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A Copper-Gold Producer in the Making 100% owned North Island Project on Vancouver Island in British Columbia, Canada February 2018
A Copper-Gold Producer
in the Making
100% owned North Island Project on
Vancouver Island in British Columbia, Canada
February 2018
TSXV: NCX 2
Northisle Investment Case
Large 33,149 hectare project in British Columbia covering an entire porphyry copper belt
Preliminary Economic Evaluation of Hushamu-Red Dog Deposits shows robust economics:
CND$ 552 million after tax NPV 8% ;
After tax IRR 14.3%;
Potential to significantly improve economics by:
Using existing infrastructure at now closed BHP mine site
Improved metallurgical recoveries
Potential to recover Rhenium
Optimizing production rate
Expanding Hushamu resource
Excellent infrastructure
Adjacent to BHP’s Past Producing Island Copper Mine;
BC power grid and Deep Sea Loading Facility;
Road Access;
Multiple additional under-explored porphyry occurrences including Pemberton Hills and NW Expo;
• Freeport earning in on Pemberton Hills Target – drilling in 2018
Resource community that understands mining.
TSXV: NCX 3
Northisle Company Snapshot
Company Overview Capital Structure(November 30, 2017)
Project Location 1 Year Share Price
Head Office Vancouver, Canada
Project Hushamu located in Port Hardy, Canada
Ownership 100%
Stage PEA
ResourceM&I: 2.1 B lbs Cu, 3.4 M oz Au & 66M lbs Mo
Inf: 0.6 B lbs Cu, 0.9M oz Au & 19M lbs Mo
Economics(1) NPV8% of C$ 550.4m and IRR 14.3%
1. Commodity prices used in the PEA are as follows: US$ 3.10/lb Cu, US$ 1,300/oz Au, US$ 9.00/lb Mo, US$ 9/t Py con, US$:C$ 0.75x
Listing TSXV – NCX
Share 114.5 M shares
Market Cap. C$ 11.5 M
Options &
Warrants
7.7 M options,
5.9 M warrants avg price $0.16
Cash C$ 450 K
Debt None
Covers a 50km porphyry
belt
Two deposits and multiple
exploration targets
TSXV: NCX 4
Board of Directors
Dale Corman B.Sc, P.Eng, Chairman
40 years experience as a senior corporate officer of publicly listed companies.
Extensive expertise in mineral exploration & development, financing, property
evaluation and acquisition. Currently Executive Chairman of Western Copper and
Gold Corporation.
Jack McClintock MBA, P.Eng Director,
President and CEO
30 years experience in all facets of the mineral exploration business and
formerly Exploration Manager for BHP Billiton.
Martino De CiccioCFA, Director
Over 10 years in the mining industry with a track record of significant value creation.
Currently VP Strategy & Investor Relations at Endeavour Mining since 2015. Prior to
Endeavour, held the position of Strategy and Business Development Manager at La
Mancha Resources.
David Douglas CA, Director and CFO
Chartered Accountant with over 30 years of experience in the accounting, corporate
finance, and mining industries. He has participated in the sale or financing of over 30
private and public enterprises with a combined value
of over $300 million.
Brandon Macdonald B.Sc., MBA, Director
Over 20 years in the mining industry with experience in field geology, investment
banking, and company management.
Larry YauCA, Director
20 years of financial and business experience, gained primarily in the mining and
resources sectors. Most recently served as CFRO for two junior mining companies
where he was heavily involved in raising capital and the successful construction of
mines in North America. Previously was Manager, Corporate Development, at Placer
Dome Inc. until its acquisition by Barrick Gold Corp.
