TEJAMEN - Mantos Developing Silver and Gold Resources in...

TSX.V-MMNSeptember 30, 2016 1

TEJAMEN - Mantos

Developing Silver and Gold Resources in Mexico

Forward Looking Statement

September 30, 2016 2

• This presentation is prepared by Monarca Minerals Inc. (MMN – TSX.V) Management of Monarca are solelyresponsible for content and format. Management has compiled this presentation from industry informationand 43-101 reports and news releases with specific underlying Qualified Persons as set out in the Releasesand reports. Industry Information has been compiled from publically available sources and may not becomplete, up to date or reliable.

• This presentation contains forward-looking statements within the meaning of Canadian and U.S. securitieslaws. Such forward looking statements are subject to risks and uncertainties which could cause actual resultsto differ materially from estimated results. Such risks and uncertainties include, but are not limited to, theCompany’s ability to raise capital to fund development and exploration, changes in general economicconditions or financial markets, changes in metal prices, general cost increases, litigation, legislative,environment and other judicial, regulatory, political, competitive developments in Mexico, technological andoperational difficulties or inability to obtain permits encountered in connection with The Company’sexploration activities, community and labour relations matters and changes in foreign exchange rates, all ofwhich are described in more detail in the Company’s filings with the Canadian Securities Regulators.

• This presentation is for information purposes only and is not a solicitation. Please contact the Company forcomplete information and consult a registered investment representative / advisor prior to making anyinvestment decision.

• Investors are urged to consider closely the disclosure in Monarca’s annual and quarterly reports and otherpublic filings, accessible through the Internet at www.sedar.com

• Although the Company believes its properties have promising potential, its properties are in the earlystages of exploration. None have yet been shown to contain proven or probable mineral reserves. Therecan be no assurance that such reserves will be identified on any property, or that, if identified, anymineralization may be economically extracted.

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http://www.sedar.com/

Oremex Silver Inc. was renamed Monarca Minerals Inc. in Q3, 2016

•Tejamen project has a NI 43-101 inferred resource of 28.7 million troy ounces of Ag (15ppm cutoff), contained in 19.8 million tonnes @ 45 g/t Ag

•San Lucas provides significant exploration potential for Ag, Au and base metals, with drillhole results up to 527ppm Ag

•El Sol provides significant exploration potential for Ag, Au and base metals, with surface mine dump assays up to 358ppm Ag, 1.95ppm Au, 19.6% Zn and 22.6% Pb•All projects are in mining and capital-friendlyjurisdiction of Durango•Experienced board and management team

Company Overview


Focus on the exploration and development of silver and gold projects along the highly productive mineralized belt that made Mexico the largest silver-producing

country in the world

San Lucas Au/Ag VeinTSX.V-MMN

FRANK HOGEL, CHAIRMAN & DIRECTOR:Mr. Hogel serves as Chief Executive Officer of Peter Beck Performance Funds and sits on the advisory board of Concept Capital

Management Ltd. He has an MBA degree from the University of Nurtingen, Germany and is Chairman of Nicola Mining (TSX-V “NIM”)

ALLAN FOLK, INTERIM CEO & DIRECTOR:Mr. Folk has spent 30 years in the Investment Industry. During that period he has helped finance numerous Junior Mining companies.

He is Chairman of Atlanta Gold Inc., Director of Barkerville Gold and Vice President of Brant Securities. He received a BBA from the University of Wisconsin in 1972.

MICHAEL R. SMITH – PRESIDENT & QUALIFIED PERSONMr. Smith has 38 years of experience in the mining, working for Barrick Gold, Continental Gold, Oremex Silver and continues to provide Qualified Person services. He is an SME Registered Member, ID 4167376RM. He graduated from Arizona State University in 1979 (BS)

and the Mackay School of Mines in 1981 (MS) in Geology. Mike lives in Mexico and is fluent in Spanish.

JAMES McVICAR – DIRECTORMr. McVicar is a senior partner of Peterson McVicar LLP in Toronto with 20 years of experience focused in corporate finance and mining

law. He previously spent close to three years as legal counsel in the Corporate Finance Branch of the Ontario Securities Commission (OSC) and later in his career was appointed to the OSC's Securities Advisory Committee for a 2 year term.

CARLOS ESPINOSA – DIRECTORCarlos Espinosa, has 25 years of experience with international business development, Canadian Capital markets and commercial

banking. He was the Head of Business Development, Global Mining at the TSXV and former Deputy Trade Commissioner of Mexico, inToronto. He holds an MBA from Kellogg School of Management at Northwestern University and a BBA from Univesidad Nacional

Autonoma de Mexico and is fluent in Spanish.

