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Patrick F. N. Anderson Chief Execu8ve Oﬃcer High-‐Grade │ Low-‐Risk │ Explora8on │ Development │ Europe │ May 2013 Sample from the T17 vein – 188 g/t of gold, 103 g/t of silver and 5.07% of copper
Forward-‐Looking Statement & Qualiﬁed Persons 2 This presenta8on contains “forward looking informa8on” which may include, but is not limited to, statements with respect to [future ﬁnancial or opera8ng performance of the Company and its mineral projects, the future price of metals, the es8ma8on of mineral resources, the realiza8on of mineral resource es8mates, the 8ming and amount of es8mated future produc8on, costs of produc8on, capital, opera8ng and explora8on expenditures, costs and 8ming of the development of new deposits, costs and 8ming of future explora8on, requirements for addi8onal capital, government regula8on of mining opera8ons, environmental risks, reclama8on expenses, 8tle disputes or claims and limita8ons of insurance coverage]. O`en, but not always, forward looking statements can be iden8ﬁed by the use of words and phrases such as “plans,” “expects,” “is expected,” “budget,” “scheduled,” “es8mates,” “forecasts,” “intends,” “an8cipates,” or “believes” or varia8ons (including nega8ve varia8ons) of such words and phrases, or state that certain ac8ons, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved. Forward-‐looking statements are based on the opinions and es8mates of management as of the date such statements are made and are based on various assump8ons, such as the con8nued poli8cal stability in Northern Ireland and Norway, that permits required for the Company’s opera8ons will be obtained in a 8mely basis in order to permit the Company to proceed on schedule with its planned explora8on and development programs, that skilled personnel and contractors will be available as the Company’s opera8ons con8nue to grow, that the price of gold will be at levels that render the Company’s mineral projects economic, that the Company will be able to con8nue raising the necessary capital to ﬁnance its opera8ons and realize on mineral resource es8mates, and that the assump8ons contained in the Company’s technical report en8tled “A Preliminary Economic Assessment of the Curraghinalt Gold Deposit, Tyrone Project, Northern Ireland”, dated September 6, 2012 (the “PEA”) are accurate and complete. Forward looking statements involve known and unknown risks, uncertain8es and other factors which may cause the actual results, performance or achievements of the Company to be materially diﬀerent from any future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others, general business, economic, compe88ve, poli8cal and social uncertain8es; the actual results of current and future explora8on ac8vi8es; the actual results of reclama8on ac8vi8es; conclusions of economic evalua8ons; changes in project parameters and/or economic assessments as plans con8nue to be reﬁned; future prices of metals; possible varia8ons of mineral grade or recovery rates; the risk that actual costs may exceed es8mated costs; failure of plant, equipment or processes to operate as an8cipated; accidents, labour disputes and other risks of the mining industry; poli8cal instability; delays in obtaining governmental approvals or ﬁnancing or in the comple8on of development or construc8on ac8vi8es, as well as those factors discussed in the sec8on en8tled “Risk Factors” in the Company’s Annual Informa8on Form. Although the Company has ahempted to iden8fy important factors that could cause actual ac8ons, events or results to diﬀer materially from those described in forward looking statements, there may be other factors that cause ac8ons, events or results to diﬀer from those an8cipated, es8mated or intended. Forward looking statements contained herein are made as of the date of this presenta8on and the Company disclaims any obliga8on to update any forward looking statements, whether as a result of new informa8on, future events or results, except as may be required by applicable securi8es laws. 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 an8cipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements. For addi8onal informa8on on the Curraghinalt project, please see the PEA, prepared by B. Terrence Hennessey, P.Geo., Barnard Foo, P. Eng., Bogdan Damjanović, P. Eng., André Villeneuve, P. Eng., and Christopher Jacobs, CEng MIMMM, of Micon Interna8onal Limited, which is available on SEDAR at www.sedar.com and on the Company’s website at www.dalradian.com. Michele L. Cote, MSc., P. Geo., Vice President Explora8on of the Company, is the Qualiﬁed Person (for the purposes of Na8onal Instrument 43-‐101) who reviewed and approved the technical informa8on contained in this presenta8on.
