An Emerging Zinc Play - PasinexPinargozu Zinc Mine Operating Results 35% Q2 2019 Six Months Ended...

An Emerging Zinc

Play

September 2019

Corporate PresentationCSE: PSE | FSE: PNX

The information contained in this presentation is provided by Pasinex Resources Limited. (“Pasinex”) for informational purposes

only and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer to issue, securities of Pasinex or

other financial products. The information contained herein is not investment or financial product advice and is not intended to be

used as the basis for making an investment decision. The views, opinions and advice provided in this presentation reflect those of

the individual presenters, and are provided for information purposes only. The presentation has been prepared without taking into

account the investment objectives, financial situation or particular needs of any particular person. No representation or warranty,

express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and

conclusions contained in this presentation. To the maximum extent permitted by law, none of Pasinex nor its directors officers,

employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or

negligence, for any loss arising from the use of the information contained in this presentation. Except for statements of historical

fact, this presentation contains certain “forward-looking information” within the meaning of applicable securities laws. Forward-

looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”,

“estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking

statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a

variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those

anticipated in the forward-looking statements, including, among others, the accuracy of mineral grades and related assumptions,

planned expenditures, proposed exploration and development at the the Horzum Zinc / Lead Project and the Spur Zinc / Lead /

Silver Project. Pasinex undertakes no obligation to update forward-looking information if circumstances or management’s

estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-

looking statements.

This presentation includes industry, market and competitive position data from industry journals and publications, data on

websites maintained by private and public entities, including independent industry associations, general publications and other

publicly available information. Pasinex believes that all of these sources are reliable, but we have not independently verified any

of this information and cannot guarantee its accuracy or completeness. Industry publications and surveys generally state that they

have obtained information from sources believed to be reliable, but do not guarantee the accuracy and completeness of such

information. Further, because certain of these organizations are industry organizations, they may present information in a manner

that is more favorable to the industry than would be presented by an independent source. In addition, forecasts are often

inaccurate, especially over long periods of time. References in this presentation to research reports or articles should not be

construed as depicting the complete findings of the entire referenced report or article. The information in each report or article is

not incorporated by reference

into this presentation.

Investors are advised to refer to additional information including quarterly Financial and Management Discussion and Analysis

(MD&A) which is available through the website www.pasinex.com

Disclaimer

Pasinex Resources Limited | CSE: PSE | FSE: PNX

http://www.pasinex.com/

Pasinex Overview


Exploration drill program on

Akkaya Project.

45,757 wet tonnes zinc material

produced in 2018 from Pinargozu. Profitable operations with over 60%

gross margin in Q2 of 2019.

On target to achieve 2019 guidance

of 18,000-20,000 wet tonnes mine

material.

Large land position in a CRD zinc

district in Turkey.

SEDEX style intersection on Spur

Zinc Project in Nevada.

2019 is a transition year with a mine development program to open up deeper zinc

mineralization at Pinargozu in Turkey. This is expected to be in production in 2020.

Zinc Production & Exploration in Turkey and the US

Pasinex Resources Ltd.

have Zinc Projects on two

continents

High Grade Zinc Carbonate

Production & Exploration at

Pinargozu Zinc Mine,

Turkey 50/50 JV


UNITED STATES

TURKEY

NEVADA

High Grade Zinc Carbonate

Exploration at

Akkaya Zinc Project,

Turkey 50/50 JVHigh Grade Zinc Carbonate

Exploration Project Spur,

White Pine County, Nevada

80% Earn In over 4 years

Pasinex Corporate Profile

Capital StructureCSE:PSE; FSE:PNX

Shares Issued and Outstanding

Share Price (September 10th, 2019)

Market Capitalisation

144,354,370

$ 0.03

$ 4.33 M

Warrants

Options

None

5.35 M

20%

45%

35%

Directors &

ManagementOther

Shareholders

Other Top 20

Shareholders

Shareholders


Pasinex Management & Board

Steve WilliamsPresident & CEO

Metallurgy degree and MBA, Mines in

Australia and Canada, 20 years with

SGS in Metallurgy, Past Managing

Director SGS Canada

Andrew GottwaldCFO

CPA, CA with over twenty years of

experience in the financial services

industry, including senior management

positions with various publicly listed

mining companies.

