Dpm investorppt july2013

JULY 2013

DUNDEE PRECIOUS METALS

BUILDING A PREMIER,

INTERMEDIATE, LOW-COST

GOLD PRODUCER

Proudly celebrating 30 years as a

Toronto Stock Exchange

listed company

2

FORWARD-LOOKING

STATEMENTS

This presentation contains “forward-looking information” or "forward-looking statements" that involve a number of risks and

uncertainties. Forward-looking information and forward-looking statements include, but are not limited to, statements with respect to

the future prices of gold and other metals, the estimation of mineral reserves and resources, the realization of mineral estimates, the

timing and amount of estimated future production and output, costs of production, capital expenditures, 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.

Dundee Precious Metals

Strong

Financial Position

Commodity and

Geographic

Diversification

High Quality Assets

with Proven Operating

Performance and Further

Potential

Experienced Management

Team and Board with

Strong Track Record

Pipeline of Value Adding

Organic Growth

INVESTMENT SUMMARY

3

MAINTAINING A SOLID FINANCIAL

POSITION

4 Dundee Precious Metals

Share Price C$4.31

Shares Outstanding 139M

Market Capitalization $600M

Fully diluted shares

Additional cash on dilution

146M

C$25M

52 week low - high $3.69 - $9.93

Gross Revenue by Metals Sold

2011A 2012A 2016E Gold

Copper

Silver

Zinc

Dundee Corporation 25%

Equinox Partners <10%

$285M Cash and Credit

including: $36M from early warrant exercise

$150M undrawn revolving credit

facility

~$100M in Cash

@ Mar. 31, 2013

$121M Significant 2012 Operating

Cash Flow

$80.5M Debt

@ Mar. 31, 2013

Total Debt : Total Capital

= 10%

48%

41%

6% 5%

Capital Structure @ July 2, 2013

Top Shareholders

DPM’S ASSETS LOCATED IN

POLITICALLY STABLE REGIONS


Head office

Operating assets

Developing asset

GOLD COMPOUND ANNUAL GROWTH

RATE OF 14%


Consolidated Gold Production (oz 000’s) Consolidated Copper Production (lbs 000,000)

Copper production has increased 105% over four years Gold production has increased 70% over four years

DECREASING CASH COSTS AND

INCREASING EBITDA


Reduced cash cost per ounce of gold produced

78% over four years1

Consolidated Adjusted EBITDA increased

412% over four years2

($40)

$32 $45

$118 $125

2008 2009 2010 2011 2012

(1) Net of by-product credits

(2) Cdn $

8

Source: Scotia Capital (April 2, 2013), DPM 2013 Guidance

Note: All-in Sustaining Cash Cost = Total cash costs (net of by-products) + sustaining capital + corporate G&A

DPM: A LOW COST PRODUCER

Cash Cost/Tonne of Ore Processed (1) ($/T)

(1) This is a non-GAAP measure. See 2012 Annual Report for further details.

(2) All-in cost is comprised of cash delivered cost which includes mine cash costs, TC’s, RC’s and freight; net of by product credits, sustaining capital; and G&A costs

(allocated based on revenue of operation). All-in costs exclude Avala and Dunav and growth capital expenditures. See Appendix for reconciliation to cost of sales.


$665 $714 $782

$838 $842 $875 $884

$1,005

$1,155 $1,178 $1,212

$1,325 $1,362

DPM Argonaut Alamos AlliedNevada

Primero Timmins Teranga Centerra Alacer AuRico AfricanBarrick

GoldenStar

Semafo

2013E All-In Sustaining Cash Cost (US$/oz)

