Delivering a New Source of Gemstones to the World

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Delivering a New Source of Gemstones to the World

www.truenorthgems.com
TSX-V TGX
Investor Presentation
January 2015
2
Cautionary Statement

• The information contained in this document is
  proprietary information of True North Gems Inc.
  (the Company). It is the property of the Company
  and shall not be used, disclosed to others or
  reproduced without the express written consent of
  the Company. If consent is given for
  reproduction in whole or in part, this notice
  shall appear in any such reproduction.
• This document contains forward-looking
  information or forward-looking statements within
  the meaning of certain securities laws, including
  provisions of the Securities Act (Ontario) and
  the provisions for safe harbour under the United
  States Private Securities Litigation Reform Act
  of 1995 concerning anticipated developments and
  events which the Company has a reasonable basis
  to believe may occur in the future. These
  forward-looking statements are based on
  projections, expectations and estimates as of the
  date of this document. Forward-looking
  statements are provided for the purpose of
  providing information about management
  expectations and plans relating to the future.
  All of the forward-looking statements made in
  this document are qualified by these cautionary
  statements and those made in other filings with
  the securities regulators of Canada.
• Forward-looking statements include, but are not
  limited to, statements with respect to the future
  price of rubies and other gemstones, the
  estimation of mineral resources and reserves, the
  realization of mineral resource estimates, the
  timing and amount of estimated future production,
  costs of production, capital expenditures, costs
  and timing of the development of new deposits,
  timing of completion of pre-feasibility studies,
  success of exploration and development
  activities, permitting time lines, currency
  fluctuations, requirements for additional
  capital, government regulation of exploration
  operations, environmental risks, title disputes
  or claims, completion of acquisitions and their
  potential impact on the Company and its
  operations, limitations on insurance coverage and
  the timing and possible outcome of pending
  litigation. In certain cases, forward-looking
  statements can be identified by the use of words
  such as plans, expects or does not expect, is
  expected, budget, scheduled, estimates,
  forecasts, intends, anticipates or does not
  anticipate, or believes, or variations of such
  words and phrases or statements that certain
  actions, events or results may, could, would,
  might or will be taken, occur or be achieved.
• Forward-looking statements involve known and
  unknown risks, uncertainties and other factors
  which may cause the actual results, performance
  or achievements of the Company to be materially
  different from any future results, performance or
  achievements expressed or implied by the
  forward-looking statements. Such factors include,
  among others risks related to the exploration
  and development of mineral properties actual
  results of current exploration activities
  current global economic conditions conclusions
  of future economic evaluations changes in
  project parameters as plans continue to be
  refined environmental risks future prices of
  rubies and other gemstones currency
  fluctuations possible variations in ore
  reserves, resources, grade or recovery rates
  failure of plant, equipment or processes to
  operate as anticipated accidents, labour
  disputes and other risks of the mining industry
  risks related to joint venture operations delays
  in obtaining governmental approvals or financing
  or in the completion of development or
  construction activities and those factors
  discussed in the section entitled Risk Factors in
  the annual information form as required by the
  regularity authorities.
• Although the Company has attempted to identify
  important factors (which it believes are
  reasonable) that could cause actual actions,
  events or results to differ materially from those
  described in forward-looking statements, there
  may be other factors that cause actions, events
  or results not to be as anticipated, estimated or
  intended. There can be no assurance that
  forward-looking statements will prove to be
  accurate, as actual results and future events
  could differ materially from those anticipated in
  such statements. Accordingly, readers should not
  place undue reliance on forward-looking
  statements. Such statements are based on
  managements best judgment based on facts and
  assumptions that management considers reasonable,
  which may prove to be incorrect, including but
  not limited to assumptions about general
  business and economic conditions interest rates
  and foreign exchange rates market competition
  the availability of financing changes to tax
  rates and benefits the Companys costs of
  exploration, the ability of the Company to
  attract and retain skilled employees and ongoing
  relations with Company employees and business
  partners. The Company makes no representation
  that reasonable business people in possession of
  the same information would reach the same
  conclusions. Other than as specifically required
  by law, the Company undertakes no obligation to
  update any forward-looking statement to reflect
  events or circumstances after the date on which
  such statement is made, or to reflect the
  occurrence of unanticipated events, whether as a
  result of new information, future events or
  results or otherwise.

