PRODUCING GOLD IN CALIFORNIA PRODUCING GOLD IN CALIFORNIA TSX: GQM | OTCQX: GQMNF | NOVEMBER 2016 TSX: GQM | OTCQX: GQMNF | NOVEMBER 2016
Cautionary Statements Cautionary Statements The information in this presentation includes certain “forward-looking information” and “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933 (as amended), section 21E of the Securities Exchange Act of 1934 (as amended), the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, plans for and intentions with respect to our properties, statements regarding intentions with respect to the Soledad Mountain project’s (the “Project”) current and future operating or financial performance including production, rates of return, recoveries, and operating costs are forward-looking statements. Statements concerning Mineral Reserve Estimates and Mineral Resource Estimates are also forward-looking statements in that they reflect an assessment, based on certain assumptions, of the mineralization that would be encountered and mining results if the Project was mined in the manner described. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from statements in this presentation regarding our intentions include, without limitation, risks and uncertainties regarding: the operation of the Project, including additional capital requirements for the Project or future acquisitions; unexpected liabilities of changes in the cost of operations, including costs of extracting gold and silver; refining costs; operating hazards and risks inherent in mining operations; changes to the political environment, laws or regulation, or more stringent enforcement of current laws or regulations in the United States or California; the ability of Golden Queen Mining Company, LCC to obtain and maintain licenses, access rights or permits, required for current and future planned operations; unexpected uninsurable risks that may arise; risks associated with any future hedging activities; equipment breakdowns and non-compliance with environmental and permit requirements. Other risks and uncertainties include risks related to volatility in global equities, commodities, foreign exchange, market price of gold and silver and a lack of market liquidity; changes in planned work resulting from logistical, technical or other factors; that results of operations on the Project will not meet projected expectations due to any combination of technical, operational or market factors; uncertainties involved in the interpretation of technical data and the estimation of gold and silver resources and reserves; and other risks and uncertainties disclosed in the section entitled "Risk Factors“ contained in our Annual Report on Form 10-K for the year ended December 31, 2015. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in our business, including risks inherent in mining. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, should not to put undue reliance on forward-looking statements. Any forward-looking statement made by us in this presentation is based only on information currently available. Scientific and technical information in this presentation was reviewed and approved Peter A. Herrera, CPG., as a Qualified Person as defined by National Instrument 43-101. All amounts ar All amounts are in US dollars except as noted. e in US dollars except as noted. 2
Golden Queen Capital Market Infor Golden Queen Capital Market Information mation Top Shareholders* Capital Structure – November 2016 Listings TSX: GQM | OTCQX: GQMNF Clay Family 30% Shares Issued & Outstanding 111,048,683 Sprott Asset Management L.P . 6% Options 1,070,000 Continental Casualty 3% Warrants (non-listed) 10,757,700 Gabelli Funds LLC 3% Warrants (GQM.WT) 5,560,000 *Source: TSX Infosuite Fully Diluted Shares 128,436,383 Market Cap (Basic) US$89 MM | C$119 MM Cash * US$23 MM Debt ** US$49 MM Enterprise Value US$115 MM Insiders Ownership ~30.0% Institutional Ownership ~16.0% Public Float ~54.0% * Cash (September 30, 2016) comprised of US $15.7 mm 100% attributable to Golden Queen Mining Ltd. and 50% of Golden Queen Mining LLC’s cash balance of US$15.4 mm. ** Debt (September 30, 2016) comprised of US$41.7 mm loan and 50% of Golden Queen Mining LLC’s mobile equipment loans of US$14.9 mm. 3
