ONEOFTHEWORLD’SSIGNIFICANTGOLDOXIDE/GOLD-COPPERPROJECTS
TSX:XRCNYSEMKT:XRA
www.exeterresource.com
Caspiche
Cau$onary Note to U.S. Investors – The United States Securi$es and Exchange Commission (“SEC”) permits miningcompanies in theirfilingswith theSEC todiscloseonly thosemineraldeposits thata companycaneconomicallyandlegally extract or produce. We use certain terms in this presenta$on, such as “inferred resource”, that the SECguidelinesstrictlyprohibitusfromincludinginourfilingwiththeSEC.U.S. investorsareurgedtoconsidercloselythedisclosurecontained inourannualreportonForm20.YoucanreviewandobtaincopiesofourfilingsfromtheSEC’swebsiteathNp://www.sec.gov/edgar.shtml.Thisdocumentandtheinforma$oncontainedinitdonotcons$tuteaprospectusanddonotformanypartofanofferof,orinvita$ontoapplyfor,securi$esinanyjurisdic$on.Poten$alinvestorsshouldnotrelysolelyontheinforma$oncontainedhereinpriortomakingany investmentdecision. Investorsshouldseek independentadvicefromaqualifiedfinanceandinvestmentadvisor,givingdueregardtotheirownpersonalcircumstances,priortoforminganyinvestmentdecision.SafeHarbourStatement -Thispresenta$onmaycontaincertain“forward-lookingstatements”within themeaningoftheUnitedStatesPrivateSecuri$esLi$ga$onReformActof1995.Thesestatementsreflectourcurrentbeliefandarebased upon currently available informa$on. Actual results could differ materially from those described in thispresenta$onasaresultofnumerousfactors,someofwhichareoutsideofthecontrolofExeter.Manyoftheassayresultsandtheeconomicanalysispresentedarepreliminaryandmaynotbeaccurateduetovariousfactors,includingbutnotlimitedtosamplerecoveries,truewidthsandinterpreta$ons.WendellZerb,Exeter´sPresident&CEOanda“qualifiedperson”(“QP”)withinthedefini$onofthatterminNa$onalInstrument43-101,StandardsofDisclosureforMineralProjects,hasreviewedandapprovedthetechnicalinforma$oninthispresenta$on.
Cau$onaryStatement
2!
• ATrackRecordofSuccess -Threesignificantmineraldiscoveriesinthelastdecade -SpunoutExtorretoshareholdersona1-to-1basis(2010) - wastakenoverbyforC$414MorC$4.26/share(2012)
• Control100%ofCaspiche -M&IMineralResources1:Oxides1.7MozAuEq,Sulphides37.9MozAuEq -Unique:goldoxide,highergradegold/coppercore,largescalegold/copper -StableMiningJurisdic$on-Chile
• Direc$ngRe-valua$on -LowCapexstartupop$ons2,strongeconomics -Caspichesufficientlyadvancedtofasttrackdevelopment -Fundamentallyandcompara$velyundervalued -Favorable$mingforselectgoldequi$es
• CashofC$16million.NoDebt.
WhyInvestinExeter?
3!
Thefounda$onforsuccess:TrackRecord,UniqueAsset,Cash.
1SeemineralResourcesslidefordetails:OxideM&[email protected]/tAu,1.58g/tAg;SulphideM&I1,[email protected]/tAu,0.20%Cu,1.17g/tAg.2SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.
CapitalStructure
4!
CapitalStructure(asofFebruary1,2017)
CommonSharesOutstanding 88.7M
OpMons 7.3M
FullyDiluted 96.0M
Avg.DailyVolume
NYSEMKT:200kTSX:86k
Cash C$16M
Shareholders
ManagementandInsiders:10%InsMtuMons:35%Retail:55%
AnalystCoverage
TDSecuriMesMr.DanielEarledaniel.earle@tdsecuriMes.com1.416.308.7906
ParadigmCapitalMr.DonMacLeandmaclean@paradigmcap.com1.416.360.3459
ManagementandBoardofDirectors
5!
YaleSimpson Co-Chairman
BryceRoxburgh Co-Chairman
RobertReynolds Director
JulianBavin Director
JohnSimmons Director
President/CEO WendellZerb,P.GeolGeologist/Capital
Markets–30yrs
CFO CecilBond,CPA,CA CA–31yrs
ExploraMon MaehewWilliams–ExploraMonManager,Americas Geologist–25yrs
Development JerryPerkins–VPDevelopment&OperaMons Metallurgist–41yrs
MarkE.Smith–SeniorTechnicalAdvisor Engineer–35yrs
MaehewDorman–CaspicheStudyManager Engineer–30yrs
GonzaloDamond–CommercialManager Engineer–22yrs
Corporate RobGrey–VPCorporateCommunicaMons IR–18yrs
StrongBoardofDirectors ExperiencedManagementTeam
LowGeopoli$calRisk-Chile
6!
Chile:aminingfriendly,poliMcallystable,OECDnaMonTheFraserIns$tute’s2015surveyonoverallrisk(PPI*)placedChile26outof109miningjurisdic$onsand#1inSouthAmerica.(22ndoutof122miningjurisdic$onsin2014)
• World’slargestexporterofcopper.
• Consistentlyrankedasoneofthetopplacestomineintheworld&the#1placetomineinSouthAmerica.
• Clearregula$ons,transparency,well-establishedlegalsystem.
• Skilledlabourforce.
• ManylargeminespermiNed:Escondida,Andacollo,CerroCasale.
*PPIorPolicyPercep]onIndex:measurestheoverallabrac]venessoftheminingjurisdic]onssurveyed.Itincludesuncertain]essurroundingadministra]onofcurrentregula]ons,environmentalregula]ons,legalsystemsandtaxa]onregimes,infrastructure,labourandskillsavailability,andsecurityissues.Source:FraserIns]tute2015&ExeterResourceCorp.
