Vertex Resource : Investor Presentation 09-2023

V E R S A T I L I T Y . E X P E R T I S E .

R E S O U R C E G R O U P L T D .

INVESTOR PRESENTATION: 2023

vertex.ca

TSX: VTX

DISCLAIMER & NOTICE TO READER

This presentation is for discussion purposes only. The contents are not to be reproduced, summarized, or distributed.

These materials have been prepared for information purposes only concerning Vertex and are not, under any circumstances, to be construed as an offering of any securities for sale directly or indirectly in any province or territory in Canada, in the United States of America, or the territories or possessions thereof or to any U.S. person. No prospectus has been or will be filed in connection with an offering in Canada and the units have not been registered under the United States Securities Act of 1993, the securities law of any state thereof, or the securities of any other jurisdiction, nor is such registration contemplated, and this presentation is not and under no circumstances is to be construed as a prospectus or other offering document. No securities commission or similar regulatory authority has passed on the merits of the units reviewed these informational materials any representation to the contrary is an offense.

The information presented in this document is considered to be accurate, however, there is no expressed or implied representation or warranty as to the accuracy or completeness of any such information and does not constitute investment advice.

This presentation may contain forward-looking statements, including forward-looking statements regarding management's assessment of plans and operations, business and investment strategies, exceptions of returns, cash flow, and earnings. Forward- looking statements are based on current assumptions, beliefs, internal exceptions, estimates, and projections of management relating to, among other things, the ability of the funds to raise capital and locate desirable investments, the performance of the funds' underlying investments, the funds' ability to effectively time dispositions, prevailing commodity prices and exchange rates, applicable royalty rates and tax laws. Such forward-looking statements are based on information currently available to management. No persons should rely on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in many cases, beyond the control of management and may cause the funds' actual results, performance, or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

The market and industry data contained in this presentation are based on information from independent sources and other publications. While management believes this data to be reliable, market and industry data is subject to variations and cannot be verified with complete certainty. Management has not independently verified any of the data from third-party sources referred to in this presentation or ascertained the underlying assumptions relied upon such sources.

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CORPORATE PROFILE

DK

M A R K E T S U M M A R Y

CURRENT STOCK PRICE (TSX:VTX)	$0.44 (Sept 18, 2023)
COMMON SHARES OUTSTANDING	115.6 Million
STOCK OPTIONS ($0.55)	2.2 Million
FULLY DILUTED SHARES	117.8 Million
TOTAL INSIDER OWNERSHIP	41%
PRICE TO NBV	0.8x

BACKLOG	$272.9 Million
MARKET CAPITALIZATION	$51.8 Million
DEBT	$91.7 Million
CONVERTIBLE DEBENTURES	$15.0 Million
ENTERPRISE VALUE	$158.5 Million
ENTERPRISE VALUE/EBITDA	3.54x

	E B I T D A
2021		$26.2 Million
2022		$32.2 Million
2023F(1)		$44.8 Million

1. Based on consesus estimates
2. 2023 Forecast

C A G R

EBITDA(2)			REVENUE(2)
2005:	27.1%	2005:		30.1%
2017:	19.7%	2017:		14.1%

V E R S A T I L I T Y . E X P E R T I S E .	2

FINANCIALS

F I N A N C I A L S U M M A R Y

Year ending December 31(C$ 000's)

		2021	2022	2023 (6 MONTHS)
REVENUE	159,438	218,378	119,111
COST OF SALES	117,150	166,127	87,104
GROSS PROFIT	42,288	52,251	32,007
GROSS MARGIN	27%	24%	27%
SG&A	16,052	20,266	12,436
OTHER1	(640)	-	-
ADJUSTED EBITDA	26,236	32,185	19,571
MARGIN	17%	15%	16%
ASSETS	186,570	254,424	222,715
TOTAL SENIOR DEBT	85,435	102,374	91,670
TOTAL EQUITY	49,696	64,736	67,451
NET MAINTENANCE CAPEX	4,432	8,649	4,359
FREE CASH FLOW2	13,888	12,749	8,362

	BACKLOG
2023	$124 Million
2024	$100 Million
2025+	$49 Million

1. Adjustments relate to items that are not ongoing, are non-recurring, are exceptions to our normal operations, and do not form part of our principal business. Overall adjustments relate to acquisition costs, impairments, onerous leases, and severance costs, share-based compensation.
2. Adjusted EBITDA less net maintenance capex, less amortization of right-of-use assets, less cash interest and less cash taxes

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STRATEGY

Substantial Growth Opportunity	Accelerated Growth potential	Platform Structure Provides	ESG & Sustainability	Unique Service Combination
for Environmental Services/ESG	growing ESG needs of	Cost Reduction & Project	leadership	(Equipment & Personnel)
Solution platform on existing	core critical infrastructure	Execution Synergies
critical Infrastructure	with Acquisitive & Organic
•	Energy (Traditional, Renewable,	Opportunities
•	and Energy Transition)	•	Synergistic Acquisitions
Mining & Industrial	•	Organic Solutions
•	Utilities
•	Agriculture & Forestry
•	Government

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