Capital Structure STOCK PRICE All dollars quoted in $ CAD TSX, OTCQX: DNA, DRLDF Shares outstanding: Fully diluted : (March 28, 2013) 89.5 million 97.4 million Market cap: (May 1, 2013) $63.6 million Average volume: (30 day) 227,196 52 Week Range: $1.90 -‐ $0.61 Insider ownership: (approximate) 6% Cash balance: (as at December 31, 2012) $22.8 million Analyst coverage: Jamie Sprah Steve Parsons Craig Stanley Laurie Cur8s John Hayes 3 $1,400.00 $1,500.00 $1,600.00 $1,700.00 $1,800.00 $1,900.00 $2,000.00 $0.00 $0.50 $1.00 $1.50 $2.00 Dec 2011 Feb 2012 Apr 2012 Jun 2012 Aug 2012 Oct 2012 Dec 2012 Feb 2013 Apr 2013 $0.71May 1, 2013DNA Gold Price
The Board: A Track Record of Discovery and Development 4PATRICK F. N. ANDERSON CHIEF EXECUTIVE OFFICER Former CEO of Aurelian Resources Former Director of ConWnental Gold COLIN K. BENNER CHAIRMAN OF DELTA MINERALS AND AURICO GOLD Also Director of Mercator Minerals, Lundin Mining, JOSEPH F. CONWAY CEO OF PRIMERO MINING CORP. Former CEO of IAMGOLD RONALD P. GAGEL Former SVP and CFO of FNX Mining THOMAS J. OBRADOVICH CHAIRMAN Chairman of Lago Dourado Minerals Former CEO of Young-‐Davidson Mines Former Director of Aurelian Resources SEAN E. O. ROOSEN CEO OF OSISKO MINING CORPORATION Also Director of Astur Gold CEO OF CONTINENTAL GOLD LIMITED ARI B. SUSSMAN KEITH D. MCKAY CHIEF FINANCIAL OFFICER Former CFO of Aurelian Resources
NORWAY High-‐Grade Targets in Low Risk JurisdicWons 5§ Gold resource covers a frac8on of known mineraliza8on § High-‐grade 2.7M ounce gold resource (all categories)1 − Measured: 0.02 MT grading 21.51 g/t Au for 10,000 contained ounces − Indicated: 1.11 MT grading 12.84 g/t Au for 460,000 contained ounces − Inferred: 5.45 MT grading 12.74 g/t Au for 2.23 million contained ounces § Posi8ve PEA shows us a high margin and low capex producer § 1.3 M hectares of explora8on permits § En8re greenstone belts § Over 15 precious metals targets iden8ﬁed in 2012 season NORTHERN IRELAND Northern Ireland Norway 1 Refer to press release dated Nov. 30, 2011 en8tled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com
Northern Ireland § Our ﬂagship asset: Curraghinalt high-‐grade lode gold deposit § Excellent regional infrastructure § Over 84,000 hectares under license § Recent surge in gold sector 6 Gor8n Omagh Curraghinalt BELFAST NORTHERN IRELAND Galantas Gold Conroy Diamonds & Gold Lonmin Irish Salt Mining ClonWbret Croagh Patrick Parys Mountain Gwynfynydd Galmoy Avoca Pallas Green Silvermines South CroZy Gold Base Metals Salt Mine Allihies Copper Mines Galantas Gold Permihed in 2007 Scotgold Permihed in 2012 Vedanta Resources In produc8on Boliden In produc8on IMC ExploraWon 354 g/t gold over 1.5m Underground Salt Mine Lundin In produc8on Conroy +1M ounce resource Lisheen Cononish Tara Cavanacaw Xstrata Feasibility Gold Mines of Wales U/G grab sample -‐ 263 g/t gold Clogau
DG3 GorWn Permi]ng is Possible 7 Curraghinalt Alwories Quarry kilometres0 1 2Curraghinalt Clear Cut Logging at Gor8n Glen Forest Park 125 MetresCavanacaw Open Pit Approx 30 km SW Greencastle Quarry
