A tu rnarou nd story f or th e Canadian Mining Eye in Q 1 201 6

A Q & A w i th R and al l O l i p hant, Ex ecuti v e C hai rman of N ew G ol d and C hai rman of the W orl d G ol d C ounci l pg. 3

Canadian Mining EyeQ 1 2016

The C anad i an M i ni ng Ey e i nd ex g ai ned 2 6 % d uri ng Q 1 2 0 1 6 , as comp ared to a 2 % g ai n i n Q 4 2 0 1 5 . The C anad i an M i ni ng Eye index significantly outperformed the S& P / TSX C omp osi te i nd ex , w hi ch g ai ned onl y 4 % d uri ng the q uarter. The L ond on M etal Ex chang e i nd ex ( L M EX ) g ai ned a mod est 3 % ov er the q uarter, w hi l e EY’ s A I M - b ased M i ni ng Ey e i ncreased b y 9 % d uri ng Q 1 2 0 1 6 . The S& P / TSX C omp osi te M etal s and M i ni ng i nd ex w i tnessed a significant gain of 34% after a modest gain of 4 % i n Q 4 2 0 1 5 . The i nd ex ’ s g ai ns w ere mai nl y d ri v en b y an i ncrease i n commod i ty p ri ces, l arg el y on the b ack of a rob ust i ncrease i n g ol d p ri ces.

M aj ors w i tnessed a rob ust g ai n of 2 1 % i n Q 1 2 0 1 6 , comp ared w i th a sl i g ht g ai n of 1 % i n Q 4 2 0 1 5 . C anad i an mi ni ng eq ui ti es show ed strong si g ns of i mp rov ement during the first quarter of 2016 sup p orted b y a reb ound i n metal p ri ces.

I mp rov ed g ol d and b ase metal p ri ces ap p eared to g enerate much- need ed p osi ti v e momentum i n the sector. Some comp ani es w i tnessed more than a 7 0 % i ncrease i n thei r share p ri ces ov er the q uarter, w hi ch i s more than f our ti mes the g ol d p ri ce g row th. N ot surp ri si ng l y , the mark et i s rew ard i ng comp ani es w i th f av orab l e f und amental s, a strong b al ance sheet and op erati ng l ev erag e.

The strong g row th of C anad i an mi ni ng equities also indicates benefits from strateg i c i ni ti ati v es carri ed out b y the mi ners on non- core asset sal es, ag g ressi v e cost control measures and a d i sci p l i ned ap p roach i n red uci ng d eb t. W e saw a mi x of acti v i ti es and p rog ress among comp ani es ov er the q uarter b oosted b y strong metal p ri ces.

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Canadian Mining Eye index and peers, l ast 1 2 month s

Source: EY, Thomson Datastream

Canadian Mining Eye U K Mining Eye (rebased)

F TSE A l l Sh are Mining (rebased) S&P/TSX Composite Metal s & Mining (rebased)

S&P/A SX 3 00 Metal s & Mining (rebased)

W hi l e accessi ng cap i tal remai ns a k ey p ri ori ty , mi ners are l ook i ng f or strateg i c partners and innovative financing solutions to fund growth. Furthermore, we saw some p osi ti v e f und i ng stori es i n the sector w i th l ong er- term i nv estors recog ni z i ng strateg i c q ual i ty p roj ects.

C o m m o di t y t r ends• G ol d p ri ces i ncreased b y 1 6 % i n Q 1 2 0 1 6 , af ter a 5 % d ecl i ne i n Q 4 2 0 1 5 .

G ol d had a strong start i n 2 0 1 6 , hi tti ng a hi g h of U S$ 1 ,2 7 1 / oz d uri ng the quarter. Gold prices surged as the Federal Reserve gave strong signals of sl ow i ng d ow n the i nterest rate g row th ex p ectati ons f or 2 0 1 6 . The Federal Reserve revised down the number of interest rate hikes to two as comp ared to f our esti mated p rev i ousl y . G ol d p ri ces w i tnessed an up w ard run l arg el y on the b ack of i nv estors b uy i ng g ol d as a saf e hav en i nv estment. In addition, prevailing financial uncertainly and slower economic growth hel p ed g ol d p ri ces. G ol d p ri ces w ere al so b oosted b y neg ati v e i nterest rate p ol i ci es i mp l emented b y central b ank s i n Europ e and J ap an. Desp i te the current up l i f t, g ol d p ri ces remai ned v ol ati l e d uri ng the q uarter i mp acted b y uncertai nty i n the U S d ol l ar.

• A mod est i mp rov ement i n b ase metal s p ri ces f ai l ed to of f set w i d esp read l oss of confidence due to ongoing concern about growth in China and subdued d emand f or metal s. C op p er and z i nc g ai ned 4 % and 1 4 % resp ecti v el y , d uri ng the q uarter on the L ond on M etal Ex chang e ( L M E) . N i ck el and l ead w ere d ow n 4 % and 6 % resp ecti v el y , on the L M E ov er Q 1 2 0 1 6 . A s cop p er i nv entori es remai n hi g h and a surp l us i s ex p ected to conti nue, cop p er p ri ces are ex p ected to remai n l ow . W hi l e w e saw some d i sp osal of b ase metal s mi nes among comp ani es, maj ors conti nue to hol d thei r hi g h- q ual i ty cop p er mi nes for the longer-term benefits.

