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CAUTIONARY NOTE
This document and the information contained herein does not constitute a prospectus
and does not form any part of an offer to sell or the solicitation of an offer to buy
securities in any jurisdiction. Potential investors should not rely solely on the
information contained herein prior to making any investment decision. Investors should
seek independent advice from a qualified finance and investment advisor, giving due
regard to their own personal circumstances, prior to forming any investment decision.
FORWARD LOOKING STATEMENTS:
This document includes certain “forward looking statements.” All statements, other
than statements of historical fact, are forward looking statements that involve various
risks and uncertainties. There can be no assurances that such statements will prove
accurate and actual results and future events could differ materially from those
anticipated in such statements. Such information contained herein represents
management’s best judgment as of the date hereof based on information currently
available. The Company expressly disclaims any intention or obligation to update or
revise any forward looking statements whether as a result of new information, future
events or otherwise.
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EXECUTIVE SUMMARY
Contiguous concession area of 54,985 Hectare in the center of the
largest mineral discoveries in Ecuador for 25 years
NI 43-101 compliant technical report completed in 2011 is in the
process of being updated by Apex Geosciences
Significant exploration work to date:
multiple large gold mineralization systems
significant anomalies
multiple large caldera-like structures as big as 7km in
diameter
hydrothermal alterations, breccias, stockworks and porphyries
most probable source of large alluvial gold deposits
previously developed to the south
42 exploration targets identified
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FORTUNA CONCESSIONS
AN INCREDIBLE GOLD OPPORTUNITY
It’s all about the project...
Large contiguous land package in the heart of Ecuador’s prolific gold
mineralization belt
Surrounded by numerous multi-million ounce gold deposits such as
Fruta Del Norte (Aurelian / Kinross / Fortress Mineral [Lundin]), Gaby
(IMC), Mirador (Corriente Resources), Rio Blanco (IMC / Junefield
Mining, a Hong Kong based group) and Quimsacocha (IAMGOLD / INV
Metals)
Favourable geological setting with multiple mineralization styles
identified on the project property
Highly anomalous gold signatures over an extensive area that suggest
the presence of an “enormous gold mineralizing system”
Multiple near surface, high grade, bulk tonnage targets identified.
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PROJECT LOCATION
100% controlled 573 sq km
contiguous concession area in the
heart of Ecuador’s mineralized belt
50km south of Cuenca – capital of
Azuay province and regional
mining/exploration hub
Good access via Pan American
highway, secondary all-weather
roads and network of gravel roads
Transmission line within 10km
Ready availability of skilled and
unskilled labour
Abundant water available to support
exploration activities
Year-round operating season
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EXCELLENT AREA CODE FOR
GOLD MINERALIZATION
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* CRCC-Tongguan Investment Co. Ltd, a Chinese JV company
purchased Corriente Resources in May 2010 for C$660m.
**INV Metals Inc. completed its purchase of Quimsacocha from
IAMGOLD in shares for the equiv. of US$30m in November 2012.
***A private HK company completed the purchase of Rio Blanco
from International Minerals in June 2013 for US$28m
****Fortress Minerals Corp a Lundin company purchased Fruta del
Norte from Kinross Gold for US$240m in November 2014.
.
Company Project Grade
Kinross FDN
Au 11,030,000 O z 6.6g/t
Ag 17,797,000 O z 10.7g/t
IMC Gaby
Au 9,762,000 O z 0.6g/t
Corriente Mirador
Au 8,197,000 O z 0.2g/t
Ag 61,034,000 O z 1.4g/t
Cu 18,686,381,000 Lb 0.55%
Corriente Panantza
Cu 14,541,691,000 Lb 0.62%IAMGOLD Quimsacocha
INV ** Au 3,517,000 O z 3.2g/t
Ag 25,055,000 O z 22.3g/t
Cu 154,544,000 Lb 0.20%
IMC Rio Blanco
Au 635,000 O z 8.7g/t
Ag 4,488,000 O z 61.5g/t
Resource
***
MASSIVE CLAIM-GROUP (572.87 SQ KM)
WITH FAVOURABLE GEOLOGY
Fortuna 1-12 concessions form
contiguous claim-group
Multiple mineralization styles:
High-sulfidation epithermal veins
Low-sulfidation epithermal veins
Porphyry-style stockwork
Placer and paleo-placer
Skarn replacements
Breccia pipes
Highly anomalous gold values
identified in:
Soil samples
Rock samples
Stream-sediment samples
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FIELD EXAMPLES OF
MINERALIZED STRUCTURES
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Quartz feldspar porphyry with quartz stockwork
Mineralized breccia
Multiple caldera-like structures
TARGET AREAS IDENTIFIED FROM THE
INTERPRETATION OF LANDSAT
ETM+ IMAGERY
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42 target areas have been identified in the Fortuna
Concessions on the basis of the interpretation and
Landsat alteration processing.
