$NORZF : NorZinc — Independent Economic Analysis

Long-Term Price Case$24/oz. Ag, $1.10/lb. Zn, $1.00/lb. Pb
ProjectPrairie Creek
Mineral Reserves159,766,517 AgEq ozs.
Shares Outstanding372,540,000
Market Cap$23,470,010
Average Annual Production10,064,587 AgEq ozs.
Recovery87% Ag, 88% Pb, 83%, Zn
LoM15 Years
Payable Product150,968,809 AgEq ozs.
True All-in Cost (TAIC) $18.59/oz.
Gross Revenue$3,623,251,416
Smelter Deductions($350,261,000)
TCRC + Penalties($333,905,200)
Gross Income$2,939,085,216
Total Operating Cost($1,386,771,250)
Operating Profit$1,552,313,966
Income Taxes($411,363,201)
Royalties($18,627,768)
Total Capital Costs ($305,436,850)
Net Income$816,886,147
Net Profit Margin23%
Absolute Cost Structure (ACS)77%
MTQ Score0.3
True Value$2.19/sh.
True Value Discount (TVD)97%
Cash Flow Multiple5x
Annual Cash Flow$54,449,416
Future Market Cap$272,247,080
Future Market Cap Growth1,060%
Target$0.73/sh.

Notes: All Values in U.S. Dollars

NorZinc Newfoundland NI-43-101 Compliant Indicated Resources

DEPOSITZinc (lbs.)Lead (lbs.)Copper (lbs.)Silver (ozs.)Gold (ozs.)Zinc Equivalent (lbs.)
LEMARCHANT328,113,98585,363,98836,279,27036,279,27086,112697,621,844
BOOMERANG212,695,86190,252,84115,342,9834,386,05466,069499,031,249
LONG LAKE70,167,40614,177,0468,703,630581,6716,766124,637,849
TOTAL610,977,252189,793,87560,325,88341,246,995158,9471,321,290,942

Like substantially de-risked Prairie Creek, NorZinc’s 1.3B lbs. of ZnEq in Newfoundland is not currently reflected in the company’s market cap, further deepening the special value proposition open to patient, risk-tolerant speculators.