CuMocumoco.com/wp-content/uploads/2018/04/CuMo-FactSheet-2018.pdfMay 15, 2018 · t Uranium, $6 per...

TSX.V: MLY

OTCQX: MLYCF

158 M shares outstanding

$15.8 M market capitalization

AMERICAN CUMO MINING CORPORATION (CuMoCo) IS FOCUSED

ON ITS WHOLLY-OWNED CUMO PROJECT – AN ADVANCED-STAGE

PROJECT NEAR BOISE, IDAHO, USA. THE PROJECT HAS THE POTENTIAL TO

BE ONE OF THE LARGEST, LOWEST-COST AND MOST PROFITABLE

MOLYBDENUM DEPOSITS IN THE WORLD WITH SIGNIFICANT COPPER,

SILVER, TUNGSTEN, AND RHENIUM BY-PRODUCTS.

CuMo

CuMoCo is advancing the CuMo Project’s feasibility study led by its sustainability- focused management team with proven expertise in mine development, optimization and operations.

DEVELOPMENTSustainable

PROJECT

CuMoCo’s management and Board of Directors have diverse backgrounds with over 260 years of extensive and specialized skills in mining

Developing the largest un-mined molybdenum deposit in the world CuMoCo has discovered one of the largest deposits of molybdenum, copper, silver, tungsten and rhenium in North America near Boise, Idaho, USA. The CuMo Project is advancing towards feasibility with the goal of being one of the world’s largest and lowest-cost primary producers of molybdenum.

The CuMo Project has two distinct layers of diversification: the upper half contains higher grades of silver and copper compared to molybdenum; the lower half is rich in molybdenum, with lower grades of silver and copper. The total recoverable value of both layers is what gives the CuMo Project such excellent economic potential.

An independent NI 43-101 preliminary economic analysis prepared in 2018 shows a mine life of 82 years with an annual after-tax cash flow of over US$600 million at current metal prices, with substantial room for improvement as various optimization techniques are applied. The CuMo Project is in a politically-stable jurisdiction and an area heavily mined and logged over the past 100 years.

Henderson (FCX) Underground

Average Yearly Production for a 5-Year Period (Million lbs Mo)

5-Ye

ar A

vera

ge G

rade

(%M

o)

Mt. Hope (GMO)

Climax(FCX) On Hold

Spinifex Ridge (MOL)

Endako (TMO)

Creston (CMS)

Thompson Creek (TMO)Ruby Creek (AUA)

Shangfanggou China

Sandaozhuang China

Kitsault (AVT)Jinduicheng

China

0.15

0.10

0.05

010 20 30 40 50 60

Circle size denotes current reserves/resources. Centres represent grade and tonnage point.

environmental approvals up-to-date

only 60%of CuMo’s identified mineralized zone drilled

economies of scale are possible with

high-tonnage

mining rates

located in

stablebusiness and political environment

(Sou

rce:

Res

ourc

e Ta

bles

in G

iroux

et A

l’s N

I 43-

101

Sum

mar

y Re

port

on

the

CuM

o Pr

oper

ty, B

oise

Cou

nty

Idah

o da

ted

Oct

ober

201

5. R

CV is

Rec

over

ed M

etal

Val

ues

and

is b

ased

on

the

pric

es o

f: M

olyb

denu

m o

xide

$1

0/lb

, Cop

per $

3.00

/lb a

nd S

ilver

$12

.50/

oun

ce.)

Billion Tons 0 2.0 4.0

Inferred

CuMo (MLY) 150,000 tons per day

CuMo’s Deposit

tons MooxideMillions MoMillions CuMillions AgMillions TungstenMillionsZone Millions lbs(Mos2%) lbs(Mo%) lbs(cu%) ounces lbs(ppm)

Oxide+CuAg 0.1 0.1(0.023%) 0.0(0.014%) 0.4(0.18%) 0.0(0.16oz/t) 0.0(71.0ppm)CuMo(transistion) 77.1 84.4(0.061%) 56.3(0.036%) 180.5(0.12%) 6.5(0.08oz/t) 8.5(55.3ppm)MO+MSI 150.8 313.0(0.115%) 208.7(0.069%) 160.8(0.05%) 6.8(0.04oz/t) 15.1(49.9ppm)Total 228.0 397.5(0.097%) 265.0(0.058%) 341.8(0.07%) 13.3(0.06oz/t) 23.6(51.8ppm)

AdditionalResource 58.3 37.7(0.036%) 25.1(0.022%) 93.3(0.08%) 3.9(0.07oz/t) 5.3(45.0ppm)










Inferred>$12.50RCVrecovered

Inferred>$7.50RCVrecovered

Measured>$12.50RCVrecovered

Measured>$7.50RCVrecovered

Indicated>$12.50RCVrecovered


MeasuredandIndicated>$12.50RCVrecovered


Measured & Indicated

Molybdenum: Strengthening the FutureMolybdenum is used as an alloying agent in steel, cast iron, and super alloys to enhance hardening ability, strength, durability and corrosion resistance. It is driving advancements in medical, technological, and renewable energy research.

