RNC Minerals Files Dumont Nickel-Cobalt Project Updated Feasibility Study

Press Release

TORONTO, July 11, 2019– RNC Minerals (“RNC”) (TSX: RNX) in its capacity as Manager of the Dumont Joint Venture (the “Joint Venture”) with Arpent Inc., a subsidiary of Waterton Precious Metals Fund II Cayman, LP and Waterton Mining Parallel Fund Offshore Master, LP (“Waterton”), is pleased to announce that the full  Dumont Nickel-Cobalt Project (“Dumont”) NI 43-101 compliant technical report  (“feasibility study”) has been filed under RNC’s profile on SEDAR at www.sedar.com and on RNC’s website at www.rncminerals.com.

“With the filing of the positive feasibility study, RNC, with our partner Waterton, are well positioned to accelerate discussions with potential partners to advance the Dumont project towards construction.” said Mark Selby, President and CEO of RNC. “Once in production, Dumont will be one of the largest base metal mines in Canada, one of the top five sulphide nickel producers globally, and one of the only large scale fully permitted nickel-cobalt projects that can begin to satisfy the significant growth in nickel and cobalt demand driven by the electric vehicle sector.”

The previously announced highlights from the feasibility study are listed below.

Dumont 2019 Feasibility Study Highlights¹

• Large scale, low cost, long-life project
  • Initial nickel production in concentrate of 33ktpa ramping up to 50ktpa in Phase II expansion – production of approximately 1.2 million tonnes (2.6 billion pounds) of nickel in concentrate, over a 30-year life with an initial capital expenditure of $1.0 billion.
  • Phase I C1 cash costs² of $2.98/lb ($6,570/t). Life-of-mine C1 cash costs² of $3.22/lb ($7,100/t Ni) and AISC of $3.80/lb ($8,380/t) of payable nickel (low 2^nd quartile of cash cost curve)
• Significant earnings and free cash flow generation support strong project economics
  • $920 M after-tax NPV_8% and 15.4% after-tax internal rate of return (“IRR”)
  • Estimated annual EBITDA ramping up from $303 million in Phase I to $425 million in Phase II and averaging of $340 million over the life of project. Free cash flow averages $ 201 million annually over the 30-year project life
• Top tier mining asset in excellent jurisdiction³
  • 2^nd largest nickel reserve in the world of 2.8 million tonnes (6.1 billion lbs) contained nickel and 9^th largest cobalt reserve with 110 thousand tonnes (243 million lbs) contained cobalt
  • Once in production, a top 5 nickel sulphide operation globally, a top 3 Canadian base metal asset, and one of largest battery metal development projects globally
  • Fully permitted, construction ready project located in Abitibi region in Quebec – one of world’s leading mining jurisdictions
  • Impacts and Benefits Agreement successfully negotiated with local First Nation

The Study has also Identified opportunities to significantly increase the return of the project:

• Implementation of autonomous truck fleet
• Larger-scale initial project phase of 75ktpd
• Sale of magnetite by-product

Mineral Reserves

Mineral Reserve Statement, Dumont Nickel Project, Quebec, Penswick, May 30, 2019¹

NI 43-101 Compliance

Unless otherwise indicated, RNC has prepared the technical information contained in this news release (“Technical Information”) based on information contained in the feasibility study dated July 11, 2019 relating to the Dumont Nickel-Cobalt Project, available under RNC’s company profile on SEDAR at www.sedar.com. The feasibility study was prepared by or under the supervision of a qualified person (a “Qualified Person”) as defined in NI 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. Readers are encouraged to review the full text of the feasibility study which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The feasibility study is intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the feasibility study.

The Technical Information has been prepared under the supervision of Alger St-Jean, P. Geo., Vice President Exploration of RNC and Johnna Muinonen, Vice President Nickel of RNC, both Qualified Persons under NI 43-101.

About RNC Minerals

RNC has a 100% interest in the producing Beta Hunt gold mine located in Western Australia where a significant high-grade gold discovery – “Father’s Day Vein” – was made. Beta Hunt gold resource potential is underpinned by multiple gold shears with gold intersections across a 4 km strike length which remain open in multiple directions adjacent to an existing 5 km ramp network. RNC has a 100% interest in the Higginsville Gold Operation in Western Australia, which is comprised of a low cost 1.3 Mtpa gold mill and a substantial portfolio of gold tenements. In addition, RNC owns a 28% interest in a nickel joint venture that owns the Dumont Nickel-Cobalt Project located in the Abitibi region of Quebec which contains the second largest nickel reserve and ninth largest cobalt reserve in the world. RNC also owns a 24% interest in Orford Mining Corporation, a mineral explorer focused on highly prospective and underexplored areas of Northern Quebec. RNC has a strong management team and Board with over 100 years of mining experience. RNC’s common shares trade on the TSX under the symbol RNX. RNC shares also trade on the OTCQX market under the symbol RNKLF.

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