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![4
¹ Cash position and capital structure as at Sept 30, 2021
² Source: Bloomberg - Based on transaction value
TSX SLS
Common Shares Outstanding 108M
Stock Options 8M
Warrants 38M / $82M
Restricted Share Units 0.5M
Diluted Shares Outstanding 155M
Cash US$47M
Capital Structure
Capital Structure¹
0
5
10
15
0
20
40
60
80
Q2/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21
Price
($/sh)
Buying
($M)
$128M of insider buying over LTM
Leading all issuers in TSX materials sector²
Ross Beaty
Chair, Equinox Gold Corp.
[Equinox] has no further plans to divest
any shares for the foreseeable future.
Warintza would be of interest to any major mining
company, so I fully expect not too far away, maybe
this year, they'll get an offer they can't refuse and
we will be more than happy to exit with them.
Richard Warke
33%
Equinox Gold 16%
Lundin 5%
Mgmt 5%
Beaty 4%
Lowell 2%
Float
35%
Share Distribution](https://image.slidesharecdn.com/solarisresources-november2021-q3-updated-public-211116152329/75/Solaris-Resources-Nov-2021-Corporate-Presentation-4-2048.jpg)
![11
Warintza Community
Population
Community Number
Warints 300
Yawi 200
Total 500
Direct Community
Employment
Community Number
Warints, Yawi 197
Amazonia sector 174
Resto del país 50
Total 421
Responsible Mining | Partnership with Host Communities
“I took a tour of the project, which fills me with joy to know
that the community and the Company are closely linked to
each other. It is a company that has won the affection of the
people of Warints and Yawi.”
‘The communities {possess a] worldview of wanting to have
better living conditions to raise their children and, through their
dignified work, will improve conditions and that has to do with
the presence of the Company boosting the families' economy.’
Freddy Villamagua
Governor of Morona Santiago, Ecuador
Community involvement at each step,
enhanced with capacity-building program
Maximizing community involvement
key to strong and resilient alliance
Innovative approach: commitment to
transparency, education and inclusion
Government and community understanding
of impacts and benefits of project
Over 420+ direct and indirect service providers](https://image.slidesharecdn.com/solarisresources-november2021-q3-updated-public-211116152329/75/Solaris-Resources-Nov-2021-Corporate-Presentation-11-2048.jpg)
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Solaris Resources - Nov 2021 Corporate Presentation
- 1. Copper, Gold Growthand Discovery in the Americas Corporate Presentation November 2021 World’s Greatest Explorer – Assembled Portfolio, Designed Programs, Our Discoveries Honor His Legacy
- 2. 2 This presentation doesnot constitute an offering of securities and the information contained herein is subject to the information contained in the Company's continuous disclosure documents. All amounts expressed in Canadian $ unless otherwise stipulated. Forward-looking Statements This presentation includes certain statements that constitute "forward-looking statements", and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"). All statements, other than statements of historical fact, are forward-looking statements. These statements appear in a number of places in this presentation and include statements made with respect to anticipated exploration and development activities. When used in this presentation words such as "intends", "expects", "will be", "underway", "targeted", "planned", "objective", "expected", "potential", "continue", "estimated", "would", "subject to" and similar expressions are intended to identify these forward-looking statements. Although Solaris Resources Inc. (the "Company") believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including risks related to the business of the Company; global outbreaks and contagious diseases (including COVID-19); business and economic conditions in the mining industry generally; the supply and demand for labour and other project inputs; adverse claims made by local communities; changes in commodity prices; unanticipated exploration and development challenges (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters); adverse weather conditions; political risk and social unrest; changes in interest and currency exchange rates; and the risks, uncertainties and other factors identified in the Company's periodic filings with Canadian securities regulators. These forward-looking statements were derived using numerous assumptions, including assumptions regarding general business and economic conditions; the Company’s ability to develop and maintain relationships with local communities (including the local Shuar Centres of Warints and Yawi); commodity prices; anticipated costs and expenditures; the Company’s ability to advance exploration efforts at Warintza and its other projects; and the results of such exploration efforts. While the Company considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking statements speak only as of the date those statements are made. Except as required by applicable law, we assume no obligation to update or to publicly announce the results of any change to any forward-looking statement contained herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward- looking statements. If we update any forward-looking statements, no inference should be drawn that