Forth quarter and FY 2011 results presentation February 24 th 2012 - - PowerPoint PPT Presentation

Forth quarter and FY 2011 results presentation

February 24th 2012

These materials are confidential and have been prepared by Nord Gold N.V. (“Nordgold”) solely for your information and may not be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any other purpose. These materials may contain projections and other forward-looking statements regarding future events or the future financial performance of Nordgold. You can identify forward-looking statements by terms such as “expect,” “believe,” “estimate,” “intend,” “will,” “could,” “may” or “might”, or other similar expressions. Nordgold cautions you that these statements are only predictions and that actual events or results may differ materially. Nordgold will not update these statements to reflect events and circumstances occurring after the date hereof. Factors that could cause the actual results to differ materially from those contained in projections or forward-looking statements of Nordgold may include, among others, general economic and competitive environment conditions in the markets in which Nordgold operates, market change in the gold industry, as well as many other risks affecting Nordgold and its operations. These materials do not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any securities of Nordgold in any jurisdiction, nor shall they or any part of them nor the fact of their presentation, communication or distribution form the basis of, or be relied on in connection with, any contract or investment decision. No representation or warranty, express or implied, is given by Nordgold, its affiliates or any of their respective advisers, officers, employees or agents, as to the accuracy

• f the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of these materials or their contents.

Disclaimer

2

Nikolai Zelenski Chief Executive Officer

Results at a Glance

4

Summary of Quarterly and Full Year Results

Average realised gold price of US$ 1,567 / oz, up 25% accompanied with the production increase by 28% to 754 koz with moderate increase in TCC of 23% Revenue of US$ 1,182m, up 57% vs. 2010 (US$ 754m) EBITDA of US$ 574m, up 55% vs. 2010 (US$ 370m) Cash and equivalents slightly increased compared to 2010 (US$ 217m vs. US$ 212m) providing the comfortable liquidity cushion Gold equivalent resources of over 24 moz with further growth anticipated after new MER released in March/April 2012 Successful listing of GDRs on the London Stock Exchange in January 2012 (ticker: NORD) with 10.6% free float

FY 2011 vs. FY 2010 Analysis 4Q2011 vs. 4Q2010 Analysis

Average realised gold price of US$ 1,652 / oz, up 19% accompanied with the production increase by 5% to 204 koz with and moderate increase in TCC of 12% Revenue of US$ 385m up 43%, vs. 4Q2010 (US$ 269m) EBITDA of US$ 195m, up 43% vs. 4Q2010 (US$ 136m) Bissa project construction in Burkina Faso progressing rapidly with engineering works mostly completed; on track to deliver first gold in early 2013 Gross project in Russia on track to complete pre-feasibility in May/June 2012

5

FY2010-FY2011 Production Bridge

Robust Production Growth

4Q 2010–4Q 2011 Production Bridge Key FY2011 Production Highlights 4Q 2011 Production Highlights

» 2011FY production at 754 koz, 28% higher than last year and on the upper end of the guidance » 2011 production growth was primarily driven by the consolidation

• f the LEFA mine coupled with the higher productivity at key

mines – Berezivovy and Neryungri » Targeted 2012 production of of 800–850 koz » Key 2012 growth drivers: further debottlenecking of LEFA coupled with the operational improvement and productivity increase of Russian mines » 4Q production at 204 koz gold equivalent ounces, 14% ahead of 3Q 2011 and 5% up form 4Q 2010 » Production decline on the West African mines in 4Q 2011 compared to 4Q 2010 was more than compensated by the growth on Russian and Kazakhstan assets » Our African operations showed a sensible decrease during Q4 2011  Guinean LEFA mine faced lower grades and associated decrease in recoveries  Production volumes were also affected by repair works in December at our Taparko mine located in Burkina Faso

589 122 5 5 14 5 36 2 754 400 450 500 550 600 650 700 750 800 FY2010 LEFA Taparko Suzdal Neryungri Aprel- kovo Berezi- tovy Buryat- zoloto FY2011 194 6 9 15 1 2 13 204 100 120 140 160 180 200 Q42010 LEFA Taparko Suzdal Neryungri Aprel- kovo Berezi- tovy Buryat- zoloto Q42011

Financial Performance Indicators

6

Average realized gold price (US$ /oz)

1,384 1,652 1,251 1,567 4Q 2010 4Q 2011 FY2010 FY2011

Revenue (US$ m)

+25% +19% 269 385 754 1,182 4Q 2010 4Q 2011 FY2010 FY2011 +57% +43%

Revenue Breakdown (US$ m)

FY2010 by geography

100%=US$ 754m

FY2011 by geography

100%=US$ 1,182m

52% 13% 21% 14% Guinea 46% 26% 17% 11% Russia Burkina Faso Kazakhstan Russia Guinea Kazakhstan Burkina Faso

» Growing gold demand from the developing economies and unstable macroeconomic environment were the key drivers for the gold price rally observed in 2011 » Average realized gold price was up 25% in 2011 versus 2010 reaching US$ 1,567 / oz » 2011 revenue of US$ 1,182m was up 57% from 2010 (US$ 754m) driven by a higher realised gold prices and increased production of 754k oz (up 28% year-on-year) » In 2011 54% of revenue was originated outside of Russia, with Africa as main contributor with 43%, compared to 34% in 2010

