STGO - Corp Presentation - September 2019MW€¦ · Steppe Gold Limited - Mongolia’s Next Gold...

CORPORATE PRESENTATION

September 2019

MONGOLIA’S NEXT GOLD AND SILVER PRODUCER

Steppe Gold Limited - Mongolia’s Next Gold and Silver Producer Corporate Presentation September, 2019

TECHNICAL INFORMATIONTechnical information relating to the Altan Tsagaan Ovoo Project (the “ATO Project”) contained in this presentation is derived from, and in some instances is an extract from, the Technical Report titled“Altan Tsagaan Ovoo Gold Project, Tsagaan Ovoo, Dornod, Mongolia” dated August 20, 2017, with an effective date of June 20, 2017, which was prepared for the Company by Oyungerel Bayanjargal,MAusIMM of GSTATS Consulting Ltd (the “Technical Report”) and prepared in accordance with National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”). Referenceshould be made to the full text of the Technical Report which has been filed with certain Canadian securities regulatory authorities pursuant to NI 43-101 and is available for review under theCompany’s profile on SEDAR at www.sedar.com.

Technical information in this presentation not contained in the Technical Report has been prepared under the supervision of Matthew Wood, President and CEO of the Company and a “qualified person”under NI 43-101.

CAUTIONARY NOTE FOR UNITED STATES INVESTORSTechnical disclosure regarding our properties included herein (the “Technical Disclosure”) has not been prepared in accordance with the requirements of United States securities laws. Without limitingthe foregoing, the Technical Disclosure uses terms that comply with reporting standards in Canada and certain estimates are made in accordance with NI 43-101. NI 43-101 is a rule developed by theCanadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, allmineral reserve and mineral resource estimates contained in the Technical Dis- closure have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy andPetroleum Classification System. These standards differ significantly from the requirements of SEC Industry Guide 7, and resource information contained in the Technical Disclosure may not becomparable to similar information disclosed by U.S. companies.

The definitions of proven and probable reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. In addition, the terms “mineral resource”, “measured mineral resource”, “indicatedmineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are notpermitted to be used in reports and registration statements filed with the Securities and Exchange Commission (the “SEC”).

Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty asto their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category.Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases.

Additionally, disclosure of “contained ounces” in a resource is permitted disclosure under Canadian securities laws, however the SEC normally only permits issuers to report mineralization that does notconstitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measurements. Accordingly, information contained in the Technical Disclosure may not be comparable tosimilar information made public by U.S. companies subject to the reporting and disclosure requirements of United States federal securities laws and the rules and regulations thereunder.

2

DISCLAIMER

http://www.sedar.com/


* Cash costs exclude refining charges and royalties.

INVESTMENT HIGHLIGHTS – POURING GOLD IN 2019

• Matthew Wood (Steppe’s Chairman, President, and CEO) was the co-founder and Executive Chairman ofMongolian coal company, Hunnu Coal Limited, which was sold to Banpu PCL in 2011 for $500M.

• Senior team comprises of Mongolian nationals: Bataa Tumur-Ochir, Dr. Zamba Batjargal, Jargalan Sereenen and Batkhuu Budnyam.

PROVEN IN-COUNTRY TEAM1

• Over US$25M on exploration and studies, including 90,000m of drilling, has been completed at ATO & nearby Mungu discovery.

• Drilling is highlighted at ATO by 63m @ 6.53 g/t Au and 5.95 g/t Ag, 1m @ 382 g/t Au (visible gold), and at the Mungu discovery by 46m @ 14.98 g/t Au and 82.02 g/t Ag.

• Focus is now on issuing an updated resource on ATO 1, 2 & 4 and the maiden resource on Mungu, as well as the feasibility study on the Phase 2 (fresh rock) expansion project.

DEMONSTRATEDDISCOVERY POTENTIAL3

• Uudam Khundii (“UK”) Project: Steppe Gold owns 14,400 hectares in a first of its kind, 80/20 JV with theprovincial government of Bayankhongor.

