San Juan Gold

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Investment Opportunity

San Juan Gold Mine


Arequipa, Peru

controlled by..
PROINVERT SAC
June 2016

220 km2

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San Juan Gold Mine SAC
Pro Invert Ownership and Structure
30 KM
PROINVERT SAC

100% 100%

Century Mining Century Mining


Century
Peru Finance
Operations SAC
56.4% 26.2%

Employed Minority Other Minority


San Juan Gold Mines SAC
Shareholders Shareholders
82.6% 7.29% 10.21%

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San Juan Gold Mine SAC
Asset Review
Rich Historical Mining • Over 735Koz Au since 1970 when recording production started

8-1/2 Year Average • 21,000 oz Au


Production
Resource/Reserve • Mine site 2015 reserves 215,000, balance of NI 43-101 reserves 125,000 ounces in 20
of 40 veins
Mining Method •
.Conventional cut and fill, semi trackless in new mine starts
Processing Method • Combination sulfide floatation and gravity recovery of concentrates, leach/ Meryl
Crowe zinc precipitate gold recovery, 100 TPD carbon-in-leach (CIL) high grade circuit.
Approved EIA’s for 750 • 14 years flotation and 10 years cyanide tailings capacity along with recently approved
TPD Production reclamation plan.
Excellent Exploration • Typical mesothermal veins expected to continue at depth exemplified by primary
Potential veins mined over 800 meters and horizontal extents up to 3 kilometers.
• Classic porphyry setting includes three (3) prospects with showings at surface.
Approximately 45 veins identified at surface only 50% accessed.
Regional Purchased • Key location for purchased ore application with over 300 TPD of high grade ore
Ore Potential traveling on public roads with higher grade ores processed in the region in primitive
stone mills.

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San Juan Gold Mine
Location

5 ½ hours from Arequipa by road…88


km improved road up the Ocoña River
valley, NE of Ocoña off the Pan-
American Highway
Currently in Production

San Juan Mine


• Pro Invert now maintains a land
position in Peru exceeding 220
sq kms, including numerous
exploration targets.

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San Juan Gold Mine SAC
Property Review
San Juan Gold Mines
• South dipping mesothermal veins
Property covers 220 Km² continuous at depth and 3+ km in
length
• Over 20 veins accessible

220
Km2

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San Juan Gold Mine
Quick Facts
Location Peru
Mine Type Underground Growing Production
Reserves (2p) (2015) 8.25 g/t Au 215 Koz Au • 14.3k oz Au in 2008
Resources (M & I) 8.25 g/t Au 215 Koz Au • 24k oz Au in 2015
Resources (Inferred) 8.54 g/t Au 185 Koz Au • $12M capital required to expand operations
to ~35K-38K oz/yr by 2018
Estimated Mine Life 7+ years
Gold Production 2016 (with Financing) 26k – 27k
Expansive Land Package
Total Cash Cost/oz 2015 US$1178
• Property size: 220 square kilometers
• Expanding reserve/resource
• Opportunity to extend mine life

Significant Upside
• Multiple targets identified locally and
regionally
• Long history of mining in area with close to 1
M oz produced to date; strong community
relations.
• Simple metallurgy: 85%+

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San Juan Gold Mine SAC
Google Earth View 2010

Soccer
field

Mill

Mill Pond

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San Juan Gold Mine SAC
Aerial View 2015

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San Juan Gold Mine SAC
Conventional Mining

Haulage

Raise
Development

Conventional mined cut and fill stopes provides minimum mining dilution.
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San Juan Gold Mine SAC
Mercedes Vein
• Typical long section of Mercedes Mine with
active mining in upper and lower zones and
reserve blocks indicated.
• Typically 40 to 80 cm and 10 – 15 g/t mine
grade.