Average: $987

CORPORATE VISION AND STRATEGY


Building DPM into a premier, intermediate, low-cost gold producer

Optimize value of existing operating assets

Grow the business beyond existing operating assets

Sustain low quartile operating costs Conceptual

Illustration of

Krumovgrad

Gold Project

3 blocks of

dust-

capturing

chambers

installed in

the new

baghouse at

Tsumeb

Exploration

at Kapan

Mine

Autoclave

fabricated for

the MPF to

be used for

Stage 2

Pyrite

Project at

Chelopech

• Increase mine production and extend LOMs

• Upgrade/expand smelter and establish long-term contracts

that provide a stable return

• Develop Krumovgrad gold project

• Establish deep pipeline of greenfield exploration

opportunities

• Complete acquisitions that offer accretive growth, diversity

and gold exposure, while maintaining a conservative

capital structure

Maintain a strong balance sheet with ample liquidity

Strategy

Vision

CHELOPECH MINE:

LOW COST, LONG LIFE PRODUCER


Chelopech Optimization

Grade Ounces

Resources M&I

(at Dec.31, 2012)

Au (oz) 4.0 g/t 3.8M

Cu (lbs) 1.3% 825M

Reserves

(at Dec 31, 2012)

Au (oz) 3.6 g/t 2.5M

Cu (lbs) 1.1% Cu 519M

Estimated Mine Life @ expanded rate 10+ years

Continue to implement

cost/margin improvements

Operating at full capacity of two

million tonnes of ore per annum

Capitalize on lower cost / higher

recovery staged flotation reactor

technology

Perform targeted exploration to

replace depletion and increase

mineral resources / reserves

Install new pyrite concentrate

flotation circuit

Complete feasibility study on the

pyrite gold treatment project

Staged Flotation

Reactor at

Chelopech

Operations


400,000 T pyrite concentrate produced (E)

Metals Potential Grades Est. Incremental Production Result

Au 6-7 g/t 75,000 - 90,000 oz

Ag 10 - 15 g/t 130,000 - 190,000 oz

Cu 0.5% - 0.7% 4.5M - 6.0M lbs

Cash cost per oz of gold (net of by-product credits) $615

Estimated capital costs $202M

NPV (5% discount rate) after tax(1) $141M

IRR after tax(1) 24%

Item Capex

Stage 1: Concentrator upgrade $23M

Stage 2: POX Facility

Phase 1 - start production 2017 $93M

Phase 2 - start production 2019 $87M (1) Assumes the following commodity prices after 2016: $1,250/oz Au, $25/oz Ag,

and $2.75/lb Cu

Project Highlights Project Stages

CHELOPECH MINE:

PYRITE PROJECT TO INCREASE RECOVERIES TO 90%

2013 Catalysts

Complete Stage 1

Concentrator Upgrade Q4 2013

Stage 2 POX

Facility Feasibility Study Q3 2013

11

Dundee Precious Metals 12 Dundee Precious Metals

Kapan Optimization

Complete final portion of drilling of

Shahumyan deposit to support

resource and potential expanded

operation

Complete studies to confirm optimal

mine plan based on new resource

Explore regional license to define

additional Mineral Resources

Continue operational improvements

and cost reductions

Product Cu & Zn concentrates

containing Au & Ag

Deposit Type Polymetallic vein deposit

(swarms)

Open Pit Resource Underway

Underground Resource Underway

KAPAN MINE:

POTENTIAL TO INCREASE SIZE AND EXTEND LIFE OF MINE

2012 Metals Production Grades

22,000 oz Au 1.56 g/t

2.5M lbs Cu 0.25%

15.4M lbs Zn 1.67%

450,000 oz Ag 32.20 g/t

Kapan Mine office

2013 Catalysts

Updated NI 43-101

Resource Estimate

Q3

2013

* Kapan operations were on care and maintenance as of November 2008; operations restarted April 2009.