we will make additional updates with respect to other forward-looking statements. All forward-looking statements contained in this presentation are expressly qualified in their entirety by this cautionary statement. Technical Information The technical information contained in this document has been reviewed and approved by Jorge Fierro, M.Sc., DIC, PG, Vice President Exploration of Solaris who is a “Qualified Person” as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects. Jorge Fierro is a Registered Professional Geologist through the SME (registered member #4279075). Unless otherwise disclosed, all technical information related to Warintza is based on the “Resource Estimate of the Warintza Central Cu-Mo Porphyry Deposit" prepared by Equity Exploration Consultants Inc. with an effective date of December 13, 2019. Cautionary Note to U.S. Investors Concerning Estimates of Mineral Resources The mineral resource estimates described in this presentation have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. The terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in accordance with Canadian National Instrument 43 101— Standards of Disclosure for Mineral Projects (“NI 43 101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ from the definitions in requirements under United States securities laws adopted by the United States Securities and Exchange Commission. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. An “inferred mineral resource” is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration. Investors are cautioned not to assume that all or any part of mineral resources determined in accordance with NI 43-101 and CIM standards will qualify as, or be identical to, mineral resources estimated under the standards of the SEC applicable to U.S. companies. Accordingly, information contained in this presentation may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. Forward-Looking and Cautionary Statements
- 3. 3 Tamarugo Ricardo La Verde Warintza Peru JVs Leveragethrough drilling to multiple-times resource growth and discovery potential Solaris is responsibly and sustainably advancing a portfolio of copper and gold projects in the Americas: Focused on Flagship Warintza, Ecuador – High-grade, open pit resource within 7km x 5km cluster of outcropping copper porphyries targets; untested gold potential Discovery Potential – Advancing Tamarugo and Ricardo in Chile and Capricho and Paco Orco in Peru Exploration Programs Designed by David Lowell – Assembled portfolio and designed programs led by Ecuadorian protégé, Jorge Fierro, VP, Exploration Managed by the Augusta Group – Highly-specialized in exploration and development, unrivaled track record of over $4.5B exits / 10 yrs Project Portfolio | Multiple-Times Growth and Discovery Potential
- 4. 4 ¹ Cash positionand capital structure as at Sept 30, 2021 ² Source: Bloomberg - Based on transaction value TSX SLS Common Shares Outstanding 108M Stock Options 8M Warrants 38M / $82M Restricted Share Units 0.5M Diluted Shares Outstanding 155M Cash US$47M Capital Structure Capital Structure¹ 0 5 10 15 0 20 40 60 80 Q2/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Price ($/sh) Buying ($M) $128M of insider buying over LTM Leading all issuers in TSX materials sector² Ross Beaty Chair, Equinox Gold Corp. [Equinox] has no further plans to divest any shares for the foreseeable future. Warintza would be of interest to any major mining company, so I fully expect not too far away, maybe this year, they'll get an offer they can't refuse and we will be more than happy to exit with them. Richard Warke 33% Equinox Gold 16% Lundin 5% Mgmt 5% Beaty 4% Lowell 2% Float 35% Share Distribution
- 5. 5 Richard Warke, ExecutiveChairman Arizona Mining, Equinox Gold, Augusta Resource, Ventana Gold Daniel Earle, President & CEO TD Securities Sunny Lowe, CFO INV Metals Inc., Kinross Gold Corp., Inmet Mining Purni Parikh, SVP Corporate Affairs Arizona Mining, Augusta Resource, Ventana Gold Federico Velasquez, VP Operations Equinox Gold, Anglo American, Alta Gas Chad Wolahan, VP Projects Ivanhoe Mines, Stantec, Newcrest Jorge Fiero, VP Exploration Equinox Gold, Lowell Copper, BHP Tom Ladner, VP Legal Augusta Gold, Titan Mining, BLG LLP Jacqueline Wagenaar, VP Investor Relations Guyana Goldfields Greg Smith, Director Equinox Gold, Esperanza Resources, Minefinders Donald Taylor, Director Arizona Mining, BHP Minerals, Bear Creek Kevin Thomson, Director Barrick, Davies Ward Phillips & Vineberg LLP Ron Walsh, Director Walsh King LLP, Canadian Tax Foundation, Vancouver Stock Exchange Board & Management Strategic Partners Equinox Gold Corp. Equinox Gold is an emerging mid-tier Canadian gold producer, dual-listed in Canada and the US. The company has a reserve base of over 12 Moz, with six mines in production and two more in development, providing an organic growth profile to over 1Moz annual production by 2022. Lukas Lundin Lundin Group has led companies to numerous discoveries and major transactions, including Lundin Mining’s $3.3B merger with EuroZinc, the $2.0B sale of Tanganyika Oil, and the $7.1B sale of Red Back Mining. Ross Beaty Ross Beaty is a serially-successful resource entrepreneur and founder of Pan American Silver ($3.5B), Alterra Power ($1.1B) and Lumina Copper, a company that turned $170M in financing into five separate companies generating $1.4B in shareholder value over 10 years. Augusta Group Mining sector-focused management group based in Canada and the U.S. with an unrivaled track record of value creation totaling over $4.5B in exit transactions since 2011 and has strategic partnerships with leading entrepreneurs in the mining sector. Richard Warke Richard Warke has led multiple successful mining companies, including Ventana Gold (sold for $1.6B); Augusta Resource (sold for $670M); Co-Founded to form Equinox Gold ($3.0B Market Cap); and Arizona Mining (sold for $2.1B). Leadership | Track Record of Success