Financial Performance Indicators

7

Total Cash Cost (US$ /oz)

636 715 557 687 4Q 2010 4Q 2011 FY2010 FY2011

EBITDA (US$ m)

+23% +13% 136 195 370 574 4Q 2010 4Q 2011 FY2010 FY2011 +55% +43%

EBITDA Margin

51% 51% 49% 49% 4Q 2010 4Q 2011 FY2010 FY2011

» Continued success in driving mine efficiency and

• perational improvement resulted in an EBITDA increase
• f 55% in 2011 to US$ 574m

» TCC increase was compensated by the growing realised gold prices and supported industry-high EBITDA margin » Cash costs has moderately increased in 2011 as a result of increase in production cash costs at Lefa and Suzdal mines embittered with the fixed costs incurred by low production volumes. Cash costs were considerable effected by full year consolidation of higher cost Lefa mine

35% 29% 36% 32% 29% 39%

Financial Performance Indicators

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Capital Expenditures Breakdown (US$ m)

102 184 249 398 4Q 2010 4Q 2011 FY2010 FY2011 +60% +80%

Operating Cash Flow(US$ m) Capital expenditures (US$ m)

33 83 105 204 56 123 170 319 4Q 2010 4Q 2011 FY2010 FY2011 Other Capex Exploration +87% +118%

» The business continues to generate significant cashflows reflecting healthy and efficient underlying operations. In 2011 operating cashflow increased by 60% to a record US$ 398m » Strong cashflow is central to our longer term strategy enabling us to efficiently fund mine expansions and value accretive acquisitions, whilst also maintaining the capacity to return surplus cash to shareholders as appropriate » Nordgold has a focused capex strategy which aims to deliver growth from both existing and new assets. In 2011, capex was US$ 319m, with a particular focus on Nordgold’s key development projects: LEFA, Gross and Bissa

FY2010 by objective

100%=US$ 168m

FY2011 by objective

100%=US$ 319m Safety, facilities balancing, replacement of equipment Development Exploration and evaluation

Operational Update

Buryatzoloto 18% Berezitovy 14% Neryungri & Aprelkovo 16% Taparko 13% LEFA 24% Celtic & Semgeo 15% Buryatzoloto 19% Berezitovy 8% Neryungri & Aprelkovo 18% Taparko 19% LEFA 28% Celtic & Semgeo 8% Buryatzoloto 18% Berezitovy 14% Neryungri & Aprelkovo 14% LEFA 26% Taparko 17% Celtic & Semgeo 11% Buryatzoloto 23% Berezitovy 12% Neryungri & Aprelkovo 16% Taparko 22% LEFA 12% Celtic & Semgeo 15%

10 FY2010-FY2011 Production Breakdown

Diversified Production Base

4Q 2010-4Q 2011 Production Breakdown Key Production Highlights » We continue to follow global diversification path with a particular focus on Russia, CIS and West Africa » Traditionally most of the production is concentrated in Russia and CIS region (c. 57% in 2011) » Share of the West African business has significantly increased for the past year (from 34% in 2010 to 43% in 2011) » Launch of the key Nordgold’s growth projects Bissa and Gross as well as further debottlenecking of LEFA mine will further drive production shift to West Africa leading to a more balanced geographical structure

2011 754 koz 2010 589koz 4Q 2011 204koz 4Q 2010 194koz

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Production Results for the Fourth Quarter and Full Year 2011

(1) Gold equivalent (based on 1:45Ag/Au rate for FY 2011. Silver production amounts 7 koz in gold equivalent for the full year 2011 (2) Including production at LEFA for August – December 2011

» Q4 production at 204 koz, 14% ahead of Q3 2011 and 5% up from Q4 2010 » 2011 production at 754 koz, 28% ahead of the same period last year and on the upper end of the guidance » Extensive capex programme delivering strong progress:  Bissa project construction in Burkina Faso progressing rapidly with engineering works mostly completed; on track to deliver first gold in H1 2013  Gross project in Russia scheduled to complete pre-feasibility phase soon  Exploration activity with a approximately spend of $124m for the year and the new Mineral Expert Report to be published in Q2 2012 » Production plan of 800-850 koz for 2012

Q4 2011 Q4 2010 Change (%) FY 2011 FY 2010(2) Change (%) Mining Run of mine 000'm.3 8,369 7,532 11% 31,359 23,791 32% Ore mined Kt 3,560 3,850 (8%) 15,250 10,511 45% Open-pit Kt 3,318 3,584 (7%) 13,978 9,326 50% Underground Kt 242 266 (9%) 1,059 978 8% Milling Ore processed Kt 3,491 3,464 1% 15,562 9,671 61% Head grade milled g/t 1.87 2.07 (10%) 1.85 2.31 (20%) Recovery % 80% 82% 81% 81% 0% Gold produced(1) Koz 204 194 5% 754 589 28% Gold sold Koz 233 194 20% 755 603 25% Average price realised US$ /oz 1,652 1,384 19% 1,567 1,251 25% Revenue US$ m 386 269 43% 1,182 754 57%