News Flow 2012/2013 Curraghinalt Drilling: • 3.35m @ 13.80 g/t Au • 3.75m @ 10.43 g/t Au • 1.48m @ 22.83 g/t Au 2013 2012 Q1 Q2 Q3 Q4 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Fallagh Prospect announced with ﬂoat samples of: • 30.30 g/t Au • 29.20 g/t Au Completes airborne geophysical survey PosiWve PEA 43-‐101 Technical Report ﬁled Soil geochem grid iden8ﬁes new targets Water discharge permit in hand Curraghinalt Drilling: • 2.34m @ 47.94 g/t Au • 3.97m @ 38.00 g/t Au Alwories discovery 1.47m @ 23.62 g/t Au 2.22m @ 14.07 g/t Au C-‐veins show wall rock carry gold More Alwories Intercepts: • 4.72m @ 14.82 g/t Au • 1.28m @ 30.58 g/t Au 2013 Explora8on Program Announced $28.2 million bought deal ﬁnancing announced Micon appointed as lead consultant for PEA Curraghinalt Drilling: • 1.7m @ 17.55 g/t Au • 2.47m @ 18.99 g/t Au 8Curraghinalt Drilling Deep Hole: • 1.54m @ 30.13 g/t Au Step-‐Out: • 5.35m @ 6.60 g/t Au ApplicaWon Submifed for Underground ExploraWon Development Q1 JAN FEB MAR APR Q2 C-‐Vein Sampling: 0.76 m of 33.6 g/t of gold Becomes 7.21 m of 7.58 g/t of gold
Cross SecWon 12-‐CT-‐156 10CROSS-‐SECTION A – A’ Adit
PotenWal to Expand the Resource § Assembled 80 km of historic core in a modern facility § Most was found unsampled § Iden8ﬁed a mineralized oblique vein set 1111Dalradian Gold Omagh, Core Facility § Poten8al to increase ounces & mining widths § Posi8ve poten8al implica8ons for dilu8on
PotenWal to Expand the Resource § Q4 resource update will include: – 35,000+ metres of new drilling & unsampled historical veins 1212‘Resource’ or ‘D’ Vein Newly idenWﬁed ‘C’ Vein Plan View Looking North 600 m hole yielded over 1000 veinlets
Broader Mineralized Zones CROSS-‐SECTION A – A’ 13
Intercept in hole 11-‐CT-‐99 projected up dip to 170m mSL Not a Trend but a District Curraghinalt Deposit Resource as at Nov 2011 – Measured: 0.01 Moz Au (0.02MT @ 21.51 g/t) Indicated: 0.46 Moz Au (1.11MT @ 12.84 g/t) Inferred: 2.23 Moz Au (5.45 MT @ 12.74 g/t) Alwories 1.88 m @ 20.8 g/t Au in vein in quarry GLACIATED TERRAIN WITH MINIMAL OUTCROP 8 km Golan Burn Outcropping veins including 60cm @ 61.43 g/t Au 1700m Alwories Discovery Holes 4.72m @ 14.82 g/t Au 2.22m @ 14.10 g/t Au 1.47m @ 23.6 2g/t Au Curraghinalt Deposit Curraghinalt Trend 14400 m Step-‐out 3.2m @ 5.34 g/t Au Afagh Burn 2.47m @ 18.99 g/t Au Scotch Town Peak of 10.52 g/t Au In mineralized boulders “Fallagh” New Au Prospect 30.30 g/t Au, 29.20 g/t Au & 17.25 g/t Au in Float Curraghinalt TrendVeins in Current ResourceInterpreted VeinsHistoric Findings
ExploraWon Summary § In the last 2 years… – >4-‐fold increase in contained ounces – Implemented a modern explora8on organiza8on § Deposit is open in all direc8ons § Successfully mapping high grade shoots § “C” veinlet swarms, a poten8al game changer… – Reduce dilu8on – Stand-‐alone ounces? – Poten8al for alterna8ve mining methods § Big trend & excellent explora8on tools § Clear strategy, competent team 15