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Greenlandic Ruby Producer

• True North Gems Inc. with shares trading on the
  TSX Venture Exchange under the symbol TGX
• Dedicated to the exploration and development of
  coloured gemstone deposits
• Committed to the realization of shareholder value
  through development of the beneficially sourced
  commercial ruby mining operation, in partnership
  with the people of Greenland
• Key business attributes
• Core asset the Aappaluttoq Ruby-Pink Sapphire
  Deposit in Greenland
• Commencement notice for construction issued
  September 23, 2014
• Exploitation Permit granted March 2014
• Ruby and pink sapphire exploration inventories
  offer near term revenue and short term market
  penetration
• Confirmed 9 year mine life with expansion
  potential
• Potential to penetrate 10 of the world ruby
  market of US 2 Billion annually
• Excellent management and board advisors with
  successful and broad experience in all facets of
  the coloured gemstone business

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Corporate Snapshot
Capital Structure
Issued and Outstanding 297,232,049
Warrants 9,313,990
- avg. strike price 0.10
Options 19,350,000
- avg. strike price 0.13
Fully Diluted 325,896,039
Share Price (Jan 30) 0.155
52-week High/Low 0.17/0.06
Market Cap (Jan 30th) 46.5 million
Owned by Board/Mgmt 8 million (2.7)
Other Insider(s) 36.9 million (12.4)
Historical Trading Price Volumes
Reserves Resources Ownership Tonnes Corundum ct/t Attributable ct
Indicated
Aappaluttoq 100 189,150 1,567 296,330,000
Inferred
Aappaluttoq 100 77,160 1,417 109,350,000
The Mineral Resource include Ruby and Pink Sapphires which are the chrome saturated versions of corundum The Mineral Resource include Ruby and Pink Sapphires which are the chrome saturated versions of corundum The Mineral Resource include Ruby and Pink Sapphires which are the chrome saturated versions of corundum The Mineral Resource include Ruby and Pink Sapphires which are the chrome saturated versions of corundum The Mineral Resource include Ruby and Pink Sapphires which are the chrome saturated versions of corundum
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Management Team

• Nicholas Houghton, President CEO - Accredited
  Gemologist with 30 years of international
  experience in the jewellery manufacturing and
  gemstone exploration industry. Member of Ethics
  Committee for the International Coloured Gemstone
  Association.
• Bent Olsvig Jensen, Managing Director Greenland -
  15 years experience practicing management and
  negotiations with both public and private
  institutions in Greenland. Vast experience in
  cooperation with the Greenlandic authorities at
  all levels, and essential knowledge and insight
  on operations management in Greenland.
• Jens B. Frederiksen, VP, Operations Greenland
  over 23 years experience in the police force and
  has more than 18 years experience in practicing
  management in puplic institutions and political
  organisation. He has been member of the
  Parliament of Greenland for the last 9 years. He
  has in that period been Vice Premier and Minister
  for Housing, Infrastructure and Transport in four
  years. Frederiksen has vast experience in
  security, logistic and personell management. He
  has essential knowlegde and insight in societal
  matters in Greenland and cooperation in
  international affairs.
• Ronald Hall, VP Engineering - 35 years of
  diverse industry experience in management,
  operation, evaluation, and design of global
  mining projects. Former Partner and VP of Mining
  at Wardrop Engineering Inc. involved in
  large-scale expansion and growth within the
  companys Canadian operations, and successful
  opening of international branches in China,
  Chile, Brazil, Hong Kong and Australia.
• Jacqueline Tucker, CFO - Qualified Chartered
  Accountant with 30 years of public practice
  experience as an auditor and advisor to public
  companies. Member of the Alberta, Ontario, and
  British Columbia Institute of Chartered
  Accountants.
• Andrew Fagan, Project Manager - Diamond and
  gemstone geological consultant with B.Sc. (Hons)
  and Master of Science degrees in gemstone
  geology. Fellow of the Geological Society of
  London and Chartered Geologist (C.Geol.).

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Board of Directors

• Robert Boyd, Director, Chairman - Mining
  executive with more than 35 years experience in
  exploration, executive-level management,
  corporate finance, and corporate governance.
• Nicholas Houghton, Director, President CEO -
  Accredited Gemologist with 30 years of
  international experience in the jewellery
  manufacturing and gemstone exploration industry.
  Member of Ethics Committee for the International
  Coloured Gemstone Association.
• Andrew Lee Smith, Director - Professional
  Geologist with 25 years of experience
  successfully exploring, developing and operating
  North American base and precious metals mining
  and gem projects.
• John Ryder, Director - 30 years of experience in
  worldwide mineral exploration.
• William Anderson, Director - Geologist and
  retired mining executive with over 40 years
  experience in exploration and operations.
• David Parsons, Director - Vice-President,
  Insurance at Goldcorp Inc. responsible for
  corporate risk, including mining operations loss
  control, business continuity planning and
  insurance.
• Peter Friedmann, Director - Broad spectrum of
  knowledge in both the private and public business
  sectors, and is currently a principal of a
  venture capital company investing in technology
  driven companies.