Sergey Zinkovich Chief Financial Officer

Financial Review

Financial Highlights

13

Source: Nordgold Note: FY 2011 results based on published trading update for FY 2011 and management expectations (1) Unallocated corporate costs not attributable to a specific segment

Nordgold’s successful restructuring of assets is exemplified by significantly improved KPIs

Selected Financials by Segment (US$ m) Revenue Breakdown by Region (FY 2011) EBITDA Breakdown by Region (FY 2011)

4Q 2010 4Q 2011 Change 2010 2011 Change Revenue Buryatzoloto 49 79 61% 178 210 18% Taparko 50 45 (10%) 157 205 31% Celtic & Semgeo 22 50 127% 107 130 21% Berezitovy 23 64 178% 90 166 84% Neryungri & Aprelkovo 49 65 33% 124 167 35% LEFA 76 82 8% 99 304 207% Total revenue 269 385 43% 754 1,182 57% EBITDA Buryatzoloto 28 46 64% 91 128 41% Taparko 34 29 (15%) 106 137 29% Celtic & Semgeo 19 23 21% 68 55 (19%) Berezitovy 5 41 720% 32 97 203% Neryungri & Aprelkovo 27 39 44% 53 83 57% LEFA 29 27 (7%) 30 107 257% Unallocated costs(1) (6) (10) (10) (33) Total EBITDA 136 195 44% 370 574 60% EBITDA margin 51% 51% 49% 49%

Russia 46% Guinea 26% Taparko 17% Kazakhstan 11% Russia 51% Guinea 18% Taparko 22% Kazakhstan 9%

Nordgold TCC by Mine Analysis

Nordgold Cash Cost Curve (2010) Nordgold Cash Cost Curve (2011) Nordgold Cash Cost Curve (4Q 2010)

14

Nordgold Cash Cost Curve (4Q 2011)

In 2012 Nordgold anticipates overall TCC to be in a range of US$ 680-750 / oz

100 200 300 400 500 600 700 800 900 50 100 150 200 250 300 350 400 450 500 550 393 510 522 555 628 713 773 Production, koz Total Cash Costs, US$ /oz Taparko Suzdal Buryatzoloto Neryungri Aprelkovo Berezitovy LEFA

Average TCC: US$ 557 / oz Average TCC (ex. LEFA): US$ 526 / oz

100 200 300 400 500 600 700 800 900 1,000 1,100 20 40 60 80 100 120 140 160 180 Total Cash Costs, US$ /oz 437 464 530 629 773 892 1,009 Taparko Neryungri Buryatzoloto Suzdal Aprelkovo Berezitovy LEFA Production, koz

Average TCC: US$ 636 / oz Average TCC (ex. LEFA): US$ 593 / oz

100 200 300 400 500 600 700 800 900 1,000 1,100 20 40 60 80 100 120 140 160 180 Production, koz Taparko Berezitovy Neryungri Aprelkovo Buryatzoloto Suzdal LEFA Total Cash Costs, US$ /oz

Average TCC: US$ 715 / oz Average TCC (ex. LEFA): US$ 642 / oz

548 570 597 664 675 903 908 100 200 300 400 500 600 700 800 900 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 Total Cash Costs, US$ /oz Production, koz 476 Taparko Berezitovy Neryungri Aprelkovo Buryatzoloto Suzdal LEFA

Average TCC: US$ 687 / oz Average TCC (ex. LEFA): US$ 615 / oz

846 591 611 655 672 777

15

In 2008-2011 Nordgold invested US$ 690m

Capital expenditure budget (US$ m)

Nordgold’s existing operations are nearly fully funded and will require mostly maintenance capex going forward After 2012 maintenance capex will not to exceed US$ 90m 1 Exploration will continue to remain a significant part of Nordgold’s capex program for the foreseeable future 3

Nordgold will leverage its mining track record to deliver its investment program on time and on budget

‘11 –‘13 focus on the LEFA mine turnaround and launching the new generation of deposits, including Gross and Bissa, into production 2

Capex to Deliver Growth from Existing and New Assets

2008(1) 2009 2010(2) 2011E(3) 2012E LEFA – – 14 48 37 Taparko 2 6 7 7 16 Celtic & Semgeo 31 23 36 15 13 Neryungri-Metallic 20 14 7 21 10 Berezitovy – 11 20 16 13 Buryatzoloto 2 9 13 15 23 Aprelkovo 11 5 5 9 7 Gross – – – 1 64 Bissa – – – 70 174 Other – – 1 2 1 Total (ex. Exploration) 66 66 103 204 358 Exploration 33 33 65 115 114 Total 99 99 168 319 472

(1) Includes High River Gold capex for December 2008 only (2) Includes LEFA capex for 4 months only (3) Unaudited data

