May 9, 2012 CHAIRMANS AGENDA WILLIAM WILSON CHAIRMAN OF THE BOARD - - PowerPoint PPT Presentation

WELCOME TO THE 2012 ANNUAL & SPECIAL MEETING May 9, 2012

TSX: DPM

CHAIRMAN’S AGENDA

Opening Remarks

• Introduction of head table
• Introduction of the Board of Directors

Appointment of Secretary and Scrutineer Constitution of the Meeting

WILLIAM WILSON – CHAIRMAN OF THE BOARD

BUSINESS OF THE MEETING

Presentation of Financial Statements and Auditor’s Report Nomination and Election of Directors (ballot)

• William Wilson
• Derek Buntain
• Peter Gillin
• Jonathan Goodman
• Ned Goodman
• Murray John
• Jeremy Kinsman
• Garth MacRae
• Peter Nixon
• Ronald Singer
• Donald Young

Amendment to Stock Option Plan (ballot) Appointment of Auditor Termination of the Meeting

MESSAGE FROM JONATHAN GOODMAN

PRESIDENT & CHIEF EXECUTIVE OFFICER

TSX: DPM

FORWARD LOOKING STATEMENTS

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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, costs of production, capital expenditures, 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 of 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 news release 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 or 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.

FORMAT FOR TODAY’S MEETING Jonathan Goodman – Introduction and Opening Remarks Hume Kyle - Financial Summary Rick Howes - Mining Operations Jonathan Goodman - Smelting and Development, Exploration Assets, Strategy & Closing Question and Answer Period

FINANCIAL UPDATE

HUME KYLE – EVP & CFO

TSX: DPM

MARKET PRICES

Gold (US$/oz)

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1,224 1,569 1,386 1,691 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2010 2011 Q1 2011 Q1 2012 3.42 4.00 4.38 3.77 3.0 3.2 3.4 3.6 3.8 4.0 4.2 4.4 4.6 4.8 5.0 2010 2011 Q1 2011 Q1 2012

Copper (US$/lb) Silver (US$/oz)

20.16 35.12 31.71 32.62 3 8 13 18 23 28 33 2010 2011 Q1 2011 Q1 2012

Zinc (US$/lb)

0.98 0.99 1.09 0.92 0.5 0.6 0.7 0.8 0.9 1.0 1.1 2010 2011 Q1 2011 Q1 2012

PRODUCTION & CASH COSTS

Mine Concentrate Production (tonnes)

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96,035 125,253 19,135 36,978 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2010 2011 Q1 2011 Q1 2012 119,557 180,403 41,924 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 2010* 2011 Q1 2011 Q1 2012

Smelter Concentrate Production (tonnes)

*DPM acquired NCS on March 24, 2010

Gold Cash Cost, net of by-product credits (US$/oz)

268 295 337 50 100 150 200 250 300 350 400 2010* 2011 Q1 2011 Q1 2012

Smelter Cash Cost (US$/tonne)

238

• 57
• 110
• 120
• 70
• 20

30 80 130 180 230 280 2010 2011 Q1 2011 Q1 2012 323 38,532

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METALS IN CONCENTRATE PRODUCED

Gold (oz)

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30.4 39.8 40.9- 46.2 5.8 12.2 5 10 15 20 25 30 35 40 45 2010 2011 2012 Est Q1 2011 Q1 2012

Copper (M/lbs) Silver (oz)

640,454 670,819 659,000- 732,000 157,666 187,526 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2010 2011 2012 Est Q1 2011 Q1 2012

Zinc (M/lbs)

19.1 19.6 18.00- 20.0 4.8 4.4 5 10 15 20 25 2010 2011 2012 Est Q1 2011 Q1 2012 94,728 120,757 128,000- 143,000 19,585 41,910 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2010 2011 2012 Est Q1 2011 Q1 2012

FINANCIAL RESULTS

Adjusted Earnings ($/share)

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45.3 117.5 19.2 40.8 15 35 55 75 95 115 2010 2011 Q1 2011 Q1 2012

Adjusted EBITDA (US$/M)

0.19 0.64 0.08 0.25 0.01 0.11 0.21 0.31 0.41 0.51 0.61 0.71 2010 2011 Q1 2011 Q1 2012

Funds from Operations (US$/M) Free Cash Flow (US$/M)

53.9 123.6 21.9 48.1 20 40 60 80 100 120 140 2010 2011 Q1 2011 Q1 2012 17.3 82.3 14.7 40.6 10 20 30 40 50 60 70 80 90 2010 2011 Q1 2011 Q1 2012

FINANCIAL POSITION AND DEBT SERVICE COVERAGE AT MARCH 31, 2012

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Funds from

• perations

Publicly traded investments Corporate Cash

$ 183 $144

Ample Liquidity (US$M) Solid Balance Sheet

722 84 100 200 300 400 500 600 700 800

(US$M)

Debt Capitalization 10%

Equity Debt

Strong Debt Service Coverage (Ratio)

6.5 11.7 17.8 2 4 6 8 10 12 14 16 18 20 2010 2011 Q1 2012 Targeted Minimum 1.5X

GROWTH CAPITAL

(US$/M)

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51.6 85.3 18.1 20.5 150-175 20 40 60 80 100 120 140 160 2010 2011 Q1 2011 Q1 2012 2012 Est.

