NORTH AMERICAN PALLADIUM THE WORLDS ONLY PURE PLAY PALLADIUM - - PowerPoint PPT Presentation

NORTH AMERICAN PALLADIUM

2019 9 INVESTOR TOR DAY Y PRESENTATI TION ON March 26, , 2019 9

THE WORLD’S ONLY PURE PLAY PALLADIUM PRODUCER

TSX:PDL PDL | OTC:P :PALDF DF

Welcome elcome

DISCLAI SCLAIME MERS RS AND D FO FORWARD ARD-LOOKING OOKING INFORMA FORMATION TION

Certain information contained in this presentation constitutes 'forward-looking statements' or 'forward-looking information’, within the meaning

• f applicable Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. The words ‘target’,

‘plan’, ‘should’, ‘could’, ‘estimate’, ‘guidance’, and similar expressions identify forward-looking statements. Forward-looking statements in this presentation include, without limitation: information pertaining to North American Palladium Ltd. (the “Company”)’s strategy, plans or future financial or operating performance, such as statements with respect to, long term fundamentals for the business, operating performance expectations, project timelines, tailings management plan, mining method change, production forecasts, operating and capital cost estimates, expected mining and milling rates, cash balances, projected grades, mill recoveries, metal price and foreign exchange rates and other statements that express management’s expectations or estimates of future performance. Forward-looking statements involve known and unknown risk factors that may cause the actual results to be materially different from those expressed or implied by the forward-looking

• statements. Such risks include, but are not limited to: the possibility that metal prices and foreign exchange rates may fluctuate, the risk that the

Lac des Iles (“LDI”) mine may not perform as planned, that the Company may not be able to meet production forecasts, the possibility that the Company may not be able to generate sufficient cash to service its indebtedness and may be forced to take other actions, inherent risks associated with development, exploration, mining and processing including environmental risks and risks to tailings capacity, employment disruptions, including in connection with collective agreements between the Company and unions and the risks associated with obtaining necessary licenses and permits. For more details on these and other risk factors see the Company’s most recent Management’s Discussion and Analysis and Annual Information Form on file with Canadian securities regulatory authorities on SEDAR at www.sedar.com under the heading “Risk Factors”. This presentation also contains references to estimates of mineral resources and mineral reserves. The estimation of mineral resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation (including estimated future production from the LDI mine, the anticipated tonnages and grades that will be mined and the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be

• inaccurate. Mineral resource or mineral reserve estimates may have to be re-estimated based on: (i) fluctuations in the price of platinum; (ii)

results of drilling, (iii) metallurgical testing and other studies; (iv) mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licenses or changes to existing mining licenses. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The factors and assumptions contained in this presentation, which may prove to be incorrect, include, but are not limited to: that the Company will be able to continue normal business operations at its LDI mine, that metal prices and exchange rates between the Canadian and United States dollar will be consistent with the Company’s expectations, that there will be no significant disruptions affecting operations, and that prices for key mining and construction supplies, including labour, will remain consistent with the Company’s expectations. The forward-looking statements are not guarantees of future performance. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result

• f new information, events or otherwise, except as expressly required by law. Readers are cautioned not to put undue reliance on these forward-

looking statements. Investing in the Company's common shares involves significant risks. Prospective investors should carefully read and consider the risk factors described or referenced under the heading “Risk Factors” in the Company’s Annual Information Form, and in any applicable documents on file with Canadian securities regulatory authorities on SEDAR at www.sedar.com, before purchasing common shares. The Company prepares and presents its financial statements in accordance with IFRS. Certain financial measures highlighted in this presentation are financial measures that have not been prepared in accordance with IFRS. For a definition and reconciliation of these non-IFRS financial measures to the nearest IFRS financial measures, please refer to the appendix to this presentation. Such non-IFRS financial measures are used from time to time herein but should not be viewed as a substitute for IFRS measures of performance and others in the industry may define these measures differently.

ALL DOLLAR AMOUNTS SHOWN ARE IN CANADIAN DOLLARS UNLESS OTHERWISE STATED

3

2019 INVESTOR BREAKFAST PRESENTATION March 26, 2019

• 1. North American Palladium Overview
• 2. Nikos Kavalis, Metals Focus
• 3. Peter Gordon, Brookfield Asset Management
• 4. Lac des Iles Mine
• 5. Tailings Management
• 6. Exploration
• 7. Environment
• 8. Indigenous Relations
• 9. Finance
• 10. The Future

2019 INVESTOR BREAKFAST PRESENTATION

4

AGEND NDA A

March 26, 2019

COMPANY ANY OVERVIEW IEW

• North American Palladium (“NAP”) wholly owns and
• perates the Lac des Iles Mine in Ontario, Canada.
• Operational 25+ years; includes an underground

mine, surface mining, mill, year-round access, and low-cost power from the provincial grid.

• Unique ore body with solid exploration potential, run

by an experienced management team composed of proven operators.

• NAP is the only pure play palladium producer in the

world.

5

CAPITAL STRUCTURE

(As of December 31, 2018)

2019 INVESTOR BREAKFAST PRESENTATION

ONTARI RIO

Lac des Iles March 26, 2019

HI HISTORY Y AND D TUR URNAR AROUND OUND

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

6

1993 93

Productio

• duction

n starts. s.

200 002

Commis mission ion new w mill, , pit exp xpans ansion.