Molybdenum has been identified as the first viable alternative to silicon for two-dimensional semiconductors and technologies that are developing smaller, faster and more energy-efficient computers. Lithium-ion batteries have shown marked improvements in energy capacity, lifespan and recharge times from a molybdenum/graphene/graphite additive. With the use of a polished molybdenum slug, X-Ray technology is reaching an atomic and molecular level by increasing imaging pulses from 120 per second to 1 million per second.

Clean, potable water and transmission from source to consumer is crucial to sustaining life on this planet. With 40 percent of the world’s population living in water-scarce regions, desalination plants constructed with molybdenum steel can be used to convert the 97 percent of earth’s water that is too salty for consumption.

Other molybdenum uses include: bridge and building construction, especially where pollution/salt/volcanic exposure are factors; pipelines for petrol and drinking water delivery; manufacturing automobiles/ships/rockets/aircraft; lubrication for high heat purposes; agricultural fertilizer to boost crop production; fuel cell technology; mobile phones; and computers.

Potential low-cost producer CuMoCo has identified significant quantities of molybdenum, copper silver, tungsten, and rhenium at the CuMo Project. The Company anticipates that project cash and total costs could be significantly reduced from steady by-product credits from these well-priced and in-demand metals, potentially making the CuMo Project profitable in most metal-market price conditions. Production costs are currently estimated to be less than $2.40/lb molybdenum metal or $1.18/lb copper equivalent.¹ Recent studies of the use of modern mining technologies indicate that these costs can be reduced to those similar to by-product producers (less than $0.50/lb molybdenum metal). As a potential low-cost, primary molybdenum producer, the CuMo Project is expected to have significant advantages over high-cost underground or remote producers.

“With demand for molybdenum forecast to increase by 300 million pounds by 2022, the CuMo Project with its billions of pounds of low-cost molybdenum has assets in a class by itself.”

Shaun Dykes, CEO American CuMo Mining Corporation

Strong economic potential The CuMo Project’s potential profitability is far greater by duplicating the practices of the large copper and gold porphyry deposit miners, a new approach in molybdenum mining. In contrast to small-sized, high-grade projects, the CuMo Project can provide huge economies of scale, higher production rates and return significant profits to investors. Examples of this low-cost, high-profitability model include: Highland Valley, Morenci, and Sierrita. Highland Valley was placed into production to mine material worth $8 per ton for a cost of $4. Using large-scale mining infrastructure, the CuMo Project is targeting mining material with a recovered value per ton in excess of $25 for $8 or less per ton (2018 PEA mining costs). ¹

CuMo Project Operating Cost Compared to Primary Molybdenum Producers

Operating Cost/lb Mo Metal (2018 data) 2

$ pe

r lb

Mo

Endako

Chinese M

o Mines

Thompson Creek

Ruby Creek

Mt. Hope

Spinifex (o

n hold)

Kitsault (

Avanti)

Creston

Henderson

Climax

CuMo Project (

Typical Year)

12

10

8

6

4

2

0

CuMo Project Profitability Compared to Some of the World’s Most Profitable Mines

Mine profitability as measured by return of $1 of cost/investment (2017 year end) 2

DISCLAIMER: The preliminary economic assessment is preliminary in nature and includes inferred resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., CEO and Director of CuMoCo is the designated qualified person for the CuMo Project, and prepared the technical information contained in this disclosure.

CuMo based on 150K tons per day and >$15 recovered value. Metal prices used are $12.5 per lb Molybdenum (Mo), $3 per lb Copper, $17.5 per ounce Silver, $1350 per ounce Gold, $25 per lb Uranium, $6 per lb Nickel, $1.5 per lb Zinc, 1.00 per lb Lead, and $40 per lb Cobalt.

