FORWARD LOOKING STATEMENTS This presentation contains forward - - PDF document

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TSUMEB SMELTER SITE VISIT February 10, 2016 Can we put picture of the Ausmelt!

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FORWARD LOOKING STATEMENTS

This presentation contains “forward looking information” or "forward looking statements" that involve a number of risks and uncertainties. Forward looking information and forward looking statements include, but are not limited to, statements with respect to the future prices of gold and other metals, the estimation of mineral reserves and resources, the realization of mineral estimates, the timing and amount of estimated future production and output, costs of production, capital expenditures (including sustaining capex, non-discretionary capex and discretionary capex), costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation. Often, but not always, forward looking statements can be identified by the use of words such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, or variations

• f such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be
• achieved. Forward looking statements are based on the opinions and estimates of management as of the date such statements are

made, and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others: the actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, fluctuations in metal prices, as well as those risk factors discussed or referred to in this presentation under and in the Company’s annual information form under the heading "Risk Factors" and other documents filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated

• r intended. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events

could differ materially from those anticipated in such statements. Accordingly, readers are cautioned not to place undue reliance on forward looking statements.

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SAFETY

• Best Smelter safety record ever achieved in 2015 (AIFR & LTIFR).
• Good trend on safety performance for all sites comparing well to North American metrics.
• The next Phase is to focus more specifically on behavioral safety to prevent the

performance from flattening out.

3.14 3.07 2.16 1.52 1.15 0.65 0.69 0.66 0.45 0.43 0.00 0.05 0.12 0.27 0.20 2.49 2.34 1.37 0.80 0.52 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 2011 2012 2013 2014 2015

DPM – Frequency Rate Results

AIFR LTIFR RWDIFR MTIFR

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DPM’S GLOBAL PORTFOLIO OF ASSETS

Krumovgrad 100% Chelopech 100% Kapan 100% Sabina 12% Avala 50.14% Tsumeb Smelter 100%

Operating assets Development assets Exploration assets

Chelopech Mine, Bulgaria

• Ownership: 100%
• Stage: Producing
• Mine Life: 10 + years
• 2015 Production: 153 koz Au;

39.7 Mlbs Cu

Kapan Mine, Armenia

• Ownership: 100%
• Stage: Producing
• Mine Life: 9 + years
• 2015 Production: 25 koz Au;

2.7 Mlbs Cu

Tsumeb Smelter, Namibia

• Ownership: 100%
• Stage: Expanding
• Technology: Ausmelt
• 2015 Concentrate Smelted:

196,107 tonnes

Krumovgrad Project, Bulgaria

• Ownership: 100%
• Stage: Detailed Design
• Mine Life: 8 years
• Production: H2 2018
• Avg. Production: 85.7 koz Au/yr

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2015 EBITDA Generation

DIVERSE PORTFOLIO OF ASSETS IN PRO MINING JURISDICTIONS

2015F Revenue Diversification (as of 2015.Q3) Sept 2015 Asset Diversification

Bulgaria 44% Namibia 45% Armenia 12%

• Credit Rating: Baa2 (Moody’s), BBB- (Fitch), BB+ (S&P)
• Corporate Tax Rate: 10%
• GDP Forecast: +2.0% in 2015, +2.5% in 2016 (IMF)
• Overview:

− Bulgaria is a member of the European Union (since 2007) − Mining industry has grown significantly since 1998 and currently employs ~120,000 Bulgarians in the country − Bulgaria is the 4th largest gold producer and 6th largest coal producer in Europe

• Credit Rating: Baa3 (Moody’s), BBB- (Fitch), NR (S&P)
• Corporate Tax Rate: 0% as Tsumeb has been granted

Export Processing Zone status

• GDP Forecast: +4.5% in 2015, +4.6% in 2016 (IMF)
• Overview:

− Ranked as Africa’s most attractive country on Fraser Institute’s Investment Attractiveness Index (ranked #10 globally) − World’s 5th largest producer of uranium and 9th largest producer of diamonds − Mining companies in the country include Glencore, Rio Tinto, Anglo American, Paladin Energy, etc.