0 10 20 30 40 50 60 70 80 90 100
Ivory Coast California
Northwest Territories Dominican Republic
Uruguay Peru
Nunavut Fiji
Ghana New South Wales
Kazakhstan France
Ethiopia Mexico
Bulgaria Turkey
Burkina Faso Victoria Eritrea
British Columbia Washington
Yukon New Mexico
Montana Colorado
Spain Tasmania
Poland Queensland
Ontario New Zealand
Namibia Minnesota
Serbia Chile
Greenland Morocco
Alaska Quebec
Northern Territory South Australia
Idaho Michigan
Nova Scotia Arizona
Newfl. & Labrad. Botswana Manitoba
Norway Utah
Portugal New Brunswick
Western Australia Alberta Nevada Finland
Saskatchewan Sweden
Wyoming Ireland
Chartincludestop60outof109jurisdic$ons.
Caspiche-StrategicallyLocated
7!
PortandDesalina]onFacili]es
CardonesPowerSubsta]on
-2X500kVexpansionin2018
CandelariaMine
CopiapoAirport
Caspiche
MaricungaMine
CerroCasale
Exeter’sPeñasBlancasgroundwaterdiscovery
min400L/s
AguasChañar-Industrialwater
LundinPuntaPadrones500L/s
CATPuntaTotoralillo400L/sexpandableto600L/s
LaCoipaMine
50KmAllweatheraccessroadExis]ngpowercooridor3rdpartypipelineroutePoten]alwaterpipelineroute CaseronesMine
PaipoteCuSmelter
3rdpartygroundwaterrights
Volcan
MarteLobo
CerroMaricunga
Esperanza
TierraAmarilla
Desalina]onWaterOp]on
Exeter’sAlterna$veWaterOp$on
8!
Exeterhassignedanop$onagreementwithCleanairtechSudamericaSA(“CAT”)tosupply50litrespersecond(L/s)ofdesalinatedwater.CATisjointlyownedbyCAPS.A.andMitsubishiCorpora$on.Exeterwillmakeescala$ngannualop$onpaymentsoverafour-yearperiodtotallingUS$1.25M.
CATDesalina$onPlant
9!
CATcurrentlyoperatesa400L/sdesalina$onplantatPuntaTotoralilloandapipelinetoTierraAmarilla,located120kmfromtheCaspicheproject.Itwillsupplytheop$onedwateratTierraAmarillafromexis$ngcapacity.CATalsohaspermitsandinfrastructureinplacetoexpandsupplyto600L/s.
Material Class Tonnes(Mt) Au(g/t) Cu(%) Ag(g/t) AuEq1(g/t) AuEq2(Moz)
Oxide Measured 65.9 0.46 - 1.55 0.46 1.0
Oxide Indicated 55.6 0.39 - 1.63 0.40 0.7
TotalOxide M&I 121.5 0.43 - 1.58 0.43 1.7
Sulphide Measured 554.2 0.58 0.23 1.16 1.02 18.3
Sulphide Indicated 727.9 0.48 0.18 1.17 0.84 19.6
TotalSulphide M&I 1,282.1 0.52 0.20 1.17 0.92 37.9
TotalM&I 1,403.6 0.51 0.19 1.20 0.88 39.6
MineralResources
10!
*TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized. 1
PAuandPCuaretheAuandCuprices(US$1,150/ozandUS$2.50/lb,respec$vely),andRAuandRCuaretheAuandCuprojectedmetallurgicalrecoveries,65%and85%,respec$velyforsulphidematerialand78%forAuoxidematerial.2 AuEq (M oz) = resource tonnes * AuEq13PAu,PAgandPCuarethegold,silverandcopperprices(1,250US$/oz,15US$/oz.and2.75US$/lb,respec$vely).RAuandRCuaretheAuandCuprojectedmetallurgicalrecoveriesbasedonanumberofS%thresholds.Foraddi$onalinforma$onseeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec$vedateApril30,2014.
Material Class Tonnes(Mt) Au(g/t) Cu(%) Ag(g/t) AuEq3(g/t)Sulphide Measured 378.6 0.71 0.30 1.30 1.28
Sulphide Indicated 431.6 0.64 0.27 1.40 1.16
TotalSulphide M&I 810.2 0.67 0.29 1.35 1.22
Theoxideandsulphidematerialswerereportedabovecut-offsof0.18g/tAuEqand0.30g/tAuEq,respec$vely:
MineralResourcesundergroundopera$oncut-offgradeof0.75g/tAuEq3:
TheApril2012MineralResourceformedthebasisforthe2014PEA
[ ] [ ] [ ] [ ][ ]
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⎟⎠
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⎛•+=
%%
/$/$
/000,10/06857.0%%
/$/$%//
Au
Ag
Au
Ag
Au
Cu
Au
Cu
RR
ozPozP
tgAgozlbgRR
ozPlbPCutgAutgAuEq
[ ] [ ] [ ] [ ][ ]
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[ ][ ][ ]⎟
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/000,10/06857.0%%
/$/$%//
Au
Ag
Au
Ag
Au
Cu
Au
Cu
RR
ozPozP
tgAgozlbgRR
ozPlbPCutgAutgAuEq
Oxidegoldzone
HighergradeAu-Cuzone
LargelowergradeAu-Cuzone
1.25km
200m
DevelopmentOp$ons1forCaspiche
11!
