Altius Minerals : Feb 2020 BMO Conference Presentation

BMO Global Metals and Mining Conference

TSX:ALS | OTCQX:ATUSF

February 2020

Forward Looking Statements

This document includes certain statements that constitute "forward‐looking statements" and "forward-lookinginformation" within the meaning of applicable securities laws (collectively, "forward‐looking statements"). Forward-looking statements include statements regarding Altius Minerals Corporation's ("Altius") intent, or the beliefs or current expectations of Altius' officers and directors. Such forward-looking statements are typically

identified by words such as "believe", "anticipate", "estimate", "project", "intend", "expect", "may", "will", "plan", "should", "would", "contemplate",

"possible", "attempts", "seeks" and similar expressions. Forward‐looking statements may relate to future outlook and anticipated events or results.

By their very nature, forward‐looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward‐looking statements will not prove to be accurate. Do not unduly rely on forward‐looking statements, as a number of important factors, many of which are beyond Altius' control, could cause actual results to differ materially from the estimates and intentions expressed in such forward‐looking statements.

Forward‐looking statements speak only as of the date those statements are made. Except as required by applicable law, Altius does not assume any obligation to update, or to publicly announce the results of any change to, any forward‐looking statement contained herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward‐looking statements.

TSX:ALS | OTCQX:ATUSF

Growth Track Record

Royalty Revenue

				$67M	$78M
		$33M	$47M
$6M	$28M
FY 2014	FY 2015	FY 2016	FY 2017	2018	2019

Royalty Revenue Per Share

				$1.56	$1.84
	$0.88	$0.83	$1.08
$0.22
FY 2014	FY 2015	FY 2016	FY 2017	2018	2019

80% EBITDA Margin		$0.48 to $1.44	5yr Growth in
	EBITDA/Share

TSX:ALS | OTCQX:ATUSF

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Royalty Growth Pipeline

Organic (Free) Mine

Royalty Growth

Renewable Royalty

Business Gaining

Momentum

Strong operating margins and long resource lives motivating multiple new build and expansion investments by operators = free royalty growth

New renewable energy royalty business growing fast as electricity generation transition accelerates and sector begins to recognize benefits of royalty finance offering

Ramping Up		Building	Financing		Expansion Study	Resource Stage	Discovery
	and Development
Completed Potash		New Mines in		Renewable Development		Expansion of Existing	New Build Studies	168,000 metres of
Expansions		Construction		Portfolio		Assets	drilling in 2020
Rocanville								60+ Exploration
	Voisey's Underground			Chapada		Stage Royalties
Cory
Allan		(Ni-Co-Cu)			Expansion (Cu)

Vanscoy

2.5 GW Portfolio

Gunnison (Copper)

Esterhazy

4

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PG Business Growth - Royalty Creation At Negative Cost

Altius generates mineral exploration projects for sale in		57
exchange for royalties and equity positions
		Projects
Junior Equity Portfolio Growth

			$17M	PG Net
				Monetizations
				$17M
$11M		$54M	$54M
$22M	$33M
	-$3M	-$6M		st
April 2016	April 2017	December	December	1
		2018	2019

Converted to new royalties and junior equities since 2016 market bottom

Positive cash generation in 2019

Gunnison starting up to mark first

PG created royalty to reach

production stage

Proven Equity/Royalty Investment Strategy Allows Creation of New Pipeline Royalties at Negative Cost and Provides Cash for 3rd Party Royalty Acquisitions

TSX:ALS | OTCQX:ATUSF

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Renewables Transition Momentum Growth

Megatrends driving increased electricity demand:

Electrification trends (e.g. transportation about to shift to EV) will cause demand for electricity to grow and gain market share relative to other sources of consumer energy such as fossil fuels

EV Battery $ Cost / kWh

$ Cost Parity with Internal Combustion Engine

Levelized Cost of Energy Comparison

Past the tipping point:

Within the electricity sector, renewable energy has

become the cheapest form of new generation

ESG Going Mainstream:

Lower costs, higher efficiencies and underlying demand growth coupled with a surge in ESG investment mandates creating a massive tailwind for renewable energy investments

Source: "Electrifying Insights: How Automakers can Drive Electrified Vehicle Sales	TSX:ALS | OTCQX:ATUSF
and Profitability," McKinsey - January 2017 , Lazard's Levelized Cost of
	6

Energy Analysis - Version 13.0 (November 2019), US SIF Foundation	6

Renewable Royalty Growth -Tri Global Energy Investment

• Renewable energy royalties are being generated ahead of schedule - project sales in first year represent more than half that required for full royalty vesting threshold - with remainder expected in 2020
• First royalty project, Canyon Wind (360 MW - TX), sold in October 2019 to private equity firm with operations expected to begin in H2 2021
• Woodford Wind (300+ MW - IL) sold to Copenhagen Infrastructure Partners in December 2019 with commercial production anticipated in late 2021
• TGE development pipeline has increased to over 2,500 MW (even after accounting for the 660+ MW project sales to date)

Source Company Reports

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TSX:ALS | OTCQX:ATUSF 7

Diversity

15 Producing Royalties		Low Jurisdictional Risk
Investment Grade Operators		Royalty vs. Stream Dominated

Diversified Portfolio

Steel Making

Coal 4%

Premium

Iron Ore 20%

Electricity

Generation (Coal) 14%

Zinc 3%

Copper 37%

2019

Commodity

Revenue

	Battery Metals
Potash 19%	(Ni-Li-Co) 2%
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TSX:ALS | OTCQX:ATUSF

8

Sustainability

Portfolio Aligned with Global Sustainability Trends

Macro-Trend

Fossil Fuel to Clean Energy

Conversion

Transportation Electrification

Soil Quality/Agricultural Yield

Improvements

Lower Emission Steel Making

Altius

Royalty Exposure

Coal to Renewables

Cu, Co, Ni, Li

Potash

Clean Iron Ore

Products

Subsidiary Altius Renewable Royalties Corp. ("ARR") reinvesting royalty based capital to advance more than 23 GW of potential new renewable energy projects - as our 5 GW coal generation exposure phases out to zero

Copper, which benefits more than any other metal from EV and renewable transitions, is Altius's largest royalty exposure. Royalty exposure to battery metals - Nickel, Cobalt and Lithium is growing

Altius's potash fertilizer royalties relate to a portfolio of top-tier Canadian mines that are ramping up into pre-built capacity expansions as sustainable food production needs increase

Royalty from IOC relates to high iron / low impurity concentrates and pellets that require less metallurgical coal usage in steel plants

Industry leading fundamental business growth from assets that enable the world to meet its sustainability objectives

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TSX:ALS | OTCQX:ATUSF 9

Longevity

85+ Year Revenue Weighted Life

Mine lives calculated based on current mineral inventory and 2018 throughput. Coal asset lives denote the expected plant closure and not based on reserves. The 2018 revenue weighted average mine life is based on remaining reserves inclusive of MI resources and throughput capacity.

TSX:ALS | OTCQX:ATUSF

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Durability

Operator	Mine	Commodity	Spot Price	Operating Margin
Benchmark
Lundin	Chapada	Copper	$2.59	114%
Nutrien	All Operations	Potash	$265	223%
Mosaic	All Operations	Potash	$265	258%
Vale	Voisey's Bay	Nickel	$6.01	107%
Rio Tinto	IOC	Fe Concentrate	$95	111%
Rio Tinto	IOC	Fe Pellet	$135	108%
Excelsior	Gunnison	Copper	$2.59	198%
Hudbay	Manitoba Operations	Copper	$2.59	717%

Notes:

