phase...market dynamics china produces 90% and consumes 60% of the world’s rees. global ree market...

2 | Corporate Presentation | SMY: TSX-V | searchminerals.ca | March 2019

SMY: TSX-V

Cautionary Statement

The following presentation may include certain “forward-looking statements” within the meaning of the United States Private Litigation

Reform Act of 1995 and applicable Canadian Securities Laws. All statements other than statements of historical fact, included in the

presentation, including without limitation, statements regarding potential mineralization and reserves, exploration results, and future

plans and objectives of Search Minerals, are forward-looking statements. Words such as “expect”, “anticipate”, “estimate”, “may”,

“will”, “should”, “intend”, “believe” and other similar expressions are forward-looking statements. Forward-looking statements are

not guarantees of future results and conditions but rather reflect our current views with respect to future events and are subject to

risks, uncertainties, assumption and other factors, and actual results and future events could differ materially from those anticipated in

such statements. There can be no assurance that such forward-looking statements will prove to be accurate. We base our forward-

looking statements on information currently available to us and we do not assume any obligation to update them, except as required

by law.

An additional Cautionary Note to Investors: In the event that we use certain terms in this presentation such as “resource”,

“measured resource”, “indicated resource” and “inferred resource,” US investors are cautioned that, while such terms are

recognized and required by Canadian Securities Laws, the United States Securities and Exchange Commission does not recognize

them. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the

mineralization could be economically and legally produced or extracted at the time the reserve determination has been made. U.S.

investors should not assume that all or any part of measured or indicated resources will ever be converted into reserves. In addition,

“inferred resources” have a greater amount of uncertainly as to their existence and as to whether they can be mined legally or

economically. Accordingly, information concerning descriptions of mineralization in the presentation may not be comparable to

information made public by companies that are subject to the SEC’s Industry Guide 7.

All of the scientific and technical information contained herein has been reviewed and/or prepared by either Dr. Randy Miller, P.Geo.

or Dr. David Dreisinger, both being a “Qualified Person” within the meaning of National Instrument 43-101-Standards of Disclosure

for Minerals Projects. For further details of the Company’s procedures and policies for data verification, the reader is referred to the

Company’s news releases and other material information available on the Company’s website at www.searchminerals.ca or on

SEDAR at www.sedar.com

http://www.searchminerals.ca/

http://www.sedar.com


SMY: TSX-V

About Search Minerals Inc.

▪ Focused on developing and continued exploration within the emerging Port Hope Simpson

Critical Rare Earth Element (CREE) District of SE Labrador.

▪ Primary objective: Extend the Mine life of District to greater than 14 years, with the

development of Foxtrot and Deep Fox as the initial projects

▪ In February 2017, pilot plant testing clearly demonstrated the ability to produce a high purity

mixed rare earth oxide (REO) concentrate from over three tonnes of Foxtrot material.

▪ October 2017, InCoR Holdings make strategic investment into Search and appoints 2

members to the Board. Search will continue to seek out value-added partners and to

delineate prospects that will ensure competitive low-cost production well beyond the 14-year

mine life contemplated in the PEA.

▪ Search has strong working relationships with government partners at all levels (including

Atlantic Canada Opportunities Agency, InnovateNL, Department of Natural Resources,

NunatukaVut Community Council)


SMY: TSX-V

The Opportunity

▪ Control of a 70 km x 8 km Critical Rare Earth Element District

▪ Preliminary Economic Assessment on Foxtrot Deposit

▪ Low Initial Capital Cost $152M ($CDN) (including $33M contingency)

▪ After-Tax Payback Period – 4.4 years

▪ Foxtrot and Deep Fox are Two of Three Significant Discoveries in the District

▪ Deep Fox – Mineral Resource Estimate to be initiated

▪ Fox Meadow – Continue Channel sampling program to develop drilling plan

▪ Breakthrough Hydrometallurgical Process (US Patent Pending)