Op$onI-StandaloneHeapLeachOxideGold-M&IResources*1.7MillionozAuEq-10YearMineLife,122,000ozAu/yr-ModestIni$alCapex-LowStripRa$o0.27:1-FavorableLeachKine$cs-Transi$onZoneExpansionPoten$al
Op$onII&III-Gold-CopperSulphides
-Focus:Central/HigherGradeCore-18to42YearMineLifeOp$ons-AnnualAuEqupto350,000oz-LOMAuEqProduc$on4.9to14.1Millionoz-ModesttoLargeScaleMiningOp$onality-ExpansionOp$ons
*RefertotheMineralResourcesslidefordetails.1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.The2014PreliminaryEconomicAssessmentusesadiscountrateof5%andcommoditypricesofUS$1,300/ozAu,US$20/ozAg,andUS$3.00/lbCu.
HigherGradecore510Mtgrading
0.80g/tAu,0.33%Cuhos]ng23.5MozAuEq1
Focusingonhighmarginop$ons,u$lizingcashflowtofinancefutureCAPEX.
Poten$alDevelopmentTimeline
12!
DevelopmentStudyUpdate MajorStudyComple$on/Submission
CaspicheProjectTimeline
Q3 Q4HeapLeachTradeOffWork:PEA/PFS
InfillandExpansionDrillProgram
HeapLeachFeasibilityandTimeline*
EIAPreparation&Submission(forHeapLeach)
EIAApprovalProcess(forHeapLeach)
ProjectFinancing(forHeapLeach)
CondemnationDrillProgram
MetallurgyTransitionandSulphides
DrillProgramHighGradeAu-Cu
EconomicStudiesHighGradeAu-Cu
StakeholderRelations
H1 H22016 2017 2018 2019Q4 Q1 H1 H2Q2
*SubjecttoBODapproval.
OpMon1: OpMon2: OpMon3:
Item Unit 30,000tpdstandaloneoxide
Combined:60,000tpdoxide;27,000tpdSulphide(openpit)commencinginyear6
Combined:60,000tpdoxide;27,000tpdSulphide(underground)
commencinginyear3Minelife years 10 18 42AnnualaverageAuEq*Prod. oz 122,000 289,000 344,000LOMProduc$onAuEq ozM 1.27 4.9 14.2Pre-taxNPV@5% US$M 355 967 1,636IRR % 34.7% 27.2% 20.0%PaybackPeriod years 3.4 6.1 7.7Aler-tax27%NPV@5% US$M 252 656 1,144 IRR % 28.5% 21.1% 16.7%PaybackPeriod years 3.6 6.8 8.1CapexSummaryIniMalCapex US$M 251 371 387LOMSustainingCapex US$M 93 926 1,580TotalCapex US$M 343 1,297 1,967CapitalU$liza$onperAuEq*oz US$ 270 264 139OpexSummaryUnitTotalOpexProcessed US$/t 6.5 9.4 20.1CashCostCashCost-AuEq US$/oz 546 486 649TotalCashCost-AuEq* US$/oz 589 551 709AllinSustainingCashcostAuEq* US$/oz 676 752 828C1CashCost-CuEq* US$/lb n/a 1.31 1.77
Threeop$onsforthedevelopmentofCaspiche
13!
1.The2014PreliminaryEconomicAssessmentusesadiscountrateof5%andcommoditypricesofUS$1300/ozAu,US$20/ozAg,andUS$3.00/lbCu.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.*Goldequivalent(AuEq)valueisbasedongold,silverandcopperrevenues(pricesandrecoveriesinvolved).AuEq[troyoz]=[Aug/t*RecAu*throughputtonnes]/31.1+[Agg/t*RecAg*throughputtonnes]/31.1*silverpricetroyoz/goldpricetroyoz+[[Cu%*RecCu*throughputtonnes]*2204]*copperpricelbs/goldpricetroyoz.RecoveriesareadjustedbasedonmetallurgicalcharacterisUcoftheresource.ForResourceesUmaUonsassumedpricesare$1250/ozAu,$15/ozAgand$2.75/lbforCu.CuEqformulaaccountsforAuandAgozconvertedtolbsCu.
Project LaIndia Amulsar Coffee**Cerro
MaricungaElCasMllo
Eagle&(Olive)
Karma* Caspiche1
Company AgnicoEagle Lydian KaminakAtacamaPacific
Argonaut Victoria TrueGold Exeter
Loca$on Mexico Armenia Yukon Chile Mexico Yukon BurkinaFaso Chile
MarketCap(C$M) $13,981 $255 $500 $27 $385 $307 $267 $109
CashonHand(C$M) $805 $213 $33 $7 $70 $63 $6 $16
EV(C$M) $14,615.69 $181 $467 $20 $327 $245 $261 $93
Reserves/Resources(tonnes&Augrade)
P&P:[email protected]/t
P&P:[email protected]/t
P&P:[email protected]/t
P&P:[email protected]/t
P&P:[email protected]/t
P&P:[email protected]/t
P&P:[email protected]/t
M&I:[email protected]/t
AuEqOunces 0.76Moz 2.4Moz 2.2Moz 3.7Moz 1.2Moz 2.6Moz 0.9Moz 1.7Moz
MineLife(years) 7 10 10 13 11 10 9 10
Throughput(tpd) 16,000 27,000 92,000 80,000 35,000 33,700 11,000 30,000
AuEqProduc$on(oz/yr) 90,000 211,000 1184,00000 228,000 85,000 200,000 92,000 122,000
CAPEX(ini$al)(US$M) $158 $370 $247 $399 n/a $289 $132 $251
GoldPrice(US$/oz) $1,379/oz $1,150/oz $1,150/oz $1,350/oz $1,000/oz $1,250/oz $1,250/oz $1,250/oz
NPV5%(azer-tax)(US$M) $207 $338 $355 $409 $257 $396 $199 $243
IRR(azer-tax) 31% 22% 37% 25% n/a 29.5% 46% 27%
TotalCashCosts(US$/oz) $426/oz $509/oz $481/oz $864/oz $628/oz $638/oz $630/oz $589/oz
StripRa$o 1.00 2.40 5.70 1.76 0.90 0.95 2.43 0.27
CrushSize(inches) 0.98 0.75 2.00 0.75 0.74 0.26 2.00 1.96
GoldRecoveryRate(%) 80% 87% 86% 79% 70% 71% 87% 80%
ComparableOxideGoldHeapLeachProjects
14!
