Mayfair Gold Corp.

Going in. [laughs] All right. Forward-looking statement. So let me talk to the audience. I think we can be pretty open here. So Fenn-Gib is a pretty decent asset. It’s in the Timmins Camp. For the folks that don’t know my background, I’ve built mines around the planet. I permitted the most recent mine in Ontario, the Generation Palladium and Copper Project. And what’s interesting about that is, had I had any hair when I started that process, I wouldn’t have had any hair when I finished it. So that really defines the strategy for Fenn-Gib, is stay out of the federal approvals process. And with this ore body, we have the opportunity to make a strategic path forward.

Timmins is a great camp. It’s probably one of the best camps I’ve worked with in my history. The infrastructure there is exceptional. There’s a lot of labor around for mining. It’s a great place. There’s power. We actually have a highway going across our site. And the management team, again, the reason why I’m there is to build this mine. I’m not here to paint this mine pretty looking and sell it. We’re here to build this mine, as is the management team. We’ve got a recent record of getting mines permitted and actually built around the planet. I’ll show you a slide later on of some of the humans we have on the project.

Again, just a picture of where we are. We’re east of Matheson in the Timmins Camp. The North Block, which you see there, holds the Fenn-Gib asset. We’ve got an exploration project on the south side. It’s called, creatively, the South Block. And that’s right along the Porcupine-Destor Fault. The Abitibi Greenstone Belt is about 300 million ounces of endowment. About a third of that is defined in the Timmins area, which is the Porcupine-Destor Fault.

So what are we doing here? Okay. It’s an open-pit mine. It’s a low-production mine. It’s a low-risk mine. We’re staying below that 5,000 ton a day threshold. And when you look at this picture here, it’s pretty easy to understand why we can do that. Again, the hotter colors obviously are higher grades. We’ve been blessed with a high grade at surface, and that’s what we’re mining. When you look at the dotted line on the outline, that’s our resource. That’s 4.3 million ounces of resource. And that dark line is the 1 million ounce of the PFS.

So we’ve recently published a PFS in early January, and it defines a million ounces, 25% of that resource. And the reason why we’re doing that directly goes back to my first comment, the permitting 5,000 ton a day, below 5,000 ton a day process, and below 5,000 ton a day ore mined. And to get below that 5,000 ton a day ore mined, we have to mine at an elevated cutoff grade, at 0.8. So all that material between 0.3, or your economic cutoff grade, and your elevated cutoff grade, we put that on a stockpile and we call it mineralized waste in the technical report. Had we included that, that would obviously be something that a mining company would wanna mine. But had we included that, we’d been going through the federal review process, and that would take roughly seven years. So under the provincial process, we can make a construction decision in 2028 and be in production in 2030.

So again, this sort of just gives a comparison of why we didn’t go big and why we’re focusing on the small mine. The small mine gets us into production quickly. Like I said, it doesn’t sterilize any of the future potential. There is a scale asset. If we went for that scale asset now, it would probably be about a 25,000 ton a day plant, and that would be north of a billion dollars Canadian, and you wouldn’t get that into production for eight years. But with the strategic path we’ve chosen, we can get that into production very quickly. Again, the doldrums of the Lassonde Curve, we know that. Again, what we have in front of us is, we’re in this period for a short timeframe. We’re not sitting around here for eight years had we planned for that larger asset.

So why do people want to invest in a company like this? It’s a modest production profile. The reality is there’s a path in the short term for catalysts. They’re hugely important for us. And the Ontario government has developed a new permitting regime, which they’ve tried on a few occasions, and on this one I believe it will actually work. It’s called One Project, One Process, One P, One Process. We put our application into that into August. The interesting thing about the process is it typically takes about four years to permit a mine in Ontario. They’ve committed to cut that in half. So eighteen months to two years is the clear expectation for that. So we expect to be designated in the short timeframe. We expect it’ll happen in early October.

Another thing that we’re advancing on, because we’re on a very tight timeframe, is project financing. It’s a modest production profile. It’s a modest capital. $350 million was the PFS Canadian. We’ve already advanced with project financing. The market should see the results of that in fairly short timeframe. We’ll get debt for about 300 million Canadian, and the balance being roughly 250 million, which includes working capital for the project construction.

The other thing that’s hugely important, maybe not so much in Idaho, but certainly in North America, in Canada and specifically Ontario, is Indigenous participation in projects. We have a community that’s about 20 kilometers away from us. We have been advancing that relationship. We will be getting an impact benefit agreement with that. Again, the intent we want to get with that community is we want our success in the project to be their success. Not only is that the right thing to do because we’re working within 20 kilometers of their community, but it also helps us with the government. If the government doesn’t have to deal with the political aspects of permitting and they just deal with the technical aspects of permitting, we could be in a situation where we have full permits ready for construction in 2028.

