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Corporate Presentation June 2012

Pretivm Corporate Presentation June 2012

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Page 1: Pretivm Corporate Presentation June 2012

Corporate PresentationJune 2012

Page 2: Pretivm Corporate Presentation June 2012

CAUTIONARY STATEMENT

Forward Looking InformationThis Presentation contains ‘‘forward-looking information’’ within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information may include, but is not limited to, information with respect to the anticipated production and developments in our operations in future periods, our planned exploration and development activities, the adequacy of our financial resources, the estimation of mineral resources, realization of mineral resource estimates, costs and timing of development of the projects we currently intend to acquire (the “Projects”), costs and timing of future exploration, results of future exploration and drilling, timing and receipt of approvals, consents and permits under applicable legislation, our executive compensation approach and practice, the composition of our board of directors and committees, and adequacy of financial resources. Wherever possible, words such as ‘‘plans’’, ‘‘expects’’ or ‘‘does not expect’’, ‘‘budget’’, ‘‘scheduled’’, ‘‘estimates’’, ‘‘forecasts’’, ‘‘anticipate’’ or ‘‘does not anticipate’’, ‘‘believe’’, ‘‘intend’’ and similar expressions or statements that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved, have been used to identify forward-looking information. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as ‘‘expects’’, ‘‘anticipates’’, ‘‘plans’’, ‘‘projects’’, ‘‘estimates’’, ‘‘assumes’’, ‘‘intends’’, ‘‘strategy’’, ‘‘goals’’, ‘‘objectives’’, ‘‘potential’’ or variations thereof, or stating that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information. Many of these risks are listed and described in our final short-form prospectus dated March 19, 2012 (the “Prospectus”), which is available for review on SEDAR at www.sedar.com under our profile. Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Forward-looking information involves statements about the future and is inherently uncertain, and our actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Prospectus under the heading ‘‘Risk Factors’’. Our forward-looking information is based on the beliefs, expectations and opinions of management on the date the statements are made, and we do not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information.National Instrument 43-101Technical and scientific information contained herein relating to the Projects is derived from National Instrument 43-101 (“NI 43-101”) compliant technical reports (“Reports”) “Technical Report and Updated Resource Estimate on the Snowfield Property” and “Technical Report and Updated Resource Estimate on the Brucejack Property” dated February 18, 2011; ‘‘Technical Report and Preliminary Economic Assessment of the Snowfield Brucejack Project’’ dated October 28, 2010 ; “Technical Report and Preliminary Economic Assessment of the Brucejack Project” dated June 3, 2011; and “Technical Report and Updated Preliminary Economic Assessment of the Brucejack Project” dated February 20, 2012. We have filed the Reports under our profile at www.sedar.com. Technical and scientific information not contained within the Reports for the Projects have been prepared under the supervision of Mr. Kenneth C. McNaughton, an independent “qualified person” under NI 43-101.This presentation uses the terms “measured resources”, “indicated resources” (together “M&I”) and “inferred resources”. Although these terms are recognized and required by Canadian regulations (under NI 43-101), the United States Securities and Exchange Commission does not recognize them. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no guarantee that all or any part of the mineral resource will be converted into mineral reserves.In addition, “inferred resources” have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre feasibility studies, or economic studies, except for a Preliminary Assessment as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. CurrencyUnless otherwise indicated, all dollar values herein are in Canadian $.

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Page 3: Pretivm Corporate Presentation June 2012

3

Major high-grade gold resource located in Canada

Valley of the Kings remains open; other high grade targets

Feasibility study underway

Why ?

Page 4: Pretivm Corporate Presentation June 2012

BRUCEJACK PROJECT LOCATION

4

Page 5: Pretivm Corporate Presentation June 2012

BRUCEJACK HIGH-GRADE RESOURCE (1)

5

(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral Resources in this news release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.(2) The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.(3) Contained metal may differ due to rounding.(4) The Mineral Resource estimate is defined using 5 m by 5 by 5 m blocks in the well drilled portion of West Zone (5 m by 10 m drilling or better) and 10 m by 10 m by 10 m blocks in the remainder of West Zone and in Valley of the Kings.