2 | Canadian Mining Eye Q 1 2 0 1 6

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Canadian Mining Eye index and peers, l ast 1 2 month s

Source: EY, Thomson Datastream

Canadian Mining Eye U K Mining Eye (rebased)

F TSE A l l Sh are Mining (rebased) S&P/TSX Composite Metal s & Mining (rebased)

S&P/A SX 3 00 Metal s & Mining (rebased)

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Canadian Mining Eye index, gol d, copper and L ME I ndex ov er Q 1 201 6

Canadian Mining Eye L MEX I ndex (rebased) G ol d (rebased) Copper (rebased)

Source: EY, Thomson Datastream

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O ut lo o kW hi l e the C anad i an M i ni ng Ey e’ s stronger start to 2016 is a reflection of the p rog ress that many comp ani es are mak i ng , w e b el i ev e thi s y ear w i l l b ri ng mod est return to g row th, und erp i nned b y i mp rov ed i nv estor confidence. With government bonds ex p ected to see l i mi ted up si d e, g ol d ap p ears more attracti v e f or mi ti g ati ng risk and portfolio diversification in 2 0 1 6 . A ccord i ng to a W orl d G ol d C ounci l rep ort, neg ati v e i nterest rate p ol i ci es may resul t i n structural l y hi g h d emand f or g ol d . A l thoug h, some anal y sts v i ew that an i ncrease i n g ol d p ri ces i s unsustai nab l e, there i s room f or op ti mi sm i n the near term, w i th an ex p ectati on of i nv estment d emand f or g ol d . A s the mark et i s ex p ecti ng f urther i ncrease i n g ol d p ri ces g i v en that p ol i cy mak ers are l i k el y to k eep interest rates low, some confidence p rev ai l s ov er the d i recti on of the g ol d p ri ces. The ex p ectati on of near-term p ri ce i ncreases i n many metal s i mp l i es the l i k el i hood of a b road - b ased recov ery i n mi ni ng share p ri ces. A s mark ets anti ci p ate more of the p osi ti v e env i ronment ov er the nex t f ew q uarters, w e are l i k el y to see a turnaround of f ortunes f or comp ani es. B ut at the other end of the sp ectrum, w i th chal l eng i ng g l ob al mark et cond i ti ons, some cauti on i s w arranted .

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Canadian Mining Eye index, gol d, copper and L ME I ndex ov er Q 1 201 6

Canadian Mining Eye L MEX I ndex (rebased) G ol d (rebased) Copper (rebased)

Source: EY, Thomson Datastream

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Canadian Mining Eye Q 1 2 0 1 6 | 3

B r uc e S p r ag ue, E Y ’ s C anadi an M i ni ng & M et als L eader , t alk ed t o R andall O li p h ant ab o ut t h e les s o ns lear ned i n t h e do w nt ur n.

F o llo w i ng ar e t h e h i g h li g h t s o f t h ei r c o nver s at i o n.

Q : I n addition to you r rol e at N ew G ol d, you ’ re Ch airman of th e W orl d G ol d Cou ncil . W h at is it?

A : The W orl d G ol d C ounci l came ab out i n the mi d - ’ 8 0 s w hen a g roup of p ri mari l y South A f ri cans g ot tog ether to mark et our p rod uct. O v er the y ears, w e’ v e tak en on a numb er of i ssues: w e hav e g ol d sav i ng s accounts; w e w ork ed on setti ng up the Shang hai b ul l i on ex chang e w here they b el i ev e they w i l l b e the numb er one i mp orter of g ol d i n the w orl d ; w e w ork ed on i mp ort d uti es i n I nd i a. W e ed ucate central b ank ers on the rol e of g ol d and w ork w i th the Europ ean C entral B ank ’ s ag reements l i mi ti ng g ol d sal es. W hat a l ot of p eop l e d on’ t real i z e i s that onl y 6 % of al l g ol d i s consumed i n N orth A meri ca, and al l N orth A meri can consump ti on now i s sup p l i ed f rom p eop l e recy cl i ng . The new mark ets are i n I nd i a and C hi na w i th each ab out a q uarter of the g l ob al d emand . W e d o a l ot to b ui l d a f ound ati on of our p rod uct.

Q : H ow do you th ink th is dow ntu rn h as ch anged th e sector?

A : I thi nk thi s l ow commod i ty p ri ce env i ronment has f orced ev ery b od y to reex ami ne thei r b usi ness mod el . W hat they ’ v e f ound i s that a b i g scal e d i d n’ t real l y l ead to a better result. Big office culture and huge head office staffs meant that their attention was diverted all over the place. Companies have figured out the 80–20 rule — a few of the assets g enerates most of the cash. I thi nk thi s ack now l ed g ment w i l l mak e f or a heal thi er b usi ness.

Q : W h at’ s you r sense on recent acq u isitions?

A : I ’ m not surp ri sed to see the recent d eal s. There i s a sense of op ti mi sm. I thi nk as the p ri ces g et a b i t heal thi er, p urchasers start to f eel that may b e w e’ re throug h the troug h, and they ’ re say i ng l et’ s meet i n the mi d d l e and g et stuf f d one.

Q &A w ith R andal l O l iph ant, Execu tiv e Ch airman of N ew G ol d and Ch airman of th e W orl d G ol d Cou ncil

4 | Canadian Mining Eye Q 1 2 0 1 6

Q : W h y is N ew G ol d embark ing on th e constru ction of R ainy R iv er at th is point?

A : To us, i t mak es sense to b ui l d now . The chal l eng e the industry had was access to services — the power was in the hand s of the sup p l i ers. Tod ay , i t’ s a f av orab l e env i ronment. So f or us i t’ s j ust a l og i cal thi ng to d o. W e b el i ev e b ui l d i ng i n a l ow - p ri ce env i ronment and hav i ng a mi ne g o on- stream i n a b etter mark et i s the l og i cal thi ng to d o.

