MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation....

39

Transcript of MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation....

Page 1: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install
Page 2: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

No stock exchange, securities commission or other regulatory authority has approved or disapproved the

information contained on this presentation. This presentation contains "forward-looking information"

concerning MGX Minerals Inc.’s (“MGX”) future financial or operating performance and other statements

that express management's expectations or estimates of future developments, circumstances or results.

Generally, forward-looking information can be identified by the use of forward-looking terminology such

as “seeks”, "believes", "anticipates", "plans", “continues”, "budget", "scheduled", "estimates", "expects",

"forecasts", "intends", “projects”, “predicts”, “proposes”, "potential", “targets” and variations of such words

and phrases, or by statements that certain actions, events or results "may", "will", "could", "would", “should”

or "might" "be taken", "occur" or "be achieved". While all forward-looking statements involve various risks

and uncertainties, these statements are based on certain assumptions that management of MGX believes

are reasonable, including that it will be able to obtain financing and on reasonable terms, that its current

exploration and other objectives can be achieved, that its exploration and other activities will proceed as

expected, that its community and environmental impact procedures will work as anticipated, that general

business and economic conditions will not change in a material adverse manner, that MGX will not

experience any material accident, failure or shortage of equipment, and that all necessary government

approvals for its planned exploration and potential development activities will be obtained in a timely

manner and on acceptable terms. There can be no assurance that the forward-looking statements will

prove to be accurate and actual results and future events could differ materially from those anticipated in

such statements.

Important factors that could cause actual results to differ materially from the MGX’s expectations include,

among others, include: global economic conditions; actual demand, supply and prices for lithium and other

minerals; long-term price assumptions, as they materially affect the timing and feasibility of future projects

and developments; trends in the industry; effect of currency exchange rates on commodity prices and

operating costs; the availability and costs associated with mining inputs and labour; risks related to

community relations and activities of stakeholders, and delays in obtaining governmental approvals or

financing. In this presentation, forward-looking statements relate to, among other things, the timing and

success of partnerships with major oil and gas operators to conduct well sampling; the timing, extent and

success of PurLucid Treatment Solutions Inc. (“PurLucid”) deployment of commercial scale water

treatment and lithium extraction projects to targeted system specifications and output and MGX

Renewables Inc. (“MGXR”) deployment of commercial scale zinc-air fuel cell technology and modular

storage system to target specifications and utility scale output; opportunities for growth of mineral and

brine extraction projects and the renewable energy markets at large; the ability to adapt to changes in

lithium, water and electricity prices; estimates of costs, planned exploration, development expenditures

and development, construction and operating costs of PurLucid, MGXR, and mining projects.

MGX may decide to advance its petrolithium projects into production without first establishing mineral

resources supported by an independent technical report or completing a feasibility study. A production

decision without the benefit of a technical report independently establishing mineral resources or reserves

and any feasibility study demonstrating economic and technical viability creates increased uncertainty and

heightens economic and technical risks of failure. Historically, such projects have a much higher risk of

economic or technical failure.

Although MGX has attempted to identify important factors that could cause actual results to differ

materially, there may be other factors that cause results not to be as anticipated, estimated or intended.

There can be no assurance that such statements will prove to be accurate as actual results and future

events could differ materially from those anticipated in such statements. Accordingly, readers should not

place undue reliance on forward-looking statements. MGX does not intend, and expressly disclaims any

intention or obligation to, update or revise any forward-looking information or statements whether as a

result of new information, future events or otherwise, except as required by law. All statements contained

in this presentation should be read with reference to MGX’s continuance disclosure record, which may be

accessed through the MGX’s profile on SEDAR at www.sedar.com.

Mr. Andris Kikauka, P. Geo., VP of Exploration for MGX Minerals and a Qualified Person within the meaning

of National Instrument (N.I.) 43-101 guidelines, has reviewed and approved the technical content of this

presentation.

Forward-Looking Statements

Page 3: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

MGX Minerals is leading the transition from fossil fuels to renewables through investments in battery commodities, extraction processes

and clean technologies.

Page 4: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

MGX and Eureka Resources Enter JV Agreement to Install World’s First Commercial Rapid Petrolithium Recovery SystemJune 2019

MGX Announces Installation of Second Oilsands Wastewater Treatment SystemMay 2019

MGX Announces Breakthrough in Development of High-Energy Lithium-Ion BatteriesApril 2019

MGX Provides Revenue Projections for Initial Contracted Wastewater Treatment SystemsMarch 2019

MGX Announces Oilsands Lithium Extraction and Wastewater Treatment System DeploymentsFebruary 2019

MGX Announces Successful Commissioning of Alberta Oilsands Wastewater Treatment SystemJanuary 2019

Recent Highlights

4

Page 5: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Our Divisions

Mineral Extraction

Our technologies concentrate valuable elements and metals from abundantly available brines.

