WHITE MOUNTAIN CALCIUM FELDSPAR PROJECT. Greenlandic Trade Mission to South Korea INVEST IN GREENLAND - HUDSON RESOURCES March 16, 2016

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1 WHITE MOUNTAIN CALCIUM FELDSPAR PROJECT Greenlandic Trade Mission to South Korea INVEST IN GREENLAND - HUDSON RESOURCES March 16, 2016

2 Forward Looking Statements q q q q Forward-looking Statements This presentation includes certain forward-looking statements about future events and/or financial results which are forward-looking in nature and subject to risks and uncertainties. Forward-looking statements include without limitation, statements regarding the company s plan, goals or objectives and future mineral projects, potential mineralization, resources and reserves, exploration results and future plans and objectives of Hudson Resources. Forward- looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", or "continue" or the negative thereof or variations thereon or similar terminology. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from expectations include risks associated with mining generally and pre-development stage projects in particular. Potential investors should conduct their own investigations as to the suitability of investing in securities of Hudson Resources. Cautionary Note Regarding Mineral Reserves and Mineral Resources Readers should refer to the current Technical Report of Hudson and other continuous disclosure documents filed by Hudson available on SEDAR at for further information on Mineral Resources, which is subject to the qualifications and notes set forth therein as well as for additional information relating to Hudson more generally. Mineral Resources which are not Mineral Reserves, do not have demonstrated economic viability. Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated and Inferred Resources This presentation uses the term "Inferred" Mineral Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. "Inferred Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. Qualified Person (QP) Dr. Michael Druecker, CPG, is a qualified person as defined by National Instrument and reviewed the preparation of the scientific and technical information in this presentation. Ronald G. Simpson, B.Sc., P,Geo., President of Geosim Services Inc., is an independent Qualified Person as defined by NI and was responsible for the resource estimate on the White Mountain Project. QP certificates can be found on Hudson s website. Dr. Michael Druecker, Ph. D., CPG, Ronald G. Simpson, B.Sc.,P.Geo, Don Hains, P.Geo., and John Goode, P.Eng prepared the Technical Report titled PRELIMINARY ECONOMIC ASSESSMENT (PEA) FOR SPECIALTY ALUMINA PRODUCTION FROM THE WHITE MOUNTAIN ANORTHOSITE DEPOSIT, WEST GREENLAND. The Report incorporates a previously reported mineral resource estimate for the Project, which was completed by Druecker and Simpson (Technical Report on the White Mountain Project West Greenland, dated January 30, 2013). 2

3 What Makes Hudson Interesting for South Korean Industry? South Korea is a major industrial powerhouse that requires imported natural resources to produce many of its products. E-Glass Fiberglass Hudson plans to supply anorthosite to satisfy three principal industries: 1. Structural Glass Fibre A primary source of aluminum and calcium for the production of structural fiberglass (e-glass) 2. Paints and Polymers A functional filler and extender for paints and polymers 3. Ceramic, Glass and Refractories A primary source of high purity alumina, amorphous silica and calcium silicate Alumina Plastic 3

4 Same Mine Many Applications E-Glass Feedstock Paints/Plastics Filler Alumina Feedstock 3 stages of crushing Magnetic separation Covered storage Ship to end users Good volume/good margin 3 stages of crushing Magnetic separation Covered storage Ship to end users after fine grinding offshore Lower volume/higher margin 2 stages of crushing Outdoor storage Ship to offshore facility High volume/lower margin 4

5 Significant Advantage with Northern Shipping Route South Korea North-East Passage 15,000km North-West Passage 10,000km Panama Canal 24,000km Suez Canal 24,000km Shipping route 5

6 10-Year Supply Agreement for Fiberglass Production On July 30, 2015, Hudson announced that they had entered into a binding purchase agreement with a previously disclosed (NR ), large North American materials company for the supply of Hudson s White Mountain anorthosite product, to be used in the production of fiberglass. The purchase agreement establishes a minimum 10-year commitment for significant annual purchase of the product. Hudson will be a global supplier, providing anorthosite as a feed material to the company s fiberglass plants around the world. Hudson expects to commence product shipments in the second half of 2016, subject to final permitting, financing and mine commissioning in Greenland. The supply agreement will cover a major portion of the initial planned production of 200,000 tonnes per year. For a nominal additional cost, Hudson can more than double the capacity to accommodate new customers. 6

7 Completed Community Consultation Visits 7

8 50 Year Mining Permit Granted September

9 Good Logistics for Shipping Equipment to Site 9

10 Road Construction 1/3 Completed 10

11 Deep Water Port Will Support Bulk Carriers 150m 11

12 A Very Unique Deposit q Typically, calcium-rich anorthosite deposits are small, irregular and contain too many impurities for commercial applications other than low value products like road fill. q Only three other deposits have been identified that have similar chemical compositions. The Lapinlahti deposit is currently marketing product through Sibelco but available quantities are limited. The Gudvangen deposit is located within a UNESCO World Heritage site and the Shawmere deposit has a very small resource. Lapinlahti Deposit, Finland Shawmere Deposit Canada Gudvangen Deposit Norway 12

