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- 1. 1TSX V. REG TSX V.REG BVL.REG TOP 10 REASONS TO INVEST IN REGULUS AUGUST 2020 Investor Deck
- 2. 2TSX V. REG DISCLAIMER Forward-Looking Information Forward‐Looking Information. Certain statements regarding Regulus, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Regulus' control. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Specifically, and without limitation, all statements included in this presentation that address activities, events or developments that Regulus expects or anticipates will or may occur in the future, including the proposed exploration and development of the AntaKori project described herein, the completion of the anticipated drilling program, the completion of an updated NI 43-101 resource estimate, the impact of the COVID-19 pandemic on the Canadian and worldwide economy, the Company’s workforce, worldwide demand for commodities and the Company’s business generally and management's assessment of future plans and operations and statements with respect to the completion of the anticipated exploration and development programs, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Regulus' control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements. Although Regulus believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The forward-looking statements contained in this presentation are made as of the date hereof and Regulus does not undertake any obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities law. Presentation of Resource Estimates. This presentation uses the terms "indicated" and "inferred" in connection with its resource presentations, as defined in accordance with National Instrument 43‐101 Standards of Disclosure for Mineral Projects ("NI 43‐101") under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on May 10, 2014. An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve. All of Regulus' exploration programs and the related disclosure of information of technical or scientific nature are prepared by, or prepared under the direct supervision of Dr. Kevin B. Heather, FAusIMM, Regulus' Chief Geological Officer, who is a "qualified person" as defined in NI 43‐101.
- 3. 3TSX V. REG TEAM HAS HISTORY OF CREATING VALUE • Converted Haquira from small copper oxide deposit to a Tier 1 porphyry copper deposit • Upon completion of PEA, sold to First Quantum Minerals for ~ C$650 MM • People who invested in the downturn of 2008-09 saw a ~20x return by 2010 • Converting AntaKori from a moderate sulphide deposit to a Tier 1 sulphide/porphyry-skarn deposit • Better location, better grade, better strip, bigger potential than Haquira • Advancing AntaKori towards an updated resource and PEA Team is using a proven strategy to develop an asset that will likely be acquired by a major miner. 1
- 4. 4TSX V. REG SKIN IN THE GAME Management and Directors have invested > C$2.6 MM in Regulus shares since January 2018 (Average entry price C$ 1.23). Management interests fully aligned with shareholders. 2 Shares issued 101,844,844 Cash (Mar 31, 2020) C$5.9 MM Share price (Aug 5, 2020) C$1.00 Market cap C$101.8 MM Analyst Coverage Canaccord Michael Pettingell Paradigm David Davidson IAS George Topping Management & Directors, 13.13% Route One Investment Corp, 24.11%Other Regulus Shareholders, 62.76% REG Shareholders
- 5. 5TSX V. REG PREMIER LOCATION IN PERU3 Project is located in Peru, the second largest copper producing country in the world.
- 6. 6TSX V. REG CLEAR TIMELINE TO MONETIZATION4 SULPHIDES EXPLORATION ANTAKORI PROJECT Regulus TANTAHUATAY AU MINE Coimolache JV SULPHIDES PRODUCTION CERRO CORONA CU-AU MINE Gold Fields OXIDES PRODUCTION TRANSFER TO SULPHIDES PRODUCTION 2030 ESTIMATED MONETIZATION ESTIMATED CLOSURE* DISTRICT TIMELINEDISTRICT MAP 100% owned by Regulus 2025 DROP IN PRODUCTION $ ESTIMATED CLOSURE* *Per SNL Financial CERRO CORONA MINE CERRO CORONA TAILINGS POTENTIAL DEVELOPMENT INTO PRODUCTION Neighbouring mines will need more ore to avoid closure by 2025.
