"Torq Resources fills a void in the market for major companies, as we are equipped and confident in taking the calculated risk associated with exploration."

Michael Kosowan

PRESIDENT AND CEO, TORQ RESOURCES

April 28, 2021

Can you give us an overview of Torq Resources and the company's transition from Stratton Resources?

Torq Resources is an exploration company focused on establishing a top tier mineral portfolio and the fourth company within our group of exploration juniors. Our management teams have raised US$550 million and monetized successes in two previous exploration companies, delivering high value to shareholders. Following a comprehensive review, focused primarily on the Americas, Torq saw high potential for exploration projects in Chile, a world-renowned mining country.

Chile is attractive due to its stability economically and politically and sound mining code. The silver lining of the pandemic for us has been our ability to find and appoint a highly experienced local technical team to evaluate projects and build a strong portfolio led by Waldo Cuadra, who has over 40 years of experience in the industry. Having this highly skilled team is critical as we look for opportunities in the primary mining regions of Chile.

Do you think we are witnessing the beginning of a new commodities supercycle?

We are witnessing the reflationary efforts of central banks around the world that are injecting stimulus into the world economies at an unprecedented level. This will trigger inflation and a boom in commodity prices.  That, coupled with the lack of exploration and production short falls, will place significant upward pressure on the commodity complex.  The majors will need to replace their resources as quickly as they can amidst this bullish market backdrop. They are increasingly outsourcing exploration to junior companies to ensure a strong pipeline of quality assets while mitigating geological risk.

How would you describe the junior market dynamic in Chile?

Large-scale mining companies are being challenged on the exploration front at a time when commodity prices are skyrocketing. As margins increase for the producers, they are under increasing pressure to replenish their reserves. The industry, as a whole, therefore needs to invest more in exploration as it is the lifeblood of the mining industry. Our advantage is our ability to raise capital for that much needed exploration. By leveraging our global experience, we can fund and uncover projects that will help fill this void.

Exploration activities undertaken in Chile today are predominantly focused on immediate production and converting existing resources or revisiting historical data. The decline in greenfield exploration is alarming and cause for concern. The risk-taking attitude towards exploration needs to be fostered and increased. This dormancy period in exploration affects regions like Chile because grounds are not readily open or are held by groups with low interest in exploration.

How do investors perceive Torq Resources?

The market perceives our company as having a track record of success, so investors, rightly, have high expectations. Management are also major equity owners, so we are aligned with our shareholders' interests. We are fortunate to have the exploration team that led the discovery at El Morro working with us. Mines are made not just stumbled upon, and it takes a high level of technical expertise to unlock a significant discovery and develop a project that is economically appealing to investors and eventual major buyers. Torq is well positioned to meet this challenge as we combine our capital markets expertise with the team's exceptional talent on the ground.

Where does Torq Resources see the highest growth potential in the near future?

Making a discovery is where we see the company's greatest potential to bring value to our shareholder base. Torq Resources fills a void in the market for major companies, as we are equipped and confident in taking the calculated risk associated with exploration. We look forward to playing a significant part in the exploration succession plan in Chile as we seek out market-impacting copper and gold properties.

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