Aquila Resources : Investor Presentation

Developing North

America's Next

Great VMS Belt

TSX: AQA

OTCQB: AQARF

Investor Presentation June 2019

Disclaimer

This presentation contains certain forward‐looking statements within the meaning of applicable Canadian securities legislation. In certain cases, forward‐looking statements can be identified by the use of words such as "plans", "expects" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" and similar expressions suggesting future outcomes or statements regarding an outlook.

Forward‐looking statements relate to any matters that are not historical facts and statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, without limitation, statements with respect to additional upside potential of the Project and the potential for underground mining activities at the Project and benefits associated therewith, statements with respect to the expected project economics for the Project, such as estimates of life of mine, total production and average production, metal production and recoveries, C1 cash costs, AISC, capital and operating costs, pre- and post-tax IRR, pre- and post-tax NPV and cash flows, the potential conversion of Inferred Mineral Resources into Indicated Mineral Resources, any projections outlined in the Feasibility Study in respect of the Project, the permitting status of the Project and Aquila's future exploration and development plans and associated timelines.

These and other forward‐looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Aquila to control or predict, that may cause their actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein. These risks include those described under the heading "Risk Factors" in Aquila's most recent annual information form and its other public filings, copies of which can be under Aquila's profile at www.sedar.com. Aquila expressly disclaims any obligation to update forward‐looking information except as required by applicable law. Such forward‐looking information represents Aquila's best judgment based on information currently available. No forward‐looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward‐looking statements or information. Furthermore, Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

None of EBITDA, all-in sustaining costs ("AISC"), or free cash flow ("FCF") have a standardized meaning under IFRS. See "Non-IFRS Measures" in the Company's news release dated August 1, 2018. Financial evaluation includes financial impacts of the Company's silver stream with Osisko Gold Royalties (OGR) but does not include the financial impact of its gold stream with OGR for which the majority of the upfront payments have yet to be received and for which there is uncertainty regarding the exact timing of these payments. See the Company's Q1 2018 Financial Statements and MD&A available on SEDAR for additional details regarding the gold stream.

Andrew Boushy, Senior Vice President, Projects for Aquila Resources, is the Qualified Person for the Company as described in National Instrument 43-101 and is responsible for the technical contents of this presentation.

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INVESTMENT HIGHLIGHTS

Advancing development of

100%-owned Back Forty

Projectin Michigan

Favorable metal exposure

to Gold and Zinc

Well-establishedand safemining jurisdiction

Granted 4 of 4 Permits

including Mining Permit and Wetlands Permit

Well-funded,

strong shareholder base

Exploration upside:

• Near deposit
• Prospective projects on thePenokean Belt

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Developing North America's

NEXT GREAT VMS BELT

Attractive Pipeline of Projects in

HIGHLY PROSPECTIVE DISTRICT

Back Forty

• Gold and Zinc
• Fully Permitted
• Pre-constructionphase

Prospective projects located in Wisconsin

• Bend
• • Copper-GoldExploration
• Reef
• • Gold Exploration

Located along the

Penokean Volcanic Belt

	Region is experiencing a
4	mining resurgence	TSX: AQA
	OTCQB: AQARF

Back FortyFLAGSHIP PROJECT

INVESTED TO DATE

>$95M	•	Exploration	•	Land acquisitions	• Engineering
•	Technical reports	•	Permitting activities

100%-owned Gold- and Zinc-rich deposit

Re-acquired from Hudbay in Q1 2014

Received all State and Federal permissions required for construction and commencement of operations

Open Pit Feasibility Study completed August 2018

Attractive exploration upside

Near deposit

Underground expansion (open at depth)

Strategic location on

Penokean VMS Belt

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Back FortyFEASIBILITY STUDY Results*