• The company has completed 2,480 line/km ground mag. survey, 90.8 line/km IP survey, 346 rock chip samples, 8,432 soil geochemical samples and is currently assessing over 200,000 hectares of exploration licences for further acquisition.

SIGINIFICANT EXPLORATION POSITION –BAYANHONGOR GOLD BELT4

• Construction on the flagship ATO Project is complete• Phase I mining in the Spring with 230,000 tonnes mined , crushed and stacked at a grade of 2.3g/t gold for

approximately 17,000oz of gold. • The ATO Project is expected to produce 37koz AuEq per year at sub-US$400/oz cash costs from oxides*.

NEAR TERM GOLDPRODUCER2

3


4

1. PROVEN IN-COUNTRY TEAMMONGOLIA – OPERATIONAL FOOTPRINT


BOARD OF DIRECTORS & MANAGEMENT

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1. PROVEN IN-COUNTRY TEAM

• 25 years of global industry experience in miningand commodities investments.

• Founder Hunnu Coal Limited sold for ~A$500M(2011), and founder of Avanco Resources sold for~A$420M.

• Recently awarded the Order of the Polar Star, thehighest state honour that can be awarded to anon-citizen of Mongolia.

BATAA TUMUR-OCHIR

DIRECTOR AND VICE PRESIDENT MONGOLIA

• Director at GCD Mongolia and CEO and executivedirector of ASX listed Wolf Petroleum.

• Established relationships at all levels ofgovernment in Mongolia and was recentlyappointed independent advisor to the Ministry ofMining and Heavy Industry responsible for foreigninvestment and promotion.

ANEEL WARAICH

DIRECTOR AND EXECUTIVE VICE PRESIDENT

• 15 years of progressive experience in capitalmarkets having worked on over $1B in deals.

• Founder of ATMA Capital Markets focusing onadvising public and private companies in the Natural Resources sector.

• MBA from the Goodman Institute of InvestmentManagement at the John Molson School of Business.

MATTHEW WOOD

CHAIRMAN, PRESIDENT AND CEO

JEREMY SOUTH

SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

•

•

34 years of experience in M&A, capital markets and private equity in Europe, North America and Australia.Formerly Global Leader, Mining M&A Advisory at Deloitte. Has worked extensively in Mongolia over the past 10 years.

PATRICKMICHAELS

DIRECTOR

• On the board of GoldQuest Mining Corp. and Steppe Gold Ltd. andChairman & Portfolio Manager at Zuri-Invest AG and Director &Portfolio Manager at Asty Capital AG.

• Has occupied the position of Executive Vice President at PreciousCapital Ag and received a graduate degree from Colorado School ofMines.

DR. ZAMBA BATJARGAL

DIRECTOR

• 35+ years experience working for government entities in Mongoliadealing with issues of environmental protection and climate change.

• Serves as an independent consultant on climate change and greendevelopment policy to the public institutions and non-profitorganizations.

BATKHUU BUDNYAM

DIRECTOR

• Served as Advisor to Chinggis Khaan Bank, Managing Director ofOrganic Solutions Mongolia LLC and Managing Director of MFSCapital LLC.

• Entrepreneur and financial expert who has extensive experience inthe banking and finance sectors in Mongolia. Holds a Bachelors’ Degree in Economics from the National University of Mongolia.

JARGALAN SEREENEN

DIRECTOR

• Head of Department of Mineral Exploration Mongolian University ofScience & Technology and Board member of Mongolian Society ofEconomic Geologists.

• PhD in Earth Science (Tohoku University, Japan), Bachelor of MineralExploration (Mongolian Polytechnical University).

STEVE HAGGARTY

DIRECTOR

• 35 years of industrial experience both on-site and at a corporatelevel. Managing Director at Haggarty Technical Services, previouslySenior Director, Metallurgy/Operations Support/General Manager.

• P. Eng Metallurgy, Mining, Mineral Processing McGill University


The mining sector accounts for 20% of GDP, 80% of exports(1). Capital Flow into Mongolia:• 2016:• US$5.3B expansion approved at Oyu Tolgoi, one of the

world’s largest copper mines.• 2018:• Steppe Gold (IPO C$25M) and Erdene Resource

Development (C$4.12M) (2)

• Xanadu Mines completed A$10M placement in June 2018(2) and dual listing on the TSX October 2018.

