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April 2013
Forward Looking Information                                                                                               ...
Rainy River Resources Ltd.                                                                                 TSX: RRRainy Ri...
Located in Mining Friendly Ontario, Canada                                                               TSX: RRHalf of th...
Why Rainy River?                                                                                                          ...
RRGP Feasibility Study Highlights, April 2013                                                                             ...
RRGP – Robust Project Metrics                                                                                       TSX: R...
Production and Cash Flow Profile                                                                                          ...
The Rainy River Gold Project (RRGP)                                                                         TSX: RR•   Hig...
Pit Design for Elevated Grade                                                       TSX: RR                               ...
TSX: RRProject Infrastructure:• Power, rail within 25 km.• Year round access.     © 2013 RAINY RIVER RESOURCES LTD.       ...
TSX: RR© 2013 RAINY RIVER RESOURCES LTD.             12
Site Topography                                    TSX: RR© 2013 RAINY RIVER RESOURCES LTD.             13
Mine Environmental Assessment & Permitting                                                                                ...
Community and Environment                                                                 TSX: RREnvironmental Risk Mitiga...
Project Timeline: Focus on De-Risking                                                 TSX: RR      Feasibility Study     ...
Making the Grade - Comparison to Peer Projects                                                                            ...
RRGP Stands Out Amongst Its Peers                                                                                         ...
RRGP - An Undervalued Story                                                                               TSX: RRRR NAV, B...
District Potential for Growth                                       TSX: RR   © 2013 RAINY RIVER RESOURCES LTD.           ...
TSX: RR  NR121256: 1.1 & 5.1 / 9.0  NR121256: 1.9 & 7.5 / 3.8        NR121256: 34.8 & 6.9 / 1.5            NR121256: 1.2 &...
TSX: RRVertical Longitudinal Section   © 2013 RAINY RIVER RESOURCES LTD.             22
Pit Outline and Ramp Design:      Intrepid Conveniently Located                                       TSX: RR  3D View Loo...
TSX: RR                                              24© 2013 RAINY RIVER RESOURCES LTD.
TSX: RR© 2013 RAINY RIVER RESOURCES LTD.             25
TSX: RR© 2013 RAINY RIVER RESOURCES LTD.             26
TSX: RR© 2013 RAINY RIVER RESOURCES LTD.             27
TSX: RR    Composite of Drill Holes© 2013 RAINY RIVER RESOURCES LTD.             28
The Rainy River Gold Project (RRGP)                                                                         TSX: RR•   Hig...
TSX: RR                                    QUESTIONS?© 2013 RAINY RIVER RESOURCES LTD.                     30
Strong Capital Structure and Institutional Support                                                                        ...
History                                                                                                                   ...
Geology                                                                                                                   ...
Rainy River Resource: Organic Growth in Gold           October 2012 based on drill data as of June 10:                    ...
Rainy River Resource: Organic Growth in Silver           October 2012 based on drill data as of June 10:                  ...
Feasibility Study Assumptions                                                                         TSX: RRGold Price   ...
RRGP – Reserves (April 10, 2013)                                                                                          ...
Operations Overview                                                                                                       ...
Mine Design                                                                                      TSX: RROpen Pit Design   ...
Process Plant Design - Flowsheet                                                                                          ...
Project Capital: Open Pit Components                                                                             TSX: RR  ...
Project Capital: Underground Components                                                                                   ...
Consultants and Contractors                                                                                 TSX: RR•      ...
Proven Management Team                                                                                                    ...
Board Expertise: Projects,Finance, Governance                                                                             ...
Analyst Coverage                                                                                                          ...
DEFINING CANADA’S NEWEST GOLD DISTRICT                                            Indi Gopinathan, Director, Investor Rela...
