TSX: AQA

AQUILA RESOURCESNorth America’s Next Zinc Producer

TSX: AQA

Investor Presentation | January 2018TD Securities Mining Conference

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Disclaimer

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This presentation contains certain forward-looking statements within the meaning of applicable Canadian securities legislation. In certain cases, forward-looking

statements can be identified by the use of words such as "plans", "expects" 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" and similar expressions suggesting

future outcomes or statements regarding an outlook.

Forward-looking statements relate to any matters that are not historical facts and statements of our beliefs, intentions and expectations about developments,

results and events which will or may occur in the future, which out limitation, statement with respect to: (i) the economic analysis contained in the PEA; (ii) the

development plan of the PEA and results thereof; (iii) capital expenditure programs; (iv) the quality or quantity of the mineral resources subject to estimates by

Aquila; and (v) work plans to be conducted by Aquila.

These and other forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the

ability of Aquila to control or predict, that may cause their actual results, performance or achievements to be materially different from those expressed or implied

thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein. Aquila expressly disclaims any obligation to

update forward-looking information except as required by applicable law. Such forward-looking information represents Aquila’s best judgment based on

information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised

not to place undue reliance on forward-looking statements or information. Furthermore, mineral resources that are not mineral reserves do not have

demonstrated economic viability.

Thomas O. Quigley, Vice President of Exploration for Aquila Resources, is the Qualified Person for the Company as described in National Instrument 43-101 and isresponsible for the contents of this presentation.

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Advancing development of 100%-owned Back Forty project

Well-established mining jurisdiction

Granted 3 of 4 Final Permits

Favorable metal exposure to Zinc and Gold

Exploration upside:-Near deposit-Prospective projects in Wisconsin

Funded through pre-construction, strong shareholder base

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Investment Highlights

TSX: AQA | INVESTOR PRESENTATION

Back Forty: The next low-cost zinc mine

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• High-grade, poly-metallic assets in the Upper Peninsula:

• Back Forty - Gold and Zinc - Permitting• Aquila Nickel - Nickel, PGM - Exploration

• Located along the Penokean Volcanic Belt

• Michigan’s mining resurgence supported by permitting and acquisition activity

• Michigan issues all required permits

• Aquila granted Mine Permit Q4 2016

• Secondary projects located in Wisconsin:

• Bend - Copper-Gold - Exploration• Reef - Gold – Exploration

Primary focus is Upper Midwest

Well-established Jurisdiction with Long History of Mining

Lake Superior

BENDREEF

BACK FORTY

Upper Peninsula

MichiganWisconsin

IllinoisIndiana

Ohio

LakeMichigan

PENOKEAN VOLCANIC BELT

OTHER MININGPROJECTS

MIDCONTINENTRIFT SYSTEM

Copperwood Mine

White Pine Mine Eagle Nickel/Copper Mine

Flambeau Mine Crandon Deposit

AQUILA NICKEL

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>$85MUS

Invested to date on:• Exploration• Technical reports• Land acquisitions• Permitting activities• Engineering

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Back Forty | Flagship Project

• 100% owned Zinc- and Gold-rich deposit

• Re-acquired from Hudbay in Q1 2014

• New PEA completed in Q3 2014

• Advancing with permitting• Granted Mine Permit Q4 2016

• Feasibility study in progress

• New mineral zone discovered in Q3 2016 through 10-hole drill program

• 4,600 meter drill program completed in 2017 (infill, step out, and expansion)

The Next Low-cost Zinc Mine

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Back Forty | PEA Economics*

Strong PEA Results Pave the Way for Feasibility Study

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• PEA includes 2013 resource estimate

• Contemplates mining 16.1Mt over 16 years • 12.5Mt open-pit• 3.6Mt underground

• Average OPEX of $29.25/tonne for open-pit & $66.20/tonne for underground

• Total estimated initial capital cost of $261M • $177M direct pre-production CAPEX; • $44M contingency; and,• $40M of indirect and owner’s costs.