Category Tonnes(mil)

Gold(g/t)

Silver(g/t)

Contained(3)

Gold(mil oz)

Silver(mil oz)

Indicated 8.9 17.3 14.5 4.9 4.1Inferred(2) 12.7 25.5 11.6 10.4 4.7

Category Tonnes(mil)

Gold(g/t)

Silver(g/t)

Contained(3)

Gold(mil oz)

Silver(mil oz)

Measured 2.4 5.85 347 0.5 26.8Indicated 2.5 5.86 190 0.5 15.1M+I 4.9 5.85 267 0.9 41.9Inferred(2) 4.0 6.44 82 0.8 10.6

Valley of the Kings Mineral Resource Estimate – April 2012(4)

West Zone Mineral Resource Estimate – April 2012(4)

Page 6: Pretivm Corporate Presentation June 2012

VISIBLE GOLD

6

SU-195 (2011)SU-115 (2011)

SU-84 (2010) SU-29 (2009)

SU-260 (2011)

Brucejack Top 20 High-grade Gold Hits

HoleInterval(meters)

Depth (meters)

Gold (g/t)Gold

(oz/ton)

SU-115 0.6 60.6 18,755 547.0SU-260 0.5 68.4 17,750 517.7SU-12 1.5 273.0 16,948 494.3SU-316 0.5 302.6 9,110 265.7SU-230 1.0 305.7 7,420 216.4SU-150 0.5 76.4 6,670 194.5SU-376 0.65 77.7 6,142 179.1SU-40 1.64 648.0 5,850 170.6SU-195 0.5 349.4 5,740 167.4SU-84 0.44 198.0 5,480 159.8SU-29 0.5 560.0 5,344 155.9SU-349 0.5 5.4 5,240 152.8SU-115 0.51 76.1 4,209 122.8SU-132 0.5 57.68 4,060 118.4SU-249 0.5 115.6 3,880 113.2SU-239 1.0 310.0 3,460 100.9SU-176 0.5 335.8 2,810 81.9SU-54 1.59 53.6 2,490 72.6SU-345 0.7 162.2 2,470 72.0SU-338 0.64 336.3 2,350 68.0SU-316 0.54 566.2 1,855 54.0SU-341 0.5 175.6 1,840 54.0SU-106 0.69 240.4 1,710 49.9SU-150 0.5 59.0 1,640 47.8SU-325 0.59 224.0 1,590 46.0SU-226 0.52 335.0 1,465 42.7

Page 7: Pretivm Corporate Presentation June 2012

BRUCEJACK GEOLOGY

TSX, NYSE:PVG 7

West Zone

Valley of the Kings

Valley of the Kings

Aerial photo showing synclinal axis plunge

Page 8: Pretivm Corporate Presentation June 2012

VALLEY OF THE KINGS – PLAN VIEW

8

Page 9: Pretivm Corporate Presentation June 2012

VALLEY OF THE KINGS – LONG SECTION

9

Page 10: Pretivm Corporate Presentation June 2012

VALLEY OF THE KINGS – SECTION 325

10

Page 11: Pretivm Corporate Presentation June 2012

VALLEY OF THE KINGS – SECTION 525

11

Page 12: Pretivm Corporate Presentation June 2012

VALLEY OF THE KINGS – SECTION 650

12

Page 13: Pretivm Corporate Presentation June 2012

VALLEY OF THE KINGS

13Open

Open

Valley of the KingsLong SectionView North-Northwest

Isometric projection of Block Model

10m x 10m x 10m Blocks5.0 g/t Au-Eq Cut-off

Indicated gold resources

Inferred gold resourcesOpen

Open

Category Tonnes(mil)

Gold(g/t)

Silver(g/t)

Contained(3)

Gold(mil oz)

Silver(mil oz)

Indicated 8.9 17.3 14.5 4.9 4.1Inferred(2) 12.7 25.5 11.6 10.4 4.7

Valley of the Kings Mineral Resource Estimate – April 2012(4)

Page 14: Pretivm Corporate Presentation June 2012

ADVANCING NEAR-TERM PRODUCTION

Based on 5.0 g/t cut-off gold sensitivity(2) of 5.33 million ounces M&I (8.6Mt @ 19.35 g/t gold) and 3.29 million ounces Inferred (4.0Mt @ 25.73 g/t gold):

14

(1) Source: Technical Report and Updated Preliminary Economic Assessment of the Brucejack Project, effective date February 20, 2012(2) Announced November 28, 2011

February 2012 Updated PEA (1)

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied that would enable them to be categorized as mineral reserves. There is no certainty the PEA will be realized.