The exploration target criteria include the presence of
major faults, major fault intersections, converging and
branching faults, releasing bends, splays along major
faults, domal / circular and linear resistant features and
alteration anomalies.
Fortuna 1 and 3 appear particularly prospective as they
contain clusters of domal / circular features within a
zone of NNE-SSW trending major faults which is parallel
to the principal mineralized trend in the district.
A number of small domal / circular features are located
along, or close to NNE-SSW trending major faults or on
their intersections with NW/WNW trending faults
suggesting that these structures may have had an
important control on the emplacement of small
intrusions within the Fortuna Concessions.
.
A structural interpretation was undertaken at up to
1:25,000 scale for a Landsat ETM+ extract centered on the
Fortuna Concessions with the aim of defining the structural
framework of the district and the generation of exploration
targets.
Culebrillas y El Buitre (CEB) – massive copper gold porphyry system fully exposed without overburden, typical
vertical epithermal mineralization common to the Andes, which is 6km long, 1km wide and 1.4km exposed above
the surface of the caldera (and it does not simply end at the surface of the caldera).
Significant anomalies: background is 2 ppb; anomalies are 20 ppb to 400 ppb (the EL Mozo discovery located just
outside (10km) from the South East of the Andi 4 concession was made on anomalies of 100 ppb).
Hydrothermal breccia outcrop on S. part and breccia on N. wall of Callebrittas typical of porphyry structure.
Isolated veins examined by Makrominas SA, prior holder of the concessions contained 44 g/t gold & 9.7 g/t silver.
Stream sediment sample taken from the middle of Fortuna 6 contained 1.898 g/t gold.
Silver values around Laguna Tulipas of 2.6 g/ton.
Copper values on Callabrittas porphyry structure of Fortuna 3 of 45 to 175 g/ton.
Molybdenum values around Laguna Tulipas of 13 to 107 g/ton.
Fine gold found in eight pan concentrate samples in streams in S-SW corner of Fortuna 3 concession.
Buitre Porphyry
Culebrillas Porphyry
TOP DRILLING TARGET
CULEBRILLAS & EL BUITRE AREA
11Fortuna 3 - Culebrillas y El Buitre porphyry
GEOLOGIC MACRO SCHEMATIC
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Geologic schematics of the structures relating to the porphyry on Cullebrillas Hill
EXTENSIVE GOLD
MINERALIZATION INDICATORS
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View of caldera on Fortuna 3
Topographic Map of caldera on Fortuna 3
FIELD WORK IN THE CALDERA
ON FORTUNA 3
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Helicopter borne reconnaissance
at Laguna Tulipas
At edge of caldera on Fortuna 3
overlooking Laguna Tulipas, with the
Cellebrillas porphyry in foreground &
Buitre porphyry in background
Horse mounted approach to
Laguna Tulipas in Fortuna 3
through the Paramo grasslands
Massive Buitre copper
gold porphyry up close
Temporary Field camp at
Cullebrillas above Laguna
Tulipas
Horse mounted field work on the
Cashitaco ridge on the rim of
the caldera on Fortuna 3
Field exploration team on the Buitre
ridge, being of glacial origin with
hydrothermal mineralization
associated with the porphyry
Field team & geologists hiking
and taking samples from the
breccia body at Loma Cashitaco
in the caldera on Fortuna 3
FIELD WORK IN THE CALDERA
ON FORTUNA 3
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The North side of the Cullebrillas
hill bearing the massive copper
gold porphyry
Geologist taking samples of the
mineralized breccia
Outcrop of mineralized breccia
structures on the Cashitaco
ridge on the rim of the caldera
on Fortuna 3
Close up of the mineralized
breccia from the outcrops
Close up of the breccia on the
North side of Callebrillas with
phyllic altered quartz feldspar
porphyry outcrops bearing
quartz stockwork
Monterra field exploration
geologists taking samples from
the streams around Laguna
Tulipas in the caldera on
Fortuna 3
Samples taken from the field
prepared for shipment to the
assay labs
Artesenal workers digging for
gold nuggets in the tributaries
on Fortuna 6
FIELD WORK ON FORTUNA 4 & 5
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Small excavator mining and
stockpiling the feed for the Z
Model washing plant with Fortuna
4 in the background
Camp of artisanal miners on the
eastern side of the Shinkata river
on the edge of Fortuna 5
The Fortuna 4 Concession Hut of artisanal miners with
artisanal miner in foreground
on Fortuna 4
Monterra’s former Exploration
Manager Byron Granda with
artisanal miners with washing
plant in the background
Washing plant placed by
artisanal miners at tributary of
the Shinkata river
Black sand and gold panned by
artisanal miners at the Shinkata
river
Gold nuggets extracted by
artisanal miners from the
Shinkata river
BOARD OF DIRECTORS
Mark Tory, CA, MBA – Director, President & CEOAustralian citizen. An accounting and finance professional with over 20 years of experience in the mining industry. Former
Managing Director and CFO of Crescent Gold. VP Finance at Anglo American Exploration & Controller of Homestake Gold of
Australia. Currently CFO of Northern Minerals. Graduated Bachelor of Business with major in accounting & minor in information
systems from Edith Cowan University and subsequently with an MBA with a major in accounting also from the University of WA.
