ValOre Metals (TSXV:VO) - Pitch Perfect, November 2025

Key Concepts

• Valor: A company focused on platinum group element (PGE) metals, specifically platinum and palladium.
• Pedra Brana Project: Valor's 100% owned project in Brazil, targeting platinum, palladium, and gold.
• Platinum Group Elements (PGEs): A group of six precious metals including platinum, palladium, rhodium, ruthenium, iridium, and osmium.
• Autocatalysts: Devices used in vehicles to convert toxic gases into less harmful substances, a major driver of PGE demand.
• Structural Deficit: A situation where demand for a commodity consistently exceeds its supply.
• Near-Surface Ore Body: A mineral deposit located close to the Earth's surface, making extraction potentially less costly.
• Trial Mining License: A Brazilian regulatory mechanism allowing for demonstration plants and early-stage operations to de-risk projects.
• Preliminary Economic Assessment (PEA): An early-stage study to assess the economic viability of a mining project.
• M&A (Mergers and Acquisitions): A strategy for growth involving the purchase or combination of companies.
• Discovery Group: A significant background in M&A and financing, associated with Valor.

Valor's Project in Brazil: Platinum Group Element Metals

This presentation outlines Valor's strategic focus on platinum and palladium, particularly through its Pedra Brana project in Brazil. The company highlights the attractive market dynamics for these precious metals and the favorable investment environment in Brazil.

Valor and Leadership

• Nick Smart, CEO of Valor: A chemical engineer with extensive experience in mine development, including roles at Anglo-American in South Africa, Namibia, and Brazil (developing the Baro Alto nickel project). He also has experience in diamonds with De Beers.
• Jim Pettison, Chairman: Brings significant experience in M&A and financing, associated with Discovery Group.
• Discovery Group: A key partner providing access to capital, market understanding, and M&A expertise, with a track record including Kamak, Great Bear Resources, Great Bear Royalties, and Hatheror.
• Valor's Strengths: A combination of market understanding, access to capital, and the technical/operational skills to bring projects into production.

Brazil: A Prospective Jurisdiction

Nick Smart, drawing on his six years of experience in Brazil, expresses strong optimism about the country's mining sector and regulatory environment.

• Recent Visit and Observations: A two-and-a-half-week trip revealed significant infrastructure development, driven by investment in agriculture and mining.
• Streamlined Regulatory Process: The Brazilian government has implemented a "smart system" for licensing and operations, including the ability to apply for trial mining licenses and establish demonstration plants. This allows for early-stage de-risking and development before full industrial operations.
• Financial Capital and Financing Models: Discussions in São Paulo indicate an interest in adopting Canadian models for financing exploration companies.
• Human Capital Investment: Brazil possesses a strong pool of geologists, mining engineers, and metallurgists, crucial for successful operations.
• Overall Assessment: The combination of these factors makes Brazil an attractive location for developing mining projects.

Market Dynamics for Platinum and Palladium

The presentation emphasizes a significant shift in the market for platinum and palladium, moving from a period of depressed prices to one of strong growth.

• Historical Context: For most of the last century, platinum traded at a premium to gold due to its rarity and extraction difficulty.
• Recent Price Depression (7-8 years): This led to underinvestment in new supply.
• Current Market Trend: A growing deficit between demand and supply is driving significant price increases.
  • Platinum: Up over 60% year-to-date.
  • Palladium: Up 50% or more year-to-date.
• Demand Drivers:
  • Autocatalysts: A primary driver of demand.
  • Electric Vehicles (EVs) vs. Internal Combustion Engines (ICE) and Hybrids: Contrary to earlier assumptions, the demand for platinum and palladium has not been significantly reduced by EVs.
    • ICE Segment: Continues to contribute to demand.
    • Hybrid Vehicle Segment: Growing demand, and importantly, hybrids use more platinum and palladium in their autocatalysts than ICE vehicles.
• Supply Lag: Supply has not kept pace with this sustained and growing demand, leading to the increasing deficit.
• Future Outlook: Valor anticipates strong ongoing drivers for price growth in the future.
• Platinum's Resurgence: The speaker believes platinum has been unfairly lagging and is now experiencing a resurgence, making it an opportune time for projects like Pedra Brana.

The Pedra Brana Project

Valor's 100% owned Pedra Brana asset in the state of Ceará, northeastern Brazil, is central to their strategy.

• Location and Access:
  • Located in Ceará, northeastern Brazil.
  • Excellent access via paved highways, approximately 4 hours from Fortaleza (state capital with a deep-water port).
  • Good road and electrical infrastructure.
  • Strong local community support from the town of Capel Moore.
• Resource:
  • 2.2 million ounces of platinum, palladium, and gold.
  • Grade: 1.08 g/ton.
• Ore Body Characteristics:
  • Accessible, near-surface ore body: This is a key differentiator from many global PGE deposits, which are often deep-level mines requiring significant investment to reach.
  • Mineralization extends to the surface, making it easier and potentially less costly to access.
  • Open pit mining is being considered as the preferred method.
• Geographical Significance: Brazil is an outlier for PGE production, with approximately 90% of global platinum reserves located in South Africa and Russia being the second-largest producer. This makes Brazil a unique and stable jurisdiction for developing such a project, with good infrastructure.
• Expansion Potential: The ore body holds significant potential for expansion through continued drilling.

Path Forward for Valor

Valor has a clear roadmap for advancing the Pedra Brana project and exploring further opportunities.

• Exploration and Drilling Program:
  • Since acquiring the asset in 2019, Valor has doubled the resource size.
  • Over $10 million invested in drilling.
  • High confidence in the current resource.
• Metallurgical Test Work:
  • A large sampling campaign has been completed.
  • Currently undertaking metallurgical test work to prove project economics.
  • Next phase will involve larger-scale metallurgical testing.
• Timeline for PEA: Aiming to publish the Preliminary Economic Assessment (PEA) during Q4 of next year.
• Licensing and Development: Following the PEA, the focus will be on licensing and development to bring the operation into production.
• M&A Strategy:
  • Valor views Brazil as a highly prospective region for both exploration and M&A.
  • Actively looking at other precious metals producers in the region.
  • Anticipates exciting announcements regarding M&A during the early course of next year.
• Leveraging Capital Access: Valor intends to leverage its access to capital through Canadian markets to advance its project and pursue strategic partnerships and acquisitions.
• Local Team: Valor benefits from a strong local team of geologists and exploration experts in Brazil, and is building its operational team to execute the project.

Conclusion

Valor is strategically positioned to capitalize on the growing demand and favorable market conditions for platinum and palladium. The Pedra Brana project in Brazil offers a unique near-surface deposit with significant expansion potential. Combined with a supportive regulatory environment, strong local talent, and access to capital, Valor is well-equipped to advance this project towards production and explore further growth opportunities in the region.