- 6. 6 El Teniente Mirador, 2001 Pierina,1996 Toromocho, 2005 Los Calatos, 1992 Maria Rosa, 1985 Leonor, 1989 San Cristobal, 1985 Zaldivar, 1981 Escondida, 1981 Bajo Alumbrera, 1968 Andina Los Bronces Los Pelambres Radomiro Tomic Spence Chuquicamata Collahuasi Toquepala Cerro Verde Antamina Warintza, 2000 David Lowell made more discoveries of greater consequence than anyone in history, with over a dozen major discoveries, including the largest copper mine in the world, La Escondida, which produced ~$10B of copper last year. Assembled our pipeline of grassroots exploration projects targeting future discoveries; programs led by his protégé, Jorge Fierro, VP, Exploration. Co-defined porphyry copper deposit model in 1970. Direct application led to first discoveries (exposed deposits); evolved technique for second wave discoveries (obscured deposits); final evolution targets blind discoveries. Lowell Discoveries Major Mines Obscured Deposits (80-90s) Partly covered by capping, cover, e.g., La Escondida Blind Deposits (2000-Future) Completely covered or deep, e.g., Tamarugo, Ricardo Exposed Deposits (60-80s) Alteration systems visible from air, e.g., Bajo Alumbrera, San Cristobal David Lowell | World’s Greatest Explorer (1928-2020) 6
- 7. 7 Canada-based management group,focused on mining sector Highly-specialized in exploration and development stage projects Unrivaled track record of creating value, with over $4.5B in exit transactions Part of The Augusta Group | Unrivaled Track Record of Value Creation Sold for $1.6B in 2011 Sold for $667M in 2014 Co-Founded in 2017; $3.0B Market Cap Sold for $2.1B in 2018 Past Returns (12,960% return) (3,300% return) (6,100% return) (1,500% return) Note: The results for Ventana Gold Corp., Augusta Resource Corp., Equinox Gold. and Arizona Mining Inc. are independent of the results of Solaris Resources and are no guarantee of the future performance. Undue reliance should not be placed thereon when considering an investment in Solaris.
- 8. 8 We focus onlimiting our environmental impacts by: • Responsible use of resources • Minimal impact to environment • Reducing waste • Identify, analyze and manage our environmental risks We act in a socially responsible manner and contribute to the communities in which we operate. • Committed to working transparently with our employees and other stakeholders to create growth and prosperity • Established a committee to provide us with feedback on our corporate social responsibility efforts We act in an ethically responsible manner and uphold our core values using our: • Governance Policies and Management Systems • Active participation in leading management and disclosure initiatives and industry best practices Environment Social Governance Responsible Mining | Environmental, Social and Governance
- 9. 9 Enact prior consultation norm for indigenous peoples Special Commission to Control Illegal Mining Upgrade systems to enable Ecuador | RobustSupport for Responsible Mining Development Guillermo Lasso - Strong Support for Mining Sector o Conservative, successful self-made entrepreneur; high credibility and popularity; agenda of private sector economic revitalization o Emphasizes foreign investment in formal mining sector critical to grow economy, employment, infrastructure and tax base o Demands social development alongside project development, highest environmental standards “In the medium term, Ecuador could turn into a major mineral exporting country, such as Peru and Chile” “I would like to congratulate and thank those visiting us from abroad, for their presence supports start-ups born from the communication between companies and communities, as in the case of Solaris in the province of Morona Santiago” Guillermo Lasso, President of Ecuador 9 “This will be the decade of mining in Ecuador” “By 2030, we hope that mining will be attracting billions of dollars of investment, generating billions of dollars in annual exports and employing hundreds of thousands of Ecuadorians” “As a government we are clear that mining needs to develop because it is the future of the country" Juan Carlos Bermeo Calderón, Min. of Energy and Non-Ren. Natural Res. 1. Bloomberg Barclays index -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% January-21 March-21 May-21 July-21 Bloomberg Barclays Emerging Markets Aggregate Index Bloomberg Barclays EM USD Aggregate: Ecuador Total Return Index Unhedged USD Markets Celebrate election of Guillermo Lasso as President Strengthened regulatory and streamlined permitting environment Ecuador’s sovereign bonds have rallied 41% since election, leading all emerging market debt¹ globally Mining Boost in 2020: $921M exports (4% of total) $430M corporate taxes (22%) $374M FDI (46%) Executive Decree 151 Signed by President Lasso August 5 Defines Mining Policy for Ecuador Major expansion of formal mining sector through foreign investment