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Rainy River Resources Ltd. Corporate Presentation - April 2013

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Transcript of "Rainy River Resources Ltd. Corporate Presentation - April 2013"

  1. 1. April 2013
  2. 2. Forward Looking Information TSX: RRThis presentation contains “forward-looking information” as defined in applicable securities laws (referred to herein as “forward-looking statements”). Forwardlooking statements include, but are not limited to, statements with respect to the cost and timing of the development of the Rainy River project, the othereconomic parameters of the project, as set out in its feasibility study; the success and continuation of exploration activities; estimates of mineral reserve andresources; acquisitions of additional mineral properties; the future price of gold; government regulations and permitting timelines; estimates of reclamationobligations that may be assumed; requirements for additional capital; environmental risks; and general business and economic conditions. Often, but notalways, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”,“continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates” or “believes”, or variations of, or the negatives of, such words and phrases, or statementsthat certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involveknown and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materiallydifferent from any of its future results, performance or achievements expressed or implied by forward-looking statements. These risks, uncertainties and otherfactors include, but are not limited to, the assumptions underlying the feasibility study not being realized, decrease of future gold prices, cost of labour,supplies, fuel and equipment rising, availability of financing on attractive terms, actual results of current exploration, changes in project parameters, exchangerate fluctuations, delays and costs inherent to consulting and accommodating rights of First Nations, title risks, regulatory risks and uncertainties with respect toobtaining necessary surface rights and permits or delays in obtaining same, and other risks involved in the gold exploration and development industry, as wellas those risk factors discussed in the section entitled “Description of Business-Risk Factors” in Rainy Rivers 2012 Annual Information Form and its otherSEDAR filings from time to time. Forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limitedto, the availability of financing for the Company’s exploration and development activities; the timelines for the Company’s exploration and developmentactivities on the Rainy River Property; the availability of certain consumables and services; assumptions made in mineral resource estimates, includinggeological interpretation grade, recovery rates, gold price assumptions and operational costs; and general business and economic conditions. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. TheCompany undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or futureevents or otherwise, except as may be required by law.This presentation uses the terms “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and“inferred mineral resources”. The Company advises readers that these terms are defined in accordance with Canadian regulations (under National Instrument43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”)). The United States Securities and Exchange Commission does not recognize mineralresources. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted in to reserves. Inaddition, “inferred resources” have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or anypart of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form thebasis of feasibility or pre-feasibility studies, or economic studies, except for a Preliminary Assessment as defined under NI 43-101. Investors are cautioned notto assume that part or all of an inferred resource exists, or is economically or legally mineable.For additional information with respect to the key assumptions, parameters, risks and other technical information underlying to the mineral resource estimatesand the preliminary economic assessment discussed in this presentation, refer to: (i) the press release dated October 10, 2012 with respect to the mineralresource estimates, available at www.sedar.com; (ii) the press release dated April 10, 2013”, with respect to the feasibility study,, available at www.sedar.com;and (iii) the technical report entitled “NI 43-101 Feasibility Study of the Rainy River Gold Property, Ontario, Canada”, with respect to the feasibility study, whichwill be available on www.sedar.com.© 2013 RAINY RIVER RESOURCES LTD. 2