- 7. 7TSX V. REG • Covid-19 has not affected the long-term outlook for copper: • “From an end-use perspective, demand for copper is expected to remain solid on the back of the ongoing trend towards decarbonisation, underpinned by trends such as renewable energy, electromobility and energy efficiency” – Wood Mackenzie • Several major producers have announced they are slowing or temporarily stopping development of new copper projects • Covid-19 may increase long-term demand for copper in health care centres due to its antimicrobial properties 10 12 14 16 18 20 22 24 26 28 30 2010 2015 2020 2025 2030 Mt Probable Copper Projects Base Case Copper Production Primary Copper Demand Source: Wood Mackenzie - Global Copper Long Term Outlook Q1-2020 - Published March, 2020 AntaKori district timeline ties well with timeline for projected shortfall in copper supply. 4 CLEAR TIMELINE TO MONETIZATION
- 8. 8TSX V. REG SIGNIFICANT RESOURCE IN HAND & ROOM TO GROW Cu Copper Indicated - Cu Inferred - Cu Au Gold Indicated Inferred 2.3 Million Oz 2.2 Million Oz Ag Silver Indicated Inferred 61 Million Oz 67 Million Oz Indicated Inferred 2.4 Billion lbs 2.6 Billion lbs Details of resource estimate in appendix 5
- 9. 9TSX V. REG SIGNIFICANT RESOURCE IN HAND WITH HIGH GRADE NEAR SURFACE & LOW STRIP High Grade Near Surface • Approximately 36% of total tonnes within the top 300 m of the deposit are >0.7% CuEq • Approximately 59% of total tonnes within the top 300 m of the deposit are >0.5% CuEq • Combined strip ratio (including Coimolache’s data) of open pit is 0.85/1 Section line *See appendix for breakout of Indicated and Inferred Section 5 Section lineSection line Section Looking to southwest
- 10. 10TSX V. REG 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 AntaKori AntaKori + CMC Sulphides** Toromocho* Las Bambas* Cascabel* CuEq% CuEqlbsM M&I CuEq lbs Inferred CuEq lbs CuEq % A GROWING PORTION OF A VERY LARGE DEPOSIT Compares Well to World-Class Projects and Operations Conceptual Pit Models Both Regulus and Coimolache’s Mineralization – We Only Report Regulus’ Resources When combining our resource with Coimolache’s, the combined deposit is similar in size to world class operations. *As per SNL Financial, Toromocho Total R&R at start of mine life from 2014, Las Bambas Total R&R at start of mine life from 2013 ** CMC (Coimolache) resources from 2016, as per SNL CuEq calculated using $US 3/lb Cu, $US 1450/Oz Au and $US 18/Oz Ag 6
- 11. 11TSX V. REG DELIVERED 5/20 TOP CUEQ INTERCEPTS REPORTED BY JUNIORS SINCE 2018 Section line Rank Property Name Operator Name Hole ID From (m) To (m) Interval (m) Cu % Au g/t Ag g/t CuEq % CuEq x m 1 Cascabel SolGold Plc CSD-18-067 886.00 1,914.00 1,028.00 0.71 0.91 NA 1.36 1,397 2 Cascabel SolGold Plc CSD-18-068 1,004.40 1,668.40 664.00 0.88 1.03 NA 1.61 1,072 3 AntaKori Regulus Resources Inc. AK-19-031 3.70 613.90 610.20 0.84 1.02 10.28 1.66 1,013 4 Cascabel SolGold Plc CSD-18-069 740.00 1,592.00 852.00 0.77 0.57 NA 1.18 1,002 5 Cascabel SolGold Plc CSD-18-042 278.00 1,124.00 846.00 0.71 0.50 NA 1.07 902 6 Cascabel SolGold Plc CSD-18-041-D1-D2 926.00 1,779.00 853.00 0.52 0.62 NA 0.96 821 7 Filo del Sol Filo Mining Corporation FSDH032 132.00 1,141.00 1,009.00 0.57 0.39 11.10 0.95 958 8 AntaKori Regulus Resources Inc. AK-18-014 4.70 718.69 713.99 0.68 0.38 7.59 1.02 728 9 Cascabel SolGold Plc CSD-18-043 600.00 1,574.00 974.00 0.48 0.37 NA 0.74 724 10 KSM Seabridge Gold Inc. IC-18-82A 428.00 1,446.20 1,018.20 0.37 0.44 1.60 0.70 711 11 Filo del Sol Filo Mining Corporation FSDH034 72 1106 1034 0.42 0.32 3.4 0.68 702 