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Balance Sheet Strength

US$ m 2010 2011 Change 3Q 2011 4Q 2011 Change Cash & Equivalents 212 217 2% 184 217 18% Current Assets 568 731 29% 695 731 5% Total Assets 2,477 2,648 7% 2,570 2,648 3% Short-term Debt 281 316 12% 374 316 (16%) Current Liabilities 468 532 14% 562 532 (5%) Long-term Debt 116 84 (28%) 65 84 29% Total Debt 397 400 1% 440 400 (9%) Equity att. to shareholders 1,392 1,515 9% 1,450 1,515 4% Total Equity 1,623 1,756 8% 1,673 1,756 5% Net Debt 185 183 (1%) 255 183 (28%)

Key Balance Sheet Statistics December 2011 Total Debt Structure Comments

Debt Position Dynamics

440 400 255 183 0.5x 0.3x 3Q 2011 4Q 2011 Total Debt Net Debt Net Debt / LTM EBITDA

Related Party Loans 85% Notes and bonds 15% EUR 72% USD 13% RUB 12% NOK 3%

Debt Structure (by Lenders) Debt Structure (by Currency)

» Over the last year Nordgold obtained a solid growth over most of the key balance sheet lines: assets increased by 7%, cash by 2%, shareholders’ equity rose by 9% » Nordgold has significantly improved leverage ratios over the past quarter driven by the 28% reduction in net debt and improved LTM EBITDA » Dominant portion of our debt is currently related-party debt from Severstal Group entities at close to market rates  Nordgold explores the opportunities to refinance this debt from the third parties in the near term

Nikolai Zelenski Chief Executive Officer

Looking into 2012

Key Operating and Financial Statistics

18

Outlook and Priorities for 2012

Unit Lefa Taparko Berezitovy Suzdal Buryat- zoloto Neryungri- Metallic Aprelkovo Bissa Gross Other Total Ore mined (kt) 8,376 1,745 1,698 500 558 2,899 1,367 –

– –

17,143 Ore milled (kt) 7,080 1,685 1,768 540 700 2,899 3,050 –

– –

17,722 Grade (g/t) 1.2 3.0 2.1 6.3 6.4 1.2 0.8 –

– –

– Recovery (%) 85-87 85-88 85-89 65-71 90-93 75 50 –

– –

– Gold production (koz) 210-225 140-150 110-117 90-101 130-138 80-90 30-39 –

– –

800-850 Cash costs(3) (US$ /oz) 802 456 685 802 688 552 788 –

– –

680-750 Capex US$ m 51 28 17 13 46 23 11 187 64 32 472 Exploration US$ m 14 12 4 22 13 4 13 31 114 Other US$ m 37 16 13 13 23 10 7 174 64 1 358

Comments and Key 2012 Priorities

» Nordgold expects to produce 800 – 850 koz of gold equivalent in 2012 » Total cash costs per ounce in 2012 are expected to be in the range of US$ 680 to US$ 750 » LEFA: works to increase recovery; series of measures in order to negate the impact of the rainy season; new management team was hired to drive the changes » Bissa: engineering and design phase was completed; mills to be delivered in summer 2012; on track to start production in H1 2013 » Gross: test work has been successfully completed; pre- feasibility to be completed in May/June 2012

Nordgold cash cost curve (2012)(1)

100 200 300 400 500 600 700 800 900

5… 1… 1… 2… 2… 3… 3… 4… 4… 5… 5… 6… 6… 7… 7… 8… 8… Total Cash Costs, US$ /oz Taparko Neryungri-Metalliс Berezitovy Buryatzoloto Aprelkovo LEFA Suzdal Average TCC (ex. LEFA): US$ 639 / oz Average TCC: US$ 682 / oz 456 552 685 688 788 802 802 Production, koz

(1) Management estimates

Appendix

Diverse Portfolio of Quality Producing Assets

20

(1) Buryatzoloto comprises of two producing mines, Zun-Holba and Irokinda. 2011E production approximately 50 /50 between the two producing mines (2) Zun Holba and Irokinda (together “Buryatzoloto”) split 50/50 for illustrative purposes 30 67 67 73 82 107 133 196 Aprelkovo Irokinda Zun-Holba Neryungri Suzdal Berezitovy Taparko LEFA Total

Nordgold’s geographic diversity significantly reduces country, operating and technical risks

2011 Gold Production (koz)

Buryatzoloto(1)

Top 4 producing assets span across 4 countries

(2) (2)

754

Russia Kazakhstan

Suzdal Berezitovy Neryungri (Tabornoe) Aprelkovo (Pogromnoe) Irokinda Zun-Holba Guinea Burkina Faso

West Africa

LEFA Taparko

Russia

Russia 37% Kazakhstan 9% Africa 54%

Taparko 1 8% Suzdal 1 1 % Berezitovy 1 4% Buryatzoloto 1 8% Neryungri 1 0% Aprelkovo 4% LEFA 28%

2009 534koz (3)

Rapid Growth Since Inception in 2007

1 % Aprelkovo 5% Neryungri 9% Buryatzoloto 29% Berezitovy 1 6% Suzdal 22% Taparko 1 8% Aprelkovo 1 5% Neryungri 1 9% Buryatzoloto 5% Berezitovy 3% Suzdal 55% Taparko 3%