Chelopech Krumovgrad NCS Deno

Growth Capital by Business Growth Capital

POTENTIAL GROWTH CAPITAL & EBITDA

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Chelopech Krumovgrad NCS Deno

Potential Growth Capital 2013-2015 (US$/M)

50 100 150 200 250 300 350 400 450 500

Potential Future Annual EBITDA (1) (US$/M)

(1) Based on current market prices and the

completion of capital program 50 100 150 200 250 300

Growth Capital by Business 2013-2015

FINANCIAL STRATEGY

Invest in projects that exceed our cost of capital

• Assess based on risks of each investment

Maintain a strong balance sheet to support requirements of business and provide financial flexibility to grow throughout commodity cycles

• Utilize modest amounts of long term debt
• Adhere to conservative credit metrics
• Maintain sufficient liquidity to meet unforeseen market downturns and operating disruptions

Periodically hedge exposures to reduce risk

• Provisional product pricing
• Project capital costs
• Future metal production

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OPERATIONS UPDATE CHELOPECH MINE

RICK HOWES – EVP & COO

TSX: DPM

DPM PROPERTIES

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CHELOPECH MINE Operating and Financial Highlights

$0 $200 $400 40 80 120 2008 2009 2010 2011 Q1' 2012 2012E 36 Ounces (000’s) Cash Cost * (Gold $US/oz) 71 88 65

20 26 28 37 12

2008 2009 2010 2011 Q1' 2012 2012E

Gold Production (000s ounces) Copper Production (pounds in millions)

$309 $369 94 $210

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901 981 1,001 1,354 436 $0 $20 $40 $60 1,000 2,000 2008 2009 2010 2011 Q1' 2012 2012E Tonnes ore processed per year (000’s)

Ore Processed and Cost/Tonne

Cost/tonne ($US) (Excluding royalties) 1,700 – 1,850

28 51 57 133 59 2008 2009 2010 2011 Q1' 2012

Adjusted EBITDA (US$MM)

103- 115 38 - 43 ($112)

CHELOPECH EXPANSION Completion Q3 2012

Final Steps

• Underground crushing and conveying project

(schedule completion in August)

• Introduce Real Time Operations

Management System for Production Management

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Haulage to the dump Hoisting Dump and wagon loading 735 m asl 100 m asl Crusher is located 585 m below surface

149

Expansion Cost/Tonne Benefits

Ore processed in 2011 1,353,733 tonnes Cash cost/tonne (excl. royalties) in 2011 $49.99 Expanded ore production rate 2 million tonnes per year Savings from: Economies of Scale ~ $12.00 Crushing and Conveying ~ $6.00 Other (SAG mill etc.) ~ $2.00 Feasibility study cost/tonne at 2 mtpy ~ $34.00*

(before royalties)

* Based on March 24, 2011 Technical report for the Chelopech Project. Exchange rate of US$1.35/Euro, US$900/oz Au, US$2.50/lb Cu and US$17/oz Ag.

59 55 52 50 42 34 2008 2009 2010 2011 Q1' 2012 after expansion Cash cost per tonne ore processed excl. royalty

WORLD LEADING REAL TIME MINE OPERATIONS MANAGEMENT SYSTEM BEING INSTALLED

Mining Planning & Scheduling Maintenance Planning & Scheduling Supply chain / Logistics Planning & Scheduling

Planning Information Feedback Information Mining Execution Business Processes Support & Maintenance Processes

Drilling Loading Transportation Chrushing Conveying

Real time Process Monitoring and Control Mining Operations Management System

Crushing

MINE/MILL EXPANSION PROJECTS

UNDERGROUND CRUSHER

177 level Plate Feeder area Crusher, ROM and Gantry Crane

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Crusher Excavation–Compl. July 2011

MINE/MILL EXPANSION PROJECTS

UNDERGROUND CONVEYOR

Conveyor Excavation Completed - (April 2012) CV 2701 and Apron Feeder Chute

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CV 2703 STR Civil works CV 2702 Transformer Station

2011 MINERAL RESOURCE RESERVES

Successful exploration program continuing to replace depletion 2011 M+I Resources – 29.87Mt@1.31%Cu, 4.09g/t Au 2011 Proven + Probable Reserves – 22.62Mt@1.15%Cu, 3.66g/t Au Life of mine is now extended to 2023 Current exploration targeting surrounding areas to west and north of existing mining with success

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100m 100m

Plan View of Chelopech Deposits and Structures

GOLD IN PYRITE RECOVERY PROJECT

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Potential to produce separate gold/pyrite concentrate currently rejected into tailings; Containing ~85,000 oz of Au, 225,000 oz of Ag and 4.8 Mlb Cu; which can be recovered with POX process.