Q: Part of the financing for Rainy River was the stream f u nd, and w e saw a l ot of streaming in 201 5 . W h at is th e future of stream financing and how does it help the industry in th is ch al l enged env ironment?

A : The streami ng comp ani es are ones w ho are w i l l i ng to tak e the metal p ri ce ri sk . B ut g eneral l y b ank s aren’ t. Streami ng comp ani es hav e ev ol v ed ov er ti me. I ni ti al l y , they w ere j ust roy al ty comp ani es, b ut w i th i ncreased comp eti ti on d ue to the arri v al of g roup s such as p ensi on f und s, i t’ s b ecomi ng more l i k e merchant b ank i ng w here w e’ re p urchasi ng shares and tak i ng a stream. I t g i v es us op ti ons to d o d i f f erent thi ng s and i t’ s g etti ng real l y creati v e.

Q : W h y is priv ate eq u ity f u nding not mak ing its w ay into th e sector?

A : True p ri v ate eq ui ty d oes not tak e commod i ty p ri ce ri sk . That’ s not the b usi ness they ’ re i n. They w ant a p rov en b usi ness mod el and they w ant a strateg y . There w ere so many mi ssed op p ortuni ti es ov er the p ast ei g ht y ears f or comp ani es to sel l assets to p ri v ate eq ui ty . W e coul d n’ t g et any one w ho w anted to sel l any assets b ecause i t w as a b ul l i sh mark et and they w anted the up si d e. I thi nk w e’ re g etti ng a l ot cl oser to seei ng thi ng s hap p en. N ow p ri v ate eq ui ty comp ani es hav e p eop l e w ho k now recl amati on mi ni ng , p ermi tti ng and they hav e a hi story of creati ng v al ue. So I thi nk they ’ l l b e more acti v e i n the f uture.

Q : H av e w e done a good j ob at tak ing costs ou t of th e bu siness? A re w e ready, sh ou l d th e mark et start to k ick back u p?

A : I thi nk so. C omp ani es hav e tak en a l ot of step s to tak e things back to where they should have been in the first place. The one thi ng I thi nk w i l l b e i nteresti ng to w atch i s how much of our sustai nab l e cap i tal i s real sav i ng s as op p osed to d ef erral . O ne of the anal y sts that I tal k ed to sug g ested that comp ani es w ho hav e cut thei r sustai ni ng cap i tal may hav e j ust d ef erred the costs unti l the sector turns around . I thi nk there’ v e b een el ements of b oth sav i ng s and d ef erral .

Q : A t th e operations l ev el , h ow do you mak e su re cu ts are ef f ectiv e?

A : W hen y ou tal k ab out cost cutti ng , i t sound s p retty mi serab l e. B ut w hat w e f ound i n our comp any i s that i t actual l y g ot p eop l e ex ci ted b ecause they ’ re j ust l ook i ng f or ways to do things better. I think people are finding ways to do things more creatively, and we’re mining more efficiently and that mak es f or a heal thi er i nd ustry .

Q : D o you th ink w e’ re at th e bottom of th e cycl e? W h at are th e l essons w e’ v e l earned and h ow sh ou l d companies be positioning th emsel v es f or a potential u psw ing?

A : I thi nk w e are at the b ottom of the cy cl e, b ecause at these p ri ces y ou can’ t j usti f y b ui l d i ng any thi ng . A t some p oi nt d emand w i l l ex ceed sup p l y . A nd w e g o throug h thi s ov er and ov er ag ai n. P art of thi s i s that w e b ui l d thi ng s w hen p ri ces are hi g h and they tend to come onl i ne w hen p ri ces are l ow . W hen p ri ces are hi g h, that’ s w hen money i s av ai l ab l e. A nd w hen p ri ces are l ow , no money i s av ai l ab l e. W e tend to ex acerb ate the cy cl es. W e al w ay s hop e w e’ v e l earned the l essons f rom the p rev i ous one, and then d o i t ov er ag ai n. B ut, as I sai d b ef ore, I am starti ng to see a sense of op ti mi sm i n the sector and w e’ re hop i ng the i nd ustry i s starti ng to reb ound .

Q & A w i th R and al l O l i p hant, Ex ecuti v e C hai rman of N ew G ol d and C hai rman of the W orl d G ol d C ounci l

Canadian Mining Eye Q 1 2 0 1 6 | 5

F u ndraising in Q 1 201 6Total p roceed s of C DN $ 2 . 8 b rai sed b y TSX - and TSX V - l i sted mi ni ng comp ani es w ere rep orted i n Q 1 2 0 1 6 , w hi ch i s 4 1 2 % hi g her than Q4 2015 and represents a decline of 7% as compared to the same period a year ago. A few of the significant financings are:

Company Total proceeds (CD N $ ) Type Primary u se of proceeds

Franco-Nevada Corporation $ 1 ,2 6 9 . 7 mi l l i on1

Second ary of f eri ng The p roceed s w i l l b e used to f und the acq ui si ti on of a p reci ous metal stream w i th ref erence to p rod ucti on f rom G l encore p l c’ s A ntap accay mi ne l ocated i n P eru.

K i nross G ol d C orp orati on $ 3 8 2 . 1 mi l l i on2

Second ary of f eri ng The p roceed s w i l l b e used to p ay the d eb ts rel ated to acq ui si ti on of B arri ck ’ s assets, rep ay other d eb ts maturi ng i n 2 0 1 6 and other g eneral corp orate p urp oses.