• One of the few smelters with

ability to process complex

concentrate

• Upgrades designed to meet

internationally accepted

environmental standards and

expand capacity to process

additional 3rd party

concentrate

• Lower per tonne operating

costs and more favourable

smelting terms are expected

to generate significantly higher

margins

Horne Smelter

Operated by Xstrata

Capacity: 825Kt of concentrate (total)

Note: Complex concentrate capacity limited

with little to no 3rd party capacity

Tsumeb Smelter

Operated by Dundee Precious Metals

Capacity: 240Kt-320Kt of complex concentrate

Operating Smelters

Closed Smelters

Other smelters that process various amounts of complex concentrates

La Oroya Smelter(1)

Operated by Doe Run

Kosaka Smelter

Shut down in Q1 2008San Luis de Potosi Smelter

Shut down in 2012

Note: Currently closed

Limited Global Smelting Capacity for Complex Concentrate

TSUMEB SMELTER:

A UNIQUE STRATEGIC ASSET

13


DPM Ownership 100%

Location Namibia

Technology Ausmelt

Product Copper blister

bars

2012 concentrate throughput 159,356 tonnes

Emissions & dust capture upgrades $99M

Sulphuric acid capture plant (Q3 2014) $204M

Electric holding furnace (Q1 2016) ~$70M+

Asset Overview

TSUMEB SMELTER HAS POTENTIAL

TO POSITIVELY IMPACT EARNINGS C

om

ple

x C

on

Sm

elte

r C

ap

acity (

00

0’s

)

14

KRUMOVGRAD GOLD PROJECT:

LOW CASH COST OPERATION


Proposed Mine Type Open Pit

Gold Recoveries 85%

Grade 3.4 g/t

Annual ore tonnage production 850,000 tpy

Annual Au production 74,000 ounces

Mine Life 9 years

Capital Costs to complete US$127M

Total cash cost per oz Au Eq $404

Conceptual

Illustration of

Krumovgrad

Gold Project

Secure final local approvals

required prior to proceeding with

ordering long lead items /

construction

Seek opportunities to increase

recoveries through use of SFR

technology

Update / finalize mine plan

Complete detailed engineering that

optimizes value of project

Evaluate other exploration

opportunities within existing

licenses and establish targeted drill

program

Based on Jan. 2012 DFS; Estimated recoveries, capital & operating costs in process of being updated.

Future Catalysts

Start Construction 2015

Start Production 2016


• NI-43-101 resources include:

Bigar Hill initial Inferred Resource of 26.4 MT @

1.6 g/t Au for 1.4Moz

Korkan initial Inferred Resource of 20.1 MT @

1.5 g/t Au for 1.0 Moz

Kraku Pester initial Indicated resource of 6.3 MT

@ 1.3 g/t Au for 0.27 Mozs and Inferred

Resource of 2.2 MT @ 1.0 g/t Au for 0.07 Moz

• Total Inferred Resource of 48.7 MT @ 1.5 g/t Au for

2.5 Moz

• NI-43-101 inferred resources include:

Kiseljak Mineral Resource initial estimate 300

MT grading 0.27% Cu & 0.26 g/t Au for 1.8 Blbs

Cu and 2.5 Moz Au

• Bakrenjaca Au-Ag base metal epithermal system,

drilling intersected 11m @ 5.13 g/t Au, 346 g/t Ag and

1.19% Cu

DPM EXPLORATION UPDATE:

PARTIALLY-OWNED ENTITIES

Securities Shares

(m) % Held

Value

(C$M)

Avala Resources

Special Warrants

Warrants (strike at C$0.30)

Total

135.0

50.0

25.0

53%

8.1

-

-

8.1

Dunav Resources

Warrants (strike at C$0.42)

Total

56.0

27.5

46%

6.2

-

6.2

Total shares & securities ~ 14.3

Avala Resources Ltd. (TSX-V: AVZ) Equity Portfolio Overview as at July 2, 2013

Dunav Resources Ltd. (TSX-V: DNZ)

16

DPM VALUE PROPOSITION:

TRADING AT A SIGNIFICANT DISCOUNT TO OUR PEERS


as at July 2, 2013

Market Capitalization (FD) $630M

Debt $80.5M

Corporate Cash (1) ($140M)

Strategic Investments ($31M)

Enterprise Value $540M

2017 @ $1,400 Au; $3.20 Cu

Chelopech $220M

Kapan (excluding open pit expansion) $23

Krumovgrad $42

Tsumeb Smelter $100

G & A ($35)

Average EBITDA $350(2)

EV/EBITDA 1.5x

Estimated Capital expenditure to 2017 $640 - $750M

Estimated Cash Flow to 2017(3) $1.0B

(1) At Mar. 31, 2013;

AVZ and DNV are

assumed at $0; Fully

Diluted; includes cash on

dilution

(2) Assumes avg LOM

EBITDA for Chelopech,

Kapan (assuming Kapan

can be extended &

operated at current rates),

Krumovgrad and estimate

for NCS at 310,000 tpa

(3) Based on $1,400 Au

and $3.20 Cu.