• Laboratory scale batch testing

completed

• Concentrate options test work
• Preliminary Economic Assessment to

be released in early Q3 2012

• Pilot scale test work scheduled to

begin in June

• Feasibility study to be completed in

Q1 2013

Autoclave and oxygen plant from previous metals processing project in storage will be evaluated for suitability

OPERATIONS UPDATE DENO GOLD MINE

RICK HOWES – EVP & COO

TSX: DPM

2008* 2009* 2010 2011 Q1' 2012 2012E 473 - 526 128 2008* 2009* 2010 2011 Q1' 2012 2012E 4.4 2008* 2009* 2010 2011 Q1' 2012 2012E 0.6 2008* 2009* 2010 2011 Q1' 2012 2012E 6

DENO GOLD Operating and Financial Highlights

* Deno Gold operations were on care and maintenance as of November 2008 and operations restarted April 2009.

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296 527 290 519 12 29 15 27 1.9 2.9 1.5 3.0 19.1 9.1 8.8 19.6

Gold Production (000s ounces) Copper Production (pounds in millions) Zinc Production (pounds in millions) Adjusted EBITDA (US$MM) Silver Production (000s ounces)

$3.7 ($17.1) $1.9 $16.7 ($10.7) $31.9 2008* 2009* 2010 2011 25 - 28 2.9 – 3.2 18 - 20 Q1’ 2012 2007 84 109 72 66 64 68 2007 2008 2009 2010 2011 Q1'2012

Cash cost per tonne (excl. royalty) (US$)

DENO GOLD 2012 Key Initiatives

Lead Separation Project

Fine size screening Current final Cu/Au concentrate Screening @53 microns Screen oversize (Pb < 2% ) Gravity separation Screen undersize > 2% Pb Gravity tail (Pb < 5%) Pb concentrate Cu/Au concentrate (Pb < 5%) Lead concentrate Lead mineral gravity separator

DENO GOLD Key Accomplishments

Safe production initiative

• Start with house keeping and ownership
• Introduce and enforce safe work practices

Supply Chain Management Process Cost and budget control People focus

• Reorganization, accountability, involve

local people, development programs

• Introduce proper HR policies &

procedures

• Proper pay structure, including bonuses

Environmental compliance

• Monitoring
• TMF stability assessment

0.94 0.10 0.84 0.78 2009 2010 2011 Q1'2012

LTI Frequency rate (per 200,000 hours) TMF rehabilitation Artsvanik TMF wall stability assessment - Geghanush

DENO GOLD Quality Management

Work practices underground Work projects Standards: drilling, stope design, dilution control

DENO GOLD 2012 Key Initiative – Maintenance Improvements

Improve equipment maintenance

• Maintenance Management Practices
• Workforce skills training

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1/1/2012 1/3/2012 1/5/2012 1/7/2012 1/9/2012 1/11/2012 1/13/2012 1/15/2012 1/17/2012 1/19/2012 1/21/2012 1/23/2012 1/25/2012 1/27/2012 1/29/2012 1/31/2012 2/2/2012 2/4/2012 2/6/2012 2/8/2012 2/10/2012 2/12/2012 2/14/2012 2/16/2012 2/18/2012 2/20/2012 2/22/2012 2/24/2012 2/26/2012 2/28/2012 3/1/2012 3/3/2012 3/5/2012 3/24/2012 3/26/2012 3/28/2012 3/30/2012 4/1/2012 4/3/2012 4/5/2012 4/7/2012 4/9/2012 4/11/2012 4/13/2012 4/15/2012 4/17/2012 4/19/2012 4/21/2012 4/23/2012 4/25/2012

Percent Date

Remote Loader 29 Availability

Base Target

Rebuild

DENO GOLD EXPLORATION STRATEGY

Define Mineral Resources and Reserves for Kapan to increase the LOM Surface

• Mobilize 3 Diamond Rigs & 2 RC Rigs
• Define Mineral Resources for the Open Pit Project (1 - 2.4 - 10Mpta)
• Update Mineral Resource by Q3

UG

• Mobilize 3 UG Rigs
• Define Mineral Resources between the 700mL (Central, Southern & Northern

Zones)

• Define Mineral Reserves for LOM

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DENO GOLD SHAHUMYAN MINE - POTENTIAL UG TARGETS

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Shahumyan South

• Current focus
• Program designed

to prove up resources below 700Rl for mine plan Old Shahumyan

• Below 800 level

poorly explored.

