Forward Looking Statements

May 2016 Forward Looking Statements The information in this document has been prepared as at May 18, 2016. Certain statements contained in this docu...
Author: Miles Small
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May 2016

Forward Looking Statements The information in this document has been prepared as at May 18, 2016. Certain statements contained in this document constitute “forwardlooking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking information under the provisions of Canadian provincial securities laws. When used in this document, the words “anticipate”, “expect”, “estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to identify forward‐looking statements or information. Such statements include without limitation: statements regarding timing and other assumptions; estimates of future resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future internal rates of return, mining costs, processing costs, cash costs, mine site costs and other expenses; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements and information as to the projected development of the Eco Ridge Mine, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with respect to the Company's Eco Ridge Mine project and statements and information regarding the sufficiency of the Company's cash resources. Such statements and information reflect the Company's views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or implied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices of rare earth oxides and uranium oxide and other metals; uncertainty of mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated with governmental and environmental regulation; the volatility of the Company's stock price; and other associated risks. The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information.

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Sustainable Development at Eco Ridge Pele’s Eco Ridge property has unique characteristics that make it a prime location for two development opportunities that are integral to the clean energy industry. Pele is advancing Eco Ridge as…



The proposed site of Canada’s first Rare Earth Processing Centre;



A potential site for a large-scale Solar Energy Power Project.

NI 43-101 resources continue to provide shareholders exposure & leverage to growing global demand for rare earths & uranium.

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Our New Chairman, Wayne Richardson •

President & CEO of Enirgi Group, a privatelyheld company that owns & operates a portfolio of world-class, long-life assets.



Since 2010, Enirgi Group has emerged as a leading provider of critical resources & innovative industrial processes.



Wayne has a track record of successful management and has the knowledge & expertise to advance Pele’s projects into production.

“Pele’s proposed rare earth processing operations and renewable energy project at Eco Ridge offer excellent development potential.” Wayne Richardson, Pele Chairman & CEO of Enirgi Group

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Eco Ridge Development Corporation Pele recently renamed its main operating subsidiary as Eco Ridge Development Corporation (ERDC).



The rebranding reflects growing international interest in project development at Eco Ridge.



Features organically-generated projects that support the clean energy industry.



ERDC is Chaired by Pele Director & former Ontario Cabinet Minister John Wilkinson. “John’s leadership, vision, and experience in the advancement of large-scale projects adds immense value as we progress toward development at Eco Ridge.” Al Shefsky, Pele President

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A Bold New Era for Pele Mountain The Pele team decided to move forward proactively rather than wait for a market rebound. With forward-thinking projects and an infusion of entrepreneurial spirit, Pele is embarking on a bold new era of growth. While still part of the junior resource industry, Pele is actively diversifying into the clean energy industry & its supply chains.

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An Ideal Development Property Eco Ridge is an ideal site for Pele’s projects, all of which can be developed concurrently.



within an historic Canadian mining camp



highly skilled workforce



outstanding regional infrastructure



enthusiastic community support



well-established regulatory pathway



extensive rare earth & uranium resources

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The Eco Ridge Land Package •

The Eco Ridge project is 100% owned by ERDC (Pele Mountain)



More than 8600 contiguous hectares



Combination of real estate & mineral rights tenures



394 mining claim units



Two Mining Leases with Province of Ontario



Lease of Surface Patents from the City of Elliot Lake

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Outstanding Regional Infrastructure Regional infrastructure includes…

• •

Ontario Provincial Hwy 108



230 kV transmission line traverses property for more than 13 km



natural gas lines & airport on neighboring property



nearby trans loading facilities & deep water ports



City of Elliot Lake, 10 km west

Trans-Canada Highway & railway, 15 km south

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Productive Local Relationships Pele has spent more than a decade rooting itself in the Elliot Lake community.



Letters of Support from Municipal, Provincial and Federal levels of Government.



Engaged with First Nations communities including Serpent River FN, Mississauga FN, Sagamok FN, and the Metis Nation of Ontario.