The right mix of exploration, engineering and finance…
TSXV: NCX 5
History of Hushamu
Northisle has significantly improved the project since 2011
Consensus Investment Community perception in 2011 was Hushamu deposit too smalland lacked near surface, high-grade starter pit to be economic
Northisle’s work since 2011 has corrected this wrong perception by:
Re logging and properly interpretation of geology in 2011 showed deposit was openin multiple direction
Drilling in 2012 through 2014 found extensions and increased tonnage of indicatedmineralization from 250 Mt to current indicated resource of 370 Mt
Acquired nearby Red Dog project in 2015 for initial starter pit. Red Dog depositgrade higher by 50% than Hushamu and has a 0.15 to 1 strip ratio
Drilling in 2017 demonstrated:
That Hushamu deposit remains open for 300 m southeast of ultimate pit limitused in PEA and deposit could be significantly larger
A previously supposed 300 m diameter, under drilled barren area in thesouthern part of the Hushamu has significant sections of above cut-off grademineralization. This potentially could decrease the strip ratio and add to theresource base
TSXV: NCX 6
Summary Economics
After Tax Base Case Spot Price
NPV8% C$ 550.4m C $549.0
IRR 14.3% 14.3%
Payback 5.1 years 5.1 years
C1 Cash Cost(1) US$ 0.88/lb Cu C1 Cash Cost(1) US$ 542/oz
Capital Cost C$ 1,344m Sustaining Capital C$139.0m
C$ 550.4m 14.3%NPV8% After-tax IRR After-tax
5.1 Years
Payback After-tax
1. Commodity prices used in the PEA are as follows: US$ 3.10/lb Cu, US$ 1,300/oz Au, US$ 9.00/lb Mo, US$ 86/t Py con, US$:C$ 0.75x
2. Spot prices US$ 3.12/lb Cu, US$ 1,333/oz Au, US$ 7.14/lb Mo, US$ 86/t Py con, US$:C$ 0.75x
Base Case Robust Economics…
The Preliminary Economic Assessment (“PEA”) is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic
considerations applied to them that would allow them to be categorized as mineral reserves and there is no certainty that the preliminary economic assessment will be realized.
TSXV: NCX 7
Economics – Base Case
Financial Parameters Production Parameters
Capital Cost C$ $1,344 Mine Life Years 22
Sustaining C$ $139 Cu M lb pa 82
Operation Cost per
TonneC$M $8.66 Au Koz
79
After-tax Net Revenue C$M $2,350 Mo M lb pa 3
After Tax NPV8%(1) C$M $550.4 Py Concentrate ktpa 0.64
After Tax IRR % 14.3% C1 Cash Costs US$/lb0.88
Metal Prices
Cu US$/lb 3.10 Mining Inventory Mt600
Au US$/oz 1,300 Cu Grade %0.18%
Mo US$/oz $9.00 Au Grade %0.24
Py Concentrate US$/t $86 Mo Grade %0.008%
Exchange Rate x 0.75 Py Grade %9%
A material amount of metal production at a low-cost of production
1. Commodity prices used in the PEA are as follows: US$ 3.10/lb Cu, US$ 1,300/oz Au, US$ 9.00/lb Mo, US$ 9/t Py con, US$:C$ 0.75x
TSXV: NCX 8
Opportunities to Improve Economics
I. Improve gold recoveries through additional flotation metallurgical testing (higher revenue per tonne)
II. Demonstrate potential for rhenium credits in the Mo concentrate through metallurgical flotation testing (rhenium could contribute the same as Mo revenue)
III. Using BHP pit located 30 km away for waste disposal via slurry pipeline (it would both decrease initial capital and sustaining capital)
IV. Optimize production rate: if going to 85ktpa or 90ktpa throughput (further economies of scale)
V. Brownfields expansion of Hushamu resource: the deposit is open to the southeast (potentially expand the deposit by up to 300m)
VI. A previously supposed 300 metre diameter low grade to barren area in the south of the deposit was found by 2017 drilling to have significant intervals above cut-off grade (further decrease strip ratio)
Low-risk value enhancements likely to further improve economics
TSXV: NCX 9
Comparable Projects IRR’s
Project
IRR
After-
tax
Cu
US$/lb
Au
US$/oz
Mo
US$/lb
Northisle 14.3% $3.10 $1,300 $9.00
Seabridge 8% $3.45 $1,320 $15.00
Shaft Creek 8% $3.25 $1,445 $14.64
Blackwater 9.3% na $1,300 na
Ajax 11.1% $3.21 $1,200 na
Ann Maison 13.7% $3.00 na $11.00
Pumpkin
Hollow15.6% $3.15 $1,200 na
Rose Mount 15.5% $3.00 na $11.00
Casino 20.8% $2.85 $1,260 $7.00
Average 12.9% $3.12 $1289 $11.27
Hushamu PEA compares favorable with other regional deposits
Expected IRR at NCX’s Projectcompares well with other NorthAmerican projects due to anumber of factors:
− Low-strip ratio 0.72:1 with potential tofurther reduce with exploration byconverting barren and low-grade areasto the resource category
− Near brownfields developmentopportunity with existing infrastructureincluding ports, power, town andairport equals low execution risk andsignificantly lower capital cost
− Local communities that understandand support mining
Compiled from the best of the Company’s knowledge as of August 2017
TSXV: NCX 10
Comparable Resources at Operating British Columbian Mines
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
Mt P
olle
y
Hu
cklb
err
y
Co
pp
er
Mtn
.