12 Cascabel SolGold Plc 33-D1 736.00 1,560.00 824.00 0.54 0.42 NA 0.84 692 13 AntaKori Regulus Resources Inc. AK-18-026 640.50 1,113.70 473.20 1.16 0.21 8.43 1.39 656 14 Tatogga GT Gold Corp. TTD112 21.00 705.90 684.90 0.44 0.70 1.09 0.95 651 15 AntaKori Regulus Resources Inc. AK-18-021 127.00 746.20 619.20 0.67 0.43 7.30 1.04 646 16 Altar Aldebaran Resources Inc. ALD-18-209 482.00 1,536.50 1,054.50 0.49 0.15 1.49 0.61 645 17 AntaKori Regulus Resources Inc. AK-19-034 165.25 985.15 819.90 0.53 0.24 7.83 0.77 633 18 Cortadera Hot Chili Limited CRP0020D 0.00 972.00 972.00 0.50 0.20 0.90 0.65 633 19 Kwanika Serengeti Resources K-180 33 546.9 513.9 0.64 0.8 2.24 1.23 632 20 Kwanika Serengeti Resources K-182 25 525.3 500.3 0.66 0.8 2.24 1.25 626 • 5 of the top 20 CuEq intercepts since January 2018 • 3 of the 5 best AntaKori intercepts are not incorporated in the current resource estimate* (AK-18-026, AK-19-031 & AK-19-034) • Majority of top AntaKori holes start near or at surface As per SNL financial, as of May 1, 2020 , SNL search criteria include: >450 m interval, primarily copper interval & reported after Jan 1, 2018. Only longest reported interval considered. Any interval from a company with production is excluded CuEq estimates calculated using US$2.25 Cu, US$1,100 Au and US$14 Ag. The formulas utilized to calculate equivalent values are CuEq (%) = Cu% + (Au g/t * 0.7130) + (Ag g/t * 0.0091) *AK-18-026 was drilled prior to the resource update, however the referenced intercept lacked supporting nearby drill holes to be considered in resource estimation. AK-19-31 was drilled after the resource estimation and was an infill hole which will likely improve grade and convert inferred to indicated. AK-19-034 was drilled after the resource estimation and was in a previously untested area. 7
- 12. 12TSX V. REG Mineralization is open to the north in AntaNorte SIGNIFICANT GROWTH POTENTIAL8 • We have begun testing the edges of the geophysical targets to the north with positive results: - AK-19-026 – 473.20 m of 1.39% CuEq - AK-19-034 – 819.90 m of 0.77% CuEq - AK-19-035 – 504.15 m of 0.53% CuEq - AK-19-039 – 168.15 m of 1.15% CuEq - AK-19-041 – 341.00 m of 0.85% CuEq AK-39 AK-26 AK-34, 41 AK-35 62.3% hit reportable mineralization 11,000 m drilled in virgin area AntaNorte
- 13. 13TSX V. REG 8 In 3D looking to northwest 2019 Regulus Conceptual Pit 2019 ANTAKORI RESOURCE (WOOD, 2019) Mineralized Blocks >0.3% CuEq 2019 “Out-of-Pit” Mineralized Blocks (Not Reported) 2019 “In-Pit” Resource Blocks (Reported) Tantahuatay Oxide Mine Anta NorteAntaKori MINERALIZATION IS OPEN TO THE NORTH Mineralization is open to the north SIGNIFICANT GROWTH POTENTIAL
- 14. 14TSX V. REG Mineralization is open to the north SIGNIFICANT GROWTH POTENTIAL8 In 3D looking to northwest 2019 Regulus Conceptual Pit 2019 “Out-of-Pit” Mineralized Blocks (Not Reported) 2019 “In-Pit” Resource Blocks (Reported) ANTANORTE GROUND MAGNETIC SURVEY 2019 ANTAKORI RESOURCE (WOOD, 2019) Mineralized Blocks >0.3% CuEq Tantahuatay Oxide Mine Anta NorteAntaKori
- 15. 15TSX V. REG As per July 13, 2020 - SNL Financial - CuEq calculated using $3/lb Cu, $1450/Oz Au, $18/Oz Ag & $10/lb Mo 0.004 0.008 0.011 0.015 0.016 0.017 0.30% 0.35% 0.40% 0.45% 0.50% 0.55% 0.60% 0.65% 0.70% 0.75% 0.000 0.002 0.004 0.006 0.008 0.010 0.012 0.014 0.016 0.018 0.020 Los Andes Copper Regulus Resources Josemaria Resources Filo Mining Solgold GT Gold CuEqgrade $USEV/lbCuEq 9 SIGNIFICANT UPSIDE TO MARKET CAP AND SHARE PRICE Regulus compares well to peers in the junior copper sector as an exciting value opportunity.
