Metals
for North America
January 2022
Highlights
▪ New Company in a highly prospective market
▪ High-grade critical rare earth oxides (CREO) in Quebec
▪ Among the highest Neodymium values in grab samples in Quebec
▪ 100% Owned Properties in a mining friendly jurisdiction
REE
▪ Excellent access with key local infrastructure
▪ Key domestic components for green energy
▪ Strategic metals vital to military applications
▪ Increasing government support due to China market dominance
January 2022 2
Disclaimer
This presentation (this "Presentation") has been prepared by the management of NeoTerrex Corporation (the "Company" or “NeoTerrex") for informational purposes only based on public information and from the Company’s confidential and proprietary
materials, and may contain certain material information about NeoTerrex. This Presentation is not prepared to assist the reader in making a decision whether to invest in NeoTerrex and the contents of this Presentation have not been approved or
disapproved by any securities commission or regulatory authority in Canada, the United States or any other jurisdiction. This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any security in Canada, the United State s or any
other jurisdiction. Any such offer to sell or solicitation of an offer to buy the securities described herein will be made only pursuant to subscription documentation between NeoTerrex and prospective purchasers. NeoTerrex expressly disclaims any duty on
NeoTerrex to make disclosure or any filings with any securities commission or regulatory authority, beyond that imposed by applicable laws. In providing this Presentation, NeoTerrex undertakes no obligation to provide the recipient with access to any
additional information. This Presentation does not take into account the particular investment objectives or financial circumstances of any specific person who may receive it. In making an investment decision, prospective investors are encouraged to
conduct their own examination of NeoTerrex and of the information contained in this Presentation, including the terms of the Financing and the merits and risks involved . Without limitation, prospective investors should consider the advice of their own
financial, legal, accounting, tax and other advisors and such other factors they consider appropriate in investigating and analyzing NeoTerrex. In particular, any estimates or projections or opinions contained herein necessarily involve significant element of
subjective judgment, analysis and assumption and each prospective investor should satisfy itself in relation to such matters.
Qualified Person
The disclosure of any scientific and technical information contained in this Presentation was approved by Mathieu Stephens, P.Geo, the Company's President, Chief Executive Officer and director, and a Qualified Person under National Instrument 43-101
Standards of Disclosure for Mineral Projects.
Market and Industry Data
Market data and industry forecasts contained in this Presentation have been obtained from industry publications, various publ icly available sources or subscription-based reports as well as from management’s good faith estimates, which are derived from
management’s knowledge of the industry and independent sources that management believes to be reliable. Industry publications, surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be
reliable. The Company has not independently verified any of the information from third-party sources nor has it ascertained the validity or accuracy of the underlying economic assumptions relied upon therein. NeoTerrex hereby disclaims any responsibility
or liability whatsoever in respect of any third-party sources of market and industry data or information.
This Presentation contains certain forward-looking statements or forward-looking information under applicable securities legislation. Such forward-looking statements or information are used in this Presentation for the purpose of providing information
about management’s current expectations and plans relating to the future development of NeoTerrex’s business. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions.