▪ $1.9M ($CDN) pilot plant project successfully completed in February 2017

▪ Produced a high purity (98.99%) mixed rare earth oxide concentrate for further refining

▪ the resulting dry stackable residue is environmentally friendly

▪ Upward trending spot Nd/Pr oxide prices, at 3 year highs, up 50% YTD

▪ Experienced Management, Board and Technical Teams

▪ Mining Friendly Jurisdiction – Supportive Indigenous and Local Communities


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Exploring for REE in Labrador since 2009Community of St. Lewis 12 km from the Foxtrot and 2 km from Deep Fox


SMY: TSX-V

REEs: Critical for the 21st Century

Green Energy

• Hybrid and Electric Vehicles

• Wind Energy

• Energy Efficient Lighting

Military and Defense

• Communications

• Aeronautical engineering and Jet Engines

• Guidance, Lasers, Sonar, Optics, and Electronic Counter Measures

Modern Technologies

• Cell Phones and Digital Cameras

• LCD and Plasma Televisions

• MRI machines, X-Ray, and PET Medical imaging

The Toyota Prius is estimated to contain:

1 kg Neodymium Metal15 kg Lanthanum Metal0.1 kg Dysprosium Metal

Sales exceed 1 million units per annum

Each F35 fighter aircraft requires 417 kg of REEs Each US nuclear submarine requires about 4,000 kg of REEs


SMY: TSX-V

About Rare Earth Elements (REEs)

Source: Adamas Intelligence

Search Minerals is

positioned to supply the

rare earth elements, Nd,

Pr,Dy,Tb for the

upwarding trending

permanent magnet

market

“China is likely to

become a net

importer of certain

rare earths by 2020” Adamas Intelligence –

November 2017 Report


SMY: TSX-V

REEs: Automakers committed to EV Future

▪ Volkswagen US$84 billion: goal of bringing 300 EV models to market by 2030

▪ Ford investing $4.5 billion over 5 years: on 13 new models for 2023

▪ GM to phase out ICE vehicles; 20 EV models by 2023

▪ Volvo: all new cars produced after 2019 will be electric or hybrid

▪ BMW to mass produce EVs by 2020: 12 different models available by 2025

▪ Mercedes-Benz: electrifying its entire lineup by 2022

▪ Canada’s Magna and Linamar: investments in EV supply chains


SMY: TSX-V

REEs: EVs Pressure on Material Supply


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Market Dynamics

▪ China produces 90% and consumes 60% of the world’s REEs.

▪ Global REE Market – Est. $ 3B-$5B

▪ China has the majority of Rare Earth Oxide refining capacity.

▪ Lynas Corporation (Australia) only significant REE producer outside of

China.


SMY: TSX-V

Our Assets - District Scale Opportunity

▪ Search controls a 70 km x 8 km CREE District at tidewater

Key Points

Over 20 prospects so far.

Three major discoveries

• Foxtrot Deposit

• Deep Fox

• Fox Meadow (2016)

Excellent geological and

geophysical control.

April 2016 PEA is based on

the Foxtrot deposit only.


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Foxtrot, Deep Fox and Fox Harbour House


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Our Assets – Foxtrot Deposit

• Foxtrot Deposit lies within

the Fox Harbour Volcanic

belt. Delineated by over 70

drill holes, geological

mapping and geophysics

• Accessible location with high

grade zones containing

significant quantities of

CREEs


SMY: TSX-V

▪ Mine would have a 14-year lifespan consisting of 8 years open pit and 6 years

underground producing at 1,000 tpd.

▪ Revenue estimates are dominated by Nd (39%), Dy (29%), Pr (14%) and Tb (8%), all

elements that are projected to remain in supply deficit.

