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Disclaimer The information provided in this presentation is not intended to be a comprehensive review of all matters and developments concerning the Company. It should be read in conjunction with all other disclosure documents of the Company. The information contained herein is not a substitute for detailed investigation of analysis. No securities commission or regulatory authority has reviewed the accuracy or adequacy of the information presented. The presentation contains forward-looking statements which address future events and conditions which are subject to various risks and uncertainties. The Company’s actual results, programs and financial position could differ materially from those anticipated in such forward looking statements as a result of numerous factors, some of which may be beyond the Company’s control. These factors include: the availability of funds, the timing and content of work programs, results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles, project cost overruns or unanticipated costs and expenses, fluctuations in metal prices, currency fluctuations, and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of their preparation, may prove to be imprecise and as such, undue reliance should not be placed on forward-looking statements.
Focus on Production in 2006 “UC Resources is rapidly advancing in Mexico to acquire an asset base of high quality silver and gold production assets with significant upside on their exploration potential. It is my personal objective that UC Resources will become a producer of silver & gold in 2006.” Richard J. Hamelin, President / CEO
Why Mexico? • Mexico is one of the world’s largest silver producers and industry experts remain bullish on future supply and demand curves for both gold and silver. • Extraordinary market appreciation is being realized by Canadian producers and explorers in Mexico. • Mexico’s Sierra Madre Mining Belt hosts numerous major discoveries by other Canadian explorers like Gammon Lake, Kimber, First Majestic, Western Silver, Alamos, Mine Finders, and Endeavour Silver.
Why Silver? Estimated Total Silver Bullion Inventories, Year-end Source: CPM Group
Why Silver? Deficits’ Impact on Pricing Source: CPM Group
Why Gold? Five Year Gold Chart
Mexico’s Sierra Madres LA DURA PROJECT (UC RESOURCES)
Copalquin Results • 2004/2005 Phase I • High-grade and low-grade silver and gold encountered, indicative of a major epithermal-type deposit • 2005/2006 Phase II • Drilling clearly showed that alteration and silicification associated with the epithermal system is pervasive and extensive • 50 ounces/tonne silver and 1.4 ounces/tonne gold over 5 metre intersection at La Soledad target
Compelling Comparables • Results and Geology of Copalquin in Phase I & II are very comparable to early results of other Epithermal Systems in Mexico by: • Gammon Lake (Ocampo Project) • Kimber Resources (Monterde Discovery) • Alamos Gold Inc. (Mulatos Discovery) • Minefinders Corp. Ltd. (Dolores Discovery) • Silver Wheaton – Gold Corp. • Gammon Lake has reported a deposit containing an estimated 8 million ounces of gold equivalent
La Yesca Project • Modern 200 tonnes per day mill on site • Production target for 4th quarter of 2006 • Inferred mineral resources of approximately 225,000 tonnes of tailings grading 2.0 g/t gold and 220 g/t silver • 600 hectare exploration and exploitation project • Two existing historically productive silver-gold mines to be rehabilitated in 2007 • Exploration upside
La Dura Project • Under letter of intent for a 90% interest in: • 60 tonnes per day flotation concentrating plant with expansion capabilities to 300 tonnes per day • 100,000 tonnes of silver and gold tailings • Past producing mine to be rehabilitated and made productive in 2007 • 761 hectare mining concession with known epithermal vein system
Share Structure: TSX.V:UC (As of Sept 30, 2006) • Shares issued: 69.8 million • Options outstanding: 6.2 million • Warrants outstanding: 20.3 million • Fully diluted basis: 96.3 million • Daily share volume: 500,000 shares • Market Cap (as of 09/28/06): $35.6 MM • Additional cash raised on dilution: $3.8 MM
Management • Richard J. Hamelin – President CEO, Director • Nicole Wood – CFO & Controller • William Elston – VP Corp. Development • Carl von Einsiedel – Exploration Consultant • Gregory Roberts - Director • Gary Monaghan - Director • Michael Cartmel – Director • David Boyd - Director
CEO Richard J. Hamelin President / C.E.O. • Appointed President & CEO on June 15, 2005 • Resident of Mexico: Extensive network of professionals providing a steady flow of potential acquisitions • Extensive experience in both international mining development projects and in capital markets
Corporate Achievements • Acquisition of Minera Planet Mexican Exploration Subsidiary • Acquisition of Minera Silver Creeck Mexican Production • Acquisition Letter of Intent signed in August 2006 to acquire El Alizal Mexican Subsidiary • Discovered a 5 metre wide mineralized zone at La Soledad target of 50 oz/tonne silver and 1.4 oz/tonne gold • Phase 2 surface trenching & sampling returned economic silver and gold values extending the strike length of the zone • Increased land package of flagship Copalquin Mining District from 7,000 to 64,000 hectares (640 sq. km’s) in two phases • Completed 3 rounds of equity financing for $4+ million for exploration and production acquisitions in Mexico
Short-Term Goals • Growth through new acquisitions • Exploration and development of flagship Copalquin Mining District • Develop recent production acquisitions: La Yesca, La Dura and Mar projects • Enhance valuation of asset through modern exploration techniques
Financing Initiatives • Negotiations are currently being discussed with those active in financing Mexico’s precious metals mining opportunities. • The Company’s future focus will be to finance through more traditional methods with Capital Partners. * Debt * Convertible Debentures * Future Project Financing in the range of $25mm to $125mm
Benefits As A Producer • Cash flow, cash flow, cash flow • Producers enjoy higher valuation multiples by industry analysts • Stronger participation from institutional investors • Broader coverage by research analysts and investment banking community
Long Term Objectives • Build a mid-tier Exploration and Production company with a specific focus on silver and gold exploration and development in Mexico • Increase market capitalization through acquisitions and internal growth from our existing projects, to evolve into a $500+ mm market cap company, with the objective of attracting a major to the table for a friendly merger or take-over • Our final objective is to provide our investors and partners with a clearly defined acceptable exit strategy
Summary • Management has enjoyed a successful track record in mining development and capital markets • Trading at a lower market cap than other Canadian emerging producers • All 4 projects centrally located in the heart of Mexico’s prolific Sierra Madre mining belt • Phase II drilling on Copalquin completed, Phase III set to begin in October • Additional acquisitions in advanced stages of evaluation
Offices Vancouver Corporate Headquarters: #1000, 355 Burrard Street Vancouver, B.C. V6C2G8 Canada Contact:William S. Elston Vice President Tel: 604-681-7265 Fax: 604-608-6163 Toll: 1-800-366-8566 Email: elston@ucresources.net Website: www.ucresources.net Mexico Office: Torreon Coahuila, Mexico Richard J. Hamelin VOIP: 1-416-907-0788 Email: hamelin@ucresources.net
