Building Canadas Next Mid -Tier Gold Producer Cautionary Statements - - PowerPoint PPT Presentation

Building Canada’s Next Mid-Tier Gold Producer

December 2018

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Cautionary Statements

Forward-Looking Information

This presentation contains statements or information concerning the business, operations and financial performance and condition of Wesdome Gold Mines Ltd. (“Wesdome” or the “Company”) which constitute forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation. Forward-looking statements relate to future events or the anticipated performance the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance as of the date of this presentation. Forward-looking statements include, but are not limited to, statements with respect to the timing and amount of future production, costs of production, targeted cost reductions, capital expenditures, the success of exploration activities, permitting time lines, government regulation of mining operations, the future price

• f gold and other minerals, and the timing and issuance of permits. Generally, forward-looking information can be identified by the use
• f words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” and

variations of such words and phrases or statements that certain actions, events, or results “may”, “could”, “would”, “might”, or “will”, “occur” or “be achieved” or the negative connotation thereof. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predicted outcomes could differ materially from those contained in such statements. These risks and uncertainties include, but are not limited to, fluctuations in prices of commodities, fluctuations in currency markets, actual results of additional exploration and development activities at the Company’s projects, the timing and amount of estimated future production and the costs thereof, capital expenditures, the availability of any additional capital required to bring future projects into production, the failure of plant, equipment or processes to operate as anticipated, accidents, or labour disputes. Risks and uncertainties about Wesdome’s business are more fully discussed in the disclosure material filed with the securities regulatory authorities in Canada and available on SEDAR under the Company’s profile at www.sedar.com. Readers are urged to read these materials and should not place undue reliance on the forward-looking statements contained in this presentation. Wesdome assumes no obligation to update the forward-looking information relating to beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws.

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Canadian Gold Company with Three 100% Owned Projects

• Over 30 years of continuous gold production
• 2018 Guidance: 70,000 – 75,000 ozs (YTD 2018:

54,371 ozs)

• Drilling High grade discovery at Kiena Complex
• Eagle River Operations funding $23 M

exploration and development at Kiena

• YTD 2018 free cash flow generation of $7.3 M
• Q3 2018 fourth consecutive quarter of free cash

flow generation

Moss Lake, Thunder Bay, Ont. Open Pit Gold Deposit Resources: Indicated 1.4M oz, Inferred 1.7M oz Eagle River Complex, Wawa, Ont. Operating Mine Complex, two deposits feed central mill @ ~850 tpd Past Prod.: 1.1 M oz Reserves: P&P 518,000 oz Resources: M&I 342,000 oz,

• Inf. 225,000 oz

Kiena, Val d’Or, Quebec Production Suspended 2013 Past Prod.: 1.75 M oz Resources: M&I 450,000 oz,

• Inf. 400,000 oz

Fully Permitted Mine/Mill Complex on Standby

1 2 3

3 1 2

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Corporate Structure

Symbol TSX:WDO Shares Outstanding 134.2 M Options and RSU’s 7.2 M Warrants Fully Diluted 141.4 M 52 Week High/Low $4.19/$1.70 (Average daily volume 800,000 shares) Market Capitalization $490 M ($3.77 December 17, 2018) Cash Position $30M (November 1, 2018) No Debt Analyst Coverage BMO Capital Markets Canaccord Genuity Clarus Securities Desjardins Capital Markets Echelon Wealth Partners Eight Capital Partners Industrial Alliance Laurentian Bank Mackie Research National Bank Financial PI Financial Major Shareholders 1832 Asset Management, Van Eck, Oppenheimer, Royal Bank Investment Management, Mackenzie Financial, US Global, Gabelli Management and Directors 2.2%

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Share Price Performance

Three Year Six Month One Year Five Year

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Building Canada’s Next Mid-Tier Gold Producer

Assets in top rated jurisdictions – Ontario and Quebec Low risk expansion of existing mines in proven mining camps New high-grade gold discovery in permitted, de- watered former producing mine

