Analyst Workshop
April 3, 2014
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This presentation may contain “forward-looking” statements within the meaning of Canadian securities ...
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Agenda
1. Corporate Overview
Joseph Conway, President & C.E.O.
2. Corporate Responsibility
Jim Mallor...
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David Sandison
VP, Corporate Development
Gabriel Voicu
VP, Geology and Exploration
Tamara Brown
VP, I...
Corporate Overview
Joseph Conway, President & C.E.O.
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Vision and Values
VISION
To be the most respected precious metals producer in the
Americas, admired f...
TSX:P I NYSE:PPP I 7How we are building value in Primero
Our Strategic Focus
1. Strong balance sheet
2. Measured growth
3....
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$111M
STRONG Cash Balance
$150M3,4
SIGNIFICANT Operating Cash Flow
Strong Balance Sheet
See final sli...
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-
50
100
150
200
250
2011 2012 2013 2014E
Black Fox San Dimas
PRODUCTION1,4
(thousand AuEq ounces)
10...
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505
660
300
800
1,300
1,800
2,300
2011 2012 2013E* 2014E*
Black Fox
Cerro del Gallo
San Dimas
GOLD R...
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$58
$81
$139
$111
0
20
40
60
80
100
120
140
31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13
Measured Growth
...
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Disciplined Cost Management
Below industry average costs
$640
$636
$599
550
600
650
2011 2012 2013
R...
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Builds on Established Presence in Mexico
San Dimas Mine
(AT DECEMBER 31, 2013, MINERAL RESOURCES
INC...
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Pipeline of Assets Drives Organic Growth
Production
Construction
Exploration
Development
San Dimas
B...
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Responsible Mining
Focused on Responsible Mining
HEALTH AND SAFETY
o We understand that our most imp...
TSX:P I NYSE:PPP I 16How we are building value in Primero
See final slide for footnotes.
2014 Guidance
Black Fox San Dimas...
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111
143
160 165 165
75
120 120
95
2012 2013 2014E 2015E 2016E
Cerro del Gallo Black Fox San Dimas
Ho...
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2014 Deliverables
Operational Performance
o Produce or exceed 225,000-245,000 AuEq oz at below $700/...
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Investment Opportunity
Producing, profitable and growing
o Mid-tier gold producer
o Portfolio of lon...
Corporate Responsibility
Jim Mallory, V.P. Corporate Responsibility
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Focused on Corporate Responsibility
HEALTH AND SAFETY
o Sound management system and risk prevention ...
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SAN DIMAS & BLACK FOX
Workforce
1247
73
Employees Contractors
73
553
528
166
Contractors
Salaried
Lo...
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78%
7%
9%4%2%
100% National Workforce
Durango Guanajuato Sinaloa
Zacatecas Other
SAN DIMAS
Regional ...
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SAN DIMAS
Safety Performance
7.08
5.7
3.23
2.14 1.96 1.84 1.5 1.12
0
2
4
6
8
2006 2007 2008 2009 201...
TSX:P I NYSE:PPP I 25Clean Industry Accreditation (a voluntary initiative)
Regular monitoring of:
o Air/water/soil/noise
o...
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SAN DIMAS
Community Ejido Agreements
Temporary Occupation and/or
Right-of-way Agreements
3,306 Hecta...
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Impact Benefits Agreement (IBA) in place since June 2011
The Black Fox mine has a long relationship ...
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HEALTH
EDUCATION
COMMUNITY&
SOCIAL
DEVELOPMENT
INFRASTRUCTURE
HEALTH
EDUCATION
HEALTH AND TRAINING
H...
TSX:P I NYSE:PPP I 29Best Practice in Education & Employment
HEALTH
EDUCATION
COMMUNITY&
SOCIAL
DEVELOPMENT
COMMITMENT TO ...
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HEALTH
EDUCATION
COMMUNITY&
SOCIAL
DEVELOPMENT
COMMITMENT TO THE
COMMUNITY AND ITS DEVELOPMENT
SOCIA...
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“Grandes Familias 2013”
o Monthly recreational & cultural programs for
employee‘s families.
• Profes...
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Presented by:
Ministry of Public Education & Ministry of Labor
3rd Consecutive year
• Business Ethic...
Financial Overview
David Blaiklock, C.F.O.
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Finance Priorities
o Maintain strong balance sheet and liquidity position to fulfill
strategic objec...
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$111M
STRONG Cash Balance
$150M3,4
SIGNIFICANT Operating Cash Flow
Strong Balance Sheet
Growth plans...
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Strong Liquidity Available
Cash & Cash Equivalents
(as of December 31, 2013 less Brigus
senior note ...
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2014 Guidance Assumptions
Assumptions
o Average gold price of $1,200 per ounce;
o Average silver pri...
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See final slide for footnotes.
Low All-in Sustaining Costs
Below industry average costs
All-In Susta...
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2014 Total Estimated Capital Expenditures
Capital Expenditures Estimated 2014
San Dimas Underground ...
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2014 Total Exploration Expenditures
Capitalized Exploration Expenditures Meters Cost (US$ millions)
...
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48%
32%
11%
9%
San Dimas
Black Fox
Cerro del Gallo
Grey Fox
$115M
2014 Total Capital & Exploration E...
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Depreciation and Depletion
o Policy – deplete mining properties using units-of-production basis over...