Again, a couple of things we’re working on. The engineering design, we did a PFS at the beginning of this year. We’ve gone directly into detailed engineering. By the time we get to FID, we should be at 70% to 80% engineering complete. It’s a small plant, so we can go very modular with that. We’ll work with the OEMs to get through that, and that really de-risks the project. On the other leg of the stool, the environmental approvals, we’ve got roughly three years of baseline studies which de-risks the permitting process, and we’ll go through the 1P1P process in a short timeframe. And again, tied in with that, the third leg of that stool is really the Indigenous and community interactions. We’ve got four communities we deal with. One is very close to us, the other ones are 65 to 150 kilometers away from our site. While they’re equally important and the government has flagged them into our project, Abitibi and Ishpeming are the highest priority community we’re dealing with.

So this is some of the highlights. I’ll flag you to the second column there. In the old money, if it was less than 100,000 ounces, it was a bit of a yawner. We mine gold for the upside, but we also mine gold for the cash flow. What we’ve seen on this, because the high grade of this ore body is on surface, we can bring a lot of high grade forward. In the first six years, we actually mined at about 1.5 grams per tonne, and at the time we did the study, gold was about forty-four fifty. I’m not sure what it is today, I think it’s a bit less. But interestingly enough, for a small producer like ours, we can generate 1.4 billion Canadian free cash flow in that first six years. And really, that gives us the opportunity to, one, generate the cash and decide what we’re gonna do with that. What do we do with the mineralized waste? What do we do with the scale asset? It’s a great situation to be in.

For the life of mine on the PFS, it has an average feed grade of about 1.3. And again, we’ll generate about 250 million Canadian free cash flow a year, very similar to Hugh’s project. Again, a lot of detail in here. My background is I am a project operator and a project builder. So the PFS that we put out there, I plan to stand up here three years from now when we’re at the end of construction and to have the same sort of numbers. What you look at, these are a realistic expectation of what those operating costs and construction costs are. Again, a relatively modest production profile. You can see in the first six years, the grade is brought forward. As any mining engineer will tell you, you bring your highest value mineral as far forward as you can to get the highest value.

So now we talk about exploration. The Timmins camp, as I said, is about 100 million ounces of endowment. On the North Block where the Fenn-Gib is, we know what that deposit is. That’s 97% indicated. It’s well drilled off. We know what that is. The South Block, on the other hand, is undiscovered country at this point in time. There’s been some drill holes there, but interesting, there’s a lot of overburden and very little outcrop. That’s a good thing. That’s a good thing. That means there’s opportunities going ahead. The Deser fault is really what defines Timmins. We’ve got a good contact to that, and we have broken it up into four regular domains, where we will prioritize the drilling in the start of the next winter season.

So Mayfair has underperformed, and this is part of a function of the historical... There was a management turnaround here. We had a previous management team before I came on board that was largely replaced. And what we’ve seen over that period, there was a lot of shares that got blown out, and it hasn’t really performed with the market. But frankly, from my point of view, it’s a good opportunity, and that allows the re-rating going ahead.

So what do we see on that re-rating? Right now, when you take the market cap of Mayfair, which is about 300 million, a little less than 300 million, we fund this project and then we evaluate what is the dollar per ounce going ahead. Again, a similar evaluation that other guys that look like me or that may be better looking than me then would tell the same story. But when we get this into construction and into operation, there’s a fundamental re-rating on this share price. And it’s currently been evaluated at about five times what it is right now, with a share price peaking at $20 in the short timeframe. This is really quite remarkable for a greenfields project in this situation.

So why do I have the confidence that we can get this done? And it’s really because of this team. As I said, my background is a mining engineer. I grew up in the plaster dome world. I’ve worked around the world building mines, doing projects, operating mines, and I left the Southern Hemisphere and came back to build Detour Lake Mine, and you’ll see a lot of commonality with the humans on this slide of Detour. And that’s not only we’re getting the band back together, but it’s also fundamental that if you know how to work with people and they know how to work with each other, it makes a fundamentally different project. Projects aren’t built on good ideas, they’re built with people, and this team is set to build it.

So Kevin Annette, he’s our CFO. He was previously the CFO for North America for Barrick. Exceptionally smart operator. Where I like to say I build mines for fun, Desmond Trinquia and Ayaz Kassam, they build it for a living. Ruben Wallin, who’s an exceptionally good environmental sustainability guy, he’s permitted probably eight mines around the planet in his background. Zaim Lakhani, he ran roughly $4 billion with HSBC. He’s an exceptionally good market fellow. He helps us with the debt, helps us with the marketing going ahead. JF Matthai and Audrey DeLazer, both those two characters worked at Detour. JF Matthai is one of the best modelers that exists on this planet. He’s one of the best operating geos that I’ve ever worked with. And Audrey has worked in the Abitibi Greenstone Belt, most recently prior to that at Kirkland and Detour, and then subsequent she helped sell Northern Superior. So this is a team that we’ve brought together that isn’t here to build this mine. We’re here to build this company.