Strong

Financial Position

Commodity and

Geographic

Diversification

High Quality Assets

with Proven Operating

Performance and Further

Potential

Experienced Management

Team and Board with

Strong Track Record

Pipeline of Value Adding

Organic Growth

COMPELLING INVESTMENT

OPPORTUNITY

18

DUNDEE PRECIOUS METALS

MANAGEMENT TEAM


Rick Howes

President & Chief Executive Officer

David Rae Senior Vice President,

Operations

Adrian Goldstone Executive Vice President,

Sustainable

Business Development

Michael Dorfman Senior Vice President,

Corporate Development

Hume Kyle Executive Vice

President &

Chief Financial Officer

Lori Beak Senior Vice President,

Investor &

Regulatory Affairs &

Corporate Secretary

Hans Nolte Vice President & General

Manager, Namibia Custom

Smelters

Reuben Mills Vice President, Safety &

Asset Risk Management

Rob Taylor Vice President Projects

Jeremy Cooper Vice President,

Commercial Affairs

Simon Meik Vice President, Processing

Hratch Jabrayan Vice President & General

Manager,

Kapan Mine

Nikolay Hristov Vice President & General

Manager,

Chelopech Mine

Iliya Garkov Vice President & General

Manager, Krumovgrad

Gold Project

Richard Gosse Senior Vice

President,

Exploration

Jonathan Goodman

Executive Chairman

Paul Proulx Senior Vice President,

Corporate Services

dundeeprecious.com

One Adelaide Street East Suite 500

Toronto, Ontario M5C 2V9 T: 416 365-5191

Investor Relations T: 416 365-2851

[email protected]

TSX: DPM – Common Shares

DPM.WT.A – 2015 Warrants

Proudly celebrating 30 years as

a Toronto Stock Exchange listed

company

21

APPENDICIES

ANALYST COVERAGE


BMO John Hayes

CIBC World Markets Leon Esterhuizen

Cormark Securities Mike Kozak

Dundee Securities Josh Wolfson

GMP Securities Oliver Turner

Paradigm Capital Don MacLean

RBC Capital Markets Sam Crittenden

Scotia Capital Leily Omoumi

Stifel, Nicolaus & Co. Michael Scoon

2013 GUIDANCE


Metals Contained in Concentrate Produced Chelopech Kapan Total

Gold (ounces) 125,000 – 143,000 25,000 – 30,000 150,000 – 173,000

Copper (million pounds) 43.0 – 46.0 2.5 – 3.0 45.5 – 49.0

Zinc (million pounds) - 12.0 – 14.5 12.0 – 14.5

Silver (ounces) 182,000 – 195,000 438,000 – 528,000 620,000 – 723,000

Sustaining Capital expenditures $14 - $17 million $8 - $12 million $22 - $29 million

Total growth capital expenditures $210 - $240 million

Construction of acid plant at Tsumeb

Pyrite Project at Chelopech

Krumovgrad development and construction work

Kapan Gold exploration and/or development work

Mine output at Chelopech (tonnes of ore) 1.9 – 2.05 million

Mine out put at Kapan (tonnes of ore) 550,000 – 600,000

Concentrate smelted at Tsumeb (tonnes) 185,000 – 200,000

Sustaining capital expenditures at Tsumeb $13 - $16 million

Q1 2013 SUMMARY


Q1 2013 Q1 2012

Adjusted Net Earnings $6.6 million $31.3 million

Adjusted basic EPS $0.05 $0.25

Gross profit (loss)