• All amounts USD. Spot as at February 22, 2020. Spot Potash is FOB Midwest.
• Chapada margin calculated using Lundin's guidance of 2020 C1 cash costs of copper per pound (NI43-101 report October 10, 2019) after precious metal by-product credits. Chapada cash costs do not include the effects of copper stream agreements which will be a component of the copper revenue and will impact realized revenue per pound.
• Nutrien and Mosaic per tonne margins calculated by taking FOB Midwest Spot over Cost of Product Manufactured. COPM = Potash COGS for the 2019 excluding depreciation and amortization expense and inventory and other adjustments divided by the production tonnes for the period. For Mosaic, we used the 2019 four quarter average actuals cash costs of production (excluding brine) - MOP ($/tonne)
• Voisey's Bay margin calculation using SNL Modeled Cost Curve for Total Cash Cost per pound of nickel net of by-product credits.
• IOC margin based on Altius modeled $45/t cash costs for concentrate and $65/t cash costs for pellet.
• Gunnison is expected to be in commercial production in 2020. Total cash cost pe pound of copper is derived from the Base Case of the Feasibility Study dated January 16, 2017
• Manitoba Operations margin calculated using Hudbay's annual actuals year ended December 31, 2019. Cash cost per pound of copper produced, net of by-product credits.

TSX:ALS | OTCQX:11 ATUSF

11

Capital Structure

6x

5x

4x

3x

2x

1x

1. 
   2014

TSX: ALS | OTCQX: ATUSF		Research Coverage
Issued Common Shares	42.1 million		Richard Gray
Fairfax Preferred Securities	10.0 million ($100 mm)		Craig Hutchison
Basic Market Capitalization	$455 million
	Brian MacArthur
Annual Dividend	$0.20 per share
	Carey MacRury
Outstanding Debt	$109 million
			Jacques Wortman
Cash and Public Equity Holdings†	$169 million
Available Under Credit Revolver†	$85 million		Orest Wowkodaw

Leverage Ratio

Returns of Capital

6x

5x

4.9x

Share buy back

4x

$5M

Share buy back

Share buy back

$9M

$2M

3x

Share buy back

$2M

2x

1x

1.3x

Dividends

Dividends

Dividends

Dividends

$8M

Dividends

$7M

$7M

$5M

$3M

x

2014

2015

2016

2017

2018

2019

2015

2016

2017

2018

2019

Net Debt to EBITDA

Capital table values, return of capital and net debt to EBITDA numbers as of Dec 31 2019 except for market cap as of Feb 20 2020. Cash and

TSX:ALS | OTCQX:ATUSF

public equity holdings includes $22 million cash + $93 million LIORC equity value + $54.1 million project generation equity values

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Valuation

P/NAV

EV/EBITDA (2020E)

P/CF (2020E)

2.4x

27.2x

29.6x

2.0x

19.5x

1.5x

1.7x

16.8x

18.0x

18.2x

18.0x

19.6x

20.1x

20.6x

0.9x

1.1x

10.2x

11.2x

OR SSL WPM RGLD FNV

SSL

RGLD

OR WPM FNV

OR SSL

WPM RGLD FNV

Potential Re-rate Catalysts

• Increased recognition of sector leading per share business growth metrics, longest duration assets, decreasing leverage and increasing returns of capital
• New renewables royalty investment announcements
• Coal to renewables strategy execution eliminates current negative impact on investment suitability perception
• Broader portfolio sustainability attributes become recognized by ESG focused investors
• Announcements by mine operators of resource growth and mine expansion (e.g. Chapada)

Source S&P Capital IQ, Company Reports. February 14, 2020

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TSX:ALS | OTCQX:ATUSF 13

Thank You

PRODUCING

ROYALTIES

DEVELOPMENT

ROYALTIES

PROJECT GENERATION

PROJECT

RENEWABLE ENERGY

PORTFOLIO

	Flora Wood
CONTACT	Director, Investor Relations
INFORMATION	Phone: [phone]
14	Email: [e-mail]
	TSX:ALS | OTCQX:ATUSF