1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.20%taxrateusedasacompara]ve.2SharepricesasofJanuary31,2017;financialsasofQ3,2016orinclusiveofrecentclosedfinancings.*TrueGoldMiningInc.mergerwithEndeavourMiningcompleted.TrueGoldsharesdelistedasofApril27,2016.DataasofApril27,2016.**KaminakGoldCorp.mergerwithGoldCorpcompleted.KaminakGoldsharesdelistedasofJuly21,2016.DataasofJuly21,2016.
FinalOxideMetallurgicalTestwork
15!
• Recently completed metallurgical test work suggests previously es$mated heap leachrecoveriesofapproximately80%,usedinthe2014PEA1,areconserva$ve.
• Confidencelevelsapproachingfinalfeasibilityrequirements.
• Most important,high recoveries in thefirst six yearsof themineplanalso correspondswiththehighestgradesinthemineplan.
• Metallurgicalprojec$onses$mateheapleachcyanideconsump$onsaveragingabout0.4kg/tonne.
• Poten$al:Higherprojectvalue,fasterpayback,greaterconfidence.
1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.Foraddi]onalinforma]onrefertoExeternewsreleaseNovember12,2014.
FeedSize HeadGrade ExtracMon Reagents
Composite P80mm g/tAu g/tAg %Au %Ag kg/tNaCN kg/tLime
MineralizedGravel -38 0.74 7.6 78.4 32.9 1.27 2.6
Years1&2(1test) -50 0.66 1.1 93.9 90.9 1.25 4.8
Years3&4 -50 0.81 1.4 87.7 62.5 1.29 4.8
Years5&6 -50 0.33 0.9 84.6 50.0 1.06 6.0
Years7&8 -50 0.37 0.8 78.4 38.1 0.97 4.7
Years9&10 -50 0.63 0.4 79.2 50.0 0.82 3.2
Othermaterial -50 0.47 2.1 83.0 57.1 0.89 5.0
OpMon1: OpMon2: OpMon3:
Item Unit 30,000tpdstandaloneoxide
Combined:60,000tpdoxide;27,000tpdSulphide(openpit)commencinginyear6
Combined:60,000tpdoxide;27,000tpdSulphide(underground)
commencinginyear3Minelife years 10 18 42AnnualaverageAuEq*Prod. oz 122,000 289,000 344,000LOMProduc$onAuEq ozM 1.27 4.9 14.2Pre-taxNPV@5% US$M 355 967 1,636IRR % 34.7% 27.2% 20.0%PaybackPeriod years 3.4 6.1 7.7Aler-tax27%NPV@5% US$M 252 656 1,144IRR % 28.5% 21.1% 16.7%PaybackPeriod years 3.6 6.8 8.1CapexSummaryIniMalCapex US$M 251 371 387LOMSustainingCapex US$M 93 926 1,580TotalCapex US$M 343 1,297 1,967CapitalU$liza$onperAuEq*oz US$ 270 264 139OpexSummaryUnitTotalOpexProcessed US$/t 6.5 9.4 20.1CashCostCashCost-AuEq US$/oz 546 486 649TotalCashCost-AuEq* US$/oz 589 551 709
AllinSustainingCashcostAuEq* US$/oz 676 752 828
C1CashCost-CuEq* US$/lb n/a 1.31 1.77
Threeop$onsforthedevelopmentofCaspiche
16!
1.The2014PreliminaryEconomicAssessmentusesadiscountrateof5%andcommoditypricesofUS$1300/ozAu,US$20/ozAg,andUS$3.00/lbCu.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.*Goldequivalent(AuEq)valueisbasedongold,silverandcopperrevenues(pricesandrecoveriesinvolved).AuEq[troyoz]=[Aug/t*RecAu*throughputtonnes]/31.1+[Agg/t*RecAg*throughputtonnes]/31.1*silverpricetroyoz/goldpricetroyoz+[[Cu%*RecCu*throughputtonnes]*2204]*copperpricelbs/goldpricetroyoz.RecoveriesareadjustedbasedonmetallurgicalcharacterisUcoftheresource.ForResourceesUmaUonsassumedpricesare$1250/ozAu,$15/ozAgand$2.75/lbforCu.CuEqformulaaccountsforAuandAgozconvertedtolbsCu.
StagedDevelopment-CapitalAdvantage
17!1.Capitalrequirementsfundedfromcashflowwerecalculatedusinga20%taxrate,US$1,300/ozAu,US$3.00/lbCu,andUS$20/ozAg.
StagedDevelopment-CapitalAdvantage
18!1.Capitalrequirementsfundedfromcashflowwerecalculatedusinga20%taxrate,US$1,300/ozAu,US$3.00/lbCu,andUS$20/ozAg.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000 01
/01/
1983
01/0
5/19
84
01/0
9/19
85
01/0
1/19
87
01/0
5/19
88
01/0
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89
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91
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92
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93
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95
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96
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97
01/0
1/19
99
01/0
5/20
00
01/0
9/20
01
29/1
1/20
02
31/0
3/20
04
29/0
7/20
05
30/1
1/20
06
31/0
3/20
08
31/0
7/20
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30/1
1/20
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31/0
3/20
12
31/0
7/20
13
30/1
1/20
14
29/0
1/20
16
31/0
1/20
17
VSE Index CDNX Index TSX-V Index
SmallCapMiningRalliesandCorrec$ons
20!TSX-VIndexValuestoJanuary31,2017.Source:CanaccordGenuityCorp.&ExeterResourceCorp.