Pre-Tax After-TaxNPV @ 6%

$282.2M $210.8M

IRR

38.8% 32.0%

Payback Period

1.4 years 1.8 years

*Completed July 2014 . PEA Metal Prices: Gold: $1,293/oz; Zinc: $0.96/lb; Silver: $20.46/oz; Copper: $3.18/lb; Lead: $0.96/lb

The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment will be realized.

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Back Forty | PEA Production Highlights

Diverse Revenue Streams Provide Natural Hedge

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Production Parameters

Mine Life 16 years

Throughput 5,350 tpd (open pit)

Strip Ratio LOM 3.86

Total Payable Production

Gold 532K oz

Zinc 721M lbs

Copper 74M lbs

Silver 4,645K oz

Lead 21M lbs

Cu 14% Pb 1%

Zn 40%

Au 40%

Ag 5%Revenue by Metal

Cu concentrate

37%

Pb concentrate 9%

Zn Concentrate

34%

Au/Ag Dore20%

Revenue by Product

Benefits of polymetallic deposits

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~90% of Resources are in M&I Category

Back Forty | Mineral Resources*

*Mineral resources are not mineral reserves and do not have demonstrated economic viability. NSR cut-off values for the 2013 resource estimate were based on metal price assumptions of US$0.96 per pound zinc, US$3.65 per pound copper, US$1.01 per pound lead, US$1456.36 per troy ounce gold and US$27.78 per troy ounce silver. Metallurgical recoveries were determined and applied for each of the metallurgical domains determined for the deposit. Cut off values were determined for each of the metallurgical domains contained in the optimized open pit were based on NSR values. Average cut-off value for the open-pit resource contained within an optimized pit shell was US$27.75. Cut off values were determined for each of the metallurgical domains based on NSR values. Average cut-off value for the underground resources outside of the optimized pit shell was US$66.45. Refer to the February 4, 2013 press release for full cautionary language and disclosures.

Category Tonnes Au (g/t) Ag

(g/t) Cu (%) Pb (%)

Zn

(%) Au (oz) Content

Zn (lbs)

Content

Measured 6,700,000 2.16 27.30 0.47 0.18 3.95 465,000 583,000,000

Indicated 8,430,000 1.92 22.24 0.22 0.26 2.36 520,000 439,000,000

M&I 15,130,000 2.03 24.48 0.33 0.22 3.06 985,000 1,022,000,000

Inferred 2,340,000 2.07 26.53 0.36 0.33 2.20 156,000 113,000,000

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Back Forty | Post-PEA Improved Recovery Rates

Improvements Contribute to Stronger Project Economics

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Average Metallurgical Recovery*Ore Type PEA Recovery % New Recovery %

Zn** 91.1% 93.0%

Au** 61.3% 63.3%

Ag** 48.1% 55.5%

Pb** 37.3% 41.1%

Cu** 80.4% 79.9%

*As calculated using 2016 Metallurgical Test Program data applied to 2016 PEA mine plan . **Values are weighted averages of ore types where the specified metal is recovered

4Product streams:• Zinc concentrate • Gold – Silver doré• Copper concentrate • Lead concentrate

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• Granted 3 Final Permits to date

• Nonferrous Metallic Mineral Mining Permit (Part 632) (Q4 2016)

• Air Use Permit to Install (Q4 2016)

• Pollutant Discharge & Elimination System Permit (NPDES) (Q1 2017)

• Wetlands Protection Permit Application in process

• State issued permit

• EPA and U.S. Army Corp of Engineers have 90-day review period

• Deemed administratively complete in December 2017

• Public comment period closes February 2, 2018

Implementing strategic approach to Permitting, Exploration and Feasibility Study activities

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3 of 4 Final Permits Granted

Back Forty | Permitting Update

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Potential to Extend Mine Life and Improve Project Economics

• Complete permits and Feasibility Study for open-pit only

• Continue to evaluate underground mine plan and timing

• Continue to drill and better define underground

• Ore body open at depth

• Seek underground permit amendment post-construction

• Continue exploration programs and drill satellite targets

TSX: AQA | INVESTOR PRESENTATION

Back Forty Development Strategy

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Investment by Osisko• US$10M equity private placement • US$55M gold stream with staged payments:

-US$7.5 million on closing (received Nov. 10, 2017)

-US$7.5 million on receipt all material permits and receipt of a positive feasibility study

-US$10 million following a positive construction decision for Back Forty

-US$30 million upon the first drawdown of a project debt finance facility

Key Gold Stream Terms • Osisko will purchase 18.5% of the refined gold from Back Forty until 105,000 ounces of gold

have been delivered-Thereafter the percentage will be reduced to 9.25% of the refined gold

• Ongoing payment: Osisko will pay the Company 30% of the spot price of gold on the day of delivery, subject to a maximum payment of US$600 per ounce.