• 2019:• Steppe Gold (US$8.44M) (2)

• Erdene Resource Development (C$4.5M) (2)

• Kincora Copper (Oversubscribed C$6.25M) (2)

• Xanadu Mines (A$2.1M) (2)

Mongolia Gold - 2 programme:• Government plan to support gold exploration and mining

companies • Goal to double the annual gold production by 2020.• Steppe Gold - first company to implementThe Foreign Investment Promotion and Protection Agreement (FIPA) • Signed between the Canada and Mongolia and fully

implement March 2017.• Provides Canadian investors operating in Mongolia with a

legal framework that will help bring greater predictability and certainty.

Mongolia’s credit rating: • Moody’s - B3 & stable outlook• Fitch/S&P - B & stable outlook

MONGOLIA – OPEN FOR BUSINESS

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1. PROVEN IN-COUNTRY TEAM

Source: 1. Asian Development Bank 2. Company Public DisclosureNote:


MONGOLIA’S NEXT GOLD AND SILVER MINE2. NEAR-TERM GOLD PRODUCER

Ongoing exploration, expansion and drilling program. Resource update planned for 2020.

NEAR-MINE EXPANSION POTENTIAL

HIGH MARGIN PRODUCTION

Cash cost per ounce: <US$400*Targeting first gold and silverproduction in Q4 2019.

High-margin oxide heap leach gold silver production.

Highlights from Stage 1 Drilling include:MG-49: 46 m @ 14.98 g/t Au and 82 g/t AgMG-51: 152m @ 3.28g/t Au and 30 g/t AgATO-295: 91m @ 2.57g/t Au and 11 g/t Ag

Stage 2 Highlights include:ATO-299: 1m @ 212g/t gold from 104mATO-317: 1m @ 183g/t gold from 166mATO-317: 1m @ 382g/t gold from 182m ATO-297: 63m @ 6.5g/t gold from 54m

7

Notes:AuEq has been calculated using assumed metal prices ($1,306.6/oz for gold, $21.6/oz for silver, $1,844/t for lead and $1,944/t for zinc). Oxide ore calculation: AuEq(g/t) = Au(g/t) + (Ag(g/t) x 21.6 x 0.0321507 x 0.4) / (1,306.6 x 0.0321507 x 0.7)Fresh ore calculation: AuEq(g/t) = Au(g/t) + ((Ag(g/t) x 21.6 x 0.0321507 x 0.75) + (Pb% x 1,844 x 10-6 x 0.6) + (Zn% x 1,944 x 10-6 x 0.55)) / (1,306.6 x 0.0321507 x 0.71)* Cash costs exclude refining charges and royalties.

DRILLING HIGHLIGHTS

NI 43-101 COMPLIANT

1.26 Moz AuEq (M&I)


OPERATIONAL DEVELOPMENT – September Update

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2. NEAR-TERM GOLD PRODUCER

Key Recent Milestones:ü The ADR plant has been fully installed and internal

commissioning has concluded satisfactorily.ü Barren and pregnant pond pumps have run continuously at

required rates for 48 hours.ü All carbon columns have been tested for leakage under

maximum flow of 300m3 for 48 hours.ü The regeneration kiln was run at a cycle time of 12 hours at

800 degrees Celsius.ü The elution column was run at 150 degrees Celsius and 0.5

MPa with water for the average 16 hour elution time.ü The electro winning cells were run at 3 volts, at amps of 600

for 14 continuous hours.ü All agitators, sump pumps, general pumps, electrical boxes,

start/stop devices were tested for 12 hours successfully.ü All plant to ponds to heap leach piping has been tested to

300m3 per hour.ü The chemical storage facility is substantially complete and

ready for reagents.ü Crushing circuit is fully operational with Leach Cells 1 & 2

completed and ready for additional crushed ore delivery.