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Advisory Board

• Raymond N. Simpson - 20 years of experience in
  the diamond industry. Currently an Executive
  Vice-President of Dominion Diamond Corp.,
  formerly known as Harry Winston Diamond
  Corporation. Extensive experience in a variety of
  roles ranging from mine resource evaluation to
  supply/demand forecasting and consumer marketing.
• Warren Boyd - Highly experienced and respected
  geologist and gemologist with 25 years of
  experience. Currently serves as Ambassador to
  Canada for the International Coloured Gemstone
  Association (ICA), and rough diamond value to
  various companies and Canadian Government
  departments including the RCMP and Canada Border
  Services.
• Rock Lee - Founder and Chairman of China Stone
  Ltd., a company renowned for high precision
  cutting and polishing of precious stones with
  factories in Thailand and China.
• Graham Nicholls - 25 years of management
  experience in the resource sector. Specialist in
  strategic planning, gemstone marketing, supply
  chain management, aboriginal and community
  relations, and external affairs.
• Wilson Yuen - 30 years experience in the
  coloured gemstone industry, and Founder and
  Managing Director of Able Lapidary and Jewelry
  Ltd. Expertise includes developing joint ventures
  to promote coloured gemstones and target markets
  in Europe, United States, Japan, and most
  recently in China. Serves as President of the
  International Coloured Gemstone Association (ICA)
  and is a member of Hong Kong Accreditation
  Service (HKAS) on gemstone testing.

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Aappaluttoq Ruby Project

• Location Aappaluttoq, Greenland (200m
  elevation), 150 km south of the capital of Nuuk,
  20 km southeast of the community of
  Qeqertarsuatsiaat.
• Mineralization Chrome Rich Corundum (Ruby and
  Pink Sapphire rough form a high percentage of the
  corundum resource)
• Corundum Deposit Type Hard Rock
• Exceptionally high grade, simple mining methods
• Predictability of grade and geological expansion
• Only 43-101 compliant deposit in the world
• Extraction Methods Crushing, Optical Sorting
  and DMS
• Corundum is hard host minerals are soft
• Upgrading methods include hand cob, optical
  sorting, attrition milling and caustic wash
• Finished Product Consistency in quality,
  colour, calibration and long term supply
• Sales of rough and polished goods
• A long term source of clean ruby that the market
  needs

Aappaluttoq Ruby Project
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Aappaluttoq Mine
Current 9-Year Pit(Pink area in opposite image)
Exploration upside delineated from existing
drilling
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Pit Design
Photo source LNS Rana Gruber Norway
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Corundum Grade Primary Pit
Non-compliant Geological Structures in Red
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Environmental Impacts
Present
After nine (9) years of operation
After closure of the mine
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True North Gemstones
Rough and Polished
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Ruby Exploration History

• Company announces first Resource Estimate
• Draft EIA is submitted for inclusion in the
  Exploitation Licence application
• Initial SIA meetings are held
• New Managing Director is appointed
• Draft Aappaluttoq Exploitation Licence is
  formally filed with Bureau of Minerals and
  Petroleum (BMP) - June 13, 2011

• Company enters into Public Hearing Process from
  Jun. 7 - Sept. 12 following acceptance of
  Exploitation Permit application
• Company signs an Option related agreements with
  LNSG
• White Book is submitted illustrating solutions
  to concerns raised in Public Hearing Process
• Negotiations for Impact Benefit Agreement (IBA)
  and Royalty begin
• On-site ground engineering is completed, all
  infrastructures are surveyed marked out ready
  for initiation of construction upon granting of
  mining licence

• Primary objective of field season was to collect
  data to produce an independent preliminary
  economic assessment report (PEA) for Aappaluttoq
• A total of 574kg of ruby pink sapphire
  concentrate was recovered
• Initiation of environmental baseline study

• Field operation is downsized due to financial
  markets
• Program focuses on environmental baseline work
• 2008 bulk sample is shipped from site to
  processing facility in Canada - ready for
  flowsheet development other engineering work
• 2007-2008 core re-logged