P reti um R esources I nc. $ 1 7 3 . 0 mi l l i on3

Second ary of f eri ng The p roceed s w i l l b e used f or d ev el op ment of the B rucej ack P roj ect, to meet w ork i ng cap i tal req ui rements d uri ng start- up and f or g eneral corp orate p urp ose.

O si sk o G ol d R oy al ti es L td . $ 1 7 2 . 6 mi l l i on

Second ary of f eri ng The p roceed s w i l l b e used f or f und i ng resource roy al ty and stream acq ui si ti ons and f or w ork i ng cap i tal and other corp orate p urp oses.

M A G Si l v er C orp . $ 1 0 0 . 2 mi l l i on4

Second ary of f eri ng The p roceed s w i l l b e used to f und d ev el op ment and ex p l orati on ex p end i tures at the J uani ci p i o P roj ect and f or w ork i ng cap i tal and other corp orate p urp oses.

Fission Uranium Corp. $ 8 2 . 2 mi l l i on

P ri v ate p l acement The p roceed s w i l l b e used to d ev el op the P L S P rop erty , p ay ad v i sor f ees and costs i n rel ati on to certai n ap p rov ed transacti ons and f or g eneral ad mi ni strati v e ex p enses.

Selected financings announced, proposed or closed in Q1 2016

1 K i nross G ol d d eal of U S$ 2 5 0 mi l l i on i s conv erted to C DN at 1 . 3 3 3 7 rate, as of transacti on comp l eti on d ate of 4 M arch 2 0 1 6 . The ov er- al l otment op ti on of U S$ 3 7 . 5 mi l l i on i s conv erted to C DN at 1 . 2 9 8 2 , as of transacti on comp l eti on d ate of 1 8 M arch 2 0 1 6 . The currency conv ersi on rate i s sourced f rom the B ank of C anad a W eb si te.

2 K i nross G ol d d eal of U S$ 2 5 0 mi l l i on i s conv erted to C DN at 1 . 3 3 3 7 rate, as of transacti on comp l eti on d ate of 4 M arch 2 0 1 6 . The currency conv ersi on rate i s sourced f rom the B ank of C anad a w eb si te.

3 P reti um R esources d eal of U S$ 1 2 9 mi l l i on i s conv erted to C DN at 1 . 3 4 0 7 rate, as of transacti on announcement d ate of 1 M arch 2 0 1 6 . The currency conv ersi on rate i s sourced f rom B ank of C anad a w eb si te.

4 M A G Si l v er d eal of U S$ 6 5 mi l l i on i s conv erted to C DN at 1 . 3 4 0 7 rate, as of transacti on cl osi ng d ate of 1 M arch 2 0 1 6 . The ov er- al l otment op ti on of U S$ 9 . 8 mi l l i on i s conv erted to C DN at 1 . 3 3 3 7 , as of transacti on comp l eti on d ate of 4 M arch 2 0 1 6 . The currency conv ersi on rate i s sourced f rom the B ank of C anad a W eb si te.

6 | Canadian Mining Eye Q 1 2 0 1 6

F u ndraising on th e TSX and TSXV , 201 0– 1 6

1 Initial public offering (IPO) — TSX and TSXV as primary exchanges of listing.2 Funds raised from follow-on issue of shares and private placements.