Evan WhiteManager, Corporate Communications

11 years in marketing in the mining sector

Dr. Larry SeeleyBoard Member

Ex-VP Falconbridge Mining,

Ex-President Lakefield Research

Vic WellsBoard Chairman

Financial expert was CFO / Director for a

number of junior exploration companies

Joachim RainerBoard Member

20 years in entrepreneurial finance in Austria

Jonathan ChallisBoard Member

Mining engineer with many

Directorships and senior roles with

juniors


Growing a pure play Zinc Company

35%

❖ New discovery of zinc sulphide in black shales beneath

high-grade zinc oxides in Nevada

❖ Two drill rigs currently drilling at Akkaya Zinc Exploration

Project in Turkey. Targets along strike from Pasinex’s

Pinargozu high-grade zinc oxide mine

❖ Pasinex owns 50% of the Pinargozu Mine which is an

exceptionally high grade zinc mine near Adana, Turkey.

❖ Approximately 43,709 wet tonnes of zinc oxide produced in

2018; 2,048 wet tonnes of zinc sulphide.

❖ 2019 production to June 30th was 11,080 wet tonnes at

33% Zn

❖ District & regional exploration opportunity in a world class

zinc district in Turkey.

❖ Investors should refer to information on Pasinex through our quarterly Financial

statements and Management Discussion and Analysis (MD&A) available

through the website www.pasinex.com


http://www.pasinex.com/

Pinargozu Zinc Mine Operating Results

35%

Q2 2019 Six Months Ended June 30, 2019

Horzum AS – Reporting as 100%

Zinc product produced (wet) tonnes 4,293 11,080

Zinc product sold (wet) tonnes 2,397 10,056

Zinc product sold grade 46% 33%

Cost Per Tonne Mined (CAD)* $403 $318


Operating results for Quarter 2 and the First Half of 2019

*Non-GAAP measures.

Pasinex Financial Results – Q2 2018

35%

Q2 2019 Q2 2018

Pasinex Resources Limited

Adjusted Equity Gain $333,363 $1,805,685

Consolidated Net Income (loss) $(108,609) $930,193

Dividend Received from Horzum AS $286,383 $377,370

Zinc Price US $1.23 US $1.55


Year-Over-Year Comparison (Canadian Dollars)

Spur Zinc Project, Nevada [Exploration]

35%

❖ Small drill programme confirms high-

grade zinc oxides and leads to new

discovery of deeper zinc sulphides

❖ Possible high-grade Eureka-style CRD

system and potential for a major shale-

hosted-massive-sulphide (SHMS) deposit

beneath

❖ Verified high grade zinc oxides:

❖ 43.9 metres @ 14.2% zinc

❖ 13.7 metres @ 26.1% zinc and 5.6

ounces of silver

❖ Earn in option agreement whereby

Pasinex can earn to up to 80% interest in

the project based on payments and

exploration commitment


White Pine County,

Nevada, USA

Exciting new zinc sulphide discovery beneath an old high-grade zinc prospect

Why are Shale-Hosted Zinc Deposits Important?

❖ Black Shale is a highly unusual host

for CRD mineralization. SHMS

deposits are highly significant for

exploration

❖ Shale-hosted massive sulphides zinc

deposits (SEDEX or SMHS) are not

common but are large, hosting over

18% of the world’s zinc

❖ Four of the five largest zinc mines and

deposits globally are shale hosted.