Energy Storage

We are developing novel energy storage solutions that will help shape the new energy economy.

Wastewater Purification

Our technology purifies produced waters, allowing for the recycling or controlled release of it.

Conventional Mining

We are developing a traditional open-pit mine that will provide North America with a strategic supply of magnesium.

5

Page 6: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Mineral Extraction

Page 7: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

~80 MillionNorth American oil and gas industry generates more than 80 million barrels of brine daily

650%Anticipated increase in overall lithium demand between now and 2027

Petrolithium: Old Energy Participates In The New Energy Economy

• Petrolithium is a new approach that focuses on concentrating lithium and other elements from abundantly available wastewater (brine) that accompanies oil and gas production

• MGX’s rapid lithium extraction systems unlock vast unconventional sources of lithium

• This new technology could dramatically alter the energy landscape in the coming decades.

• Advantages:• Ability to utilize existing O&G infrastructure• Allows for scalable capital deployment• Simplifies permitting process• Eliminates solar evaporation step

7

Page 8: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Extracting Lithium from Wastewater Brines

• MGX has developed a proprietary, low-energy design process that is patent pending

• Technology rapidly extracts lithium and other valuable elements from wastewater brines

• Eliminates the physical footprint and investment in large, multi-phase, lake sized, lined evaporation ponds

• Enhances the quality of extraction and recovery across a complex range of brines as compared with traditional solar evaporation

• Technology is applicable to petrolithium (oil and gas wastewater), natural brine and other brine sources such as lithium-rich mine and industrial plant wastewater

8

Page 9: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Building A Global Portfolio of Lithium Assets

• MGX is amassing a global portfolio of lithium assets that serve as the foundation upon which its new technologies are developed and deployed.

• To date the Company has acquired interests in lithium assets totaling over 2.1 million acres across North and South America through direct acquisitions and strategic joint ventures.

• The Company continues to actively explore for new opportunities globally that align with our core business model and enhance shareholder value.

9

Page 10: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Growing Lithium Demand Is Creating A Supply Shortage

0

100

200

300

400

500

600

2017 2018 2019 2020 2021 2022 2023 2024 2025

Lithium Supply/Demand Estimates (000’s, Mt)

Supply Demand

Sources: Credit Suisse 2014, Goldman Sachs 2015

0

100

200

300

400

500

600

2017 2018 2019 2020 2021 2022 2023 2024 2025

Annual Lithium Demand Estimates By Application (000’s, Mt)

Conventional Consumer Electronics New Applications Electric Cars

Sources: Deutsche Bank, Industry Data

10

Page 11: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

MGX to Install World’s First Commercial Rapid Petrolithium Recovery System

• MGX and Eureka Resources have formed an exclusive joint-venture to recover lithium from water produced at non-conventional oil and gas sites across the Marcellus and Utica shale formations

• Deep natural gas reserves located in the Marcellus and Utica shale account for approximately 40% of all natural gas produced in the United States and generate significant volumes of produced water

• Eureka uses advanced treatment technology to convert 10,000 barrels per day of this produced water into valuable co-products, including fresh water, high-purity sodium chloride and calcium chloride

• JV will initially focus on fast tracking deployment of the world’s first commercial rapid lithium recovery system at Eureka’s state-of-the-art Standing Stone advanced wastewater Treatment Facility

• JV will also work to identify additional rapid lithium extraction deployment locations at other wastewater treatment facilities throughout Eastern United States

11

Page 12: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

4.1 Million TonsReduced CO2 emissions in the United States each year thanks to geothermal power plants

3,567 MWTotal megawatt power of geothermal plants operating in the United States- highest in the world

Geothermal Extraction: Unlocking Geothermal’s Vast Mineral Potential

• MGX's geothermal extraction technology concentrates metals and other dissolved salts using geothermal brine as a feedstock

• This proprietary, low energy design process also eliminates a large industry barrier known as scaling and enhances the long-term operating performance of geothermal plants

• Geothermal brines are known to contain vast amounts of lithium, magnesium and many other elements

