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Eagle Hill Exploration Corporation

2015 Special Shareholder Meeting

Eagle Hill Exploration Corporation is a Canadian mineral exploration company focused on the exploration and development of the high-grade Windfall Lake Gold Deposit, located between Val-d'Or and Chibougamau in Quebec, Canada. This area is known for its gold and copper production and excellent infrastructure for exploration and mining.

On June 9, 2015, Eagle Hill announced its support for a proposed transaction (“Transaction”) whereby Oban Mining Corporation (TSX: OBM) (“Oban”) will launch share exchange takeover bids for Eagle Hill, Temex Resources Corp. (TSX-V: TME), Ryan Gold Corp. (TSX-V: RYG) and Corona Gold Corporation (CSNX: CRG) to create a leading Canadian focused gold exploration and development company (“New Oban”). Under the proposed Transaction, Oban has agreed to offer Eagle Hill shareholders 10.0 Oban Shares in exchange for each common share of Eagle Hill. The offer will provide Eagle Hill shareholders with a premium of 258% to the 15-day volume weighted average price of Eagle Hill on the TSX-V ending on June 8, 2015. Additionally, each shareholder of Eagle Hill will receive five common share purchase warrants of Oban (each a “Warrant”) per common share of Eagle Hill. Each Warrant will entitle the holder thereof to purchase one Oban share at a price of $0.15 per Oban share, for a period of 36 months following the closing date. Oban will make an application to the Toronto Stock Exchange (“TSX”) to list the Warrants. Pursuant to the Transaction, existing Eagle Hill warrants will become exercisable into the transaction consideration. Oban has committed to launching the takeover bids no later than July 21, 2015, with the expectation that closing of the Transaction will occur in early August 2015. Completion of the Transaction is subject to Oban obtaining shareholder and TSX approval.  Shareholders of Eagle Hill representing 57% of the common shares of Eagle Hill have entered into lock-up agreements with Oban in support of the Transaction.

In addition, Oban has agreed, subject to TSX approval, to complete a private placement with Osisko Gold Royalties Ltd. (“Osisko”) whereby Osisko will invest up to $20 million in common shares in the capital of Oban (“Oban Shares”) at a price of $0.11 per Oban Share (the deemed net asset value per share value of Oban), provided that such investment shall not be for more than 19.9% of New Oban. If completed, the Transaction would bring together major exploration assets in Ontario and Quebec under experienced management in a well-capitalized vehicle, with over $65 million in cash and a significant global gold resource. Dundee Corporation and Osisko will be key shareholders in New Oban, by virtue of their respective existing holdings in four of the five companies involved in the combination, and Osisko’s new investment.

In April 2015 Eagle Hill published the results of a Preliminary Economic Assessment (“PEA”) for the Windfall Lake Project. The PEA outlines the design of a 1,200 tonne per day underground mine producing 106,200 ounces of payable gold annually for 7.8 years at an average total cash cost of $558/oz of gold (US$480/oz). At a base case gold price of US$1,200/oz the project has a pre-tax internal rate of return (“IRR”) of 23.6% and a pre-tax net present value discounted at 5% (“NPV5”) of $241.4 million. Initial project capital costs are estimated at $240.6 million. Eagle Hill intends to complete a pre-feasibility study for the Windfall Lake project by 2017.

The current mineral resource is estimated at 2,762,000 tonnes grading 8.42 g/t gold for 748,000 ounces in the indicated category, and 3,512,000 tonnes grading 7.62 g/t gold for 860,000 ounces in the inferred category. 1 High-grade mineralization has been identified in multiple zones, yet only a small portion of the 12,400 hectare property has been tested to date. Mineralization has been identified only 30 metres from surface in some areas and as deep as 870 metres in others, with significant potential to extend mineralization along strike and at depth. Many gold deposits in this region continue well below 1,000 metres depth.

Next steps include extending the existing ramp and taking a bulk sample, drilling both from surface and underground with the objective of expanding and upgrading the quality of the resource and testing continuity of grade, and finalizing the various studies required for a pre-feasibility study. 


1. The resource estimate was calculated by SRK Consulting (Canada) Inc. using a 3 g/t cut-off grade, assuming an underground extraction scenario with an assumed gold price of US$1,200 per ounce and metallurgical recovery of 96%, with an effective date of November 13, 2014. Inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Mineral resources are not mineral reserves and do not have demonstrated economic viability. See Cautionary Notes.