• Credit Rating: Ba3 (Moody’s), B+ (Fitch), NR (S&P)
• Corporate Tax Rate: 20%
• GDP Forecast: +3.5% in 2015, +3.7% in 2016 (IMF)

Smelter 21% Gold 48% Copper 25% Silver and Zinc 6% Tsumeb 8% Kapan 4% Chelopech 88%

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FOCUS ON BECOMING A MID TIER GOLD PRODUCER

Optimize Existing Operations Execute New Growth Projects Establish Growth Pipeline Through Exploration and M&A

• Build Krumovgrad Gold Project

Maintain a Solid Balance Sheet and Low-Cost Position

Conceptual Illustration of Krumovgrad Gold Project Newly commissioned acid plant at Tsumeb Kapan Underground

• Generate brownfield and greenfield exploration opportunities
• Mining operations
• Pursue margin/cost improvement opportunities
• Extend life of existing mines through exploration
• Deliver sustained operating improvements at Kapan to

support underground expansion

• Tsumeb smelter
• Robust Cash flow through the price cycles.
• Increase margins through higher throughput and

cost improvements

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137 151 153 46 44 40 230 293 314 2013 2014 2015

Au (Koz) Cu (Mlbs) $ cost/oz Au sold $cost/T ore processed

CHELOPECH MINE PRODUCTION PROFILE AT LOW COST

Outlook Production and Cost Profile Asset Overview

• Maintain low cost operations
• Perform targeted exploration to replace depletion

and maintain mineral reserves

• Continue to implement cost/margin

improvements

• Increase ore throughput

Location Grade Reserves (at Dec 31, 2014) Gold (Moz) (3.14 g/t) 2.3 Copper (Mlbs) (0.93%) 467 Mine Type Underground Deposit Type High sulphidation epithermal Estimated Mine Life 10+ years 2015 Adjusted EBITDA (US$) 101 M

Payable Au in pyrite sold (Koz)

Value

• Quadrupled
• re

production to 2 mtpa and achieved one of the lowest cost underground Au and Cu mines, globally

• Pyrite gold project has improved Au recoveries by

25-35% increasing

• verall

gold recoveries to concentrates to between 70 and 80%

• Continually extending LOM by replacing mined

reserves through exploration programs

40.08 39.90 36.46

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KAPAN MINE: OPTIMIZING THE ASSET

24 21 25 2 2.7 964 863 709 2013 2014 2015

Production and Cost Profile

Au (Koz) Cu (Mlbs) $ cost/oz Au sold

• Continued improvements to ground control practices
• Progress improvements in mine and mill production
• Changes in mine and maintenance management
• Focus on operational improvements and cost reductions
• Favourable PEA adds to organic growth potential for

underground expansion to 1 Mtpa of run of mine material Outlook Asset Overview

Location Grade Metal content Resources Indicated (at Dec. 31, 2014) Gold 2.90g/t 0.418 Moz Copper 0.49% 49 Mlbs Resources Inferred (at Dec. 31, 2014) Gold 2.55 g/t 0.934 Moz Copper 0.50% 137 Mlbs Mine Type Underground Deposit Type Polymetallic vein (Au, Cu, Ag, Zn) Estimated Mine Life 9+ years 2015 Adjusted EBITDA (US$) 4.9 M Tonnes mined 7.6 Mt Gold 2.44 g/t Silver 37.60 g/t Copper 0.33% Zinc 1.00% Cash cost per oz of Au sold, net of by- product credits US$336/oz Total Net Revenue US$874.7M Site EBITDA US$417.1M Average Annual EBITDA US$52.1M NPV @ 5% Discount US$141.7M Total Expansion Capital US$30.1M

Kapan Expansion PEA Project Summary

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TSX:DPM 9 Conceptual Illustration of Krumovgrad Gold Project

KRUMOVGRAD GOLD PROJECT: POTENTIAL HIGH RETURN PROJECT

Deposit Type Low sulphidation epithermal Au Proposed Mine Type Open Pit Gold Recoveries 85% Gold Grade 4.04 g/t Annual ore tonnage production 775,500 tpy Annual gold production 85,700 ounces Mine Life 8 years Capital Costs to complete ~US$164 m Total cash cost per oz.AuEq $389 Construction / Production 2016 / 2018 Average Annual EBITDA $64.9 M After-Tax NPV @ 7.5% $143.9 M IRR 26%

• Secure final local approvals required to proceed to

construction

• Land re-designation; Land purchase; Approval of

technical packages

• Expect receipt of construction permit in H1 2016
• Estimated commercial production in the late 2018

Project Economics Value Outlook

• Adds to the organic growth potential
• Low capital and low operating costs
• Best practices allow us to maintain our social license