2008 193koz (2)



Acquires Celtic Resources



Expands into West Africa acquiring High River Gold



Optimisation and integration

• f assets



Forms integrated business model

2013E 1 moz (5)

Most Dynamic Gold Story in the Sector

Taparko 21 % Suzdal 1 5% Berezitovy 1 2% Buryatzoloto 23% Neryungri 1 0% Aprelkovo 6% LEFA 1 2% Silver 1 % (1) Aprelkovo and Neryungri on a 100% consolidated basis as of December 2007 (2) Taparko, Berezitovy and Buryatzoloto production included as of acquisition in November 2008 (3) Figures on a 100% consolidated basis. Includes 5,354 gold equivalent ounces (“GEoz”) of silver production. (4) Includes production from acquisition of LEFA (Guinea) as of August 2010 and 4,248 GEoz of silver production. (5) According to Company’s preliminary guidance

2010 589koz (4)



Acquires Crew Gold – further expanding in West Africa and diversifying resource base

2011 754 koz



Next successful year of

• ptimisation and substantial

growth of resource base

Russia Kazakhstan Africa Silver

In 4 years, Nordgold has evolved into a leading, internationally diversified gold producer

 Expanded into 4 countries  Completed 4 acquisitions  More than doubled the resource base to 22.6 moz  Reached c. 50% production

• utside Russia

 Rapid production growth 07–11E CAGR 145%  Bissa construction  Gross construction  Lefa turnaround  Suzdal plant expansion  Taparko debottlenecking  Berezitovy upgrade and expansion

21

5.7 0.6 1.4 2.2 1.2 0.8 Under review 22.6 24.3 5.7 2.9 2.1 1.7 LEFA Taparko Suzdal Neryungri- Metallik Berezitovy Aprelkovo Buryatzoloto Gross Bissa Other Total Prognoz Total gold equivalent

22

(1) Includes LEFA Corridor and Regional (2) Includes Bouroum, F12 and Welcome Stranger (3) Includes Balazhal, Zherek (Kazakhstan); Zinigma, Bouly, Gougre, Yeou and Ankouma (Burkina Faso) (4) Measured, indicated and inferred resources (“M+I+I”). May slightly differ from prospectus due to rounding (5) Pro rata based on 50% interest in Prognoz asset; 205moz of silver resources converted into GEoz using 1:60 Ag/Au conversion

Significant JORC resource base of 22.6moz across a diverse portfolio of quality assets

In Production Development / Exploration Gold equivalent with Prognoz(5)

(moz)

Resource base has more than doubled through aggressive exploration since Nordgold acquired the assets

12.3moz 10.3moz

(4) (2) (3)

Reserve and Resource Breakdown By Classification By Geography

Measured & Indicated 53% Inferred 47% Russia 44% Africa 45% Kazakhstan 11%

(1)

Large JORC Resource Base: Substantial Potential for Growth New Reserve Update Expected in the Spring of 2012

Total(4)

Key Developments and Priorities Key Operating Statistics

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LEFA and Taparko

» Detailed geological model created to improve head grade » Multiple capital repairs performed at the plant to replace

• bsolete units aimed at increasing plant availability

» A series of measures taken to reduce negative impact of wet season:

• Increased pumping capacity
• Increased fleet of graders and dozers
• Upgraded conveyor system

» Top management team replaced to drive transformation

Location Guinea, 700km northeast of Conakry Proven & probable reserves 3,620 koz at 1.34 g/t(1)(2) M + I + I resources 5,704 koz at 1.19 g/t(1)(2) Taxation (Mining / Profit) 5% per sold / 30% Unit 2010(4) 2011 Change 4Q 2010 4Q 2011 Change Ore mined (kt) 2,327 6,660 186% 1,880 1,624 (14%) Ore milled (kt) 2,186 6,128 180% 1,718 1,663 (3%) Grade (g/t) 1.19 1.13 (5%) 1.20 1.01 (16%) Recovery (%) 89% 86% 88% 83% Gold production (koz) 73 196 168% 55 49 (11%) Cash costs (US$/oz) 773 846 9% 773 908 17%

LEFA – Brief Overview Key Developments and Priorities Key Operating Statistics

» Elimination of mill vibration; upgrade of pump and cyclone systems » Optimisation of mill feed » Current plant productivity is 70% above design capacity » Resumed exploration program aimed at increasing minable reserves

Location Burkina Faso, 200km northeast of Ouagadougou Proven & probable reserves 533 koz at 2.76 g/t(1)(3) M + I + I resources 851 koz at 2.81 g/t(1)(3) Taxation (Mining / Profit) 3% per sold / 17.5% Unit 2010 2011 Change 4Q 2010 4Q 2011 Change Ore mined (kt) 1,349 1,457 8% 387 364 (6%) Ore milled (kt) 1,274 1,421 12% 362 325 (10%) Grade (g/t) 3.47 3.27 (6%) 3.84 3.07 (20%) Recovery (%) 90% 84% 88% 84% Gold production (koz) 127 133 5% 36 27 (25%) Cash costs (US$/oz) 393 476 21% 437 548 25%