Our Assets Foxtrot NI 43-101 - Preliminary Economic Assessment

CLASSIFICATIONCut-off$NSR

TONNAGE (TONNES)

Dy (ppm)

Dy2O3

(ppm)Nd

(ppm)Nd2O3

(ppm)Pr

(ppm)Pr6O11

(ppm)LREE

% LREO

%HREE

%HREO

%TREE

%TRE0

%

OPEN PIT

INDICATED $165 4,129,000 177 203 1,393 1,625 372 449 0.69 0.83 0.17 0.2 0.86 1.03

*INFERRED $165 228,000 179 206 1,378 1,607 368 445 0.68 0.82 0.17 0.2 0.85 1.02

UNDERGROUND

INDICATED $260 3,263,000 209 240 1,602 1,868 429 518 0.78 0.94 0.19 0.23 0.97 1.17

*INFERRED $260 1,730,000 201 231 1,602 1,868 430 520 0.8 0.96 0.19 0.23 0.99 1.19

TOTAL INDICATED

7,392,000 191 219 1,485 1,732 397 480 0.73 0.88 0.18 0.21 0.91 1.09

*TOTAL INFERRED

1,958,000 199 228 1,576 1,838 423 511 0.79 0.94 0.18 0.22 0.97 1.17

RPA, 2016: Search Minerals Inc. Technical report on the Foxtrot Project in Labrador, Newfoundland and Labrador Canada. NI 43-101 Report prepared by Masun,

K.M., Weir, I.C. and Goode, J.R. April 1, 2016 (filed on SEDAR May 2, 2016).

*Cautionary Note: The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative

geologically to have the economic considerations applied to them to enable them to be categorized as mineral reserves and there is no certainty that

the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have a demonstrated economic viability.


SMY: TSX-V

Our Assets

Foxtrot Deposit

FOXTROT PEA FINANCIALS ($CDN)

Plant Capacity 1,000 tpd production rate / 4.9 Mt over 14 years

Pre-Tax NPV10% and IRR $93 million and 22%

After-Tax NPV10% and IRR $48 million and 16.7%

Payback Period Pre-tax 3.5 years , After- tax 4.4 years

Gross Revenue LOM $1.7 billion

Facility Operating Cost $238 per tonne

CAPEX $152 million for startup with a $33M contingency

$ 57 million for underground - funded from operations

$ 23 million for mine closure - funded from operations

Cautionary Note: The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative

geologically to have the economic considerations applied to them to enable them to be categorized as mineral reserves and there is no certainty that

the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have a demonstrated economic viability.


SMY: TSX-V

Our Assets - Deep Fox Discovery

Drill Program Phase 1 and Phase 2 completed

➢ Surface channels and Phase 1(Dec 2017/Summer 2018):

15 drill holes (2500m)

➢ 10 holes to 50m intervals, 5 holes to 100m intervals

➢ First 8 holes of 15 - assays confirm true width 11m to

32m and grades of Nd, Pr, Dy, Tb over 15% greater

than Foxtrot

➢ Phase 2 (Fall 2018): 8 drill holes (2500m)

➢ 3 holes on the 100m level, 2 holes on the 150m level

and 3 holes on the 200m level);

➢ Assay grades of Nd, Pr, Dy, Tb over 15% greater than

Foxtrot

Excellent location:

➢ 12 km from Foxtrot

➢ 2 km from St. Lewis deep water port and road network


SMY: TSX-V

Our Assets – Deep Fox Assay Results

➢ DEEP FOX has higher grade mineralization and higher true widths than FOXTROT;

➢ Mineralization open below 200m depth ;

➢ Mineralized zone is 350m in strike length, from 11m to 32m wide (true widths):

➢ Phase 1 assay highlights (all true widths):

o FD-18-01 (50m level): 306 ppm Dy, 2264 ppm Nd, 608 ppm Pr, 2542 ppm La over 8.4m;


o FD-18-04: (100m level): 274 ppm Dy, 1961 ppm Nd, 531 ppm Pr, 2128 ppm La over 18.8m;

➢ Phase 2 assay highlights (all true widths):



o FD-18-20: (200m level): 212 ppm Dy, 1528 ppm Nd, 415 ppm Pr, 1770 ppm La over 10.14m


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Deep Fox Discovery – Drill hole locations


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Our Assets - Fox Meadows Discovery

▪ 11 km west of Port Hope Simpson

▪ Similar surface strike lengths as Foxtrot

▪ At least 30m wide and 500 m long

▪ Exists in a treed and till covered area; more

difficult to establish width.