STRONG ECONOMICS GENERATED

By open pit only - Deposit remains open at depth

Contemplates mining 11.65Mtof ore over 7 year project life

Total estimated Capex of $294M

High margin

• 82% gross margin

Pre-Tax	After-Tax
NPV@ 6% $259M	$208M

IRR32.0%28.2%

Payback	2.2years
Period

6	*Completed August 2018. Base Case Metal Prices:Gold: $1,300/oz; Zinc: $1.20/lb; Silver: $20.00/oz; Copper: $3.00/lb; Lead: $1.00/lb	TSX: AQA
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Back FortyPRODUCTION HIGHLIGHTS

DIVERSE REVENUE STREAMS

Provide Natural Hedge

Production Parameters

Project Life	7 years
Throughput	4,800 tpd
Strip Ratio (life of project)	4.3:1

Payable Production

Metal	Life of Project	Average Annual
Gold (K oz)	468	67
Zinc (K lbs)	512,198	73,171
Copper (K lbs)	51,109	7,301
Silver (K oz)	4,458	637
Lead (K lbs)	24,183	3,455

BENEFITS OF POLYMETALLIC DEPOSITS

Revenue by Product	Revenue by Metal
	2%
8%	6%
16%	10%
45%		41%
31%	41%
Zinc Concentrate	Gold	Zinc
Copper Concentrate	Copper	Silver
Doré	Lead
Lead Concentrate

135,000 oz. of gold produced in Year 1

7	Base Case Metal Prices:Gold: $1,300/oz; Zinc: $1.20/lb; Silver: $20.00/oz; Copper: $3.00/lb; Lead: $1.00/lb	TSX: AQA
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High-Margin Project

BACK FORTY GROSS MARGIN

+ 80%

Feasibility Study

84%	82%							Pre-Feasibility Study
		75%
		73%	72%				PEA
					63%	63%	60%
							57%
								55%
Trilogy		Euro Sun	Lydian	Lundin Gold	Euromax	Liberty Gold	NovaGold	Belo Sun	Hot Chili
Metals	(Back Forty)	(Rovina	(Amulsar)	(Fruta del	(Ilovica-	(Goldstrike)	(Donlin)	(Volta	(Productora)
(Arctic)	Valley)		Norte)	Shtuka)			Grande)

Source: Company filings

8Notes: Gross margin based on contained metals at analyst consensus long-term metal prices and operating cost per tonne of processed ore Gold: $1,320/oz, Silver: $18.50/oz, Copper: $3.10/lb, Lead: $0.95/lb, Zinc: $1.09/lb, Molybdenum: $9.25/lb

TSX: AQAOTCQB: AQARF

Back Forty Open Pit

MINERAL RESERVE ESTIMATE

70% OF RESERVES

are in Proven Category

Gold equivalent grade 4.3 g/t

Zinc equivalent grade 6.7%

BACK FORTY MINERAL RESERVE ESTIMATE AS OF FEBRUARY 6, 2018

Category	Ore	NSR	Gold	Silver	Zinc	Lead	Copper
Mt	$/t	g/t	g/t	%	%	%
Proven	8.12	$120	1.95	18.4	3.02	0.13	0.35
Probable	3.53	$85	1.63	29.3	1.76	0.41	0.10
Proven + Probable	11.65	$109	1.85	21.7	2.64	0.21	0.28

1. CIM definitions were followed for the Mineral Reserve Estimate.
2. The Mineral Reserve Estimate used average long term metal prices of $1,250/oz gold; $20.00/oz silver; $1.15/lb zinc; $1.00/lb lead; and $3.00/lb copper.
3. A Mineral Reserve is defined within a mine plan, with pit phase designs guided byLerchs-Grossmann (LG) pit shells, after dilution and mining loss adjustments.

1. Metallurgical recovery used was a variable function of the rock type and metal grade.
2. The Mineral Reserve Estimate for the Project will be comprised of eight different ore types that will be processed either though a flotation concentrator or cyanide leach plant. NSRcut-off values applied are: Ore 1 - $16.50/t, Ore 2,3,4,7,8 - $16.00/t,
   Ore 5 - $17.50/t, and Ore 6 - $28.50/t.