- 16. 16TSX V. REG 10 FOCUSED ON THE END GAME A TECHNICAL APPROACH THAT WILL FACILITATE MINING ANTAKORI LARGE DEPOSIT WITH POTENTIAL FOR MULTIGENERATIONAL MINE LIFE Unlike many juniors, Regulus extensively collects data sets, e.g. petrographic and hyperspectral data (Core Scan), which will facilitate the mining of AntaKori and adds considerable value to the project in the eyes of a major looking to acquire Regulus. Regulus has a collaborative approach on the ground to work on long-term projects with local communities to increase agricultural yield, support improved health and education, and carry out environmental remediation work. Regulus is advancing AntaKori as a world-class copper-gold deposit that has the potential to have a long mine life which would continue local employment for generations to come. SUSTAINABLE VALUE FOR ALL STAKEHOLDERS ACTIVELY INVOLVED IN LONG-TERM COMMUNITY AND ENVIRONMENTAL PROJECTS
- 17. 17TSX V. REG WHAT ARE THE UPCOMING EXPLORATION CATALYSTS? Next Exploration Catalyst Will Be Restarting Phase II Drill Program Receipt of Anta Norte drill permit Restart of Phase II drill program Expected in September 2020 Operations delayed by COVID-19 restrictions in Peru. Received full permits in March 2020 to now test new virgin area in Anta Norte claims to the north at AntaKori. Initial drill results from Anta Norte Updated Mineral Resource Estimate DE-RISK AND ADD VALUE TO ANTAKORI MONETIZATION By the end of 2020 Metallurgical test work is already underway. 2021 key milestones Next Mineral Resource has the potential to significantly increase the size of the resource. Phase III drill program Drilling to continue to reveal full value of the AntaKori project and moving towards Pre-Feasibility studies. Metallurgical results from AntaKori PEA
- 18. 18TSX V. REG TIER ONE ASSET IN THE MAKING PROVEN STRATEGY QUALITY PARTNERS TSXV-REG John Black, CEO & Director | john.black@regulusresources.com | +1 303-618-7797 Laura Brangwin, Investor Relations | laura.brangwin@regulusresources.com | +44 203-239-0741 www.regulusresources.com PLEASE CONTACT US WITH ANY QUESTIONS:
- 20. 20TSX V. REG EXPLORATION AGREEMENTS WITH THE NEIGHBOURS District Consolidation – Two Agreements in Place Project Claims and Agreements 1. Coimolache Agreement • Allows Regulus to see all drilling on neighbour’s ground established within the agreement (grey area on map) • Allows Regulus to model and constrain, with an open pit, the combined sulphide resource and report the portion that fall on Regulus ground* • Mutual rights of access • Allows Coimolache to layback oxide pit by paying a 5% NSR on any oxides mined on Regulus ground 2. Colquirrumi Agreement • Option to earn a 70% interest by drilling 7,500 m within 3 years of obtaining necessary permits • Buenaventura has a one-time option to claw-back to 70% by paying Regulus US$9 MM, leaving Regulus with a 30% interest Up to 70% Regulus *Coimolache may have more resources beyond the area covered in the agreement
- 21. 21TSX V. REG EXPLORATION MILESTONES AT ANTAKORI TO DATE Completed Extensive Drilling and Defined a Large Sulphide Deposit With Significant Upside March 2019 Interim Resource – Based on Historical & Phase I Drilling Resource Category Tonnes (millions) Cu (%) Au (g/t) Ag (g/t) CuEq (%) Cu (B lbs) Au (M oz) Ag (M oz) CuEq (B lbs) Indicated 250 0.48 0.29 7.5 0.74 2.6 2.3 61 4.1 Inferred 267 0.41 0.26 7.8 0.66 2.4 2.2 67 3.9 Resource completed using 0.3% CuEq cut off and constrained utilizing a 60,000 tpd conceptual open pit Resource estimate used metal prices: Au = US$1,400/oz, Cu = US$3/lb, Ag = US$18/oz CuEq were calculated using the following metal prices: Au = US$1,400/oz, Cu = US$3/lb, Ag = US$18/oz The formulas utilized to calculate equivalent values are CuEq (%) = Cu% + (Au g/t * 0.7130) + (Ag g/t * 0.0091) Average arsenic grade: Indicated Mineral Resource = 857 ppm, Inferred Mineral Resource = 518 ppm 54% of total mineralization is skarn (240 ppm As) 39% of total mineralization is high sulphidation epithermal in Miocene volcanic rocks (1,360 ppm As) DRILLING PROGRAMS MINERAL RESOURCE ESTIMATES MINERAL RESOURCE ESTIMATE UPDATE Drilling to expand resource to the north Phase II Regulus Drill Program (in progress) Hole AK-18-028 + ~25,000 m Phase I Regulus Drill Program (2017-2018) Hole AK-17-01 to AK-18-027 ~23,000 m Historical Drilling (Pre-Regulus) 17,000 m + + North