Announcement PDF Advancing El Zorro Chile’s Newest Gold Project Investor Presentation August 2021 Disclaimer This presentation and any accompanying verbal presentation (together the Presentation) are confidential and have been prepared by Tesoro Resources Limited (Tesoro or the Company) and approved by the Board of the Company. The information contained in the Presentation (Information) is summary only and should be read in conjunction with any other documents provided to you by the Company. The Information is current as at 30 August 2021 and the Company does not undertake to provide any additional or update information, whether as a result of new information, future events or results or otherwise. By receiving the Presentation, you acknowledge and represent to the Company that you have read, understood and accepted the terms of this disclaimer. The Company has prepared the Presentation based on information available to it at the time of preparation. 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Past performance is not necessarily a guide to future performance and recipients of this Presentation are cautioned not to place undue reliance on such forward-looking statements. The information contained in this Presentation is for information purposes only, does not constitute investment or financial product advice (nor taxation, accounting or legal advice) and is not intended to be used as the basis for making an investment decision. In providing this Presentation, Tesoro has not considered the objectives, financial position or needs of any particular recipients. Before making an investment decision prospective investors should consider the appropriateness of the information in this Presentation having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances. This Presentation is not a prospectus, product disclosure statement or other offer document under Australian law or any other law (and will not be lodged with the Australian Securities and Investments Commission or any other foreign regulator) and is not, and does not constitute, an invitation or offer of securities for subscription, purchase or sale in any jurisdiction. In particular, this Presentation does not constitute an invitation or offer of securities for subscription, purchase or sale in the United States or any other jurisdiction in which such an offer would be illegal. The securities referred to in this Presentation have not been, and will not be, registered under the U.S. Securities Act of 1933 as amended or the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly in the United States. The information in this Presentation is strictly confidential. It may not be disclosed, reproduced, disseminated, quoted or referred to, in whole or in part, without the express consent of Tesoro. Competent Person’s Statements The information in this Presentation that relates to Exploration Results is based on information compiled by Mr Zeffron Reeves (B App Sc (Hons) Applied Geology) MBA, MAIG). Mr Reeves is a member of the Australian Institute of Geoscientists and Managing Director and shareholder of the Company. Mr Reeves has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Reeves consents to the inclusion in this Presentation of the matters based on this information in the form and context in which it appears. The information in this Presentation that relates to Geophysical Results is based on information compiled by Dr Jayson Meyers who is a Fellow of the Australian Institute of Geoscientists. Dr Meyers is a consultant to Tesoro Resources Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Meyers does not hold any securities in the Company. The Company confirms it is not aware of any new information or data that materially affects the Geophysical Results included in the original announcement on 16 April 2021. The information in this Presentation that relates to Mineral Resources is based on information compiled by Mr Daniel Saunders, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Saunders is a full-time employee of Cube Consulting Pty Ltd, acting as independent consultants to Tesoro Resources Limited. Mr Saunders has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. The Company confirms that it is not aware of any new information or data that