• Highlights:• Integrates into existing geothermal power plant infrastructure• Eliminates scaling and heat transfer loss• Utilizes Replaceable Skin Layer (RSL™) membranes• Fully integrates with wastewater purification systems

12

Page 13: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Extracting Metals & Dissolved Salts From Geothermal Brines

• MGX's geothermal extraction technology is capable of integrating into existing geothermal infrastructure for both the pre or post power plant phase

• The technology also has the ability to remove scale-forming ions and dissolved salts while not requiring a reduction in brine temperatures for filtration

• The importance of high temperature operation in the post power plant phase allows return water temperature to remain high which is a primary environmental permit requirement

• Former California Senate Majority Leader Richard Polanco is acting as an advisor and consultant to the Company to lead negotiations with the State of California and local municipalities regarding targeted exploration locations and sites identified by MGX as potential partnerships and acquisition targets to secure geothermal feedstock and operating sites

13

Page 14: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Wastewater Purification

Page 15: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

4 to 1Number of produced water barrels generated for every barrel of oil and gas in North America

45 BillionEstimated number of produced water barrels generated annually by 2025 from North American oil and gas production

Onsite, Distributed Produced Water Treatment for Oilfields

• MGX and engineering partner PurLucid Treatment Solutions Inc. deploy wastewater handling solutions on-site for oilfield operators

• Utilizing patented nanoflotation technology, these container-based, distributed systems treat produced water at the oilfield site, without the costs of building pipeline infrastructure or trucking water offsite

• The treatment process consists of a series of membrane-based filtration methods that separates impurities from oil and gas wastewater to yield clean water as a final product

• The process allows for the recycling or controlled release of oilfield-produced water and reduces or eliminates downhole and associated transportation costs

15

Page 16: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Ultra-High Temperature Water Treatment

• MGX’s 60% owned engineering partner PurLucid has been awarded an $8.2 million grant to commercialize the water treatment technology

• Multiple systems have been deployed to oilfield operators throughout Alberta to date

• Water treatment systems utilize highly charged Replaceable Skin Layer (RSL™) membranes related to nanofiltration and High Intensity Froth Flotation (HiFF) systems, known as nanoflotation

• Collectively have demonstrated performance superiority over other processes typically used to remove contaminants.

• Technology allows for ultra-high temperature water treatment (up to 700°C) at 10-30 times the efficiency of existing ultrafiltration systems

• Offers numerous additional environmental benefits

16

Page 17: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

The $29 Billon North American Wastewater Treatment Industry

0

5

10

15

20

25

30

35

40

2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E

North American Produced Water Forecast (Billions bbl)

Onshore Crude Shale Gas Offshore Crude Oil Sands Natural Gas

Sources: Global Water Intelligence Report 2011

0

200

400

600

800

1,000

1,200

1,400

1,600

1980 1990 2000 2013

North American Brine to O&G Ratios (Units, Millions)

Oil Gas Brine

Sources: GeoScout – AB, BC, Sask., Man. and North Dakota Combined Production Figures

17

Page 18: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

MGX and PurLucid Deploy First Wastewater Treatment System in Alberta

• First contracted system is now fully manufactured and commissioned at oilsands SAGD operation in Alberta

• Treatment system is capable of processing 10m3 per hour and customer pay fixed processing fee

• System processes evaporator blowdown water (EBD) and significantly reduces greenhouse gases through energy savings on steam generation

• Provides superior treatment outcomes when compared to conventional technology and can treat the water in line, under temperature and pressure, without cooling water first

• Fabrication and deployment of the second contracted wastewater treatment system scheduled for June

• Contracts currently being negotiated for additional wastewater treatment systems

18

Page 19: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Energy Storage

Page 20: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

< $10 / kWhThe cost of energy storage for a typical zinc-air battery system

20,000The number of operating life hours per subsystem of a typical 20 kW system

Long Duration, Zinc-Air Energy Storage

• MGX’s 60% owned energy partner MGX Renewables Inc. develops zinc-air flow batteries designed for high capacity, long duration use ranging from commercial and industrial to grid-scale applications

• Using low-cost zinc and air as fuel, this patented zinc-air fuel cell technology employs a fuel tank structure that is highly scalable to deliver backup power in the range of 5 to 100 kW over extended periods of time

• With its modular structure and low-cost components, MGX Renewables’ technology lowers cost barriers to shifting to renewable energy

20

Page 21: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Low cost, Long duration energy storage systems

• Resolves intermittent and unpredictable nature of renewable energy sources such as wind and solar