4. The Mineral Reserve Estimate is derived from Measured and Indicated Mineral Resources only.

7. The life-of-mine strip ratio is 4.3:1 including the pre-construction period.

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Back FortyCAPITAL AND OPERATING COSTS

PREPARED WITH SUPPORT FROM GLOBALLY RECOGNIZED EXPERTS

INCORPORATES BEST PRACTICES IN ALL ENVIRONMENTALLY SENSITIVE AREAS

Capital Costs Summary

Area	$M
Indirect Construction	19
Common Plant	20
Oxide Plant	33
Sulphide Plant	59
TMF/WRFs	39
Infrastructure	33
Mining	25
Management Costs	22
Owner costs	13
Subtotal	263
Contingency (12%)	31
Total	294

Operating Costs Summary

	Life of	$/t
	Project
	Ore
	($M)
Gross Revenue	1,437	123
Realization Charges	180	15
NSR (Base Case)	1,256	108
Mining	160	14
Processing	184	16
G&A	27	2
Total Site Opex	371	32

C1 cash costs of $499/oz gold eq. or $0.46/lb zinc eq. Net C1 cash costs of -$590/oz gold or -$1.73/lb zinc

10

Sustaining capital of $111M

Mine closure costs of $75M (starting in Year 8)

AISC of $677/oz gold eq. or $0.62/lb zinc eq. Net AISC of -$171/oz gold or -$1.34/lb zinc

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PROCESS FLOWSHEET

SULPHIDE ORE PROCESSING (4,000 tpd)

Ore from Mine	Primary	SAG/	Flotation
or Stockpile	Crushing	Ball Mill	Plant

Cu

Zn

Pb

Tailings

Conc - 80.6% Recovery

Conc - 91.7% Recovery

Conc - 81.5% Recovery

OXIDE ORE PROCESSING (800 tpd)

Tailings

Ore from Mine	3 Stage	Ball Mill	Leach	Au/AgDoré
or Stockpile	Crushing		Plant	Au - 91.6% Recovery
				Ag - 68.6% Recovery

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VALUE CREATION MILESTONES

• Obtain Wetlands Permit
• Complete Open Pit Feasibility Study

Evaluate underground mine expansion

Advance Pre-Construction Activities

• Permit amendments
• Basic and Detailed Engineering

Continue to expand underground resource

Expand owner's team

Raise project capital and consider strategic alternatives

Develop additional assets on the Belt

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US$65M FINANCINGwith Osisko Gold Royalties

Funds a Significant Portion of Pre-Construction Activities and Project Capital

INVESTMENT BY OSISKO

US$10M equity private placement

US$55M gold stream with staged payments:

• US$7.5 millionon closing (received Nov. 10, 2017)
• US$7.5 millionon receipt of all material permits and receipt of
  a positive feasibility study (received Oct. 5, 2018)
• US$10 millionfollowing a positive construction decision for Back Forty

KEY GOLD STREAM TERMS

Osisko will purchase 18.5%of the refined gold from Back Forty until 105,000ounces of gold have been delivered

• Thereafter the percentage will be reduced to9.25%of the refined gold

Ongoing payment: Osisko will pay the Company 30%of the spot price of gold on the day of delivery, subject to a maximum payment of US$600per ounce.

