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F orwa rd L ooking Sta te me nt Ce rta in o f the sta te me nts - - PowerPoint PPT Presentation

F orwa rd L ooking Sta te me nt Ce rta in o f the sta te me nts ma de in this Pre se nta tio n ma y c o nta in fo rwa rd-lo o king sta te me nts o r info rma tio n within the me a ning o f the U nite d Sta te s Priva te Se c uritie s L


slide-1
SLIDE 1

F

  • rwa rd L
  • oking Sta te me nt

Ce rta in o f the sta te me nts ma de in this Pre se nta tio n ma y c o nta in fo rwa rd-lo o king sta te me nts o r info rma tio n within the me a ning o f the U nite d Sta te s Priva te Se c uritie s L itig a tio n Re fo rm Ac t o f 1995 a nd a pplic ab le Ca na dia n se c uritie s la ws. Ofte n, b ut no t a lwa ys, fo rwa rd-lo o king sta te me nts a nd fo rwa rd-lo o king info rma tio n c a n b e ide ntifie d b y the use o f wo rds suc h a s "pla ns", “ta rg e ts”, “ta rg e te d”, "e xpe c ts", "is e xpe c te d", "b udg e t", "sc he dule d", "e stima te s", "fo re c a sts", "inte nds", "a ntic ipa te s", o r "b e lie ve s" o r the ne g a tive s the re o f o r va ria tio ns o f suc h wo rds a nd phra se s o r sta te me nts tha t c e rta in a c tio ns, e ve nts o r re sults "ma y", "c o uld", "wo uld", "mig ht" o r "will" b e ta ke n, o c c ur o r b e a c hie ve d. Fo rwa rd-lo o king sta te me nts o r info rma tio n in this Pre se nta tio n inc lude , b ut a re no t limite d to the pro po se d use o f the funds a ntic ipate d fro m the sa le o f the Co mpa ny’ s Chine se a sse ts, info rma tio n with re spe c t to o ur stra te g y, pla ns, g o a ls a nd o utlo o k fo r o ur pro pe rtie s, inc luding e xpa nsio ns a nd pro duc tio n, o ur future fina nc ial a nd o pe ra ting pe rfo rma nc e a nd ta rg e ts, a nd o ur pro po se d mine de ve lo pme nt a nd e xplo ra tio n a nd o the r e ve nts. Fo rwa rd-lo o king sta te me nts a nd fo rwa rd-lo o king info rma tio n b y the ir na ture a re b a se d o n a ssumptio ns a nd invo lve kno wn a nd unkno wn risks, unc e rta intie s a nd o the r fa c to rs whic h ma y c a use the a c tua l re sults, pe rfo rmanc e o r a c hie ve me nts o f the Co mpa ny to b e ma te rially diffe re nt fro m a ny future re sults, pe rfo rmanc 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 o r info rma tio n. We ha ve ma de c e rta in a ssumptio ns a b o ut the fo rwa rd-lo o king sta te me nts a nd info rmatio n, inc luding a ssumptio ns a b o ut c lo sing o f b o th Chine se sa le tra nsa c tio ns, inc luding lia bility a nd timing o f me e ting the c lo sing c o nditio ns, the po litic al a nd e c o no mic e nviro nme nt tha t we o pe ra te in, the future pric e o f c o mmo ditie s, a ntic ipa te d c o sts a nd e xpe nse s a nd impac t o f the dispo sitio n o n the b usine ss. E ve n tho ug h o ur ma na g e me nt b e lie ve s tha t the a ssumptio ns ma de a nd the e xpe c ta tio ns re pre se nte d b y suc h sta te me nts