  3. 3. Rainy River Resources Ltd. TSX: RRRainy River Gold Project Capital Profile• 4.0 million ounces in reserves • Shares*, M, Basic 99.9• Intermediate production profile M, Fully diluted 109.8• Low cash costs • Cash*, C$M $102• Low infrastructure costs • Market Cap, C$M $270• Proven Management team • Covered by 9 Analysts• Excellent exploration upside• Strong financial position As at Dec 31, 2012. © 2013 RAINY RIVER RESOURCES LTD. 3
  4. 4. Located in Mining Friendly Ontario, Canada TSX: RRHalf of the 12 recently announced junior gold acquisitions were for projects located in Canada, a safe, mining-friendly jurisdiction. Rainy River Gold Project© 2013 RAINY RIVER RESOURCES LTD. 4
  5. 5. Why Rainy River? TSX: RR•HIGH QUALITY, LOW RISK PROJECT •4 million ounces of Proven and Probable gold reserves •Low “all-in” costs of $7711,2 per ounce gold •Low cash costs of US$4681 per ounce gold •Milled grade of 1.46 g/t1 gold •Location, location, location•UNREALIZED DISTRICT POTENTIAL •New discovery, Intrepid Zone, with potential for near-term cash flow •Further potential for discovery along 6km trend•PROVEN MANAGEMENT TEAM •Team has financed and built mines around the world•STRONG FINANCIAL POSITION •$102 M as of Dec 31, 2012 CURRENTLY TRADING AT 0.3x NAV 1. First 10 years. 2. Includes depreciation of pre-production and sustaining capital costs.© 2013 RAINY RIVER RESOURCES LTD. 5
  6. 6. RRGP Feasibility Study Highlights, April 2013 TSX: RR AN INTERMEDIATE PRODUCER WITH LOW CASH COSTS AND 4.0 MOZ IN RESERVESOpen Pit Reserve: 70.1 Mt @ 1.34 g/t gold, 3.07 g/t silver Stockpile: 43.1 Mt @ 0.37 g/t gold, 1.97 g/t silver = 3.5 Moz gold and 9.6 Moz silverUnderground Reserve 3.1 Mt @ 5.07 g/t gold, 6.69 g/t silver = 0.51 Moz gold and 0.67 Moz silverProcessing Rate 20-21 ktpd open pit, 1 ktpd undergroundMill head grade: 1.46 g/t gold, 3.19 g/t silver (first 10 years)Strip ratio (waste/ore): 3.1:1*. Operating 2.8:1***Excludes overburden material. **Excludes overburden and capitalized waste.Recoveries: 90.4% (gold), 64.1% (silver)Annual Production: 326 koz (gold), 494 koz silver (first 10 years)Cash costs: US$468 per ounce gold (first 10 years)“All-in” cash costs***: US$771 per ounce gold (first 10 years) ***includes depreciation of initial and sustaining capital.Initial Capital: C$713 MNPV5% C$931 M, after-taxIRR$1400/oz gold, $25/oz silver 23.7% , after-tax © 2013 RAINY RIVER RESOURCES LTD. 6
  7. 7. RRGP – Robust Project Metrics TSX: RR • At $1400 Au, $25 Ag: NPV5% of $931M, after tax IRR of 23.7% Payback of 3.2 years Free cash flow over $2 B, first 10 yearsGold / Silver $1250 / $25 $1400 / $25 $1600 / $30 $1800 / $35US$ per ozNPV @ 5% - Pre-tax $1.0B $1.3B $1.7B $2.1B - After-tax $0.7B $0.9B $1.2B $1.5BIRR - Pre-tax 23.5% 27.8% 32.8% 37.6% - After-tax 19.9% 23.7% 27.9% 32.1%Annual free cash flow Over 5 years, pre-tax $244M $284M $335M $387M Over 5 years, after-tax $214M $245M $278M $316M © 2013 RAINY RIVER RESOURCES LTD. 7
  8. 8. Production and Cash Flow Profile TSX: RR Average Annual Production: 326,000 ounces gold, 494,000 ounces silver = 335,000 gold-equivalent ounces $2.0B 450 2,000,000 $1.6BPRODUCTION (koz gold-equivalent) Cumulative Free Cash Flow (C$000) 400 1,500,000 350 300 1,000,000 250 500,000 200 150 0 100 -500,000 50 0 -1,000,000 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 YEAR Silver in GEO Underground Sustaining Capital Gold Open Pit Development Open Pit: $322 M Cumulative FCF C$000 (US$1400/oz gold, US$25/oz silver) Preproduction ($68M) Underground: $95 M Cumulative FCF C$000 (US$1600/oz gold, US$30/oz silver) ($713M) Notes: “GEO” = gold equivalent ounces. Cumulative FCF is after-tax © 2013 RAINY RIVER RESOURCES LTD. 8
  9. 9. The Rainy River Gold Project (RRGP) TSX: RR• High quality, low risk project • Proven Management Team• “Unrealized District Potential” • Strong Financial Position3D View Looking North © 2013 RAINY RIVER RESOURCES LTD. 9
  10. 10. Pit Design for Elevated Grade TSX: RR overburden FS Pit Design Resource Pit© 2013 RAINY RIVER RESOURCES LTD. 10
  11. 11. TSX: RRProject Infrastructure:• Power, rail within 25 km.• Year round access. © 2013 RAINY RIVER RESOURCES LTD. 11
  12. 12. TSX: RR© 2013 RAINY RIVER RESOURCES LTD. 12
  13. 13. Site Topography TSX: RR© 2013 RAINY RIVER RESOURCES LTD. 13
  14. 14. Mine Environmental Assessment & Permitting TSX: RR May 2012 – Document Submissions Provincial: Draft Terms of Reference Federal: Project Description 1H/2013 Mine Environmental Assessment Report to Agencies 1H/2014 Ontario and Federal Ministers Decision 2H/2015 Operating Permits and Approvals© 2013 RAINY RIVER RESOURCES LTD. 14