• High-grade mini-bulk samples are collected from 5
  ruby pink sapphire occurrences
• Aappaluttoq (Big Red) is discovered. The
  multi-crystalline specimen is extracted and
  carved into Kitaa Ruby

2004
2005
2006
2007
2008
2010
2013
2014
2015
2009
2011
2012

• 30-Year Exploitation Licence granted by
  Government of Greenland effective March 10, 2014
• Company continues with IBA negotiations
• Mine environmental monitoring, subsequent closure
  plan and advanced process engineering design are
  being finalised

• True North begins first field season in Greenland
• 3 tonne mini-bulk sample is extracted from
  Siggartartulik
• A further 5 ruby occurrences are located in the
  district Ruby Island, Upper Annertusoq, Lower
  Annertusoq, Qaqqatsiaq and Qaqat Aqulerit

• Two 30 tonne samples are collected from Kigutilik
  Aappaluttoq - the best occurrences known to
  date
• Regional scale mapping prospecting identifies
  an additional 11 corundum occurrences, bringing
  total to 29 ruby pink sapphire showings

• Independent rough cut stone valuation reports
  are completed on 1/8th concentrate split sample
  from 2006 Aappaluttoq bulk sample
• Core-drilling targets mineralization below 2007
  drill defined area
• 120 tonne bulk sample is removed from Aappaluttoq
  to better define grade continuity mineralization

• Management technical team changes
• Ground engineering processing flowsheet
  development advances significantly
• First ground magnetic geophysical exploration
  grids are completed
• Greenlandic Feasibility Study, Social Impact
  Assessment (SIA) Environmental Impact
  Assessment (EIA) are completed

• Engineering processing plant design continues
• Final changes to draft exploitation licence are
  submitted to the BMP
• Ruby Track software is developed
• Translations of key documents are completed
• Danish Greenlandic websites launch as part of
  ongoing Corporate Social Responsibility

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Operations Strategy

• To become one of the Worlds leading coloured
  gemstone production and exploration companies.
• Our sustainable operations will produce
  beneficially sourced and fully certified coloured
  gemstones for the Worlds most prestigious
  jewellers.
• The ability to expand upon production will be
  initiated demand grows.

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Strategic Growth Plan

1. Achieve Full Production at Aappaluttoq-
   Aappaluttoq will be cornerstone of operations-
   Contains an indicated resource of 296 million
   carats of corundum within current pit and an
   initial mine life of 9 years
2. Expansion of Near Mine Resources- The deposit
   hosts a further 109 million carats as an inferred
   resource- Additional ruby bearing rock is known
   to occur down-dip, below the current mine-pit
   design- Near pit exploration will be initiated
   during construction of mine
3. Greenland Regional Exploration- Over the last 10
   years the Company has completed extensive
   regional exploration within the Fiskenaesset
   District (SW Greenland)- Company has identified
   a further 68 localities where corundum
   mineralization exists at surface within the 100
   owned exploration licences
4. Worldwide Exploration- Company continues to
   evaluate the gemstone projects within its current
   worldwide exploration portfolio- The majority of
   these lie within Canada and have the potential to
   discover new gemstone districts similar to those
   owned by the Company on SW Greenland
5. Acquisition- Currently numerous small
   gem-producing mines around the world. Majority of
   these mines are run by small private companies
   that would benefit from the Companys exploration
   and development expertise- Acquiring these
   producing mines would bring new assets into the
   Companys portfolio, create value for
   shareholders, and expand the Companys exposure
   to the Market.

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Joint Venture Agreement

• In August 2013, True North announced the signing
  of an Option and related agreements with LNS
  Greenland A/S (LNSG) allowing them to earn 20
  of Class A shares of True North Gems Greenland
  A/S (TNGG) through a 23 million US financing
  package for infrastructure and investment in the
  project.
• In September 2014 LNSG increased their possible
  earn in to 27 of the issued and outstanding
  Class A shares of TNGG by increasing their
  financing to US31 million US for infrastructure
  financing and investment.
• The five individual agreements lay out the
  strategic partnership structure for the future
  construction and operation of the Aappaluttoq
  Ruby Project

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Exploitation Licence Application Process

• Submission of draft EIA/SIA Technical
  Documents
• Company Information Meetings
• Formal Public Hearings
• Submission of White Book, final EIA/SIA
  Technical Documents
• Royalty Negotiation
• Approval by Government Granting of
  Exploitation Licence
• IBA Negotiation Completed
• Supplemental Construction Permits Granted

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Exploitation and Closure Plan, and IBA

• Exploitation and Closure Plan
• establishes the framework for the construction of
  mine facilities, production and site reclamation.
  