VSE Index CDNX Index S&P/TSX Venture Exchange Index
-45%
-75%
-40%
-73%
-34%
-81%
- 79%
+ 65%
+ 21% + 91%
+ 23%
+ 88%
+ 84%
+257% +252%
+73%
HUIGoldIndex
22!
GoldEquityPricesofftheboNombutremainathistoricallymodestlevels
Source:www.bigcharts.com.
US$IndexTrend
23!Source:828cloud.worldpress.com
Trumppoliciesaimedtos]mulategrowthwillbedifficulttoachievewithastrongUS$
ArizonaStarsharepriceperformance
24!Source:ExeterResourceCorpora]on
ArizonaStar(controlled51%ofCerroCasale)sharepricesufferedbadlypostdiscoveryphaseandwiththedownturnofthebullionpriceinthelate1990’sandearly2000’s.Star]ngin2002,withanewrisingtrendinbullionitssharepriceappreciatedfromC$0.50toitstakeovervalueofC$18.00pershare,or$773million.
250
350
450
550
600
TrendingGoldPriceUS$
GoldEquivalentResourcestoMktCap
25!
1SeeMineralResourcesslideandExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.*GoldEquivMoz(AuEq)Resourcetonnes*[Aug/t+{Cu%*Cupricelbs/AuPricetroyoz*0.06857glb/oz*10000}+Agg/t*Agpricetroyoz/Aupricetroyoz].Novagold*50%shareofDonlinandGalore.PricingasofNovember30,2016.
MassivelyUndervaluedGoldResources
UndevelopedGoldandGold-CopperProjects
26!
1SeeMineralResourcesslideandExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.Goldequivalent(AuEq)AuEqg/t=Aug/t+(Cu%*Cupricelbs/AuPricetroyoz*0.06857glb/oz*10000)+Agg/t*Agpricetroyoz/Aupricetroyoz.IncludesP&PReservesandM&ImineralResources.Reflects%interestinprojectofoutlinedcompanies.*Caspichesulphideat0.30g/t,0.75g/tand1.0g/tAuEqcutoff.
Basedonmajority%interest
NovaGold50%
Barrick75%Gabriel80.7%
Goldcorp50%
Reservoir45%
EXETER100%Highestgrade lowestgrade
LeveragetoGold
28!
1SeeMineralResourcesslideandExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.PricingasofNovember30,2016.
• ATrackRecordofSuccess -Threesignificantmineraldiscoveriesinthelastdecade -SpunoutExtorretoshareholdersona1-to-1basis(2010) - wastakenoverbyforC$414MorC$4.26/share(2012)
• Control100%ofCaspiche -M&IMineralResources1:Oxides1.7MozAuEq,Sulphides37.9MozAuEq -Unique:goldoxide,highergradegold/coppercore,largescalegold/copper -StableMiningJurisdic$on-Chile
• Direc$ngRe-valua$on -LowCapexstartupop$ons2,strongeconomics -Caspichesufficientlyadvancedtofasttrackdevelopmentdecisions -Fundamentallyandcompara$velyundervalued -Favorable$mingforselectgoldequi$es
• CashofC$16million.NoDebt.
WhyInvestinExeter?
29!
Thefounda$onforsuccess:TrackRecord,UniqueAsset,Cash.
1SeemineralResourcesslidefordetails:OxideM&[email protected]/tAu,1.58g/tAg;SulphideM&I1,[email protected]/tAu,0.20%Cu,1.17g/tAg.2SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.
31!
EXETERCaspiche:CrossSecMon-GoldValues
BARRICK-KINROSSCerroCasale:CrossSecMon-GoldValues
CaspicheNotJustBig–ScaleableOp$onsCaspichenearsurfacegoldoxide,cohesivehighergradegold-coppercore.
CaspicheLevelPlanGoldValues
32!
1640feet(500m)
985feet(300m)
HigherGradeCore
DioritePorphyry
500m(1640feet)
300m(985feet)
HigherGradeCoreislargeinscale
DioritePorphyry
Aug/t
Aug/t
1Using1g/tAuEqcutoff,SeeMineralResourcesslideandExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.
30,000tpdstandaloneheapleachgoldopera$on
• 122,000ozAuEq*peryear• 10yearminelife
• Pre-taxNPV5%ofUS$355million,IRRof34.7%.
• TotalcashcostsUS$589perozAuEq*
• Ini$alCAPEXUS$210million(plusUS$41millioncon$ngency)
• Peakwaterrequirementis44litrespersecond.
Op$on11:30,000tpdHeapLeachGoldOpera$on
33!
ValueGeneralParameters
PlantfeedEst(Tonnes&Grade)(oxide)1 M&I:[email protected]/tAu&1.62g/tAg
ContainedAuEq 1.6millionounces
Throughput 30,000tpd
MineLife 10yearsStripRa$o(Waste:Ore) 0.27:1GoldRecoveries 80%SilverRecoveries 40%
ProducMonAvg.AnnualAuEqProduc$on 122,000ozAnnualAuEqProduc$on(year1-5)(ounces) 148,000ozLOMAuEqProduc$on 1.27millionoz
CapitalCostsIni$alCapital(incl.Con$ngencyofUS$41M) US$251millionSustainingCapital US$93million
CashCostsTotalCashCosts US$589/ozAllinSustainingCashCost US$676/oz
GoldPriceAssumpMon US$1300/ozValuaMon(aler-tax27%)
NPV(5%) US$252millionIRR 28.5%PaybackPeriod 3.6years
ValuaMon(before-tax)NPV(5%) US$355millionIRR 34.7%PaybackPeriod 3.4years
Nearsurface,lowcapex,lowstrip,withfavorableleachkine]cs
*RefertotheMineralResourcesslidefordetails.1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.2Basecaseassumesa5%discountratewithcommoditypricesofUS$1,300/ozAuandUS$20/ozAg.
TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.
Sensi$vity-Op$on1
34!
GoldVariability
Sensitivity 30k t/d Heap Leach Open Pit
Item Unit Value Item Unit Value
Pre-tax US$1,100/oz Au After-tax (27% Tax Rate) US$1,100/oz Au
NPV @ 5% US$ M 177 NPV @ 5% US$ M 120 IRR % 21.1% IRR % 17.2%
Payback Period years 4.0 Payback Period years 4.0
Pre-tax US$1,300/oz Au After-tax (27% Tax Rate) US$1,300/oz Au
NPV @ 5% Discount rate US$ M 355 NPV @ 5% US$ M 252 IRR % 34.7% IRR % 28.5%
Payback Period years 3.4 Payback Period years 3.6
Pre-tax US$1,500/oz Au After-tax (27% Tax Rate) US$1,500/oz Au
NPV @ 5% US$ M 533 NPV @ 5% US$ M 381 IRR % 47.3% IRR % 38.6%
Payback Period years 2.9 Payback Period years 3.1
30,000tpdstandaloneheapleachopera]on
1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.2Basecaseassumesa5%discountratewithcommoditypricesofUS$1,300/ozAu,US$3.00/lbCu,andUS$20/ozAg.
Basedon2013/14costs• higherinputcosts–fuel,consumables,power,etc• unfavorableChileanPesoexchange• op]mizedMetworknotincluded
Capex,Opex–Op$on1,2014PEA
35!
OP Opex Unit Value Crushing US$/t 0.26 Leaching US$/t 2.35
ADR US$/t 0.17 Reagents Plant US$/t 0.03
G&A US$/t 0.42 Power Supply US$/t 0.02 Water Supply US$/t 0.12
Total US$/t 3.36
OP Mine Opex Unit Unit Cost Loading US$/t 0.44 Hauling US$/t 0.64 Drilling US$/t 0.15 Blasting US$/t 0.32 Ancillary US$/t 0.21 Support US$/t 0.10
Eng. & Adm US$/t 0.19 Pit Dewatering US$/t 0.00
Labour US$/t 0.68 Leasing US$/t 0.40
Total US$/t 3.13
Open Pit Mining - Costs per tonne of material processed
Area Initial Sustaining Total US$ M US$ M US$ M
Mine Direct & Indirect Costs 36 6 42
Pre-stripping 13 0 13 Dispatch 1 0 2
Other Investments 9 4 12 Leasing 13 2 15
Oxide Plant Direct Costs 120 58 178
Crushing 16 0 16 Leaching 29 58 87
ADR 12 0 12 Reagents 1 0 1
Infrastructure 16 0 16 Power supply 3 0 3 Water supply 43 0 43
Plant Indirect Cost 54 11 65
Contingency 41 18 59
Mine 6 1 7 Plant 35 17 52
Total Cost 251 93 344
Some rows and columns may not sum due to rounding
30,000tpdstandaloneheapleachopera]on
1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.2Basecaseassumesa5%discountratewithcommoditypricesofUS$1,300/ozAu,US$3.00/lbCu,andUS$20/ozAg.
Costs per tonne of material processed
60,000tpdopenpitheapleachgold27,000tpdopenpitAuCu(year6)• Average289,000ozAuEq*or125
MCuEqlbperyear• 18yearminelife• LOMProduc$on4.9MozEq*• TotalcashcostofUS$551peroz
AuEq*
• Ini$alCAPEXUS$375million• Sustainingandclosurecostsare
es$matedatUS$924million• Pre-taxNPV5%ofUS$967million
andanIRRof27.2%
• Peakwaterrequirementis185litrespersecond.
Op$on21:HeapLeachGoldtoOpenPitGoldCopperOpera$on
36!
ValueGeneralParameters
PlantfeedEst(Tonnes&Grade)(oxide)1 M&I:[email protected]/tAu&1.54g/tAgPlantfeedEst(Tonnes&Grade)(Sulphide)1 M&I:[email protected]/tAu&0.27%CuLOMOpera$ngCost US$/t14.4“ore”Throughput 60,000tpd(oxide);27,000tpd(sulphide)MineLife 18yearsStripRa$o(Waste:Ore) 1:1GoldRecoveries 80%(oxide);75%(sulphide)CopperRecoveries 89%(sulphide)
ProducMonAvg.AnnualAuEqProduc$on 289,000ozAvg.AnnualCuEqProduc$on 125millionlbsLOMAuEqProduc$on 4.9millionoz
CapitalCostsIni$alCapital(Incl.Con$ngency) US$371millionAddi$onalCAPEX(incl.sustainingandclosure) US$926million
CashCostsTotalCashCosts US$551/ozAllinSustainingCashCost US$752/ozC1CashCost US$1.31/lb
GoldPriceAssumpMon US$1300/ozValuaMon(aler-tax27%)
NPV(5%) US$656millionIRR 21.1%PaybackPeriod 6.8years
ValuaMon(before-tax)NPV(5%) US$967millionIRR 27.2%PaybackPeriod 6.1years
Acceleratedheapleach;extendedAuCusulphideopenpit
*RefertoCompleteMineralResourcesslideintheAppendixfordetails.1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.2Basecaseassumesa5%discountratewithcommoditypricesofUS$1,300/ozAu,US$3.00/lbCu,andUS$20/ozAg.
TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.
60,000tpdopenpitheapleachgold27,000tpdundergroundgoldcopper(year3)
• Average344,000ozAuEq*or147MlbCuEqperyear
• 42yearminelife
• TotalcashcostsUS$709perozAuEq*
• Ini$alCAPEXUS$387million
• SustainingcapitalUS$1.58billion
• Pre-taxNPV5%ofUS$1.64billion,IRRof20.0%
• Peakwaterrequirementis151litrespersecond
• Lowerimpactenvironmentally.