Taparko – Brief Overview

Note: (1) Based on WAI CPR (2) Includes LEFA Corridor and other regional assets (3) Includes Bouroum, F12 and Welcome Stranger (4) LEFA mine production for August – December 2010

Key Developments and Priorities Key Operating Statistics

24

Berezitovy and Buryatzoloto

» Crushing circuit and filter plant expanded » Second ball mill installed » Mining fleet upgraded to higher capacity machines » SAG mill upgraded with new units to increase availability

Location Russia, 100km from Skovorodino railway station Proven & probable reserves 982 koz at 1.84 g/t(1) M + I + I resources 1,248 koz at 1.80 g/t(1) Taxation (Mining / Profit) 6% per dore / 20% Unit 2010 2011 Change 4Q 2010 4Q 2011 Change Ore mined (kt) 1,839 1,758 (4%) 439 488 11% Ore milled (kt) 1,050 1,391 32% 251 334 33% Grade (g/t) 2.22 2.62 18% 1.98 2.7 36% Recovery (%) 89% 90% 88% 93% Gold production (koz) 71 107 51% 16 29 81% Cash costs (US$/oz) 713 591 (17%) 1,009 570 (44%)

Berezitovy – Brief Overview Key Developments and Priorities Key Operating Statistics

» Plant capacity at Zun-Holba increased by 25% via construction

• f additional processing line

» Work force reduced by about 25%; non-core units spun-off » Top-management team replaced entirely » Substantial resource expansion drilling program launched

Location Russia, Irokinda and Zun-Holba Proven & probable reserves JORC audit under way M + I + I resources JORC audit under way Taxation (Mining / Profit) 6% per dore / 15.5% Unit 2010 2011 Change 4Q 2010 4Q 2011 Change Ore mined (kt) 630 659 5% 162 173 6% Ore milled (kt) 661 680 3% 174 174 0% Grade (g/t) 6.87 6.48 (6%) 6.90 6.06 (12%) Recovery (%) 92% 93% 92% 96% Gold production (koz) 136 134 (1%) 36 36 0% Cash costs (US$/oz) 522 672 29% 530 597 13%

Buryatzoloto – Brief Overview

Note: (1) Based on WAI CPR

Key Developments and Priorities Key Operating Statistics

25

Neryungri-Metallic and Aprelkovo

» Replaced and upgraded entire mining fleet » Expanded metallurgical plant by 50% » Extended period of active leaching to 9 months » Constructed an all-season road, built a new camp

Location Russia, 125km north east of the BAM railway Proven & probable reserves 488 koz at 0.82 g/t(1) M + I + I resources 2,219 koz at 0.82 g/t(1) Taxation (Mining / Profit) 6% per dore / 20% Unit 2010 2011 Change 4Q 2010 4Q 2011 Change Ore mined (kt) 2,209 2,475 12% 513 427 (17%) Ore milled (kt) 2,201 2,622 19% 490 469 (4%) Grade (g/t) 1.32 1.16 (12%) 1.68 1.32 (21%) Recovery (%) 75% 75% 75% 75% Gold production (koz) 59 73 24% 24 23 (4%) Cash costs (US$/oz) 555 611 10% 464 675 45%

Neryungri – Brief Overview Key Developments and Priorities Key Operating Statistics

» Upgraded entire mining fleet » Doubled metallurgical plant capacity » Installed crushers to reduce ore sizes from -15 to -5 mm

Location Russia, 120km east of the regional centre of Chita Proven & probable reserves 429 koz at 1.08 g/t(1) M + I + I resources 801 koz at 1.11 g/t(1) Taxation (Mining / Profit) 6% per dore / 20% Unit 2010 2011 Change 4Q 2010 4Q 2011 Change Ore mined (kt) 1,601 1,628 2% 365 415 14% Ore milled (kt) 1,627 2,577 58% 343 396 15% Grade (g/t) 1.18 0.81 (31%) 1.23 0.97 (21%) Recovery (%) 60% 60% 60% 60% Gold production (koz) 35 30 (14%) 11 9 (18%) Cash costs (US$/oz) 628 655 4% 629 664 6%

Aprelkovo – Brief Overview

Note: (1) Based on WAI CPR

Key Developments and Priorities Key Operating Statistics

26

Suzdal

» Both underground mine and metallurgical plant capacity expanded by 60-80% » After completion of high-grade ore body 1/3, long term access to medium grade ore bodies 2 and 4 established » Underground mining fleet upgraded

Location Kazakhstan, 55km southwest of Semipalatinsk Proven & probable reserves 488 koz at 6.64 g/t(2) M + I + I resources 1,345 koz at 6.05 g/t(2) Taxation (Mining / Profit) 6% per mined / 20% Unit 2010 2011 Change 4Q 2010 4Q 2011 Change Ore mined (kt) 348 400 15% 103 69 (33%) Ore milled (kt) 334 509 52% 102 131 28% Grade (g/t) 9.38 6.79 (28%) 7.32 6.79 (7%) Recovery (%) 71% 61% 57% 57% Gold production (koz) 82 82 0% 13 20 54% Cash costs (US$/oz) 510 777 52% 892 903 1%