  15. 15. Community and Environment TSX: RREnvironmental Risk Mitigation • No fish bearing lakes • Design with no-effect discharge • Plan for encapsulation of potentially acid-generating rock • Submerged tailings closure design (standard Canadian procedure) • Private landCommunity Engagement: Completed to-date  Participation Agreement (PA) with Fort Frances Chiefs Secretariat  Memorandum of Understanding (MOU) with Big Grassy First Nations  Setup Advisory Committee under PA to: • Maintain consultation • Facilitate communication and understanding of the EA process • Potential effects and inclusion of Traditional Knowledge © 2013 RAINY RIVER RESOURCES LTD. 15
  16. 16. Project Timeline: Focus on De-Risking TSX: RR Feasibility Study April 2013• Environmental Assessment Q3-2013• Environmental Approvals Q3-2014• Commence Construction Q3-2014• Production Q3-2016• Intrepid Resource Q3-2013• Intrepid Scoping Q4-2013© 2013 RAINY RIVER RESOURCES LTD. 16
  17. 17. Making the Grade - Comparison to Peer Projects TSX: RR Highest Grade M&I Resources of 8 Canadian Bulk Tonnage Gold Deposits 1.40 (at a 0.30 g/t gold-equivalent cut-off) 1.20M&I Resource Grade - g/t gold 1.00 0.80 0.60 0.40 0.20 0.00 RRGP (Rainy Malartic Borden Cote Magino Detour Lake Blackwater Hammond River) (Osisko) (Probe) (Iamgold) (Argonaut) (Detour) (New Gold) Reef (Osisko) Note: Borden at 0.50 g/t cut-off Blackwater at a 0.40 g/t cut-off Malartic at a 0.32 g/t cut-off © 2013 RAINY RIVER RESOURCES LTD. 17
  18. 18. RRGP Stands Out Amongst Its Peers TSX: RR RRGP Malartic Detour Blackwater Cote (years 1-10)Head grade, g/t 1.46 0.97 0.96 0.86 0.85Tonnes per day, 21,000 60,000 58,000 60,000 52,000milledAverageounces gold 326,000 541,000 597,000 523,000 481,000per yearStart-Up Year 2016 2011 2013 2017 2017Initial Capex $713 $839 $1,733 $1,815 $1,696Sustaining $484* $709 $1,206 $537 $725CapexCash cost, $468 $679 $775 $599 $729US$/oz goldAll-in** cost, $771 $957 $1,178 $1,205 $1,189US$/oz gold Comparison data courtesy of BMO Capital Markets. *Includes underground development and sustaining capital, in addition to open pit sustaining capital. **“All –in” costs include pre-production, development and sustaining capital costs, as well as cash costs (including royalties and site G&A, and net of silver credits) © 2013 RAINY RIVER RESOURCES LTD. 18
  19. 19. RRGP - An Undervalued Story TSX: RRRR NAV, Base Case =$931 M (RRGP NAV) + $102 M (Cash) =$1033 M Value Gap =$763 MCurrent Market Cap =$ 270 MPrice / NAV = 0.26xYet to come: Intrepid Zone Regional Exploration WHAT IS THE TRUE VALUE GAP?© 2013 RAINY RIVER RESOURCES LTD. 19
  20. 20. District Potential for Growth TSX: RR © 2013 RAINY RIVER RESOURCES LTD. 20
  21. 21. TSX: RR NR121256: 1.1 & 5.1 / 9.0 NR121256: 1.9 & 7.5 / 3.8 NR121256: 34.8 & 6.9 / 1.5 NR121256: 1.2 & 6.7 / 10.5Deposit Cross Section © 2013 RAINY RIVER RESOURCES LTD. 21
  22. 22. TSX: RRVertical Longitudinal Section © 2013 RAINY RIVER RESOURCES LTD. 22
  23. 23. Pit Outline and Ramp Design: Intrepid Conveniently Located TSX: RR 3D View Looking North © 2013 RAINY RIVER RESOURCES LTD. 23
  24. 24. TSX: RR 24© 2013 RAINY RIVER RESOURCES LTD.
  25. 25. TSX: RR© 2013 RAINY RIVER RESOURCES LTD. 25
  26. 26. TSX: RR© 2013 RAINY RIVER RESOURCES LTD. 26
  27. 27. TSX: RR© 2013 RAINY RIVER RESOURCES LTD. 27
  28. 28. TSX: RR Composite of Drill Holes© 2013 RAINY RIVER RESOURCES LTD. 28
  29. 29. The Rainy River Gold Project (RRGP) TSX: RR• High quality, low risk project • Proven Management Team• “Unrealized District Potential” • Strong Financial Position3D View Looking North © 2013 RAINY RIVER RESOURCES LTD. 29
  30. 30. TSX: RR QUESTIONS?© 2013 RAINY RIVER RESOURCES LTD. 30
  31. 31. Strong Capital Structure and Institutional Support TSX: RRBasic Shares Outstanding 99.9 millionFD Shares Outstanding 109.8 millionCash and Equivalents (Dec 31, 2012) C$102 millionDebt C$0Market Value Basic (based on $2.70 share price) C$270 millionEnterprise Value (based on $2.70 share price) C$168 millionRated by 9 Analysts 6 “buys”, 3 “holds” 60% InstitutionalOwnership 37% Retail 3% ManagementSignificant Institutional Shareholder Base Top 5 own ~30%Ticker Symbol RR on the TSX Main Board© 2013 RAINY RIVER RESOURCES LTD. 31