• Over 20 patents granted to date; development program validated by SDTC (including C$2.9 million grant)

• Technology is scalable, robust and reliable; insensitive to environmental and operational conditions

• No toxic, explosive or combustible materials; flexibility to optimize for power & energy needs

• Manufacturing plan of scale-up units underway

• Technology can be deployed into a wide range of synergistic applications:

• Renewables Storage (wind, solar, tidal)• Grid Scale Storage and Energy Trading & Arbitrage• Industrial, Mine, Factory On-Demand and Peak Shaving• Long Duration Storage and Backup• Stationary and Portable Energy for Military and Natural

Disasters• Diesel Generator Replacement and Augmentation• Motive power (rail or marine)

21

Page 22: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Safe / Scalable / Robust / Flexible

22

Typical 20 kW System

Rated Power 20 kW

Energy Storage 120 kWh

Discharge Time 8 hours at rated power

Recharge Time 8 hours at rated power

Operating Life 20,000 hours per subsystem

Cycles Unlimited within lifetime

Efficiency 65% round trip

Electrical Interface 48 V DC

Page 23: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Patented Zinc-Air Fuel Cell Technology

Oxygen to atmosphere

Oxygen from atmosphere

Power to

Load

Power from

Source

Recharge Cycle Discharge CycleZn / KOH Zn / KOH

ZnO / KOH Zn / ZnO / KOH

Regenerator Fuel Tank Cell Stack

23

Page 24: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

$332.1 BillionGlobal clean energy investments in 2018

$7.4 TrillionProjected investment dollars into clean energy between now and 2040

Silicon: Helping Shape The Energy Landscape

• Silicon’s versatility makes it prevalent throughout the energy landscape

• From its input as a raw material in the production of solar panels, to its use as an adhesive on wind turbines, to the insulation it provides electrical power lines, silicon is imperative to the growth of the renewable energy landscape

• MGX's research and development efforts within the renewable energy sector, which range from integration of renewable sources with technologies like MGX Renewable’s energy storage systems to the use of silicon as an anode for high energy lithium-ion batteries, will help the Company play an integral role in shaping the new energy economy

24

Page 25: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Building A Better Battery

MGX is funding a research consortium with the University of British Columbia dedicated to improving the energy density of lithium-ion batteries by developing a low-cost and scalable manufacturing method for silicon-based anodes. The two-year research program is focused on:

• fabricating nanostructured silicon using low-cost metallurgical silicon sourced from MGX's wholly owned projects as a feedstock and

• compositing nanostructured silicon with commercial graphite to develop a high-performance silicon anode.

The purpose of the research is to replace the graphite anode with silicon and complete a hybrid in the short-term which will not require retooling. The ultimate goal is to enable next-generation Li-ion batteries capable of quadrupling energy density from current 100 Wh/kg up to 400 Wh/kg for use in long-range electric vehicles and grid storage.

25

Page 26: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

MGX and UBC Develop Breakthrough in High-Energy Lithium-Ion Batteries

• Partnership has successfully developed a novel hybrid organic-inorganic material for use in engineering silicon interfaces

• These interfaces will prove critical in achieving a highly efficient, long-lasting silicon anode that will aide in the development of next generation lithium-ion batteries

• MGX and UBC are currently conducting process optimization on metallurgical grade silicon with the goal of utilizing low-cost metallurgical-grade silicon as a feedstock to fabricate nanostructured silicon

26

Page 27: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Conventional Mining

Page 28: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

$1.05 BillionEstimated pre-tax life of mine cash flows from production at Driftwood

66%Percentage of annual global magnesium production originating from China

• Two-thirds of the world's magnesium originates from China

• The United States has designated magnesium as a strategic metal

• As demand continues to rise and the metal becomes more difficult to source, MGX’s Driftwood Creek magnesium deposit represents a North American solution to a growing global problem

• Located in southeastern British Columbia, Driftwood Creek is the largest undeveloped magnesium deposit in North America

• It offers the potential to mine a strategic metal in a geopolitically stable, mining-friendly jurisdiction that meets the highest environmental and ethical standards

Magnesium: A Metal For The Future

28

Page 29: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

China accounts for

66% of annual global output

North America’s sole magnesium metal

operation (<1%)

Driftwood Creek

Russia <1%

Brazil <1%

Turkey<2%

Current Sources of Magnesium Are Insecure

Sources: Global Magnesium Market Overview / USGS Minerals Commodities Summary, 2017

29

Page 30: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Demand for Magnesium is Rising Steadily

