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Karmin Exploration Inc.
PDAC Presentation March 4, 2013 KAR:TSX-V & BVLima
n zinc-lead-copper-silver resources in Brazil n gold in Peru & Brazil
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Forward Looking Statements Certain statements in this presentation may constitute "forward-looking statements” that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Karmin or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements reflect our current beliefs and are based on information currently available to us and on the assumptions Karmin believes are reasonable. Actual results and developments may differ materially from results and developments discussed in the forward-looking statements.
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Corporate Essentials Exchange TSX-V &
BVLima Trading symbol KAR Shares outstanding 60,051,083 Share price 28Feb13 $0.295 Market Capitalization $18 million Karr Securities & directors 30% Alberto Arias Davila 25% Dutch shareholders 7% Other Peru Shareholders 5%
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n Larry Ciccarelli, Chairman ¨ mining executive (former Chairman & Founder of GlobeStar Mining)
n David Brace, CEO & Director ¨ geologist (former CEO & director, GlobeStar Mining)
n Richard Faucher, Compensation Chair ¨ metallurgist (former director, GlobeStar Mining)
n Ed Guimaraes C.A., Audit Chair ¨ finance executive (former Executive VP & CFO Aur Resources)
n Terry Ortslan, Governance Chair ¨ mining engineer & analyst (former director, GlobeStar Mining)
n Dr. Luis Rodríguez-Mariátegui, Director ¨ lawyer (partner at Hernández & Cía. Abogados, Lima, Peru)
n John Iannozzi C.A., CFO ¨ business executive (former director, GlobeStar Mining)
Board of Directors & Management
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Aripuanã Zinc
n 4 drill rigs & 20,000 m of infill & metallurgical drilling in 2012
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n Very large massive sulphide system ¨ 19.1 million tonne resource (measured & indicated) ¨ 14.7 million tonne resource (inferred)
Aripuanã Zinc - highlights
Measured & Indicated
Inferred
Zinc 1.6 billion lbs. 1.5 billion lbs.
Lead 584 million lbs. 536 million lbs.
Copper 125 million lbs. 93 million lbs.
Gold 153,000 oz. 181,000 oz.
Silver 22,018,000 oz. 8,560,000 oz.
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n Higher grade near surface resources at Arex ¨ Stratabound (measured & indicated)
n 7.13% zinc n 2.47% lead n 67 g/t silver
¨ Stringer (measured & indicated)
n 2.11% copper n 0.97 g/t gold n 22 g/t silver
Aripuanã Zinc - highlights
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n 30% Karmin / 70% Votorantim ¨ Karmin is not required to contribute funds
until a bankable feasibility study has been completed
n Votorantim; 2011 ¨ Private Brazilian company ¨ Revenues US$12 billion ¨ EBITDA US$ 3 billion ¨ Zinc production; 730,000 tonnes / year ¨ 3 zinc smelters
Aripuanã Zinc
Aripuanã Zinc
n located in Mato Grosso State, Brazil
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Rio Orinoco
Amazon
Amazon
Rio
Mam
ore
Rio Negro
Rio
Pur
us
Rio
Ben