CuMo Project (

Typical Year)

Optimized

1 Sacré Davy CuMo Property Preliminary Economic Assessment Update Report May 15th, 2018, 2 Company Financial Statements and Costing Reports, CPM group and mining cost data. CuMo Project (Typical Year) and CuMo Project (150K per day) are based upon the Sacré Davy PEA net of credits for copper and silver.¹

The CuMo Project Permit StatusNorth American project development is governed by three levels of increasingly stringent analyses to evaluate the environmental impacts of proposed projects.

The CuMo Project’s exploration team has completed the Lower Level analysis Categorical Exclusion (CE) and is completing the necessary Middle Level Environmental Assessment (EA) permits to proceed with advanced exploration and site analysis. CuMoCo continues to gather the required scientific information to bring the project to the highest level Environmental Impact Statement (EIS), and to make informed, responsible, and intelligent decisions.

The Project region, Southern Idaho, is rooted in mining history and natural resource economies. A recent survey by Boise State University highlighted the overwhelming support of Idahoans for responsible mining with 80.4 percent of respondents affirming their belief that mining can be conducted without negatively impacting the environment. Local, state and federal governments have shown great interest in and are formally declaring their support for the CuMo Project. Furthermore, a shift to pro-development policies within federal agencies has created momentum for strategic minerals projects.

Project FinancingTo obtain its mining permit for the CuMo Project, CuMoCo requires approximately $25 million to complete the project’s Feasibility Study and $75 million for the Environmental Impact Statement. With a positive Feasibility Study, close to 70% of the $2.8B production financing could be funded by loan devices and arrangements, with an additional $500M to be obtained through self-equipment financing from major vendors. There are multiple financing arrangements under consideration for the Feasibility Study. Among those being considered are the following: off-take arrangements (based on achievement of defined goals); equity plus direct interest; joint venture earn-in; and convertible debentures.

CuMoCo modern mining practices and ethics

strong

world demandfor silver, copper and molybdenum

CuMoCo is committed to the sustainable development of natural resources. Environmental stewardship and responsible practices will guide all stages of exploration and development. With a long-term vision and proactive approach to addressing environmental issues, the Company is acting with integrity, meeting and exceeding all required permits and regulations, and is in full cooperation with state and federal regulatory agencies. CuMoCo is engaging an inter-agency task force to fully address any environmental concerns.

The CuMo exploration team maintains best management practices with respect to groundwater, hydrogeology and environmental protection in conducting its federally-approved activities on private and public lands, and will continue these same practices into the future.

AS THE CUMO PROJECT ADVANCES, CUMOCO INTENDS TO AID IN REPAIRING THE

DAMAGE LEFT BEHIND BY THE PREVIOUS MINING ACTIVITY, THUS ELIMINATING THE

CONTAMINATION CREATED BY OUTDATED MINING PRACTICES.

RESPECTING THEENVIRONMENT

readily

accessibleapproved infrastructuresurrounds property

FORWARD-LOOKING INFORMATION - This document contains “forward-looking information” within the meaning of applicable Canadian securities legislation including, but not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, such things as the Company’s ability to move its CuMo project to feasibility and production, and to become one of the largest, lowest-cost and most profitable molybdenum, silver and copper deposits in the world; and the Company being able to significantly reduce operating costs of the CuMo project. Often, but not always, forward-looking information can be identified by the use of words such as “expects”, “estimates”, “potential”, or “believes” or describes a “goal” or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. Forward-looking information is based on a number of material factors and assumptions, including the result of drilling and exploration activities, the ability of the Company to raise the required financing for the preparation of a feasibility study and to put the CuMo project into production, that contracted parties are able provide goods and/or services on agreed timeframes, that equipment necessary for exploration and production is available as scheduled and does not incur unforeseen breakdowns, that no labour shortages or delays are experienced, that plant and equipment function as specified, that no unusual geological or technical problems occur, that the Court will not intervene with the Company’s proposed exploration activities at the CuMo project, and the ability of the Company to obtain all requisite permits and licenses to bring the CuMo project into production. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of molybdenum, silver and copper; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the Company’s publicly filed documents. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information 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 forwardlooking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information. United States residents are cautioned that some of the information that may be published by American CuMo Mining Corporation may not be consistent with United States Securities and Exchange Commission disclosure rules and may be materially different from what the Company is permitted to disclose in the United States and therefore United States residents should not rely on such information.

T: 604.689.7902F: 604.689.7816TF: 1.800.667.0873

[email protected]

638 Millbank RoadVancouver, BC V5Z 4B7 CANADA

cumoco.com

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