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Santa Cruz Project Pinal County, Arizona

Santa Cruz Project Pinal County, Arizona. Amrich Minerals, LLC September 2013. CONFIDENTIAL – NOT FOR DISTRIBUTION. Table of Contents. Property and Company Overview Santa Cruz Overview Appendix Copper Market Outlook. 3 19 22 28. Property and Company Overview.

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Santa Cruz Project Pinal County, Arizona

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  1. Santa Cruz ProjectPinal County, Arizona Amrich Minerals, LLC September 2013 CONFIDENTIAL – NOT FOR DISTRIBUTION

  2. Table of Contents Property and Company Overview Santa Cruz Overview Appendix Copper Market Outlook 3 19 22 28

  3. Property and Company Overview

  4. Overview Of Amrich and Its Santa Cruz PropertyCompelling copper resource investment opportunity • 100% owned by Amrich with no production royalties • Past-producing mine located in Pinal Country, Arizona • Will produce 99.999% pure copper on site • Drilled resource and facilities situated on over 2,700 acres of unpatented mineral claims totaling 132 claims • Amenable to lowest cost recovery technologies (In-Situ, SX/EW processing) • Copper is the most widely used non-ferrous metal; demand has grown over 34% over the last 10 years • Demand has exceeded supply for the last 5 years. • Copper production will have to increase by 75% over the next 12 years to satisfy demand by 2025 Santa Cruz Property • 6 well defined ore bodies • 13,279,600,000 pounds of contained copper • Third largest un-mined copper deposit in Arizona • Property was explored by ASARCO and Freeport McMoRan Copper & Gold as a Joint Venture • Over 50,000 feet of drilling done on site by Joint Venture partners Resource Highlights Copper Industry

  5. Overview of the Phase I thru 3 Development PlanFast Tracking of Production Through Phased Development • Construct SX/EW facility at Santa Cruz property • Develop well fields at Hanna Getty, Santa Cruz Southeast, Santa Cruz Northwest deposits • Start production of copper cathode at SX/EW Phase I • Construct pipeline from Texaco deposit to SX/EW facility at Santa Cruz site • Develop well fields at Texaco deposit • Start in-Situ leaching at Texaco deposit • Start reclamation at Hanna Getty, Santa Cruz Southeast, Santa Cruz Northwest deposits Phase II • Construct pipeline from Sacaton North and Sacaton South deposit to SX/EW facility at Santa Cruz site • Develop well fields at Sacaton North and Sacaton South deposit • Start in-Situ leaching at Sacaton North and Sacaton South deposit • Start reclamation at Texaco deposits Phase III

  6. Historic Reserve EstimatesLarge copper resource of 13.3 billion pounds of copper

  7. What is In-Situ LeachingProven Save Technology In-situ mining is designed to co-exist with other land uses, such as agriculture. The in-situ mine will typically consist of a series of injection wells and recovery wells. The wells are built with acid-resistant concrete and a PVC casing. At the level where the drill hold penetrates the copper-bearing rock, perforations in the casing allow a weak acid solution to be pumped into the ore to dissolve the copper. Then the copper-rich solution is drawn up through the recovery wells for processing at a nearby SX-EW (Solvent Extraction, Electrowinning) facility.

  8. In-Situ Model Courtesy of Curis Resources

  9. Typical Well Field Model Courtesy of BHP

  10. Typical View of a Wells from Surface Courtesy of Curis Resources

  11. Proposed Drilling Pattern for Santa CruzInjection. Recovery and Monitoring Well Fields

  12. Ore at Santa Cruz PropertyThe Santa Cruz In-Situ Copper Mining Research Project Chrysocolla Granite

  13. Santa Cruz Property Deposit GeologyInformation from Mindat • Mineralization is a porphyry copper deposit. The ore zone is 2000 meters long, 800 meters wide, with a depth-to-top of 1600 meters and a thickness of 1700 meters. May be the largest atacamite deposit in the world. Ore control was intrusions and faulting. • The high grade of the ore body is due to a supergene enrichment zone composed of atacamite and chrysocolla in the oxide zone. • No production as yet, reserves proven for future open pit operations.

  14. Amrich Minerals, LLCManagement

  15. Amrich Minerals, LLCAdvisory Board

  16. Atacamite MineralizationPhoto from Mindat

  17. Post Mine Closure and Land UseLife After the Mine • Following the completion of operations the property will be available for residential development, farming, recreation or a combination of land uses. • Once the copper minerals have been recovered, injection and recovery wells will be used to rinse the bedrock with fresh groundwater. Once groundwater quality has returned to its original condition, wells will be cemented and sealed off below ground-level and production areas covered with native soils. Project buildings, facilities and infrastructure will also be removed. • Reclamation at the facility will be an ongoing process, with some portions of the production area fully reclaimed while others are still in operation.