• US$30 millionupon the first

	drawdown of a project debt
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Back FortyFUTURE DRILL PROGRAM TARGETS

Deposit Open at Depth

2016 ZONE

Lone Pine South

MAJOR INTERCEPTS IN THIS AREA

LK-479

8.7m @ 6.0 g/t Au, 245 g/t Ag 5.9% Zn

LK-504

7.4m @ 7.3 g/t Au, 190 g/t Ag 1.5% Zn

NS Zone Conversion

LOWER DEEP ZONE

400 m

PINWHEEL NW

		TUFF ZONE
		EXTENSION
		UPPER DEEP
		ZONE
MAJOR	LK-484
INTERCEPTS	31m @ 6.32 g/t Au, 34 g/t
IN THIS AREA	Ag, 0.47% Pb, 1.8% Zn
LK-479	Including
17m @ 13.8 g/t Au,
69.7m @ 1.12 g/t Au,
69 g/t Ag
27 g/t Ag 0.4% Cu,
1.3% Zn	LK-502
Including	54m @ 0.86 g/t Au, 51 g/t
Ag, 0.78% Pb, 1.86% Zn
6.2m @ 6.4 g/t Au,
94 g/t Ag	Including
	22.5m @ 1.49 g/t Au, 49

700 m

g/t Ag, 0.77% Pb, 2.0% Zn

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Back FortyFUTURE DRILLING PROGRAM

EXPLORATION

OBJECTIVES

New Resource	Pit Outline
Discovery
Extend strike length
of known resources
Continue Inferred
Conversion in Gold and
Polymetallic zones
PROPOSED DRILL
PROGRAM
Seven Target Areas

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NEXT GENERATION ASSETS in Wisconsin

Attractive Pipeline of Projects in

HIGHLY PROSPECTIVE DISTRICT

BEND COPPER-GOLD PROJECT

REEF GOLD PROJECT

100%-owned VMS occurrence located in the Penokean Volcanic Belt

>14,000 meters of historical drilling delineating a non-43-101 compliant resource*

• 2.7M tonnesgrading, 2.4% copper,
  1.4 g/t gold and 13.7 g/t silver in copper zone
• 1.12M tonnesgrading, 4.7 g/t gold and 0.31% copper in gold zone

Aquila drilling in 2012 indicates major expansion

100%-owned,high-grade gold mineralization potentially amenable to low-cost,open-pit mining

Historic drilling delineated a non-43-101 compliant resource* of 140,564 contained gold ounces (412,410 tonnes @ 10.6 g/t)

• Phase III drill programto expand and define resource

Aquila drilling shows broad zones of gently-dipping mineralization open in all directions

NEW MINING LAW APPROVED December 2017

16* The Company is not treating the historical estimates as current mineral resources or mineral reserves and the historical estimates should not be	TSX: AQA
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relied upon or understood to indicate the existence of reserves or resources.

MANAGEMENT TEAMExperienced & Committed

Committed to

UNLOCKING AQUILA'S POTENTIAL

BARRY HILDRED, CEO

Currently a director and Past-Chair of The Children's Aid Foundation of Canada. Founder and Former President of TMX Equicom. 25+ years of capital markets experience.

STEPHANIE MALEC, CFO

15+ years of experience combining accounting, financial reporting, public markets and mining sector work. Previously with Malbex Resources, Starfield Resources, Dundee Precious Metals, Falconbridge and PriceWaterhouseCoopers.

DAVE CAREW,Director of Corporate

Development and Investor Relations

Former VP Corporate Development and Investor Relations at Aldridge Minerals and previously a mining industry-focused investment banker. 10+ years of capital markets experience.

CHANTAE LESSARD,Director, Social Performance and Engagement

20 years of experience in the mining industry, most recently as Manager Corporate Social Responsibility, providing support and technical oversight to Lundin Mining Operations in North America, Chile, Spain, Portugal, and Sweden.

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MICHAEL WELCH, COO

More than 30 years of experience. Previously Managing Director of Lundin's Somincor Operations, including the Neves-Corvo copper and zinc mine in Portugal. Prior to that he was GM of Lundin's Eagle Mine in Northern Michigan. Formerly VP Operations for Xstrata Nickel's Raglan Operation in Quebec.

ANDREW BOUSHY, P.Eng.,SVP Projects

More than 25 years of experience in major capital project delivery, engineering design, strategic business planning, construction and operational optimization. Worked domestically and internationally in various project, construction and consulting roles. Mr. Boushy has held senior roles with Ausenco Canada and Xstrata Nickel (now Glencore).