- 10. 10 Responsible Mining |New Model for Responsible Mining in Ecuador Warintza Success Story World class discovery by David Lowell in 2000, sat largely dormant since 2001 due to a breakdown in social acceptance from local communities Extensive dialogue led to understanding root causes of conflict, resolution of underlying issues mid-2019; instituted an informed, innovative CSR program Government-Sponsored Prior Consultation process and signed Memorandum of Understanding in 2019, Impacts and Benefits Agreement in 2020 Warintza Model Inclusive development model based on transparency, dialogue, and trust relationship between government, communities and company with the objective of sustainable socio-economic development of community and people together with project Strategic Alliance governed by Board of Directors from host Shuar Centres; community development alongside project, with investments in health, education, training, infrastructure, environment, entrepreneurship, gender equality, labor, cultural and human rights and security There are very successful projects, such as Solaris’ Warintza project, which shows that with good on-site management, transparent dialogue, and community participation, very interesting things can be achieved. Not all mining companies have these policies, nor do all companies have that level of commitment. Xavier Vera Grunauer Vice Minister of Mines, Ecuador The Shuar Centres of Warints and Yawi have been working with Solaris for more than three years in the exploration and study of our Ancestral Lands. It has been a partnership, with two-way learning and knowledge exchange. Vincente Tsakimp Indigenous Leader, Warintza Project Strategic Alliance
- 11. 11 Warintza Community Population Community Number Warints300 Yawi 200 Total 500 Direct Community Employment Community Number Warints, Yawi 197 Amazonia sector 174 Resto del país 50 Total 421 Responsible Mining | Partnership with Host Communities “I took a tour of the project, which fills me with joy to know that the community and the Company are closely linked to each other. It is a company that has won the affection of the people of Warints and Yawi.” ‘The communities {possess a] worldview of wanting to have better living conditions to raise their children and, through their dignified work, will improve conditions and that has to do with the presence of the Company boosting the families' economy.’ Freddy Villamagua Governor of Morona Santiago, Ecuador Community involvement at each step, enhanced with capacity-building program Maximizing community involvement key to strong and resilient alliance Innovative approach: commitment to transparency, education and inclusion Government and community understanding of impacts and benefits of project Over 420+ direct and indirect service providers
- 12. 12 Mining District |Natural Cost Advantage with Excellent Infrastructure 268km2 property, 100%-owned; 40km north of Mirador mine (US$1.4B / 20 Mtpa), Access road to nearby highway connecting Pacific ports, transmission lines, airport, skilled labour, fresh water Access to grid power (hydroelectric), adjacent Santiago G8 development (US$4B / 3,600MW) Primary Infrastructure: Natural Cost Advantage Ecuador Cost Advantage Relative to Chile¹ Capex Savings Opex Savings Access $100M Low Elevation 6% Power $200M Hydro Power 8% Water $750M Fresh Water 6% Ports $300M Labour Costs 5% Capex Savings $1,350M Opex Savings 25% 1. Mine Cost Survey 2020. Actual results may vary, and undue reliance should not be placed on Solaris being able to achieve capex and cost savings 2. Adjacent Properties and infrastructure are independent of Solaris. Readers should not infer that Solaris will obtain similar results to adjacent properties and undue reliance should not be placed thereon when considering an investment in Solaris
- 13. 13 Warintza Project |Resource Growth and Discovery Drilling 1. See “Resource Estimate” and “Detailed Drill Results” in the Appendix to this presentation for additional information. Source: The exploration disclosure in this slide is based upon Company news releases dated Feb 16, Jul 7&20, Sept 7&27, Oct 12&25, and Nov 1&15, 2021. WARINTZA CENTRAL Two Objectives: Resource Growth and Discovery In-Pit Inferred Mineral Resource at Central: 124 Mt @ 0.70% CuEq¹; Includes only historical drilling (2000-2001) to 200m depth >40km completed for updated resource at Warintza Central; All holes intersect long intervals, highest grades at/near surface, Deposit open and growing to east, north and south Major new discovery on first-ever hole at Warintza West; Open all directions, follow-up to establish size potential Major new discovery on first-ever hole at Warintza East; Open all directions, follow-up to establish size and connection to Warintza Central First-ever drilling at Warintza South, target 2x size of Central; 100% hit rate, zero misses within Warintza cluster
- 14. 14 Warintza Project |Further Discovery Potential within 7km x 5km Cluster Source: The information in this slide is based upon the Company’s news release dated Feb 16, Jul 7&20, Sept 7&27, Oct 12&25, and Nov 1&15, 2021. See “Resource Estimate” and “Detailed Drill Results” in the Appendix to this presentation for additional information.