Proven building blocks to increase shareholder

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Q3 & YTD 2018 Operating Results

Amounts are denominated in Canadian dollars

Third Quarter Year -to-date

2018 2017 Variance % +/( -) 2018 2017 Variance % +/( -)

Ore milled (tonnes) Eagle River 46,777 44,421 2,356 5% 134,635 117,959 16,676 14% Mishi 4,076 38,638 (34,562) (89)% 62,155 114,396 (52,241) (46)% 50,854 83,058 (32,204) (39)% 196,790 232,355 (35,565) (15)% Head grade (grams per tonne, “g/t”) Eagle River 13.3 9.7 3.6 38% 12.2 10.3 1.9 18% Mishi 3.4 2.0 1.4 69% 2.3 1.8 0.5 27% Gold production (ounces) Eagle River 19, 437 13,313 6,124 46% 50,602 37,498 13,104 35% Mishi 358 2,181 (1,823) (84)% 3,769 5,687 (1,918) (34)% Total gold production 19,795 15,493 4,302 28% 54,371 43,185 11,186 26% Production sold (ounces) 18,401 13,069 5,332 41% 52,404 38,419 13,985 36% Revenue from gold sales ($ millions)

$28.9 $2 1.2 $7.7 36 % $86.6 $64.5 $22.1 34% Average realized price per

• unce 3

$1,571 $1,619 ($48) (3)% $1,651 $1,656 ($5)

• %

Notes:

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2018 Production Guidance Raised to 70,000 – 75,000 Ounces

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Q3 2018 Financial Results, 4 Consecutive Quarters of Free Cash Flow Generation

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Mineral Reserves (2017 Year End)

21% increase in Eagle River ounces; grade increased by 32%

• Reserves and Resources as at December 31, 2017.
• Mineral Resources exclusive of Mineral Reserves.
• The contents of this slide have been verified and approved by Michael Michaud, P. Geo, VP Exploration for the Company and a Qualified Person

within the meaning of NI 43-101

• For details, please refer to the Company’s press release dated February 26, 2018 and AIF dated March 21, 2018 available on the Company’s

website and sedar.com

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Eagle River Parallel Structure Reserve Breakdown

Structure Tonnage Grade (gAu/tonne) Contained Ounces Percentage of P + P Reserve Ounces

Proven and Probable Reserves

• No. 8

205,000 10.5 69,000 17%

• No. 300

514,000 13.4 222,000 53%

• No. 7

228,000 13.2 97,000 23% Other 112,000 7.8 28,000 7%

Total 1,059,000 12.2 416,000 100%

• Reserves and Resources as at December 31, 2017.
• The contents of this slide have been verified and approved by Michael Michaud, P. Geo, M.ScA, VP Exploration for the Company and a Qualified

Person within the meaning of NI 43-101

• For details, please refer to the Company’s press release dated February 26, 2018 and AIF dated March 21, 2018 available on the Company’s

website and sedar.com

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Exploration: Two Properties Attain Highest Grade Hits in 2017

Source: Mining Intelligence/Mining.com

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Eagle River Mine: 1.1 M oz of Production

• Quartz diorite intrusive (2 km x 0.5 km) hosts 1.1 M oz of past production

at Eagle River from 8, 6 and 2 Zone structures (1995 to 2017)

• Parallel 7 and 300 Zones to north offer new potential throughout the mine
• 2017 Production: 50,996 ounces (152,591 t @ 10.6 g/t)

7 Zone Surface

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Eagle River Parallel Gold Zones Remain Open

4200 elev 4200 elev 100 m

• pen
• pen
• pen
• pen

Section 9400E (looking west) Section 9400E (looking west)

• Discovery of two new parallel gold zones in 2013
• Exploration in 2014 - 2017 leads to reserve growth with expanding potential within mine footprint
• Mining of 300 Zone began in Q3 – 2015, 7 Zone in production since Q4 2016
• Recent widths at 300 North and 303 East Zones wider than previously encountered