materially affects the Mineral Resource information included in the original announcement on 28 July 2021 and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The Company confirms that the form and context in which the applicable Competent Persons’ findings are presented have not been materially modified from the original announcement. The Company has released all material information that relates to Exploration Results for the El Zorro Gold Project, on a continuous basis to the ASX and in compliance with JORC 2012. The Company confirms that it is not aware of any new information that materially affects the content of this ASX release. TESORO RESOURCES (ASX:TSO) | CORPORATE PRESENTATION 2 Investment Highlights Au Chanaral • • • Tesoro (ASX:TSO) holds one of the largest & most prospective mining permits in the ‘Core Atacama’ Province of Chile. Cu TERNERA Strategically positioned in a tier one jurisdiction, near infrastructure & surrounded by world-class mining projects. (1) Cu/Au Discovered the El Zorro Project, a well defined 661,000oz (2) gold orebody. Scoping study & revised resource expected Q4 2021. • Significant exploration potential with less than 2% of the 555 km2 permit area drilled. • Active exploration program underway with six rigs drilling 60,000 meters over the next six months. • Cu/Fe Caldera Fe Cities El Zorro Project Other Mines Santo Domingo Proposed Port Yamana Gold License Copiapo Airport & Power Strong Cash Position of A$13.7 million. (3) Pan American Highway Cu/Au Au Tesoro License (555 km2) Notes: 1- Refer to Appendix 2 on Chile, 2- Refer to Maiden Mineral Resource, 28 July 2021 in Appendix 3, 3- At 30 June 2021 TESORO RESOURCES (ASX:TSO) | CORPORATE PRESENTATION 3 Company Strategy & Corporate Snapshot Strategy Utilise extensive geological experience to discover, define & develop high quality mining projects in the ‘Core Atacama’ province of Chile. Mineral Resource (0.3 g/t cut-off) (1) Mt 2.7 Indicated Au g/t 0.88 koz 75 Mt 22.4 Capital Structure Inferred Au g/t 0.81 koz 586 Mt 25.1 Total Au g/t 0.82 koz 661 Share Price History (A$) 0.35 0.30 A$0.105 603.2 million 98 million A$66 million 1,743,085 shares A$13.7 million Nil Shareholders 0.25 Top 20 Board & Management Wholesale Investors Other 0.20 0.15 0.10 0.05 51% 18% 24% 58% Broker Coverage Jan-21 ASX Share Price (2) Shares on Issue Performance Rights Market Capitalisation Average Daily Volume Cash (3) Debt Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 MST Access PAC Partners Buy Speculative Buy Notes: 1- Refer to Maiden Mineral Resource, 28 July 2021 in Appendix 3, 2- At 30 August 2021 3- At 30 June 2021 TESORO RESOURCES (ASX:TSO) | CORPORATE PRESENTATION 4 Board & Management John Toll Chairman John is a Partner at Azure Capital Limited with >15 years of experience in corporate advisory, focusing mainly on equity financing transactions across a range of industries including mining, technology, general industrials, biotech & infrastructure. >27 years of international resource sector experience as a Geologist, Project Manager & Fund Manager. Previously worked in Private Equity (FUM USD800 million) & as a Director of Societe General’s Mining Finance Team in New York. Operational roles include Project Manager, Senior Mine Geologist & Mine Geologist for Ivanhoe Mines, Lion Ore International & Western Mining Corporation. Qualified lawyer with >20 years’ experience in corporate law & compliance. She is currently Non-Executive Director of ASX listed companies Vmoto Limited, Bellevue Gold Limited & Company Secretary to a number of public unlisted & listed companies. Administrative, management & development professional with experience in Chile. He has worked on numerous resource projects from greenfields exploration, discovery, production, closure, retreatment & tailings reclamation. Part of the development team with Fortescue Metals Group during development of its Pilbara mining operations, he has 10 years of resource sector experience. Sergio has represented numerous foreign companies investing into resource projects in Chile & was Commercial Manager of Metallum Chile Ltd. where he was involved in the acquisition & development of their operation in Chile. Prior to this he was General Manager of Acorn Mining Chile Ltd & Country Manager for