▪ Mineralized channel sample assays are

on par with Deep Fox

A breakthrough in SIMPLICITY, LOW COST AND EFFICIENCY!


SMY: TSX-V

Pilot Plant Testing a Great Success

▪ Processed over 3.0 tonnes of material

representative of the Foxtrot Deposit.

▪ Clearly demonstrated the ability to produce a

high purity mixed Rare Earth Oxide (REO)

concentrate.

▪ Average extractions of 85% neodymium (Nd),

86% praseodymium (Pr), 68% dysprosium (Dy),

71% terbium (b) and 86% lanthanum (La)

▪ Successfully demonstrated the ability to bring

uranium, thorium, zinc, and iron levels below

levels expected by regulatory agencies and

refineries.


SMY: TSX-V

The Direct Extraction Process

▪ Material is crushed and treated

with relatively small amounts of sulphuric

acid at 180C (low temperature)

to render the REEs water soluble.

▪ After water leaching, the rare earth solution

is purified by neutralizing the remaining acid.

The REEs are then precipitated into a

concentrate using sodium carbonate.

▪ The rare earth carbonate is re-dissolved in

sulphuric acid to reject remaining impurities

and then REEs are precipitated again.

▪ The rare earth precipitate is calcined (heated) to

produce a high grade mixed rare earth oxide.

Slurry of mixed rare earth carbonate for

sulphuric acid re-leaching

Acid/material mixture for feeding to heater


SMY: TSX-V

The Direct Extraction ProcessCost and Competitive Advantages

Water Leach Circuits

REPS Solids before/after calcination


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Foxtrot Material at Different Processing Stages

Vial #1 - Finely crushed material at start of metallurgical process

Vial #2 - Orangey stained “dry stackable” residue containing an iron precipitate

Vial #3 - 35% mixed rare earth carbonate precipitate after uranium ion exchange

Vial #4 - 60% zinc sulfide precipitate after removal of thorium, iron, aluminum and silica

Vial #5 - High purity rare earth oxalate

Vial #6 - Reddish final rare earth oxide made by heating the high purity oxalate


SMY: TSX-V

Next Steps - Processing

Pilot plant optimization (commenced January 2019, completion date August 2019)

➢ Enhanced process integration

➢ Equipment testing

➢ Streamlined impurity removal

Demonstration plant

➢ Design and build at ~1/100th of full scale (10 tonnes of ore per day)

➢ Produce up to 9 t of 99% high purity mixed REO concentrate

Separation and magnet manufacture

➢ Working with a number of separation companies to produce individual high purity

rare earth products

➢ High purity rare earth products can be used to test magnet fabrication


SMY: TSX-V

Business Strategy

Through Joint Ventures and Strategic

Partnerships, Search will bring additional

expertise to maximize production, sales cycles

and return to shareholders.

▪ Search Minerals – will continue to develop the District and manage processing

facility and mine operations when construction decision is made.

▪ Strategic Partner / Joint Venture Partner – Funding the Bankable Feasibility Study

needed to support a decision to build a Mine and Processing Facility.

▪ Off-Take Partner – Supports financing by providing a purchase agreement for the

individual Rare Earth Oxides .