Preliminary Economic Assessment 1616KEY PEA DATA* 3 YEAR TRAILING AVERAGE GOLD PRICE: 5 YEAR TRAILING AVERAGE GOLD PRICE: NPV with 8% discount rate (A`er-‐tax) $467 million $331 million IRR (A`er-‐tax) 41.9% 33.4% Average Annual Produc8on 145,000 ounces/year Processing Rate 1,700 tonnes/day Life of Mine 15 years Ini8al Capex ($38M con8ngency) $192 million Cash Costs $532/ounce or $125/tonne Diluted Grade 8.1 g/t Au Gold Recovery 92% All dollars quoted in $ USD unless stated otherwise PEA results released on July 25, 2012. The PEA is preliminary in nature. It includes inferred mineral resources that are considered too specula8ve geologically to have the economic considera8ons applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the results of the PEA will be realized. * Prepared by Micon Interna8onal Limited
Underground ExploraWon Development § 2,000 metres planned § Bulk sample for metallurgical test work § Demonstrate vein con8nuity § Convert ounces to Measured & Indicated § Applica8on submihed Feb 18, 2013 § In Q1 2013 the company ﬁnalized the pre-‐consulta8on process, which included: – Town hall mee8ngs – Landowner engagement – Detailed presenta8ons to involved government agencies – Site visits by government oﬃcials 17 GETTING BACK UNDERGROUND PERMITTING
Norway: “Let the Treasure Hunt Begin” Industry Minister, Trond Giske at Press conference announcing new direc8on in mineral strategy for Norway (Oct. 2010) 19
Oslo KongsbergSOUTHERN NORWAY NORWAY FINLAND SWEDEN RUSSIA Land PosiWon Northern Norway § Four concessions over three greenstone belts and a basement window Southern Norway § Kongsberg concession hos8ng an historic silver mining district RombakNORTHERN NORWAY Greenstone Belts Volcanic Belts & Metasediments KautokeinoKi€lä Saka€lampi Bidjovagge PasvikKarasjokPechenga NORWAY FINLAND SWEDEN RUSSIA 20
2012 ExploraWon Norway § Largest of 3 greenstone belts § 10 gold-‐in-‐+ll anomalies iden+ﬁed § 2,476 8ll samples collected § 48 rock samples collected § Completed 8ll orienta8on survey around former producing gold mine, Bidjovagge 21Kautokeino Kongsberg § Historic silver mining district with produc8on of 40+ million ounces with average grades of 356 g/t silver § Five silver targets iden+ﬁed § 462 stream sediment samples completed § 156 rock samples completed, including: – 278 g/t of silver – 61 g/t of silver with 21.60% zinc – 109 g/t of silver with 16.20% zinc Sampling Program Historical Workings in the Kongsberg These poten8al grades are conceptual in nature. There has been insuﬃcient explora8on to deﬁne a mineral resource and it is uncertain if further explora8on will result in the target being delineated as a mineral resource.
Where We Are – Where We’re Headed 22§ In the last 2 years… – >4-‐fold increase in contained ounces – Implemented a modern explora8on organiza8on § Deposit is open in all direc8ons § Big trend & proven explora8on method (prospec8ng > soil sampling > drilling) § Resource upgrade expected § Underground permit expected § We are posi8oned § Baseline studies underway NORTHERN IRELAND NORWAY
The European ExplorerPatrick F. N. AndersonChief Executive OfficerInvestor RelationsShae-Lynn MathersDirector, Investor Relationssmathers@dalradian.com416.583.5622Trading Symbol:DNA on TSXDRLDF on OTCQXCorporate Office:Dalradian Resources Inc.155 Wellington Street WestSuite 2920Toronto, OntarioCanada M5V 3H1www.dalradian.com23