Chelopech $36.4 million $52.4 million

Kapan ($1.4 million) $1.8 million

Tsumeb Smelter ($10.7 million) ($5.8 million)

Total Gross profit $24.3 million $48.4 million

Chelopech Production

Gold (ounces) 39,313 35,582

Copper (lbs) 12,048,521 11,620,465

Silver (ounces) 61,058 59,050

Cash cost/T ore processed (incl. royalties) $41.16 $46.80

Cash cost/T ore processed (excl. royalties) $36.55 $41.97

Kapan Production

Gold (ounces) 5,159 6,328

Copper (lbs) 553,731 613,397

Zinc (lbs) 3,358,133 4,443,184

Silver (ounces) 94,346 128,476

Cash cost/T ore processed (incl. royalties) $75.83 $75.18

Cash cost/T ore processed (excl. royalties) $72.36 $66.29

COPPER HEDGE POSITION


Year of projected payable copper

production Volume Hedged (lbs) * Average fixed price ($/lb)

2013 5,019,920 $3.94

2014 7,195,880 $3.73

Total 12,215,800 $3.81

• As at March 31, 2013, the Company had outstanding derivative contracts to mitigate a portion of its price exposure

related to its by-products. These are summarized below:

CHELOPECH MINE:

UPDATED MINERAL RESERVES AND RESOURCES


Chelopech Mineral Reserves – December 31, 2012

Category

Tonnes

(M)

Gold Copper Silver

Grade

(g/t)

Ounces

(M)

Grade

(%)

Pounds

(M)

Grade

(g/t) Ounces (M)

Proven 12.3 3.4 1.4 1.3 340 9.3 3.7

Probable 9.3 3.8 1.1 0.9 180 5.7 1.7

Total 21.6 3.6 2.5 1.1 519 7.7 5.4

Chelopech Mineral Resources – December 31, 2012

Category

Tonnes

(M)

Gold Copper Silver

Grade (g/t)

Ounces

(M)

Grade

(%)

Pounds

(M)

Grade

(g/t) Ounces (M)

Measured 15.1 4.0 2.0 1.5 490 10.3 5.0

Indicated 14.0 4.0 1.8 1.1 336 8.5 3.8

M&I 29.1 4.0 3.8 1.3 825 9.4 8.8

Inferred 9.3 2.9 0.9 0.9 182 10.6 3.2

1. The rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals.

2. All Mineral Resources and Mineral Reserves Estimates have been determined and reported in accordance with NI 43-101 and the classification adopted by the CIM.

3. Chelopech Mineral Reserves are based on a gold equivalent cut-off of 4 g/t (Au g/t + 2.06xCu%) and a cut-off of USD 10 profit/tonne using NSR analysis, as of December 31, 2012. This information has been

prepared by Gordon Fellows who is a QP as defined in NI 43-101 and not independent of the Company.

4. Chelopech Mineral Resources are based on a gold equivalent cut-off 3 g/t (Au g/t + 2.06xCu%) and a greater than USD 0 profit/tonne test using NSR analysis, as of December 31, 2012. This information has

been prepared by Petya Kuzmanova and reviewed and approved by Julian Barnes. Julian Barnes is a QP as defined in NI 43-101 and not independent of the Company.

5. Mineral Reserves and Mineral Resources for Chelopech are based on long term metals prices of USD 1,250/oz Au, USD 2.75/lb Cu, USD 25/oz Ag.

6. Measured and Indicated Mineral Resources are inclusive of Proven and Probable Mineral Reserves.

CHELOPECH MINE:

EXPLORATION RESULTS Q1 2013


Significant intercepts (cut-off grade 3g/tAuEq)

Hole ID

Northing

(mRL)

Easting

(mRL)

Dip

Az

From

(m)

To (m) Interval

(m)

Grades

Cu (%) Au (g/t)