• Historical

producing area of high grade ore

• V46 good target

Shahumyan North Information required for production and mine planning Central Shahumyan

• Good grades/widths

from historic exploration

• Excellent results from

surface exploration Shahumyan East

• Exciting new

prospect

• Possibility to drill

from 780 crosscut

SURFACE EXPLORATION 2012-14 REGIONAL PLANNED DRILLING

Planned Regional Drilling Of 14 prospect areas, 5 have planned holes Total 49 holes for 14,700m 45% is within the Shahumyan prospect area Targets include mine-sequence rocks that are under younger cover sequences Other targets include mapped alteration zones in the mine sequence rocks of the North West corridor Conceptual Prospects Northwest Shahumyan – 22 holes, 6,600m Vein 50 – 6 holes, 1,800m Dzorastan – 9 holes, 2,700m Noraradjadzor – 9 holes, 2,700m Aghvani – 3 holes, 900m

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NAMIBIA CUSTOM SMELTER

JONATHAN GOODMAN

TSX: DPM

NAMIBIA CUSTOM SMELTER A Unique Strategic Asset

DPM Ownership 100% Location Namibia Acquisition March 2010 $50M Capital expenditures to date $45M Project 2012 Costs $75M Technology Ausmelt Product Copper blister bars 2011 concentrate throughput 180,403 tonnes Expanding smelter capacity 240,000 tpy Sulphuric acid capture plant FS Q2 2012

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NAMIBIA CUSTOM SMELTER CURRENT FOCUS

Newly constructed waste disposal site at NCS

Fugitive emissions control initiatives

• Improvements to gas and materials handling systems

Upgrade Initiatives

Production facility optimization

• Additional O2 capacity for Ausmelt furnace
• All primary smelting in new Ausmelt furnace
• Potential replacement of reverb with electric furnace

Results

• Improved environmental performance – reduce

smelter emissions as per good practices

• Commitments to government and community met

MOVING FORWARD IN 2012

JONATHAN GOODMAN

TSX: DPM

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NEW KRUMOVGRAD GOLD PROJECT

Advance project to a 2014 production date – subject to meeting key milestones relating to the appeal process Achieve 74,000 ounces of annual gold production and seek

• pportunities to increase further

Other exploration opportunities within existing licenses

Strategy

DPM Ownership 100% Location Bulgaria Proposed Mine Type Open Pit Gold Recoveries 85% Grade 3.4 g/t Annual ore tonnage production 850,000 tpy Annual gold production 74,000 ounces Annual silver production 35,000 ounces Mine Life 9 years Capital Cost to complete US$127M * Total cash cost per oz AuEq $404 Deposit Type Low-sulphidation epithermal Au/Ag deposit

KRUMOVGRAD GOLD PROJECT, BULGARIA KEY ACCOMPLISHMENTS

Achievements Status

Re-engineered 2005 project 30 year mining concession Definitive Feasibility Study & NI 43-101 Final EIA Approval granted Detailed engineering schedule Estimated construction timeline Estimated production timeline

Q2 2012 – Q4 2013 Hearing May 14, 2012 2014 2013 - 2014

EXPLORATION ASSETS AVZ, DNV, SBB

Securities Holdings % Held Value @ May 8, 2012 Sabina Gold & Silver Corp. (TSX:SBB) 18.5M 11.5% $42M Special Warrants 10M 23M Warrants (strike C$1.07) 5M 6M Total SBB $71M Avala Resources Ltd. (TSX-V:AVZ) 110M 51.4% 102 Special Rights 50M 47 Total AVZ* $149M Dunav Resources Ltd. (TSX-V:DNV) 56M 47.3% 23M Warrants (strike C$0.42) 27.5M Total DNV* $23M

Total shares and other securities ~US$243M

100 200 300 400 500 2009 2010 2011 2012 YTD Value of portfolio ($millions)

*AVZ and DNV are consolidated

KEY ELEMENTS OF STRATEGY

Optimize value of existing

• perating assets

Grow business beyond existing

• perating assets

Maintain strong balance sheet

QUESTION AND ANSWER PERIOD

Questions?

THANK YOU FOR ATTENDING THE 2012 DUNDEE PRECIOUS METALS ANNUAL & SPECIAL MEETING