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www.truenorthgems.com TSX-V: TGX Delivering a New Source of Gemstones to the World Investor Presentation March 2015 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 management’s 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 Company’s 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. Greenlandic Ruby Producer True North Gems Inc. with shares trading on the TSX Venture Exchange under the symbol TGX Dedicated to deposits the exploration and development of coloured gemstone 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 Corporate Snapshot Capital Structure Historical Trading Price & Volumes Issued and Outstanding 297,232,049 Warrants 9,313,990 - avg. strike price $0.12 Options 26,450,000 - avg. strike price $0.14 Fully Diluted 332,996,039 Share Price (Feb 11) $0.16 52-week High/Low $0.17/$0.06 Reserves & Resources Market Cap (Jan 30th) Owned by Board/Mgmt Other Insider(s) $46.5 million Ownership Tonnes Corundum ct/t Attributable ct 100% 189,150 1,567 296,330,000 100% 77,160 1,417 109,350,000 Indicated* 8 million (2.7%) Aappaluttoq Inferred 36.9 million (12.4%) Aappaluttoq * The Mineral Resource include Ruby and Pink Sapphires which are the chrome saturated versions of corundum Pink Sapphire Ruby 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 company’s 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.). 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. 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. 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 Aappaluttoq Ruby Project 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 Mine Current 9-Year Pit (Pink area in opposite image) Exploration upside delineated from existing drilling Pit Design Photo source: LNS Rana Gruber; Norway Corundum Grade – Primary Pit Non-compliant Geological Structures in Red Financial Projections Aappaluttoq Project Production Schedule and Economics Base Case* Production Year 0 Ore tonnes mined Waste tonnes mined Rough Ruby Saleable Production (g) Rough Sapphire Saleable Production (g) - 1,103 6,923 19,769 21,044 21,875 21,820 21,530 23,056 24,484 161,604 - 236,572 213,180 425,625 420,830 399,989 335,284 237,051 179,330 167,672 2,615,533 - 5,608 182,800 377,388 287,842 310,917 327,004 297,690 289,311 594,074 2,672,633 - 38,776 1,263,055 2,607,537 1,988,592 2,145,972 2,257,289 2,057,884 1,997,309 4,105,373 18,461,787 1 2 3 4 5 6 7 8 9 Total Financials US$m Revenue Operating Costs Operating EBITDA Capital Costs Estimated After Tax Cash Flow $ - $ 0.37 $ 12.45 $ 26.22 $ 20.40 $ 22.45 $ 24.09 $ 22.39 $ 22.18 $ 46.48 $ 197.04 $ - $ 6.10 $ 7.86 $ 12.51 $ 11.98 $ 12.10 $ 12.13 $ 11.72 $ 11.60 $ 13.46 $ 99.46 $ - $ (5.73) $ 4.59 $ 13.71 $ 8.41 $ 10.36 $ 11.96 $ 10.68 $ 10.58 $ 33.02 $ 97.59 $ (6.86) $ (30.58) $ (0.54) $ $ (6.86) $ (36.31) $ 4.05 $ - $ 13.71 $ - $ 8.41 $ - $ 10.36 $ - $ 11.71 $ - $ 8.60 $ - $ 8.67 $ $ (37.98) 21.31 $ - 43.65 * Base Case as per NI 43-101 compliant Pre-Feasibility Study issued June 6, 2011 Economic Upside from Base Case** Project Economics (in US$millions) After tax NPV @ 5% After tax NPV @ 8% IRR Base Case Base Case w/Rough Transition Scenario 1: Limited Marketing Increase Scenario 2: Moderate Marketing Increase Scenario 3: Aggressive Marketing Increase 25.0 26.8 46.9 75.7 96.0 15.6 20.6 20.6 55.4 71.4 16.20% 16.81% 22.94% 28.44% 31.83% ** 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. Environmental Impacts Present After nine (9) years of operation After closure of the mine True North Gemstones Rough and Polished Ruby Exploration History 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 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 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 2006 2007 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 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 relogged 2008 2010 2009 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 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 2011 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 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 2012 2013 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 2014 2015 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 Operations Strategy To become one of the World’s leading coloured gemstone production and exploration companies. Our sustainable operations will produce beneficially sourced and fully certified coloured gemstones for the World’s most prestigious jewellers. The ability to expand upon production will be initiated demand grows. 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 4. Worldwide Exploration 5. Acquisition - 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 - 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 - Currently numerous small gem-producing mines around the world. Majority of these mines are run by small private companies that would benefit from the Company’s exploration and development expertise - Acquiring these producing mines would bring new assets into the Company’s portfolio, create value for shareholders, and expand the Company’s exposure to the Market. 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 US$31 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 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 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 Signing of Aappaluttoq Licence Nick Houghton, President & CEO Bent Olsvig Jensen, Managing Director Greenland Ruby Industry Ruby & diamond ring, by Chaumet featuring a ruby weighing 32.08 carats Price realized: $6,600,000 Ruby & diamond Van Cleef & Arpels ring Price realized: $4,226,500 Ruby & diamond Camelia flower brooch by JAR Price realized: $4,270,000 Ruby and Diamond Ring, featuring the Graff ruby weighing 8.62 carats Price Realized : $8,600,000 Record Breaking Ruby Prices April 12, 2005 – Christie’s 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 Christie’s St. Moritz auction $700,000 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 $600,000 $500,000 December 13, 2011 – Christie’s 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 $400,000 $300,000 $200,000 May 14, 2012 – Christie’s 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 Christie’s 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. $100,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Industry Highlights Global ruby market size is approximately US$2.1 billion* Global pink sapphire market is approximately US$58.8 million* Global jewellery sales are poised to grow at 4.6% year-on-year to touch US$230 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 US$280 billion by 2015 at a CAGR of 6.7% *Source: MVI Marketing 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 Looking Forward Construction of the Mine site On September 23, 2014, True North and its joint venture partner, LNS Greenland, initiated mobilization of equipment and construction at the Aappaluttoq Ruby and Pink Sapphire project Key construction achieved in 2014: transportation & installation of pre-fabricated loading dock enabling mobilization of equipment to site construction of a 5 km trail from the outer port to the main campsite Commencement of ongoing blasting in order to level the ground for the permanent camp, and installation of water line, sewer line and electricity for the camp Key construction objectives for 2015: set up and establishment of the living quarters and accommodation for construction crew’s camp facilities will remain for future operations continuation and completion of all infrastructure which will enable production to commence Q3 2015. 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 Potential Future Growth 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 Aappaluttoq Mine Site Kigutilik Expansion Target Siggartartulik Expansion Target Recognized Occurrences: - Aappaluttoq Mine Site - Siggartartulik & Kigutilik Expansion Targets