Cadillac Ventures Inc. Due Diligence Report

Ticker Symbols: CDC (Canada) & CADIF(USA)

Stock Prices: $0.03 CAD & $0.00334 USD

Common Shares: 90,721,266

Options: 4,685,000

Insider Holdings: 7,129,829 or 8%

Institutional Holdings: 39,705,385 or 44%

Note: Information Circular and Proxy recently came out on Sedar. No rollback will occur.

3 Assets owned: 

1) 100% Ownership of Thierry Copper Deposit (322 Million lbs of Copper M&I & 538 million inferred)

2) 51% Ownership of Burnt Hill property: 8.99 million lbs of Tungsten & 163 million lbs of Molybdenum M&I. Noront Resources owns remaining 49% with a deal for CDC to buy their stake

3) Kirkland Lake/Grenfell Gold Property (Sold to ARA.V but CDC retains a 2% NSR). ARA received a major investment from Sandstorm on January 14th 2020. 

In December 2019, a deal was struck between Cadillac and NFR to push the Thierry project forward. This deal could finance CDC’s purchase of NOT’s 49% of Burnt Hill. Sandstorm News: : https://finance.yahoo.com/news/cadillac-ventures-signs-earn-option-220500974.html

Most recent presentation: http://www.cadillacventures.com/i/misc/CDC-June-2017.pdf

Thierry 43-101 Report: http://www.cadillacventures.com/i/pdf/43-101-Positive-Preliminary-Economic-Assessment.pdf

Burnt Hill 43-101 Report: http://www.cadillacventures.com/i/pdf/BurntHill_NI43-101-2014.pdf 

JV Partner website: https://www.northernfoxresources.com/

JV Partner financing (Finished late 2018 for $4 million): https://static1.squarespace.com/static/5a283326692ebe66d38d74ed/t/5aefc3d02b6a281d80d3cca9/1525662675141/Northern+Fox+Greensheet+Q2+2018.pdf 

Sandstorm investment in ARA.V where CDC owns a 2% NSR on a gold property: https://finance.yahoo.com/news/avalon-investment-holdings-announces-closing-130000367.html

Here is the 45 year historic Copper price chart. Theirry was in production in the 1980’s when copper prices were below $1 a lb, today we sit around $2.70. Even with inflation, the asset is minable today and can generate a profit. Link: https://www.macrotrends.net/1476/copper-prices-historical-chart-data

All numbers below can be found on Sedar (Most recent quarterly filing in November)

Financials

ASSETS

Cash: $75K Advance (December deal signed JV deal For $300k + Shares & $1.25 Mil Note)

Short Term Investments: $30,046

Accounts Receivables: $52,276

Marketable Securities: $279,120

Restricted Cash: $401,176

Marketable Securities (non current): $600,000

Property Plant & Equipment: $29,694

Exploration & Evaluation Assets: $18,177,922

Total Assets: $19,570,234

LIABILITIES

Accounts Payable: $1,327,327

Bank Overdraft: $3,344

Convertible Debenture: $519,329

Decommissioning Provision: $452,335

Total Liabilities: $2,302,335

3 Month G&A Expenses: $98,127

6 Month G&A Expenses: $189,618

MD&A Highlights From Last Quarter

Description of Business 

Cadillac is a development focused exploration Company and was incorporated on October 19, 1995. Cadillac has two main Canadian exploration projects located in regions that have been historically active. The Thierry property is located in north-western Ontario adjacent to the town of Pickle Lake which includes the past producing Thierry mine which was last operated by UMEX and shut down in 1982 due primarily to the decline in the price of copper. The Burnt Hill property is a 51% owned tungsten tin property located outside of Fredericton, New Brunswick.

Exploration and Evaluation Assets

Thierry Property 

In January 2010, the Company acquired Richview Resources Inc. through the amalgamation of Richview with a wholly owned subsidiary of Cadillac pursuant to a three-cornered amalgamation. Pursuant to the amalgamation Cadillac acquired the Thierry property in north-western Ontario adjacent to the Town of Pickle Lake which included the past producing Thierry mine which was last operated by UMEX and shut down in 1982 due primarily to the decline in the price of copper. Outside of the Thierry underground mine area the eastern component of the property encompasses a project referred to as K1-1 which lies three kilometers east of the Thierry mine. The Thierry property now comprised of 27 mining leases encompasses a land position of 7,015 hectares and 3 unpatented contiguous claims totalling 750 hectares.

Earlier in 2011 Cadillac completed two drilling programs consisting of sixteen drill holes on the shallow K1-1 deposit designed to confirm the historic data calculation and facilitate an N1 43-101 compliant resource calculation at K1-1. Later in 2011 Cadillac completed a further exploration program on the K1-1 deposit utilizing two diamond drills rigs and completing a total of twenty-six drill holes. The purpose of this drill program was to upgrade and expand the mineralization and models at K1-1 by infill drilling within the area of the pits and adjacent to the modeled pits, as well as targeting areas under the pits and along strike in the exploration program. Cadillac reported that the assay results of samples from the twenty six holes drilled (see press releases dated January 18, 2012, January 25, 2012 and February 2, 2012) enabled Cadillac to further update the initial K1-1 resource estimate. P&E Mining Consultants completed this mineral resource estimate which was based on a combination of historic drilling by previous project operators and the more recent drilling by Cadillac who reported that the updated inferred mineral resource at K1-1 had been estimated within an economically optimized Whittle pit shell consisting of 53,614,000 tonnes containing 0.38% Copper and 0.10% Nickel using an NSR cut off rate of $ 11/tonne (see press release dated February 14, 2012). The increase in this updated inferred resource over earlier reported inferred resource estimate was due to a number of factors including the results from the twenty-six holes drilled by Cadillac, an increase in the trailing average metal prices, lower projected operating costs at K1-1 which have been derived from a conceptual combination of operations at the K1-1 open pit deposit and the Thierry underground deposit and the inclusion of additional UMEX data not considered earlier. Cadillac subsequently completed a NI 43-101 compliant Technical Report and Resource Estimate which was filed on SEDAR (www.sedar.com) in March 2012. Mr. Brian H. Newton P.Geo, of Billiken Management Services Inc. is the qualified person pursuant to the requirement set out in National Instrument 43-101 has reviewed and approved the technical information above on behalf of the Company. The potential quantity and grade set out in the information above is conceptual in nature. In addition, there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Please see 43-101 report link above for all information regarding this property.

