SLIDE 1
T his Pre se nta tio n c o nta ins fo rwa rd‐lo o king sta te me nts, inc luding b ut no t limite d to sta te me nts in re la tio n po te ntia l q ua ntity a nd/ o r g ra de o f mine ra ls, po te ntia l size a nd e xpa nsio n o f a mine ra lize d zo ne o r mine ra l syste m, pro po se d timing o f e xplo ra tio n a nd de ve lo pme nt pla ns, the g ro wth po te ntia l o f the Ma dse n Go ld Pro je c t a nd o ppo rtunitie s fo r sc a la b ility, pla nne d mining me tho ds, mine ra l pro c e ssing a nd so urc e s o f po we r, e xpe c te d a nnua l pro duc tio n, po te ntia l pro fita b ility o f the Ma dse n Go ld Pro je c t a t lo we r me ta l pric e s, e xpe c te d c a pita l c o sts, a ntic ipa te d pe rmitting re q uire me nts a nd timing the re o f, e xpe c te d de ve lo pme nt sc he dule , e xpe c te d timing o f the c o mple tio n o f the Pre limina ry E c o no mic Asse ssme nt fo r the Russe t So uth, F
- rk a nd We dg e de po sits, po te ntia l c o nve rsio n o f infe rre d re so urc e s to
me a sure d a nd indic a te d re so urc e s, po te ntia l e xte nsio n a nd e xpa nsio n o f mine ra l re so urc e s a nd the fo c us o f the Co mpa ny in the c o ming mo nths. Suc h sta te me nts a re g e ne ra lly ide ntifia b le b y the te rmino lo g y use d, suc h a s “ma y”, “will”, “c o uld”, “sho uld”, “wo uld”, “a ntic ipa te '', “b e lie ve '', “inte nd”, “e xpe c t”, “pla n”, “e stima te ”, “b udg e t'', “o utlo o k'' o r o the r simila r wo rding . By its ve ry na ture , suc h fo rwa rd‐lo o king info rma tio n re q uire s the Co mpa ny to ma ke a ssumptio ns tha t ma y no t ma te ria lise o r tha t ma y no t b e a c c ura te . Suc h fo rwa rd‐lo o king sta te me nts invo lve kno wn a nd unkno wn risks, unc e rta intie s a nd o the r impo rta nt fa c to rs b e yo nd the c o ntro l o f the Co mpa ny tha t c o uld c a use the a c tua l pe rfo rma nc e o r a c hie ve me nts o f the Co mpa ny a nd/ o r its re spe c tive sub sidia rie s a nd/ o r its a ffilia te d c o mpa nie s, to b e ma te ria lly diffe re nt fro m a ny future re sults, pe rfo rma nc e o r a c hie ve me nts e xpre sse d o r implie d b y suc h fo rwa rd‐lo o king sta te me nts. Suc h fa c to rs inc lude , b ut a re no t limite d to : inte rpre ta tio n o f re sults a t the Ma dse n Go ld Pro je c t; c ha ng e s in pro je c t pa ra me te rs a s pla ns c o ntinue to b e re fine d; po ssib le va ria tio ns in g ra de o r re c o ve ry ra te s; the c o sts a nd timing o f the de ve lo pme nt o f ne w de po sits; fa ilure o f e q uipme nt o r pro c e sse s to o pe ra te a s a ntic ipa te d; the fa ilure o f c o ntra c te d pa rtie s to pe rfo rm; the timing a nd suc c e ss o f e xplo ra tio n a c tivitie s g e ne ra lly; de la ys in pe rmitting ; po ssib le c la ims a g a inst the Co mpa ny; g e ne ra l b usine ss, e c o no mic , c o mpe titive , po litic a l a nd so c ia l unc e rta intie s; future pric e s o f g o ld a nd o the r me ta l pric e s; c urre nc y e xc ha ng e ra te s a nd inte re st ra te s; fa vo ura b le o pe ra ting c o nditio ns; o b ta ining g o ve rnme nta l a ppro va ls a nd fina nc ing o n time ; o b ta ining re ne wa ls fo r e xisting lic e nc e s a nd pe rmits a nd o b ta ining re q uire d lic e nc e s a nd pe rmits; la b o ur sta b ility; sta b ility in ma rke t c o nditio ns; a va ila b ility o f e q uipme nt; a c c ura c y o f a ny mine ra l re so urc e s; suc c e ssful re so lutio n o f dispute s a nd a ntic ipa te d c o sts a nd e xpe nditure s; the timing o f future e c o no mic studie s; a nd o the r risks o f the mining industry. Ma ny a ssumptio ns a re b a se d o n fa c to rs a nd e ve nts tha t a re no t within the c o ntro l o f the Co mpa ny a nd the re is no a ssura nc e the y