  • r info rmatio n a re re a so na b le , the re c a n b e no a ssura nc e tha t the fo rwa rd-lo o king sta te me nt o r info rma tio n will pro ve to b e a c c ura te . Furthe rmo re , sho uld o ne o r mo re o f the risks,

unc e rta intie s o r o the r fa c to rs ma te rialize , o r sho uld unde rlying a ssumptio ns pro ve inc o rre c t, a c tua l re sults ma y va ry ma te rially fro m tho se de sc rib e d in fo rwa rd-lo o king sta te me nts o r info rmatio n. T he se risks, unc e rta intie s a nd o the r fa c to rs inc lude , a mo ng o the rs, the fo llo wing : c lo sing o f the tra nsa c tio ns no t o c c urring o r de la ye d, po litic al, e c o no mic , e nviro nme nta l a nd pe rmitting risks, g o ld pric e vo la tility, disc re pa nc ie s b e twe e n a c tua l a nd e stima te d pro duc tio n, e stimate d mine ral re se rve s a nd re so urc e s a nd me ta llurg ic al re c o ve rie s, mining o pe ra tio na l a nd de ve lo pme nt risks, litig atio n risks, re g ula to ry re stric tio ns, inc luding e nviro nme nta l a nd pe rmitting re g ula to ry re stric tio ns a nd lia bilitie s, inte rna l a nd e xte rna l a ppro va l risks, risks o f so ve re ig n inve stme nt, risks re la te d to c urre nc y fluc tuatio ns, spe c ula tive na ture o f g o ld e xplo ra tio n, g lo b a l e c o no mic c lima te , dilutio n, sha re pric e vo la tility, c o mpe titio n, lo ss o f ke y e mplo ye e s, a dditio nal funding re q uire me nts, a nd de fe c tive title to mine ral c laims o r pro pe rty, a s we ll a s tho se fa c to rs disc usse d in the se c tio ns e ntitle d “Fo rwa rd-L

  • o king Sta te me nts” a nd "Risk Fa c to rs" in

the Co mpa ny's Annua l I nfo rma tio n Fo rm & Fo rm 40-F da te d Ma rc h 30, 2017. T he re c a n b e no a ssura nc e tha t fo rwa rd-lo o king sta te me nts o r info rma tio n will pro ve to b e a c c ura te , a s a c tua l re sults a nd future e ve nts c o uld diffe r ma te rially fro m tho se a ntic ipate d in suc h sta te me nts. Ac c o rding ly, yo u sho uld no t pla c e undue re lianc e o n the fo rwa rd-lo o king sta te me nts o r info rma tio n c o nta ine d he re in. E xc e pt a s re q uire d b y la w, we do no t e xpe c t to upda te fo rwa rd-lo o king sta te me nts a nd info rma tio n c o ntinua lly a s c o nditio ns c ha ng e a nd yo u a re re fe rre d to the full disc ussio n o f the Co mpa ny's b usine ss c o nta ine d in the Co mpa ny's re po rts file d with the se c uritie s re g ula to ry a utho ritie s in Ca na da a nd the U .S. All fo rwa rd-lo o king sta te me nts a nd info rma tio n c o nta ine d in this Pre se nta tio n a re q ua lifie d b y this c a utio na ry sta te me nt. Ca utio na ry No te to U .S. I nve sto rs: Mine ral Re se rve s a nd Mine ral Re so urc e s - T he te rms "mine ra l re se rve ", "pro ve n mine ra l re se rve " a nd "pro b a b le mine ral re se rve " re fe rre d to in the Co mpa ny's disc lo sure a re Ca na dia n mining te rms a s de fine d in a c c o rda nc e with Na tio na l I nstrume nt 43-101 - Sta nda rds o f Disc lo sure fo r Mine ral Pro je c ts unde r the g uide line s se t o ut in the Ca na dia n I nstitute o f Mining , Me ta llurg y a nd Pe tro le um (the "CI M") Sta nda rds o n Mine ral Re so urc e s a nd Mine ral Re se rve s, a do pte d b y the CI M Co unc il a s a me nde d fro m time to time b y the CI M. T he se de finitio ns diffe r fro m the de finitio ns in the U nite d Sta te s Se c uritie s & E xc ha ng e Co mmissio n ("SE C") Guide 7. U nde r SE C Guide 7 sta nda rds, a “fina l” o r “b a nka b le ” fe a sib ility study is re q uire d to re po rt re se rve s, the thre e -ye a r histo ric a ve ra g e pric e is use d in a ny re se rve o r c a sh flo w a na lysis to de sig na te re se rve s a nd the primary e nviro nme nta l a na lysis o r re po rt must b e file d with the a ppro priate g o ve rnme nta l a utho rity. T he te rms "mine ra l re so urc e ", "me a sure d mine ral re so urc e ", "indic a te d mine ra l re so urc e ", "infe rre d mine ra l re so urc e " use d in the Co mpa ny's disc lo sure a re Ca na dia n mining te rms use d in a c c o rda nc e with Na tio na l I nstrume nt 43-101 - Sta nda rds o f Disc lo sure fo r Mine ral Pro je c ts unde r the g uide line s se t o ut in the CI M Sta nda rds. Mine ral re so urc e s whic h a re no t mine ral re se rve s do no t ha ve de mo nstra te d e c o no mic viab ility. T his pre se nta tio n ma ke s re fe re nc e to the L a ma q ue Pro je c t pre limina ry e c o no mic a sse ssme nt, whic h is pre limina ry in na ture , a nd inc lude s infe rre d mine ral re so urc e s tha t a re c o nside re d to o spe c ula tive g e o lo gic ally to ha ve the e c o no mic c o nside ra tio ns a pplie d to the m tha t wo uld e na b le the m to b e c a te g o rize d a s mine ral re se rve s, a nd the re is no c e rta inty tha t the pre limina ry e c o no mic a sse ssme nt will b e re a lize d. While the te rms "mine ra l re so urc e ", "me a sure d mine ral re so urc e ," "indic a te d mine ra l re so urc e ", a nd "infe rre d mine ral re so urc e " a re re c o g nize d a nd re q uire d b y Ca na dia n re g ulatio ns, the y a re no t de fine d te rms unde r sta nda rds in the U nite d Sta te s a nd no rma lly a re no t pe rmitte d to b e use d in re po rts a nd re g istra tio n sta te me nts file d with the SE