• Total ore mined of approximately 230kt with no waste.• Total stacked grade of 2.3g/t Au.• 12koz Au expected to be recovered from current stacked ore.

Processing Plant Updates• Internal commissioning of the ADR plant has been satisfactorily

completed

August 2019

Barren Pond

Pregnant Pond

ADR Plant

Stormwater Pond

Cell 1 & 2

Chemical Storage


ATO PROJECT: BLOCK MODEL MAY 2018

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Mineral Reserves and Mineral Resources SummaryTonnage Grade Contained Metal

ATO Mineral Reserves Mt g/t Au g/t Ag Koz Au Koz AgProven 3.41 1.41 9.72 155 1,065Probable 1.82 0.93 10.52 55 616Proven & Probable 5.23 1.25 10.00 210 1,681Measured 7.77 1.51 8.16 378 2,039Indicated 4.46 1.46 13.17 209 1,889Measured & Indicated 12.23 1.49 9.99 587 3,927Inferred 1.05 1.03 25.18 35 848

ATO 1 ATO 4ATO 2

3D view of estimated Au block grades of the ATO Deposits


ATO PROJECT: HEAP LEACH ECONOMICS (NI 43-101 August 2017)

PRODUCTION AND COST PROFILEMINE MODEL SUMMARYLOM Average Gold Price US$/oz Au $1,307LOM Average Silver Price US$/oz Ag $21.60LOM Average CAD:USD CAD/USD 0.8Annual Ore Mined Mtpa 1.2Gold Recovery % 70Silver Recovery % 40LOM Gold Production Koz Au 147LOM Silver Production Koz Ag 673Mining Unit Cost US$/t $2.42Processing Unit Cost US$/t $5.00G&A Unit Cost US$/t $0.80LOM Average Cash Costs US$/oz Au $333Tax Rate % 25Initial CAPEX US$M $20NPV10% US$M $67

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Notes:The above figures are estimates based upon material assumptions included in Altan Tsagaan Ovoo Gold Project NI43-101 Technical Report August 20, 2017 (1) “100%” represents the base case NPV10% post-stream per ATO NI 43-101 Technical Report of US$67M

$347 $341$333 $337

$361

$300

$320

$340

$360

$380

01020304050

Year 1 Year 2 Year 3 Year 4 Year 5

Cash

Cos

ts

(US$

/oz

Au)

Prod

uctio

n (K

oz

AuE

q)

COMMODITY PRICE SENSITIVITY (1)

$50$58

$67$76

$85

$0$20$40$60$80

$100

80% 90% 100% 110% 120%

ATO

Pro

ject

N

PV10

% (U

S$M

)


ATO PROJECT SITE – April 2019

ATO1 Deposit April 2019

MUNGU DISCOVERY

ATO Project April 2018

ATO 1 DEPOSIT

ATO 2 DEPOSIT ATO 4 DEPOSIT

20km

Tr

end

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MUNGU DISCOVERY


ATO PROJECT SITE

12


Mine camp has capacity to support further scale-up

Crushing circuit


ATO PROJECT SITE – August 2019

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August 2019

Chemical storage

Barren Pond

Impregnated Pond

ADR Plant

Stormwater Pond

Cell 1 & 2

ADR Plant overview


LEACH PAD IRRIGATION – July 2019

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Main irrigation trunk lineBird balls in Barren pond Drip irrigation pipe


116%48% 22% 20% 1%

-1% -11% -47%

-276%-300%

-200%

-100%

0%

100%

200%

Steppe Gold

Superior G

old

Fiore Gold Rg

Harte

Gold

Wesd

ome Gold Mines

Premier Gold M

ines

Liberty G

old

Man

dalay Reso

urces

Bluestone Reso

urces

FCF

Yiel

d (%

) 20

20E

FCF Yield

1.37

0.64 0.63 0.63 0.57 0.55 0.48 0.47 0.45 0.36

0

0.4

0.8

1.2

1.6

Wesd

ome Gold Mines

Liberty G

old

Superior G

old

West

Afric

an Reso

urces

Erdene Reso

urce Dev

Gogold Reso

urces

Premier Gold M

ines

Fiore Gold Rg

Harte

Gold

Steppe Gold

P/N

AV

(x)