- 15. 15 Undrilled Regional Targets Two additionalgold anomalies at Clemente Warintza Project | Regional Potential Beyond Warintza Cluster 1. Adjacent Deposits are independent of Solaris. Readers should not infer that Solaris will obtain similar results to adjacent deposits and undue reliance should not be placed thereon when considering an investment in Solaris 2. Panantza Inferred Mineral Resource: 463 Mt @ 0.66% Cu; San Carlos Inferred Mineral Resource: 600 Mt @ 0.59% Cu, Source: Corriente Resources – Preliminary Assessment Report, October 30, 2007 Three large-scale, gold anomalies from surface sampling at Warintza >0.5 g/t gold-in-soils across broad area, overlapping copper anomaly at Caya Geophysical survey identified additional targets for surface work 15
- 16. 16 Upcoming News |Growth and Discovery Drilling JV Partner, Freeport-McMoRan drilling for discovery at Ricardo in Chile Drilling at Warintza Central targeting major resource growth Expansion drilling at recent discoveries Advancing Capricho and Paco Orco in Peru, Tamarugo in Chile Discovery drilling at other targets within 7km x 5km Warintza porphyry cluster
- 17.
- 18. 18 Solaris option toearn up to 75% 4,600 hectare property, 60km SE of Las Bambas, Haquira Outcropping porphyry exposed >300m during recent landslip Samples from this outcrop grade up to 3% Cu Community consultation ongoing Capricho and Paco Orco | Discovery Potential via JV in Peru Capricho Solaris option to earn up to 75% 4,400 hectares property, northern extension of Southern Peru Copper Belt Polymetallic CRD gossan outcropping in limestone extending >2km Surface samples up to 0.5% Pb, 0.26% Zn and 58 g/t Ag from leached material Community consultation ongoing Paco Orco
- 19. 19 Exposure to US$4.2Mof exploration spending over two years as part of US$130M / 5-yr farm-out of 80% to Freeport-McMoRan 16,000 hectares in the most prolific section of the West Fissure fault, which controls Chile’s largest copper deposits Earlier efforts at drilling stymied by fault, but encountered rock types and alteration similar to those seen at Chuquicamata Ricardo Project | Discovery Potential via JV in Chile Discovery potential on the same structure as one of Chile’s largest copper mines, Chuquicamata
- 20. 20 Tamarugo Project |Discovery Potential in Chilean Copper Belt Solaris can earn up to a 75% interest in Tamarugo for gross expenditures of US$5.5M / 5-yrs from Freeport 5,100 hectare property in a mineralized corridor that hosts numerous porphyry deposits 5km NE of Copiapo with excellent access to infrastructure including power and nearby water Same geologic and structural setting as El Salvador and Potrerillos Copper Mines, located ~50km to the NE Discovery potential in the same geologic area that hosts Chile’s largest copper porphyry deposits
- 21. 21 La Verde Project| Leverage via JV in Mexico 60% ownership with Teck Resources holding 40% Located in Michoacán state, ~ 320 km west of Mexico City Michoacán is rich in natural resources; Mining is a leading industry with significant production of gold, silver, zinc, iron and copper Excellent Infrastructure: Close proximity to highway, railway, power, port and water 500-year mining history, stable government and attractive mining investment environment Well-structured and supportive mining regulatory framework Project with excellent infrastructure, provides leverage to higher copper prices
- 22.