Provides funding to complete Back Forty pre-construction activities and a significant portion of the upfront capital

US$65M Financing with Osisko Gold Royalties

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VMS Deposits Occur in Clusters

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• Infill & Step Out• Expand known resource• Convert inferred resources to measured

and indicated categories• Deep drilling to define high grade gold

and massive sulfide zones

• Expansion• Follow up on 2016 success that identified

a new mineral zone 500 meters from Back Forty deposit

• 2017 highlights include:• 0.96 g/t Au, 29 g/t Ag, 0.33% Cu, and

20% Zn over 11.4 meters in GT-11• 1.27 g/t gold, 15.78 g/t silver, 12.17%

zinc over 7.09 meters in LK-17-537

Exploration Program | 2017 Drill Highlights

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Intercepts at depths of >700m provide opportunity for expansion and connection to main deposit

Back Forty | Main Deposit Open at Depth

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Bend Copper-Gold Project• 100%-owned VMS occurrence located in the Penokean Volcanic Belt

• >14,000 meters of historical drilling delineating a non-43-101 compliant resource*

• 2.7 M tonnes grading 2.4% copper, 1.4 g/t gold and 13.7 g/t silver in copper zone

• 1.12 M tonnes grading 4.7 g/t gold and .31% copper in gold zone

• Aquila drilling in 2012 indicates major expansion

Reef Gold Project • 100%-owned, high- grade gold mineralization potentially amenable to low-cost, open-

pit mining

• Historic drilling delineated a non-43-101 compliant resource* of 140,564 contained gold ounces (412,410 tonnes @ 10.6 g/t)

• Phase III drill program to expand and define resource

• Aquila drilling shows broad zones of gently-dipping mineralization open in all directions*The Company is not treating the historical estimates as current mineral resources or mineral reserves and the historical estimates should not be relied upon or understood to indicate the existence of reserves or resources.

Attractive Pipeline of Projects in Highly Prospective District

Next Generation Assets in Wisconsin

New Mining Law

Approved December

2017

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Management

Barry Hildred, CEO - Currently Chairman of Children's Aid Foundation of Canada. Founder and Former President of TMX Equicom. 20+ years of capital markets experience.

Andrew Boushy, P.Eng, VP Project Development - Previously with AusencoCanada, Mining and Minerals, Xstrata Nickel, Kinross Gold and Hatch Africa. 25+ years of experience in project delivery, engineering design, strategic planning, contract management, construction and operational improvement.

Stephanie Malec, CFO - 15+ years of experience combining accounting, financial reporting, public markets and mining sector work. Previously with Malbex Resources, Starfield Resources, Dundee Precious Metals, Falconbridge and PriceWaterhouseCoopers.

Jeff Lynott, P.Geo., Director of Exploration - Over 30 years of experience in mineral exploration, mine development, environmental site investigations and reclamation. Qualified Person for the Back Forty Project.

Chantae Lessard, Director of Social Engagement and Performance - 20 years of experience in the mining industry, most recently as Manager Corporate Social Responsibility, providing support and technical oversight to Lundin Mining operations in North America, Chile, Spain, Portugal, and Sweden.

David Anderson, Director of Environment and Regulatory Affairs - 25 years of experience in environmental monitoring, impact assessment, regulatory affairs and permitting, and most recently served as the Director of Environment for Highland Copper’s Copperwood project.

Dave Carew, Director of Corporate Development & Investor Relations –Former VP Corp. Dev. & IR at Aldridge Minerals and previously a mining industry-focused investment banker. 10+ years of capital markets experience.