  18. Highlights of Santa Cruz Pilot PlantJoint Venture Between ASARCO & Freeport McMoRan • Operating Period: Encompassed 309 days • Operations Ceased in early 1998 • During operations the SX/EW ran very efficiently and virtually flawlessly • Plant processed: 13-20 gpm of solvent extraction (SX) feed containing 0.3 to 1.8 gpl of Cu • Pilot plant production: 17.5 tons of copper cathodes • The SX plant operated with 93% copper transfer efficiency • The EW plant achieved 97% current efficiency • Cathode purity achieved: 99.99% Cu • Plant operating staff: 14

  19. Historic Aerial Photo of In-Situ Pilot PlantJoint Venture Between ASARCO & Freeport McMoRan

  20. Comparison of Surface Disturbances In-Situ vs. Open Pit Mining In-Situ Leaching Open Pit Mining Courtesy of Curis Resources

  21. Large Previously Disturbed AreaMajority of Historic Land Use was for Agriculture Looking East from Pilot Plant Looking West at Pilot Plant

  22. Santa Cruz Overview

  23. InfrastructureExisting infrastructure providing support for mine build out • The project site is accessed by State and County roads with rail /airport facilities nearby • Sufficient water is available on the property and groundwater wells will be developed to meet the water requirements • Power is available at the project site from the Arizona Public Service (APS) grid • A 33-KVA power line with a major electrical substation is located nearby Rail Adjacent to Property Near Past Producing Mine

  24. Santa Cruz Property Permitting Matrix OverviewLocated in a Mine Friendly Region

  25. Appendix

  26. Santa Cruz Property General LocationCompelling copper resource investment opportunity 2010 Copper Production in Arizona • Total personal income (direct & indirect): $3.624 billion • Total jobs (direct & indirect): 73,100 • Total payments to governments (direct): $194.4 million • Total contributions to Arizona economy (direct): $2.5 billion • Total employment (direct): 10,400 • Total wages and salaries (direct): $970 million • Total mineral production: 797,408 tons • Total production value: $6.034 billion Santa Cruz Site

  27. Claims at Santa Cruz PropertyCompelling copper resource investment opportunity

  28. Ore Deposits at the Santa Cruz PropertyCompelling copper resource investment opportunity

  29. Copper Market Outlook

  30. Arizona Copper FactsOne of the five “C’s” • Arizona produced 63% of U.S. copper • Arizona’s copper is predominately sold outside the state – injecting fresh dollars into Arizona’s economy • Industry is active in sustainable development efforts – reclaiming and remediating impacts of historic mining and investing in the future of mining communities  • Industry benefits rural and metropolitan communities and counties throughout the state  • Companies donate many volunteer hours and provide significant funding to support local charities • Copper is one of Arizona’s five “C’s”, a core industry of our state’s economy

  31. Copper Industry Demand IssuesGlobal Growth Downward pressure on demand • Wireless technology • Substitution • More efficient construction • Overbuilt infrastructure in Western world Upward pressure on demand • Infrastructure in developing world • Growing world population - 9.2 billion by 2050 • Rising living standards in Asia • Infrastructure rebuilding in US/Europe • Alternative energy (solar, wind, electric cars)

  32. Copper Industry Demand IssuesGlobal Growth

  33. World Population GrowthGlobal Growth 1950 to 2050

  34. Per Capita Copper Consumption(Annual pounds copper consumed per person)

  35. 8 Challenges in Development of Mineral Resources • Growing Populations • Growing per Capita Mineral Use • Physical Availability of Minerals • Competition for Land • Competition for Water • Competition for Energy • Biosphere’s Capacity to Absorb Mineral Waste • Technology Development

  36. Worldwide Copper ConsumptionMillion Metric Tons

  37. Worldwide Copper ProductionFactors impacting supply growth • Political opening of Chile • Political opening of Peru • Grasberg • SX/EW expansions • Expanded resources at past producing mines • Emerging resource areas like Africa

  38. Copper Industry Supply IssuesDownward pressure on supply • Declining production from existing mines • – Natural decline in ore grade • Rate of exploration discovery has not kept up with demand • – Stable parts of the world are well explored – easy ones have already been found • New discoveries are likely to be underground • New discoveries are likely to be in politically challenged countries • Increasing number of properties off limits due to social/environmental issues • Development timeline for projects has extended • Construction costs have increased • Equipment availability • Limited mining talent pool

  39. Worldwide Copper ConsumptionMillion Metric Tons Assumes 9.2 billion people consuming 10 pounds Cu annually in 2050

  40. World Population GrowthGlobal Growth 1950 to 2050

  41. Thank You

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