- 23. 23 Copper Discovery RateRemains Dismal Source: S&P Global Market Intelligence 0 2 4 6 8 10 12 14 16 18 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Number of Discoveries Discovery Year Only 1 discovery made since 2015 2010: Muji, 2011: Cobre Panama, Timok, Cerro Negro, etc. 2012: Copa Sur 2013: Cascabel, Onto, Calingiri, West Musgrave 2014: Kamoa-Kakula, La Huifa, Jebel Ohier 2015: - 2016: Marimaca 2017: - 2018: - 2019: -
- 24. 24 Dearth of DiscoveriesLeaves Pipeline Empty Source: S&P Global Market Intelligence 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 0 20 40 60 80 100 120 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Copper exploration budget (US$M) Copper in major discoveries (Mt) Copper in reserves, resources & past production Projected new copper in major discoveries Copper exploraton budgets 2010: Muji, 2011: Cobre Panama, Timok, Cerro Negro, etc. 2012: Copa Sur 2013: Cascabel, Onto, Calingiri, West Musgrave 2014: Kamoa-Kakula, La Huifa, Jebel Ohier 2015: - 2016: Marimaca 2017: - 2018: - 2019: -
- 25. 25 Goldman Sachs ForecastingRecord High Prices Cuts to exploration and early stage project development mean the size and number of copper projects is substantially lower than a decade ago Copper projected to trade up to $15,000/t by mid-decade to mitigate depletion risks Long-term supply gap implies significant further upside to copper prices Long-term copper price near $10,000/t is needed to incentivize to enough approvals to mitigate the record LT gap Source: Goldman Sachs Global Investment Research, April 2021
- 26. 26 >133 Major New Mines Copper Supply Cliff,Gaping Deficits Projected +8 Mt supply deficit by 2030; New production capability needed from greenfield projects = Discovery Exploration & Definition Feasibility, Permitting, Financing Construction Operation Pre-Discovery Exploration Source: Goldman Sachs Global Investment Research
- 27. 27 Source: BHP ClimateChange Briefing -Sept 10, 2020, S&P Market Intelligence Future-Facing Commodities Copper • Nickel • Potash Robust demand growth from “electrification mega-trend” superimposed on growth from traditional end uses Supply shortfalls from due to grade decline, resource depletion, increased input costs, water constraints, and scarcity of quality projects Gaping supply-demand gap cannot be filled with brownfield expansions; 6 Mtpa production required from greenfield projects BHP Copper Outlook: Sustained Upside for Prices Strategic Focus for Majors ‘We need to secure more options in copper… through exploration and early stage entry in early-stage resources in Canada, Mexico and Ecuador’ - BHP Group CEO, Mike Henry ‘Copper is our preference. A bit like BHP, we’d love a Tier 1, large-scale and low-cost asset. Ideally, shallow and near the coast, with good infrastructure would be ideal’ – Rio Tinto GM Exploration, Lynn Olssen
- 28. 28 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Jan-00 Market Capitalization (US$M) SLS SLS - Nov2021 US$1.1B Market Cap Warintza | Rapid Value Creation in Exploration Stage 1. Resource estimate and NAV ranges are consensus estimates reported from sell-side research coverage and are independent of the results of Solaris Resources and are no guarantee of the future performance. 2. The result for Arizona Mining Inc. are independent of the results of Solaris Resources and are no guarantee of the future performance. Undue reliance should not be placed thereon when considering an investment in Solaris. Discovery, Exploration & Definition Feasibility, Permitting & Financing Construction & Operations Yr 1 Yr 2 Yr 3 Yr 5 Yr 4 LASSONDE CURVE 1x NAV8% (Consensus) = Transaction Multiple of Arizona Mining Sale to South32 for $2.1B in August 2018² SLS-T Analyst Valuation NAV8% Consensus¹ US$2.4B - $4.1B US$3.25B
