Orefinders Resource Presentation 2014 February

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RESOURCES INC. February 2014 TSX-V: ORX www.orefinders.ca

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Transcript of Orefinders Resource Presentation 2014 February

Page 1: Orefinders Resource Presentation 2014 February

RESOURCES INC.

February 2014TSX-V: ORXwww.orefinders.ca

Page 2: Orefinders Resource Presentation 2014 February

This presentation has been prepared as of February 21, 2014 and contains “forward-looking statements” relating but notlimited to the Company’s expectations, plans, intentions and beliefs, under the provisions of Canadian provincial securitieslaws. Forward-looking information can often be identified by forward-looking words such as “anticipate”, “believe”, “await”,“expect”, “hope”, “goal”, “planned”, “intent”, “estimate”, “may”, “forecast” and “will” or similar words suggesting futureoutcomes or other expectations, beliefs, plans, objectives, assumptions, intentions, comments or statements about futureevents or performance. Forward-looking information may include statements regarding the estimation of mineralresources, historical and current exploration results, potential mineralization, potential mineral resources and mineralreserves, historical non-compliant pre-43-101 drilling results, and is based on current expectations that involve a numberof business risks and uncertainties, many of which are beyond Orefinders Resources Inc.’s ability to control or predict.Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limitedto, failure to establish estimated resources and reserves, the grade and recovery of mined ore varying from estimates,capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain requiredgovernmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in the price ofgold and other commodity prices, poor market conditions, delays in the development of projects and other factors.Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differmaterially from expected results that could impede planned business objectives for the Company.

Potential shareholders and prospective investors should be aware that these statements are subject to known andunknown risks, uncertainties and other unpredictable factors that could cause actual results to differ materially from thosesuggested by the forward-looking statements, and undue reliance should not be placed on such statements andinformation. Shareholders are cautioned not to place undue reliance on forward-looking information since forward-lookinginformation involves numerous assumptions, inherent risks and uncertainties, both general and specific. These sameassumptions, risks and uncertainties contribute to the possibility that the predictions, forecasts, projections and variousfuture events will not occur. Orefinders Resources Inc. undertakes no obligation to update publicly or otherwise reviseany forward-looking information whether as a result of new information, future events or other such factors which affectthis information, except as required by law. All currency numbers are reported in Canadian dollars unless otherwiseindicated.

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All scientific or technical information contained on this website has beenreviewed and approved by William Yeomans, P.Geo, the President ofOrefinders Resources Inc., who is a "qualified person" as defined inNational Instrument 43-101 of the Canadian Securities Administrators.

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Bill Yeomans, P. Geo – President, CEO and Director

◦ A gold exploration professional with over 27 years of experience in all stages of gold explorationthroughout the Americas. Currently a director for Xmet Inc. with extensive exploration and managementexperience with junior and major mining companies including BHP and IAMGOLD

Stuart W. Rogers – CFO and Director

◦ Has served as an officer and/or director of technology and resource companies listed on the TSX-V,TSX, and NASDAQ since1987. Founder and former CFO of Prophecy Resource Corp

Stephen Dulmage - Director

◦ A capital markets and finance professional with over 10 years experience specialized in assetevaluation, planning and operations management

Adam Travis, B.Sc. Geology - Director

◦ Currently President and CEO of Colorado Resources Inc.

Alex Stewart, B.A., J.D. – Chairman and Director

◦ A former corporate/securities lawyer with over 35 years experience in the financial and public markets

Stephen Stewart, MBA, M.Sc. – VP Corporate Development

◦ MBA from U of Toronto, M.Sc. from U of Florida, with 10 years experience in mining and real estate

Kevin E. Piepgrass, P. Geo, B.Sc. Geology – VP Exploration

◦ Experience in managing and advancing exploration projects toward feasibility and mining in North andSouth America and East Africa

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SHARE STRUCTUREas at February 21, 2014

SHARES OUTSTANDING 47,931,143

FULLY DILUTED 53,731,094

OPTIONS ($0.50) 3,275,571

WARRANTS ($0.50) 2,424,951

WORKING CAPITAL ~$1.5 M

SHAREHOLDERSas at February 21, 2014

MANAGEMENT & INSIDERS 15.7 M (33%)

Jubilee Gold (included above) 14.1 M (29%)

Shares in Escrow (included above) 12.7 M (26%)

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Gold projects in two of Canada’smost prolific gold camps:

Kirkland Lake camp (>40M oz Aupast production)

Red Lake camp (~25M oz Au pastproduction)

Mirado is an advanced stage goldproject located within the KirklandLake gold district approx. 13 kmsouth of the Larder Lake CadillacFault

Derlak is located within the RedLake gold district and1,800 m NEalong strike from ClaudeResources Inc’s Madsen mine

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3,440 acre land package with core assetunderlain by 12 patent claims owned100% by Orefinders

Patent claims include surface and mineralrights

Year-round road accessibility – located 10km south of the TransCanada Highway

>40,000 m of historical surface andunderground drilling between 1938 – 1987

Completed NI 43-101 resource estimatein first exploration season by drilling 40holes (12,049 m) and incorporating 202historic drillholes (19,597 m)

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Gold mineralization located neartop of Skead volcanic cycle

Skead cycle bounded by IronFormation, mafic and ultramaficvolcanics and Temiskamingconglomerates

Mirado gold mineralization hostedby calc-alkaline volcanic,pyroclastic and tuffaceous rock

Gold mineralization occurs as:

Pyritic stockwork (SouthZone)

Stratabound/shear hostedAu-Ag-Zn-Cu (North Zone)

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Mineral ResourceEstimate completedby SRK, Dec. 2013

10,618,000 tonnescontaining 442,000ounces of gold at1.29 g/t gold*

Trenching hasidentified additionalgold mineralization~200 m along strike

Mirado depositconstrained only byavailable drilling data

Remains open in alldirections

*For the Mirado Gold Project NI 43-101 Mineral Resource Estimateand technical disclosure, please see page 13 of this presentation.

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Mirado deposit remains open along strike and at depth

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North ZoneSouth Zone

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HOLE#

FROM(m)

TO(m)

INTERVAL(m)

GRADE(g/t Au)

GRADE(g/t Au)uncut

MD13-02 33.10 59.80 26.70 2.42 4.38

MD13-05 150.00 158.75 8.75 5.51 7.50

MD13-12incl.

62.8062.80

93.0071.00

30.208.20

4.0310.58

MD13-19 77.00 91.50 14.50 8.10

MD13-28 18.50 50.00 31.50 3.05 10.90

MD13-30 90.30 109.50 19.20 4.77 10.20

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HOLE#

FROM(m)

TO(m)

INTERVAL(m)

GRADE(g/t Au)

MD13-08incl.

73.9079.30

91.4082.40

17.503.10

2.416.68

MD13-10 12.50 16.20 3.70 6.68

MD13-10 114.80 120.30 5.50 4.05

MD13-10incl.

265.20265.20

284.70269.70

19.504.50

3.656.5

and incl. 278.70 284.70 6.00 6.32

MD13-25 48.00 54.00 6.00 6.27

MD13-26 291.50 297.20 5.70 4.31

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Historic Stockpiling overview

Sampling of stockpiles from Mirado Pitnow completed

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*Tonnage estimates are based on dimensions of eachstockpile and a specific gravity of 1.5.

Inferred Stockpile Resources

StockpileCut-offGrade(g/t Au)

TonnesGrade(g/t Au)

ContainedGold

(ounces)

North 2.00 12,194 4.71 1,847

Central 2.00 4,011 5.38 693

South 2.00 4,537 2.74 399

TOTAL INFERRED 20,742 4.41 2,939

*Mineral resources are not mineral reserves and do not have a demonstratedeconomic viability. Please see page 15 of this presentation for resource disclosure.

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ZONEINFERRED

CUT-OFF(g/t Au)

TONNES(000’s)

GRADE(g/t Au)

OUNCES

Open pit 0.45 9,927 1.18 367,600

Underground 2.00 669 2.90 62,400

Northern Pile 2.00 12 4.71 1,800

Central Pile 2.00 4 5.38 700

Southern Pile 2.00 5 2.74 400

TOTAL INFERRED 10,618,00 1.29 442,000

The Mirado Gold Project mineral resource estimation work was completed by Dr. Lars Weiershäuser, P.Geo. andwas reviewed by Glen Cole, P.Geo., of SRK Consulting (Canada) Inc.. Dr. Weiershäuser and Mr. Cole are bothindependent Qualified Persons as this term is defined in National Instrument 43-101. The full report dated effectiveOctober 30, 2013 and titled “Mineral Resource Evaluation Technical Report for the Mirado Gold Project, Ontario"was filed on SEDAR (http://www.sedar.com/) December 13, 2013.