Project Economics (base case, pre-tax US$0.93:C$1)

Gold Price US$ 1,100

Silver Price US$21

Net Cash Flow US$5.133 billion

Net Present Value (5% discount)

US$2.262 billion

Capex US$436.3 million

Internal Rate of Return

29.8%

Payback 4.1 years

Processing & Production Summary

Processing rate 1,500 tpd

Mine life 24 years

Total gold production

6.9 million oz

Average annual gold production (Yrs 1-12)

325,000 ounces

Mining costs C$103.60/t milled

Total operating costs C$170.90/t milled

Gold recovery 95.7% (gravity and flotation

Page 15: Pretivm Corporate Presentation June 2012

BRUCEJACK PROJECT CHRONOLOGY

15

1960-1980

1980-1985

1986-1989

1990

1993

1999-2000

2009

2010

2011

2012

Exploration

West Zone discovery

and definition

5.3 km underground

development of West Zone

West Zone Feasibility Study

completed

Mine Development Certificate issued

Acquisition by Silver Standard Resources Inc.

Exploration resumes. Discovery of Valley of the

Kings Zone.

• Initial high-grade resource (Feb)

• 72,144-meter drill program (May-Oct)

• Resource update (Nov)

• Updated PEA on Brucejack high-grade

• Snowden high-grade resource• Feasibility Study underway

Brucejack Fault

Valley of the KingsCamp

02468

1012141618

(Historic) Feb. 2011 Nov. 2011 Apr. 2012

Gol

d re

sour

ces

(mil)

Brucejack High-grade Gold Resource Growth

Inferred Au Indicated Au Measured Au

Acquisition by Pretivm

Page 16: Pretivm Corporate Presentation June 2012

SOCIAL RESPONSIBILITY & SUSTAINABILITY

16

Pretivm’s Social Responsibility Policy reflects our commitment to establishing positive, trusting relationships with First Nations, local communities and other key stakeholders

We are working to ensure that communication with local communities is open and continuous, and that the benefits of our exploration success can extend to them

We will collaborate with community leaders to explore training and employment opportunities

Pretivm’s management team has been cooperatively engaging with local community leaders in the Stewart, BC region for over 10 years

We have begun the consultation process with community leaders concerning the Brucejack high-grade opportunity

Page 17: Pretivm Corporate Presentation June 2012

BRUCEJACK PROJECT INFRASTRUCTURE

17

Page 18: Pretivm Corporate Presentation June 2012

PLANS FORWARD TO PRODUCTION

18

Key milestones

Feb 2012

April 2012

H1 2012

2012/H2

2013

2014

2015

• Complete initial 25,000m surface drilling in Valley of the Kings

• Baseline studies/wildlife assessment (ongoing)

• First Nations and stakeholder consultation (ongoing)

• File Project Description• Initiate exploration decline

from West Zone historic workings to Valley of the Kings

• Complete additional drilling in Valley of the Kings

• Complete access road to Highway 37

• Complete Feasibility Study• Complete exploration

decline for underground test sample from Valley of the Kings

• Extract test sample from Valley of the Kings (10,000 tonnes)

• Basic and detailed engineering

• Submit Environmental Assessment Certificate (EAC) application

• Anticipate EAC issue

• Underground development

• Begin construction

• Construction• Begin commissioning• Ramp-up• Production (H2)

• Completed updated PEA

• Completed high-grade Resource Estimate

Page 19: Pretivm Corporate Presentation June 2012

BRUCEJACK PROJECT PLANS FOR 2012

19

Infill drilling completed (7 drills, 25,000 meters)

Updated high-grade resource Expected Q3/12

Feasibility study in progress Expected Q1/13

Project Description File Q3/12

Expansion drilling Site preparation underway

Exploration Road Expect completion Q4/12

Underground program Planning underway

Page 20: Pretivm Corporate Presentation June 2012

WEST ZONE

20TSX, NYSE:PVG

West ZoneLong SectionView Northeast

Isometric projection of Block Model

5m x 5m x 5m Blocks5.0 g/t Au-Eq Cut-off

Indicated gold resources

Inferred gold resources

Measured gold resources

Historic workings (5.3km)

Category Tonnes(mil)

Gold(g/t)

Silver(g/t)

Contained(3)

Gold(mil oz)

Silver(mil oz)

Measured 2.4 5.85 347 0.5 26.8Indicated 2.5 5.86 190 0.5 15.1M+I 4.9 5.85 267 0.9 41.9Inferred(2) 4.0 6.44 82 0.8 10.6

West Zone Mineral Resource Estimate – April 2012(4)

(1,2,3,4) See table notes slide number 10.