JEFF LYNOTT,P.Geo.,Director of Exploration

Over 30 years of experience in mineral exploration, mine development, environmental site investigations and reclamation.

DAVID ANDERSON,Director of Environment and Regulatory Affairs

25 years of experience in environmental monitoring, impact assessment, regulatory affairs and permitting, and most recently served as the Director of Environment for Highland Copper's Copperwood project.

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LEADERSHIP TEAM Strong Board

DIRECTORS INCLUDE EXPERIENCED MINING VETERANS WITH DEVELOPMENT AND OPERATIONS EXPERIENCE

EDWARD MUNDEN, Chairman

Currently a Director and Co-Founder of private investment company and a Director of Mustang Minerals. Co-founded a NASDAQ-traded energy company and held senior positions until it was sold in 2001.

35+ years of experience in energy, mining and technology industry.

JACQUES PERRON

Currently a Director of Centerra Gold, Victoria Gold and TMAC. Over 30 years of technical and operations experience in the mining industry. Previously CEO of Thompson Creek and St Andrew Goldfields.

PETER M.D. BRADSHAW

Currently a Director with First Point Minerals. 45 years of international mineral exploration experience in over 30 countries with Barringer Research, Placer Dome and Orvana Minerals. Member of The Canadian Mining Hall of Fame.

ANDREW W. DUNN

Currently Managing Partner of Canadian Shield Capital. Previously spent 27 years at Deloitte, and served as Vice Chair of Deloitte Canada and Chair of its Client Cabinet.

IAN PRITCHARD

Currently Chief Operating Officer of Belo Sun Mining. Brings more than 30 years of industry experience with a particular focus on project and operations management.

18

BARRY HILDRED, CEO

Currently Chairman of Children's Aid Foundation of Canada. Founder and Former President of TMX Equicom. 20+ years of capital markets experience.

KEVIN DROVER

Currently President & CEO of Aurcana Corporation since 2014. 40+ years of experience in management, operations and project development with mining companies with assets around the world, including Kinross Gold, Benz Mining, Oracle Mining and Glencairn Gold.

STEPHEN FABIAN

Currently a Principal and Director of Genus Capital Fund, listed on the LSE as the Baker Steel Resource Trust. Founder of South American Ferro Metals and formerly held positions with County NatWest and Rock Capital Partners. 25+ years of experience in the mining and finance industry.

JOSEPH DE LA PLANTE

Currently Vice President Corporate Development of Osisko Gold Royalties. Prior to this, Mr. de la Plante held the position of Senior Advisor, Investment and Corporate Development of Osisko Mining Corporation, where he played a key role in the company's investor relations and corporate development.

TSX: AQA

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AquilaCAPITAL STRUCTURE

Strong

SHAREHOLDER SUPPORT

Current Capital Structure

TSX	AQA
OTCQB	AQARF
Share Price (As of June 5, 2019)	C$0.21
Avg. daily volume (3-mth) (TSX + OTC)	75,000
52-week range	C$0.13 - $0.39
Shares O/S	338M
Market Cap.	C$71M
Year End	December 31
Cash position @ March 31, 2019	US$11.9M
Balance of Osisko payments owing	US$40M

Analyst Coverage

Cormark Securities	Stefan Ioannou

CURRENT OWNERSHIP

STRUCTURE

40%

60%

Retail

Insiders & Institutional

Major Institutional Shareholders

Osisko Gold Royalties	14.7%
Orion	14.0%
Ruffer	12.8%
Hudbay	10.8%

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CONTACT INFORMATION

BARRY HILDRED	DAVE CAREW
Chief Executive	Director of Corporate
Officer	Development & IR
Aquila Resources	Aquila Resources
647.943.5673	647.943.5677
[e-mail]	[e-mail]