Committed to Unlocking Aquila’s Potential

Management Team| Experienced & Committed

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Directors

Edward Munden, Chairman - Currently a Director and Co-Founder of private investment company and a Director of Mustang Minerals. Co-founded a NASDAQ-traded energy company and held senior positions until it was sold in 2001, 35+ years of experience in energy, mining and technology industry.

Barry Hildred, CEO – Currently Chairman of Children's Aid Foundation of Canada. Founder and Former President of TMX Equicom. 20+ years of capital markets experience.

Peter M.D. Bradshaw - Currently a Director with First Point Minerals, 45 years of international mineral exploration experience in over 30 countries with Barringer Research, Placer Dome and Orvana Minerals.

Kevin Drover – Currently President & CEO of Aurcana Corporation since 2014. 40+ years of experience in management, operations and project development with mining companies with assets around the world, including Kinross Gold, Benz Mining, Oracle Mining and Glencairn Gold.

Andrew W. Dunn - Currently Managing Partner of Canadian Shield Capital and Senior Advisor of Atlas Partners. Previously spent 27 years at Deloitte, and served as Vice Chair of Deloitte Canada and Chair of its Client Cabinet.

Stephen Fabian - Currently a Principal and Director of Genus Capital Fund, listed on the LSE as the Baker Steel Resource Trust. Founder of South American Ferro Metals and formerly held positions with County NatWest and Rock Capital Partners. 25+ years of experience in the mining and finance industry.

Ian Pritchard - Currently Chief Operating Officer of Belo Sun Mining. Brings more than 30 years of industry experience with a particular focus on project and operations management. Mr. Pritchard was also named chairman of Aquila's technical, environmental, health and safety committee.

Joseph de la Plante – Currently Vice President Corporate Development of OsiskoGold Royalties. Prior to this, Mr. de la Plante held the position of Senior Advisor, Investment and Corporate Development of Osisko Mining Corporation, where he played a key role in the company’s investor relations and corporate development.

Committed to good governance and oversight

Leadership Team| Strong Board

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MAJOR INSTITUTIONAL SHAREHOLDERS

Osisko 15.0%

Orion 14.3%

Ruffer 12.2%

Hudbay 10.5%

CURRENT CAPITAL STRUCTURE

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Share Price (As of Dec. 31, 2017) C$ 0.26

Avg. 3-mth volume 82,297

52-week range C$0.205 - $0.31

Shares O/S 331M

Market Cap. C$86M

Year End December 31

Cash position @ Sept 30, 2017 US$3.1M

Upfront payments from Osisko(Nov. 10, 2017)

US$17.5M

Balance of Osisko payments owing US$47.5M

Strong Shareholder Support

CURRENT OWNERSHIP STRUCTURE

Retail 46% Insiders &

Institutional54%

Aquila | Capital Structure

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Advancing development of 100%-owned Back Forty project

Well-established mining jurisdiction

Granted 3 of 4 Final Permits

Favorable metal exposure to Zinc and Gold

Exploration upside:-Near deposit-Prospective projects in Wisconsin

Funded through pre-construction, strong shareholder base

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Investment Highlights

TSX: AQA | INVESTOR PRESENTATION

Back Forty: The next low-cost zinc mine

TSX: AQA

Contact Information

Barry Hildred, CEO

Aquila Resources

647.943.5673

BHildred@aquilaresources.com

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Dave Carew, Director of Corporate Development & IR

Aquila Resources

647.943.4256

DCarew@aquilaresources.com

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Appendix

TSX: AQA | INVESTOR PRESENTATION

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Economically Viable Against Commodity Price Fluctuations

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Back Forty | Sensitivity Analysis