Cleveland Mining Chile Ltd. Sergio has a Business Management degree from Universidad del Desarrollo & is a member of the civil police & a military reserve officer. Zeffron Reeves Managing Director Shannon Coates Company Secretary Geologist with >20 years of experience in the resources sector on resource projects from greenfields exploration, discovery, definition & feasibility, construction, production to closure. Zeff previously Managing Director of ASX listed Metallum Ltd which had a number of development & operational projects in Chile. He has also held senior management positions with companies developing projects in Brazil. He has had previous exploration success identifying & delineating new gold districts in Brazil & Chile. Geoff McNamara Non-Executive Director Sergio Uribe Country Manager, Chile El Zorro: Chile’s Newest Gold Project 341600mE (4) • Tesoro Owns 85% of the El Zorro project. (1) 7036000mN 341800mE 7036100mN 342200mE 342000mE TSO Drilling Mineralised intercept (m/Aug/t) • Maiden Mineral Resource of 25.1 Mt @ 0.8 g/t for 661 koz of gold at 0.3g/t Au cut-off including 15.4Mt @ 1.09 g/t for 540koz at 0.5g/t Au cut-off. (2) Fault July 2021 Resource Estimate US$1700/oz Au Pit Shell 1.0/12.10 600mRL 21.28/0.34 1.0/7.09 • • • • • Resource has low sensitivity to lower gold price RPEEE pit shells. (3) Scoping Study Underway for an Open Pit Mine Development. Expected 4Q 2021. 37.0/0.43 incl. 4.0/1.15 Logistical advantages should provide significant CAPEX & OPEX savings: • Low Power Costs (12-17c/kwh, less than Australia) • Distance to Port only 57km • Distance to Workforce 53km US$2000/oz Au Pit Shell 14/0.55 30.5/0.40 76.0/0.93 incl. 12.0/1.39 incl. 18.7/1.57 400mRL 8.0/0.78 26.0/0.49 US$2500/oz Au Pit Shell Awaiting Results 26.0/0.49 incl. 56.0/3.49 incl. 1.0/7.73 incl. 8.5/2.49 200mRL 0 36.0/0.40 incl. 1/0.81 4.0/1.83 Good Metallurgy implies Simple Flowsheet. Design to include Single Stage Crushing & SAG Mill with Gravity & CIL. Potential for Attractive Strip Ratio with Outcropping Orebody. US$1800/oz Au Pit Shell 1.7/1.43 8.0/1.08 100 metres Indicated + Inferred Resource (0.30 g/t cut off) USD/Oz Gold Price Pit Mt Au g/t 1,700 18.3 0.88 1,800 19.4 0.88 2,000 20.9 0.86 2,500 25.1 0.82 Section -140m +/- 10m koz 519 548 580 661 Notes: 1- Tesoro may increase its holding of the JV via capital contributions. On the 26 August 2021, 15% JV partner Wanaco disputed the valuation & the procedure followed for the recent capital increase approved in the Shareholders Meeting of El Zorro SCM held on 11 February 2021. Tesoro is vigorously defending its position and is considering its legal options to have this spurious claim rejected by the court. 2- Refer to Maiden Mineral Resource, 28 July 2021 in Appendix 3. Alternate scenarios using different gold price inputs for the Reasonable Prospects for Eventual Economic Extraction (RPEEE) resource limiting pit shell demonstrate the sensitivity of contained mineralization. 4. Refer ASX announcements 10/06/2020, 4/09/2020, 16/12/2020, 21/12/2020, 25/06/2021, 6/07/2021 and 19/08/2021 TESORO RESOURCES (ASX:TSO) | CORPORATE PRESENTATION 6 Enormous Exploration Potential • Significant Intrusive Related Gold System (IRGS) analogous to the Tintina Province in the Yukon & Alaska (Fort Knox, Pogo, Brewery). • Minimal historical mining by artisanal workers at El Zorro & less than 2% of the permit area drilled. • Ternera deposit open in all directions with multiple prospects identified within close proximity. • Discovery Cost to date only US$21/oz (half the global average (2)). • Aggressive exploration planned targeting >60,000m drilling. • Six rigs drilling 24/7. PERMIT EXPLORATION TARGETS TERNERA EXPLORATION Notes: 1- Refer to Maiden Mineral Resource, 28 July 2021 in Appendix 3. 2- Refer to https://minexconsulting.com/wp-content/uploads/2021/05/Gold-Exploration-Trends-PDAC-May-2021.pdf for discovery costs of US$45/oz TESORO RESOURCES (ASX:TSO) | CORPORATE PRESENTATION 7 Recent Activity Exploration Drilling Core Shed Local Workforce Ternera Drill Rigs in Operation 8 Recent Exploration Highlights Ternera (1) New thick high grade gold zones outside existing resource (see cross section right). • 205.00m @ 0.96g/t Au; including 21.00m @ 5.26g/t Au • 40.00m @ 2.11g/t Au; including 17.50m @ 4.51g/t Au Ternera East (2) New discovery. • 21.28m @ 0.34g/t Au; including 4.50m @ 1.14g/t Au • 36.00m @ 0.40g/t Au; including: 4.00m @ 1.69g/t Au Ternera Drill Section +60m looking northwest. Hole ZDDH0170 & ZDDH0164 showing strong gold mineralisation outside of existing Mineral Resource model and significantly expanding known gold zones.