Page 21: Pretivm Corporate Presentation June 2012

PROPOSED UNDERGROUND PROGRAM

21

West ZoneValley of the Kings

West Zone Mineral Resource Estimate – April 2012 (1,4)Valley of the Kings Mineral Resource Estimate – April 2012 (1,4)

Historic underground

workings (5.3km)

Proposed exploration decline

Category Tonnes(mil)

Gold(g/t)

Silver(g/t)

Contained(3)

Gold(mil oz)

Silver(mil oz)

Indicated 8.9 17.3 14.5 4.9 4.1Inferred(2) 12.7 25.5 11.6 10.4 4.7

Category Tonnes(mil)

Gold(g/t)

Silver(g/t)

Contained(3)

Gold(mil oz)

Silver(mil oz)

Measured 2.4 5.85 347 0.5 26.8Indicated 2.5 5.86 190 0.5 15.1M+I 4.9 5.85 267 0.9 41.9Inferred(2) 4.0 6.44 82 0.8 10.6

(1,2,3,4) See table notes slide number 5.

Page 22: Pretivm Corporate Presentation June 2012

BRUCEJACK HIGH-GRADE COMPARISON

22

0.0

5.0

10.0

15.0

20.0

25.0

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0

Mea

sure

d &

Indi

cate

d +

Infe

rred

Gol

d G

rade

(g/t)

Measured & Indicated + Inferred Gold Resources (mm oz)

Valley of the Kings (2012)

Kensington

Red Lake

Eleonore

QuimsacochaEl Penon

Casa Berardi

Jerritt Canyon

Kirkland Lake

Brucejack (2010)

Cerro Negro

Indicated: 4.9 mm oz @ 17.3 g/t Au

Inferred:10.4 mm oz @ 25.5 g/t Au

April 2012 Valley of the Kings High-Grade Gold Mineral Resource based on a cut-off grade of 5.0 grams of gold-equivalent/tonne.Source: Intierra Ltd.

Page 23: Pretivm Corporate Presentation June 2012

VALUE CREATION: CASE STUDY

At Feasibility-stage with exploration potential

Cerro Negro gold reserves and resources at March 31, 2011 (post acquisition by Goldcorp) Probable Reserves of 4.26 million ounces

(13 million tonnes @ 10.19 g/t)

Indicated Resources of 0.38 million ounces(4.67 million tonnes @ 2.50 g/t)

Inferred Resources of 0.72 million ounces(4.51 million tonnes @ 4.98 g/t)

23

Andean Resources acquired for$3.6 billion by Goldcorp in Q4 2010for Cerro Negro Project

Page 24: Pretivm Corporate Presentation June 2012

PVG SHARE PERFORMANCE

24

Relative Performance January 1, 2011 – June 22, 2012 (%)

Pretivm+ 125%

Pretivm S&P/TSX Global Mining Index XAU Index

(%)Gold ($)

Page 25: Pretivm Corporate Presentation June 2012

SHAREHOLDING & ANALYST COVERAGE

25

Institutions, 50%

Retail, 23%

Management, 5%

Silver Standard,

20%

Capital Structure(1)

Public Float 74.6Silver Standard Shares 19.1 Total Issued & Outstanding Shares 93.7 Incentive Options 7.0Total Fully Diluted Shares Outstanding 100.7

Working Capital (at Mar. 31, 2012) C$22.6 millionCommon share offering gross proceeds (at May 9, 2012)(3) C$80.5 million

Top Shareholders(2) (shares in millions)

Silver Standard Resources 19.063Royce & Associates 9.263Fidelity Management 6.482 Passport Capital 3.730Carmignac Gestion 3.545Robert Quartermain 2.876 Norges Bank Investment 2.409

Analyst CoverageCIBC Jeff KilleenCitibank Alex HackingCormark Securities Richard GrayDahlman Rose Adam GrafGMP Securities Craig WestSalman Partners Ash GuglaniScotiabank Ovais HabibUBS TBDVery Independent Research John Tumazos

(1)As of June 26, 2012; ownership calculated on an undiluted basis.(2)As of June 26, 2012. Source: IPREO, SEDI(3)See news release dated May 9, 2012

(shares in millions)

Page 26: Pretivm Corporate Presentation June 2012

MANAGEMENT & BOARD

26

Robert Quartermain, B.Sc., M.Sc., P.Geo, D.Sc. President & Chief Executive Officer, Director

Peter de Visser, CAChief Financial Officer

Joseph Ovsenek, B.A. Sc., P.Eng., LLBVice President & Chief Development Officer, Director