Boris Goldstein – Director, Seed Investor, Founder & Seed InvestorU.S. citizen. One of the founders of Software House High Tech, which has over 40 offices in 17 countries, was Chairman of E-
Trade Eurasia, CEO of Trans Global Ventures and CEO of Nefco Petroleum. Dr. Goldstein is currently manager of Pacific
Venture Fund, Co-Chairman CBSF Capital Management, and CBSF International Fund. Graduated with a BA, MBA and PhD
from the Latvian Technical University.
Jeff Moore - DirectorAustralian Citizen. Former Managing Director of Savanna Mineral Resources NL, Abra Mining Ltd., Allied Gold Ltd and New
World Alloys. Former Exploration Director of Mount Burgess Mining NL, Terrace Gold NL a subsidiary of AKD Ltd. and Capricorn
Resources Australia NL. Member of Australian Institute of Mining and Metallurgy and Geological Society of Australia. Currently
Managing Director of Riedel Resources Ltd. Graduated Bachelor of Applied Sciences with a major in geology with distinction
from Western Australian Institute of Technology (Curtin University).
Nicolas Febres–Cordero Gallardo – Director, Founder & Seed InvestorEcuadorian citizen. Over 25 years of executive business experience in Ecuador. Currently CEO of Ecuasal, S.A., the largest salt
producer & distributer in the Ecuador. Also CEO of Papercorp S.A., that owns a producing gold mine in Ecuador. Nico is from an
established Ecuadorian business family Graduated B.A. Franklin Marshall University, Pennsylvania, USA, 1986 and
subsequently graduated MBA equivalent from Institute of Entrepreneurial Development (IDE), Ecuador 1996.
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A STRONG BOARD OF DIRECTORS
The Fortuna project has the potential to be South America’s next
large gold and copper discovery
Geological interpretations and historical sampling suggest the
presence of a massive plumbing system underneath the project
concessions
Anomalous gold signatures have been identified over an enormous
area throughout the land package
Monterra is on a clear path towards public listing on an extablished
stock exchange in the medium term
An experienced management team and a resourceful board of
directors is at the helm
Seeking potential major gold companies as potential partners in the
project
A premier gold exploration play in South America that presents
investors with an opportunity to realize very significant gains in the
short, intermediate and long term
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IN SUMMARY…
Concessions
Fortuna 1
Fortuna 2
Fortuna 3
Fortuna 4
Fortuna 5
Fortuna 6
CURRENT CORPORATE STRUCTURE
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Monterra S.A.Incorporated in Panama
Terrasources
Minerals S.A.Incorporated in Ecuador
Goldmindex
S.A.Incorporated in Ecuador
(Current Title Holder)
Nabonminas
S.A.Incorporated in Ecuador
Concessions
Fortuna 7
Fortuna 8
Fortuna 9
Fortuna 10
Fortuna 11
Fortuna 12
100%
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Concession Name
Number Code
Hectares ProvinceRecordDate
Concessionary
FORTUNA 1 4,980MoronoSantiago
GoldmindexS.A.
FORTUNA 2 4,000MoronoSantiago
GoldmindexS.A.
FORTUNA 3 4,799Zamora
ChinchipeGoldmindex
S.A.
FORTUNA 4 4,950Zamora
ChinchipeGoldmindex
S.A.
FORTUNA 5 4,875Zamora
ChinchipeGoldmindex
S.A.
FORTUNA 6 4,950Zamora
ChinchipaGoldmindex
S.A.
FORTUNA 7 4,500Zamora
ChinchipaGoldmindex
S.A.
FORTUNA 8 4,250 AzuayGoldmindex
S.A.
FORTUNA 9 4,983 AzuayGoldmindex
S.A.
FORTUNA 10 4,502 AzuayGoldmindex
S.A.
FORTUNA 11 4,049Zamora
ChinchipeGoldmindex
S.A.
FORTUNA 12 4,147Zamora
ChinchipeGoldmindex
S.A.
TOTAL 54,985
CONCESSIONS LIST
WHY ECUADOR?