Sensitivity Analysis*

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Source: Brook Hunt – Wood Mackenzie, Company filings, DPM estimates

Estimated Capacity for Complex Material

Horne Smelter Operated by Xstrata Capacity: ~50kt Tsumeb Smelter Operated by Dundee Precious Metals Capacity: 240kt Operating Smelters – Require Blending Closed Smelters La Oroya Smelter Shut down in 2010 Kosaka Smelter Shut down in Q1 2008 San Luis de Potosi Smelter Shut down in 2012 XGC Smelter Capacity: ~60kt Altonorte Operated by Xstrata Capacity: ~50kt

TSUMEB – A STRATEGIC ASSET

• Purchased to secure processing of

Chelopech concentrate

• Limited global capacity to process

complex concentrate

• 0.5% arsenic import limit in China

requires blending (at current levels blending would exceed 10:1)

• Tsumeb is the only specialty smelter

that can handle large volumes of high arsenic concentrate without blending

• Assessing potential to expand smelter

to 370,000 tpy to process additional 3rd party concentrate Ausmelt Offgas Bag-House Ausmelt Scrubber Area Heat Exchangers and converter Acid storage tanks

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TSUMEB SMELTER TOUR February 10, 2016

OPERATIONS HISTORY AND REVIEW

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• Built in 1960-62. Commissioned 1963.
• Designed to treat complex ores from Tsumeb

Mine containing high levels of copper, lead, zinc, arsenic and cadmium.

• Environmental and health challenges during ‘80s

and ‘90s; Pb, As and SO₂ emissions above international standards for years.

• New furnace (Ausmelt) built and commissioned in

1996 to treat Lead.

• Namibia’s copper mines closed in 2008.
• Ausmelt re-commissioned 2008 for Copper

treatment.

• DPM purchased the Smelter from Weatherly

Mining in March 2010.

• Production capacity increased

from 147,000 t concentrate in 2010 to a current capacity of 240,000 tpa.

STATUS UPON ACQUISITION

DPM Ownership 100% Location Namibia Acquisition March 2010 $50M Technology / Product Ausmelt Product Blister copper Emissions, dust-capture upgrades $110 M 2015 concentrate throughput 196 000 t Sulphuric acid capture plant ~$243 million Expanding smelter capacity 370 ktpy

Old converters Old reverb furnace (till Q3’2013)

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COPPER SMELTING OVERVIEW

Feed preparation Offgas cleaning As2O3 production Slag milling Copper making (converting) Concentrate Reverts Fluxes Fuels Cu Dusts Matte 55% Cu Slag 2.5% Cu Feed 20% Cu Offgas Dust Copper 98.5% Cu Sulphuric acid plant SO2 H2SO4

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Secondaries 200t/d 15% Cu

Copper 160t

98.5% Cu

Matte Concentrate 700t/d 23% Cu Secondaries 100t/d 15% Cu Concentrate 800t/d 23% Cu Secondaries 100t 15% Cu

Current With New Converters

TSUMEB – RESOLVING CONVERTER CONSTRAINTS

Copper 180t

98.5% Cu

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• Acid Plant Construction
• This project will reduce sulphur

dioxide emissions by >98%

• Illustration of Completed Acid Plant

and Smelter Complex

• Sulphur dioxide emissions will be

captured and converted to sulphuric acid, which will be sold in the local market

ACID PLANT - A SIGNIFICANT ENVIRONMENTAL UPGRADE

The project included:

• Gas Capture and conversion to H2SO4
• Environmental systems upgrade
• High Efficiency Scrubbing
• Dispatch by rail and road
• Water reclamation
• Pearce-Smith Converter Replacement
• Operational readiness

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ACID PLANT SIMPLIFIED PROCESS

Process Gases Drying Tower Converter Absorption Tower Clean & Dry SO2 Conversion

• f SO2 to SO3

SO3 Sulphuric Acid Product (98%)

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SMELTER Business Proposition

Enablers Additional discretionary upgrades to increase capacity and lower costs

• Successful occupational exposure controls with hygiene installations
• New dust management systems
• Acid Plant and Copper Converter Installations Curb SO2 emissions
• Oxygen and Acid Plant capacity installed for 370kt/a Smelting rate
• Installation of upgraded Ausmelt Cooling
• Installation of a Rotary Holding Furnace to release operational

constraints with Continuous Ausmelt and Batch Copper Converters.