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Eagle Drilling to Diversify Production Locations

Longitudinal Section Looking North

Untested Potential in Parallel Zones

303 Lens 864m drift highlights

Lens Strike Length (m) Aver age Widt h (m) Uncut Grade (g/t Au) Cut Grade (g/t Au) 300B 14.3 1.7 19.8 19.8 300C 22.8 1.5 24.6 13.3 301N 30.1 2.2 22.5 14.8 301 51.1 2.0 28.3 21.2 302 17.0 1.7 24.0 24.0 303 20.1 8.6 50.5 26.2

303 Lens structure currently traced from 750 m to 1000 m depth and remains open

7 Zone drifting highlights

Level Strike Length (m) Avera ge Width (m) Uncut Grade (g/t Au) Grade Cut (g/t Au) 1006 E 51.7 1.7 33.83 29.67 1006 W 41.1 3.2 22.85 15.25 1006 Combi ned 92.8 2.3 27.39 21.21 1022 E 75.5 1.8 34.86 28.33 1022 W 47.3 2.7 10.33 10.33 1022 Combi ned 122.8 2.2 23.79 20.21

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Eagle Exploration Targeting – Parallel Zones

Plan View Targeting areas where E-W structures intersection WNW structures, and areas where structures enter/exit Diorite N 8 Zone 7 Zone 300 Zone

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Eagle Surface Exploration Drill Targets

10,000 m of drilling commencing September 2018 3D View (looking northwest) N N

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Mishi Deposit – Future Potential

2017 New Area Under Explored 2017 New Area Mishi Pit 3D View (looking northwards)

600 m West of Pit 1.95 g/t over 29.8 m TW 3.08 g/t over 15.5 m TW 3.48 g/t over 17.7 m TW 2.14 g/t over 22.1 m TW 2.52 g/t over 18.8 m TW 2.38 g/t over 11.9 m TW

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Kiena Complex, Val d’Or, Quebec

• Mine on care and maintenance since

mid-2013

• 2,000 TPD permitted mill
• 930 Metre shaft
• Ramp system to 1000 m
• Underground de-watered
• Past production 1981 – 2013 12,500,00

mt @ 4.5 g/t = 1.75 M ounces produced

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Kiena Complex – Location, Location, Location!

Property Size: 65 Square Kilometres

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Kiena Mine 1.8 M oz prod Siscoe Mine 0.9 M oz prod Wesdome Deposit Presqu’ile Deposit

Kiena Complex – Regional Geological Potential

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Kiena Deep Discovery

Why Kiena Deep:

• Large Regional Structures
• Multiple zones of ductile and

brittle deformation for “openings” for Au

• Ultramafic contact tends to

“pool” liquids

• ~50,000 metre underground

drill program in 2019

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Kiena Deep A Zone Longitudinal Section

S50 Zone

B Zone VC Zone A Zone Up Plunge Extension

A Zone Open

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Kiena Deep A Zone - Up Plunge Potential

600 m plunge defined 600 m plunge potential

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Kiena Deep A Zone – Flattens at Depth with Multiple Zones

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Category Tonnes Grade (gAu/Tonne) Contained Ounces Kiena Complex Resources – In Mine Measured Indicated 1,028,900 6.38 211,100 Total M + I Resources 1,028,900 6.38 211,100 Total Inferred Resources 968,900 9.28 287,400

Updated Resources – Kiena Deep A, B, VC, and S- 50 Zones

• Mineral Resources exclusive of Mineral Reserves
• The contents of this slide have been verified and approved by Michael Michaud, P. Geo, M.ScA, VP Exploration for the Company and a Qualified Person

within the meaning of NI 43-101

• For details, please refer to the Company’s AIF dated March 21, 2018 available on the Company’s website and sedar.com

Category Tonnes Grade (gAu/Tonne) Contained Ounces Kiena Complex Resources – A Zone Measured Indicated 310,300 9.95 99,300 Total M + I Resources 310,300 9.95 99,300 Total Inferred Resources 656,100 11.43 241,100