• n.

200 006

Under ergr grou

• und

nd via ramp mp acces cess s to mine e Roby by Zone. e.

200 008

Shut down wn after er financi ancial al crisis. s. Drilli ling ng on the

• ffset

t zone. e.

2010

Re Re-op

• pen,

en, start shaft project

• ject and

d Offset Zone e expa xpansio nsion n project.

• ject.

Purchas hased ed a gold d divi visio sion. n.

2013

Project

• ject over

er bud udge get and d behind hind sc schedule. edule. Gold ld divis vision ion sold. d. Brookf

• okfield

ield loans s US$130M. 0M.

2015

Brookf

• okfield

ield conver nverts s debt ebt to equit ity, , becomes comes 92% owner er. .

Mand ndat ate: e: Fix ix asset. t.

$67 $57 $45 2016 2017 2018 $50 $43 $37 2016 2017 2018 150 202 237 2016 2017 2018 3,736 5,198 6,263 2016 2017 2018

UND NDER ERGR GROUN OUND D PRODUCTI ODUCTION

Average tonnes per day

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

7

Thousand ounces produced

PAYAB ABLE LE PALLAD LADIUM IUM

C$ per tonne mined

UNDER ERGR GROUN OUND D MINING ING COS OST

C$ per tonne milled

TOTAL AL SITE E COS OST

OP OPERA RATION TIONAL AL TUR URNAR AROUND OUND SU SUCCESSFU CESSFULL LLY Y EXE XECUTED CUTED

Q4 6,720 Q4 $35 Q4 $45 Q4 66

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

8

Ni Nikos K

• s Kavalis

avalis

Founding partner, Metals Focus

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

9

Pe Peter er Gor Gordo don

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

10

Lac Lac des es Il Iles es mi mine ne

2018 TRIF

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

12

LAC C DES ILES MINE

2018 TRIF

ONTARIO IO MI MINING NING AVERA ERAGE GE

TRIF = Total Recordable Injury Frequency = (Recorded incidents X 200,000) / Total number of hours worked

4.1 4.3 3.8

2016 2017 2018

3.3 2.7 2.2

2016 2017 2018

2018 Ontario Mine Rescue Provincial Competition Team

SAFE FETY Y PERFORMA FORMANCE NCE

Systems ems Culture

ESTABLISHE BLISHED D MINE NE SITE E INFRA FRASTR TRUCTU UCTURE RE

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

13

Hoist

6,000 tonnes/day

Portal Access

2 portals via Roby Pit

Mill

13,500 tonnes/day

Overall Site Footprint 3,513 hectares Key Infrastructure Maintenance Shops

2,200 square meters

Power to Site

47 MW

Camp

686 rooms

Tailings Thickener

18,000 tonnes/day - 60% solids

Assay Lab

300 samples/day

Portal Access

2 portals via Roby Pit Overall Site Footprint 3,513 hectares

Power to Site

47 MW

Hoist

6,000 tonnes/day

Mill

13,500 tonnes/day

Maintenance Shops

2,200 square meters

Camp

686 rooms

Tailings Thickener

18,000 tonnes/day

Assay Lab

300 samples/day

ESTABLISHED BLISHED MINE NE SITE E INFRAS FRASTR TRUCTURE UCTURE

Highly-Expe xperi rienc nced Site Leadersh ship

 Management with substantial and diverse mining

experience

 Drawing from established mining camps across Canada

Diver erse se Workfor

• rce

ce

 Indigenous Employment = 10%  Female Employment = 4.5%

Po Positi tive ve Labour r Relation

• ns

 Hourly staff at mine site represented by one

union/bargaining unit (USW) – Positive strong relationship

 New three year collective agreement negotiated - expires

May 31, 2021 No Pe Pension

• n Liability

ty

 No pension liability at NAP/LDI  Registered Retirement Savings Plan in place

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

14

EMPL PLOYMENT OYMENT BY BY DEPARTME TMENT NT

2019 Q1

Total Head Count ~ 660 Total Contract ctor

• rs

s ~ 12 120

UG Oper erati ation

• ns

36% 36% Maintenan enance ce 25% 25% Surfac ace e Service ces 17% 17% Mine Site G&A 9% 9% Mill Oper erati ation

• ns

2% 2% Techni nical cal Service ces 6%

LA LAC DES ILE LES WO WORKFOR RKFORCE

ORE BODY

Of Offset t Block k

• 6,000 tpd hoisted to surface
• Sub-Level Shrinkage (SLS) and Open Hole Stoping (OHS) mining methods
• Supplemental feed from B2 zone (remains open)
• Remains open to the north, south and at depth

Roby by Block

• 6,000 tpd hauled to surface via portal access
• New mass mining approach will extract most of the better-grade palladium

resources below and adjacent to the Roby Pit

• Development for production ramp up currently in progress

Two primary mining zones and multiple draw points provide flexibility for consistent production performance

15 Reserve serves Categ tegory ry Tonnes es (000' 0's) s) Pd Pd (g/t) /t) Conta tained ed Pd Ounces es (000' 0's) s)

TOTAL L RESERV RVE

2P 2P 40,877 ,877 2.31 31 3,038 038

Longitudinal view, looking east

LDI Reserves es by by Source

2019 INVESTOR BREAKFAST PRESENTATION March 26, 2019

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

16

Under dergr grou

• und

nd Tonnage nage

(tonnes es mined per day ay)

