Why Ubique Mineral?

( CSE:UBQ )

Ubique Minerals is focused on the acquisition and exploration of properties that have a high potential of producing economic mineral deposits. Acquiring 90% of Past Producing Namib Lead & Zinc Mine, Namibia with the intent to restart production.

Highlight

• Acquiring 90% of Past Producing Namib Lead & Zinc Mine, Namibia
  
  • Plan to restart production
• Purchased 24.99% of the existing shareholding of Resource 500 V Ltd ("R500"), an Irish exploration company that holds 6 mineral exploration licenses and applications for 2 more licences in Namibia, Africa.
  • Recently Made Uranium Discovery
• Control past producing Daniels Harbour Zinc Project covering entire former mine site:
  
  • Ophir Gold Option Licenses
  • Daniel's Harbour
• Past producer with historical production of 7.225m tons @ 7.93% Zn
  • 2 separate exploration areas with high grade zinc potential

Namibian Projects

Namib Lead & Zinc Mine, Namibia

• acquiring 90% of the shares in Namib Lead and Zinc Mining

·        Lead-zinc mine , built in 2018-2019 and operated until April 2020.

·         put into care and maintenance due to health and safety concerns related to the Covid-19 pandemic

·         NLZM is the holder of mining license ML185 and two exclusive prospective licenses EPL 2902 and EPL 5075 that surround the Project's mine site

·         mine and processing facilities consist of an underground mine developed by trackless decline and sub-level stoping to yield 500 tonnes per day of ore.

·         The ore is fed through a conventional crushing, grinding, and floatation plant to produce zinc and lead/silver concentrates which are filtered and dried on site before

·         trucking the concentrate 70 kms to a deep water port with container handling facilities at Walvis Bay, from where the concentrate is shipped to international custom smelters.

    Project 2: Resource 500 V Ltd ("R500")

Purchased of 24.99% of the existing shareholding of Resource 500 V Ltd ("R500"), an Irish exploration company that holds 6 mineral exploration licenses and applications for 2 more licences in Namibia, Africa.

• Readers are referred to the map below which is copied from a Namibian Geological Survey Report (1992, ISBN 0-86976-258-3).

R500 has acquired exploration Licenses ("EPLs") in the Otavi Mountain Land of northern Namibia, largely covering similar geology to that which hosts the most prolific base metal mines in the history of Namibia. They include Tsumeb and Kombat. Tsumeb operated for over 100 years and produced very high grade ore of copper, zinc, lead and cadmium. Other deposits in the area that have been , mined included vanadium in the mix of metals extracted. Although Tsumeb has been mined out the smelter and surface plant is still operated as a custom processing plant. Kombat has recently been re-opened by a Canadian company Trigon Metals Inc. Tsumeb lifetime production is at least 20 million tonnes with a grade of >5% copper, 10% lead, 3% zinc and several ounces per tonne of silver. At various times additional minerals recovered included germanium and gallium. Ore reserves at the end of 1991 were stated as 1,065,000 tonnes grading 5.78% copper, 3.50% lead and 179 grams per tonne silver. (Information from: The Mineral Resources of Namibia, First Edition, 1992, Ministry of Mines and Energy, Geological Survey, ISBN 0-86976-258-3.)

The region is formed of folded sediments of the Damara Sequence with Tsumeb on the northernmost fold limb and most of the other mines in the central or southern fold limbs. Golden Deeps Company is exploring the former Nosib mine area in the central belt and recent drilling has intersected copper, lead and vanadium mineralization at shallow depths and copper - silver mineralization at greater depth according to their press release.

Work program

R500s' Exploration Licenses cover parts of the area bounded by a dashed blue line in the Figure. R500 has undertaken preliminary level exploration surveys over their EPLs and located several anomalous areas by remote sensing. The team has recently undertaken field work and geochemical surveys as the next stage of exploration.

