AMR Presentation web February 2019 EN - AM Resources · • 2018 - twelve-month revenues increased...

AM Resources (TSXV: AMR)www.am-resources.com

Corporate PresentationFebruary 2019

Forward-Looking Statements

AM Resources (TSXV: AMR) www.am-resources.com 2

This presentation contains certain “forward-looking statements”, including, but not limited to, statements regarding the Corporation’s strategicplans, timetables, the evolution of mineral reserves and resources, mine operating costs, capital expenditures, work programs, developmentplans, exploration programs, objectives, budgets and the possible determination of additional reserves. Forward-looking statements express,at this date, the Corporation’s plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-lookingstatements involve a number of risks and uncertainties, 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 and uncertainties that couldcause 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, mining industry risks, exploration risks, environmentalrisks and hazards, uncertainty as to calculation of mineral reserves, requirement of additional financing or additional permits, authorizations orlicenses, and risks of delays in construction and production.

The scientific and technical content of this presentation has been reviewed and approved by Pierre O’Dowd, P. Geo., a qualified person asdefined by NI 43-101.

• AM Resources (TSXV: AMR) is a diversified mining company involved in the acquisition, development and production of mineral properties in Colombia:

§ Growing producer of coal used by local thermal power plants§ Development of asphaltite projects geared towards local and export markets§ Development of gold projects

• The Company aims at improving its operations to generate cash flows for the benefit of its shareholders.

Profile


• Fifth-largest exporter of coal in the world: Colombia produced 89.4 million tonnes in 2017. Furthermore, 94% of its coal is high quality, classified as “hard”, with high heat-generating capacity.

• One of the largest producers of biodiesel, reaching 513,000 tonnes in 2015.

• Fifth-largest gold producer in Latin America (18th producer worldwide), with 42 tonnes in 2017.

Colombia - Mining and Energy


> Mining-friendly jurisdiction

> Strong discovery potential

An established world producer

A Growing Company


Financial resultsPeriod ended September 30, 2018(In Canadian dollars)

Q3 2018 Q3 2017 9M 2018 9M 2017

Coal sales 231,765 179,339 1,068,343 425,769Transportation services 149,159 130,414 798,693 299,567Other 3,038 122 5,017 1,192

Total revenues 383,962 309,875 1,872,053 726,528

Net loss (339,560) (42,206) (3,967,111) (211,766)

• 2018 - twelve-month revenues increased 250% to $2.8 million, compared to $0.8 million a year earlier.

• 9M 2018 net loss of $4.0 million mainly due to non-recurring $2.9 million reverse takeover listing fees in Q2 2018.

Main Projects


Rio Negro(asphaltite)

Mico(gold)

Mina Luz(coal)

Mina Luz (coal)The Company owns 80% of the property mining rights, which consist of a mining concession covering 40 hectares. The property lies southwest of Popayan and 150 km southwest of Cali.

Esperanza (asphaltite)The Company owns 60% of the Esperanza asphaltite property, which covers 298 hectares. The property lies 70 km north-northwest of Bucaramanga. * The acquisition of the property is subject to shareholder approval at the next annual meeting scheduled for March 29, 2019.

Rio Negro (asphaltite)The Company owns 60% of the Rio Negro asphaltite property, which covers 97.5 hectares. The property lies 50 km north-northwest of Bucaramanga.* The 60% interest is conditional upon the payment of $100,000 to the current Colombian owner of the property.

Mico (gold)The Company owns a 60% interest in the Mico property, which consists of one concession covering 10.4 hectares. The property is easily accessible from the village of Barranco de Loba. Furthermore, the Company has filed an application to acquire an additional 6,000 hectares.

Esperanza(asphaltite)

• The Company generated revenues of $1,068,343 from coal sales for the first nine months of 2018, compared to $425,769 a year earlier.

• Coal sales are based on a production rate of about 1,000 tonnes per month from the Mina Luz property and the purchase of 2,000 tonnes of coal for resale, for a total of approximately 3,000 tonnes.

• The goal is to increase the Mina Luz production rate to 3,000 tonnes per month by modernizing its operations.

• The Company will then increase its production rate to 5,000 tonnes per month by completing a Programa de Trabajos y Obras (PTO) to obtain the required permit.

Mina Luz (Coal)


Mining activity

• The Company was prompted to invest in asphaltite projects by Colombia’s 4G program, which provides for the construction of more than 4,400 miles of new roads, 141 tunnels and 1,300 viaducts. The program was endorsed by the new government elected in May 2018.

• Esperanza property has the advantage of having an open pit mining license.

• Production at La Tigra, Esperanza’s neighbour, is estimated at about 3,000 tonnes per month.

• The Company recently shipped three containers of asphaltite to several potential customers overseas for test marketing purposes.

Esperanza (Asphaltite)


• First delivery of 8 tonnes of asphaltite to a major Colombian construction company, which will assess the suitability of the ore for its future needs. If the results are positive, the Company expects to receive other orders.

• Target markets: Local and North American construction companies.

• Production expected to start in two months.

Rio Negro (Asphaltite)


• Located within the Serrania San Lucas, a geological environment well known for its orogenic gold potential, host to a vein-type gold system within volcanic rocks, close to the Norosi batholith.

• North-northeast striking, steeply dipping decimetre-size veins and veinlet stockwork with grades ranging from 10 to 30 g/t Au have apparently been found in the past.

• Work required to confirm the Mico property’s potential:

§ Ground geophysics survey§ Drilling§ Mine plan

Mico (Gold)


• The Company is currently in the final stages of acquiring a USC machine capable of converting coal into diesel #2.

• The transaction would be a game changer for the Company, as diesel #2 prices are considerably higher than coal prices.

• The financing option chosen to acquire the machine will be leasing, which does not require any share dilution for the Company.

Purchase of USC machine


Shares outstanding: 56,899,642(22,632,735 shares escrowed until May 2021)

Management holds 59.5% of the outstanding shares

Stock options:(average exercise price: $0.17) 1,950,000

Warrants:(average exercise price: $0.23) 590,230

Fully diluted shares: 59,439,872Share price:(February 7, 2019) $0.19

High-Low:(Since listing on May 15, 2018) $0.305 – $0.115

Cash on hand: $800,000

Capital Structure


• Dominic VoyerPresident and Chief Executive Officer

• Adriana Rios GarciaChief Operating Officer

• Martin Nicoletti, CPA, CGAChief Financial Officer and Corporate Secretary

Management Team and Board

BOARD OF DIRECTORS

• Dominic Voyer• Adriana Rios Garcia• Diego Fernando Barragan • David Grondin• Wayne Isaacs


• Increase Mina Luz coal production to 3,000 tons within the next 12 months.

• Win contracts to supply asphaltite to local and international companies and increase production from Esperanza and Rio Negro properties.

• Acquire additional properties that will enable the Company to expand its coal, asphaltite and gold activities.

• Complete the acquisition of a USC machine, which will be a game changer for the Company.

Next Steps


Add Picture or Map (will use stock photo if none)

Mico(gold)

Mina Luz(coal)

Esperanza(asphaltite)

Rio Negro(asphaltite)

Dominic VoyerPresident and CEO+1 514 360-0576+1 844 [email protected]

Contact

Head Office500 Place d’ArmesSuite 1800Montreal, QC CanadaH2Y 2W2


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