3750 5200 6260 6680

2016 2017 2018 2019F

• Standardized designs
• Better fragmentation
• Improved recovery

Prod

• duction

uction Driver vers

Sub-Le Leve vel Shrinkag age e (SLS) Mining Method Process ess Optimiza mizati tion

• Equipment fleet sizing
• Short interval control
• Planning process
• Equipment and personnel tracking

HI HISTORIC RICAL AL PRODU ODUCTION CTION

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

17

Reduced Seismi micity Improved

• ved Reliability

Increas ased Recover ery Lower r Costs

SUB UB-LE LEVE VEL L SHR HRIN INKA KAGE (SLS LS) MINI NING NG METHO HOD

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

18

Ore-bod body y Modeli ling ng Continuous ntinuous Monit itor

• ring

ing Inde dependent pendent 3rd

rd Pa

Party ty Reviews

• Itasca stress modeling calibrated with historic

data

• Dr. Alex Turichshev hired as Principal

Geotechnical Engineer on site Quarterly reviews by:

• Itasca – Dr. Richard Brummer
• Knight Piesold – Dr. Rob Mercer
• Surface slope radar
• Time Domain Reflectometry (TDR)
• Underground seismic array
• Borehole Cavity Monitoring System (CMS)

3,747 47 3,952 52 3,183 83 3,857 57 4,264 64 3,920 20 4,759 59 5,195 95 6,249 49 6,300 00 5,339 39 5,800 00 6,131 31

Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 2015 2015 2016 2016 2017 2017 2018 2018

Total OHS SLS Seismic Events 1285 events per day 239 events per day

Ore Produc

• duction
• n by

by Zone e

(tonnes es mined per day ay)

GEOTECHN TECHNICAL ICAL MANAGEMENT MENT

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

19

Capital Mine Development

$26 mm

Equipment

$34 mm

Infrastructure

$29 mm

Total al Project ject Capit pital al $89 89 mm

Roby y Zone e Development elopment Project

• ject Costs

Existing infrastructure and SLS permits low-cost expansion to 12,000+ tpd from underground

ROBY BY MINE E EXPANSION ANSION

2,000 4,000 6,000 8,000 10,000 12,000 2018 H2 2019 2020 2021 2022 2023 2024 2025 2026 2027 AVERAGE TONNES OF ORE (TONNES/DAY)

Offset SLS Offset & B2 Open Stoping Roby SLC Roby Open Stoping Surface

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

20

Surface e and Undergrou

• und

nd Mining Undergroun und Mining

Surface stockpiles allow continuous milling above12,000 tpd until underground expansion is complete

FU FUTURE URE PRODUC ODUCTION TION PROFI FILE LE

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

21

Under ergrou

• und

nd Resour urce ce Definit ition

• n
• Definition drill optimization
• Increase in mineable tonnes

Addition itional al Surfac ace e Resour urces es

• Define peripheral resources
• Mine local pits

UP UPSID IDE E PRODU ODUCTION CTION OPPOR ORTUNITIIES TUNITIIES

Isometric View of Expanded Sheriff Pit 240L Definition Drill Program

Mill Flow Sheet

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

22

Crushing Circuit

• 1000 tph primary crusher
• 700 tph secondary crusher
• 350 tph pebble crusher

Grinding Circuit

• 8500 hp SAG mill
• 2 x 8500 hp Ball mills
• Tertiary grinding (dormant)

Flotation

• Parallel roughing
• Combined cleaning and

concentration

• Flash circuit (dormant)

MILL LL OPERA RATIONS IONS

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

23

82.1% 81.5% 79.9% 81.3%

78% 79% 80% 81% 82% 83% 84% 1.5 2 2.5 3 3.5 Recove very ry Head d Grade de

Recovery Curve 2016 2017 2018 FS

9,900 10,642 11,485 12,250

2016 2017 2018 FS

Milled ed Tonna nnage ge

(tonnes es milled ed per day ay)

Actual ual Recover covery vs. . Recover covery Curve ve

Current mill performance has not reached full potential and represents a substantial upside opportunity

MILL LL PERFORMA FORMANCE NCE

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

24

CONTI NTINU NUOU OUS S IMPR PROVEMENT MENT AND D TECHNOL HNOLOGY OGY

Process cess Opti timization mization Data a Manag agement ement Equi uipm pmen ent t Automat

• mation

ion

• Short interval control mine planning process
• Established management operating system
• Equipment sizing and optimization
• Ore flow modeling and draw strategy
• Automated hoist and loading pocket
• Installed LHD automation and actively investigated

automated truck haulage

• Advanced mill process control system
• Full operations data management system
• Site wide KPIs to drive fact based decision making
• Underground equipment and personnel tracking

Current network setup allows visibility of equipment and personnel movements in the ramp and select levels Operations database tracks tonnes and grade from the draw point through to the mill

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

25

Oppor

• rtunity

unity Descri ription ion

Crushing/ g/gr grinding nding

• ptimiza

mizati tion Balance the load between the crushing and grinding circuits Plant t automa mation tion Advanced control system to stabilize the plant and allow