Suzdal (1)– Brief Overview

Note: (1) Including Zherek (2) Based on WAI CPR

Key Developments and Priorities

27

Key Growth Drivers – Bissa and Gross

» Feasibility study completed in June 2010 » Engineering and design phase is completed » Construction started in September 2011 » Earth and cement works are in progress » Personnel is being hired to manage the construction work » Mining equipment is arriving on site. Mills to be delivered in summer 2012

Location Burkina Faso, 100km north from Ouagadougou Proven & probable reserves 1,653 koz at 1.76 g/t(1)(3) M + I + I resources 2,866 koz at 1.40 g/t(1)(3) Taxation (Mining / Profit) 5% per sold / 27.5% Launch 2013

Bissa – Brief Overview Key Developments and Priorities

» Test work conducted on ore samples successfully » Pre-feasibility study to be completed in May/June 2012 » Engineering design phase to commence in Q2 2012 and to be completed by 2012 » Infrastructure earthworks to be launched in H2 2012

Location Russia, 4km away from Neryungri Proven & probable reserves NA M + I + I resources 5,727 koz at 0.85 g/t(1) Taxation (Mining / Profit) 6% per dore / 20% Launch 2013

Gross – Brief Overview Operational Statistics

100 160 2011E 2012E 2013E 2014E Au Produced (koz) Budgeted Capex (ex. Exploration)

Operational Statistics

8(2) 64(2) 150(3) 78(3) 30 110 2011E 2012E 2013E 2014E Au Produced (koz) Budgeted Capex (ex. Exploration)

(1) Based on WAI CPR (2) Nordgold data (3) Management estimates

61(2) 1743) 15(3)

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(1) Measured, Indicated, Inferred (2) Silver deposit

“Historically, the majority of Nordgold’s assets were underexplored as a result of insufficient capital expenditure programs and liquidity issues suffered by the owners. As a result, the current reserve and resource base does not reflect the true potential of these assets. Nordgold has implemented a significant ongoing exploration and drilling program which WAI expect to continue yielding positive results in areas around current producing mines, thereby significantly increasing the reserve and resource base and extending mine life across the asset base”

Satellite/brownfield Standalone/greenfield

Opportunity Bissa

2.9moz of resources(1)

Uryakh

(Russia)

Nerchinsk

(Russia)

Banfora/ Labola

(Africa)

Gross

5.7moz of resources(1)

Prognoz(2)

(Russia)

Status:

Delineated resource Feasibility underway or completed Construction started in 2011 (Bissa) and expected in 2012 (Gross) Significant drilling performed Scoping underway Potential resource identified Target delineation

Gougre

(Africa)

Kaya

(Africa)

Ouaga

(Africa)

Vitimkan

(Russia)

LEFA Corridor

(Africa)

Banora Corridor

(Africa)

Bouly

(Africa)

Zinigma

(Africa) Africa Russia

Development projects Advanced exploration projects Early exploration projects

Wardell Armstrong, CPR

Further Upside from Exploration Potential to Grow beyond 1moz

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Advanced Exploration Assets

» Located in the Irkutsk region, in 60 kilometres from BAM railway » Licence covers 52 km2, valid until 2032 » Ore field with high-grade resource potential of several million ounces » Various types of mineralisation – quartz vein, mineralized zones » Inferred resources estimates to be available in the next WAI report (March/April 2012), intensive drilling program in 2011-2012 » Potential for the construction of an individual mine » Underground and/or open-pit mining is possible

Uryakh

» Greenfield exploration project located 10 km east to Aprelkovo mine » License covers 35 km2 and expires in 2033 » Drilling program is planned for 2011-2012 » Inferred resources estimates to be available in the next WAI report (March/April 2012) » Depending on the results can be Aprelkovo’s satellite or an individual mine

Nerchinsk

» Located at 67 km2 area in 5 km distance from Bissa » Preliminary drilling results of 2010 drilling identified 253 koz of inferred resources » Project has significant potential for the generation of a multimillion ounces low grade Au deposit » Potentially open pit heap leach mine » Encouraging preliminary gold recovery tests

Bouly

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Key Financial Results

US$ millions 2011 2010(1) Change Sales 1,182 754 56.8% Cost of Sales 673 420 60.2% Gross Profit 509 334 52.4% General and administrative expenses 38 47 (19.1%) Taxes other than income tax 76 46 65.2% Other operating (expenses)/income, net 14 22 (36.4%) Profit from operations 382 262 45.8% Finance Income 5 7 (28.6%) Finance costs 63 77 (18.2%) Profit before income tax 324 192 68.8% Income tax expense 72 58 24.1% Profit for the period 252 133 89.5% Non-controlling interest 83 39 112.8% Attributable to Shareholders of the Company 169 95 77.9% EBITDA 574 370 55.1%

» FY2011 Sales c. US$ 1,182 million, over 57% higher than for the respective period in 2010 » Robust EBITDA growth of 55% for FY2011 compared to FY2010 with impressive EBITDA margin of 49% » Strong Net Income margin of 18% for FY2010 even improved in 2011 reaching 21% for FY2011

Source: Nordgold. Notes: (1) The comparative information for the year ended December 31, 2010 has been restated in connection with the completion of the purchase price allocation of Crew Gold Corporation.