Base Case-15%

Base Case Base Case+ 15%

Gold $1,099/oz $1,293/oz $1,487/oz

Silver $17.39/oz $20.46/oz $23.53/oz

Zinc $0.82/lb $0.96/lb $1.10/lb

Copper $2.70/lb $3.18/lb $3.66/lb

Lead $0.82/lb $0.96/lb $1.10/lb

Pre-Tax

NPV @ 6% $122.3M $282.2M $440.6M

IRR 23.7% 38.8% 52.0%

Payback Period 2.8 years 1.4 years 0.9 years

After-Tax

NPV @6% $95.2M $210.8M $324.8M

IRR 20.2% 32.0% 42%

Payback Period 3.1 years 1.8 years 1.2 years

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Revenue By Product Total Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 Yr16Au-Ag Dore 000$ 307,870 135,623 30,585 29,008 34,237 21,418 14,401 19,286 13,380 1,447 3,427 950 2,050 1,103 55 55 846Zn Conc 000$ 559,080 44,572 33,111 46,545 50,332 90,737 70,670 67,400 12,328 19,405 14,039 22,939 11,710 11,963 18,533 19,948 24,850Cu Conc 000$ 563,781 127,891 66,277 33,185 47,970 55,319 55,335 47,867 12,128 13,613 15,185 13,242 15,515 16,589 15,921 16,154 11,588Pb Conc 000$ 140,608 22,999 20,475 16,496 19,569 20,280 22,345 15,083 0 0 0 0 0 0 0 0 3,361

Total NSR 1,571,340 331,085 150,448 125,234 152,107 187,754 162,751 149,636 37,836 34,466 32,651 37,131 29,276 29,655 34,509 36,157 40,645

Revenue By Metal (excluding Treatment Charges)Au 000$ 687,303 187,953 76,575 59,856 78,085 67,767 62,077 57,162 19,627 8,233 11,829 8,992 10,702 9,246 9,111 9,930 10,160Zn 000$ 692,514 55,174 41,031 57,771 62,415 112,448 87,644 83,519 15,197 23,944 17,336 28,355 14,456 14,786 22,950 24,702 30,788Ag 000$ 95,034 18,476 12,345 9,861 10,963 9,371 10,188 6,202 2,357 1,842 1,800 1,679 1,660 2,019 1,855 1,986 2,431Cu 000$ 235,848 86,343 29,238 6,301 11,982 19,165 17,653 19,545 3,927 5,488 5,473 3,871 5,725 7,014 5,454 4,693 3,975Pb 000$ 20,448 483 2,500 4,796 2,790 3,313 5,146 1,336 0 0 0 0 0 0 0 0 85

1,731,149 348,430 161,689 138,584 166,234 212,064 182,708 167,764 41,108 39,507 36,437 42,897 32,542 33,066 39,370 41,310 47,439

Economically Viable Against Commodity Price Fluctuations

Back Forty | LOM Revenue by Product and Metal

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Back Forty | Infrastructure

Power Supply

• 4.5km power transmission line will be built from an existing 138kV transmission line northeast of the property

• New power substation planned at the southeast corner of the project will provide power for the plant facility and mine site with 13.8kV distribution voltage

Roads/Access • Improvements to existing near and on-site roads, construction of new haulage roads• Rail line is situated ~13km east of the project site• Ports for ocean going vessels in Escanaba and Menominee, within 50 miles of project

Labour • Skilled local workforce readily available

Well-Developed Infrastructure

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Milestone Payments to Hudbay Minerals

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Amount Timeline

C$3 Million • Payable upon completion of financing tied to start of construction at Back Forty

• Up to 50% payable in Aquila shares

C$2 Million • Payable 90 days after start of commercial production

C$2 Million • Payable 270 days after start of commercial production

C$2 Million • Payable 450 days after start of commercial production

• First milestone payment due January 2024• 1% NSR was repurchased from Hudbay in April 2015 concurrent

with Orion transaction

Based on purchase of Hudbay’s 51% interest in Back Forty

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Zinc Developer Universe

Market Capitalization ($CM)

Stage Pre-PEAFinancingUnderway

FS Underway PEA PFS FS FS

Source: Thomson ReutersNote: Priced as of January 15, 2018

1,311.4

185.8

82.7 58.3 43.9 26.7 19.0

0

200

400

600

800

1,000

1,200

1,400

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Zinc Market Outlook

Zinc Mine Production Peaks in 2020

Global zinc production and demand forecasts: Source: Wood Mackenzie, CRU, ILZG, Teck)

• Zinc demand continues to outstrip supply

• Primary drivers include global GDP growth, urbanization and expanding consumer markets

• Mine closures and production cuts also contributing to zinc supply deficit scenario

• Forecasts point to tightening market over next several years

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