ADVANCE METALS LIMITED — AGM Information 2017

May 29, 2017

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Pacific American Coal Limited Annual General Meeting

ASX : PAK

30 May 2017

DISCLAIMER

This presentation has been prepared by Pacific American Coal Limited. (“PAK” or the "Company"). This presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, in whole or in part, for any purpose without prior written approval of the Company. The material contained in this presentation is for information purposes only. This presentation is not an offer or invitation for subscription or purchase of, or a recommendation in relation to, securities in the Company and neither this presentation nor anything contained in it shall form the basis of any contract or commitment.

Any offering of any of the Company's securities to Australian persons will be subject to Australian securities laws. The distribution of this document in jurisdictions outside of Australia may be restricted by law, and persons in to whose possession this document comes should inform themselves about, and observe, all such restrictions. In Australia this document is only being provided to persons who are sophisticated investors, in accordance with section 708(8) of the Corporations Act 2001 ("Corporations Act") and professional investors, in accordance with section 708(11) of the Corporations Act, or to such other persons whom it would otherwise be lawful to distribute it. This presentation is not financial product or investment advice. It does not take into account the investment objectives, financial situation and particular needs of any investor. Before making an investment in the Company, an investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances, seek legal and taxation advice as appropriate and consult a financial adviser if necessary.

This presentation may contain forward-looking statements that are subject to risk factors associated with exploring for, developing, mining, processing and sale of coal. Forward-looking statements include those containing such words as "anticipate", "estimates", "forecasts", "should", "could", "may", "intends", "will", "expects", "plans" or similar expressions. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a range of variables and changes in underlying assumptions which could cause actual results or trends to differ materially. The Company does not make any representation or warranty as to the accuracy of such statements or assumptions.

This presentation has been prepared by the Company based on information available to it as at 30 May 2017 and has not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of the Company or its subsidiaries or affiliates or the directors, employees, agents, representatives or advisers of any such party, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including without limitation, any liability arising from fault or negligence on the part of the Company or its subsidiaries or affiliates or the directors, employees, agents, representatives or advisers of any such party.

Competent Person Statement

The information in this document that relates to JORC 2012 Resources based on information compiled by Mr. Dwight Kinnes, B.Sc Colorado State University, Geology, who is a Member of a Recognised Overseas Professional Organisation (ROPO) included in a list promulgated by the ASX from time to time, being the Society for Mining, Metallurgy, and Exploration and American Institute of Professional Geologists – Cert. No. 10244.

Mr Kinnes is Principal Consultant/President of Highland GeoComputing, LLC and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration by them and to the activity which they are undertaking to qualify as a ‘Competent Person’ as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012). Mr Kinnes consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Business Overview

PAK team has experience developing coal projects

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	Corporate
Market Cap (as at26/05/17)	A$8.8M
Shares on Offer	165.31M
Options on Offer	64.89M
	Gregorach Pty Ltd	10.2%
	IPS Ltd	7.5%
Top 5 Shareholders	J Wardman & Associates	4.9%
	Rigi Investments Pty Ltd	3.0%
	Mr R. Pearce	2.9%

	Team
Geoff Hill	Chairman
Mark Lochtenberg	Managing Director
Simon Bird	Director
Paul Chappell	Director
Ian Morgan	Company Secretary
Mark Sykes	Chief Executive Officer
Dom Hill	Business Development Manager
Stephen Lau	Financial Controller

Financials		Businesses
PAK Canada Elko Exploration Coal Project Hazell Exploration Coal Project Cash Position A$2.56M(31 March 2017)
TOCC USA GCI Operating Mine – Debt Note Oklahoma Exploration Projects Colorado Exploration Project GCI Debt Note Outstanding – A$725K (US$542K) Received – A$325K (USD243K) Monthly Payments – A$38K (USD29K)
Imagine IM Functionalised Graphene Projects Imagine Intelligent Materials PAK Holding Worth – A$2.50M PAK Monthly Spend AUD 100K per month Q1-Q2 2017

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A Year in Review

Creating shareholder value

2016 Summary

Elko Coking Coal Project

Accelerated development of Elko Coking Coal Engaged Hatch Ltd to undertake 3D mine site modelling Engaged Palaris to prepare preliminary assessment report Appointment of key project personnel Commenced planning for 2017 Exploration Program

Acquired 40% of Imagine Intelligent Materials

20% via a $1.25M cash acquisition

20% via a share offer

Corporate

• Completed fund raising $2.3M - oversubscribed

• Appointed Managing Director

• Established new office and support staff

Repositioned Coal Portfolio

Finalised agreement to recover 100% of investment in GCI

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Elko Coking Coal Project

Significant foot print of metallurgical coal project

Strategic Location

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Legend Elko Hazell Exploration Project

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Elko JORC 2012 Resources (Mt) Measured 19.2 Indicated 57.0 Inferred 181.3 Total Resource 257.5 Exploration Team Highland Geo Computing Geological Consultant Silenus Resources Project Manager Nupqu Development Corp Environmental & Construction Catana Consulting First Nations Consultants Archaeological Tipi Mountain

Elko Project location Highlights

Established infrastructure Export ports with capacity Transparent mining process Large scale operating mines Known metallurgical coal products Skilled local communities

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Strategic Location

East Kootenay Coal Basin has annual coal sales of over 27Mt

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Teck Resources
Coal Mountain
The Elko exploration licenses lay
adjacent to an area known as
Flathead Ridge
The area is located approximately
26 kilometers east of the town of
Elko, British Columbia and
approximately 30 kilometers south
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The area is located approximately 26 kilometers east of the town of Elko, British Columbia and approximately 30 kilometers south of the town of Fernie, British Columbia.