- 29. 29 M&A Cycle Setto Begin Source: BMO Capital Markets M&A database for transactions greater than US$50M, FactSet ¹ Historical results are no guarantee of the future performance. Undue reliance should not be placed thereon when considering an investment in Solaris. 3 10 12 6 4 $1.00 $2.00 $3.00 $4.00 $5.00 2008 2009 2010 2011 2012 2013 2014 Copper Price (US$/lb) Number of Transactions Copper Price (US$/lb) M&A cycle typically follows price cycle with a lag, approximately 18 months in the prior cycle, and is heavily-weighted towards development-stage assets. Present cycle commenced March 2020, suggesting M&A cycle set to begin late 2021¹
- 30. 30 Resource Estimate Warintza In-pitMineral Resources Resource Tonnes CuEq (%) Cu (%) Copper (M lbs) Mo (%) Mo (M lbs) Au (g/t) Au (oz) Inferred 123,760,200 0.70 0.56 1,516 0.03 77.5 0.06 238,600 The Warintza Mineral Resource estimate was reported in the “Resource Estimate Of The Warintza Central Cu-Mo Porphyry Deposit" prepared by Equity Exploration Consultants Ltd. with an effective date of December 13, 2019. The Warintza Central Mineral Resource statement has been prepared by Trevor Rabb, PGeo who is a qualified person as defined by NI 43-101. The resource is reported using a cut-off of 0.2% copper. Solaris defines copper equivalent calculation for reporting purposes only. Copper-equivalence calculated as: CuEq (%) = Cu (%) + 3.33 × Mo (%) + 0.73 × Au (g/t), utilizing metal prices of Cu - US$3.00/lb, Mo - US$10.00/lb and Au - US$1,500/oz. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
- 31. 31 Detailed Drill Results (1)No adjustments were made for recovery as the project is an early-stage exploration project and metallurgical data to allow for estimation of recoveries is not yet available. Solaris defines copper equivalent calculation for reporting purposes only. Copper-equivalence calculated as: CuEq (%) = Cu (%) + 3.33 × Mo (%) + 0.73 × Au (g/t), utilizing metal prices of Cu - US$3.00/lb, Mo - US$10.00/lb and Au - US$1,500/oz. Assay Results Hole ID Date Reported From (m) To (m) Interval (m) Cu (%) Mo (%) Au (g/t) CuEq (%) SLS-20 Apr 19, 2021 18 706 688 0.35 0.04 0.05 0.51 Including 18 384 366 0.44 0.04 0.04 0.60 SLS-18 78 875 797 0.62 0.05 0.06 0.83 Including 80 450 370 0.71 0.05 0.07 0.94 SLS-17 12 506 494 0.39 0.02 0.06 0.50 SLS-16 Mar 22, 2021 20 978 958 0.63 0.03 0.06 0.77 Including 358 844 486 0.70 0.03 0.07 0.84 SLS-15 2 1231 1229 0.48 0.01 0.04 0.56 Including 2 1004 1002 0.52 0.01 0.04 0.60 Including 2 696 694 0.57 0.02 0.05 0.67 SLS-14 0 922 922 0.79 0.03 0.08 0.94 Including 34 884 850 0.82 0.03 0.08 0.98 Including 52 836 784 0.84 0.03 0.09 1.00 SLS-13 Feb 22, 2021 6 468 462 0.80 0.04 0.09 1.00 SLS-12 22 758 736 0.59 0.03 0.07 0.74 SLS-11 6 694 688 0.39 0.04 0.05 0.57 SLS-10 2 602 600 0.83 0.02 0.12 1.00 Including 56 602 546 0.88 0.03 0.12 1.06 SLS-09 122 220 98 0.60 0.02 0.04 0.71 Including 122 168 46 0.96 0.03 0.05 1.09 SLSW-01 Feb 16, 2021 32 830 798 0.25 0.02 0.02 0.31 Including 32 292 260 0.35 0.01 0.02 0.42 SLS-08 Jan 14, 2021 134 588 454 0.51 0.03 0.03 0.62 Including 134 274 140 0.90 0.03 0.05 1.05 SLS-07 0 1067 1067 0.49 0.02 0.04 0.60 Including 2 702 700 0.58 0.03 0.04 0.70 SLS-06 Nov 23, 2020 8 892 884 0.50 0.03 0.04 0.62 SLS-05 18 936 918 0.43 0.01 0.04 0.50 Including 18 324 306 0.52 0.02 0.04 0.62 SLS-04 0 1004 1004 0.59 0.03 0.05 0.71 Including 0 824 824 0.64 0.03 0.05 0.77 SLS-03 Sep 28, 2020 4 1014 1010 0.59 0.02 0.10 0.71 Including 4 892 888 0.61 0.02 0.10 0.73 Including 176 892 716 0.63 0.02 0.10 0.75 SLS-02 0 660 660 0.79 0.03 0.10 0.97 Including 48 656 608 0.79 0.03 0.10 0.97 SLS-01 Aug 10, 2020 1 568 567 0.80 0.04 0.10 1.00 Including 48 492 446 0.88 0.04 0.10 1.09 Notes to table: Grades are uncut and true widths have not been determined. Hole ID Date Reported From (m) To (m) Interval (m) Cu (%) Mo (%) Au (g/t) CuEq (%) SLS-36 Nov 15, 2021 2 1082 1080 0.33 0.01 0.04 0.41 Including 46 336 290 0.67 0.03 0.08 0.81 SLS-35 48 968 920 0.53 0.02 0.04 0.62 