• peration closer to technical limits

Conveyor yor and chute redesign gn Properly design transfer chutes and conveyors to reduce plug ups, spillage and reduce labour Screen and regrind nd rougher r flotation n tailing ngs Utilize Derrek screens to recover coarse particles in the tails; regrind, refloat those particles Talc pre-floa

• at

Float the talc away from the ore before adding float chemicals (PAX, 4377, CMC)

Extern rnal al Assistanc nce e Engag aged

• OEM engineering of crushing

and grinding

• Mineral processing

technology and automation

• Dave Hall – Consultant
• 30+ years metallurgy experience
• Ian Ward P.Eng. – Consultant
• 35+ years of plant engineering

experience

MILL LL IMPR PROVEM EMENT ENT PROJE JECT CTS

Tai ailings lings Ma Mana nageme gement nt

EXIS ISTING TING TAILI ILINGS NGS MANAGEME MENT NT FACILI ILITY Y AND CONSTR TRUC UCTION TION

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

27

ENGI GINE NEERI RING NG AND D QUALIT LITY Y CONT NTROL OL

Toby y Hofton, ton, Eng., ., M.Eng Eng Director, Projects

• 20 yrs construction and project

management Andre rew w Bodley

• dley,

, P. Eng., ., M.Sc. Sc. Senior Tailings Engineer

• 18 yrs design and management of

tailings facilities Todd d Thomps

• mpson
• n,

, P. Eng. Tailings Superintendent

• 22 yrs construction and project

management Chris is Blonde

• ndeel,

l, P. Eng. Project Engineer

• 28 yrs mining industry experience,

including tailings construction management Raym aymond

• nd Wo

Wong ng, , P. Eng., ., M.Sc. Sc. Senior Tailings Engineer

• 40 yrs in consulting geotechnical

engineering Jie Yang ng, , P. Eng., ., M.Sc. c. Senior Hydrotechnical Engineer

• 25 yrs in water management and

design of hydraulic structures John hn Marts tschuk huk, , P. Eng.

• 45 yrs mining industry experience,

including designing, permitting and managing tailings facilities John hn Wates, , P. Eng., , M.Sc. c.

• 40 yrs as geotechnical consultant,

specialized in paste and thickened tailings

• Dr. Iain

n Bruc uce, , P. Eng., , PhD

• 40 yrs in design, construction and

review of tailings dam builds

Inde dependent pendent Tailings ings Review view Board

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

28

LO LONG NG TERM TAILINGS ILINGS PLA LAN N TIME MELINE LINE

Present ent to 2020 20 2020 20 to 2025 25 2025 25 to End of Mine

Phase ase 1: Down wnstrea ream Raises ses Phase ase 2: Hybr ybrid id Ups pstrea ream/ / Downs nstr tream am Raises ises Phase ase 3: Greenf enfield ields s Tailing ings s Mana nagem gement ent Fa Facility ility

• Under construction (South

TMF and East Reclaim ponds)

• Tailings Deposition until

Q2-2020

• Staged development (5

stages)

• Alternating between STMF

and ETMF

• Finishing Detailed design
• Initiate permitting in May

2019

• Phased development

(2 stages)

• Expandable through additional

stage

• Downstream construction
• Baseline surveys initiated

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

29

UPSTREAM REAM RAIS ISE

Côrrego do Feijão Tailings Facility STMF Proposed Hybrid Raise

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

30

• Geometry: flatter slope and low ultimate height
• Free-draining construction materials
• Isolation of upstream raises from water

GREENFIELD NFIELD TAILINGS ILINGS FACILIT ILITY

Greenfields TMF

East Tailings Management Facility

Mill Roby Pit

CAMP LAKE

West Tailings Management Facility Water Management Facility 1 South Tailings Management Facility

Dam lifts for upstream raises

Sheriff Pit Greenfield Tailings Management Facility – Proposed Final Stage 690 Road Mine Access Road

Scale 1000 m March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

31

Ex Explor loration ation

33 33

NAP P is maintai aining ng a long-life fe asset t with prudent t explorati tion n investmen tment. t.

SIGNIFIC GNIFICANT ANT EX EXPLORA LORATIO TION POTENTI ENTIAL AL

Consistent replacement of reserves over past 15 years with limited exploration budget

Holistic tic Approac ach h to Future ture Reserve ve Growth wth

Expansion of Existing Reserves

7 targets identified for 2019 drill program High Priority: Camp Lake

Immediate Minesite Opportunities

New geophysical targets identified Initial testing in 2019 drill program High Priority: Creek Zone

Regional Exploration

Portfolio of early-stage to advanced exploration projects High Priority: Sunday Lake

2019 INVESTOR BREAKFAST PRESENTATION

Signif gnificant icant Explor ploration ation Po Potential ntial – Ongoing

• ing Expans

pansion ion of f Existing ting Reser erves ves

34

Plan view w map of the 1065 65 mining ng level. . Seven new mineral zones discover

• vered

ed in the last 3 ye years. .

Targe gets ts are ranked ked on potent ential ial for major

• r resour

urce ce gains. ns. Adj djace acent nt to current ent under ergr grou

• und

nd operat atio ions, ns, Cam amp p Lake ke has the potent ential ial to increa rease se resour urces ces at at dept pth. h.

Underground targets currently active

Longitudinal section, looking east, of the LDI deposit showing the location of the major mineral zones and reserves.