Forward-looking statements or information typically contain statements with words such as "anticipate", "potential", "intend", "propose", "may" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements
or information in this Presentation include, but are not limited to, statements or information with respect to: future plans for NeoTerrex; future plans for exploration, including drilling programs; the confirmation of historical results and verification of
potential extensions; the Company's objective to focus exploration on rare earth assets with existing infrastructure; the Company's objective to forge strategic partnerships on non-core assets; the Company's objective to maintain financial strength; the
Company's intention to forge new key alliances; and other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking statements or information are based on a number of factors and
assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although NeoTerrex believes that the expectations reflected in such forward-looking statements or information are reasonable, undue
reliance should not be placed on forward-looking statements or information because the Company can give no assurance that such expectations will prove to be correct. Actual results, performance or achievements could differ materially from those
expressed in, or implied by, these forward-looking statements or information and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements or information will transpire or occur, or if any of them do so,
what benefits NeoTerrex will derive therefrom. In addition to other factors and assumptions which may be identified in this Presentation, assumptions have been made regarding, among other things: the timely receipt of any required regulatory approvals for
the business plans of NeoTerrex, the ability of NeoTerrex to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability of NeoTerrex to obtain future financing on acceptable terms; anticipated costs of NeoTerrex 's
exploration programs; the regulatory framework regarding taxes and regulatory matters in the jurisdictions in which NeoTerrex operates; and that NeoTerrex will have sufficient capital to conduct its business plan. Readers are cautioned that the foregoing
list is not exhaustive of all factors and assumptions which have been used. Forward-looking statements or information are based on current expectations, estimates and projections that involve substantial known and unknown risks and uncertainties which
are beyond the control of NeoTerrex and which could cause actual results to differ materially from those anticipated by NeoTerrex and described in the forward-looking statements or information. Such risks and uncertainties include, without limitation:
potential delay or failure in closing the proposed Financing; the impact of general economic and business conditions in Canada, the United States and overseas; industry conditions; changes in laws and regulations and changes in how they are interpreted
and enforced; the ability of management to execute its business plan; potential delays or changes in plans with respect to NeoTerrex’s exploration programs; the uncertainty of estimates and projections; foreign currency exchange rates and interest rates;
risks inherent in NeoTerrex’s operations; regulatory risks; risks associated with potential lawsuits and regulatory actions against NeoTerrex; and risks related to the inability to obtain services as may be necessary. Readers are cautioned that the foregoing
list of possible risks and uncertainties is not exhaustive. Although NeoTerrex has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may
be other factors that cause actions, events or results not to be as anticipated, estimated or intended. All subsequent forward-looking statements or information, whether written or oral, attributable to NeoTerrex or persons acting on its behalf are expressly
qualified in their entirety by these cautionary statements. Furthermore, the forwardlooking statements or information are made as at the date of this Presentation and NeoTerrex does not undertake any obligation to update, publicly or otherwise, or to revise
any of the forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. References to dollars or "$" are to Canadian dollars unless specified
otherwise.
3
Rare Earth Elements
What are Rare Earth Elements (REE)?
▪ Group of 17 chemical elements in the periodic
table also known as Lanthanides
▪ These elements are considered “rare” because
they are not commonly found in economic
quantities. Only two producing mines in North
America
Rare Earth Elements Uses
▪ Electric cars ▪ Rechargeable batteries
▪ Electronics ▪ Renewable energy applications
▪ Military Equipment ▪ Medical technology
▪ Magnets ▪ Energy-efficient lights
January 2022 4
The Critical Rare Earths (CREE)
Demand for Neodymium, Praseodymium, Dysprosium expected to see the most growth
▪ Mostly used in permanent magnets which is projected to
be the main driver of the Rare Earths market.
▪ Current Neodymium market alone is valued at over US$
3 billion
▪ Projected lack of new primary and secondary supply
sources from 2022 onward
▪ In June 2021, the US Government announced new Anticipated future relative demand for REE
measures to entice local sources, especially Neodymium Source: Adamas Intelligence (April 2021)
January 2022 5
The Critical Rare Earths
Prices on the rise
▪ Over recent years, prices for Neodymium, Praseodymium, Terbium and
Dysprosium oxides have tripled reaching historic new highs over the last 2 weeks $3,113/kg
▪ Although there have been prices swings in the past, these were temporary and
due to China manipulation (CNN, 2015)
▪ Outlook now predicting steady and sustained growth in prices over several years
▪ Market expected to grow to $15.65 billion by 2030 (9.7% annual growth rate)* * Adamas Research (April 2021)
$206/kg $209/kg $733/kg
REE Prices (Nov 29th, 2021): www.kitco.com
January 2022 6
Market Outlook
Anticipated Global Rare Earth Oxide Magnet Demand Nd-Pr Oxide Forecast Supply – Demand Balance
* Adamas Intelligence (April 2021)
January 2022 7
Reliance on China
China has a near monopoly on Rare Earths
▪ China accounts for more than 85% of REE exports
(source: Bloomberg, Sept 2021)
Rare Earths Oxide mine production in metric tonnes (‘000)
▪ China has announced plans to reduce REE
exports in order to meet its own internal demand
(source: Financial Times, Feb 2021)
▪ China expanding its reach beyond its borders on
Critical Metals projects, including REE
(source: Forbes, June 2021)
▪ China has used its dominance of REE as a
geopolitical weapon in 2010 against Japan and
has recently signaled it is ready to do so again
with any other country or company that requires
the REE
(source: Reuters, Feb 2021) Source: USGS
January 2022 8
Of Strategic Importance
Governments are realizing that they need to secure domestic supply of REE and
have begun to actively encourage the sector.