• Robust Cash flow generation through the commodity cycle (TC vs price linked).
• Able to Treat high Arsenic concentrates directly vs blended

Ongoing Activities

TRANSFORMATION OF A UNIQUE SMELTER EQUIPPED TO TREAT COMPLEX COPPER CONCENTRATES

• PFS Completed in 2015 for the Rotary Holding Furnace
• FS commenced in January
• Optimization of existing facilities

Value Proposition

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Bulk Smelting Market

• Global copper concentrate sales have

transparent benchmarks.

• These typically range from $90 to 130/t

between contract and spot tonnage.

• Contract durations are normally 1-year

and therefore negotiated annually.

• Concentrates need to be free of

deleterious materials or face being rejected or attract penalties.

• Treating complex elements requires

blending with clean concentrates.

TREATMENT AND PENALTY CHARGES

1 2 3 4 5 6 7 revenue sensitivity to metal prices periods mine smelter smelter with metal gain for illustration purposes

Complex Concentrates Market

• Tsumeb is a niche complex concentrate treatment facility with core arsenic capability.
• Multi-year agreements attract premiums to the clean market of $30 to $50/t.
• Thresholds for core arsenic penalties vary but generally start above 0.5%
• Charges are on a $ per 0.1% increment over 0.5%.
• In some cases the $ per 0.1% penalty will increase as the arsenic level increases.
• Additional Penalties possible - Lead, Zinc, Se, Te, Bi, moisture, etc.

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TSUMEB: Smelting Performance

198 196 215-250 320-370 120 180 159 152 268 293 374 433 351 377 2010 2011 2012 2013 2014 2015 2016F 2020F

• Until Q3 2013 the smelter had 2 furnaces.
• Decommissioning of the Reverb furnace in 2013

significantly curbed emissions but exacerbated in- process inventories.

• EBITDA of $18.3M in 2014 was reduced to $8.7M in

2015 as a consequence of inefficiencies during construction and transitioning to a Toll Smelter.

• Completion of construction is expected to debottleneck

production and improve EBITDA.

• Opportunities include improving smelter availability and

reducing in-process recycles. Context

Anticipated Future Capacity

Ausmelt Furnace Availability

Third Party con supplied to smelter (000s) Chelopech concentrate supplied to smelter (000s) Cash cost per tonne of concentrate smelted

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 (%)

Furnace Availability TSX:DPM 20

OPERATIONAL EXPENSES & EBITDA OPPORTUNITY

Fixed cost Variable cost 8,820 6,108 9,281 6,200 10,284 12,000 4,000 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2011 2012 2013 2014 2015 2016 (guidance) thousand USD

Capital expenditures - Sustaining

17,051 56,926 130,528 121,148 30,058 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2011 2012 2013 2014 2015 thousand USD

Capital expenditures - Growth

• The smelter fixed costs are current about 78% of the total
• There remains significant upside from optimization within

215-250kt targeted for 2015 (a 10% to 28% increase in smelting) and further potential to 265kt (a 30% increase) before running into Aisle logistics constraints.

• At the same time only $4M growth capital remains to

spend in 2016 of the $350M for the acid plant, converter and occupational exposure controls.

• Sustaining capital is expected to continue at an estimated

$12M rate going forward. Financial Impact of increasing Efficiency

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TSX:DPM 21 Mobile Equipment Gateway UG Crusher&Conveyors Other UG Fixed Plant Process Control Mining Execution Management (CMCS) Technical Services (Design Planning, Survey, MRM, etc.) Maintenance Management (CMMS) Materials Mgt / Inbound Logistics Collision avoidance Access Control/ Time & Attendance Operations Information Management (Reporting, Performance Management, Analysis) Central Blasting Mobile Equipment (Unit Automation) Personnel Tracking Asset Tracking Fuel & Lubricant Dispensing Business Intelligence Operations Control / Asset Management Production Control Equipment Intelligence Business Planning Systems (ERP) Mining Operations Management Telecommunication Infrastructure Enterprise Resource Planning (ERP) Wireless Communication Network Mobile Personal Communication Devices Wired Communication Devices Mobile Personal Communication Devices In place Partially in place Not in place

Management Operating Model

Differentiating DPM with management practices

• Chelopech is the prime example of successful

change between the 2003 purchase and the current

• peration.
• That change included the introduction of new

management practices and specifically better planning and scheduling of activities.