BRUCE REILLY – CFOMr. Reilly is a graduate of the University of Toronto with a Bachelor of Commerce degree, and is a Chartered Accountant (1985). For the past twenty plus years, Bruce Reilly has successfully developed and managed a chartered professional accounting firm. Mr. Reilly

also sits on the Board of Platinex Inc. (TSX-V "PTX”) and iSign Media Solutions (TSX-V “ISD)

Board of Directors & Management

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Stock Information

• TSX-V SYMBOL - MNN• Basic Shares Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146.5 million• Stock Options Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 million

0.1Million @ $0.19• Warrants Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.1 million

20.9Million - Exercisable @ $0.10 expiry Oct 2017 (Conv. Debenture)6.2Million - Exercisable @ $0.10 expiry Oct 2017

• Fully Diluted Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173.7 million• Basic Market Cap @ $0.05 . . . . . . . . . . . . . . . . . . . . . . . . . . . $7.32Million• Major Shareholders

Sprott Asset Management

Concept Capital Management

September 30, 2016 5TSX.V-MMN

Tejamen

El Sol

San Lucas

Project Portfolio


TEJAMEN (Durango State)• Flagship property with a NI 43-

101 inferred resource of 28.7 million troy ounces of Ag (15ppm cutoff), contained in 19.8 million tonnes @ 45ppm Ag

• Excellent potential to expandresource

SAN LUCAS (Durango State)• Excellent exploration potential

EL SOL (Durango State)• Excellent potential to extend

Southern Silver’s Blind/El Sol zone onto concession with geophysical anomaly (IP) continuation

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Project Locations - Durango State


• Monarca’s projects are located in an area of Mexico renowned for major Ag, Au and base metal deposits.

• The area has a long mining history dating back to early colonial times.

• The area has significant infrastructure and transportation systems with local mining expertise.

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Tejamen: 43-101 Resource


Key silver valuation component and flagship project• Monarca owns 100% mineral rights

and surface access in progress• NI 43-101 Inferred Resource of 28.7

million troy ounces of Ag (15ppm cutoff), by Gustavson Associates

• NI 43-101 Inferred Resource of 19.8 million tonnes @ 45ppm Ag

• 215 RC holes (36,139m) and 10 core holes drilled between 2003 and 2008

• Los Mantos remains open to the south, east and at depth in high grade veins

• Significant exploration upside in feeder veins beneath both Los Mantos and Cerro Prieto deposits, grades of to 6m of 1,400ppm Ag, with about 5% Pb & Zn

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Tejamen: Deposits & Drilling


• Completed 36,139m of drilling

• Defined 2 primary Ag deposits: Los Mantos and CerroPrieto

• Los Mantos drill result highlights :• Hole MMT-141:

80m at 417 g/t Ag• Hole MMT-101:

89m at 621 g/t Ag

Cerro Prieto Upper

Cerro Prieto Lower

Los Mantos

Los Mantos

Cerro Prieto

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Tejamen: Satellite Image


• Located close to Tejamen pueblo with 400 people

• Nearby town of Nuevo Ideal provides basic services

• Power and water available

• Year-around access with low topographic relief

• Moderate climate conditions

• 1.5 hours by highway north of Durango, Mexico

Cerro Prieto Area

Los Mantos Area

Mineralized ZoneRepresentative Outline

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Tejamen: Deposit Model Section


Opportunity for upside to expand the resource by drilling the South and Eastern extensions of Mantos and high gradefeeder veins and mantopotential at depth

US$1,500,000 core drilling program proposed over 2 years

SECTION FROM WARDROP

ENGINEERING

Section from Gustavson Assoc. Block Model

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Tejamen: Exploration Potential


LOS MANTOS FEEDER VEIN INDICATIONS

TJBD - 6 166 -172m 6.00 1,400 Ag

(ppm)MMT - 149 168 -170m 2.00 448 Ag

MMT -150 134 – 136m 2.00 1,355 Ag

MMT -142 160 – 162m 2.00 806 Ag

MMT - 156 110 – 112m 2.00 773 Ag

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13

Full Government Support

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• Full support from the three levels of the government: For the last few months Board members and Officers have been meeting with the General Coordinator of Mining and the General Director, Mining Development, from the Ministry of Economy, as well as Cabinet members of the new government of the State of Durango and the new Mayor of the municipality of Nuevo Ideal, where Tejamen project is located

• State and municipal governments are pro mining, they were elected on June 5th, 2016 and both of them are from the same party; Partido Accion Nacional (PAN) and their term is six years for the Governor and three years for the Mayor

• By invitation of the Elected Governor of the State of Durango, Mr. Jose Rosas Aispuro, on September 15th 2016 Board members and Officers attended the ceremony of “Toma de Posesión” equivalent to Oath of Office

• We are building the foundation with the Mexican government; next step is to develop a closer relationship with the community

September 30, 2016

El Sol Overview

• Surface sampling at El Sol (old mine dumps) of up to 358ppm Ag, 1.945ppm Au, 19.6% Zn and 22.6% Pb.