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APPENDIX

Back FortyMINERAL RESOURCE ESTIMATE

~94% OF RESOURCES

are in M&I Category

BACK FORTY MINERAL RESOURCE ESTIMATE AS OF FEBRUARY 6, 2018 (1-6)

Category	Tonnes	Au	Au	Ag	Ag	Zn	Zn	Cu	Cu	Pb	Pb
(1,000)	(g/t)	(K oz)	(g/t)	(K oz)	(%)	(M lb)	(%)	(M lb)	(%)	(M lb)
Measured	7,943	2.04	522	20.4	5,214	3.34	584.3	0.35	61.2	0.17	30.0
Indicated	8,680	1.80	504	28.7	8,013	2.95	563.8	0.29	55.8	0.34	64.9
M&I	16,623	1.92	1,026	24.7	13,227	3.13	1,148.1	0.32	116.9	0.26	94.9
Inferred	1,129	3.42	124	43.2	1,568	1.03	25.7	0.35	8.7	0.44	11.0

1. Mineral Resources are estimated as of February 6, 2018. See Aquila news release dated February 7, 2018 for a complete summary of the 2018 Minerals Resource Estimate.
2. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
3. The Inferred Mineral Resource in this estimate has a lower level of confidence that that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
4. The Mineral Resource was estimated using CIM guidelines and include the Mineral Reserve.
5. Metallurgical type Oxide (all gold domains and leachable Gossans) is leachable, while all other metallurgical types are flotable.
6. The Mineral Resource Estimate was based on metal prices of US$1,375/oz gold, US$22.27/oz silver, US$1.10/lb zinc, US$3.19/lb copper and US$1.15/lb lead. An NSRcut-off of $21/tonne was used for the floatable portion of the in-pit resource and an NSR cut-off of $22/tonne was used for the leachable portion of the in-pit resource. An NSR cut-off of $70/tonne was used for the out of pit portion of the resource. See Aquila news release dated February 7, 2018.

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Back FortyGEOLOGIC CROSS SECTION

			Idealized Pit Outline
TUFF ZONE	Tuff Zone massive
EXTENSION	sulfide	2016 ZONE	PINWHEEL
		EXTENSION
		NORTH
50-150m		50-150m	Pinwheel massive sulfide and
			gossan	100-200m
			Main
			Zone
Rhyolite
	DEEP ZONE				Tuffaceous
				sediments
	TARGETS
		100-200m
			Deep		Tuff
			Zone
					R2
Future Drill Target Areas				Tuff
			R1
		200-700m	Tuff
		R0

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Back FortySENSITIVITY ANALYSIS

ECONOMICALLY VIABLE

Against Commodity Price Fluctuations

	Base Case	Base Case	Base Case
	-15%		+ 15%
Gold ($/oz)	1,105	1,300	1,495
Zinc ($/lb)	1.02	1.20	1.38
Silver ($/oz)	17.00	20.00	23.00
Copper ($/lb)	2.55	3.00	3.45
Lead ($/lb)	0.85	1.00	1.15
Pre-Tax
NPV @ 6%	102	259	416
IRR	17.9%	32.0%	44.1%
After-Tax
NPV @ 6%	79	208	332
IRR	15.5%	28.2%	38.9%
Payback Period (years)	3.3	2.2	1.5

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Back Forty SITE PLAN

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MILESTONE PAYMENTS to Hudbay Minerals

Based on Purchase of Hudbay's

51% INTEREST IN BACK FORTY

AMOUNT

C$3 Million

C$2 Million

C$2 Million C$2 Million

TIMELINE

Payable upon completion of financing tied to start of construction at Back Forty

Up to 50% payable in Aquila shares

Payable 90 days after start of commercial production

Payable 270 days after start of commercial production

Payable 450 days after start of commercial production

First milestone payment due January 2024

1% NSR was repurchased from Hudbay in April 2015 concurrent with Orion transaction

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