Oroco Resource Corp V.OCO

Teck and Agnico-Eagle Form JV @ San Nicolas

[Copperking102]

San Nicols Project Highlights

• Located in Zacatecas, a major mining state in Mexico, with significant geological potential and numerous poly-metallic and precious metals opportunities. In addition, Zacatecas has excellent access to infrastructure and a skilled workforce
• San Nicols is the largest undeveloped volcanic-hosted massive sulfide deposit ("VHMS") deposit in Mexico and is one of the largest undeveloped VHMS deposits globally. As at December 31, 2021, Teck estimated San Nicols to contain 105.2 million tonnes of proven and probable mineral reserves at average grades of 1.12% copper, 1.48% zinc, 0.4 g/t gold and 22 g/t silver, or more than 2.0% on a copper equivalent basis
• Prefeasibility study completed by Teck in March 2021 describes attractive economics and project parameters:
  • The project contemplates a modern truck-and-shovel open pit, processing, and flotation operation
  • First production expected in 2026, with an estimated mine life of 15 years and meaningful potential for mine life extension and regional exploration upside
  • Expected to produce 63 thousand tonnes per annum (ktpa) of copper and 147 ktpa of zinc in concentrate over its first five years of production
  • Average life of mine head grades of 1.13% copper and 1.49% zinc
  • Average C1 operating costs of US$(0.16)/lb copper and US$0.44/lb copper over the first five years of production and life of mine, respectively, net of by-products
  • US$842 million development capital cost estimate
  • 2.6 year payback and 33% after-tax Internal Rate of Return (IRR) based on US$3.50/lb copper and US$1.15/lb zinc

[Copperking102]

Transaction Highlights Agnico Eagle will subscribe for US$580 million of MSN shares, giving Agnico Eagle a 50% interest in MSN.  The subscription proceeds received from Agnico Eagle will be used by MSN to fund the first US$580 million of post-closing costs with subsequent funding to be contributed according to each partner's ownership percentage.  Agnico

[Copperking102]

So I'm looking at this JV and trying to establish a value from this project to what we're building. The partnership decided that the property is worth $580 million, each contributing $290 mill to that end. For that, they own 105 million tons, graded @ 2%. So I that means every ton values out at $5.51....if you devide that by 4 you get the grade down to .5 or $1.37 per ton. So with the most