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Total Kiena Complex Resources

Category Tonnes Gold Grade (g/t Au) Gold Ounces Within Crown Pillar Measured Indicated 162,800 5.32 27,900 Total M + I 162,800 5.32 27,900 Inferred 1,113,200 6.97 249,600 Below Crown Pillar Measured 63,700 4.06 8,300 Indicated 2,893,700 5.87 546,400 Total M + I 2,957,400 5.83 554,700 Inferred 3,025,300 7.79 757,600 Total Project Measured 63,700 4.06 8,300 Indicated 3,056,500 5.84 574,300 Total M + I 3,120,200 5.81 582,600 Inferred 4,138,500 7.57 1,007,200

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New Drilling Post Resource Update

48 out of 50 holes visible gold showings

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VC Zone – Near-Term Production Potential

Highlights include:

• 262.13 g/t or (17.70 g/t cut to 34.28 g/t) over

5.6 m true width in hole 6205 (A Zone?)

• 10.28 g/t or (8.56 g/t cut to 34.28 g/t) over

3.0 m true width in hole 6201

• 9.26 g/t (9.26 g/t cut) over 3.0 m true width

in hole 6208 VC Zones – Important Aspect of restart program

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A Zone and Exploration Potential

A Zone Parallel “A Zone” Structures

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Moss Lake – Optionality on Gold Price

• Dominant land holdings, 36 km along Shebandowan Gold Belt containing four

deposits open for expansion

• Moss Lake Deposit remains open Pit and Mineral Resource constrained by

property boundary

• 2017 drilling extends strike length mineralization from 2kms to 4.5 kms
• Geophysical expression (IP) extends over a strike length of 8 kms
• Potential to significantly add to resources

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2018 Exploration Summary – Sustained Investment

$10.8 M Exploration Drilling Budget Eagle: 4 Underground Drills 1 Surface Drill (September) Kiena: 4 Underground Drills

Property 2018 Metres 2017 Metres 2016 Metres 2015 Metres Eagle Underground Exploration Drilling 25,000 24,000 27,000 22,000 Eagle River Underground Definition Drilling 25,000 35,000 32,000 20,000 Eagle Surface Exploration Drilling 10,000 15,000 25,000 Mishi Exploration Drilling 15,000 25,000 5,000 Kiena Complex 50,000 45,000 10,000 Moss Lake 25,000 4,000 Total 110,000 159,000 123,000 47,000

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Summary

Experienced Management team with proven track records LOW CAPEX: Kiena: New gold discovery in existing, permitted, de- watered former producing mine HIGHLY EXECUTABLE: Eagle River: new high- grade parallel zones close to infrastructure Pipeline of development projects Aggressive Exploration Programs in Wawa and Val d’Or Operations in safe jurisdiction, Canada LOW RISK: Expansion of existing mines in proven mining camps

Contact Info

Duncan Middlemiss Lindsay Dunlop President and CEO Vice President, Investor Relations 416.360.3743 ext. 29 416.360.3743 ext. 25 dmiddlemiss@wesdome.com ldunlop@wesdome.com

Appendix

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Executive Management Team

Duncan Middlemiss, P. Eng Chief Executive Officer

• Professional engineer with over 25 years experience in operational management, mine rehabilitation,

development and gold production

• Over 10 years of executive management experience
• Most recently Chief Executive Officer of St Andrew Goldfields until its sale to Kirkland Lake Gold in January

2016 Ben Au, CPA, CA Chief Financial Officer

• Over 35 years of experience in financial management and reporting, regulatory compliance, M&A, and

P&L management

• Over 11 years at Agnico Eagle Mines in increasingly senior financial reporting roles
• Most recently Chief Financial Officer of St Andrew Goldfields Ltd until its acquisition by Kirkland Lake Gold