Op$on31:HeapLeachGoldtoUndergroundHGGoldCopper
37!
ValueGeneralParameters
PlantfeedEst(Tonnes&Grade)(oxide)1 M&I:[email protected]/tAu&1.62g/tAgPlantfeedEst(Tonnes&Grade)(Sulphide)1 M&I:[email protected]/tAu&0.35%CuLOMOpera$ngCost US$/t30.1“ore”Throughput 60,000tpd(oxide);27,000tpd(sulphide)MineLife 42yearsStripRa$o(Waste:Ore) 0.27(oxide);n/a(sulphide)GoldRecoveries 80%(oxide);77%(sulphide)CopperRecoveries 90%(sulphide)
ProducMonAvg.AnnualAuEqProduc$on 344,000ozAvg.AnnualCuEqProduc$on 147millionlbsLOMAuEqProduc$on 14.2millionoz
CapitalCostsIni$alCapital(incl.Con$ngency) US$387millionAddi$onalCAPEX(incl.sustainingandclosure) US$1.58billion
CashCostsTotalCashCosts US$709/ozAllinSustainingCashCost US$828/ozC1CashCost US$1.77/lb
GoldPriceAssumpMon US$1300/ozValuaMon(aler-tax27%)
NPV(5%) US$1.144billionIRR 16.7%PaybackPeriod 8.1years
ValuaMon(before-tax)NPV(5%) US$1.636billionIRR 20.0%PaybackPeriod 7.7years
Acceleratedheapleach;transi]oningtoundergroundgoldcoppersulphideopera]on
*SeeMineralResourceslidefordetails.1SeeExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.2Basecaseassumesa5%discountratewithcommoditypricesofUS$1,300/ozAu,US$3.00/lbCu,andUS$20/ozAg.
TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.
Sensi$vity–M&IMineralResources
38!
Gold–Coppersulphidemineraliza]on-highergradezone
1SeeMineralResourcesslideandExeterwebsiteorSedar,AmendedNI43-101TechnicalReportontheCaspicheProject.Effec]vedateApril30,2014.TheeconomicanalysiscontainedinthePEAisconsideredpreliminaryinnature.ThereisnocertaintythateconomicforecastsoutlinedinthePEAwillberealized.
AuEq Cut-off Mt Au (g/t) Ag (g/t) Cu (%) AuEq6 (g/t) Au Moz Cu Mlbs AuEq Moz
0.60 1,063.2 0.60 1.26 0.26 1.09 20.5 6094.3 37.3
0.65 974.8 0.62 1.29 0.27 1.13 19.4 5802.5 35.4
0.70 891.4 0.65 1.32 0.28 1.18 18.6 5502.2 33.8
0.75 813.7 0.67 1.35 0.29 1.22 17.5 5,202.4 31.9
0.80 742.2 0.70 1.37 0.29 1.26 16.7 4745.3 30.1
0.85 675.6 0.72 1.39 0.30 1.31 15.6 4468.3 28.5
0.90 612.7 0.75 1.41 0.31 1.35 14.8 4187.4 26.6
0.95 558.7 0.77 1.43 0.32 1.39 13.8 3941.8 25.0
1.00 510.1 0.80 1.45 0.33 1.43 13.1 3710.8 23.5
1.05 462.2 0.82 1.48 0.34 1.47 12.2 3464.7 21.8
1.10 415.4 0.85 1.50 0.35 1.52 11.4 3205.6 20.3
1.15 375.1 0.87 1.51 0.36 1.56 10.5 2977.1 18.8
1.20 342.2 0.89 1.53 0.37 1.60 9.8 2791.7 17.6
1.25 311.4 0.92 1.56 0.38 1.63 9.2 2608.3 16.3
1.30 281.9 0.94 1.59 0.38 1.67 8.5 2361.3 15.1
1.35 253.8 0.96 1.63 0.39 1.71 7.8 2182.0 14.0
1.40 226.7 0.99 1.66 0.40 1.75 7.2 1998.9 12.8
1.45 198.7 1.02 1.69 0.40 1.79 6.5 1752.3 11.4
1.50 177.1 1.05 1.71 0.41 1.83 6.0 1600.3 10.4
WendellZerb,P.Geol,President&CEO(30yearsexperience)Mr. Zerb has extensive experience in the mining/mineral resource sector. His technical experience includes senior posi$ons in genera$ve mineral explora$on,development,andopenpitandundergroundminingofbaseandpreciousmetals.Inthecapitalmarkets,Mr.ZerbhaspreviouslyservedasDirector,ResearchAnalyst,MetalsandMining(CanaccordGenuityInc.),VicePresidentofResearchandIns$tu$onalSales,andPresidentandCEOofawhollyownedUSsubsidiary(PIFinancial).
CecilBond,CPA,CAChiefFinancialOfficer(31yearsexperience)Mr.Bondhasservedvariousposi$onsinanumberofpublicexplora$oncompanieswithac$vi$esinCanada,SouthAmerica,Africa,EuropeandAustralia.Throughouthiscareer,Mr.Bondhasmanaged$700millionintransac$ons,includingthesaleofExtorreGoldMinesLtd.toYamanaGoldin2012azersuccessfullyspinningitoutofExeterin2010.
JerryPerkins,VPDevelopmentandOpera$ons(41yearsexperience)Mr.Perkinsisachemicalengineerwithover40years’experienceintheminingandmetallurgysectorintechnical,opera$onalandcorporatemanagementposi$onsinNSW,Queensland,Tasmania,Australia,Africa,theUK,andPapuaNewGuinea.Mr.Perkinsspecializesinmineralprojectdevelopmentprogramsandfeasibilitystudies,mineproduc$onandcommissioning,testwork/R&Dprograms,engineeringandprocessdesign,opera$onsmanagement,andprojectdevelopmentandop$miza$on.