will pro ve to b e c o rre c t. F urthe rmo re , the fo rwa rd‐lo o king info rma tio n c o nta ine d in this Pre se nta tio n is ma de a s a t the da te o f this Pre se nta tio n a nd the Co mpa ny do e s no t a c c e pt a ny o b lig a tio n to disse mina te a ny upda te s o r re visio ns to suc h fo rwa rd‐lo o king sta te me nts. T he fo rwa rd‐lo o king info rma tio n c o nta ine d in this Pre se nta tio n is e xpre ssly q ua lifie d b y this c a utio na ry sta te me nt. Alte rna tive pe rfo rma nc e me a sure s a re furnishe d to pro vide a dditio na l info rma tio n. T he se no n-GAAP pe rfo rma nc e me a sure s a re inc lude d in this ne ws re le a se b e c a use the se sta tistic s a re ke y pe rfo rma nc e me a sure s tha t ma na g e me nt use s to mo nito r pe rfo rma nc e , to a sse ss ho w the Co mpa ny is pe rfo rming , to pla n a nd to a sse ss the o ve ra ll e ffe c tive ne ss a nd e ffic ie nc y o f mining o pe ra tio ns. T he se pe rfo rma nc e me a sure s do no t ha ve a sta nda rd me a ning within Inte rna tio na l F ina nc ia l Re po rting Sta nda rds (“ IF
RS”) a nd, the re fo re , a mo unts pre se nte d ma y no t b e c o mpa ra b le to simila r da ta pre se nte d b y o the r mining
c o mpa nie s. T he se pe rfo rma nc e me a sure s sho uld no t b e c o nside re d in iso la tio n a s a sub stitute fo r me a sure s o f pe rfo rma nc e in a c c o rda nc e with IF RS. T he info rma tio n in this Pre se nta tio n o r o n whic h this Pre se nta tio n is b a se d ha s b e e n o b ta ine d, in pa rt, fro m so urc e s tha t the Co mpa ny b e lie ve s to b e re lia b le a nd a c c ura te . Ho we ve r, no ne o f the Co mpa ny, the Co mpa ny’ s dire c to rs, o ffic e rs, e mplo ye e s, its sha re ho lde rs o r a ny o f the ir re spe c tive a dviso rs, o r a ny o the r pe rso n ha s inde p e nde ntly ve rifie d suc h info rma tio n in this Pre se nta tio n a nd no re pre se nta tio n o r wa rra nty, e xpre ss o r implie d, is ma de a s to the fa irne ss, a c c ura c y, c o mple te ne ss o r c o rre c tne ss o f the info rma tio n a nd o pinio ns c o nta ine d in this Pre se nta tio n a s a who le a nd no re lia nc e sho uld b e pla c e d o n suc h info rma tio n o r o pinio ns. Any o pinio ns, pro je c tio ns, e stima te s o r fo re c a sts c o nta ine d in this Pre se nta tio n c o nstitute a judg e me nt o f the Co mpa ny o nly a nd sho uld no t b e re lie d upo n a nd a re pro vide d a s a t the da te o f this Pre se nta tio n a nd a re sub je c t to c ha ng e witho ut no tic e . In g iving this Pre se nta tio n the Co mpa ny do e s no t unde rta ke o r a g re e to a ny o b lig a tio n to pro vide yo u with a c c e ss to a dditio na l info rma tio n o r to upda te the Pre se nta tio n o r to c o rre c t a ny ina c c ura c ie s o r o missio ns fro m this Pre se nta tio n whic h b e c o me a pp a re nt. T
- the e xte nt pe rmitte d b y la w a nd re g ula tio n, ne ithe r the Co mpa ny no r
a ny o ffic e r, dire c to r, e mplo ye e o r re pre se nta tive o f a ny o f the m a c c e pts a ny re spo nsib ility o r lia b ility wha tso e ve r fo r a ny lo ss, da ma g e o r lia b ility ho wso e ve r a rising , dire c tly o r indire c tly, e xpre ss o r implie d, c o ntra c tua l, to rtio us, sta tuto ry o r o the rwise fro m a ny use o f this Pre se nta tio n o r its c o nte nts o r o the rwise a rising in c o nne c tio n the re with. T he re c ipie nt o f this Pre se nta tio n sha ll b e re spo nsib le fo r c o nduc ting its
- wn inve stig a tio n a nd a na lysis o f the info rma tio n c o nta ine d o r re fe rre d to in this Pre se nta tio n a nd fo r e va lua ting the me rits a nd risks invo lve d in the se c uritie s fo rming the sub je c t ma tte r o f this Pre se nta tio n.