• This forms the core of our current “operational

excellence” activity

• We are currently implementing our work management

practices at Tsumeb with good success

• We have similarly seen success at Kapan with

Capital Development rates

• These activities together with our organizational

development practices improve productivity, costs and efficiencies

• Progressing this across the organization increases
• ur capacity to implement at other or new sites

27,990 24,720 36,877 45,221

• 10,000

20,000 30,000 40,000 50,000 2012 2013 2014 2015 tonnes blister

Blister produced

TSUMEB SMELTER TOUR February 10, 2016

SUSTAINABILITY

Government relations, environment, health and community relations

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• About 500 permanent employees - 98% Namibian nationals.
• Additionally, about 350 contract employees currently employed (over 1,600 at peak of

project work)

• 76% of manager & above levels held by Namibian nationals
• 2.9% of gross wage costs spent on training & development
• 80% of discretionary spending on goods & services awarded to Namibian suppliers in

2015

• Preferential procurement strategy being developed to support development of local

businesses.

• NAD12 million invested in community since 2010 through independent Community

Trust – focus areas = education, social services, small-medium sized enterprises (SMEs)

• Over 80 SMEs funded, providing employment throughout community
• NAD15 million spent to build employee-owned affordable housing in partnership with

NHE – 67 houses built-to-date and an additional 50 to be built in 2016- 2017

ECONOMIC IMPACT BEYOND SMELTER GATE

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• Current Impact monitoring –

Five Air Quality Stations, US EPA certified – Dust and Arsenic (As2O3) measurements are within international limits – SO2

• Groundwater
• Surface water
• Legacy Soil contamination
• Biodiversity & ecological indicators

– Small mammal sampling as indicators of environmental health

• Phytoremediation
• Fruit and vegetable quality

ENVIRONMENT SUMMARY CONTROL & MONITORING

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• Entire workforce biological monitoring,

Arsenic (As), Lead (Pb) trends, and general occupational health metrics

• Assess, track and treat minor exposures

such as dermatitis and provide general health advice

• Wellness and occupational health

programs, full time DPM Tsumeb

• ccupational health specialist
• Annual employee medicals done by

external occupational health practitioner

• Integral part of OHS reporting to

government

HEALTH SUMMARY

175 178 143 151 89 73 50 100 150 200 2010 2011 2012 2013 2014 2015 g/g Measuring Arsenic Occupational Exposure all smelter employees

HIV and nutrition workshop

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• Active engagement with media
• Active advisory council at national and local levels
• Fully-staffed information centre in town of Tsumeb
• Regular “town-hall” meetings to update media and community
• n smelter progress and plans
• Stakeholder grievance mechanisms in place
• Environmental monitoring with real-time data displayed in town and at smelter
• Regular meeting with local municipality and regional governor

STAKEHOLDER ENGAGEMENT & PUBLIC RELATIONS

Employee housing initiative in partnership with NHE 65 houses built in Phase 1 / Phase 2: +100 houses Stakeholder engagement

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TSUMEB COMMUNITY INVESTMENT

43% 5% 14% 5% Spending Breakdown - T sumeb Community Trust - NAD 12 million since 2010 Education Arts & Culture Social Services SMEs Other Nomtsoub Primary – classroom improvements Great Hope Namibia – Social Services SME – Beauty Salon SME – Solar ovens 33%

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Winding Down Projects:

• Mechanical completion and Hot commissioning of new converters – February 2016
• Demobilization to be completed by April 2016 with site back to normal operations
• Storm water reticulation and road upgrades to commence during 2016
• Contractors camp to be decommissioned during Q2 2016

– Busy investigating future utilization of infrastructure – Awaiting proposals from different organizations – Good potential to be developed as an externally operated training facility Short term:

• Complete converters upgrade.
• Stabilization of the acid plant production.
• Stabilize transportation of the acid at full production.

Industry forum, best practice case study Longer term:

• Optimize Smelter production and productivity utilizing excess capacity built into the
• xygen and acid plants.
• Identify Arsenic production options beyond current permitting.
• Continue the partnership with the Government of Namibia and other Stakeholders.

GOING FORWARD

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TSUMEB SMELTER TOUR February 10, 2016

Corporate Head Office: One Adelaide Street East, Suite 500 Toronto, Ontario M5C 2V9 +1 416 365-5191 TSX: DPM – Common Shares www.dundeeprecious.com

Thank You