EXT19_260_13 29786 6042 -28.1 018.7 121.5 148.5 27.0 0.68 3.60

EXT19_260_14 29785 6042 -42.1 019.1 145.5 162.0 16.5 1.42 3.47

EXT19W_320_23 29778 5846 -25.9 43.7 25.5 49.5 24.0 1.06 3.90

129.0 138.0 9.0 0.93 2.36

EXT19W_320_24 29778 5846 -43.8 42.6 28.5 64.5 36.0 1.21 3.65

EXT19W_320_25 29777 5843 -8.8 336.2 120.0 153.0 33.0 0.26 4.51

EXT151_165_04 29305 5463 -60.6 134.2 40.5 54.0 13.5 0.71 2.67

G103_225_03 29178 5706 -58.4 346.4 85.5 126.0 40.5 0.79 2.07

1) Significant intercepts are located within the Chelopech Mine Concession and proximal to the mine workings.

2) Gold Equivalent calculation is based on the following formula: (Au g/t + 2.05xCu%).

3) Minimum downhole width reported is 1.5 metres with a maximum internal dilution of 4.5 metres.

4) True widths are approximately 90% of the intersection width.

5) Drill holes with prefix G indicate grade control drilling which is performed using BQ diamond drill core. All other holes are drilled with NQ

diamond core.

6) Coordinates are in mine-grid.

7) No factors of material effect have hindered the accuracy and reliability of the data presented above.

8) No upper cuts applied.

9) For detailed information on drilling, sampling and analytical methodologies refer to the NI 43-101 “Preliminary Economic Assessment Report

for the Chelopech Pyrite Recovery Project” (the “PEA Technical Report”) filed on SEDAR at www.sedar.com on September 10, 2012.

CHELOPECH MINE:

CASH COST RECONCILIATION


US$ thousands, unless otherwise indicated

Q1 2013

Actual

Year 2012

Actual

Year 2011

Actual

Year 2010

Actual

Year 2009

Actual

Year 2008

Actual

Cost of Sales: 31,991 98,298 88,838 $72,707 74,499 67,245

Less amortization & other (7,948) (19,542) (15,499) (14,425) (14,242) (11,966)

Plus other charges, including freight 23,832 86,228 65,125 41,234 38,317 26,006

Less by-product credits (41,434) (163,940) (147,812) (87,320) (64,198) (59,376)

Cash cost of sales after by-product credits 6,441 1,044 (9,348) 12,196 34,376 21,909

Gold oz (payable metal) 34,732 116,644 83,796 58,065 93,081 70,878

Cash cost of sales/oz gold,

(net of by-product credits)

$1851 $92 $(112)3 $2104 $3695 $3096

5Based on US$2.34/lb copper 6Based on US$3.16/lb copper

4Based on US$3.42/lb copper

3Based on US$4.27/lb copper 2

Based on US$3.95/lb copper 1Based on US$3.64/lb copper

CHELOPECH MINE:

CASH COST PER TONNE OF ORE RECONCILIATION


1. Gold, copper and zinc are accounted for as co-products. Total cash costs are net of by-product silver revenue.

2. For other periods please refer to past MD&As available on the corporate web site.


For the periods indicated

Q1

2013

Year 2012

Actual

Year 2011

Actual

Year 2010

Actual

Year 2009

Actual

Year 2008

Actual

Ore processed (mt) 513,360 1,819,687 1,353,733 1,000,781 980,928 900,563

Cost of sales 31,991 98,298 $ 88,838 $ 72,707 75,647 67,423

Add (deduct):

Depreciation, amortization & other non-cash costs (7,948) (19,542) (15,499) (14,425) (15,390) (11,966)

Change in concentrate inventory (2,911) 4,535 862 (2,018) (419) (178)

Total cash cost of production 21,132 83,291 $ 74,201 $ 56,264 59,838 55,279

Cash cost per tonne of ore processed, including

royalties $41.16 $ 45.77 $ 54.81 $ 56.22 $ 61.00 $ 61.38

Cash cost per tonne of ore processed, excluding

royalties $36.55 $ 41.16 $ 49.99 $ 51.54 $ 55.23 $ 57.87

KAPAN MINE:

MINERAL RESOURCE ESTIMATE


Cut off

(AuEq - g/t)

Tonnage

(Mt)

Gold Equiv.