  32. 32. History TSX: RR The Rainy River Gold Project has attracted exploration interest since 1967. Various companies including Noranda, International Nickel Corporation of Canada, Hudson’s Bay Exploration and Development and Mingold Resources operated in the area centred on the Rainy River Gold Project between 1967 and 1989. The Ontario Geological Survey undertook geological mapping in 1971 and again in 1987 to 1988 in conjunction with a rotasonic overburden drilling program. Nuinsco Resources Limited undertook exploration activities between 1990 and 2004, with Rainy River continuing from 2005 onwards. Nuinsco drilled a series of widely spaced reverse circulation drill holes from 1994 to 1998, defining a fifteen kilometre long “gold-grains-in- till” dispersal train emanating from a thickly overburden-covered, six square kilometre “gold-in-bedrock” anomaly. Nuinsco completed a series of diamond drill programs to assess the mineral potential of the above anomalies which led to the initial discovery of the 17 Zone in 1994. Nuinsco subsequently discovered the 34 Zone in 1995 and 433 Zone in 1997. Between 1994 and 1998, Nuinsco drilled 597 reverse circulation holes and 217 diamond drill holes (49,515 metres). These were mostly in the Richardson area. The 34 Zone was further drill tested between 1999 and 2004. In June 2005, Rainy River completed the acquisition of a 100 percent interest in the project from Nuinsco. In the same year, Rainy River relogged key sections of the historical core drilled on the property and then input all of the data into a GIS database. Rainy River subsequently drilled in excess of 100 reverse circulation holes in three phases to better define the gold-in-till and gold-in- bedrock” anomalies. Between 2005 and 2007, 209 diamond drill holes for 95,340 metres were drilled. In April 2008, a mineral resource estimate was completed by CCIC. In 2009, SRK prepared a mineral resource statement incorporating information from an additional 112 core boreholes (59,719 metres) drilled during 2008. In early 2010, SRK prepared a revised mineral resource statement to incorporate information from 124 core boreholes (68,453 metres) drilled on the project during 2009. In early 2011, SRK updated the mineral resource statement to incorporate information from 163 core boreholes (84,648 metres) drilled on the project during 2010. A further 17,100 metres were included in the June 29, 2011 resource statement, with a further 170,000 metres incorporated in the February 24, 2012 statement. On October 10, 2012, the latest resource update was issued, incorporating 145 more drill holes (79,238 metres).© 2013 RAINY RIVER RESOURCES LTD. 32
  33. 33. Geology TSX: RRRegional and Local Geology The Rainy River Gold Project falls within the 2.7 billion year Rainy River Greenstone Belt that forms part of the Wabigoon Subprovince. The Wabigoon Subprovince is a 900 kilometre long east-west trending area of komaiitic to calc-alkaline metavolcanics that are in turn succeeded by clastics and chemical sediments. Granitoid batholiths have intruded into these rocks, forming synformal structures in the supracrustals that often have shear zones along their axial planes. The Wabigoon Subprovince basement lithologies were overlain by Mesozoic (Jurassic and Cretaceous) sediments and were subjected to deep lateritic weathering followed by Quaternary glaciation. Limited preservation of the Mesozoic cover sediments and saprolite occurs in localized palaeo-lows. The Wabigoon basement rocks and remnant Mesozoic cover sediments are overlain by Labradorian till of northeastern provenance. This till has been found to contain anomalous concentrations of gold grains, auriferous pyrite and copper-zinc sulphides. It is overlain by a glaciolacustrine clay and silt horizon and by argillaceous and calcareous Keewatin till of western provenance. The Rainy River Gold Project is primarily underlain by a series of tholeiitic mafic rocks that are structurally overlain by calc-alkalic intermediate to felsic metavolcanic rocks. Intermediate rocks (dacites) host most of the gold mineralization. At a regional scale, the strongest and earliest deformation event produced a well-defined penetrative fabric. This foliation is approximately parallel to the trend of the metavolcanic rocks that strike at approximately 120 degrees and dip fifty to seventy degrees to the south. Structural geology studies by SRK suggest that the current geometry and plunge of the gold mineralization is the result of high strain deforming features associated with gold mineralization and rotating the mineralization plunge parallel to the stretching direction.Deposit Types and Mineralization At least two stages of gold mineralization exists in the Rainy River Gold Project: Early (low to moderate grade) gold mineralization associated with sulphide (pyrite-sphaleritechalcopyrite-galena) stringers and