  • C. As suc h, info rma tio n

c o nta ine d in the Co mpa ny's disc lo sure c o nc e rning de sc riptio ns o f mine ra liza tio n a nd re so urc e s unde r Ca na dia n sta nda rds ma y no t b e c o mpa ra ble to simila r info rma tio n ma de pub lic b y U .S c o mpa nie s in SE C filing s. With re spe c t to "infe rre d mine ral re so urc e " the re is a g re a t a mo unt o f unc e rta inty a s to the ire xiste nc e a nd a g re a t unc e rta inty a s to the ir e c o no mic a nd le g a l fe a sib ility. I t c a nno t b e a ssume d tha t a ll o r a ny pa rt o f a n "infe rre d mine ral re so urc e " will e ve r b e upg ra de d to a hig he r c a te g o ry. I nve sto rs a re c a utio ne d no t to a ssume tha t a ny pa rt o r a ll

  • f mine ral de po sits in the se c a te g o rie s will e ve r b e c o nve rte d into re se rve s.

Pa ul Ska yman, Chie f Ope ra ting Offic e r o f E ldo ra do Go ld Co rpo ra tio n, is the “Qua lifie d Pe rso n” fo r the purpo se s o f Na tio na l I nstrume nt 43-101 - Sta nda rds o f Disc lo sure fo r Mine ral Pro je c ts o f the Ca na dia n Se c uritie s Administra to rs who ha s re vie we d, a ppro ve d a nd ve rifie d the sc ie ntific a nd te c hnic a l info rma tio n in this Pre se nta tio n. He rvé T hib o uto t, E ng ., Se nio r Vic e -Pre side nt o f I nte g ra Go ld Co rp., is the inde pe nde nt “Qua lifie d Pe rso n” fo r the purpo se s o f Na tio na l I nstrume nt 43-101 - Sta nda rds o f Disc lo sure fo r Mine ral Pro je c ts o f the Ca na dia n Se c uritie s Administra to rs who ha s re vie we d, a ppro ve d a nd ve rifie d the sc ie ntific a nd te c hnic a l info rmatio n in this Pre se nta tio n spe c ific to the L a ma q ue Pro je c t.