Including 50 376 326 0.69 0.02 0.05 0.80 SLS-34 Oct 25, 2021 52 712 660 0.36 0.02 0.06 0.47 Including 52 294 242 0.51 0.03 0.08 0.67 SLS-33 40 762 722 0.55 0.03 0.05 0.69 Including 46 472 426 0.71 0.03 0.06 0.85 SLSE-02 0 1160 1160 0.20 0.01 0.04 0.25 Including 0 320 320 0.39 0.02 0.04 0.48 SLS-32 Oct 12, 2021 0 618 618 0.38 0.02 0.05 0.48 Including 46 418 372 0.53 0.02 0.06 0.64 SLS-31 8 1008 1000 0.68 0.02 0.07 0.81 Including 44 812 768 0.75 0.03 0.08 0.90 SLS-30 2 374 372 0.57 0.06 0.06 0.82 Including 42 306 264 0.72 0.06 0.07 0.97 SLSE-02 Sep 27, 2021 0 320 320 0.39 0.02 0.04 0.48 Including 0 62 62 0.59 0.01 0.06 0.68 SLSE-01 0 1213 1213 0.21 0.01 0.03 0.28 Including 0 396 396 0.33 0.02 0.04 0.42 SLS-29 Sep 7, 2021 6 1190 1184 0.58 0.02 0.05 0.68 Including 48 528 480 0.69 0.03 0.04 0.80 SLS-28 6 638 632 0.51 0.04 0.06 0.68 Including 42 358 316 0.81 0.04 0.09 1.00 SLS-27 22 484 462 0.70 0.04 0.08 0.91 Including 36 408 372 0.81 0.04 0.09 1.02 SLSE-01 Jul 20, 2021 0 320 320 0.36 0.02 0.05 0.46 Including 0 54 54 0.49 0.01 0.05 0.56 Including 162 216 54 0.60 0.02 0.04 0.70 SLS-26 Jul 7, 2021 2 1002 1000 0.51 0.02 0.04 0.60 Including 46 832 786 0.57 0.02 0.04 0.67 SLS-25 62 444 382 0.62 0.03 0.08 0.77 Including 62 292 230 0.87 0.04 0.10 1.06 SLS-24 10 962 952 0.53 0.02 0.04 0.62 Including 10 512 502 0.57 0.02 0.05 0.67 SLS-19 6 420 414 0.21 0.01 0.06 0.31 SLS-23 May 26, 2021 10 558 548 0.31 0.02 0.06 0.42 Including 10 362 352 0.34 0.02 0.06 0.46 SLS-22 86 324 238 0.52 0.03 0.06 0.68 Including 86 186 100 0.61 0.04 0.06 0.77 SLS-21 2 1031 1029 0.63 0.02 0.04 0.73 Including 2 422 420 0.72 0.02 0.05 0.83
- 32. 32 Detailed Drill Results (1)No adjustments were made for recovery as the project is an early-stage exploration project and metallurgical data to allow for estimation of recoveries is not yet available. Solaris defines copper equivalent calculation for reporting purposes only. Copper-equivalence calculated as: CuEq (%) = Cu (%) + 3.33 × Mo (%) + 0.73 × Au (g/t), utilizing metal prices of Cu - US$3.00/lb, Mo - US$10.00/lb and Au - US$1,500/oz. Collar Locations Hole ID Easting Northing Elevation (m) Depth (m) Azimuth (degrees) Dip (degrees) SLS-36 799765 9648033 1571 1088 97 -60 SLS-35 800124 9648044 1568 995 78 -60 SLS-34 800383 9648303 1412 1057 78 -60 SLS-33 799873 9648008 1632 764 0 -80 SLSE-02 801485 9648192 1170 1191 275 -50 SLS-32 800383 9648303 1422 831 0 -89 SLS-31 799765 9648033 1571 1025 97 -80 SLS-30 799667 9648029 1499 552 0 -65 SLSE-01 801485 9648192 1170 1213 260 -45 SLS-29 800124 9648035 1580 1190 80 -72 SLS-28 799765 9648033 1571 570 50 -75 SLS-27 799667 9648029 1499 588 45 -70 SLSE-01 801485 9648192 1170 1213 260 -45 SLS-26 800191 9648059 1580 1032 70 -60 SLS-25 799676 9648117 1443 513 220 -70 SLS-24 800124 9648035 1580 962 90 -75 SLS-23 799765 9648033 1571 570 270 -60 SLS-22 799676 9648117 1443 562 270 -60 SLS-21 800191 9648059 1580 1031 70 -70 SLS-20 800124 9648035 1580 816 0 -75 SLS-19 799667 9648029 1449 588 235 -80 SLS-18 799676 9648117 1443 875 100 -70 SLS-17 799765 9648033 1571 788 180 -80 SLS-16 800124 9648035 1580 1033 272 -77 SLS-15 800191 9648059 1580 1231 222 -80 SLS-14 799765 9648033 1571 1020 85 -80 SLS-13 799667 9648029 1499 468 0 -80 SLS-12 800124 9648035 1568 782 265 -62 SLS-11 800191 9648059 1570 860 280 -65 SLS-10 799765 9648033 1571 690 293 -77 SLS-09 800266 9648209 1493 500 0 -89 SLSW-01 798507 9648465 1519 993 320 -66 SLS-08 800253 9648105 1576 824 14 -80 SLS-07 800191 9648065 1580 1067 52 -80 SLS-06 800124 9648035 1580 1069 45 -79 SLS-05 800124 9648035 1580 1063 265 -81 SLS-04 800191 9648059 1580 1150 0 -88 SLS-03 800191 9648059 1570 1090 289 -79 SLS-02 799765 9648033 1571 744 0 -90 SLS-01 799765 9648033 1571 805 351 -80 Notes to table: The coordinates are in WGS84 17S Datum.
- 33. +1 416-366-5678 x.203 [email protected] InvestorRelations: Copper, Gold Growth and Discovery in the Americas