Mining Al l TSX and TSXVMining as % of al l TSX and TSXV

N ew issu es F u rth er issu es2 Total issu es N ew issu es F u rth er issu es

Total issu es Total proceeds

N umb er of I P O s1

P roceed s i n C DN $ m

N umb er of money -

rai si ng i ssues

P roceed s i n C DN $ m

P roceed s i n C DN $ m

P roceed s i n C DN $ m

P roceed s i n C DN $ m

P roceed s i n C DN $ m

%

Q 1 2 0 1 6 0 0 2 6 5 2 ,7 8 4 2 ,7 8 4 2 4 1 1 2 ,7 2 6 1 2 ,9 6 7 2 1 %

Q 4 2 0 1 5 0 0 3 1 6 5 4 3 5 4 3 2 ,2 7 1 7 ,3 4 6 9 ,6 1 7 6 %

Q 3 2 0 1 5 1 1 3 5 2 5 3 7 2 4 8 5 9 1 ,6 3 4 7 ,9 4 4 9 ,5 7 7 9 %

Q 2 2 0 1 5 0 0 2 6 7 2 ,1 6 4 2 ,1 6 4 1 ,6 7 7 1 9 ,5 4 2 2 1 ,2 1 9 1 0 %

Q 1 2 0 1 5 0 0 3 5 8 2 ,9 8 6 2 ,9 8 6 1 ,1 9 0 1 6 ,1 2 2 1 7 ,3 1 2 1 7 %

Q 4 2 0 1 4 1 1 3 3 5 2 ,0 9 6 2 ,0 9 6 1 ,4 0 7 9 ,4 4 9 1 0 ,8 5 5 1 9 %

Q 3 2 0 1 4 1 1 3 3 1 1 ,3 8 6 1 ,3 8 6 7 7 1 1 4 ,3 0 3 1 5 ,0 7 4 9 %

Q 2 2 0 1 4 0 0 3 4 7 1 ,3 3 4 1 ,3 3 4 2 ,4 8 0 1 4 ,4 9 5 1 6 ,9 7 5 8 %

Q 1 2 0 1 4 0 0 4 0 3 4 ,0 4 2 4 ,0 4 2 8 8 8 1 3 ,9 8 8 1 4 ,8 7 6 2 7 %

Q 4 2 0 1 3 2 1 3 8 6 4 ,0 1 7 4 ,0 1 9 1 ,4 5 2 1 2 ,6 8 3 1 4 ,1 3 5 2 8 %

Q 3 2 0 1 3 0 0 3 2 0 6 6 7 6 6 7 1 ,6 4 5 7 ,1 7 9 8 ,8 2 4 8 %

Q 2 2 0 1 3 5 5 2 8 4 1 ,0 6 5 1 ,0 7 0 1 ,5 3 7 9 ,2 9 1 1 0 ,8 2 8 1 0 %

Q 1 2 0 1 3 0 0 4 1 5 1 ,1 5 7 1 ,1 5 7 9 3 8 8 ,8 9 8 9 ,8 3 6 1 2 %

Q 4 2 0 1 2 1 9 3 4 7 4 9 2 2 ,6 5 8 3 ,0 0 5 2 ,5 0 8 1 2 ,3 2 6 1 4 ,8 3 4 2 0 %

Q 3 2 0 1 2 6 9 3 5 7 2 ,9 8 4 2 ,9 9 3 3 4 4 1 3 ,4 3 0 1 3 ,7 7 4 2 2 %

Q 2 2 0 1 2 1 0 1 1 3 3 1 1 ,1 2 5 1 ,1 3 6 1 ,0 5 0 9 ,7 7 8 1 0 ,8 2 8 1 0 %

Q 1 2 0 1 2 1 4 2 3 4 7 5 3 ,1 3 2 3 ,1 5 5 5 0 6 1 6 ,5 8 1 1 7 ,0 8 7 1 8 %

Q 4 2 0 1 1 1 1 3 0 4 1 0 1 ,9 3 4 1 ,9 6 4 1 ,0 4 1 1 0 ,2 3 6 1 1 ,2 7 6 1 7 %

Q 3 2 0 1 1 2 3 1 0 7 3 6 6 2 ,1 6 0 2 ,2 6 8 1 ,3 1 5 9 ,0 2 7 1 0 ,3 4 2 2 2 %

Q 2 2 0 1 1 2 0 1 0 7 4 6 7 2 ,6 9 6 2 ,8 0 3 2 ,8 8 7 1 2 ,2 2 1 1 5 ,1 0 7 1 9 %

Q 1 2 0 1 1 1 6 1 1 9 6 7 8 5 ,3 2 2 5 ,4 4 0 1 ,6 5 6 1 2 ,7 0 2 1 4 ,3 5 8 3 8 %

Q 4 2 0 1 0 3 5 6 6 1 8 6 0 7 ,2 4 9 7 ,9 1 0 4 ,6 1 6 1 5 ,7 1 4 2 0 ,3 3 0 3 9 %

Q 3 2 0 1 0 1 8 6 7 4 2 0 1 ,9 8 5 2 ,0 5 2 1 ,6 1 5 6 ,4 8 8 8 ,1 0 3 2 5 %

Q 2 2 0 1 0 1 7 4 9 1 4 9 9 4 ,0 5 9 4 ,5 5 0 2 ,9 7 7 1 1 ,5 6 7 1 4 ,5 4 5 3 1 %

Q 1 2 0 1 0 2 3 9 3 5 3 6 3 ,1 4 4 3 ,2 3 7 1 ,8 2 6 9 ,1 7 8 1 1 ,0 0 3 2 9 %

2 0 1 5 1 1 3 5 1 ,1 9 4 6 ,4 1 7 6 ,5 5 2 6 ,7 7 1 5 0 ,9 5 4 5 7 ,7 2 5 1 1 %

2 0 1 4 2 1 1 ,4 1 6 8 ,8 5 8 8 ,8 5 9 5 ,5 4 5 5 2 ,2 3 4 5 7 ,7 8 0 1 5 %

2 0 1 3 7 7 1 ,4 0 5 6 ,9 0 7 6 ,9 1 3 5 ,5 7 2 3 8 ,0 5 0 4 3 ,6 2 3 1 6 %

2 0 1 2 4 9 3 9 1 1 ,6 5 5 9 ,8 9 9 1 0 ,2 9 0 4 ,4 0 8 5 2 ,1 1 5 5 6 ,5 2 3 1 8 %

2 0 1 1 7 0 3 6 2 1 ,9 2 1 1 2 ,1 1 2 1 2 ,4 7 4 6 ,8 9 9 4 4 ,1 8 5 5 1 ,0 8 4 2 4 %

2 0 1 0 9 3 1 ,3 1 2 2 ,3 1 5 1 6 ,4 3 7 1 7 ,7 4 9 1 1 ,0 3 4 4 2 ,9 4 7 5 3 ,9 8 1 3 3 %

Source: EY anal y si s of TSX and TSX V mark et stati sti cs, as rep orted

Canadian Mining Eye Q 1 2 0 1 6 | 7

J oiners and l eav ers

I ncl ud i ng the ab ov e, there w ere a total of 2 new entrants i nto the TSX and TSX V i nd i ces i n Q 1 2 0 1 6 .

Company I ndex A ctiv ity or f ocu s

N i ck el O ne R esources I nc. TSX V N i ck el O ne R esources I nc. acq ui res, ex p l ores and ev al uates mi neral resource p rop erti es i n C anad a. I t i s head q uartered i n V ancouv er, C anad a.

C and el ari a M i ni ng C orp . TSX V C and el ari a M i ni ng C orp . i s a d ev el op ment and ex p l orati on comp any w i th a p ortf ol i o of p roj ects i n M ex i co. I t i s head q uartered i n V ancouv er, C anad a.