¡ Investment Highlights Investment Highlights ¡ ¡ P Gold and silver producer P US-based project, 50% owned, fully funded to positive cash flows P Located in a mining- friendly jurisdiction with existing infrastructure P Robust project economics; low cost structure P Construction 100% complete, in-line with budget P Experienced management team with excellent joint venture partners Inaugural gold pour on Mar Inaugural gold pour on March 1, 2016 ch 1, 2016 P Significant upside potential 4
¡ Strategic Focus Strategic Focus ¡ ¡ OPERA OPERATIONS TIONS GROWTH GROWTH BALANCE SHEET BALANCE SHEET Ø Crushing-Scr Crushing-Screening eening Ø Or Organic gr ganic growt owth Ø Debt r Debt reduct eduction ion Plant optimizat Plant opt imization ion - - expand Heap Leach pad expand Heap Leach pad capacity capacity - achieve 10,000 to 12,000 - achieve 10,000 to 12,000 - potential for resour - potential for r esource ce ton per day throughput ton per day thr oughput increase with exploration incr ease with exploration drilling drilling Ø Add value wit Add value with h Ø Maintain capital Maintain capital aggr aggregate sales egate sales discipl iscipline ine Ø Maximize Maximize shar shareholder r eholder retur eturns ns 5
Pr Project Location oject Location Town of Mojave & own of Mojave & • The Project is located in Kern County ~90 miles Highway Highway northeast of the Los Angeles International Airport Solar panels Solar panels • Access to site is from State Route 14 and an existing paved County road, Silver Queen Road Lar Large wind far ge wind farm m Production Pr oduction • Power line, water supply and railroad within ~1 water well water well mile of the Project Power line to site Power line to site • Project located ~5 miles south of the town of Mojave • Railroad hub for the Burlington Northern and Union Pacific railroad lines Soledad Mountain Pr Soledad Mountain Project oject California Califor nia • Kern County’s economy strongly depends on natural resources o Kern County is the state's top oil-producing county and accounts for ~75% of California ’ s oil production (California is the 3rd largest oil producing state in the U.S., behind Texas and North Dakota) o Wind turbines to the west of the Project form collectively one of the largest onshore wind energy projects in the world Excellent infrastructure nearby: paved road, power, water, railroad 6
¡ Site Overview Site Overview ¡ ¡ 10 year + mine life with potential to extend Northwest Pit Mining until Q4 2017 East Pit Mining through early 2022 Main Pit Phase 1 Mining until Q4 2017 4
¡ Soledad Mountain Pr Soledad Mountain Project Overview oject Overview ¡ ¡ Looking East Looking East Heap Leach Pad & Heap Leach Pad & Merrill-Cr Merrill-Crowe Plant owe Plant Crushing-Scr Crushing-Screening Plant & eening Plant & Assay Laboratory Assay Laboratory Mining Mining Northwest Pit Northwest Pit 8
¡ Crushing-Scr Crushing-Screening Plant eening Plant ¡ ¡ Secondary Secondary Assay Assay Cone Crusher Cone Crusher Primary Jaw Crusher Primary Jaw Crusher Laboratory Laboratory Coarse Or Coarse Ore Stockpile e Stockpile 9
Crushing-Scr Crushing-Screening Plant eening Plant Secondary Section Secondary Section Cone Crusher Cone Crusher Fine Or Fine Ore Bin e Bin Agglomeration Drum Agglomeration Drum Tertiary Section ertiary Section High Pr High Pressur essure Grinding Roll e Grinding Roll (HPGR) (HPGR) Conveyor to Heap Conveyor to Heap Leach Pad Leach Pad 10
¡ Heap Leach Pad & Merrill-Cr Heap Leach Pad & Merrill-Crowe Plant owe Plant ¡ ¡ Ter$ary ¡Sec$on ¡– ¡High ¡Pressure ¡ Grinding ¡Roll ¡(HPGR) ¡ Stage 1 Phase 1 Heap Stage 1 Phase 1 Heap Leach Pad Leach Pad Conveyor fr Conveyor from om Merrill-Cr Merrill-Crowe Plant & owe Plant & Crushing-Screening Plant Crushing-Scr eening Plant Overflow Pond Overflow Pond Grasshopper Grasshopper Conveyors Conveyors Agglomerated Or Agglomerated Ore on e on the Pad the Pad 11
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