Dec The Pentagon announces plans to reduce reliance on China for
2019 Neodymium and commits to stockpiling Neodymium magnets
(source: Reuters)
Sept A Presidential Executive Order is issued regarding Critical Minerals
2020 declaring the US reliance of Chinese imports a National Emergency
(source: Forbes)
Feb The Pentagon (US Dept of Defense) awards over $30M to a Corporation to
2021 establish a processing facility on US soil
(source: Reuters)
June The US Government announces it is considering imposing tariffs on
2021 Chinese Neodymium imports
(source: Financial Times)
June The Canadian government provides an interest-free 10 year loan to a new
2021 REE Canadian company
(source: NNSL Media)
January 2022 9
A Western Supply Chain
Over the past few years, the western world has been working hard to catch-up with China on the processing
side and new technologies and processing plants are emerging in numerous locations:
In a few months Saskatchewan will be first province to build a REE processing plant in Canada (www.src.sk.ca)
Lynas Corporation of Australia has also begun construction of a plant in Texas (source: Reuters Feb 2021)
Other current and future locations outside of China include Malaysia, Norway, Finland, Estonia and the UK
(various sources)
Quebec benefits from attractive electricity rates and if the demand is there, a plant could be built within the
province in the future.
January 2022 10Two Key REE Projects
▪ Located in the province of Quebec
Greenwinds ▪ Mining-friendly jurisdiction
▪ Advantageous financial incentives
Project
▪ Low cost electricity
▪ Well qualified labor force
▪ Excellent infrastructure with road
access
▪ Lower cost exploration
▪ High Neodymium, Praseodymium and
Dysprosium values in grab samples
Mount Discovery
Project
January 2022 11Mount Discovery Project
Key Strategic Location
▪ Located 90 km northwest of Chalk River Nuclear
Facility
Ottawa, 50 km east of the
Petawawa
Petawawa military base and Military
the Chalk River nuclear Base
facility also located nearby
▪ Over 3,000 hectares property
▪ Excellent infrastructure with Chenaux Power Station
roads, power station and
local work force
Ottawa
▪ Low cost exploration and
development
Source ESRI For illustrative purposes only
▪ 2.5% Net Smelter Royalty
January 2022 12Mount Discovery Project
High-grade Critical Rare Earths at surface
▪ Among the highest Neodymium values in entire province
(Grab sample of over 10,000 ppm Nd) December 2021 assay results
▪ Contains several other REE of interest, including high
Praseodymium values (Grab samples up to 3,900 ppm
Pr) December 2021 assay results
▪ Recent geophysics indicates potential over wide area
▪ Target area remains to be drilled
▪ Very limited exploration to date
For illustrative purposes only
January 2022 13Greenwinds Project
▪ 3-year Option deal to Source: Sigeom and ESRI
acquire 100% of the project
(4 million shares to issue to insider
and 2.5% Net Smelter Royalty)
▪ Portion of the Property
adjacent to REE Producer
Vital Metals which is aiming
at putting the Kipawa
deposit into production* Kipawa
Deposit
▪ Limited work in the area
until 2008 when diamond
drilling focused on the
Kipawa REE discovery with
Proven and Probable
Reserve Estimate of 19.8Mt
at 0.411% TREO*
Property boundaries are illustrative and may be subject to ongoing changes
* Vital Metals Aug 2021 News Release
January 2022 14Project Geology
Source: Sigeom and ESRI
▪ Underlying geology consists of the Kipawa
Alkaline Complex, a concordant peralkaline
syenite and granite unit*
▪ Mineralization usually consists of
concordant syenite units enriched in rare
earths element, zirconium and yttrium*
Kipawa
Deposit
▪ High regional TREO grades in grab samples
located on Property
Dysprosium= 1,510 ppm
Neodymium= 23,500 ppm (Report GM63880)
▪ No recorded drilling targeting Rare Earths
on property*
*Sigeom Database
For illustrative purposes only
January 2022 15Exploration Outlook
▪ Airborne high-resolution radiometric
and magnetic surveys
▪ Detailed geological mapping
▪ Surface prospecting and sampling
▪ Soil sampling where required
▪ Trenching work where required
▪ Metallurgical Analysis
▪ Initial drill programs planned for 2022
January 2022 162021-2022 Budget
Description Total
Mount Discovery Work $716,000
Greenwinds Work $766,000
Other Exploration Work $200,000
Acquisitions and Claims Renewals $200,000
Management Fees $200,000
Professional Fees $100,000
G&A $150,000
Working Capital/ other $508,000
Total $2,840,000
In December 2021, a $5.3M financing was completed which included $700K in flowthrough funds.