P/NAV

20 41 42 42 49 50 88 91

154 175

279

0

100

200

300

Superior G

old

Fiore Gold Rg

Liberty G

old

Premier Gold M

ines

Bluestone Reso

urces

Steppe Gold

Man

dalay Reso

urces

West

Afric

an Reso

urces

Harte

Gold

Wesd

ome Gold Mines

Gogold Reso

urces

EV/O

z ($

/Oz)

Tot

al R

esou

rce

EV/Oz*

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2. NEAR TERM GOLD PRODUCER

Source: CIBC World Markets, Bloomberg, FACTSET, and public company filings

Value Opportunity - Entry for new investors:Despite expecting first gold pour in Q4 2019, the Company: • Trades at a 31% discount to the peer group on a P/NAV

basis • FCF Yield (2020E) of 116%• Trades at a 14% discount to the peer group on a EV/Oz*

basis• Underperformed the GDXJ by 49% over the past year

* Total Resource (P&P & MI&I) & Au only


3. DEMONSTRATED DISCOVERY POTENTIALEXPLORATION AND DEVELOPMENT

MUNGU GOLD-SILVER DISCOVERY• The Mungu - Bayangol - Highland structure is a 20km mineralized north trending structure containing gold and silver.• Restarting exploration at promising ATO - Mungu trend. • The northern extension of ATO 4 to Mungu and to the north remains open along strike and at depth.


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3. DEMONSTRATED DISCOVERY POTENTIAL+ 90,000m drilling and 28,421m trenching completed.ATO Deposit drilling highlights(NI 43-101 Compliant)

# From (m) To (m) Core Length (m) Gold (g/t) Silver (g/t)ATO-58 77.55 184.80 107.25 2.95 7.49

ATO-62 57.30 119.95 62.65 4.14 11.94

ATO-92 90.00 124.50 34.50 7.56 8.21

ATO-111 6.50 171.50 165.00 1.21 5.66


3. DEMONSTRATED DISCOVERY POTENTIAL

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Steppe Gold Drilling Results

Hole # Depth Width Au Ag

From Surface (m) g/t g/t

ATO299 104 - 105m 1m 212 49.3

ATO317 166 - 167m 1m 183 33.9

ATO317 182 - 183m 1m 382 67.2

ATO297 54 - 117m 63m 6.53 5.95

ATO299 70 - 124m 54m 6.17 4.48

ATO300 33.5 - 102m 68.5m 4.34 5.87

ATO301 89 - 102m 13m 6.07 5.96

ATO304 36 - 180m 144m 1.54 5.15

ATO310 0 - 101.7m 101.7m 1.56 29.9

ATO314 45.5 - 99.5m 54m 2.96 5.31

ATO315 9 - 97.4m 88.4m 1.56 94.37

ATO313 83.65 - 127m 43.35m 1.71 3.41

ATO318 29.5 - 84.3m 54.8m 1.81 5.73

ATO322 42 - 120m 78m 2.55 13.69

ATO317 164 - 186m 22m 30.15 7

ATO326 100 - 161.25m 61.25m 2.48 5.93

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STAGE 2 Drilling STAGE 3 Drilling

• 24 drill holes completed with over 3,663m drilled.• More visible gold seen at ATO.• Restarting exploration

program in September 2019 at ATO-Mungu trend.

