CORPORATE PRESENTATION JANUARY 2017
Developing one of the most critical metal
TSX-V: NBY 1
Forward Looking Statements This presentation contains certain forward-looking statements under the provisions of Canadian securities laws, as well as historical information. Forward-looking statements include, but is not limited to, statements relating to the Company's strategy, goals and objectives for its James Bay Project, targets and timetable for the exploration and development of the James Bay Niobium project, resource estimates, costs estimates, the potential demand and supply of niobium, and the price of niobium. Forward looking statements express, as of the date of this presentation, the Company’s plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks, uncertainties and other factors beyond the Company’s ability to control or predict, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks, uncertainties and other factors that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of metals, changes or delays in mining development and exploration plans, the timing of receipt of necessary permits or regulatory approvals for the Company’s exploration projects and other operations, uncertainty related to historical estimate of resources, uncertainty involved in interpreting geological data and future exploration results, environmental risks and hazards, uncertainty as to calculation of mineral resources, requirement of additional financing or additional permits, authorizations or licenses, risks of delays in construction and production and other risks referred to in the Company’s Annual Information Form. The Company does not assume any obligation, to update these forward-looking statements and information, except as required by law.
Claude Dufresne, P. Eng, acted as the qualified person as defined in National Instrument 43-101. He reviewed and approved the technical and scientific content of this presentation. Mr. Dufresne is the President and CEO of the Company. 2
Company Profile Listed on the TSX-V: NBY Developing one of the most critical metal: Niobium Owns 100% of the James Bay Niobium Project located in Ontario DIRECTORS & MANAGEMENT
STOCK INFORMATION
Symbol
NBY
Serge Savard
Chairman of the board
Exchange
TSX-V
Claude Dufresne
President & CEO
Market Cap
$29 M
Alain Krushnisky
CFO
Shares outstanding
32.7 M
Jean-Sébastien David
Director
52-week high
$1.25
Raymond Legault
Director
52-week low
$0.05
Jacques Bonneau
Director
Cash (Dec 31, 2016)
$2.3 M
Jean Rainville
Director
Carole Plante
Corporate Secretary
Updated January 25, 2017
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Population is on the Rise
Billions of people
For the first time in history, half of the world’s population is living in cities Population to reach 9 billions by 2050 10 9 8
Urban
7
Rural
6 5 4 3 2 1 0
Source: UN World Urbanization Prospects
4
Urbanization is Changing the World By 2050, two-thirds of the global population will live in urban areas
Source: UN World Urbanization Prospects
5
Steel is at the Core of Urbanization Steel is the material of choice for modern development Strong Ductile
Durable 100% Recyclable Cost Effective
Safe
6
Niobium an Undeniable Ally for Steel By adding it in steelmaking process Niobium improves steel properties Stronger Tougher
Lighter More flexible Easier to weld
Reduces GHG emissions
7
Niobium is Everywhere
Automotive
Bridges
(structure, body)
(beams, rods)
Stainless steel
Tools
(Exhaust)
High-rise buildings
O&G Pipelines
Aerospace (jet engine, rivets)
Medical
Electronics
(MR, implants)
(semiconductors)
Jewelry
8
Niobium a ‘green’ metal
5% liters/km economy
$10 of Niobium Mid-size vehicule
15,000 tons
0.02% of Niobium
$25M & 15,000 tons savings
Øresun bridge
9
Niobium Demand by Region
Europe & CIS North America
China
South Korea
Japan
India Africa & Middle East South America
2021 projected world consumtion
100 000 t FeNb Note: About 3,000 t are not included in the picture (other Asia & Australia)
Source: Camet Metallurgy Inc
10
Demand is Growing
g FeNb / t Steel
The amount of Niobium used per ton of steel is rising Niobium demand could double if China catches-up Crude Steel Production vs Niobium Intensity of Use, 2016
140
Americas
120 South Korea
100
Japan
Europe & CIS
80 60 40 20
China
India
0 0
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 000
900 000
Crude Steel Output (Mt) Note: Size is relative to total Niobium consumption
Source: Camet Metallurgy Inc
11
Global Supply Only 3 producers sharing global demand for over 40 years Key end-users rely 100% on imports
Niobec
Resources (M tonnes)
8%
Grade (%Nb2O5)
Recoverable Unit (kg Nb2O5/t milled)
75
39
+800
0.53
0.93
2.50
3.2
3.9
15
Araxa
80%
Catalao
11%
Source: Camet Metallurgy Inc
12
High Value Niobium Assets Recent M&A transactions reflect the appetite from Asian entities
2011-2012 :
$US 3.9B
30% Araxa mine
2014 :
$US 500M
100%
2016 :
$US 1.7B
100%
(5.6 x EBITDA) Niobec mine
(10.3 x EBITDA) Catalao + Phosphate mine
Source: Bloomberg
13
Niobium Prices are Stable
USD/kg Nb
Niobium is one of the only commodity which price remained fairly stable in recent years $50
World average FeNb price (converted in USD)
$45 $40 $35 $30 $25
Between 2006 and 2008, the price of ferroniobium increased to address what appeared to be a structural under-valuing of niobium. Up to that point, the strong growth in demand for ferroniobium had not been reflected in its price.