• One hole has been drilled (Southern Silver Exploration [SSV], 13CLM-072) and returned 0.3m (102.5 – 102.8m depth) at 87ppm Ag, 1.88% Pb, 1.01% Zn and 0.11% Cu.

• A strong chargeability anomaly runs along the eastern side of the El Sol concession, possibly indicating the presence of sulfide mineralization and northward extension of SSV’s Blind/El Sol Zone.

• A strong aeromagnetic anomaly is located at the northwestern portion of the El Sol concession, possibly indicating the presence of a mineralizing intrusive.

• An exploration program for 2017 is proposed, consisting of 4-6 holes (total 1500m) to cost US$300,000.

• Possible Joint Venture opportunity

•


El Sol Ground Magnetic/IP Geophysical Survey

IP Chargeability Anomaly

El Sol Concession

Buried Mineralizing

Intrusive?

Southern Silver Blind/El Sol Zone

IP Chargeability Anomaly & Primary Drill Target


San Lucas Overview

• Two parallel vein structures have been identified in the 3km long mineralized Main Shearzone.

• 79 historical RC holes have been drilled, ranging from about 32m to 259m and averaging158 m in depth.

• Drilling results include up to 2m at 527ppm Ag, with Zn and Pb over 1% (MMSL-46;154m-156m depth).

• And up to 22.9m at 0.78ppm Au and 12.7ppm Ag (SL11-11 500 165 - 240 ft depth).• Exploration upside in the El Doctor vein area (Noche Buena) in outcrop channel sampling

(up to 1.4m at 110ppm Au and 168ppm Ag).• Luismin obtained some very high grade underground sampling results, with up to 256ppm

Au and 391ppm Ag, over 0.55m.• Potential exists for the principal veins below previous drilling depths, where the base of

the volcanic host rocks encounter schist, phyllite and limestone. The sub-volcanic rocksremain untested on the Main Shear areas, where there is significant potential for largemanto deposits.

• A 2005 43-101 compliant Technical Report (Richards) states that a “centre ofmineralization exists in the northern portion of the Main Shear” and that this is an“expression of manto style mineralization at depth”, in underlying carbonate rocks.

• An exploration program for 2017 is proposed with estimated cost is US$850,000.• Consolidate San Lucas land package


San Lucas Drillhole Map


• Drilling results include up to 2m at 527ppm Ag, with Zn and Pb over 1%

• Seventy-nine RC holes have been drilled at San Lucas

• Generally to depths of less that 200m

• Manto potential below 200m in untested vein areas

• Luismin obtained some very high grade underground sampling results, with up to 256ppm Au and 391ppm Ag, over 0.55m.

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Why Monarca Minerals?

• Strong Board to deal with securing the surface rights to Monarca’s flagship property, Tejamen.

• Michael R. Smith, President, QP, 23 years of experience in Latin America, fluent in Spanish, brings broad expertise in mining project discovery and development

• Activities underway to secure new properties for development, emphasizing short term production potential.

• Recently elected local officials are in favour of developing mining projects.

• February 2016 updated 43-101 Resource of 28.7 million silver ounces with excellent resource expansion potential and exploration upside.

• Improving Precious Metal prices.

• Metal value at $20 silver of US$575Million.

• Low Market Capitalization.

Contact

Office:Peterson McVicar LLP

806-390 Bay St.Toronto ON

Attn: James McVicar

Durango OfficeMiguel Gutiérrez No. 259Fracc. Domingo Arrieta

Durango, DGO., C.P. 34180

Website: www.monarcaminerals.com

Interim CEOAllan Folk

[email protected]


http://www.monarcaminerals.com/mailto:[email protected]

Slide Number 1Forward Looking StatementCompany OverviewBoard of Directors & ManagementStock Information Project PortfolioProject Locations - Durango State Tejamen: 43-101 ResourceTejamen: Deposits & DrillingTejamen: Satellite ImageTejamen: Deposit Model SectionTejamen: Exploration PotentialFull Government SupportEl Sol OverviewSlide Number 15San Lucas OverviewSan Lucas Drillhole MapWhy Monarca Minerals?Contact�

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