First visible gold seen at ATO with high grades being returned

Drill rigs on Mungu Gap



ATO PROJECT: MUNGU DRILLING HIGHLIGHTS

First drill hole on Mungu by Steppe returned 46.0m grading 14.98 g/t Au and 82.02 g/t Ag

(Non-classified) - Centerra drilling results Steppe Gold Drilling Results

Hole #Depth Width Au Ag

Hole #Depth Width Au Ag

From Surface (m) m g/t g/t From Surface (m) m g/t g/t

MG-01 263.9 - 391.3m 127.4m 3 37.5 MG-49 218.5 - 264.5m 46.0m 14.98 82.02

including 275.6 - 324.6m 49m 5.6 45.5 including 218.5 - 241.5m 23.0m 26.18 68.8

MG-04 161.2 – 245.6m 84.4m 6.4 92.7 MG-51 258 - 320.5m 62.5m 3.28 29.79

including 217.9 – 230.2m 12.3m 42.2 52.3

MG-05 139.85 - 396.0m 256.2m 1.4 31.3 MG-52 190 - 342m 152.0m 2.06 72.64

including 274.45 - 338.9m 64.5m 4.4 28.7 including 300 - 342m 42.0m 5.75 16.97

MG-22 166.15 - 279.25m 113.1m 2.8 40.2 MG-54 19.0 - 37.3m 18.3m 1.84 130.21

including 179.65 - 234.15m 54.5m 7.3 88.2 including 27.0 - 33.0m 6.0m 3.3 333.4

MG-25 289.9 - 360.2m 70.3m 2.1 53.9 MG-67 0.0 - 56.0m 56.0m 1.03 35.15

including 337.9 - 351.9m 14.0m 8.1 34.7 including 0.0-17.0m 17.0m 2.23 37.22

MG-28 301.5 - 373.8m 72.3m 1.6 59 MG-71 14 - 95.0m 81.0m 1 45.46

including 359.8 - 372.8m 13.0m 5.2 24.6 including 15.0-25.5m 10.5m 2.18 49.21

MG-29 330.25 - 335.25m 140.3m 1.6 12.6 MG-72 2.0 - 57.0m 55.0m 0.92 46.25

including 330.25 - 335.25m 5.0m 5.4 42 including 2.0 - 22.0m 20.0m 1.5 27.62

378.65 - 406.65m 28.0m 5.1 4.7 41.0 - 43.0m 2.0m 1.35 288.5

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Upcoming Catalysts· Trenching to commence in Q4 2019.

· Drilling program to commence in Q4 2019.

Future Acquisitions

The Company is currently assessing over 200,000 hectares of exploration licences for further acquisition.

AGGRESSIVE EXPLORATION PROGRAMME UNDERWAYHIGHLY PROSPECTIVE AREA “NEW GOLD BELT“

UK: 80/20 JV WITH GOVERNMENT OF MONGOLIA OVER ~14,000 HA4. SIGNIFICANT EXPLORATION POSITION – BAYANKHONGOR GOLD BELT

ERD

ERD

Notes: * www.erdene.com - Investor Presentation

Adjoining licences held by Erdene Resources (ERD)* have discovered high grade gold silver mineralized zones trending on to Steppe’s licences.

Uudam Khundii “UK"PROJECT MAP

The company has completed:· 2,480 line/km ground mag. survey.· 90.8 line/km IP survey.· 346 rock chip samples.· 8,432 soil geochemical samples.

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http://www.erdene.com/


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CAPITAL STRUCTURE

15%

9%

5%

4%69%

Insiders & Management

Mongolian Nationals

Triple Flag

Elliott Management

Others

Pro Forma Capitalization Shares (MM)

Current Basic Shares Outstanding 41.6

Shares to be Issued for UK Acquisition 1.4

Convertible Debenture (US$8.44M @ US$0.52) 16.2

Warrants & Options (Strike @ $2.00) 12.7

Other Warrants & Options (Strike @ $2.34) 12.5

Fully Diluted Shares Outstanding 84.4

Cash Balance as at June 30, 2019 US$5.4

Steppe Gold Limited - Mongolia’s Next Gold and Silver Producer

UPCOMING CATALYSTS

Corporate Presentation September, 2019

INVESTMENT HIGHLIGHTS

STRONG FINANCIAL PARTNERS5

Finalize ADR Plant commissioning, receive cyanide permit, begin leaching and pour first gold in Q4 2019.PROVEN IN-COUNTRY TEAM1 1Declare commercial production.NEAR TERM GOLD PRODUCER2 2Restart exploration at UK and continue exploration program at ATO-Mungu.