i
Rio U
cayali
Rio T
apaj
os
Rio
Xin
gu
Rio
Ara
guai
a
Rio Paranaiba
Rio
Para
guay
Paran
a
Rio
Para
na
Rio Grande
Rio
Sao
Fra
ncis
co
Rio
Toca
ntin
s
RioM
adeira
Rio
TelesP
ires
Rio
Juru
ena
Rio
SOUTH
PACIFIC
OCEAN
SOUTH
ATLANTIC
OCEAN
NORTH
ATLANTIC
OCEAN
Equator
Lago
Titacaca
SantaMarta Maracaibo
San Cristobal
Bucaramango
ValenciaBarcelona
Maturin
New Amsterdam
Oiapoque
Careiro
Itaituba
Santarem
Altamira
Cachimbo
Humaita
Boca doAcre
Iquitos
Cruzeiro do Sul
QuillabambaCusco
Guajara-Mirim
Cochabamba
Santa Cruz
CaceresRondonopolis
Barreiras
Vitoria daConquista
Ilheus
Juazeiro
Uberlandia
Santos
Sao Francisco do Sul
Foz do Iguacu
PontaPora
Corumba
Potosi
San Miguelde Tucuman
Mendoza
Colonia
Rio Grande
Mar del Plata
Bahia Bianca
Concepcion
Valparaiso
CordobaSanta Fe
Rosario
La Plata
Resistencia
Ciudaddel Este
Pedro Juan Caballero
Salta
Antofagasta
IquiquePanorama
Santa Fedo Sul
Puerto SuarezSucreOruro
Matarani
Arequipa
IloTacna
Arica
Inapari Guayaramerin
Salgueiro
Picos
Leticia
Puerto Carreno
CucutaCiudad Bolivar
Santa Elenade Uairen
Barquisimeto
BenjaminConstant
Assis Brasil
SantaMaria
Sao Luis
Teresina
Palmas
Goiania
BeloHorizonte
Vitoria
Rio de Janeiro
Curitiba
Florianopolis
Porto Alegre
SaoPaulo
Cuiaba
CampoGrande
Fortaleza
Natal
Recife
Maceio
Aracaju
Salvador
JoaoPessoa
Belem
Macapa
Manaus
PortoVelhoRio Branco
Boa Vista
Parnaiba
Maraba
Carajas
Araguaina
Bogota
CaracasPort-of-Spain
Paramaribo
Georgetown
Cayenne
Brasilia
La Paz
Asuncion
Santiago Buenos Aires
Montevideo
COLOMBIA
VENEZUELAGUYANA
SURINAMEFrenchGuiana(FRANCE)
PERU
BOLIVIA
PARAGUAY
ARGENTINACHILE
URUGUAY
TRINIDAD AND
TOBAGO
BRAZIL
AMAZONAS
ACRE
RONDONIA
AMAPA
PARA
MARANHAO
CEARARIO GRANDEDO NORTE
PARAIBA
ALAGOAS
PERNAMBUCO
SERGIPEBAHIA
ESPIRITOSANTO
RIO DEJANEIRO
PIAUI
TOCANTINS
MATOGROSSO
MATOGROSSODO SUL
SANTACATARINA
RIO GRANDEDO SUL
MINASGERAIS
SAOPAULO
GOIAS
DISTRITOFEDERAL
PARANA
The islands of Trinidade, Martin Vaz,Arquipelago de Fernando de Noronha,Atol das Rocas, and Penedos de SaoPedro a Sao Paulo are not shown.
Trinidade and Martin Vaz are administered byEspirito Santo; Arquipelago de Fernando deNoronha by Pernambuco.
70° 60° 50° 40°
10°
0°
10°
20°
30°
30°40°50°60°70°
30°
20°
10°
10°
0°
ARIPUANÃ ZINC PROJECT
International Boundary
Legend:
National Capital
State Boundary
Road
Railway
State Capital
0
0
200
200
400 Kilometres
400 Miles
N
January 2013
Location Map
Aripuanã Zinc Project
Karmin Exploration Inc.
Mato Grosso State, Brazil
Figure 4-1
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www.rpacan.com
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n Very large land position
n 820 km2
Aripuanã Zinc - Mineral Rights
59°30'W 59°10'W
10°00'W
59°20'W59°40'W
10°00'W
10°00'W
10°00'W
10°00'W
10°00'W
59°30'W 59°10'W59°20'W59°40'W
Final Report Submitted (Waiting for Approval)
Status:
Legend:
Mining Application Submitted
Mining Application Postponed
Negative Report Submitted (Maintenence Strategy)
Valid Exploration Permit
Waiting for Exploration Permit
Waiting for Exploration Permit Renewal
Aripuana City
Drainages
Federal Highways
State Highways
Secondary Roads
0 5
Kilometres
10 15 20
N
January 2013 Source: Karmin Exploration Inc., 2012.