Mt M
illig
an
Gib
ralta
r
*Hush
am
u
%
Copper %
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
Mt P
olle
y
Hu
cklb
err
y
Co
pp
er
Mtn
.
Mt M
illig
an
Gib
ralta
r
*Hush
am
u
g/t
Gold%
0
0.1
0.2
0.3
0.4
0.5
0.6
Mt P
olle
y
Hu
cklb
err
y
Co
pp
er
Mtn
.
Mt M
illig
an
Gib
ralta
r
*Hush
am
u
Cu
Eq
%
Copper equivalent %
Comparable Operating Mines
Hushamu Deposit
Grades compare well with current operating mines in BC
(Based on Cu Eq at $2.50, $1,100 Au, $14 Mo)
TSXV: NCX 11
Simple and straight forward mining
Power Supply via a new, 30 kmlong 138 KV overhead line from theexisting BC Hydro sub-station nearPort Hardy
Process water supply from contactwater from pit & WSF and potablewater from wells
Concentrate receiving, storage, andloadout to ships at a facility to bedeveloped by a third party on thesite of former Island Copper marineterminal. Approximate concentratehaul distance is 27 km
Base case is for 55/45 LNG/dieselfuel mixture for haulage fleet using227 tonne trucks
Cross Section of Hushamu
Cross Section of Red Dog
TSXV: NCX 12
Conventional floatation
Single grinding lineconsisting of a 40 ft.diameter SAG mill with 23MW drive, and two – 28 ft.diameter ball mills with 20MW drives
Sub-aqueous co-disposalof mine waste and tailingsin a single waste storagefacility (WSF)
Bulk concentrate isseparated in to copper-gold, molybdenum andpyrite
LOM recoveries for copper78%, gold 38% and moly60%
Hushamu’s flowsheet will be a straight forward floatation
TSXV: NCX 13
Exploration Upside
New Deposit
Discovery
Hushamu
Expansion
It is still early stage in terms of exploration…
Expansion of Hushamu Resource
− Deposit open for 300m to southeast for major expansion
− Previously supposed barren zone in poorly drilled southern partdetermined by 2017 infill drilling to have long sections ofmineralization above cut-off grade. If confirmed will convert wastearea to mineralization
Multiple Additional targets for copper-gold porphyrydeposits including:
− Pemberton Hills: 3.5 by 1.5 high-level intense alteration zone withdeepest hole ending in 0.14% copper
− Northwest Expo: 1.5 km open IP anomaly, partially tested with 3holes all in copper – gold mineralization
− Red Dog South: 1.2 by 0.8km high-level porphyry alteration withshallow holes showing increasing copper and gold with depth
TSXV: NCX 14Deposit open to southeast
Hushamu Resource Upside
Cross Section
Deposit
remains open
to the SE
Previously assumed
barren zone, 2017
drilling shows above
cut-off grade between
historical vertical
holes
1. Deposit Expansion to southeast
2. Converting supposed waste to mineralization
TSXV: NCX 15
Potential for New Discoveries
Deep Red Dog
Target
TSXV: NCX 16
Freeport - McMoran Earn-in
Freeport can earn up to a 65% interest in the Pemberton Hills target area by:
• Spending $4 million on exploration over 3 years to earn 49%;
• Upon earning its 49% interest, Freeport has a one time option to increase its interest to 65% by spending a further $20 million on the project over 4 years;
• Northisle is the operator in during the initial earn-in period.