13 A Large Deposit / Long Life Potential q Size matters and buyers want security of a long term supply of homogeneous and consistent material q Initial resource outlined 60million tonnes of indicated and inferred resources. This represents over 120 years of production for the E-Glass market q 95% of the body still untested. Strike length is 6 km Table 1. Mineral Resource Estimate Class Na 2 O Cut Tonnes Off 1 (000 s) SiO 2 Al 2 O 3 Fe 2 O 3 CaO MgO Na 2 O K 2 O Indicated 2.50% 27, % 30.0% 1.26% 14.95% 0.55% 2.35% 0.29% Inferred 2.50% 32, % 30.1% 1.22% 15.01% 0.52% 2.34% 0.26% Indicated 3.00% 35, % 29.8% 1.25% 14.72% 0.53% 2.41% 0.31% Inferred 3.00% 42, % 29.8% 1.25% 14.77% 0.52% 2.40% 0.30% Notes: 1. Resources have been classified in accordance with 2014 CIM definitions for Mineral Resources. 2. The Qualified Person for this Mineral Resources estimate is Ronald G. Simpson, P.Geo. 3. Mineral Resources are estimated for blocks containing less than 2.5% Na 2 O based on feedstock requirements. 4. Mineral resources are not mineral reserves and do not have demonstrated economic viability 13

14 White Mountain Arial View White Mountain - Exposed Anorthosite Mountain Top Easily Minable Area Close to Deep Water Fjord for Convenient Shipping 14

15 Planned Mine Site Close to Infrastructure q Deep water port being developed q International airport 80 km from the project located in the town of Kangerlussuaq q Year round access Mine Site 10 km Road Process Plant and Port 15

16 Starter Pit View 16

17 Simple Mining Process q There is no metallurgical risk to this project processing is simple and there are no chemicals involved q Open pit operation with no stripping and no waste rock q The flowsheet for the production facility in Greenland is: Crushing Magnetic separation Final grinding stage Delivery to end users Airport 17

18 E-Glass Potential (Anorthosite = 35% of Feedstock) q Major markets concentrated in Asia, Europe and the USA q Average annual growth rate of 7.2% Asia 2,200,000t Europe 850,000t USA 790,000t Estimated 2010 E-glass Production q 2012 global production estimated at 5,300,000 tonnes worth over $10.8B 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 E-Glass Fiber Production (tonnes) - Source: Industrial Minerals 18

19 Why a South Korean Fiberglass Plant will use Anorthosite q Anorthosite is a superior feedstock over kaolin and pyrophyllite clays for the production of E-Glass based on the following benefits: Energy savings of 10+% Produces higher quality fibers Reduced fiber breakage at the bushings reducing waste Reduced melt time Higher glass yield of 10-12% Less CO2 resulting in less bubbles in glass, less defects Reduced NOx, SOx and CO2 emissions Lower heavy metal content Reduced wear and tear on refractories, thus extending furnace life Higher density (2-3 times that of kaolin) allows for major efficiencies in shipping and storage (Source: Sibelco Paper, GlassTrend Conference, October 2012, and other industry sources) Airport 19

20 Alumina Potential - Specialty and Smelter Grade q q q q q Bench scale testing has produced smelter grade and specialty grade (alpha) alumina No production of toxic red muds. Potential for amorphous silica and calcium silicate by-products Demonstrated ability to produce alumina from known processes. No new technology required SGA Alumina market is very large at 100 M tonnes/annum. Specialty grade alumina market is around 3 M tonnes/annum and trades at 2 to 5 times the price of SGA 20

21 Functional Fillers and Extenders q Fillers are particles added to material (plastics, composite material, concrete) to lower the consumption of more expensive binder material or to better some properties of the material q Worldwide more than 53 million tonnes of fillers worth US$20 billion are used every year in applications such as paper, plastics, rubber, paints, coatings, adhesives and sealants q Fillers market to grow to $22.5 billion by 2018 q White Mountain material currently being tested for filler potential with positive feedback 21

22 Moving Forward with South Korean Industry Partners q Develop sales relationships and long term supply agreements with structural fiberglass producers q Develop sales relationships and long term supply agreements with paint and polymer manufacturers who use functional fillers and extenders q Find industry partners to help finance and develop the alumina potential of the project q Attract debt and equity investment for mine construction (C$30 million) in order to ensure shipments starting in 2017 q Hudson also has a well developed rare earth project which is rich in Nd + Pr (25% of total REE). Hudson would like to JV the project and is available for further discussions regarding the deposit 22