US dollar strength towards the Yen, Euro and Renminbi caused the reported price in USD to decline. Real prices in local currencies remained stable.
$20 $15 $10
Source: Camet Metallurgy Inc
14
Niobium Prices are Stable FeNb prices remained stable in local currencies
50 €
¥4 000
45 €
¥3 500
40 €
¥3 000
35 € 30 €
¥2 500
25 €
¥2 000
20 €
¥1 500
15 €
¥1 000
10 € 5€
¥500
0€
¥0
EU/CIS
Japan
15
James Bay Niobium Project Moose River, Moose Factory
Project Location James Bay Lowlands, Northeast Ontario, Canada
Moosonee
James Bay Niobium Detour Gold
40 km southeast of the town of Moosonee 110 km northwest of the Detour Gold mine
17
Infrastructures James Bay
Moosonee Rail (ONR)
Renison station
< 40 km James Bay Niobium
Crown Mining Lease
Wetum road
18
James Bay Niobium History Discovered in 1966 Historical estimate of 62Mt @ 0.52% Nb2O5 established by Bechtel Canada Ltd. in 19671 Open at depth
Major exploration work carried from 1967 to 1969 14,000 meters of drilling at an average depth of 170 meters in 85 holes, in sections of 61 meters intervals along a strike of 730 meters1 Exploration shaft (~130' ) & a 250' cross-cut
225Mt extracted for metallurgical testing (pilot plant)
Lakefield Research carried out metallurgical tests Overall recovery of 78%, very low impurities, and high grade concentrate1
Feasibility study completed by Bechtel Canada Ltd. in 1969
1: NioBay Metals has not yet undertaken the work necessary to verify or classify the historical estimates, the historical drilling and the metallurgical tests. Economic studies completed in the 1960s does not mean the James Bay Niobium deposit would be found to be economic today. NioBay Metals is not treating the historical results as a current mineral resource nor as having been verified by a qualified person.
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SECTION 8N
SECTION 00
Surface Plan
0.3-0.5% Nb2O5 0.5-0.9% Nb2O5
Inside red dash line: Unit 6 (red): Unit 5 (orange):
62 M tonnes @ 0.52% Nb2O51 High-grade zone 0.5 - 0.9% Nb2O51 Medium-grade zone 0.3 - 0.5% Nb2O51
1: NioBay Metals has not yet undertaken the work necessary to verify or classify the historical estimates, the historical drilling and the metallurgical tests. Economic studies completed *inHistorical resources estimate are not 43-101 compliant and are based on data obtained by previous operators in the 60's. MDN is not treating the historical the 1960s does not mean the James Bay Niobium deposit would be found to be economic today. NioBay Metals is not treating the historical results as a current mineral resource nor resources as NI 43-101 compliant nor as having been verified by a qualified person, and they should not be relied upon. as having been verified by a qualified person.
20
Section 00
0.3-0.5% Nb2O5 0.5-0.9% Nb2O5
1: NioBay Metals has not yet undertaken the work necessary to verify or classify the historical estimates, the historical drilling and the metallurgical tests. Economic studies completed in the 1960s does not mean the James Bay Niobium deposit would be found to be economic today. NioBay Metals is not treating the historical results as a current mineral resource nor as having been verified by a qualified person.
21
Strategy and Timeline NioBay’s objective is to penetrate the market with around 5% of the market share
Acquisition
43-101 Resource
Re-log and analyse Drilling
PFS release PEA release
2016
2017
DFS release
2018
Acquisition $8 million
Start construction
2019
2020
2021 Production
~C$20 million
22
Summary
Niobium is an essential strategic and critical metal in modern urbanisation
Reduce emissions of greenhouse gases Highly sought after assets Growing demand and stable prices Well located project near key infrastructures Aims to become the second producer in North America and the fourth in the world
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Developing one of the most critical metal
Claude Dufresne President & CEO
1693 St-Patrick Street, Suite 106, Montreal (Quebec), Canada, H3K 3G9 Tel: (514) 866-6500 www.niobaymetals.com