Companies j oining th e TSX and TSXV indices (Q 1 201 6 )

Company R eason f or del isting

St Andrew Goldfields Ltd. Del i sted af ter i ts acq ui si ti on b y K i rk l and L ak e G ol d I nc. ( TSX :K G I )

A v eni ra L i mi ted Delisted at the request of the company/Exchange Traded Fund.

P hosC an C hemi cal C orp . Del i sted af ter i ts acq ui si ti on b y P etrus R esources L td . ( TSX :P R Q )

Companies l eav ing th e TSX and TSXV indices (Q 1 201 6 )

I ncl ud i ng the ab ov e, there w ere a total of 3 0 comp ani es l eav i ng the TSX and TSX V i nd i ces i n Q 1 2 0 1 6 .

0%

5%

10%

15%

20%

25%

30%

-

100,000

200,000

300,000

400,000

500,000

600,000

Q 2 2015

Q 3 2015

Q 4 2015

Q 2 2009

Q 1 2009

Q 3 2009

Q 4 2009

Q 1 2010

Q 2 2010

Q 3 2010

Q 4 2010

Q 1 2011

Q 2 2011

Q 3 2011

Q 4 2011

Q 1 2012

Q 2 2012

Q 3 2012

Q 4 2012

Q 1 2013

Q 2 2013

Q 3 2013

Q 4 2013

Q 1 2014

Q 2 2014

Q 3 2014

Q 4 2014

Q 1 2015

Min

ing

as %

of a

ll TS

X &

TSX

V

Min

ing

mar

ket

valu

e C

DN

$m

V al u e of TSX and TSXV mining u niv erse and as % of al l TSX and TSXV , 2009 – 1 6

Source: EY anal y si s of d ata f rom TSX and TSX V M ark et I ntel l i g ence G roup , as rep orted ; mark et v al ues as at q uarter end

Mining mark et cap Mining as a % of al l TSX and TSXV (R H scal e)

Q 1 20160

10

20

30

40

50

60

7 0

Q 1 2008

Q 2 2008

Q 3 2008

Q 4 2008

Q 1 2009

Q 2 2009

Q 3 2009

Q 4 2009

Q 1 2010

Q 2 2010

Q 3 2010

Q 4 2010

Q 1 2011

Q 2 2011

Q 3 2011

Q 4 2011

Q 1 2012

Q 2 2012

Q 3 2012

Q 4 2012

Q 1 2013

Q 2 2013

Q 3 2013

Q 4 2013

Q 1 2014

Q 2 2014

Q 3 2014

Q 4 2014

Q 1 2015

Q 2 2015

Q 3 2015

Q 4 2015

Num

ber

of c

ompa

nies

TSX and TSXV mining admissions and del istings since 2008

Source: EY anal y si s of d ata f rom TSX and TSX V M ark et I ntel l i g ence G roup , as rep orted ; i ncl ud es p l acements, i ntrod ucti ons and read mi ssi ons; ex cl ud es transf ers b etw een TSX and TSX V

A dmissions D el istings Q 1 2016

8 | Canadian Mining Eye Q 1 2 0 1 6

I ndex constitu ents sel ected at q u arter endSource: EY, TSX and TSX V M ark et I ntel l i g ence G roup

Q 1 2 0 1 6 M V ( C DN $ m)

Q 1 2 0 1 6 M V ( C DN $ m)

Q 1 2 0 1 6 M V ( C DN $ m)

O ceanaG ol d 2 ,1 5 8 K l ond ex M i nes 4 9 0 Dal rad i an R esources 1 9 6 P an A meri can Si l v er 2 ,1 4 6 L und i n G ol d 4 6 6 True G ol d M i ni ng 1 9 1 B 2 G ol d 2 ,0 0 3 A l ti us M i neral s 4 6 1 Sab i na G ol d & Si l v er 1 8 4 C entami n 1 ,9 0 3 G ol d R eserv e 4 5 7 G reat P anther Si l v er 1 7 6 A l amos G ol d 1 ,8 4 5 R i chmont M i nes 4 2 8 G oG ol d R esources 1 7 2 O si sk o G ol d R oy al ti es 1 ,4 7 2 P al ad i n Energ y 4 1 1 N emask a L i thi um 1 6 7 C enterra G ol d 1 ,4 5 9 P ri mero M i ni ng 3 8 9 Tasek o M i nes 1 6 0 Torex G ol d R esources 1 ,4 3 2 P l ati num G roup M etal s 3 8 2 K ennad y Di amond s 1 5 9 SEMAFO 1 ,3 6 3 Deni son M i nes 3 7 8 N i oC orp Dev el op ments 1 5 8 First Majestic Silver 1 ,3 1 1 M and al ay R esources 3 6 5 Energy Fuels 1 4 9 Domi ni on Di amond 1 ,2 2 8 I mp eri al M etal s 3 4 1 N G Ex R esources 1 4 4 P reti um R esources 1 ,2 0 9 End eav our Si l v er 3 3 9 L i thi um A meri cas 1 4 3 I A M G O L D 1 ,1 9 5 R eserv oi r M i neral s 3 3 5 Trev al i M i ni ng 1 4 0 H ud B ay M i neral s 1 ,1 2 0 N ew mark et G ol d 3 2 4 P ol ari s M ateri al s 1 3 7 L ucara Di amond 1 ,0 4 9 Fission Uranium 3 1 9 First Mining Finance 1 2 5 M A G Si l v er 9 7 8 N orth A meri can P al l ad i um 3 1 1 B acanora M i neral s 1 1 8 K i rk l and L ak e G ol d 9 5 9 Si l v ercorp M etal s 3 0 9 A scot R esources 1 1 6 L ak e Shore G ol d 8 8 2 R ox g ol d 3 0 7 Noranda Income Fund 1 0 9 C hi na G ol d I nternati onal R esources 8 6 0 K atang a M i ni ng 3 0 5 A rchon M i neral s 1 0 8 N ev sun R esources 8 3 9 A rg onaut G ol d 2 9 5 C hesap eak e G ol d 9 9 M ountai n P rov i nce Di amond s 7 7 6 Dund ee P reci ous M etal s 2 9 5 A uR i co M etal s 9 8 Stornow ay Di amond 7 6 9 P ol y met M i ni ng 2 9 4 U R - Energ y 9 5 Seab ri d g e G ol d 7 4 1 Terang a G ol d 2 8 6 W estern P otash 8 8 TM A C R esources 7 0 6 G ol d Stand ard V entures 2 8 0 N oront R esources 8 4 Guyana Goldfields 6 9 2 C l aud e R esources 2 5 7 A ri anne P hosp hate 8 2 A l acer G ol d 6 8 6 Anglo Pacific Group 2 5 4 SouthG ob i R esources 7 2 M cEw en M i ni ng 6 7 4 Sherri tt I nternati onal 2 3 8 Eastern P l ati num 7 1 I v anhoe M i nes 6 5 4 K ami nak G ol d 2 3 8 N auti l us M i neral s 6 7 Fortuna Silver Mines 6 5 4 A tal ay a M i ni ng 2 3 3 End eav our M i ni ng 6 5 1 Si erra M etal s 2 2 7 O rocob re 6 0 6 B el o Sun M i ni ng 2 2 6 Total uni v erse M V C DN $ m 2 2 5 ,1 8 4 Sand storm G ol d 5 8 6 C onti nental G ol d 2 2 3 Top 2 0 M V C DN $ m 1 5 9 ,5 6 5 Si l v er Stand ard R esources 5 8 4 P erseus M i ni ng 2 1 2 Total uni v erse ex cl ud i ng Top 2 0 M V