1 3 4 2 6 7 5

2019 INVESTOR BREAKFAST PRESENTATION

35 Rank nk & & Target 2018 Re Result lts 2019 9 Plan an

• 1. Creek Zone

47m @ 2.36 g/t Pd including 13m @ 5.18 g/t Pd Step-Out Drilling

• 2. Geophysical

Targets Identified from new surveys completed in Q3/Q4 2018 Validation Drilling

• 3. Baker Zone

South 164m @ 1.37 g/t Pd including 11.4m @ 2.13 g/t Pd Step-Out Drilling

Plan view map of the eastern rn part of the Lac des Iles Mine property ty showing g the location n of 2018 8 drill holes and geophy hysi sical al survey eys.

Testing ing the potent ntial ial for surface ace develo velopm pment ent in East t Mine ne Block; k; locat ated ed 1 – 2 km from m mill. ll.

Signif gnifica icant nt Explor loratio ation n Po Potentia ntial l – Immediat ediate e Minesit esite Oppor

• rtun

unities ities

2019 INVESTOR BREAKFAST PRESENTATION

• Sunday Lake is an advanced exploration-stage

property.

• Phase 2 drilling commenced in January 2019

following up on encouraging 2018 drilling results and new geophysical targets.

• The regional exploration properties host numerous

palladium occurrences but have not been explored using LDI’s successful new exploration model.

• Leveraging the significant knowledge gained by

the NAP exploration team.

36

Shebandowan Property

Thunder Bay

Sunday Lake Project Lac des Iles Mine & Mill Regional al Explor

• rat

ation

• n Proper

erties es and Area of St Strategic c Explorat ation n Interes est Continue ue to develop and test targets ts to discove

• ver

r additiona nal feed to the Lac des Iles Mill

Signif gnificant icant Explor ploration ation Po Potential ntial – Regional ional Po Portfolio

• lio

2019 INVESTOR BREAKFAST PRESENTATION

• >8,000 metres planned this winter.
• Targeting cumulative conductivity anomalies across the

base of the intrusion.

• Sunday Lake has delivered some of the thickest and

highest-grade PGM exploration results in the world over the past several years.

• Highlights from the 2017/2018 NAP drilling:
• SL-17-18b: 18.7m @ 4.0 g/t 3E *inc. 4.9m @ 6.17 g/t 3E and 0.64% Cu
• SL-18-21: 35.9m @ 3.9 g/t 3E inc. 6.5m @ 8.3 g/t 3E and 1.08% Cu
• SL-18-22: 33.2m @ 2.83 g/t 3E inc. 10.9m @ 5.0 g/t 3E and 0.51% Cu

37

Sunday ay Lake ke Property ty Current t and Historic ric Drilling ng Successfu ssful explorat ation n require res s skill, , experien ence, ce, perseve veran ance ce and adequate resourci cing.

• g. We continue

ue to apply innovat vation

• ns

s to improve

• ve outcome
• mes.

s.

Sund nday y Lake ke Explor ploration ation Upd pdat ate

Cumulat ative ve Conducti tivi vity ty Map for the Lower Pa Part of the Sunday ay Lake ke Intrusi sion

• n

Big Red Target Central Zone East Zone West Zone (?)

*3E = combined Pd + Pt + Au 2019 INVESTOR BREAKFAST PRESENTATION

En Envi vironme

• nment

nt an and In Indig digeno enous us Rel elations ations

HIGHLI HLIGHT HTS

• Established pro-active monitoring and sampling
• Tailings effluent relatively benign and low risk – greatest risk comes

from TSS, iron & aluminum

• No acid rock drainage/generation (ARD) at the mine site
• Strong relationships with Ministries – positive feedback received

(i.e. permit requests, site performance)

• Actively engaged with indigenous partners with regular weekly

contact ENVIRONMENTAL L PERM RMITT ITTIN ING

• Historical ability to obtain required permits within 3-6 month

timeframes

• All required permits in place to operate and conduct exploration

activities

• Future permitting in progress per regulatory requirements

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

39

OUR COMMIT ITMENT ENT TO SUSTAIN AINAB ABILI ILITY

We recognize environmental management as an integral core value and vital part of our culture. We are committed to operating in a transparent, ethical, and sustainable manner, while maintaining a healthy relationship with our neighbours.

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

40

Proj

• ject

ect Pe Perm rmit it Re Requ quire ireme ment nts Re Resp spon

• nsib

sible le Minis nistr try Stat atus us

2018 8 Closure re Plan Amendm ndment ent Closure re Planni ning

ENDM

Currently responding to questions from various Ministries Total Financial Assurance on file with ENDM: $21.4M Target Completion & Approval: April 30, 2019.

Sheriff f Pit Expansi sion

• n

Notice e of Material Change

ENDM

NOMC being prepared for submission and indigenous consultation commenced.

Claims ms to Lease (Green enfiel elds TMF) Letter er of Intent nt and Conversi sion n

• f Mining

g Claims s to Mining Leases es

ENDM

Multi year process – commenced in 2018. Base line sampling and fish habitat investigation commenced. Archeological study planned for Spring 2019. Awaiting confirmation of surveying requirements from Surveyor General's Office – Expected survey completion date of July 31, 2019

Early y Effluen ent t Discha harge e to Environmen nment Author

• rizat

ation

• n Letter

er

MECP

Approval received and commenced discharge to environment on February 21, 2019. Normal discharge date is March 15.