MarkE.Smith,M.Sc.,P.E.,P.Eng.,SeniorTechnicalAdvisor(35yearsexperience)Mr.Smithhasbeeninvolvedinthedesign,construc$on,opera$onsandclosureofheapleachandtailingsmanagementfacili$esfor35years.MostrecentlyMarkwassenior reviewer and heap leach design coordinator on theDefini$ve Feasibility Study for KaminakGold’s (nowGoldcorp’s) CoffeeGold Project, Yukon.Mark hasextensiveexperienceintheMaricungaregionofChile,throughhisinvolvementonRefugio(nowtheMaricungamine),MarteLoboandCerroCasale.RobGrey,VPCorporateCommunica$ons(18yearsexperience)Mr.Grey isaBusinessgraduatewith10yearsexperience inequitysalesand18yearsexperience in InvestorRela$ons inthe juniorminingsector.Mr.Greyworksdirectlywithseniormanagementandinvestors,attheins$tu$onalandretaillevels.
MaNhewWilliams,BAScinAppliedGeology,Explora$onManager-South&NorthAmerica(25yearsexperience)Mr.Williamshasmorethan25yearsofexperienceinmineralexplora$on,specializingingeologicalappraisalofbaseandgoldmetalminingprojectsinAustralia,theDominicanRepublic,W.A.,Australia,Mexico,Nevada,USA,Panama,Argen$na,andChile.Mr.WilliamsservedasExplora$onManageroftheDonSixtoProject,CerroMoro,andearlyac$vi$esatCaspiche.
GonzaloDamond,CommercialManager(22yearsexperience)Mr.Damond is an Industrial/Electrical/Civil Engineerwithopera$onal andmanagerial experiencewithin significantmul$na$onal companies, including rail logis$csbetweenArgen$naandBrazil,andintermodalopera$onsforChileanports.Hehasmanagedthedesign,organiza$onandcommissioningoflargedistribu$oncenters,andhassubstan$alexperienceinpurchasemanagement,includingthenego$a$onofsupplycontracts.Throughtheseexperiences,Mr.Damondhasbuiltconstruc$verela$onshipswithcommuni$es,clients,tradeunionsandGovernmentauthori$es.
MaNhewDorman,CaspicheStudyManager(30yearsexperience)Mr.Dormanisaprojectmanagerwith30yearsofinterna$onalexperienceintheminingsector,specializingintechnicalduediligencestudies.Mr.Dormanhasalsomanagedthedesignandconstruc$onofgoldminesinUzbekistan,Tajikistan,SaudiArabia,UruguayandHonduras,andofcopperprojectsinChile,Peru,andKazakhstan.
Management-Drivingfuturesuccesswithexperience
39!
BryceRoxburgh,AusIMMCo-Chairman(42yearsexperience)Managedtheexplora$onteamsthatdiscoveredtheSelwyn,RedDomeandJunc$onReefore-bodiesinAustralia,theDinkidiore-bodyinthePhilippines,andtheDonSixtodepositinArgen$na.HeestablishedExeterin2003andsubsequentlydiscoveredCaspicheinChileandCerroMoro(ExtorreGoldMinesLtd.)inArgen$na.
YaleSimpson,Co-Chairman(42yearsexperience)Anexperienced,seniorgeologist,explora$onmanagerandCEOofcompaniesinvolvedinpreciousmetalsprojectsinAustralia,Africa,EasternEuropeandSouthAmericawithpar$cularexper$seinstrategicresourceplanning,financingandcorporatecommunica$ons.
RobertG.Reynolds,(33yearsexperience)Servedinvariousposi$onsresponsibleforcorporateplanning,financeandadministra$on.Mr.Reynoldspar$cipatedinthedevelopmentoftheGrannySmithandKanownaBelleminesinAustralia,andtheHartleyPla$numMineinZimbabwe.Mr.ReynoldsalsoservedasChairmanofAvocaResourcesLtd.un$litsmergerwithAnatoliaMineralsDevelopmentLtd.in2011.
JulianBavin,BSc,MSc(33yearsexperience)Gainedtechnical,opera$onandcommercialexperienceinmineralexplora$oninSouthAmerica,Australia,Indonesia,andEuropethroughhisexperiencewiththeRioTintoGroup.From2001to2009,Mr.Baviniden$fiedthepoten$alinarangeofprojectsincludingthePRCpotashandAltarcopper/goldprojectsinArgen$na,theMinaJusta,ConstanciaandLaGranjacopperprojectsinPeru,andtheAmargosabauxiteprojectinBrazil.
JohnSimmons,CA(43yearsexperience)Con$nuestomanageanaccoun$ngprac$ceinAustralia,whereMr.Simmonshasextensiveexperienceadvisingontaxa$on,strategicplanning,financialmanagementandgeneralbusiness.Hemaintainsanac$veinvolvementintheminingindustrythoughassocia$onwithanopera$ngminingcompany.
BoardofDirectors-Astrongfounda]on
40!
“Developmentop]onsatCaspiche,whethermodestorlargerscale,deliverstrongeconomicreturnsatcurrentmetalprices.Ourabilityintoday’smarkettofocusonadvancingthe1.7millionouncegoldoxideopenpitissensibleandachievable.Importantlyforshareholders,
withfutureelevatedgoldandcoppermarkets,webelievethevalueoftheverylargeCaspichegold-copperinventorywillbeastrongvaluedriverforExeter.Caspicheisunique,represen]ngoneofonlyafewscalabledevelopmentprojectsthatisnotyetcontrolledbya
majorcompany.”Co-ChairmanofExeter,YaleSimpson.
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