slide-2
SLIDE 2

T ra nsa c tion Summa ry

  • E

a c h Inte g ra sha re ho lde r will re c e ive , a t the ir o ptio n, fo r e a c h Inte g ra sha re the y o wn e ithe r (i) 0.24250 E ldo ra do sha re s, (ii) C$1.21250 in c a sh, in b o th (i) a nd (ii) sub je c t to pro ra tio n, o r (iii) 0.18188 o f a n E ldo ra do sha re a nd C$0.30313 in c a sh

  • T
  • ta l c o nside ra tio n o f a ppro xima te ly C$590 millio n1 c o nsisting o f 76.9 millio n E

ldo ra do sha re s a nd C$129 millio n c a sh Str uc tur e Offe r Pr e mia Othe r T e r ms Conditions T ime line

  • Pre mium o f 52% o ve r the c lo sing pric e o f Inte g ra o n Ma y 12, 2017
  • Pre mium o f 46% b a se d o n 20-da y vo lume we ig hte d a ve ra g e pric e s o f b o th c o mpa nie s fo r

the 20 da y pe rio d e nding Ma y 12, 2017

  • Bre a k fe e o f a ppro xima te ly C$18 millio n to E

ldo ra do unde r c e rta in c irc umsta nc e s

  • No so lic ita tio n a nd rig ht to ma tc h
  • Vo ting suppo rt fro m Inte g ra dire c to rs a nd se nio r o ffic e rs
  • 66 2/ 3% Inte g ra sha re ho lde r a ppro va l
  • A simple ma jo rity o f Inte g ra sha re ho lde rs, e xc luding E

ldo ra do a nd c e rta in o the r sha re ho lde rs

  • Re g ula to ry a nd c o urt a ppro va ls
  • Ma iling o f c irc ula r: June 2017
  • Inte g ra sha re ho lde r vo te : July 2017
  • T

ra nsa c tio n c lo se : July 2017

1

So urc e : Blo o mb e rg , F a c tSe t, c o mp a ny d isc lo sure 1. T

  • ta l c o nsid e ra tio n inc lud e s 62.2M I

nte g ra sha re s he ld b y E ld o ra d o Go ld

slide-3
SLIDE 3

T ra nsa c tion Ra tiona le

2

CANADA UNIT E D ST AT E S OF AME RICA

T OR ONT O MONT R E AL

L a ma que

VAL D’OR

Atlantic Oc e an

SUDBURY T IMMINS

T immins

KIRKL AND L AKE

L a Ro nde Ca na dia n Ma la rtic

L a ma que

Go lde x

VAL D’OR

Abitibi Gre e nstone Be lt North Ame ric a

 Adds a high quality de ve lopme nt pr

  • je c t that has the

pote ntial to add me aningful ne ar

  • te r

m pr

  • duc tion and

c ash flow with mode st upfr

  • nt c apital

 E

stablishe s an ope r ating pr e se nc e in Canada and dive r sifie s the ope r ating por tfolio into one the most pr

  • duc tive

mining c amps in the wor ld

 E

ldor ado maintains the fle xibility to fund its de ve lopme nt pipe line

 Inc ome tax and G&A syne r

gie s with the addition of a futur e mining

  • pe r

ation in Canada

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SLIDE 4

Ove rvie w of the L a ma que PE A

3

L

  • c ation Map

So urc e : I nte g ra NI 43-101 Pre limina ry E c o no mic Asse ssme nt, file d o n SE DAR o n Ap ril 13, 2017 a nd e ffe c tive F e b rua ry 27, 2017

  • 1. T

he sc ie ntific a nd te c hnic a l info rma tio n p ro vid e d a b o ve ha s b e e n re vie we d a nd a p p ro ve d b y He rvé T hib o uto t, E ng ., Se nio r Vic e -Pre sid e nt o f I nte g ra Go ld Co rp ., who is a n ind e p e nd e nt q ua lifie d p e rso n und e r Na tio na l I nstrume nt 43-101 ("NI 43-101").