• covers workers' health and safety, environmental
  protection, and project infrastructure, while
  also outlining other requirements.
• IBA (Impact Benefit Agreement)
• Ensures all Greenlandic communities and the
  economy as a whole will benefit from the
  Aappaluttoq mine.
• It is a commitment by the Company to bring direct
  employment and training

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Signing of Aappaluttoq Licence
Nick Houghton, President CEO
Bent Olsvig Jensen, Managing Director Greenland
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RubyIndustry
Ruby diamond ring, by Chaumet featuring a ruby
weighing 32.08 caratsPrice realized 6,600,000
Ruby diamond Van Cleef Arpels ringPrice
realized 4,226,500
Ruby diamond Camelia flower brooch by JARPrice
realized 4,270,000
Ruby and Diamond Ring, featuring the Graff ruby
weighing 8.62 carats Price Realized 8,600,000
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Record Breaking Ruby Prices

• April 12, 2005 Christies New York sale, an
  8.01 carat oval-cut Burmese ruby sold for
  2,200,000, setting a world auction record price
  for a ruby at 274,656 per carat
• February 15, 2006 Lawrence Graf paid a record
  425,000 per carat for an 8.62ct Burmese ruby at
  Christies St. Moritz auction
• 2007 2010 due to depressed market conditions
  and ensuing lack of material in 2008, there were
  no major ruby sales, however by 2010 prices began
  to climb to record levels
• December 13, 2011 Christies New York auction,
  in which an 8.24ct ruby and diamond Van Cleef
  Arpels ring belonging to Liz Taylor sold for
  4,226,500, fetching a record price of 512,925
  per carat
• May 14, 2012 Christies International in
  Geneva, a new record auction was set with the
  sale of a ruby and diamond ring from the
  collection of Brazilian-born philanthropist Lily
  Safra for 6,600,000. Also sold in the auction
  was a ruby and diamond Camelia flower brooch by
  JAR for 4,270,000
• 2012 Ruby prices continue to climb with a 6.04
  Burmese ruby by Etcetera Limited selling for
  551,000 per carat, or 3.3 million
• In November 2014, the Graff ruby returned to the
  Christies Geneva jewellery auction, this time
  selling for 997,700 USD per carat, or 8.6
  million. The sale of the Graff ruby has set a
  record not just for a ruby, but for a ruby price
  per carat.

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Financial Projections

• Aappaluttoq Project Production Schedule and
  Economics

Base Case
Base Case as per NI 43-101 compliant
Pre-Feasibility Study issued June 6, 2011
Economic Upside from Base Case
Economic forecast is a fully independently
assumption based upon research conducted by the
analyst and interjected into the pre feasibility
study numbers, this was not complied by the
Company.
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Industry Highlights

• Global ruby market size is approximately US2.1
  billion
• Global pink sapphire market is approximately
  US58.8 million
• Global jewellery sales are poised to grow at 4.6
  year-on-year to touch US230 billion in 2015
• India and China together will emerge as a market
  equivalent to US market by 2015
• With the collective action, the industry has the
  potential to grow to US280 billion by 2015 at a
  CAGR of 6.7
• Source MVI Marketing

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Sales and Marketing

• All manufacturers look for consistency in both
  quality and availability for their product. We
  will be mining from a host deposit and can
  guarantee all clientele, both for rough and
  polished, these two highly important factors.
• Who needs the rubies?
• High-end watches, micro pave jewellery, large
  chain stores, and online sellers all need
  guaranteed supply.
• True North Gems will be the only ruby and pink
  sapphire producer that can consistently guarantee
  this.

Jewellery - Roberto Demeglio
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Looking Forward
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Keys to Unlock Potential

• 2015 Commencement of production
• Sale of inventory already on-hand
• Marketing and cash-flow from initiation with
  pre-ordered polished stones
• Working jointly with the Greenland Government to
  bring worldwide awareness to the new source of
  certified rubies and pink sapphires

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Potential Future Growth

• Recognized Occurrences - Aappaluttoq Mine Site
  - Siggartartulik Kigutilik Expansion Targets

• Expansion of production through familiarity of
  the deposit will be a natural lead to increase of
  profitability
• Secondary geological expansion deposits have
  already been recognized by the Company and
  exploration has been initiated
• Development of future targets will follow as
  market acceptance confirms the need to supply
  more material and will be financed through the
  future positive cash-flow

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