Examples: Red Dog, Sullivan, Selwyn,

McArthur River, Hilton

Summary Highlights of Drill Assay Results


Nevada,

White Pine County

Drill Hole # Core Length

Interval Metres Zn Grade % From (metres) Mineralization

SRDD-2018-001Including

43.89

13.72

14.2

26.1

43.28

48.77

Oxide in Limestone

Oxide in Limestone

SRDD-2018-002 0.61 10.8 60.96 Oxide in Limestone

SRDD-2018-004 1.5 4.3 85.65 Oxides in Fault Zone

SRDD-2018-004 2.74 8.1 88.1 Sulphide in Black-Shale

SRDD-2018-004 3.35 5.7 92.6 Sulphide in Black-Shale

A Closer Look at Black Shale & Drill Hole SRDD_2018_04

4.3% Zinc8.1% Zinc5.7% Zinc

200

Metres

Pinargozu Zinc Mine

& Akkaya Zinc Project

35%

❖ Red area indicates prospect for

zinc district in southern Turkey

where Pasinex operates

❖ Infrastructure is strong in

Turkey. The key to Pasinex

being able to ramp up quickly to

production was because of

readily available infrastructure

❖ Access to major roads, port

(Mersin), major airport (Adana),

HV electrical


Pinargozu Zinc Mine &

Akkaya Exploration Project

Route to Port

Tufanbeyli Zinc District

Yahyali Zinc District

Bolkar Zinc District

ADANA

MERSIN PORT

Zinc in the Taurus

Mountains

35%

Main city of Adana –

2.2 million

Port of Mersin –

2½ hours away

HV power available

Water available


JV Area

of Interest

Pinargozu &

AkkayaHorzum

Mottled LimestoneNodular Limestone

Surface Lithology Map of Pinargozu & Akkaya properties

35%


❖ Purple indicates White Marble host-rock

❖ Favourable structural settings coincident

with the White Marble host-rock

❖ This process of identifying the White

Marble host-rock has generated

compelling drill targets

Shale Siltstone

Grey LimestoneMarble

Dolomitic Limestone

DolomiteQuartziteSiltstoneChaotic UnitMafic Rocks

Quaternary

Pinargozu

Pinargozu Zinc Mine [Production &

Exploration]

35%

❖ Strong Mine Operating Profit margin (61% in H1 of 2019)

❖ Dividends being received

❖ Selling Direct-Shipping “natural concentrate” on spot (no

long term contracts)

❖ Producing mine with ultra high grade zinc

❖ 32% zinc in the Oxides

❖ 42% zinc in the Sulphides

❖ Pinargozu is a new discovery made in 2013

❖ Exploration underway to expand the resource

❖ Growing expertise in recognizing other high-grade zinc

properties like Pinargozu


Pinargozu Development

35%

❖ Four adits from hillside now operating – a fifth adit in

development

❖ 2018 production of 45,717 tonnes of DSO concentrate

❖ 2019 production guidance of 18,000 – 20,000 tonnes of

DSO concentrate predominately sulphide ore

❖ 2019 production to 30th June was 11,080 tonnes (wet)

❖ A mine development program is underway to reach the

deeper sulphide zone – expected on line in 2020

❖ Over 6.0 kilometres of underground development

❖ 200 miners & engineers are working at Pinargozu

❖ Mine safety standards priority focus


Pinargozu Production from Multiple Faces

❖ New Adit Project at 550 Level in development

❖ Plan view of mineralization predominantly zinc

carbonates (oxides) and zinc sulphides shown in

red area; underground workings shown in other

colours

❖ Cut and fill mining method

❖ Production is 85% oxide / 15% sulphide

production of DSO grade material


811 Level

663 Level

550 New Adit Project

Pinargozu Production Profile

35%


2014 2015 2016 2017 2018

6,731

10,224

31,148

57,625

45,757

60,000

50,000

40,000

30,000

20,000

10,000

0

2019 Projection

18,000 – 20,000

Exploration Conceptual Model

35%

❖ Carbonate replacement type

Zn - geological model

❖ Current Pinargozu operation

is high up in the “manto” –

could be a deep system; lots

of exploration opportunity

❖ Skarn opportunity


Early in and high

up in the manto

system

Regional Exploration in Turkey

35%


❖ The Pinargozu

carbonate replacement

zinc project is similar to

CRD deposits in Mexico

such as Naica

❖ Pinargozu, Akkaya and

region

❖ Near mine areas –

exploring the strike

extension of

hydrothermally altered

marbles.

❖ There is potential in the

district to find more

properties like

Pinargozu

Pinargozu Mine

Pinargozu Ore Surface ProjectionCambrian Carbonates

Zn-Pb Occurances along to HZT

HZT: Horzum Trend

Marble Alteration

Second Order

HZT Splay

Zinc 101

35%

❖ Uses of zinc:

❖ Galvanizing of Steel (making it rust proof)

❖ Car bodies, street lamp posts, safety

barriers, suspension bridges

❖ Health:

❖ Sunscreen and vitamins

❖ Zinc Oxides

❖ Paints, rubber, cosmetics, pharmaceuticals,

plastics, inks, soaps, textile

❖ Die-casting

❖ Electrical equipment

❖ China is a major consumer

❖ Strong zinc price over the last year

❖ Stocks of Zn continue to drop

❖ What’s going to happen to zinc in the next 5 years?

❖ Battery opportunity


Contact Details

35%


Canada Main OfficePasinex Resources Limited

82 Richmond St. E.

Toronto, ON M5C 1P1

Tel +1 (416) 861-9659

Adana Office, TurkeyZeytinli Mah.

Turhan Cemal Beriker Blv.

No 607 / A Seyhan, Adana

Corporate CommunicationsTel +1 (416) 906-3498

[email protected]

General [email protected]

PASSION IN EXPLORATION

“The way to build a zinc company is one mine at a time” - Steve Williams

An Emerging Zinc Play - PasinexPinargozu Zinc Mine Operating Results 35% Q2 2019 Six Months Ended...

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