Most of the targets identified are in the EPLs covering the southern fold belt running through the area hosting the Kombat and adjacent mines. While there has been extensive historic exploration in the western part of this area the eastern area has had less exploration as it is largely covered by a layer of more recent "Kalahari sand" which hides the underlying geology and limits the geochemical signature of buried rocks. Recent advances in geochemical methodology enable greater depth penetration and better discrimination of anomalies. The R500 geological team will shortly commence this geochemical exploration. They will be accompanied by Ubique Geologist Dr Helen Salmon.

Namibia is a very stable political jurisdiction in southern Africa and with good infrastructure

The Licences

Namib Lead & Zinc Mine, Namibia Transaction

The total purchase price to be paid to the Vendor will be as follows:

• US$1.0 million payable in cash on closing of the transaction and issuance of 10 million warrants to purchase common shares of the Company with an exercise price equivalent to the weighted average price of any coincident capital raising that is conducted as part of the transaction or, if no capital raising is undertaken, C$0.10 (the "Exercise Price") ("Upfront Payment").
• One or more quarterly payments from mining operations totaling US$10.0 million, paid from 80% of free cash flow ("Profitability Payment").
• US$5.0 million, paid in cash or shares (at the Vendor's election) after the Project has produced 47,000 dry metric tonnes of concentrate ("Contingent Payment").
• US$4.0 million payable through four convertible notes (the "Convertible Notes") issued on closing of the transaction as follows:
• US$1.0 million with a conversion price equivalent to the Exercise Price;
• US$1.0 million with a conversion price equivalent to the Exercise Price plus C$0.10;
• US$1.0 million with a conversion price equivalent to the Exercise Price plus C$0.20;
• US$1.0 million with a conversion price equivalent to the Exercise Price plus C$0.30.
• The Convertible Notes shall bear an interest rate of 6.00% per annum payable in cash annually and mature on the second anniversary of closing of the transaction. At any point before or on their respective maturity date, and at the holder's option, the Convertible Notes may be convertible into common shares of Ubique at their respective conversion price. Unless converted into common shares, all outstanding amounts payable in respect of the Convertible Notes principal and accrued and unpaid interest shall be payable in cash on their maturity date. The Convertible Notes shall rank pari passu with other convertible debentures issued by Ubique, if any.
• If the transaction does not complete due to Ubique or the Purchaser failing to satisfy certain conditions to completion that are partly or wholly within its control (e.g., shareholder vote), then a US$1.0 million break fee will be paid to the Vendor within 30 days of the transaction being terminated.
• Similarly, if the transaction does not complete due to the Vendor failing to satisfy certain conditions to completion that are partly or wholly within its control, then a US$1.0 million break fee will be paid to Ubique within 30 days of the transaction being terminated.
• The Profitability Payment and the Contingent Payment will be secured by way of a first-lien security interest over the capital of the Purchaser as well as any indebtedness of the Purchaser or NZLM owed to the Company or the Purchaser.
• Pursuant to the terms of the Purchase Agreement, the Company, the Purchaser and NLZM will be subject to certain restrictions on indebtedness, liens and other restricted payments prior to the payment in full (in cash or common shares) of the Profitability Payment and the Contingent Payment, as outlined above.
• The transaction is contingent upon approvals from the Canadian Securities Exchange and shareholders' approval.

Daniel's Harbour:

• Former producing zinc mine for 16 years to 1990 located close to infrastructure and ice free shipping port.
• Open pit mines and shallow underground operations yielded almost 8 million tons of ore with average head grade of 8% zinc and >96%
recovery to yield 65% zinc grade concentrate.
• Recent drilling programs located five zinc zones with extensions to orebodies with similar grades to historic production.
• More zones need drilling and objective is to define sufficient zone extensions to allow resource estimate of >1m tons @ 8% zinc

High Grade Zinc Potential confirmed a minimum of 3 zinc zones through drilling

Exclusive exploration database of more than 2,000 drill holes some with “ore” grade intersections

The P Zone: Intercept of 13.6 % zinc over 12.2m, including 17.43% zinc over 8.6 m  

1386 and Nose Zones:

• 2022 drilling to focus on these two zones
• focus on extending and defining dimensions for resource estimates
• Raised 1.1$M for follow-up 2,000 meters drill program
  • Extend identified zones of zinc mineralization to define dimensions for resource estimates
  • scout drill other known zone targets, including the very shallow O Zone and 2160 Zones

Accessible infrastructure for rapid development to production

Aggressive project development and acquisition of projects

Investing in significant undervalued projects requiring technical and financial upgrade 

Situated in pro mining and growing jurisdiction Newfoundland

Daniels Harbour Zinc Project:

• Owns three mineral licenses covering more than 6 sq. kms, in two blocks
• Owns another four mineral licenses covering more than 10 sq. kms. under option from MinKap Resources Inc. ("KAP") (now Ophir Gold Corp.)
• Focused on further enhancing the project through completing to earn in/option agreement with Ophir Gold
• Results of the 2021-2 program expected in Q2 2022
• Historical: 7,000,000 tonnes averaging 7.8% zinc mined from the Daniel's Harbour mine

Ubique owns three mineral licenses located in the Daniel's Harbour area in Newfoundland, Canada, covering more than 6 sq. kms, in two blocks and has another four mineral licenses covering more than 10 sq. kms. under option from MinKap Resources Inc. ("KAP") (now Ophir Gold Corp.). The Ubique licenses cover at least three zones of zinc mineralization

The P Zone

• Completed most of its 2017 2018 and 2019 drilling programs
• Highlight true width intersection of 13.6% Zinc over 12.2 metres including 17.43% Zinc over 8.6m
• 28 drill holes in this target area with zinc intersections with greater than 4% zinc over at least 2 metres true widths

The KAP Option licenses

• Cover many areas of the historic mining activity and research has already identified five high priority drill target areas
• Historic drilling intersected zinc mineralization, including a true width interval of 5.73m of 8.96% zinc in the 1386 zone target.

Three mineral licences located in the Daniel's Harbour area, covering more than six square kilometres in two blocks The KAP Option licenses cover many areas of the historic mining activity and research has already identified five high priority drill target areas where historic drilling intersected zinc mineralization that was never followed up or mined

Two of these drill target areas have been relocated (the 1386 and Nose Zones), the historic drill holes identified and new holes drilled confirming the location and grade of mineralization in 2019. The 2021 drilling program will concentrate on these two zones, extending them and starting to define dimensions for resource estimates.

Soil sampling undertaken on the Ubique East Mineral License where sampling in 2018 identified a zinc anomaly which was expanded by more sampling in 2019 - 2020. The limits of the anomaly were not defined and the additional sampling has been undertaken in 2021 to better define the anomaly. Over 300 samples have been sent to a laboratory for analyses.

Plans for Diamond Drilling Program

• The drilling will target the Nose Zone and 1386 Zone on the KAP Option licenses
  • extend those identified zones of zinc mineralization

Both zones are open to extension updip to the northeast and downdip to the southwest.

Some 2,000 meters of drilling is planned to extend each of these zones in both directions

 Extend identified zones of zinc mineralization to define dimensions for resource estimates

P Zone

The initial diamond drilling program in 2017 intersected zinc mineralization in six of the nine holes drilled including hole UM-4-17 with an exceptionally high grade interval averaging 13.6% zinc over 12.2 metres, including individual 0.8 metre assay intervals as high as 35% zinc. A complete summary of the results of the drill holes is given below.

Three of those drill holes were targeted at an interpreted trend of mineralization extending north from the mined out area of the P Zone. They all intersected altered, brecciated rocks, typical of those hosting zinc mineralization in the former mine area elsewhere but none revealed zinc values suggestive of a deposit. The other six holes were drilled to test an interpreted easterly trend of mineralization extending east from the mined-out area of the P Zone. These were all successful in intersecting zinc values suggestive of a continuous deposit. This trend has been named the P-East Zone and will be one of the targets for the 2018 drill program. Other targets include the P-North Zone and the Muddy Pond Zone where historic, wide-spaced diamond drilling interested the same favourable host environment as the P Zone.