Construc ucti tion n Pe Permit t – Phase e 1 TMF Hybrid Raise Mining g Act/La Lakes s Rivers s Improvem

• vemen

ent t Act

ENDM/MNRF

Submission pending completion of design package. Target submission date: May

• 2019. Target approval date: September 2019.

In Indig igenous enous Rel elat ations ions

Gull Bay ay First Nation n (GBFN) Lac des Mille e Lacs First Nation n (LDMLFN FN) Whitesan sand First Nation (WSFN) N) Metis Nation

• n of Ontario
• (MNO)

Fort William m First Nation

• n (FWFN

FN) Red Sky Metis Indepen endent nt Nation (RSMIN)

AGREE EEME MENT NT STATUS TUS

• GBFN deemed most impacted indigenous group in territory by

Ministry

• Letter of Mutual Understanding and Respect (2013) and

Statement of Intent (2018) in place with GBFN. Currently negotiating a fuller Participation Agreement

• Agreements in place with MNO (2017) & RSMIN (2017)
• Negotiating MOUs and Exploration agreements with FWFN and

WSFN

• Agreements intended to contain commitments re consultation

protocols, employment and training, business opportunities, environmental stewardship and financial support

• Established lines of communications and consultation channels

in place

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

42

INDIGEN DIGENOUS S EMPLOYME YMENT NT

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

43

Indigen enou

• us Group

Total GBFN 15 15 FWFN 1 WSFN 11 11 MNO 15 15 RSMIN 1 Other 22 22 Total1,2 65 65

First Nation

• n/Metis

s Nation Indigen enou

• us

s Business ess Supply y Contract t Value GBFN

Amik Catering/R.A. Milne Crushing & Screening/TBT Engineering/Odaabaan/DST Engineering/Gridlink/Outland Camps/Wenzel Electric

$12,260,00 12,260,000 WSFN

LTL General Contracting

$2,0 ,076,00 6,000 FWFN

Oshki-Aki/Tom Jones

$7,000 ,000 MNO

Bosanti

• RSMIN

1Northwest Security/BluMetric Environmental/Sigfusson Northern/Canada Concrete

• Total3

14,343 ,343,000 ,000

Fi Fina nance nce

Healt lthy y Balance nce Shee eet, t, Cash ash Gene enerati ation

• n

and d Low-Cos Cost t Str Structu ture re

March 26, 2019 2019 INVESTOR BREAKFAST PRESENTATION

45 ONTARIO RIO

Lac des Iles

Share Price (22-Mar-19)

C$18.40

Shares Outstanding

58.8 mm

ITM Options

1.5 mm

Market Capitalization

C$1,082 mm

Cash1

C$12 mm

ITM Proceeds

C$9 mm

Debt1,2

C$49 mm Enter erpr pris ise Value ue C$1,110 0 mm mm

• 1. As at December 31, 2018
• 2. Debt includes credit facility (C$37 mm) and finance leases (C$12.1 mm).

CAPITAL STRUCTURE

He Healt lthy y Ba Bala lance nce Sh Shee eet

2019-03-25 2018 INVESTOR PRESENTATION | TSX:PDL | OTC:PALDF

46 46

Total al Debt (C$ million

• n)

66.1 43.5 37.0 30.7 29.9 12.1 12.0 12.2

2016 2017 2018 108.8 85.6 49.1

• 55%

55% Term Loan Leases Revolver

Year-end figures

Liqu quidit idity y (C$ million)

• n)

8.1 109.7 15.0 11.1 12.3

2017

2.3

2016 2018 17.3 19.2 122.0 +$ +$104 04.7 .7 Cash Credit

Current ent Ratio

(Strong

• ng Liquid

quidity) ty)

1.1 0.8 1.6 2016 2018 2017

Debt bt/Equi Equity Ratio

(Financi inancing Growth th throug

• ugh

h Cash Generati ation)

• n)

0.4 0.4 0.2 2017 2016 2018

Cash h Ge Gener eration ation

2019-03-25 2018 INVESTOR PRESENTATION | TSX:PDL | OTC:PALDF

47 47

Year-end figures

Pa Pallad adium ium Sold d (payab able le ounces) ces)

149,120 197,311 232,8 2,890 90

2018 2016 2017

+56 56%

Palladi adium um Revenue nue per Ounce ce Sold d 1 (US$ $ per ounce) ce)

$634 $876 $1,111

2016 2017 2018

+75 75%

• 1. Non-IFRS measure, please refer to Non-IFRS Measures in the MD&A.

Revenue enue (C$ million)

• n)

$166.9 $272.4 $396.8 .8

2016 2017 2018

+138 38% $4.7 $86.2 $167 67.8 .8

2018 2017 2016

+3,470%

Adj djus usted ed EBIT ITDA A 1 (C$ million)

• n)

Lo Low-Cos Cost t St Structure cture

2019-03-25 2018 INVESTOR PRESENTATION | TSX:PDL | OTC:PALDF

48 48

Under dergr grou

• und

nd Mining g Cost 1 (C$ per tonne ne mined ed)

$52 $59 $44 $45 $56 $44 $40 $37 $39 $38 $37 $35

Q4 2016 Q1 2016 Q4 2017 Q2 2016 Q3 2017 Q3 2016 Q1 2017 Q3 2018 Q2 2017 Q1 2018 Q2 2018 Q4 2018

$50 $43 $37

2016 2017 2018

• 25%

25%

Prod

• duction

uction Cost 1 (C$ per tonne ne milled ed)

$94 $59 $62 $62 $80 $68 $56 $42 $47 $41 $46 $45

Q3 2017 Q1 2016 Q2 2016 Q1 2017 Q4 2016 Q2 2018 Q3 2016 Q2 2017 Q4 2017 Q1 2018 Q3 2018 Q4 2018

$67 $57 $45 $45

2016 2017 2018

• 33%

33%

• 1. Non-IFRS measure, please refer to Non-IFRS Measures in the MD&A.