Consolidated Income Statement

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Key Financial Results (continued)

US$ millions 2011 2010(1) Change Cash and cash equivalents 217 212 2.4% Accounts receivable 74 34 117.6% Inventories 375 283 32.5% VAT recoverable 57 33 72.7% Other current assets 7 6 16.7% Total current assets 731 568 28.7% Property, plant and equipment 575 488 17.8% Intangible assets 1,243 1,272 (2.3%) Long-term financial investments 86 121 (28.9%) Other non-current assets 13 28 (53.6%) Total non-current assets 1,917 1,909 0.4%

Total assets 2,648 2,477 6.9%

Short-term debt finance 316 281 12.5% Accounts payable 173 133 30.1% Other current liabilities 43 53 (18.9%) Total current liabilities 532 468 13.7% Long-term debt finance 84 116 (27.6%) Other non-current liabilities 276 270 2.2% Total non-current liabilities 360 386 (6.7%) Total liabilities 892 854 4.4% Total equity attributable to shareholders 1,515 1,392 8.8% Non-controlling interest 241 231 4.3% Total equity 1,756 1,623 8.2%

Total equity and liabilities 2,648 2,477 6.9% Consolidated Balance Sheet

Source: Nordgold. Notes: (1) The comparative information for the year ended December 31, 2010 has been restated in connection with the completion of the purchase price allocation of Crew Gold Corporation.

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Key Financial Results (continued)

US$ millions 2011 2010(1) Change Operating activities Profit for the period 252 133 89.5% Adjustments for non-cash movements 321 233 37.8% Changes in operating assets and liabilities (97) (77) 26.0% Cash flows from operations 476 290 64.1% Interest paid 13 25 (48.0%) Income taxes paid 65 16 306.3% Cash flows from operating activities 398 249 59.8% Investing activities Cash used in investing activities (309) (409) (24.4%) Financing activities Proceeds from debt finance 117 315 (62.9%) Repayment of debt finance (118) (207) (43.0%) Other (69) 173 (139.9%) Cash (used in) / from financing activities (70) 281 (124.9%) Net increase in cash and cash equivalents 18 122 (85.2%) Cash and cash equivalents at end of the period 217 212 2.4%

Consolidated Cash Flow Statement

Source: Nordgold. Notes: (1) The comparative information for the year ended December 31, 2010 has been restated in connection with the completion of the purchase price allocation of Crew Gold Corporation.

Focus on Corporate Transparency

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Board of Directors includes international mining executives, mining experts and a prudent management team

» Alignment of minority shareholders’ interest with major shareholder » Corporate governance is in line with recommendations of UK corporate governance codes on ‘comply or explain’ basis » 4 of 8 Board of Directors are independent (including Chairman) » Reliance on stable, deep and incentivised management team

Corporate Governance Initiatives Board of Directors Committees

Executive Committee Board Committees » HSE

(majority independent)

» Audit

(100% independent)

» Remuneration

(majority independent)

» Nomination

(majority independent)

Philip Baum Chairman 31 years with Anglo American, including CEO of iron ore division Chairman (Independent)

Nordgold is dedicated to achieving and maintaining corporate transparency and disclosure standards

Peter Lester Independent, Non-Executive Former Head of Strategy at Newcrest, Australia’s leading gold producer, and of Oxiana David Morgan Independent, Non-Executive Former CFO at Johnson Matthey plc. Michael Nossal Independent, Non-Executive Former Head of Strategy at WMC Vadim Larin CEO, Severstal Resources Nikolai Zelenski CEO Sergey Zinkovich CFO Alexei Kulichenko CFO, OAO Severstal

Board and Executive Committee Structure

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Health, Safety and Environment

Comply with all applicable laws and regulations and when practicable, strive to exceed these requirements Implement formal environmental management systems that are aligned with applicable international standards Identify, assess, monitor, control and manage significant environmental risks Identify potential environmental emergencies Implement, maintain and regularly test emergency response plans Establish clear and meaningful environmental

• bjectives and targets

aimed at continuous improvement

2 5

Nord Gold is fully compliant with all applicable laws, regulations and strives to exceed requirements where possible

Provide a working environment free

• f uncontrolled

hazards Identify and eliminate or control significant health and safety risks Provide employees and contractors with appropriate training Implement formal health and safety management systems Maintain and regularly test emergency response plans Identify potential emergency situations

Health and Safety Policy Environmental Policy

Nordgold Investor Relations

Alexey Shchedrin Head of financial communications and IR Strawinskylaan 3105, 1077 ZX Amsterdam The Netherlands T +31 20 406 4480 F +31 20 406 4555 M +7 917 502 20 48 E alexey.shchedrin@nordgold.com W www.nordgold.com

Contact Us

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