veins and disseminated pyrite in quartz-phyric volcaniclastic rocks and conglomerate; and Late (high-grade) gold mineralization associated with quartz-pyrite-chalcopyrite-gold veins and veinlets. Both styles of gold mineralization have been progressively overprinted by deformation, The gold mineralization is interpreted as a hybrid deposit type consisting of an early gold-rich volcanogenic sulphide mineralization overprinted by shear-hosted mesothermal gold mineralization. In addition to the gold mineralization, the project also contains nickel, copper and platinum group metals sulphide mineralization associated with a differentiated ultramafic-mafic intrusion. That magmatic-hydrothermal mineralization occurs within the main auriferous zones and crosscuts the volcanogenic sulphide mineralization and the later mesothermal gold mineralization associated with the regional deformation.© 2013 RAINY RIVER RESOURCES LTD. 33
  34. 34. Rainy River Resource: Organic Growth in Gold October 2012 based on drill data as of June 10: 657,500 metres 1,424 diamond drill holes TSX: RRQualified Persons – The mineral resource statement was prepared by Dorota El-Rassi, P.Eng. (APEO #100012348) and Glen Cole, P.Geo (APGO #1416), of SRK, both “independent qualified persons” as that term is defined inNational Instrument 43-101. Rainy River’s exploration program in Richardson Township is being supervised by Kerry Sparkes, P.Geo (APEGBC #25261), Vice-President Exploration and a Qualified Person as defined by NationalInstrument 43-101. The Company continues to implement a rigorous QA/QC program to ensure best practices in sampling and analysis of drill core. The procedures of the QA/QC program are detailed on Rainy River’s websiteat www.rainyriverresources.com. © 2013 RAINY RIVER RESOURCES LTD. 34
  35. 35. Rainy River Resource: Organic Growth in Silver October 2012 based on drill data as of June 10: 657,500 metres 1,424 diamond drill holes TSX: RRQualified Persons – The mineral resource statement was prepared by Dorota El-Rassi, P.Eng. (APEO #100012348) and Glen Cole, P.Geo (APGO #1416), of SRK, both “independent qualified persons” as that term is defined inNational Instrument 43-101. Rainy River’s exploration program in Richardson Township is being supervised by Kerry Sparkes, P.Geo (APEGBC #25261), Vice-President Exploration and a Qualified Person as defined by NationalInstrument 43-101. The Company continues to implement a rigorous QA/QC program to ensure best practices in sampling and analysis of drill core. The procedures of the QA/QC program are detailed on Rainy River’s websiteat www.rainyriverresources.com. © 2013 RAINY RIVER RESOURCES LTD. 35
  36. 36. Feasibility Study Assumptions TSX: RRGold Price $1,400 USD/ozSilver Price $25 USD/oz 1.00 CAD: 1.00 USD (Initial)Exchange rate 1.07 CAD: 1.00 USD (Operations)Discount rate 5%Mine Equipment Lease 4.5% over 8 yearsGold Recovery 90.4% (variable by grade)Silver Recovery 64.1% (variable by grade)Open Pit Production 21,000 tpd, scaling down to 20,000 tpdUnderground Production 1,000 tpdProcess Plant Capacity 21,000 tpdMine Life 16 years© 2013 RAINY RIVER RESOURCES LTD. 36
  37. 37. RRGP – Reserves (April 10, 2013) TSX: RRMineral Reserves, Rainy River Gold Project, BBA and Golder, April 10, 2013 Quantity Grade Metal Mt Au gpt Ag gpt Au ‘000 oz Ag ‘000 ozOpen Pit* Proven 27.7 1.14 1.94 1,015 1,728 Probable 85.5 0.91 2.88 2.511 7,919 Total 113.2 0.97 2.65 3.525 9,647Underground* Proven Probable 3.1 5.07 6.69 506 668 Total 3.1 5.07 6.69 506 668Combined Mining* Proven 27.7 1.14 1.94 1,015 1,728 Probable 88.6 1.06 3.01 3,017 8,587 Total 116.3 1.08 2.76 4,031 10,315*Open Pit Reserves have been estimated using a cut-off grade of 0.30 g/t gold-equivalent, and Underground Reserves have been estimated using a cut-off grade of 3.5 g/t gold-equivalent. Open Pit Reserveshave been estimated using a dilution of 9.7% at 0.22 g/t Au and 1.31 g/t Ag, and Underground Reserves have been estimated using a CAF dilution of 9% at 0.61 g/t Au and 4.16 g/t Ag and LH dilution of 10% at1.56 gpt Au and 1.28 gpt Ag. Open Pit Reserves have been estimated using a mine recovery of 95%, and Underground reserves have been estimated using a mine recovery of 95%.Qualified persons - The mineral reserve statement was prepared by Patrice Live (OIQ #38991) of BBA and Donald Tolfree (APEGBC #32557), of Golder , both "independent qualified persons" as that term isdefined in National Instrument 43-101. Rainy Rivers engineering assessment in Richardson Township is being supervised by Garett Macdonald, P.Eng. (PEO #90475344), Vice-President Operations and aQualified Person as defined by National Instrument 43-101.Reserves are derived from the October 10. 2012 Resource Statement, prepared by Dorota El-Rassi, P.Eng. (APEO #100012348) and Glen Cole, P.Geo (APGO #1416), of SRK, both "independent qualifiedpersons" as that term is defined in National Instrument 43-101. Rainy River’s exploration program in Richardson Township is being supervised by Kerry Sparkes, P.Geo. (APEGBC #25261), Vice-PresidentExploration and a Qualified Person as defined by National Instrument 43-101. The Company continues to implement a rigorous QA/QC program to ensure best practices in sampling and analysis of drill core. © 2013 RAINY RIVER RESOURCES LTD. 37