(3) Notes: 1- Refer to ASX announcement 19 August 2021. 2- Refer to ASX announcement 11 August 2021. 3- Refer to ASX announcements 9/10/2020, 16/2/2021, 27/07/2021, 4/08/2021, 19/08/2021, & 27/08/2021 TESORO RESOURCES (ASX:TSO) | CORPORATE PRESENTATION 9 New Exploration Targets • Drone Hill & Toro Blanco have structural trends & high chargeability anomalies, as identified by the recently expanded Gradient Array Induced Polarisation (GAIP) survey (see map on right). (1) • Drone Hill first drill hole intersected a high grade gold zone of 11.50m @ 1.13g/t Au; including 1.57m @ 7.37g/t Au. (2) Note: 1- Refer to ASX announcement 16 April 2021. 2 – Refer ASX announcement 23 March 2021 TORO BLANCO DRONE HILL TERNERA NORTH TORO BLANCO TERNERA EAST TERNERA EAST TERNERA TERNERA TORO GORDO TORO GORDO DRONE HILL 10 Roadmap to Create Shareholder Value Immediate Focus • Continue to grow resources at El Zorro via low-cost drilling. • Identify repeats within the regional El Zorro exploration concessions. • Complete scoping study & build organisational capability to progress El Zorro to production. Key Activities for 2021/2022 2021 2022 Q3 Q4 Q1 Q2 Q3 Q4 Exploration & Development Ternera Resource Drilling (50,000m) Ternera Mine Drilling Resource Update Resource Update Met Testwork El Zorro Project Mining Studies Financial Analysis Scoping Study Report Feasibility Study Environmental Approvals FID Regional Exploration Exploration Ternera East, Drone Hill, Toro Blanco Drilling (10,000m) Maiden Resource Drilling TESORO RESOURCES (ASX:TSO) | CORPORATE PRESENTATION Analysis Approvals Key Announcements 11 Relative Valuation Offers Material Opportunity Relative to ASX listed gold peers at study or development stage for projects in Tier One jurisdictions, Tesoro has significant re-rating potential with broker valuations implying a >4x return. (1) EV/Resources (A$/oz) (2) 300 250 200 150 100 50 0 Challenger Company Challenger De Grey Capricorn Tesoro ASX Ticker CEL DEG CMM TSO Project Hualilan & El Guayabo Mallina Karlawinda El Zorro De Grey Region Argentina & Ecuador Australia Australia Chile Capricorn Status Exploration Study Commissioning Study Cut-Off (g/t) 0.3 0.3 0.3 Tesoro EV (A$ million) 179 1,570 791 50 Gold Resource EV/Resources (koz) (A$/oz) 627 285 6,800 231 4,228 187 661 76 Notes: 1- Refer to MST Access Broker Report 10 May 2021 (on Tesoro Website), 2- Enterprise Value in AUD at 5 August 2021. All Resource Estimates as per Company Presentations & Resource Updates. TESORO RESOURCES (ASX:TSO) | CORPORATE PRESENTATION 12 Appendix 1: Environmental & Social Strategy Our environmental & social strategy is aligned to the United Nations (UN) Sustainable Development Goals (SDG) with the company committed to ensuring its exploration & operational activities generate positive sustainability outcomes. Sustainability Pillars Summary Health & Safety Occupational Health & Safety are fundamental responsibilities Tesoro has towards its workforce. Our strategies & practices are based on providing a safe workplace for all employees, suppliers & contractors. Climate Change Total GHG emissions on a $ per value basis for newly mined gold is significantly lower than that for other major metals & mined products. Tesoro is committed to put in place a framework to ensure future mine developments are built & operated to support global greenhouse mitigation targets. Environment Tesoro applies leading exploration techniques, technology & practices to promote drilling efficiency & minimise environmental impacts. Furthermore Tesoro is committed to continual improvement of its environmental performance through a robust environmental management program. People & Culture Attracting, developing & retaining a diverse, inclusive & competent workforce is important to Tesoro & a key foundation to the company's policies and practices. Community Partnerships Tesoro partners with the local & host communities of the Coastal Cordillera region