Go Goin ing g Forwar ard d – Cash sh Ge Gener eration ation (20 2018 8 Fea easi sibility bility St Study dy 2)

2019-03-25 2018 INVESTOR PRESENTATION | TSX:PDL | OTC:PALDF

49 49

After-tax Annual Cash Flow – C$ million

$52 $56 $144 $119 $126 $93 $86 $64 $46 $54 $208 $142 2023 E 2021 E 2019 E $145 2020 E 2022 E $165 $180 US$1,250 / oz Pd @ 1.35 USD:CAD FX US$1,040 / oz Pd @ 1.25 USD:CAD FX

~C$85 mm in capex on mine development to increase to 12 ktpd feed

• 2. Refer to 43-101 Feasibility Study published October 2, 2018.

5-year Cumulative After-tax Annual Cash Flow of C$ 840 million (US$1,250/oz Pd @ 1.35 FX)

Go Goin ing g Forwar ard d – Lo Low Cost t St Structur ucture e (20 2018 8 Fea easibi ibilit lity y St Study dy 2)

2019-03-25 2018 INVESTOR PRESENTATION | TSX:PDL | OTC:PALDF

50 50

All-in Sustaining Cost 1,3 – US$ / oz palladium produced

$560 $571 $463 $492 $483 $162 $149 $108 $141 $90 $722 2021 E 2019 E 2020 E 2022 E 2023 E $720 $570 $634 $573 Cash Cost Sustaining Capital

• 1. Non-IFRS measure, please refer to Non-IFRS Measures in the MD&A.
• 2. Refer to 43-101 Feasibility Study published October 2, 2018.
• 3. Base case pricing (US$1,040 / oz Pd @ 1.25 USD:CAD FX).

Res esponsi ponsible ble Capit pital al All llocati cation

• n

2019-03-25 2018 INVESTOR PRESENTATION | TSX:PDL | OTC:PALDF

51 51

2017 & 2018 Total al Reduction of Debt $60 mm Investment in Growth $128 mm Investment in Exploration $17 mm Return to Shareholders $7 mm

Value Creation (2017 & 2018)

Th The e Fut utur ure

• Reliable, predictable operational

performance

• Significant operational upside
• Reserve growth potential
• Strong palladium outlook
• Motivated principal shareholder

Q&A Q&A

54

Cash h Ge Gener eration ation

2019-03-25 2018 INVESTOR PRESENTATION | TSX:PDL | OTC:PALDF

55 55

Year-end figures – C$ million (except per ounce)

2016 2017 2018 Payable Palladium Sold (ozs) 149,120 197,311 232,890 Average Price per ounce Sold 1 (US$/oz) US$ 634 US$ 876 US$ 1,111 Palladium Revenue 126.0 224.6 335.9 By-product Revenue 40.9 47.8 60.9 Gross Revenue 166.9 272.4 396.8 Smelting, Refining & Freight (15.6) (12.2) (17.4) Royalty (6.8) (12.8) (17.0) Production Costs (132.2) (153.2) (187.1) Corporate G&A (5.8) (7.4) (7.8) Other (1.8) (0.6) 0.3 Adjusted EBITDA 1 4.7 86.2 167.8 Exploration (4.6) (5.8) (11.2) Capital Expenditures (50.5) (62.5) (66.3) Cash Generated from Operations (50.4) 17.9 90.3

• 1. Non-IFRS measure, please refer to Non-IFRS Measures in the MD&A.

Effec ecti tive ve Cost t St Structure cture – Cash h Cost 1 & & All ll-in in Su Sustai aining ning Cost 1

Year-end figures – C$ million (except per ounce)

2019-03-25 2018 INVESTOR PRESENTATION | TSX:PDL | OTC:PALDF

56 56 2016 2017 2018 Production Costs 132.2 153.2 187.1 Smelting, Refining & Freight 15.6 12.2 17.4 Royalty 6.8 12.8 17.0 Inventory Adjustment 1.0 5.3 2.4 By-product Revenue (40.9) (47.8) (60.9) Total Cash Cost 1 114.7 135.7 163.0 Corporate G&A 5.8 7.4 7.8 ARO Accretion & Other 1.4 0.2 0.5 Sustaining Capital Expenditures 17.9 38.3 41.4 All-in Sustaining Cost 1 139.8 181.6 212.7 Payable Palladium Produced (ozs) 149,563 201,592 237,461 Average Forex Rate (USD/CAD) 1.33 1.30 1.30 Average Cash Cost per ounce Produced 1 (US$/oz) US$ 575 US$ 518 US$ 529 Average All-in Sustaining Cost per Ounce Produced 1 (US$/oz) US$ 701 US$ 694 US$ 690

• 1. Non-IFRS measure, please refer to Non-IFRS Measures in the MD&A.