New vein Veta Norte Ramp target with surface drill hole intersections
30 – 50 cm at 30 to 95 gpt average 37.35 gpt over 1.625 meters

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San Juan Gold Mine SAC
San Juan Vein
• Original San Juan vein mined vertically over 900 meters
and longitudinally 2 km.
• Lower level is Esperanza Mine typically 1 – 1.2 m wide
(maximum of 3 m mined in 2008) and 6 to 11 g/t mine
grade.
• Upper level is the Diagonals 5 parallel veins 30 to 50 cm at
5 – 8.5 g/t mine grade.
Four Mine access: Esperanza Level
150, Level 0 and Matilda

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San Juan Gold Mine SAC
Mercedes Vein
Mining
Historic MiningOperations
at San Juan Gold Mines
• Mineralization Demonstrated by grade Mercedes East
contour mapping
• Exploitation by Conventional Mining
o Access by Gallery/By Pass and shaft
o Vein extraction from 40 x 40 meter stopes
and minimum mining width or cut and fill
Update Mine Operations
Proposed mine expansion and grade
increase:
• Diamond drilling to locate ore in
advance of mining
• Ramp access in new mine areas:
o Easy diamond drill access
o Allows development directly to zones Mercedes East
o Trackless mining
New Mining
• Improved blasting technology to reduce
Area
mining dilution
• Expediting raise development through
mechanized development
• Development of access to four (4) high
grade surface oxide zones of existing
veins Expand Reserves & drilling in
advance of mining.

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San Juan Gold Mine SAC
Veta San Juan - Esperanza

DIAMOND DRILL PROGRAM


- Located New Vein in Esperanza Veta Sud
NV 734
NV 734

T AJO 8208 T AJO 8225 T AJO 8274 T AJO 8313


T AJO 8603 T AJO 8648 T AJO 8730 T AJO 8767S T AJO 8843 S - 8847 N T AJO 8879S T AJO 8927S T AJO 8968S T AJO 9053 T AJO 9174

NV 699 NV 699
7 00.0 0 m. s.n.m BLOQUE A - b9317 7 00.0 0 m. s.n.m
SJ 156
T AJO 8293
T AJO 8183 T AJO 8242 T AJO 8567 T AJO 8598 T AJO 8646 T AJO 8710 T AJO 8716 T AJO 8745 T AJO 8860 T AJO 8923 T AJO 8970 T AJO 9024 T AJO 9079 T AJO 9129 T AJO 9176 T AJO 9222 T AJO 9274
T AJO 8925 VI T AJO 8968 VI
BLOQUE A - a9317

NV 660 NV 660
BLOQUE A - a8995 BLOQUE A - a9058 BLO QUE A - b 9202
BLOQUE A - a8561 BLOQUE A - a8883 BLOQUE A - a 9202
6 50.0 0 m. s.n.m SJ 119 SJ 117 SJ 115 SJ 113 SJ 111 SJ 109 SJ 107 SJ 101 6 50.0SJ 103
0 m. s.n.m
T AJO 8883 BLOQUE A - a 9323
SJ 120 BLOQUE A - A 3 W
SJ 118 BLOQUE A - A 2 W
SJ 116 BLOQUE A - A 1 W
SJ 114 SJ 112 SJ 110 SJ 108 SJ 106 T AJO 8561 T AJO 8615 T AJO 8677 T AJO 8735 T AJO 8763 T AJO 8797
T AJO 8939 T AJO 8967 T AJO 8995 T AJO 9058 T AJO 9115 T AJO 9202
SJ 100 SJ 102

BLOQUE A - b9323

NV 609 NV 609
SJ 155 SJ 153 SJ 151 SJ 149 SJ 147 SJ 145 SJ 122 SJ 124 SJ 126 SJ 128 SJ 130 SJ 132 SJ 134 SJ 136 SJ 138 SJ 140 SJ 142
6 00.0 0 m. s.n.m 6 00.0 0 m. s.n.m
SJ 154 SJ 152 SJ 150 SJ 148 SJ 146 SJ 121 SJ 123 SJ 125 SJ 127 SJ 129 SJ 131 SJ 133 SJ 135 SJ 137 SJ 139 SJ 141 SJ 143

North Vein
Intermediate Vein
South Vein

South Split
• Two operating underground drills and a 3rd in repair.
• In addition a 500 meter surface and u/g rig is available.
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San Juan Gold Mine SAC
Mercedes Norte

DIAMOND DRILL PROGRAM – Located New Vein in


Mercedes Veta Norte High Grade Split

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San Juan Gold Mine SAC
Veta Clara
• Veta Clara’s western
extension has been
accessed…vein grade
is 45 gpt.