January 2022 17Capital Structure
Shares Description
59,444,000 Outstanding Common Shares
0 Stock Options
3,296,300 Broker Warrants
62,740,300 Fully Diluted
January 2022 18Our Team
Mr. Stephens is a professional geologist with over 15 years in the mining industry. He
Mathieu Stephens P.Geo was President and CEO of UrbanGold Minerals which was subsequently acquired by
President and CEO and Director Troilus Gold in 2021 and Vice President of Exploration for Beaufield Resources which was
acquired by Osisko Mining in 2018. Previous to this, Mr. Stephens worked for Canaccord
Capital for over 6 years.
Mr. Burstall is a partner with DS Burstall LLP and practices in the area of commercial
law with an emphasis on securities law. Mr. Burstall’s practice includes all aspects of
securities law from both the perspective of an issuer or an underwriter, including initial
Dale Burstall LLB. public offerings, secondary financings, mergers and acquisitions, all dealings with
Director regulators including stock exchanges and securities commissions, and corporate
governance. He was Director of UrbanGold Minerals which was subsequently acquired
by Troilus Gold in 2021.
Mr. Neill is the President of Trinity Management, a consulting company specializing in
business development activities in rare earths and specialty metals has over 25 years
Alastair Neill P.Eng, MBA of experience evaluating a number of potential mining projects globally. Mr. Neill has
Director been the director of TSX-V companies and has presented at a number of global
conferences along with being an invitee to a town hall in Malaysia on rare earths. He
has a degree in Material Science Engineering from the University of Western Ontario,
London, Ontario and an MBA from York University, Toronto.
January 2022 19Our Team
Mr. Tchakmakian is a Chartered Professional Accountant (CPA, CA) with over 30
years of experience in the minerals industry. He is specialized in the field of
public companies and securities regulations in Canada. Mr. Tchakmakian has been
an officer of several public companies in the mineral sector having operations in
Vatché Tchakmakian CPA, CA Canada, and Latin America. From 1988 to 1993, he managed audit assignments at
Vice President, Corporate Secretary one of the predecessors of PricewaterhouseCoopers LLP, a national accounting
and Director firm, for a number of large private and public companies. Mr. Tchakmakian
received his B.S. in Public Accounting from the École des Hautes Études
Commerciales, in Montréal, Quebec. He is a member of the TSX Venture Exchange
Advisory Committee. He was CFO of UrbanGold Minerals which was subsequently
acquired by Troilus Gold in 2021 and of Beaufield Resources which was acquired
by Osisko Mining in 2018.
Rajesh Sharma
Director
Ms. Kilborn has over 15 years of experience in the mining sector. She has built her
career by providing corporate development, corporate affairs and communication
services for publicly-traded companies. Ms. Kilborn is Director, Corporate
Shanda Kilborn BA Development for Abitibi Royalties and is responsible for matters on the project
Corporate Development generator initiative. She is also Corporate Secretary for Satori Resources and
provides corporate affairs services for various other mining companies. Ms.
Kilborn holds a BA from the University of Ottawa.
January 2022 20Green Metals for North America
For More Information
Mathieu Stephens
mathieu@neoterrex.com
343-883-4334
January 2022 21You can also read