(g/t)

Copper

(%)

Gold

(g/t)

Silver

(g/t)

Zinc

(%)

0.50 335.8 1.19 0.11 0.48 8.39 0.41

0.75 226.5 1.47 0.13 0.61 10.32 0.49

1.00 147.1 1.80 0.15 0.79 12.62 0.57

1.25 98.3 2.14 0.17 0.99 14.99 0.65

1.50 69.8 2.45 0.18 1.19 17.00 0.72

1.75 49.2 2.80 0.19 1.43 19.14 0.78

2.00 36.3 3.13 0.19 1.68 20.87 0.83

Shahumyan Deposit – September 2008

Inferred Mineral Resource – Ordinary Kriging Estimate

10mE x 10mN x 10mRL Block Size – 5m Capped Input Composite Data

AuEq US$ price assumptions: Cu $2.50/lb, Au $850/oz, Ag $16/oz and Zn $1.00/lb

KAPAN MINE:

EXPLORATION RESULTS Q1 2013


Surface significant intercepts (SHDDR holes, cut-off grade 0.5 g/t AuEq) and underground significant intercepts (E

holes, cut-off grade 1.0g/t AuEq)

Hole ID Northing

(mRL)

Easting

(mRL)

RL

Dip

Azi

From

(m)

To

(m)

Interval

(m) & AuEQ

Au

(g/t)

Ag

(g/t)

Cu

(%)

Zn

(%)

E712DE014 4343208 8623975 713 -23.1 358.4 79.0 81.0 2m @ 20.17 11.55 358.5 0.06 2.47

E712DE028 4343208 8623974 712 -54.9 352.2 367.0 369.0 2m @ 13.09 8.72 69.5 1.79 0.07

E712DW007 4343184 8623803 713 -20.0 6.9 423.0 425.2 2.2m @ 17.74 8.20 184.6 2.45 3.33

E712DW009 4343184 8623803 712 -40.7 6.2 48.0 54.0 6m @ 11.71 3.72 54.4 2.18 6.05

SHDDR0516 4344044 8623467 975 -59.8 2.7 49.0 54.0 5m @ 3.68 2.30 22.2 0.04 1.58

SHDDR0517 4343950 8623467 963 -59.4 1.5 48.0 59.0 11m @ 2.49 0.96 34.8 0.30 0.64

SHDDR0517 4343950 8623467 963 -59.4 1.5 76.0 94.5 18.5m @ 1.93 0.36 17.5 0.36 1.14

SHRCR0111 4343334 8623777 904 -60.6 0.6 54.0 63.0 9m @ 3.56 1.36 22.0 0.31 2.29

SHRCR0115 4343370 8623867 895 -60.5 0.4 69.0 82.0 13m @ 5.93 5.59 9.3 0.01 0.24

SHRCR0117 4343245 8623880 882 -60.4 1.1 20.0 35.0 15m @ 2.43 0.91 21.8 0.15 1.51

SHDDR0539 4343234 8623596 906 -60.3 1.4 134.0 150.0 16m @ 2.72 1.03 25.8 0.25 1.40

SHDDR0539 4343234 8623596 906 -60.3 1.4 269.0 283.0 14m @ 4.42 2.45 49.5 0.26 1.01

1) In situ gold equivalent (AuEq) grade based on the following long-term metal prices: $1,250 per ounce for gold, $25 per ounce for silver, $3.00 per pound for copper and $1.00 per pound for

zinc.

2) Holes with the prefix SHDDR and SHRCR are surface HQ diamond and RC open pit drilling, respectively, while E holes are underground BQ drilling.

3) Significant intercepts for surface holes are located within the Central and Southern Zones while underground drilling is located within the Central Zone of the Shahumyan Deposit.

4) True widths are approximately 90% of the intersection width.

5) Minimum width reported is 2 metres and a maximum internal dilution of 4 metres.

6) All survey coordinates are transformed to AUSPOS.

7) No factors of material effect have hindered the accuracy and reliability of the data presented above.