• DIAMOND DRILL Visable Gold from Veta Clara


PROGRAM - located
Veta Linda and Veta Clara
Norte establishing
continuity over 500
meters.

• Veta Clara is contract


mined at a fixed cost
per ounce.

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San Juan Gold Mine SAC
Mine Capital Improvements (immediate capex)
Mine Capital Planned Expenditures Plan Capital
($US)
Jacklegs/Stopers 155,000 Planned Capital for Mine
Slusher Joy 20 HP 95,000 Infrastructure increases
productivity buy:
Pneumatic Shovel 90,000
Ventilators 5,000 CFM 50,000 • Increased hoist rate
• Improved cycle time
Ventilators 20,000 CFM 60,000 • Improved productivity
Submersible Pump / Stationary Pump 30,000 (tonnes/manshift)
• Increased production
Vertical Shafts/Hoists 600,000
Locomotive 2.5 T /4 T 130,000 Max Capital includes new shafts
Air & Water 145,000 in primary mines and substantial
increased mine production.
Electrical – Capacitors / Relocation Transformers 185,000
Mining Cart U-35 40,000
Generators 20,000
Total $1,600,000

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San Juan Gold Mine SAC
Mineral Resources 2010 - 2015
NI 43-101 June 2011 Year End 2011 Year End 2012 Year End 2013 Year End 2014 Year End 2015

Classification
Grade
Grade Ounces Grade Ounces Ounces Grade Ounces Grade Ounces Grade Ounces
Tonnes Tonnes Tonnes (g/t Tonnes Tonnes Tonnes
(g/t Au) Au (g/t Au) Au Au (g/t Au) Au (g/t Au) Au (g/t Au) Au
Au)
Proven 316,465 6.98 70,979 297,313 7.44 71,161 281,117 6.96 62,879 261,412 7.23 60,800 241,795 7.14 55,484 278,865 7.89 70,698
Probable 558,865 8.51 152,962 512,520 8.69 143,139 487,100 8.32 130,233 519,844 8.37 139,815 499,950 8.21 131,920 534,088 8.44 144,848
Total Reserves 875,330 7.96 223,941 809,833 8.23 214,301 768,217 7.82 193,112 781,256 7.99 200,615 741,745 7.86 187,404 812,953 8.25 215,546
Measured (M) 395,034 6.38 80,965 171,837 7.02 38,781 155,859 6.26 32,159 138,269 6.85 30,429 135,353 6.66 28,978 170,191 7.69 42,052
Indicated (I) 645,382 7.86 163,121 637,996 8.56 175,520 612,358 8.18 160,953 642,987 8.23 170,186 606,392 8.13 158,426 642,762 8.4 173,495
Total M & I 1,040,416 7.3 244,086 809,833 8.23 214,301 768,217 7.79 193,112 781,256 7.99 200,615 741,745 7.86 187,404 812,953 8.25 215,547
Inferred 744,486 8.59 205,509 643,792 8.87 183,599 604,362 8.49 165,050 659,862 8.48 179,930 630,033 8.37 169,634 674,992 8.54 185,286
Total Resources 1,784,902 7.84 449,595 1,453,625 8.51 397,900 1,372,579 8.10 358,162 1,441,118 8.21 380,545 1,371,778 8.10 357,037 1,487,945 8.38 400,833
Reserves and Resources
• Reserves defined through vein sampling and diamond drilling.
• Reserves typically are replaced while accessing reserves for mining.
• Reserves have not significantly decreased in 5 years, reserves/resources continue to be replenished.
• In 2015 CMP installed diamond drilling in advance of mining to optimize development cost.
• Ongoing development current average cost is 23% of mining costs, 38% in our primary mining areas.
• Reserves exclude surface resources
Note: The 2015 Mine Site reserves were reviewed by a qualified professional just recently.

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San Juan Gold Mine SAC
Exploration Potential
Four known mineralized epithermal prospects:

VETA CLARA: Seven veins parallel intercepting


the Chocolon Fault, in mining
since 2012.
SANTA CLARITA: Iron oxides, copper-moly-silver-
visible gold in stock work's and
near major fault zone.
LILY-LA HUACA: Quartz-gold veins in medium to
coarse-grained sandstones.
ERIKA: Copper-moly-gold-silver
porphyry system.
GOLDEN CHAMPUNE: Stockwork in granodiorite
intruded by andesitic dykes
containing gold adjacent to the
margin of the dykes.