Mineral resources are not mineral reserves and have not demonstrated economic viability. There is no certaintythat all or any part of the mineral resources will be converted into mineral reserves. It is uncertain if furtherexploration will allow upgrading the classification of the inferred mineral resources.

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Stream gauging

Meteorological data collection

Monitoring well installation

Surface water and groundwater sampling

Benthic invertebrate sampling

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Stream gauging Weather station MW install Benthic Sampling

STORY ENVIRONMENTAL INC.

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First Nations and Métiscommunication is important toOrefinders with regard futureexploration and development ofthe Mirado Project

Meeting with Wahgoshig,Temiskaming , Matachewan andBeaverhouse First Nations and theMétis Nation of Ontario Region 3

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Past metallurgical test work indicate a low work index of 13.78

Recent petrographic study indicate rock type as Latite (volcanic equivalentto Monzonite) which contains virtually no quartz

Gold recovery with direct cyanidation using 0.4 kg/t NaCN and 0.3 kg/t CaOextracted 95% Au

Gold recovery from a combined gravity concentration and flotation was94.4%

Gold recovery from selective flotation test work was 89.0%

33.8% of gold was free at 95% minus 200 mesh

Test work completed by Lakefield Research Ltd. - 1986

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*Metallurgical test work results are historical in nature and have yet to be verified by Orefinders and thereforeshould not be relied upon. The historical metallurgy results within this presentation are from the report titled“The Mirado Gold Mine Project” by Golden Shield Resources Ltd. , 1987 in Section 5 titled “The Recovery ofGold.” This report can be found at:http://www.geologyontario.mndmf.gov.on.ca/mndmfiles/afri/Data/Imaging/32D04SW0141/32D04SW0141.Pdf

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MiradoDevelopmentTimeline

Q4 - 2013 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Cost

EnvironmentalBaseline Study

$150,000

First NationsComunication

Fieldwork $500,000

Staking /Optioning

$50,000

Road Development $125,000

MetallurgicalTestwork

$25,000

Contingency $100,000

Total $950,000Estimated Budget and Timeline

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Mirado – Patented Claims

100% Owned

Work commitments and cashpayments completed

Terms for 100% Buyout of 3% NSR

◦ 3% NSR of which 1% can bepurchased for a total payment of$1,000,000

◦ 2nd percent purchase for $2,000,000

◦ 3rd percent purchase for $3,000,000

Mirado Option – MZ Claims

Cash Payments

◦ $25,000 on or before Feb. 8th 2014

◦ $30,000 on or before Feb. 8th 2015

◦ $40,000 on or before Feb. 8th 2016

Work Commitments

◦ $200,000 expenditure before Feb. 8th

2016

Terms for 100% Buyout of 2% NSR

◦ 2% NSR of which 1% can bepurchased for a total payment of$1,000,000

◦ 2nd percent purchase for $2,000,000

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Madsen Headframe from Derlak Property

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Derlak Red Lake consists of 11contiguous patented claimscovering ~542 acres

Property located within the RedLake Greenstone Belt, <5 km SWof Red Lake Town and 1,800 mNE, along strike of the pastproducing Madsen Mine

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Completed initial NI 43-101 Mineral Resource Estimate for Mirado within12 months for <$6.00/oz*

2013 diamond drilling at Mirado was successful in defining high-grade goldmineralization within broad, near-surface gold zones

NI 43-101 Mineral Resource Estimate for historic stockpiles at Mirado completed– Orefinders is currently assessing permitting procedures and costs forpossible future processing of stockpiles in an attractive gold market

The Derlak Red Lake project is strategically located 1,800 m NE along strike ofthe Madsen Mine, presenting the potential for exploration and businesssynergies

Attractive deal structures provide a direct path to 100% ownership on allproperties through low annual cash payments and exploration expenditures –Orefinders is 3 years ahead of payment schedule for both Derlak andMirado

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*Discovery cash costs per ounce calculated by using management’s estimate of $2.5 million in explorationspent on Mirado in 2013 divided by 442,000 oz gold. This number will be updated when the January 31, 2014financial statements are available.

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Bill YeomansPresident and CEOTel: 250-707-0911Email: [email protected]

or

Kevin Piepgrass

VP Exploration

Tel: 778-829-0706

Email: [email protected]

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