8) No upper cuts have been applied.

KAPAN MINE:

CASH COST RECONCILIATION



Q1 2013

Actual

Year 2012

Actual

Year 2011

Actual

Year 2010

Actual

Year 2009

Actual

Year 2008

Actual

Cost of Sales: 9,502 50,547 47,276 33,637 21,072 36,319

Less amortization & other (1,617) (9,989) (9,140) (7,056) (6,996) (5,400)

Plus other charges, including freight 1,672 6,218 11,893 8,912 5,142 4,976

Less by-product credits (5,780) (32,075) (47,588) (28,562) (13,591) (13,520)

Cash cost of sales after by-product credits 3,777 14,701 3,028 6,931 5,627 22,375

Gold oz (payable metal) 3,541 18,204 26,230 22,287 11,233 11,388

Cash cost of sales/oz gold,

(net of by-product credits)

$1,0671 $8082 $1153 $3114 $5015 $1,9656

5Based on US$2.34/lb copper 6Based on US$3.16/lb copper

4Based on US$3.42/lb copper

3Based on US$4.27/lb copper 2

Based on US$3.95/lb copper 1Based on US$3.64/lb copper

KAPAN MINE:

CASH COST PER TONNE OF ORE RECONCILIATION


1. Gold, copper and zinc are accounted for as co-products. Total cash costs are net of by-product silver revenue.

2. For other periods please refer to past MD&As available on the corporate web site.


For the periods indicated

Q1

2013

Year 2012

Actual

Year 2011

Actual

Year 2010

Actual

Year 2009

Actual

Year 2008

Actual

Ore processed (mt) 119,663 509,419 581,852 428,865 218,235 269,033

Cost of sales 9,502 50,547 $ 47,276 $ 33,637 $ 21,197 $ 36,319

Add (deduct):

Depreciation, amortization & other non-cash

costs (1,617) (10,883) (9,140) (7,056) (4,047) (3,668)

Care and maintenance costs - - - - (3,074) (1,732)

Change in concentrate inventory 1,189 (718) 416 3,572 1,696 (1,485)

Total cash cost of production 9,074 38,946 $ 38,552 $ 30,153 $ 15,772 $ 29,434

Cash cost per tonne of ore processed

(royalties not applicable in 2009) $75.83 $ 76.45 $ 66.26 $ 70.31 $ 72.27 $ 109.40

Cash cost per tonne of ore processed,

excluding royalties $72.36 $ 69.10 $ 62.57 $ 66.33 $ 72.27 $ 109.40

KRUMOVGRAD GOLD PROJECT


KRUMOVGRAD GOLD PROJECT


Krumovgrad Mineral Reserves – December 31, 2011

Category

Tonnes

(M)

Gold Silver

Grade

(g/t)

Ounces

(M)

Grade

(g/t) Ounces (M)

Proven 2.94 4.70 0.44 2.54 0.24

Probable 4.30 2.44 0.34 1.52 0.21

Total 7.24 3.36 0.78 1.92 0.45

Krumovgrad Mineral Resources – December 31, 2011

Category

Tonnes

(M)

Gold Silver

Grade (g/t)

Ounces

(M)

Grade

(g/t) Ounces (M)

Measured 3.30 4.90 0.52 3.00 0.28

Indicated 4.69 2.50 0.38 2.00 0.24

M&I 7.99 3.50 0.90 2.00 0.51

Inferred 0.40 1.20 0.02 1.00 0.01

1. Rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals.

2. All Mineral Resource Estimates have been determined and reported in accordance with NI 43-101 and the classification adopted by the CIM.

3. Krumovgrad Mineral Reserves and Resources are based on the Krumovgrad 2012 Technical Report using a variable economic cut-off grade and 0.5 g/t Au respectively.

4. All Mineral Reserves and Resources are based on long term metals prices of $1,250 Au, $3/lb Cu, $25/oz Ag and $1/lb Zn.

5. Measured and Indicated Mineral Resources are inclusive of Proven and Probable Reserves.

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