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SAC 18
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San Juan Gold Mine SAC
Vein Exploration Potential

• Multiple zones identified


across property provides
additional upside with
focused drill program.

• In total, 40+ veins have been


identified.

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San Juan Gold Mine SAC
Surface Resources
San Juan development was on vein.
Development Rosario Other Tails
Screening development waste
Waste Tails
produces mill feed 1.8 to 3 g/t with
Volume (m3) 228,565 no mining.
Density (Ton/M3) 2
Tonnage (T ) - 1”minus 160,000 42,000 20,000
Grade (g/t Au) 2 8.5 4.5
Processing now
Recovery (%) 80 70 60
Ounces (Au) 10,289 7,562 1,736
Processing Cost (US$) 40 142 34

Rosario
Concentrate Tails
are scheduled
for reprocessing

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San Juan Gold Mine SAC
2007 - 2015 Gold Production

2015

2014

2014

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San Juan Gold Mine SAC
Mill Facility

Crusher

Grinding/Flotation

Concentrate Leaching

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San Juan Gold Mine SAC
Mineral Processing
Planned operations:
1. Add 3rd grinding line (under construction)
• Permitted mill capacity is750 tpd
• Peak sulfide capacity at 550 tpd
• Peak CIL capacity 160 tpd
2. Processing all surface resources
• Reprocessing concentrate tailings 5 – 10 g/t
• Screen development waste and stope
backfill for additional sulfide ore without
mining
3. Focus on purchased ore from:
• Sanctioned artisan mining on San Juan
concessions
• Neighboring authorized artisan mining
operations
Mill Operations Existing Capacity: • Local mines
• Sulfide Floatation – 440 tpd • Contract mining/development
• Carbon in Leach - 100 tpd 4. Increase CIL capacity to 250 tpd in 2016
o @100 tpd (tailings & surface resources)¹ • Up to 3 additional 20 x 20 agitated leach
o @80 tpd (High grade oxide ores} tanks
¹Note: Proven experience reprocessing old flotation tails. 5. Enhanced recovery
• Agitated leaching concentrates
• Gravity recovery from tails
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San Juan Gold Mine SAC
MILL

FLOTATION 6x6 REBUILD


COMPLETE

CIRCUIT 3 HIGH GRADE CIRCUIT 1 CIRCUIT 2

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San Juan Gold Mine SAC
Flotation

ROUGHER FLOTATION

CLEANER FLOTATION

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San Juan Gold Mine SAC
Mill Ponds January 2016

MILL SEDIMATATION PONDS

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San Juan Gold Mine SAC
Mill Capacity Upgrades to Lower Cash Cost
Mill Expansion Plan Capital
($US)
Electrowinning (Cells) 15,000
Carbon Reactivation 30,000
Adsorption 25,000
Desorption 25,000
High Grade Circuit (6x6 Mill, 3 20x20 tanks) 290,000
Agitated Concentration Leach/Gravity 180,000
Milling (Crusher, Belts, Screen, Grinding) 300,000
Total $865,000

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San Juan Gold Mine SAC
Mill Capacity Upgrades to Lower Cash Cost
Mill projects –Increased capacity, recovery and
lower operating cost (US$ 58 per oz)
3rd Grinding Line Tertiary Crusher
50% complete
40% capacity installed
within 60days of
financing

GRAVITY RECOVERY TAILS LOSSES

Agitated Leach

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San Juan Gold Mine SAC
Local Mines to Start/RestartSANTA MONICA
VETA PEDRO Millonaria

Chillihuay La Pampa
Diagonals

Veta Clara
VETA
LINDA

Veta
Alpacay

Esperanza

JUNITA

Veta
Jessica

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San Juan Gold Mine SAC
Tailings Storage Capacity
Flotation Tailing Storage
• Permitted to height of 15 m
• Permitted capacity ~14 years at 750 tpd

Flotation Tailing Pond 1

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San Juan Gold Mine SAC
Cyanide Tailings Storage
• Permitted capacity ~5 years at 300 tpd
• Permit to construct received in Jan. 2014

New CIL Tailings Pond 1

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San Juan Gold Mine SAC
Connection to the Grid
• Engineering study commenced for the first 2.5
MW’s carried by a 33.1 kVA line
• Maximum available power 5 MW
• Project shared participation with other local
mines.

