New Age Metals Inc V.NAM

PEA shows Capex is beyond reach and IRR is too low

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The PEA results were announced on June 27th, 2019 with the full report filed on August 7th, 2019.

• Life of mine (LOM) of 14 years, with 6 million tonnes annually of potential process plant feed at an average grade of 0.88 g/t Palladium Equivalent (PdEq) and process recovery rate of 80%, resulting in an annual average payable PdEq production of 119,000 ounces. Pre-Production capital requirements: (CAD)$495M, undiscounted cash flow before income and mining taxes of (CAD)$586M.

• Average unit operating cost of $19.50/tonne over the life-of-mine, a mining contractor will be engaged for the open pit mining.

• LOM average operating cash cost of $971 per ounce (US$709/oz) and all-in sustaining cash cost of (CAD)$972 per ounce (US$709/oz)

  at a 1.37 CDN: USD exchange rate. Pre-tax NPV (5%): $262M, After-tax NPV (5%): $138 M.

• Pre-tax IRR: 13%, After-tax IRR: 10%. Potential for up to 325 jobs at the peak of production.

• Assumed metal prices of US$1,200/oz Pd, US$1,050/oz Pt, US$1,350/oz Au, US$3.25/lb Cu, US$8.00/lb Ni, US$35/lb Co.

• Using a + 20% Pd price sensitivity (to the base case of US$1,200/oz Pd) US$1,440 /oz Pd returns a pre-tax IRR of 19% and an after tax-IRR of 15%. Palladium price as of June 25, 2019 is US$1,510/oz Pd, which would return a pre-tax IRR of 21% and an after-tax IRR of 16%.

• River Valley process plant feed will be treated by a conventional sulphide flotation process plant to produce a single saleable PGM concentrate that will be transported to the Sudbury area for smelting/refining.