  38. 38. Operations Overview TSX: RR Project Profile • Process SAG Mill, Ball Mill, Gravity, Whole Ore Leach • Recoveries, LOM 90.4% for Au, 64.1% for Ag • Production Open Pit • Open pit reserve 70.1 Mt @ 1.34 g/t Au, 3.07 g/t Ag • Stockpile 43 Mt @ 0.37 g/t Au, 1.97 g/t Ag • Mill Throughput 20 ktpd • Strip ratio 3.1:1*. Operating strip ratio 2.8:1** *Excludes overburden material. **Excludes overburden and capitalized waste. • Open pit mine life 16 years • Capex Initial C$713 M • Sustaining C$322 M, includes tailings, waste, overburden, equipment • Mine cost C$1.95/t mined Underground • Underground reserve 3.1 Mt @ 5.07 g/t gold, 6.69 g/t silver • Mill throughput 500 tpd in Year 3, ramping up to 1,000 tpd in Year 5 • Underground mine life 11 years • Capex Development C$67.8 M, Years 1-3 Sustaining C$94.6 M, Years 6-10 • Mine Cost C$75.52/t mined • Processing C$8.65/t milled • G&A C$1.21/t© 2013 RAINY RIVER RESOURCES LTD. 38
  39. 39. Mine Design TSX: RROpen Pit Design Underground Design• 70.1 Mt @ 1.34 g/t Au, 3.07 Ag • 3.1 Mt @ 5.07 g/t Au, 6.69 g/t Ag• Stockpile: 43 Mt @ 0.37 g/t Au, 1.97 g/t Ag • Production:• Production: • 0.46 Moz Au, 0.43 Moz Ag • 3.19 Moz Au, 6.19 Moz Ag • Method: Long Hole (80%), Cut and Fill (20%)• 2.8 operating strip ratio • 1,000 tpd to mill• 21,000 tpd to mill • 11 year mine life including development• 16 year mine life, including stockpile 3D View Looking North © 2013 RAINY RIVER RESOURCES LTD. 39
  40. 40. Process Plant Design - Flowsheet TSX: RR PROCESS GYRATORY PRE-LEACH WATER CRUSHER THICKENER TANK CYCLONES SAG MILL SCALPING SCREEN PEBBLE CRUSHER BALL MILL CYANIDE LEACH PUMP BOX & PUMP CARBON-IN- GRAVITY PULP CONCENTRATORS PROCESS PRE-DETOX WATER CARBON STRIPPING THICKENER TANK ELECTRO INTENSIVE WINNING CYANIDATION REACTOR CYANIDE DESTRUCTION TAILINGS POND DORÉ BAR REFINING ELECTRO WINNING© 2013 RAINY RIVER RESOURCES LTD. 40
  41. 41. Project Capital: Open Pit Components TSX: RR Pre-Production Capital: $713M 6% Waste Stripping $41.9M6% Tailings and Water Management $44.9M 4% Equipment $26.2M6% Overburden Stripping 40% Process Plant $283.7M $43.1M8% Contingency $55.0M15% Site and Mine Infrastructure $105.7M 16% Indirect Costs $112.8M Sustaining Capital: $322 M 7% Tailings Dam 1% Site Development, Facilities, net Construction $23.6M $3.4M 50% Equipment Capital Lease 19% Waste Stripping $161.5M Costs $62.7M 22% Overburden Stripping Cost $70.7M © 2013 RAINY RIVER RESOURCES LTD. 41
  42. 42. Project Capital: Underground Components TSX: RRDevelopment Capital: $68 M 76% Mining Equipment and Infrastructure $16.1M 24% Vertical & Horizontal Development $51.7MSustaining Capital: $95 M 41% Mining Equipment and Infrastructure $38.7M 59% Vertical Development $55.9M© 2013 RAINY RIVER RESOURCES LTD. 42
  43. 43. Consultants and Contractors TSX: RR• Engineering and Procurement – BBA • Osisko, Detour, Thompson Creek• Construction Management – Merit Consulting • Copper Mountain, Goldcorp Red Lake• Permitting & Environmental – AMEC • Detour Lake (Detour), Victor (De Beers), Hollinger (Goldcorp)• Resources – SRK • Fresnillo, Agnico Eagle, Queenston/Osisko• Resources – SGS • Barrick, Teck, Goldcorp, Agnico Eagle• UG Mine Planning – Golder Associates • Mercedes (Yamana), Kiggavik (AREVA)• Energy Consulting – SanZoe • Detour Lake (Detour)• Road Consulting – TBT Engineering • MTO© 2013 RAINY RIVER RESOURCES LTD. 43