Cash h Ge Gener eration ation Go Goin ing g Forwar ard d – 20 2018 8 Fea easibi ibilit lity y St Study dy 2

2019-03-25 2018 INVESTOR PRESENTATION | TSX:PDL | OTC:PALDF

57 57

Year-end figures – C$ million (except per ounce)

2019 E 2020 E 2021 E 2022 E 2023 E Payable Palladium Sold (ozs) 234,600 252,892 279,700 268,187 267,738 Average Price per ounce Sold 1,3 (US$/oz) US$ 1,250 US$ 1,250 US$ 1,250 US$ 1,250 US$ 1,250 Palladium Revenue 395.9 426.8 472.0 452.6 451.8 By-product Revenue 3 66.1 72.6 83.8 80.1 82.3 Gross Revenue 462.0 499.3 555.8 532.7 534.1 Smelting, Refining & Freight 3 (16.9) (17.9) (19.4) (18.8) (18.8) Royalty 3 (20.0) (21.7) (24.1) (23.1) (23.2) Production Costs (192.1) (215.6) (202.0) (203.2) (201.7) Corporate G&A 2 (4.6) (4.6) (4.6) (4.6) (4.6) Adjusted EBITDA 1 228.4 239.6 305.7 283.0 285.8 Exploration 2

• Capital Expenditures

(83.1) (88.4) (49.9) (47.6) (31.0) Cash Generated from Operations 145.3 151.2 255.8 235.4 254.8 Taxation 3 (0.7) (8.8) (47.8) (70.3) (74.7) After-tax Cash Flow 144.6 142.4 207.9 165.1 180.1

• 1. Non-IFRS measure, please refer to Non-IFRS Measures in the MD&A.
• 2. Refer to 43-101 Feasibility Study published October 2, 2018.
• 3. Upside pricing sensitivity.(US$1,250/oz Pd @ 1.35 USD:CAD FX)

Effec ecti tive ve Cost t St Structure cture Go Goin ing g Forwar ard d – 20 2018 8 Fea easibility ibility St Study dy 2

2019-03-25 2018 INVESTOR PRESENTATION | TSX:PDL | OTC:PALDF

58 58

Year-end figures 3 – C$ million (except per ounce)

2019 E 2020 E 2021 E 2022 E 2023 E Production Costs 192.1 215.6 202.0 203.2 201.7 Smelting, Refining & Freight 15.9 17.0 18.4 17.8 17.8 Royalty 15.6 17.2 19.0 18.2 18.3 By-product Revenue (60.7) (67.7) (77.6) (74.2) (76.2) Total Cash Cost 1 162.9 182.1 161.8 165.0 161.6 Corporate G&A 4.6 4.6 4.6 4.6 4.6 Sustaining Capital Expenditures 42.6 42.9 33.1 42.8 25.5 All-in Sustaining Cost 1 210.1 229.6 199.5 212.4 191.6 Payable Palladium Produced (ozs) 234,600 252,892 279,700 268,187 267,738 Average Forex Rate (CAD/USD) 1.24 1.26 1.25 1.25 1.25 Average Cash Cost per ounce Produced 1 (US$/oz) US$ 560 US$ 571 US$ 463 US$ 492 US$ 483 Average All-in Sustaining Cost per Ounce Produced 1 (US$/oz) US$ 722 US$ 720 US$ 570 US$ 634 US$ 573

• 1. Non-IFRS measure, please refer to Non-IFRS Measures in the MD&A.
• 2. Refer to 43-101 Feasibility Study published October 2, 2018.
• 3. Base case pricing (US$1,040 / oz Pd @ 1.25 USD:CAD FX).

MINE NE RESERVE VES

Offse set t Bloc

• ck

k

• Continued focus on sub-level shrinkage mining of the best grade-thickness ore.
• Supplemental feed from B2 zone (remains open) and Sheriff South.

Ro Roby Block

• New mass mining approach will extract most of the better-grade palladium resources below and adjacent to the Roby Pit.
• Augmented by new production from the extremities of the Roby deposit.

Feasibility Study Delivers 3 Million Ounce Reserve – a 75% Increase compared to 2017 and a 13% Increase in Total Reserves + Resources

59

Res eser erve ves Categ egory Tonnes es (000's) Pd Pd (g/ g/t) Pt (g/t) Au Au (g/t) Cu (%) Ni Ni (%) Contai ained ned Pd Ounces es (000's) Offset Underground Proven 3,089 2.30 0.21 0.16 0.05 0.07 228 Probable 17,159 3.01 0.24 0.24 0.08 0.10 1,661 Roby Underground Proven 2,279 1.76 0.19 0.12 0.04 0.04 128 Probable 14,569 1.89 0.19 0.13 0.05 0.05 886 Surface Proven 300 1.94 0.16 0.10 0.05 0.06 18 Probable 3,479 1.02 0.12 0.08 0.03 0.06 114 TOTAL L RESERV RVE

2P 2P 40,877 ,877 2.31 31 0.21 21 0.17 17 0.06 06 0.07 07 3,038 038

Longitudinal view, looking east

LDI Reserves es by Source

2019 INVESTOR BREAKFAST PRESENTATION March 26, 2019