Mineral Dispositions andProperty Map
Aripuanã Zinc Project
Karmin Exploration Inc.
Mato Grosso State, Brazil
Figure 4-2
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www.rpacan.com
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Aripuanã Zinc – target model
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Aripuanã Zinc
AMBREX
MOCOTÓ
AREX BABAÇU
MASSARANDUBA
BOROCA
n Six known massive sulphide deposits
n Zinc rich “stratabound zones”
n Copper rich “stringer zones”
10 kilometres
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Aripuanã Zinc - Mineralization
Arex - average 30 metres thick - up to 60 metres thick
Ambrex - 10 to 50 metres thick - up to150 metres thick
Babaçú
~4 km
n several zinc-lead-copper-silver deposits
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Aripuanã Zinc – mineral resources (2012)
Category Tonnes (millions)
Zn% Pb% Cu% Au (g/t)
Ag (g/t)
Measured & Indicated
Stratabound 3.6 Stringer 1.4
7.13 0.39
2.47 0.11
0.50 2.11
0.25 0.97
67 22
Inferred Stratabound 2.1 Stringer 1.1
5.9 0.3
2.2 0.1
0.3 1.7
0.3 1.4
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n Arex – higher grade & near surface
n 43-101 compliant resource
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Aripuanã Zinc – Arex mineral resource
Drill Hole Trace
Surface
Measured
Legend:
Indicated
Inferred
0 100
Metres
200 300 400
January 2013
Aripuanã Zinc Project
Arex Resource ClassificationLongitudinal Section
Facing Southeast
Karmin Exploration Inc.
Mato Grosso State, Brazil
Figure 14-16
14-4
0
ww
w.rp
acan
.co
m
- near surface -1,400 m strike length - average 30 metres thick - up to 60 metres thick
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Aripuanã Zinc – mineral resources (2012)
n Ambrex – larger tonnage
Category Tonnes (millions)
Zn% Pb% Cu% Au (g/t)
Ag (g/t)
Indicated Stratabound 14.2 3.39 1.23 0.07 0.18 29
Inferred Stratabound 11.0 Stringer 0.5
5.2 0.1
1.8 0.1
0.1 1.4
0.3 0.8
41 12
n 43-101 compliant resource
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Aripuanã Zinc – Ambrex mineral resource
Drill Hole Trace
Surface
Stratabound Mineralization
Legend:
Stringer Mineralization
0 100
Metres
200 300 400
January 2013
Aripuanã Zinc Project
Ambrex Geological ModelVertical Lonitudinal Section
Facing Southwest
Karmin Exploration Inc.
Mato Grosso State, Brazil
Figure 14-1
1-
44
ww
w.rp
acan
.co
m
- 1,300 m strike length - 10 to 50 metres thick - up to150 metres thick
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Aripuanã Zinc - mine design is advancing
VOTORANTIM’S MINE DESIGN
AREX DEPOSIT
AMBREX DEPOSIT
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Aripuanã Zinc Project
n One of the world’s 10 largest undeveloped zinc projects
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n Votorantim’s general project parameters ¨ 15 year mine life ¨ 2,500 tonnes per day ¨ 84,000 tonnes/year zinc concentrate (54% Zn) ¨ 30,000 tonnes/year lead concentrate (56% Pb) ¨ $200 million capital cost
n tentative startup in 2015
Aripuanã Zinc
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n located in the Huamachuco (Alto Chicama) gold district in NW Peru
Cushuro Gold Project
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Cushuro Gold Project
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20 million ounces gold
n in a world class mining district
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Cushuro Gold Project - Mineral Concessions
Cushuro Gold
Rio Alto’s La Arena Mine
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n Aripuanã Zinc, Brazil ¨ World class massive sulphide resource ¨ Pre-feasibility study in progress ¨ Ongoing exploration in 2013
n Cushuro Gold, Peru ¨ Exploration in a world class gold district
Karmin Exploration (KAR :TSX-V & BVL)