Legend

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Hazel Exploration area

Elko

Operating Mine Exploration or development

All Maps - ESRI – Source NASA, USGS, NGA

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Targeting High Value Coal

High quality coking coal

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• Targeting 3 coking coal seams

• FSI ranging from 7-8

• High quality coking coal product

• Low Sulphur and ash

• Bench mark coal qualities

• Coal compares favourably with benchmark coals

• Coal tested and blended

• Coal seams 6 & 7 have been tested extensively by six Japanese steel mills

• Coal Seams Outcropping

• Coal seams have been previously mapped

Target

• Six coal seams with thickness ranging between 2.6m and 5.0m

Seams

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Coal Licence
418648
Coal Licence
418648
Canada
ESRI – Source NASA, USGS, NGA
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BC Coal Adit Quality	BC Coal Adit Quality
Adit Seam Sample thickness	Clean
	Ash VM FC S FSI
F-5 7 Seam 5.9 m	3.9 21.9 74.3 0.5 7.5
F-6 6 Seam 3.0 m	6.3 21.3 72.4 0.6 8.0
F-4 5 Seam 11.2 m	7.4 21.5 71.1 0.5 6.0
F-3 4 Seam 6.7 m	8.4 19.6 72.0 0.4 5.0
F-2 3 Seam 12.2 m	11.3 17.7 71.0 0.7 2.5
F-1 1 Seam 14.0m	10.4 18.0 71.6 0.8 1.0

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Elko Exploration Program

Allocating funds for in-ground expenditure

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Objectives

• Targeting 15 drill holes (RC and core)

• Upgrade JORC Resource Statement

• Increase in ground knowledge of coal seams

• Map central and eastern coal blocks

• Analysis of coal quality and marketing potential

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Compares favourably to peers

PAK team has experience developing coal projects

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Overview

• Elko compares favorably with other Canadian projects

• Coal Quality and Operating Costs

• Large coal resource with high quality metallurgical coal

• Open cut and underground mining flexibility

• Favourable capital intensity vs global peers

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Graphs taken from the Palaris Preliminary Assessment Report of the Elko Coking Coal Project

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Canadian Coal Products

PAK team has experience developing coal projects

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Overview

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• Low ash, sulphur and phosphorous coals

• Canadian Coking coal used by global steel makers

• Premium Hard coking coal and PCI coal

• Coals compare favourably against global peers

• Known metallurgical coal products

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Source: http://www.teck.com/media/2017-Whistler-Institutional-Investor-Conference-Jan-26.pdf
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Source: http://www.teck.com/media/2017-Whistler-Institutional-Investor-Conference-Jan-26.pdf

Figure 2.5 High CSR Canadian HCC products vs. global competitors

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Target Markets and Infrastructure

Existing infrastructure with optionality

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Existing Rail
Elko
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LOGISTICS RAIL

Road transport to rail head 20 km Rail to Port of Vancouver 1,000 km Alternative Route to Prince Rupert 2,000 km

Rail Freight Providers

• Eastbound bulk haulage agreements are available

• Bulk rail provider to Vancouver

Logistics Port

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Vancouver Ports	Capacity
Westshore	33Mt
Neptune Terminals	12.5Mt Expanding to 18.5Mt
Fraser Surry Docks	Planned Capacity 4Mt

Destination	Days Shipping Vancouver	Days Shipping Hay point
Kobe, Japan	13	11.4
Pusan, Korea	13	11.9
Shanghai, PRC	14	11.9

http://www.railcan.ca “2014 Rail Trends”

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Imagine Intelligent Materials

Graphene technology

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Overview

PAK holds 30% of Imagine Intelligent Materials

• $2.5M cost to acquire

• Raised $1.25M

• Share swap $1.25M

• Board representation – Simon Bird

Imagine Q1 $2m fund raising @$1.50 per share

• Capital used to accelerate pilot plant optimization

Imagine Signed MOU’s with off take partners

• Geofabrics

First installation of conductive geotextile technology at mine site

• Duromer

MOU signed to develop smart screens for the mining industry

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USA Portfolio

A portfolio of USA Assets – Operating and Application

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Summary of Operating Asset

• GCI Debt Note serviced

• Received – A$325K (US$243K)

• Outstanding – A$725K (US$542K)

• Monthly Payments – A$38K (US$29K)

• GCI Operations

• New contract miner on board

• Cost and production efficiencies

• Producing more tonnes

• Opened up new panels

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Property Name	Location	Status	Coal Type	JORC Exploration Target (MT)
Hartford	Oklahoma	Application	Metallurgical	87 – 117
Lafayette	Oklahoma	Application	Metallurgical	41 – 54
Howe	Oklahoma	Application	Metallurgical	59 – 94
Bokoshe	Oklahoma	Application	Metallurgical	93 – 140
Left Fork	Colorado	Application	Metallurgical	136 – 204

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Conclusion and summary

Moving forward

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Overview

• British Columbia coal projects

• Complete exploration program

• Update Scoping study with new data

• Ongoing review of investment opportunities

• Continue to review opportunities that add value

• Focus on coking coal project

• Positioned to create long term shareholder value

• Elko offers value through targeted exploration program

• Imagine offers diversification into graphene and related markets

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Partners

Partnered with recognised consultants

TECHNICAL

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LEGAL

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ACCOUNTING

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EXPLORATION AND GEOLOGICAL

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FIRST NATIONS CONSULTANTS

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