DEMONSTRATED DISCOVERY POTENTIAL3 3

Resource update on ATO 1-4, maiden resource on Mungu and further advance feasibility study on fully-permitted Phase 2 expansion project.

SIGINIFICANT EXPLORATION POSITION – BAYANHONGOR GOLD BELT4 4

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CONTACT

The Company’s head office:Shangri-La office, Suite 1201,Olympic street 19A,Sukhbaatar District 1,Ulaanbaatar 14241, MongoliaTel/Fax: +976 7732 1914

Toronto Office:90 Adelaide Street. W, Suite 400Toronto, ONM5H 3V9,CanadaTel: +1 647 951 6506

www.steppegold.com

Aneel WaraichDirector and Executive Vice [email protected]

Matthew WoodChairman, President and [email protected]

Bataa Tumur-OchirDirector and Vice President [email protected]

Jeremy SouthCFO and Senior Vice [email protected]


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APPENDIX


Notes:1. ATO Mineral Reserves and Mineral Resources are as at August 21, 2017 using the CIM Definition Standards (2014).2. Mineral Resources are in addition to Mineral Reserves.3. Mineral Reserves are constrained within an optimized pit shell based on a gold price of $1,300 per ounce.4. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability for heap leaching.5. Contained gold estimates have not been adjusted for metallurgical recoveries.6. Recovered gold estimates have been adjusted for metallurgical recoveries based on 70% for Au and 40% for Ag.7. Mining dilution is 3% and Ore loss is 2%.8. Mineral Reserves and Mineral Resources are estimated using a 0.3 g/t AuEq cut-off grade for oxide material and a 1.1 g/t AuEq. Cut-off grade for fresh material.9. A conversion factor of 31.103477 grams per ounce 453.59237 grams per pound are used in the reserve and resource estimates.10. AuEq has been calculated using assumed metal prices ($1,306.6/oz for gold, $21.6/oz).

Oxide ore calculation: AuEq(g/t) = Au(g/t) + (Ag(g/t) x 21.6 x 0.0321507 x 0.4) / (1,306.6 x 0.0321507 x 0.7)Fresh ore calculation: AuEq(g/t) = Au(g/t) + ((Ag(g/t) x 21.6 x 0.0321507 x 0.75) + (Pb% x 1,844 x 10-6 x 0.6) + (Zn% x 1,944 x 10-6 x 0.55)) / (1,306.6 x 0.0321507 x 0.71)

11. Inferred Mineral Resources have a great amount of uncertainty as to their existence and as to whether they can be mined economically. It cannot be assumed that all or part of the Inferred Mineral Resources will ever be upgraded to a higher category.12. Totals may not match due to rounding.

ATO MineralReserves (1)(3)(5)(6)(7)(8)(9)(10)(12)

TONNAGE GRADE CONTAINED METAL RECOVERED METAL

(Mt) Au (g/t) Ag (g/t) Au (koz) Ag (koz) Au (koz) Ag (koz)

Proven 3.41 1.41 9.72 155 1065 108 426

Probable 1.82 0.93 10.52 55 616 38 246

Proven and Probable 5.23 1.25 10.00 210 1681 147 673

ATO MineralResources(1)(2)(4)(5)(8)(9)(10)(12)

TONNAGE GRADE CONTAINED METAL

(Mt) Au (g/t) Ag (g/t) Pb (%) Zn (%) Au (koz) Ag (koz) Pb (mlb) Zn (mlb)

Measured 7.77 1.51 8.16 0.86 1.54 378 2039 148 263

Indicated 4.46 1.46 13.17 0.55 1.01 209 1889 54 99

Measured + Indicated 12.23 1.49 9.99 0.75 1.34 587 3927 202 362

Inferred (11) 1.05 1.03 25.18 0.52 1.11 35 848 12 26

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MINERAL RESERVES AND MINERAL RESOURCES SUMMARY

STGO - Corp Presentation - September 2019MW€¦ · Steppe Gold Limited - Mongolia’s Next Gold...

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