Opera ting Metric s

Da ily T hro ug hp ut 1,675 tp d T

  • ta l T
  • nnes Mined

6.3 Mt Go ld Hea d Gra d e 6.96 g / t L ife o f Mine 10.3 yea rs Avera g e Rec o very 93.6% Avg . L OM Annua l Pro d uc tio n 123 ko z Avg . Annua l Pro d . (Yea r 3 to 10) 135 ko z Pea k Pro d uc tio n (Yea r 7) 155 ko z

Ca sh Costs a nd Initia l Ca pita l

C a sh C o st C $595 (U S$458) All in Susta ining C o st (AI SC ) C $824 (U S$634) I nitia l C a p ita l Req uirem ent C $175 (U S$136)

F ina nc ia l Metric s

Go ld Pric e (U S$ p er Oz) U S$1,250 E xc ha ng e Ra te (C $ / U S$) 1.30 After-T a x NPV(5% Disc o unt Ra te) C $362.5M After-T a x I nterna l Ra te o f Return 43% After-T a x Pa yb a c kPerio d 4.2

Summary of Ke y Me tric s

5 km

slide-5
SLIDE 5

Summa ry of L a ma que Re sourc e s

4

So urc e : I nte g ra NI 43-101 te c hnic a l re p o rt, file d o n SE DAR o n Ma y 5, 2017 a nd e ffe c tive Ma rc h 22, 2017

  • 1. T

he sc ie ntific a nd te c hnic a l info rma tio n p ro vid e d a b o ve ha s b e e n re vie we d a nd a p p ro ve d b y He rvé T hib o uto t, E ng ., Se nio r Vic e -Pre sid e nt o f I nte g ra Go ld Co rp ., who is a n ind e p e nd e nt q ua lifie d p e rso n und e r Na tio na l I nstrume nt 43-101 ("NI 43-101").

5g / t c ut-o ff Au Indic a te d Re so urc e s Infe rre d Re so urc e s De po sit To nne s Gra de (g / t Au) Co nt. (o zs) To nne s Gra de (g / t Au) Co nt. (o zs)

T ria ng le

4,004,700 9.24 1,189,550 2,501,100 7.85 631,200

No . 4 Plug

300,417 8.56 82,634 579,432 8.59 160,028

Pa ra llel

426,800 10.29 141,210 184,100 7.70 45,560

No . 6 Vein

201,300 7.90 51,280 239,800 7.50 58,080

F

  • rtune

155,000 6.30 31,620 9,400 6.60 1,990

Sixteen

41,800 6.90 9,250 400 6.40 90

To ta l 5,130,017 9.13 1,505,544 3,514,232 7.94 896,948 3g / t c ut-o ff Au Indic a te d Re so urc e s Infe rre d Re so urc e s De po sit To nne s Gra de (g / t Au) Co nt. (o zs) To nne s Gra de (g / t Au) Co nt. (o zs)

T ria ng le

6,262,000 7.32 1,473,530 5,441,000 5.67 991,800

No . 4 Plug

505,448 6.67 108,443 915,903 6.84 201,464

Pa ra llel

761,100 7.48 182,920 382,100 5.72 70,290

No . 6 Vein

462,800 5.60 83,450 362,000 6.40 74,240

F

  • rtune

330,200 5.10 53,660 28,100 4.60 4,160

Sixteen

91,700 5.20 15,440 1,800 4.20 250

To ta l 8,413,248 7.09 1,917,443 7,130,903 5.86 1,342,204