Search Minerals

Strategic JV Partner Off-take Partner


SMY: TSX-V

Business Strategy – Timeline to Production

2018RESOURCE

✓ Completed 5000m in Phase 1

and Phase 2 drill program

ENVIRONMENTAL/PERMITTING

✓ Commence Environmental

Assessment reports for

Province and CEAA

PROCESSING AND REFINING

✓ Continue pilot plant work with

assisted government program

➢ Secure funding for

demonstration plant build and

operation in St. Lewis

STRATEGIC PARTNERS

✓ Secure funding for Corporate

overheads/environmental work

2019RESOURCE

➢ Resource for Deep Fox

➢ Update PEA for the District

➢ Deep Fox - Phase 3 drill

program


➢ Complete Environmental

Impact Statement


✓ Continue pilot plant work with

assisted government program

➢ Build/operate demonstration

plant in St. Lewis

STRATEGIC PARTNERS

➢ Secure funding for bankable

feasibility studies

2020 2021RESOURCE

Bankable feasibility Study

➢ Infill drilling – Foxtrot

➢ Infill drilling – Deep Fox

➢ Permitting


➢ Continued stakeholder

engagement

➢ Initiate Permitting process


➢ Demonstration plant operating

in St. Lewis

➢ Engineering plans

STRATEGIC PARTNERS

➢ Continued funding for bankable

feasibility studies

RESOURCE

➢ Measured Resources for

Foxtrot and Deep Fox

➢ Development permits approved


➢ Continued stakeholder

engagement

➢ Permits to build


➢ Engineering complete – Ready

to build

STRATEGIC PARTNERS

➢ Secure funding – Decision to

build

Cautionary Note: The Company has not prepared a feasibility study in relaton to this project and therefore, the time line to

production decision is subject to increased risk and uncertainty


SMY: TSX-V

Corporate Summary

As at February 15, 2019

Listing TSX-V: SMY

Head Office Vancouver, British Columbia

Shares Outstanding 182,140,678

Warrants 28,136,809

Options 12,500,000

Fully Diluted 222,777,487

52 wk - Share Price Range $0.03 - $0.09


SMY: TSX-V

Management

Greg Andrews, President, and Chief Executive Officer, Director

B. Commerce, Finance - University of Calgary. Extensive experience in strategic planning,budgeting, implementation and administration.

Dr. Randy Miller, Vice President Exploration

Ph.D. Geology - University of Toronto. REE Specialist; 5 years work on the IOC Strange LakeProperty in Labrador and 12 years as REE specialist with NL Geological Survey Dr. Miller hasbeen in charge of the REE exploration program in Labrador since 2009.

Dr. David Dreisinger, Vice President Metallurgy, Director

Professor and Industrial Research Chair in Hydrometallurgy – University of British Columbia; Over 300 journal and conference publications and 21 issued US patents; internationally respected process consultant with global metallurgy companies; a Director of PolyMet Mining Corp., LeadFX Inc. and Euro Manganese and an officer of Camrova Resources.

Matthew Anderson, Chief Financial OfficerB. Commerce - McGill University; obtained his CA designation in 2008; current CFO of i-Minerals Inc.


SMY: TSX-V

Directors

Greg Andrews, Director, President and CEO – See Management

Dr. David Dreisinger, Director, V.P. Metallurgy - See Management

George Molyviatis, Director

Mr. Molyviatis is a Greek/Swiss National and entrepreneur with an extensive financialbackground. He is founder of InCoR Holdings and has been involved in the mining sector forover 25 years.

Jocelyn Bennett, Director

Ms. Bennett resides in Geneva, Switzerland. She has a strong financial background andextensive accounting and corporate experience. She is a senior partner and director of InCoRHoldings Ms. Bennett owns a fiduciary services company in Geneva, Switzerland

Leo Power, Director

Graduate of the Kellogg-Schulich Joint MBA program at York University, Toronto andNorthwestern University, Evanston, Illinois. Masters in Oil and Gas Studies from MemorialUniversity of NL. Exec. Chairman - Barite Mud Services Inc.; CEO and Director- PtarmiganEnergy Inc.; Director - Canada Fluorspar Inc.; Director: Minfocus Exploration Corp. (MFX.V)Board Member - Institute of Corporate Directors, NL Chapter; Board Member - AtlanticCabinet, Nature Conservancy of Canada; NL Vice-Chair - Atlantic Institute of Market Studies.


SMY: TSX-V

Thank you!

Thank You!

phase...market dynamics china produces 90% and consumes 60% of the world’s rees. global ree market...

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