T his Pre se nta tio n do e s no t c o nstitute a n o ffe r o f se c uritie s fo r sa le in Austra lia , Ja pa n, the Re pub lic o f Ire land, the Re pub lic o f So uth Afric a o r the Unite d Sta te s o f Ame ric a (e a c h a “ Re str
ic te d T e r r itor y”) o r in a ny
- the r c o untry whe re suc h distrib utio n ma y le a d to a b re a c h o f a ny le g a l o r re g ula to ry re q uire me nt, no r ma y the y b e distrib ute d to pe rso ns (a s de fine d in Re g ula tio n S unde r the Unite d Sta te s Se c uritie s Ac t o f
1933 (a s a me nde d)) with a ddre sse s in the Unite d Sta te s, o r to a ny individua l o utside a Re stric te d T e rrito ry who is a re side nt the re o f in a ny suc h c a se fo r the purpo se o f o ffe r fo r sa le o r so lic ita tio n o r invita tio n to b uy o r sub sc rib e a ny se c uritie s o r in the c o nte xt whe re its distrib utio n ma y b e c o nstrue d a s suc h o ffe r, so lic ita tio n o r invita tio n, in a ny suc h c a se e xc e pt in c o mplia nc e with a ny a pplic a ble e xe mptio n. It is the re spo nsib ility o f e a c h re c ipie nt o utside the Unite d K ing do m to e nsure c o mplia nc e with the la ws o f a nd re g ula tio ns o f a ny re le va nt jurisdic tio n. Ne ithe r this Pre se nta tio n no r a ny c o py o f it ma y b e ta ke n o r tra nsmitte d into o r distrib ute d in the Unite d Sta te s o r to a ny re side nt the re o f. Ne ithe r this pre se nta tio n no r a ny c o py he re o f ma y b e distrib ute d in a ny o the r jurisdic tio ns whe re its distrib utio n ma y b e re stric te d b y la w a nd a ny pe rso ns into who se po sse ssio n this Pre se nta tio n c o me s sho uld info rm the mse lve s a b o ut, a nd o b se rve , a ny suc h re stric tio ns. T he c o nte nt o f the Pre se nta tio n ha s no t b e e n a ppro ve d b y a n a utho rise d pe rso n within the me a ning o f the F ina nc ia l Se rvic e s a nd Ma rke ts Ac t 2000 (“ F
SMA”). Re lia nc e o n the Pre se nta tio n fo r the purpo se o f
e ng a g ing in a ny inve stme nt a c tivity ma y e xpo se a n individua l to a sig nific a nt risk o f lo sing a ll o f the pro pe rty o r o the r a sse ts inve ste d. Any pe rso n who is in a ny do ub t a b o ut the sub je c t ma tte r to whic h the Pre se nta tio n re la te s sho uld c o nsult a pe rso n duly a utho rise d fo r the purpo se s o f F SMA who spe c ia lise s in the a c q uisitio n o f sha re s a nd o the r se c uritie s. T he pre se nta tio n is e xe mpt fro m the g e ne ra l re stric tio n se t o ut in se c tio n 21 F SMA o n the c o mmunic a tio n o f fina nc ia l pro mo tio ns o n the g ro unds tha t it is dire c te d o nly a t (i) pe rso ns o utside the Unite d K ing do m (o the r tha n a ny jurisdic tio n whe re its distrib utio n ma y b e re stric te d b y la w); o r (ii) pe rso ns ha ving pro fe ssio na l e xpe rie nc e in ma tte rs re la