8,000

9,000

10,000

11,000

12,000

13,000

14,000

15,000

16,000

17,000

18,000

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

Demand (000's Kt) Market Value (Billions, US$)

Source: Future Market Insights, August 2016; Assumes Long-Term Price of US$4,000/tonne

➢ Magnesium is 75% lighter than steel and 33% lighter than aluminum while still offering comparable strength-to-weight ratios

➢ Automobile manufacturers increasingly shifting towards magnesium-alloy to reduce vehicle weights and meet fuel-efficiency standards

➢ Producers of consumer technology products (cell phones, laptops, cameras, etc.) favor magnesium alloys due to light weights and increased durability

➢ Recent advances in magnesium battery technology show strong potential for future additional non-structural applications

➢ Research to develop magnesium-based cathode designs viable for battery storage being pursued by numerous organizations worldwide

30

Page 31: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Developing North America's Next Magnesium Oxide Mine

MGX is poised to become the next producer of magnesium oxide in North America. The 2018 N.I. 43-101 Preliminary Economic Assessment completed on Driftwood Creek highlighted the robust nature of the high-grade deposit:

• Pre-tax NPV @ 5% of $529.8 million, IRR of 24.5% with a 3.5-year payback

• Post-tax NPV @ 5% of $316.7million, IRR of 19.3% with a 4.0-year payback

• Initial capital costs of $235.9 million (Total life-of mine ("LOM") - $239.8 includes sustaining/closure costs of $3.9 million and contingency costs of $40.0 million)

• Conventional quarry pit mine with a 1200 tonne per day ("tpd") process plant using conventional crushing, grinding, flotationupgrading, calcination, and sintering to produce a saleable DBM product

• Cash costs of $350/tonne MgO / All-in sustaining costs ("AISC") of $351/tonne MgO

• Average annual MgO production of 169,700 tonnes over a 19-year mine life

• LOM average head grades of 43.27% MgO / LOM MgO recoveries of 90%

• LOM strip ratio of 2.4 to 1 of rock to mineralized material

31

Page 32: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Driftwood N.I. 43-101 Mineral Resource Estimate

1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources estimated will be

converted into Mineral Reserves.

2. The Lerchs-Grossman (LG) constrained shell economics used a mining cost of US$8.82/t, processing+ g&a costs of US$106/t, and a commodity price of US$600.00/t 95%MgO

DBM.

3. Mineral resources are reported within the constrained shell, using a cutoff grade of 42.5% MgO (based on a 20-year LOM) to determine “reasonable prospects for eventual

economic extraction.”

4. Mineral Resources are reported as undiluted

5. Mineral Resources were developed in accordance with CIM (2010) guidelines

6. Tonnages are reported to the nearest kilotonne (kt), and grades are rounded to the nearest two decimal places

7. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade, and contained metal.

8. M&I = Measured and Indicated.

CLASS TONNES x1000 MgO% Al2O3% CaO% Fe2O3% SiO2% LIO%

Measured 4,702.7 43.31 1.01 0.95 1.29 5.06 47.83

Indicated 3,144.4 43.22 1.00 1.05 1.42 4.67 47.99

M + I 7,847.1 43.27 1.00 0.99 1.35 4.90 47.89

Inferred 55.8 42.95 0.93 0.66 1.43 6.07 47.46

32

Page 33: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

33

Page 34: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Jared Lazerson / President, CEO and DirectorJared Lazerson is the President, CEO and Director of both MGX Minerals and MGX Renewables. Mr. Lazerson has worked in the mining and technology industries for nearly 25 years and is responsible for the discovery and development of the $1.5 billion Driftwood Creek magnesium deposit in British Columbia. He is also considered a pioneer in developing the globally significant petrolithium business model and associated technological advancements to extract lithium and other valuable elements from oilfield produced waters and geothermal brines. Mr. Lazerson focuses on strategizing, funding and growing organizations that develop new battery technologies, extraction processes and other cleantech innovations that will lead the global transition from fossil fuels to renewable energy. He holds a BA in International Relations from the University of Pennsylvania.

Michael Reimann (Ph.D) / CFO and DirectorDr. Reimann graduated in Engineering Physics from the Royal Military College of Canada and obtained a Ph.D. in Physics from the University of British Columbia. He has over 45 years of experience in senior corporate management in both public and private companies. Most recently Mr. Reimann served as CFO of Skana Capital (TSX.V: SKN) and PNG Gold (TSX.V: PNG).