Marc-Andre Pelletier, P.Eng Chief Operating Officer

• Professional engineer with over 20 years experience in operating gold mines in Canada
• Over 9 years at Barrick Gold in increasingly senior operational management roles
• Most recently VP Operations at St Andrew Goldfields until its acquisition by Kirkland Lake Gold

Michael Michaud, P.Geo VP, Exploration

• Professional geologist with over 30 years experience in domestic and international gold exploration and

mining

• Former Principal of SRK Consulting Inc
• Most recently Chief Geologist at Iamgold

Lindsay Carpenter Dunlop VP, Investor Relations

• Over 10 years experience in the development and execution of investor relations programs for publicly

traded resource companies

• Most recently 5 years as Director of Investor Relations at Kirkland Lake Gold

Stacy Kimmett VP, Human Resources

• Over 20 year experience in human resources focusing on policy development, compliance, and change

management

• Most recently Sr. Director, Human Resources at St Andrew Goldfields

Heather Laxton Corporate Secretary & CGO

• 20 years of corporate secretarial, corporate governance and securities regulation experience with a focus
• n the mining sector in Canada, Europe, Russia and West Africa
• Most recently Corporate Secretary at Kirkland Lake Gold

Vincent Ramcharan, P.Eng Director of Sustainability

• Professional engineer with 20+ years mining experience in operations, construction, sustainability,

environment, indigenous peoples, and permitting

• Corporate and management experience with Cliffs, International Minerals, SNC-Lavalin(for Barrick, Inmet,

BHP, Sherritt, Gold Reserves)

• Most recently Director, Sustainability at Richmont Mines (acquired by Alamos Gold in November 2017)

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Board of Directors

Charles Page, P.Geo Chairman

• Over 40 years experience in the mineral exploration and mining industry
• Most recently President and CEO of Queenston Mining, leading the discovery and

development of the Upper Beaver deposit in the Kirkland Lake gold camp, until its acquisition by Osisko Mining Charles Main, CPA, CA

• Chartered Professional Accountant and member of the Chartered Professional Accountants of

Ontario and Canada

• Over 30 years experience in finance and mining industries
• Most recently Chief Financial Officer of Yamana Gold from 2003 – 2017

Duncan Middlemiss, P. Eng Chief Executive Officer

• Professional engineer with over 25 years experience in operational management, mine

rehabilitation, development and gold production

• Over 10 years of executive management experience
• Most recently Chief Executive Officer of St Andrew Goldfields until its sale to Kirkland Lake

Gold in January 2016 Nadine Miller, P. Eng

• Over 15 years experience in geotechnical engineering and project management in the mining

space

• Former Business Development Manager at SNC-Lavalin’s Mining and Metallurgy unit

Warwick Morely-Jepson

• Over 35 years experience in the mining industry within operations, project and business

development

• Formerly Chief Operating Officer and Executive VP of Kinross Gold Corp

Rolly Uloth

• Over 45 years of senior management experience
• Co founder of Rosedale Transport, fifth largest trucking company in Ontario

Bill Washington, MBA

• Former Head of Global Mining and Metals at National Bank Financial Markets
• Over 25 years experience in capital markets, focused exclusively on the mining sector

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Cautionary Statements

Estimates of Mineral Resources

This presentation contains information regarding the mineral resource estimate at the Company’s Kiena Mine Complex, which has been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s “CIM Definition Standards on Mineral Resources and Mineral Reserves” incorporated by reference into National Instrument 43- 101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Mineral resources are not economic mineral reserves and the economic viability of resources that are not mineral reserves has not been demonstrated. The estimate of mineral resources may be materially affected by geology, environmental, permitting, legal, title, socio-political, marketing or other relevant issues. It is uncertain in all cases whether further exploration will result in upgrading the inferred mineral resources to an indicated or measured mineral resource category. Qualified Person The scientific and technical information in this presentation has been reviewed and approved by Michael Michaud, P . Geo and Vice President, Exploration of the Company, who is a “qualified person” within the meaning of NI 43-101.