C DN $ m 6 5 ,6 1 9

P remi er G ol d M i nes 5 4 4 I nteg ra G ol d 2 0 4 M V of M i ni ng Ey e consti tuents 5 2 ,6 8 9

A sank o G ol d 5 4 4 C ap stone M i ni ng 2 0 1 M V of M i ni ng Ey e consti tuents as a % of M V of Total uni v erse ex cl ud i ng Top 2 0

8 0 %

N ex G en Energ y 5 2 0 W esd ome G ol d M i nes 2 0 0

MV — Market value

Shad i ng rep resents i nd ex entrants

C h ang es t o t h e M i ni ng E y e i ndexThere w ere ni ne chang es i n i nd ex consti tuents i n Q 1 2 0 1 6 . N ew G ol d mov ed to the Top 2 0 i nd ex . R ub i con M i neral s, Thomp son C reek M etal s C omp any , A ureus M i ni ng , G ol d en Q ueen M i ni ng , Ti mmi ns G ol d , G ab ri el R esources, L arg o R esources and St. A nd rew Goldfields exited the index and were replaced by index entrants highlighted in the table above.

Canadian Mining Eye Q 1 2 0 1 6 | 9

I ndex data

300

350

400

450

500

Inde

x va

lue

Mining Eye index and S&P/TSX Composite index perf ormance, l ast 1 2 month s

Source: EY, Thomson Datastream

Mining Eye S&P/TSX Composite (rebased)

M ar 16

J an 16

F eb 16

A p r 15

S ep 15

M ay 15

J un 1

5

J ul 15

A ug 15

D ec 15

O c t 15

N o v 15

0

200

400

600

800

1,000

1,200

1,400

1,600

2008 2009 2010 2011 2012 2013 2014 2015 2016

Inde

x va

lue

Mining Eye index and S&P/TSX Composite index since 2008

Source: EY, Thomson Datastream

Mining Eye S&P/TSX Composite (rebased) Top 20 — TSX Mining

I f y ou w oul d l i k e to v i ew the raw i nd ex d ata, p l ease contact:

J ay P at el EY’ s C anad i an M i ni ng & M etal s Transacti ons L ead er + 1 4 1 6 9 4 3 3 8 6 1

1 0 | Canadian Mining Eye Q 1 2 0 1 6

J ay P at elC anad i an M i ni ng & M etal s Transacti ons L ead er+ 1 4 1 6 9 4 3 3 8 6 1j ay . p atel @ ca. ey . com

C anadi an c o nt ac t sB r uc e S p r ag ueC anad i an M i ni ng & M etal s L ead er+ 1 6 0 4 8 9 1 8 4 1 5b ruce. f . sp rag ue@ ca. ey . com

B lak e L ang i llO ntari o M i ni ng & M etal s L ead er+ 1 4 1 6 9 4 3 3 5 5 6 b l ak e. w . l ang i l l @ ca. ey . com

Z ah i d F az alQ ueb ec M i ni ng & M etal s L ead er+ 1 5 1 4 8 7 9 3 5 1 9z ahi d . f az al @ ca. ey . com

The Canadian Mining Eye track s C anad i an mi ni ng sector p erf ormance of 1 0 0 TSX and TSX V mi d - ti er and j uni or comp ani es w i th mark et cap i tal i z ati ons b road l y f al l i ng b etw een C DN $ 2 . 2 b i l l i on and C DN $ 6 7 mi l l i on. These comp ani es trad e on the TSX and TSX V , thoug h some of them are head q uartered outsi d e C anad a. M ov ements and anal y si s of the index are reported quarterly. From Q1 2014, we hav e retroacti v el y reset the i nd ex to Top 2 0 and N ex t 1 0 0 ( f rom Top 2 5 and N ex t 1 0 0 ) , on the b asi s of the mark et cap i tal i z ati ons at the end of 2 0 1 3 . The hi stori cal d ata has al so b een reset f or comp arati v es p urp ose.