Randall Keller / VP of Business DevelopmentMr. Keller is a highly accomplished executive with over 35 years of global experience in the energy sector. He is formerly the Director of Business Development, Transmission and Land Assets, for Berkshire Hathaway Energy Renewables (“Berkshire”), a holding company controlled by Berkshire Hathaway Inc. At Berkshire, Mr. Keller was responsible for the development of large-scale renewable energy projects within the Berkshire holdings platform in southern California and managed a large team of engineers, geologists, chemists and scientists, overseeing budgets in excess of $1 billion.

MGX Leadership Team

34

Page 35: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

MGX Leadership Team

Andris Kikauka (P. Geo) / VP of Exploration and DirectorMr. Kikauka is a geologist with over 30 year of experience. From 1996 to 2012 he was Project Geologist overseeing exploration programs at Goldrea Resources. Mr. Kikauka is Project Geologist for Rio Minerals as well as a director of American Manganese Inc. (TSX.V: AMY), which is focused on mineral properties and commodities used in the steel industry. He holds a B.Sc. in Structural Geology, Mineralogy & Petrology from Brock University.

Christopher Wolfenberg / DirectorMr. Wolfenberg is a Partner with the law firm of Fasken Martineau LLP. Prior to his current position he was a Partner with Norton Rose Fullbright. He provides practical advice to select clients active in the mining, technology and energy sectors and has acted as an officer and director of numerous public, private and non-profit entities. Mr. Wolfenberg holds a Bachelor of Social Sciences from the University of Ottawa, a Bachelor of Laws from Queen's University and a Master of Laws from Cornell Law School.

Lyndon Patrick (LLB) / DirectorMr. Patrick is a Vancouver-based, independently practicing lawyer. He has practiced in British Columbia since 2001 in the areas of litigation and real estate. He holds an LLB from the University of Alberta, and an MA and BA from the University of British Columbia. Mr. Patrick is an independent director of the Company.

35

Page 36: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

MGX Consultants

The Lamar Corporation

• Led by Dr. Larry Marks who is a 35-year industry veteran of the oil and gas sector

• Previously spent 30 years in various executive roles for Shell Canada

• Implemented strategies for marketing, sales and transportation of energy and co-products representing more than $3 billion in annual revenue while at Shell Canada

ChemCognition LLC (Chemco)

• Spearheaded by Mr. Claudio Manissero who holds over 40 years of global experience in the chemical industry

• Significant experience in mining, environmental and O&G sectors

• Previously spent 21 years at FMC Corporation (2nd largest producer of lithium globally) where he served as Sales and Marketing Manager

Senator Richard Polanco (Ret)

• Former California State Assembly Member and Senator

• Served in State Assembly for eight years

• Senate Majority Leader from 1998 until his retirement in 2002

36

Page 37: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

MGX Consultants

Dr. Vijay Mehtu

• Former Process Development Technology Leader at FMC Lithium Corporation

• 45 years of R&D and manufacturing experience of ore and brine-based technologies focused on recovering lithium, potash, magnesium and boron to produce commercial-scale, high purity chemical products

• Extensive knowledge of lithium brine and ore chemistries; has developed numerous projects related to selective process technology and upgrading of lithium into high purity Li2CO3, LiOH and more than 20 other lithium products

Erich Schnake

• Former Chilean Mining Ministry Undersecretary; implemented new policies for the mining sector in Chile

• Acted as advisor to both General Secretariat of the Presidency as well as Tripontis Ltda.; designed and drafted contract documents and procedures for Codelco, CMDI Collahuasi, Antofagasta Minerals S.A., and Cementos Bío Bío

Kura Minerals

• Led by Francisco Acuña (P. Eng.), Alvaro Florez (LLB) and Thomas Eggers

• Leading consulting firm with existing relationships throughout South America

• Led by a Chile based management team

37

Page 38: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Capital Structure

As of May 1, 2019

Issued & Outstanding 140,385,960

Reserved For Issuance 71,371,754

Fully Diluted 211,757,714

38

Page 39: MGX Minerals is leading the transition from fossil fuels to … · 2019-12-18 · presentation. Forward-Looking Statements. ... MGX and Eureka Resources Enter JV Agreement to Install

Invest In The New Energy Economy

MGX Minerals Inc.

CSE: XMG / OTCQB: MGXMF / FKT: 1MG

Further Information:

Mr. Jared LazersonPresident and CEO

Phone: 1.604.681.7735Web: www.mgxminerals.com