Ken McNaughton, M.A. Sc., P.Eng.Vice President & Chief Exploration Officer

Ken Konkin, P.Geo.Project Manager

Ian I Chang, M.A. Sc., P.Eng.Vice President, Project Development

(1)All senior management and directors are shareholders of Pretivm

(L to R): John Smith, CEO, Silver Standard; Tom Yip, CFO, International Tower Hill Mines; Robert Quartermain; Ross Mitchell, former CFO, Silver Standard; Joseph Ovsenek; Noel Dunn, Managing Director, Liberty Metals & Mining

Page 27: Pretivm Corporate Presentation June 2012

27

Advanced-exploration gold company in Canada, in an area of permitted gold mining

Major high-grade gold resource at Brucejack: Valley of the Kings

4.9 M oz Indicated (8.9 Mt @ 17.3 g/t gold )10.4 M oz Inferred (12.7 Mt @ 25.5 g/t gold)

Advancing Brucejack with feasibility study in progress and underground test sample planned

An investment in Gold

Page 28: Pretivm Corporate Presentation June 2012

APPENDIX: BRUCEJACK BULK TONNAGE

28

Gold/silver vein systems within lower grade envelopes

Mineralization remains open Based on November 2011 bulk tonnage resource

(1) Metal price and recoveries assumptions are: Au US$1,200/oz. (71%); Ag US$22/oz. (70%)

Category Tonnes(millions)

Gold(g/t)

Silver( g/t)

ContainedGold

(million oz)Silver

(million oz)Measured 12.2 2.50 81.6 0.99 32.1Indicated 293.0 1.26 10.5 11.91 99.3M+I 305.3 1.31 13.4 12.89 131.5Inferred 813.7 0.70 7.7 18.20 201.2

Category Tonnes(millions)

Gold(g/t)

Silver(g/t)

ContainedGold

(million oz)Silver

(million oz)Measured 9.3 3.08 102.2 0.92 30.6Indicated 64.8 3.62 23.7 7.53 49.4M+I 74.1 3.55 33.6 8.46 80.0Inferred 78.5 2.68 16.3 6.76 41.2

Brucejack Project Bulk-Tonnage Mineral Resource Estimate –November 2011 (1)

(Based on a cut-off grade of 0.30 grams of gold-equivalent/tonne)

Brucejack Project 1.25 Grade & Tonnage Estimate –November 2011 (1),(2)

(2)@ 1.25 g/t cut-off within the 0.30 grams of au-equiv/tonne optimized pit shell.

Page 29: Pretivm Corporate Presentation June 2012

APPENDIX: SNOWFIELD PROJECT

29

Snowfield Open Pit(September 2010 PA)

Mitchell Zone(SEA)

Sulphurets Zone(SEA)

Iron Cap Zone(SEA)

Grade Contained MetalTonnes Au Ag Cu Mo Re Au Ag Cu

(mt) (g/t) (g/t) (%) (ppm) (ppm) (mm oz)

(mm oz) (bil lbs)

Measured 189.8 0.82 1.69 0.09% 97.4 0.57 4.98 10.3 0.38Indicated 1,180.3 0.55 1.73 0.10% 83.6 0.50 20.93 65.4 2.60Measured & Indicated 1,370.1 0.59 1.72 0.10% 85.5 0.51 25.92 75.8 2.98

Inferred 833.2 0.34 1.90 0.06% 69.5 0.43 9.03 50.9 1.10

Snowfield Mineral Resource Summary – Feb. 2011(1,2)

(1) Metal price and recoveries assumptions: Au US$1,025/oz (71%); Ag US$16.60/oz (70%); Cu US$3.0/lb (70%); Mo US$19.00/lb (60%); Re US$145.00/oz. (60%)(2) Mineral resource estimate at 0.30g/t AuEq cut-off.

Inferred ResourcesMeasured + Indicated Resources

4015 4 9

66

49

38 26

0

20

40

60

80

100

120

Pebble KSM Donlin Gold Snowfield

Gol

d R

esou

rces

(mm

oz.

)

Large –Scale North American Gold Projects

(PVG)(NG/ABX)

(SEA)

(NDM)

Page 30: Pretivm Corporate Presentation June 2012

CONTACTPhone: 604-558-1784Fax: 604-558-4784Toll-free: [email protected]

HEAD OFFICEPretium Resources Inc.570 Granville St.Suite 1600Vancouver, BCCanada V6C 3P1

COMMON SHARESTSX/NYSE:PVGIssued: 88.1 millionFully diluted: 95.0 million52-week hi/low: $18.15/$7.89Market capitalization (at June 18, 2012):$1.5 billion