GOLD ABUNDANCE
Geologically part of the South American Cordillera, one of the great gold-provinces of the world.
Rich natural resources with the best endowed country in the Cordillera on gold per unit area
basis.
Less than 5% of the country explored.*
Strong history of mining dating back to pre-Incas era.
Country
Total Gold in
Resource /
Reserve (M Oz)
Total Size
(X1000 Sq
Km) Endowment (M Oz Au Per 1000 Sq Km) Rank
Ecuador 59.3 256 0.23 1
Chile 143.0 750 0.19 2
Peru 87.3 1128 0.08 3
Colombia 79.3 1141 0.07 4
Source: www.intierra.com of reported mineral resources August 2008.
*Source: Ministry of Non-Renewable Natural Resources, presentation PDAC March, 2012.
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Why Mining Investment in Ecuador
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The following slides are from a presentation by the Minister of Mines at the
IMARC conference in 2016.
These demonstrate clearly the opening up of Ecuador particularly for
mining and exploration companies.
In a tough year for the mining world, Ecuador’s
mining sector has continued to build momentum
New mining
concessions
available
Opportunities
to invest
Fiscal
regime
improving
Valuable
Operational
Advantages
Gov’t
capacity
building
Projects
advancing
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3
Source: Minister of Mines
presentation IMARC 2016
The government is increasing its capabilities
to support the growing sector’s needs
Government capacity
2017
2014
Financial terms agreed for FdN
Mirador started construction
Ministry of Mining formed
Lundin purchased FdN
Codelco signed agreement for Llurimagua
Rio Blanco started construction
Loma Larga pre-feasibility study updated at larger scale
FdN starts construction
Additional fiscal incentives passed(Public-Private Partnerships)
Terms clarified for existing taxes
New geoportal created
First set of fiscal incentives passed
Launch of new concession request process
GOVERNMENT CAPACITY
TODAY
Granting of new concessions
Phase change FdN
Source: Minister of Mines
presentation IMARC 2016
Our laws and government programs provide strong
support in building community support for mining
60%
50%
of royalties
required by law to go to social
investment projects and regional
development
of social
investment projects aimed at indigenous
groups or territorial constituencies, when
appropriate
$837 millionZamora : $96 million, Azuay: $30 million
Morona Santiago: $15 million y El Oro: $41
million.
Water & sewageHealth
Education
Millenium Community
Culture & sports
Safety
Electricity & telecom
Highways & tourism
Improving communities affected by strategic industries
GOVERNMENT CAPACITY
Source: Minister of Mines
presentation IMARC 2016
VAT refunds starting in 2018• VAT will be refundable for mineral exportations
• Increases IRR of projects up to 1.5%
Foreign investment in small mining• New opportunities for investors interested in Ecuador
• Some small miners have potential to operate at larger
scale on currently owned and/or new concessions
Limited applicability of capital gains tax• Previously, all share transaction were taxed with no limit
on share value
• With the new change, only share transactions for more
than 20% of the company value will be taxed
Additional fiscal and legal reforms were approved in
2015 to further enhance investment conditions
Fiscal stability contracts
Accelerated depreciation,
investor choice of 5 - 10 years
Use of NPV for Sovereign
Adjustment formula, to include
companies’ cost of capital
Currency exportation tax (ISD)
exemption for mining sector
Standardized extraordinary
gains tax
2014 incentives Incentives approved in Q4 2015
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8
1
2
3
4
5
FISCAL REGIME
Source: Minister of Mines
presentation IMARC 2016
The advantages of mining in Ecuador remain strong
Infrastructure
~10,000 km of improved highways
5 main ports
15 airports (5 new, 10 remodeled)
Energy and Water
90% clean energy– 9 hydroelectric projects
– Over 8,300 MW of installed capacity by
end of year
Abundant access to water
Work Force
Regionally competitive work force
MOUs signed for partnerships in
human resource development with
governments of Australia, Peru, and
Chile
Mineral grades
Several of the highest-grade projects
in the region, both for gold and copper
< 10% of territory explored
OPERATIONAL ADVANTAGES
Source: Minister of Mines
presentation IMARC 2016
Ecuador manifests its commitment to become the
new mining frontier of Latin America by…
AdvantagesOpportunity
Source: Minister of Mines
presentation IMARC 2016
Contact:
MARK TORYChief Executive Officer
Monterra S.A.
+ 61 488 188 638 Mobile
PETER NESVEDA
International Investor Relations
Monterra S.A.
+ 61 412 357 375 Mobile
SANTIAGO YEPEZ
Country Manager
Monterra S.A.
+ 593 9958 87204 Mobile
Orellana E11-75 y
Av. Coruña Edificio Albra
Oficina 505
Quito, Ecuador