  44. 44. Proven Management Team TSX: RRRaymond Threlkeld, President & CEO Nicholas Nikolakakis, Vice President & CFO• Over 30 years experience in exploration, mine development, • 17 years experience in corporate finance, accounting mine operations and executive management and senior management• Former President & CEO of Western Goldfields • Former VP Finance with Barrick Gold Corporation, Regional CFO with Placer Dome, and investment banker with• Former Vice President, Project Development with Barrick BMO Nesbitt Burns Gold Corp.Michael Mutchler, COO Garett Macdonald, Vice President, Operations• 30 years of underground and open pit mining experience • P. Eng and MBA with over 15 years experience in mine in both operations and projects. engineering and operations with Placer Dome and Suncor Energy• Former Kinross VP, Project Development Services, Project Manager - Paracatu Mine Optimization feasibility study in Brazil, Mining Manager - Cerro Casale Mine feasibility study Kerry Sparkes, Vice President, Exploration in Chile, and Operations Manager - Round Mountain Mine in Nevada. • P. Geo with over 22 years experience• 20 years with ASARCO Incorporated in positions of increasing • Instrumental in the discovery and delineation of the Voisey’s responsibility ranging from Mine Engineer, Mine Foreman, Bay nickel deposit Mine Manager and General Manager.Kyle Stanfield, VP, Environment & Sustainability Gerry Shields, Vice President and General Counsel• 15+ years environmental assessment and mine permitting. • Lawyer with over 30 years of experience in advising both public and private companies on a broad range of legal matters including• Led largest harmonized mining environmental assessment in B.C. equity financings, mergers and acquisitions, takeovers, corporate (Galore Creek). governance and general corporate and securities law• Environmental Engineer with Placer Dome: Africa, South America and Canada© 2013 RAINY RIVER RESOURCES LTD. 44
  45. 45. Board Expertise: Projects,Finance, Governance TSX: RRLeo Berezan, Chairman of the Board Richard Pettit, Independent Director• Established a successful career over past 30 years • C.A. in commercial real estate development and property • Over 30 years of experience as a C.A., mainly with management PricewaterhouseCoopers where he was a senior partner• Audit Committee member of their Corporate Advisory and Restructuring practice • Brings strong financial literacy as well as analytical and risk management skills to the Rainy BoardDale Peniuk, Independent Director & Audit • Audit Committee memberCommittee Chair• B.Comm and C.A.• Provides financial consulting services to a number of Jim Excell, Independent Director mining companies • Metallurgical Engineer with extensive senior executive,• Formerly an assurance partner with KMPG’s Vancouver office, mine management and process engineering experience specializing in the mining area and the leader of KPMG’s • Over 30 years with BHP Billiton, responsible for overseeing Vancouver office mining industry group the management and development of some of the world’s premier mining projects including the EKATI diamond mine in the Northwest Territories.Stuart Averill, Independent Director• P.Geo and founder and owner of Overburden Drilling Raymond Threlkeld, Director Management (ODM)• Played critical roles in the several discoveries in Canada including the Collins Bay “B” uranium mine (SK), the Casa Gerry Shields, Director Berardi gold district (QC) and the original #17 and #433 gold discoveries at Rainy River© 2013 RAINY RIVER RESOURCES LTD. 45
  46. 46. Analyst Coverage TSX: RR Analyst Company Email Telephone John Hayes BMO Capital Markets johnp.hayes@bmo.com 416.359.6189 Eric Winmill Casimir Capital Ltd. ewinmill@casimircapital.ca 416.628.3772 Jeff Killeen CIBC World Markets jeff.killeen@cibc.ca 416.956.6218 Adam Melnyk Desjardins Securities Inc. adam.melnyk@vmd.desjardins.com 416.607.3081 Paolo Lostritto National Bank Financial paolo.lostritto@nbfinancial.com 416.869.6754 Don Blyth Paradigm Capital dblyth@paradigmcap.com 416.360.3461 Sam Crittenden RBC Capital Markets sam.crittenden@rbccm.com 416.842.7886 Leily Omoumi Scotia Capital Inc. leily.omoumi@scotiabank.com 416.945.4527 Craig Stanley Stifel Nicolaus Canada stanleyc@stifel.com 416.815.3103 Rainy River Resources Ltd. is followed by the research analysts listed. Please note that any opinions, estimates, or forecasts regarding Rainy River’s performance made by these analysts are theirs alone and do not represent opinions, forecasts, or predictions of Rainy River or its management. Rainy River does not, by its reference below or distribution, imply its endorsement of, or concurrence with, such information, conclusions, or recommendations. Rainy River does not provide analyst reports to persons outside of the company. Please contact the research analyst directly to obtain a report.© 2013 RAINY RIVER RESOURCES LTD. 46
  47. 47. DEFINING CANADA’S NEWEST GOLD DISTRICT Indi Gopinathan, Director, Investor Relations TSX: RR Telephone: 416.645.7289 Email: igopinathan@rainyriverresources.com© 2013 RAINY RIVER RESOURCES LTD.
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