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Category Tonnes Grade (gAu/Tonne) Contained Ounces Eagle River Underground Resources Indicated 50,700 7.3 12,000 Inferred 334,000 8.0 85,000 Mishi Open Pit Resources Indicated 3,679,000 2.1 248,000 Inferred 764,000 2.4 59,000 Mishi Underground Resources Indicated 567,000 4.5 82,000 Inferred 437,000 5.8 81,000 Total M + I Resources 342,000 Total Inferred Resources 225,000

Mineral Resources (2017 Year End) Operating Assets

• Reserves and Resources as at December 31, 2017.
• Mineral Resources exclusive of Mineral Reserves.
• The contents of this slide have been verified and approved by Michael Michaud, P. Geo, M.ScA, VP Exploration for the Company and a Qualified Person within the

meaning of NI 43-101

• For details, please refer to the Company’s press release dated February 22, 2017 and AIF dated March 21, 2018 available on the Company’s website and sedar.com

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Category Tonnes Grade (gAu/Tonne) Contained Ounces Moss Lake Resources Total M + I Resources 39,795,000 1.1 1,377,000 Total Inferred Resources 50,364,000 1.1 1,751,000

Moss Lake Resources

• Reserves and Resources as at December 31, 2016.
• Mineral Resources exclusive of Mineral Reserves
• The contents of this slide have been verified and approved by Michael Michaud, P. Geo, M.ScA, VP Exploration for the Company and a Qualified

Person within the meaning of NI 43-101

• For details, please refer to the Company’s AIF dated March 21, 2018 available on the Company’s website and sedar.com

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Eagle River/Mishi Complex Central Ontario

• Located in Hemlo/Wawa

Gold Camp

• Celebrating 20 years
• f production
• 1,000,000+ oz @ 9.1 g/t Au
• Current operations ~800 tpd

Mill located adjacent to Mishi open pit deposit (permitted to 1,200 tpd)

• Eagle River underground

mine located 15 kms to south

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Latest Drifting Results 300E Structure 864 m Level

155.4 m of strike length/2.8 m average width/19.6 g/t Au cut/28.3 g/t Au uncut

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New Discovery Located Near Existing Infrastructure

Existing Indicated Resources

Zone Cut Grade (cut to 34.28 g/t) Tonnes Ounces S50 Deep A 10.87 173,111 60,511 S50 Deep AH 8.53 68,722 18,885 S50 Deep B 3.21 514,100 53,100 TOTAL OUNCES 132,466

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S-50 Zone Isometric View North

Drill holes 2010-2012

Level 91

S-50 Zone - Conceptual Isometric 3D View

• S-50 Zone depleted portion (red wireframe)
• Majority of Kiena’s production (10M tons or 1.6 M oz Au) was

mined from the S-50 zone where widths range from ~15 to 50 metres wide

• Thicker gold mineralized breccia zones interpreted to be part
• f a large deformed sigmoidal structure extending northward

from the S-50 tabular shear hosted mineralized zone

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2013 Moss Lake – PEA (2.5 M oz. study)

300 m

NE SW

• pen

General View of Mineralized Zones Longitudinal and Plan View of Moss Lake Pit

2.5 km

SW NE

• pen

Highlights

• Open pit mine and CIL Processing at 40,000 tpd
• Life of mine strip ratio of 2.5 : 1
• 10 year mine life averaging 244,000 oz. per year
• years 1-5 average 296,000 oz. per year
• years 6-10 average 192,000 oz. per year
• Mill recovery: 79.2% to 84.2% (Gravity – CIL)
• Pre-production Capital: $543 M CDN
• Operating costs $17.56 CDN per tonne ($922

per oz.)

• Payback period: 1.75 years
• After Tax NPV: $196 M at 5% discount rate
• After Tax IRR of 12% (assumes Au price of

$1551 CDN)

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Kiena Deep A Zone

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Kiena Complex Drill Core August 2016