Most recent update regarding Thierry:

On December 9, 2019, the Company announced it signed an Earn-In Option Agreement with NFR. The agreement related to Cadillac's 100% interest in the Thierry Mine Project. The terms of the agreements are as follows: (i) Within 90 days (by March 9, 2020) NFR will pay a previously agreed upon $300,000 to Cadillac ($75,000 of which has been advanced) following financing of NFR (NFR Financing) to have the right to earn a 51% interest in the property; (ii) NFR will issue 10,000,000 NFR shares to Cadillac, subject to regulatory approvals, within 60 days following the NFR Financing; and (iii) NFR will issue to Cadillac a $1,250,000 not secured by a first charge against NFR's interest in the property. The note will then be retired proportionately to work expenditures on the property as follows: • 30% ($375,000) will be retired on the completion, within 12 months of the NFR Financing closing date, of the $1,250,000 work program appended to the agreement; • 40% ($500,000) will be retired on the delivery of a Feasibility Study by NFR to Cadillac within 24 months of the NFR Financing closing date; and • 30% ($375,000) will be retired on the earlier of acceptance of an Environmental Study or 36 months from the NFR Financing closing date. Should the above terms in any of (i), (ii) or (iii) above independently not be met, then the option shall be null and void. On completion of the 51% earn-in, NFR will have the option to earn a further 10% interest by spending a further $2,000,000 over 2 years. After a 61% interest is earned by NFR, a formal joint venture agreement will be drawn up between the Cadillac and NFR.

Burnt Hill 

The 51% owned Burnt Hill tin, tungsten and molybdenite project acquired by Cadillac in 2008 located near Fredericton, New Brunswick is one claim block covering more than 10,000 hectares. The remaining 49% interest is held by Noront Resources Inc. During the prior year Cadillac announced that it has amended and restated the option agreement with Noront regarding the acquisition of Noront’s remaining 49% interest in the Burnt Hill Tungsten project. This Project includes both a mine site with a decline in place which was previously operated in the 1980’s to a pilot plant stage and several separate projects, based upon known historic showings (Tin Hill, Todd Mountain, McLean Brook and Two and a Half Mile Brook).

In July 2013, Cadillac announced the results of their multi-year (6 year) exploration program as contained in an updated, independently produced, resource statement on the Burnt Hill project, prepared by Southampton Associates Inc. The technical report was filed on Sedar.com on August 29, 2013. Southampton estimated an indicated resource of 1,761,000 tonnes averaging 0.292% WO3, 0.007% MoS2 and 0.008% SnO2 as well as an inferred resource of 1,520,000 tonnes averaging 0.263% WO3, 0.008% MoS2 and 0.005% SnO2 using a cut-off grade of 0.07% WO3 in open pit and 0.16% WO3 in underground mining. 

During the prior year Cadillac announced that it has amended and restated the option agreement with Noront regarding the acquisition of Noront’s remaining 49% interest in the Burnt Hill Tungsten project. Once all milestones and/or date sensitive payments are made, Noront will receive an aggregate of $1.8 million through a combination of cash and shares for their 49% interest over the course of 3.5 years (see press release dated September 27, 2017). Under the terms of the agreement Cadillac then made an initial payment of $ 50,000 in cash and issued 1,000,000 common shares of Cadillac valued at $ 50,000 to Noront. In April 2018 Cadillac made the second of the three payments provided for under the amended and restated option agreement paying $ 75,000 in cash and issuing 1,500,000 common shares of the Company to Noront valued at $ 45,000. The remaining payment for the 49% interest became payable on the earlier of completion of a pre-feasibility study on the project and March 26, 2019. The payment is currently in discussion with Noront regrading the remaining payment. No significant work of a material nature has, as yet, been subsequently carried out on the property. Cadillac is presently pursuing solutions which will permit the recommencement of activities at Burnt Hill.

Kirkland Lake/Grenfell Gold Property 

The Kirkland Lake/Grenfell Gold Property was acquired by Cadillac as part of its acquisition of Richview Resources Inc. in 2010. The property is located west of the town of Kirkland Lake, Ontario, within four kilometres of the producing Macassa Mine. Richview had previously carried out limited work on the property which it did not pursue. During 2014 Cadillac entered into an earn-in option agreement with Anconia Resources Corp. whereby Cadillac granted an option to Anconia to acquire up to a 100% interest in the Kirkland Lake/Grenfell Gold Property. Under the terms of the agreement Anconia acquired a 60% interest in the property during fiscal year 2016 having completed agreed milestones. In April 2017 Anconia exercised its option to acquire 100% ownership interest in the property. Anconia issued 5,000,000 million common shares to Cadillac valued at $ 150,000 to acquire the remaining 40% of the property. Cadillac will retain a 2% net smelter return royalty on the property, of which Anconia is entitled to purchase 1% at any time up to 2 years after the commencement of commercial production, for $1,000,000.