ting to inve stme nts who fa ll within the de finitio n o f inve stme nt pro fe ssio na ls in Artic le 19(5) o f the F ina nc ia l Se rvic e s a nd Ma rke ts Ac t 2000 (F ina nc ia l Pro mo tio n) Orde r 2005 (a s a me nde d); o r (iii) pe rso ns in the b usine ss o f disse mina ting info rma tio n within the me a ning o f Artic le 47 o f the F ina nc ia l Se rvic e s a nd Ma rke ts Ac t 2000 (F ina nc ia l Pro mo tio n) Orde r 2005; o r (iv) hig h ne t wo rth b o die s c o rpo ra te , uninc o rpo ra te d a sso c ia tio ns a nd pa rtne rships a nd truste e s o f hig h va lue trusts a s de sc rib e d in Artic le 49(2) o f the F ina nc ia l Se rvic e s a nd Ma rke ts Ac t 2000 (F ina nc ia l Pro mo tio n) Orde r 2005; o r (v) pe rso ns who a re 'pro fe ssio na l c lie nts' a s de fine d in the F CA's Glo ssa ry a nd fo r the purpo se o f c ha pte r 4 o f the F CA's Co nduc t o f Busine ss So urc e b o o k. Any o the r pe rso n who re c e ive s this c o mmunic a tio n sho uld ne ithe r re ly o n no r a c t upo n the c o nte nts o f this c o mmunic a tio n a nd sho uld re turn o r de stro y o r ig no re it imme dia te ly witho ut re pro duc ing , distrib uting o r pa ssing it o n to a ny o the r pe rso n. Ple a se no te tha t info rma tio n in this Pre se nta tio n ma y no t ye t b e a nno unc e d o r o the rwise ma de pub lic a nd a s suc h c o nstitute s no n-pub lic pric e se nsitive info rma tio n fo r the purpo se s o f the Crimina l Justic e Ac t 1993 a nd inside info rma tio n fo r the purpo se s o f the Ma rke t Ab use Re g ula tio n 596/ 2014. Yo u sho uld ke e p c o nfide ntia l the info rma tio n c o nta ine d in this Pre se nta tio n a nd no t de a l in a ny wa y in the se c uritie s o f the Co mpa ny until a fte r the fo rma l re le a se o f a n a nno unc e me nt b y the Co mpa ny a s to do so ma y re sult in c ivil a nd/ o r c rimina l lia b ility. Phil Sme rc ha nski, P.Ge o ., Vic e Pre side nt, E xplo ra tio n fo r the Co mpa ny a nd a “Qua lifie d Pe rso n” unde r Na tio na l Instrume nt 43-101, ha s re vie we d a nd a ppro ve d the sc ie ntific a nd te c hnic a l info rma tio n in this pre se nta tio n. T he Pre se nta tio n is no t inte nde d to b e , a nd sho uld no t b e c o nstrue d a s, a ny a dvic e o n the me rits o f, o r a ny re c o mme nda tio n to a ny re c ipie nt o r re a de r o f this do c ume nt in re la tio n to , the purc ha se o f sha re s in the Co mpa ny. Re c ipie nts a nd re a de rs o f this do c ume nt sho uld se e k the ir o wn inde pe nde nt le g a l, inve stme nt a nd ta x a dvic e a s the y se e fit. By re c e iving this Pre se nta tio n yo u a g re e to b e b o und b y the fo re g o ing limita tio ns. All c ur r e nc ie s ar e r e po r te d in Canadian do llar s unle ss o the r wise spe c ifie d.
F
- rward L
- o king State me nts
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