of Chile to share value through the creation of local jobs & business opportunities. Economic Sustainability Generating economic growth & value for all our investors, employees & stakeholders through successful exploration & investment in the Coastal Cordillera region of Chile. TESORO RESOURCES (ASX:TSO) | CORPORATE PRESENTATION UN SDG 13 Appendix 2: Why Chile 1) Low Sovereign Risk: Chile has a population of over 19 million people & is considered to be one of South America’s most stable & prosperous nations, enabling the country to significantly reduce poverty. Chile’s gross domestic product (GDP) is expected to rebound to 5.5% in 2021 (1), on the back of government stimulus & a rapid COVID-19 vaccination rollout (one of the best in South America). 2) Extremely Low Corruption: Chile ranks in the top quartile of countries in Transparency International’s 2020 Corruption Index, equal with the United States of America. 3) Supportive Government Policy Towards Mining: Mining is a major driver of the Chilean economy, contributing to more than 50% of Chile’s exports & 9% of GDP. The Fraser Institute’s 2020 (2) annual survey ranked Chile as the best country in South America for mining exploration investment based on public policy factors such as tax rates & regulation. 4) Significant Mineral Endowment: As the top producer of both copper & iodine in the world, Chile is also home to several other highly valuable natural resources including molybdenum, selenium, rhenium, nitrates, iron ore, lithium & of course precious metals such as gold. Most of the world’s largest mining companies operate in Chile. Source: 1-World Bank, 2- https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2020.pdf TESORO RESOURCES (ASX:TSO) | CORPORATE PRESENTATION 14 Appendix 3: Mineral Resource Maiden Mineral Resource Estimate of 661 koz gold announced on 28 July 2021 Cut-off Au g/t 0.3 0.4 0.5 0.6 0.7 0.8 Mt 2.7 2.1 1.7 1.4 1.2 0.9 Indicated Au g/t 0.88 1.03 1.17 1.28 1.4 1.64 koz 75 68 63 58 54 45 Mt 22.4 17.4 13.7 11.1 8.9 6 Inferred Au g/t 0.81 0.95 1.08 1.21 1.34 1.61 koz 586 529 476 430 385 312 Mt 25.1 19.4 15.4 12.5 10.1 6.9 Total Au g/t 0.82 0.96 1.09 1.22 1.35 1.62 koz 661 597 539 488 439 357 Mineral Resource Estimate Parameters • 148 HQ diameter diamond drill holes used (46,937m) • Domaining based on 3D modelling of lithology (El Zorro Tonalite) & faults • Resource Classification Criteria: • Geological continuity and volume; • Drill spacing & drill data quality; • Modelling technique; and • Estimation properties, including search strategy, number of informing composites, average distance of composites from blocks & kriging quality parameters. • Mineral Resource has been reported above a 0.30 g/t Au cut-off. Selection of the cut-off has considered results of metallurgical testing (ASX release 9 June 2020). The applied cut-off has been reviewed against that reported from peer projects with similar mineralisation styles and proposed processing options & is considered comparable. Pit Optimisation Parameters • It must be noted that the optimisation pit shell provided was for the purpose of constraining the Resource model only and is NOT an economic assessment of an open pit mining operation at El Zorro or indicates the economic gold price required for potential future mining at El Zorro. • The optimization was completed to delineate the portion of the Resource estimate that could potentially be mined by an open pit at some time in the future. The pit optimization was based on certain assumptions that are considered at to be preliminary & have a high degree of uncertainty. The purpose of the optimization is to provide a constraint around the resource with some explained economic parameters. • The gold price selected for the pit optimization was based on cut-off grade calculations using the conceptual cost, recovery and dilution inputs as outlined above, to match the geological cut off grade in the Mineral Resource Estimate. A gold price of US2,500/oz provides an estimated cut off grade for an optimized pit shell of approximately 0.3g/t Au, in line with the Mineral Resource cut-off grade. 15 Tesoro Resources Limited Suite 5, 62 Ord Street West Perth, WA 6005 Phone: +61 8 9322 1587 Email: info@tesororesources.com.au Web: www.tesororesources.com.au