TSXV: NCX 17
Pemberton Hills Targets
High level alteration indicative of underlying copper porphyry deposit
3.5 by 1.5km area
of high-level Silicification
and Advanced Argillic
Alteration
Deep hole ends in
0.14% Cu
Untested by drilling
Small portion surveyed by
IP is open to South
Silicification
Open IP
Anomaly
Silicification
Area of high-level
porphyry alteration:
Hole ended in
0.14% copper
TSXV: NCX 18
North West Expo Targets
Soil and rock sampling indicates Red Dog zone continues to IP anomaly
Historical Red
Dog Resource(open to NW)
Hole
abandoned in
Overburden
Untested IP
Anomaly >15mv/v
0.12%Cu &
0.09gpt Au / 176m
Mineralized drill
hole
Non mineralized or
abandoned hole
0.16% Cu & 0.14gpt Au / 61m
Scale2 Km0 Km
Slide
Zone
TSXV: NCX 19
Deep Red Dog Target
Current
Resource
High Level
Alteration
Indicates Buried
Deposit at Depth
Red Dog Alteration Map
TSXV: NCX 20
Cautionary Disclaimer Regarding Forward-Looking Statements and Information
Certain of the statements and information in this press release constitute “forward-looking statements” within the
meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information”
within the meaning of applicable Canadian securities laws. Forward-looking statements and information generally
express predictions, expectations, beliefs, plans, projections, or assumptions of future events or performance and do
not constitute historical fact. Forward-looking statements and information tend to include words such as “may,”
“expects,” “anticipates,” “believes,” “targets,” “forecasts,” “schedules,” “goals,” “budgets,” or similar terminology.
Forward-looking statements and information herein include, but are not limited to, statements with respect to the
completion of the Proposed Arrangement and the expected structure thereof; anticipated shareholder, court and
regulatory approvals; and the expected timing of closing of the Arrangement. All forward-looking statements and
information are based on NorthIsle’s or its consultants' current beliefs as well as various assumptions made by and
information currently available to them. These assumptions include, without limitation that shareholder and court
approvals to the Proposed Arrangement will be obtained in a timely manner, and that regulatory approvals will be
available on acceptable terms. Although management considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect. Forward-looking statements and information are
inherently subject to significant business, economic, and competitive uncertainties and contingencies and are
subject to important risk factors and uncertainties, both known and unknown, that are beyond NorthIsle’s ability to
control or predict. Actual results and future events could differ materially from those anticipated in forward-looking
statements and information. Examples of potential risks are set forth in Northisle's annual report most recently filed
with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators as of the date of
this press release. Accordingly, readers should not place undue reliance on forward-looking statements or
information. NorthIsle expressly disclaims any intention or obligation to update or revise any forward-looking
statements and information whether as a result of new information, future events or otherwise, except as otherwise
required by applicable securities legislation.
John McClintock, P Eng. is the Qualified person responsible for the technical content of this presentation
TSXV: NCX 21
Combined Hushamu and Red Dog Resource
TOTAL INDICATED CONTAINED METAL
Cut-off
(%Cu) Tonnes %Cu ppm Au %Mo ppm Re Copper B lbs Gold M oz Mo M lbs Re Kgx1000
0.15 341,600,000 0.24 0.30 0.008 0.482 1.83 3.3 67.3 164.7
TOTAL INFERRED CONTAINED METAL
Cut-off
(%Cu) Tonnes %Cu ppm Au %Mo ppm Re Copper B lbs Gold M oz Mo M lbs Re Kgx1000
0.15 147,700,000 0.18 0.23 0.006 0.34 0.59 1.1 19.5 49.9
Indicated Resourceo Copper: 1.83 Billion lb
o Gold: 3.3 Million oz
o Molybdenum: 67.3 Million lb
TSXV: NCX 22
www.northisle.ca
T: 604-638-2515
F: 604-669-2926
15th Floor – 1040 West Georgia Street
Vancouver, BC V6E 4H1