We’ve got a unique board as well. We’ve got two characters from the Muddy Waters. Interesting thing about Muddy Waters is they’re not conventional [chuckles] board members. They’re exceptionally smart, they’re exceptionally good, and these folks, with Sean Pye and Henry Heaney, were really the founders of this company. And we’ve got a few other characters, Zach Allwright and Christina Shea, both exceptionally smart individuals. And then just for fun, we’ve got Pierre Beaudoin, who I worked with at Detour as well, a strategic advisor that I lean on. This is probably one of the things that drew me to this company, the depth and quality of this board, and it’s really the alignment of management, board, and investors, and you don’t get that with every company. And it’s really unique and something that I’m very proud of. We’ve got about 36% in internal ownership, and within a couple of phone calls, we probably have close to 50%.

So right now we’ve got about $20 million in the bank. Burn rate is about $2 million a month. We’re in a good situation. We’re looking to make a construction decision in 2028, so we’re well set up with the catalysts we have in front of us to make some good traction. Top shareholders, you can see the capitalization structure is fairly tight. We’ve got excellent shareholders. They’re a bit sticky. Muddy Waters, Heaney Capital, and Oaktree, about 20%, let’s say 14% and about 8%, and Vestergaard Nicoma is about 5%. These folks, as I said, the investors are aligned with our strategy, and they support us to get through into construction. So it’s a great situation to be in. I think I’m running out of time, so maybe we’ll get back on the schedule.

Thank you very much for the presentation. Just in terms of questions, permitting in Ontario under the One P system, which seems to have halved the timeframe. It has, yeah. Are there any precedents for that program yet? How’s it going so far?

Good question. So there’s three companies that are in that system right now. The system started about this time last year, so it’s only been around for roughly twelve months. There’s two strategic mineral companies in it, Frontier Lithium and Canada Nickel, and the third company is Kinross’ Great Bear. Each of those projects are fairly complicated. Frankly, I don’t know a lot about Frontier Lithium. They have more information out about how they’re progressing, but the other two are fairly complicated process, which will involve a federal EA. So for us, the reason why the government likes us is we’re a simple project. We can get into their project, and they’ve got to be shown to be successful through the One P One process. So it’s a good situation to be in. We’ve designed this project to be a made in Ontario project. Yeah. So while we’re not the first company in, I do expect to be the first company out of it. Yeah.

Okay. And does that timeframe include engagement and agreement with First Nations, or how does that fit in?

Yeah. So in the timeframe that we’re working to is the Indigenous agreement. There’s term sheets that we could sign now on Indigenous agreements, but that’s not my distraction. My distraction is getting those agreements correct. It’s a relationship that will last for multiple years, and we have multiple strategies through that, so the relationship has to be strong. Having operated mines in Ontario, you know what some of the pitfalls are. Mm-hmm. So if you sign something where you know there’s a pitfall, you know there’s gonna be a fight down the road. And I want Mayfair and the Fenn-Gib success to be the community’s success. So we’ll likely get an agreement. If things go exceptionally well, it’s the end of this year. If things go normal, it’s probably Q1 or the first half of 2027. Mm-hmm. But that’s one of the most important relationships we have to establish. Yes.

Okay. Very good. Are there any questions from the floor? Availability of contractors and skilled staff?

Good question. That’s certainly a risk in the construction. Where we are, it’s outside of Matheson. Probably some of the best contractors that I’ve ever worked with are in Val d’Or and Rouyn area. There’s a lot of contractors in Timmins. So we’re sort of the centroid for, one, construction labor around Kirkland, Kirkland Lake, Timmins, and Cochrane, and then for the major contractors, just across the border in Rouyn and Quebec. So if you’re gonna be building anywhere, this is probably one of the best places to build.

The other thing we’re doing to de-risk the project is, because this is a relatively small project, we will modularize a bunch of the plant. This is smaller than, frankly, the Detour waste crushing plant that we built. So we can modularize the crusher. We can modularize a lot of the tanks. We can do the same thing with the thickeners. We can have the thickeners built in China, constructed, inspected, dismantled, put in four C cans and bring them over. So really what we’re doing is we’re working with the OEMs, both FLS and Metso. We want them to design what they’re good at, their islands, and also supply it as modular as we can get. And what that does is that shortens the timeframe and really de-risks the construction phase. So they have to bring in the crusher, or they have to bring in the HIG mill and plumb it in. So it’s a fundamentally different design than a stick build everything. Thank you.

Okay. Thank you, Drew.