Corporate culture that embraces partnership, built on trust and seeking mutual benefit.

“The City welcomes and supports Pele’s plans for the sustainable development of a monazite processing operation to produce rare earths in Elliot Lake.” Dan Marchisella, Mayor of Elliot Lake

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Rare Earth Supply Risk •

High Demand: Rare earths are essential inputs in strategic applications, supporting annual total economic output of $330-billion & 618,000 jobs in North America.*



Uncertain supply: China’s production of rare earths is used primarily in value added processing & manufacturing inside China.



No substitutes: The unique electronic, optical & magnetic characteristics of rare earths cannot be matched by other metals or synthetic substitutes. * Source: Rare Earth Technology Alliance, April 2014

Source: U.S. Department of Energy

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Rare Earth Processing Centre at Eco Ridge PROBLEM… No sustainable rare earth production or supply chain in Canada.



China produces more than 90% of global rare earths (and 99% of heavy rare earths).



China has leveraged its industry position to incentivize downstream processors & manufacturers that use rare earths to build production facilities in China.



The massive decline in rare earth prices has not alleviated supply risk, but has actually increased it by discouraging the new production needed for longer term.

SOLUTION… Kick-start a Canadian rare earth supply chain by processing monazite.

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Why Monazite Processing? Market conditions have not supported construction of high CAPEX hard-rock mining projects, such as those proposed by Canada’s aspiring rare earth developers, including Pele. Benefits of monazite processing over hard-rock mine development include:



High rare earth grades in monazite allow for substantial production (especially magnet metals) from relatively low tonnage;



Low tonnage, processing-only operations sharply reduce CAPEX and time-to-market;



Metallurgical techniques are well-established, reducing technical risk, shortening rampup times, and supporting scalable, reliable production.

Historically, monazite processing has provided an important source of rare earths.

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Kick Starting a Canadian Rare Earth Supply Chain

Process monazite into rare earth concentrates - then separate into high-purity, individual oxides for downstream value-added manufacturing: a Canadian rare earth supply chain.

• • •

improves diversity of international supply; supports Canadian clean energy, high-tech, defense, and other strategic industries; can potentially add billions of dollars and thousands of jobs to the Canadian economy.

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Mineral Resources at Eco Ridge Uranium Oxide Classification

Tonnes

Indicated Inferred

Total REO

Pounds

ppm

Pounds

ppm

22,743,000

22,554,311

450

80,510,000

1,606

36,560,000

37,622,835

470

125,248,000

1,554

Source: Mineral Resource Estimate by Roscoe Postle Associates, June 2013. See Pele press release dated June 10, 2013 for details.

• •

Excellent expansion potential in drill-tested areas outside the defined resource.



Construction of a Rare Earth Processing Centre in Elliot Lake may support eventual mine development as market conditions improve.

Although not economic at today’s metal prices, Eco Ridge resources provides long-term optionality and proven leverage to uranium & rare earths.

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The Pele Team Wayne Richardson

Chairman of the Board; President & CEO of Enirgi Group

Al Shefsky

Pele Founder; President & Director since 1996

John Wilkinson

Director; ERDC Chairman; former Ontario Minister of Environment

Martin Cooper

Director; VP of Aboriginal Affairs; Professional Archaeologist

Peter Dimmell

Independent Director; 40+ years Professional Geologist; NI 43-101 QP

Richard Cooper

Independent Director; Professional Engineer & Businessman

Steve Rukavina

Director; Corporate Secretary; Partner at WeirFoulds LLP

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Why Invest in Pele Mountain? •

Unique development characteristics at Eco Ridge: location, infrastructure, etc.



Proposed site of Canada’s first Rare Earth Processing Centre



Potential for Renewable Energy and Energy Storage System Project



Strong management leadership with track record of successful development



Solid long-term relationships, excellent community support



Demonstrated leverage to growing global demand for rare earths & uranium

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