Alternative 4

CAPITAL COST US$ 4,500,000


Estimated cost reduction US$ 143 per oz

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San Juan Gold Mine SAC
Exploration Prospects
• San Juan Gold Mines has two potential porphyry exploration prospects with high
potential for locating mineralization at depth:
o Santa Clarita: Au/Cu/Mo/Ag (recent surface program showed high silver grades .5 – 2 opt)
o Erika : Cu/Mo/Au/Ag
• Goal is to develop the porphyry assets separately from San Juan Gold Mines.

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San Juan Gold Mine SAC
Going Forward
Production:
• Increase accessible reserves in primary high grade mines and lower mining cost
• Increase purchased ore from contract mining to 3,400 tonnes per month by end of year 3.
• Optimize gold production from core mines starting at 18,000 oz/yr and increase to 23,500
over next 4 years, sooner with maximum capital investment
• Reprocess surface resources, screened development waste, and high grade tailings
o 15,000 ounces recoverable first 2 ½ years to offset past labor debts.
Lower Operating Costs:
• Reducing development required for accessing ore by:
o Diamond drilling in advance of mining and engineered ground support.
• Reduce employees by retiring past workers debt in year 1.
• Update mine infrastructure services (air, water, power) and refurbishing equipment.
• Construction of overland power line projects (2 over next 2 years)
• Complete upgrade of CIL from 160 tpd to 250 tpd with maximum capital investment.
• Install agitated leach to replace low recovery pachuca's and gravity circuit on tails to increase
overall recovery.
• Construct access shafts/declines/ramps to maximize capacity of primary mines
Reserves:
• Expand reserves by underground drilling; Locate veins and start new mining areas within
existing development, diamond drill below bottom levels
• Develop reserves in oxide at surface

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San Juan Gold Mine SAC
Future Opportunities
Purchased Ore Program:
• Expand purchases of ore from sources within 100km distance of Mill
• Construct access to the Pampas area above mine for contract
development of high grade oxide resources.

Mine Rollup in Public Company:


• Complete arrangements with past workers.
• Partner with near neighbors on power line projects.
• Explore options for roll up of near operations to combine production
over 50,000 ounces per year.

Exploration Upside:
• Place exploration properties into a new company
• Fund preliminary program to assess targets and conduct surface
program and preliminary exploration drilling.
• Take viable properties public.

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San Juan Gold Mine SAC
Investment Opportunity
Opportunity: Invest in Pro Invert to Secure % Ownership in San Juan Gold Project

Objective: Secure capital investment to increase production/efficiency and


decrease Cash Costs from 2016 through 2018:
• Increase annual production from 25 Koz to 38K oz increasing revenue from $29M to $47M
at $1250 gold price.
• Decrease Cash Cost per Ounce from ~US$1170/oz to US$747/oz increasing margin by
US$423/oz or potential annual / free cash flow by $10M.
• Significant operating efficiency is immediately obtained in handling and tonnage per day
productivity, process recovery, and targeting/developing new and existing underground
zones.
• Mine Operating Schedule can increase to 24/7/365 from 16/6/365, maximum production.

Cash Costs per Ounce Savings due to Capital Investment:


Capital Savings Notes
Debt Restructuring: US$ 6.0M US$ 49/oz * Reduce finance costs 1st 2 years
Mill: US$ 0.9M US$ 58/oz * Increase recovery by 3-5%
Power Line: US$ 1.0M US$ 143/oz * 18 months to build
Underground: US$ 1.6M US$ 65/oz * Within 14 months
Buy Out Minority Shareholders:US$ 2.5M US$ 163/oz * Immediate return
US$12.0M US$ 478/oz

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Production Growth vs Cash Costs
Historical vs Forecast
Opportunity: Capital Investment Growth and Savings
50 1800

45 1600

40
1400

Cash Costs Per Ounce


Annual Production

35
1200
30
1000
25
800
20
600
15
400
10

5 200

0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017e 2018e

Production Cash Costs Realized Gold Prices

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