A l l comp any i nf ormati on i s sourced f rom p ub l i cl y av ai l ab l e sources, i ncl ud i ng comp any w eb si tes and reg ul atory announcements.

M i c h elle G r antB C M i ni ng & M etal s Transacti ons L ead er+ 1 6 0 4 8 9 9 3 5 4 1mi chel l e. g rant@ ca. ey . com

G l obal Mining & Metal s L eader M i g uel Z w ei g + 5 5 1 1 2 5 7 3 3 3 6 3 mi g uel . z w ei g @ b r. ey . com

O ceania Scott G ri ml ey + 6 1 3 9 6 5 5 2 5 0 9 scott. g ri ml ey @ au. ey . com

Ch ina and Mongol ia P eter M ark ey + 8 6 2 1 2 2 2 8 2 6 1 6 p eter. mark ey @ cn. ey . com

J apan A nd rew C ow el l + 8 1 3 3 5 0 3 3 4 3 5 cow el l - nd rw @ shi nni hon. or. j p

Af rica W i ck us B otha + 2 7 1 1 7 7 2 3 3 8 6 w i ck us. b otha@ z a. ey . com

Commonw eal th of I ndependent States Ev g eni K hrustal ev + 7 4 9 5 6 4 8 9 6 2 4 ev g eni . k hrustal ev @ ru. ey . com

F rance, L u xembu rg, Magh reb, MEN A C hri sti an M i on + 3 3 1 4 6 9 3 6 5 4 7 chri sti an. mi on@ f r. ey . com

I ndia A nj ani A g raw al + 9 1 2 2 6 1 9 2 0 1 5 0 anj ani . ag raw al @ i n. ey . com

U nited K ingdom and I rel and L ee Dow nham + 4 4 2 0 7 9 5 1 2 1 7 8 l d ow nham@ uk . ey . com

U nited States A nd y M i l l er + 1 3 1 4 2 9 0 1 2 0 5 and y . mi l l er@ ey . com

Canada B ruce Sp rag ue + 1 6 0 4 8 9 1 8 4 1 5 b ruce. f . sp rag ue@ ca. ey . com

B raz il C arl os A ssi s + 5 5 2 1 3 2 6 3 7 2 1 2 carl os. assi s@ b r. ey . com

Ch il e M arí a J av i era C ontreras + 5 6 2 2 6 7 6 1 4 9 2 mari a. j av i era. contreras@ cl . ey . com

S er vi c e li ne c o nt ac t sG l obal Ad v isory L eader P aul M i tchel l + 6 1 2 9 2 4 8 5 1 1 0 p aul . mi tchel l @ au. ey . com

G l obal As su rance L eader A l ex ei I v anov + 4 9 5 2 2 8 3 6 6 1 al ex ei . i v anov @ ru. ey . com

G l obal I FR S L eader Tracey W ari ng + 6 1 3 9 2 8 8 8 6 3 8 tracey . w ari ng @ au. ey . com

G l obal Tax L eader A nd y M i l l er + 1 3 1 4 2 9 0 1 2 0 5 and y . mi l l er@ ey . com

G l obal Transactions L eader L ee Dow nham + 4 4 2 0 7 9 5 1 2 1 7 8 l d ow nham@ uk . ey . com

A r ea c o nt ac t s

E Y | A ssurance | Tax | Transacti ons | A d v i sory

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© 2 0 1 6 EYG M L i mi ted . A l l R i g hts R eserv ed .

EYG no. X X X X X X C SG 1 9 3 0 6 9 2

ED none

Thi s materi al has b een p rep ared f or g eneral i nf ormati onal p urp oses onl y and i s not i ntend ed to b e rel i ed up on as accounti ng , tax or other p rof essi onal ad v i ce. P l ease ref er to y our ad v i sors f or sp eci f i c ad v i ce.

ey . c o m / m i ni ng m et als

H o w E Y ’ s G lo b al M i ni ng & M et als N et w o r k c an h elp y o ur b us i nes sW i th a v ol ati l e outl ook f or mi ni ng and metal s, the g l ob al mi ni ng and metal s sector i s f ocused on marg i n and p rod ucti v i ty i mp rov ements, w hi l e p oi sed f or v al ue- b ased g row th op p ortuni ti es as they ari se. The sector al so f aces the i ncreased chal l eng es of mai ntai ni ng i ts soci al l i cense to op erate, b al anci ng i ts tal ent req ui rements, ef f ecti v el y manag i ng i ts cap i tal p roj ects and eng ag i ng w i th g ov ernment around rev enue ex p ectati ons.

EY’ s G l ob al M i ni ng & M etal s N etw ork i s w here p eop l e and i d eas come tog ether to hel p mi ni ng and metal s comp ani es meet the i ssues of tod ay and anti ci p ate those of tomorrow b y d ev el op i ng sol uti ons to meet these chal l eng es. I t b ri ng s together a worldwide team of professionals to help you succeed — a team w i th d eep techni cal ex p eri ence i n p rov i d i ng assurance, tax , transacti ons and ad v i sory serv i ces to the mi ni ng and metal s sector. U l ti matel y i t enab l es us to hel p y ou meet y our g oal s and comp ete more ef f ecti v el y .