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Mexican Tax Reforms
o Impact on Primero is an effective tax rate increase from 29% to ~40%
o 7.5% ro...
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Brigus Tax Position
o Federal tax rate at 25% and Ontario Mining Tax (“OMT”) at 8.5%
o At YE 2013 Br...
San Dimas
Renaud Adams, C.O.O.
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Mexico is a Low Risk Mining Jurisdiction
Cerro Del Gallo Project
Gold-Silver-Copper Development Proj...
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47
o 24,825 hectare land package
o Over 120 known veins in the
district
o Thickness of veins varies ...
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SAN DIMAS
Site Aerial View
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Location Durango-Sinaloa State Border
Ownership 100%
Metals Gold & Silver
Mining Underground cut and...
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Central Block Discovery
(Roberta, Robertita & Santa Lucía veins)
Acquisition of Luismin by Wheaton R...
San Dimas Operations
Renaud Adams, C.O.O.
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Crushing AreaUnderground Mine
Cut & Fill and Long-Hole
Grinding Section
Dore
Bars
Precipitation
& Sm...
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Cut and Fill (Jumbo and Jack-Leg) Long-Hole
SAN DIMAS
Mining Methods
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54
Jumbo Drill Rig
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Jackleg Drill
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Long Hole Drill
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PREGNANT SOLUTION
34
BALL MILL 12’x14’ NO. 2
Industrial Water
Pregnant Solution
Precipitate
Zinc
Pul...
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SAN DIMAS
2014 Mine Plan
Area
2014 Tonnes Dist.
(%)
2014 oz Au Dist.
(%)
Reserves oz Au
Dist. (%)
Ce...
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• Adding an additional long hole drill in 2014.
• Optimization to minimize long hole drill downtime....
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Q1 2014
Q2 2014
Q3 2014
Q4 2014
100m
Mining Contribution % 19
Tonnes Mined kt 170
Au Grade g/t 3.60
...
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Q1 2014
Q2 2014
Q3 2014
Q4 2014
100m
Mining Contribution % 22
Tonnes Mined kt 200
Au Grade g/t 5.55
...
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Q1 2014
Q2 2014
Q3 2014
Q4 2014
50m
Mining Contribution % 14
Tonnes Mined kt 130
Au Grade g/t 5.62
A...
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Q1 2014
Q2 2014
Q3 2014
Q4 2014
50m
Mining Contribution % 6
Tonnes Mined kt 53
Au Grade g/t 4.17
Ag ...
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SAN DIMAS
Victoria Highest Grades 18 Months Away
San Dimas Costs & Capex
Renaud Adams, C.O.O.
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60%
40%
Cost by Currency
Mexican Pesos
US Dollars
Cost
49%
51%
Variable
Fixed
Fixed Operating Cost
S...
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$66.30$26.50
$16.30
$2.60
2013 Unit Cost = $112/tonne
Mine Mill G&A Refining
Note: 2013 unit costs p...
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43%
13%
5%
3%
2% 2% 3% 3% 4%
1%
5%
2% 1%
8%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
SAN DIMAS
2...
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27%
22%
29%
22%
Underground Development
Projects
Exploration
Sustaining
$54M
SAN DIMAS
2014 Capital ...
Expansion & Optimization
Renaud Adams, C.O.O.
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o Maximize use of Long Hole mining method: Target 30% of total mining by year-end
o Maximize potenti...
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Long hole Mining Method
Implementation of Long hole Mining
Opportunity to further increase productiv...
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Implementation of State of the Art Mine
Concept and Scheduling Software
Target pro-active decisions ...
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Phase I:
o Optimize ore haulage
o Create internal ore bin
o Create one entry/one exit point
o Create...
TSX:P I NYSE:PPP I 75Tunnel Loop
SAN DIMAS
Phase I: Haulage Optimization Routes
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Potential Conveyor System
SAN DIMAS
Phase II: Mine Conveyor Concept
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Implement Equipment Tracking to Optimize Effective Hours
o Install equipment tracking devices on all...
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o Union has agreed to a 3 month trial of 12 hour shifts in some long-hole mining stopes
o Current sc...
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1,500
2,000
2,500
3,000
2011 2012 2013 2014E 2015E 2016E 2017E
San Dimas Tonnes Per Day
Phase 1 Mill...
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-
1,000
2,000
3,000
2014E 2015E 2016E 2017E
Graben North
Santa Rita
Tayoltita
Sinaloa Graben
Central...
TSX:P I NYSE:PPP I 81Mill Operating at 2,500 TPD
Item Current Capacity 3,000 tpd Target
1. Mine 2,500 tpd
2. Crushing 2,50...
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o Third ball mill, new ore bins/ore feed
system and pumping capacity, has
already increased grinding...
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o Leaching & Reagents: 2,500 TPD achieved by
the addition of extra leaching capacity and
optimizatio...
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84
High Density Tailings Pumped to Filter
o Two Putzmeister tailings pumps with installed
capacity o...
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o Will support mine at 3,000 TPD for over
15 years
o Construction on schedule, 90% complete
o Projec...
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o Las Truchas Power House capacity was 7.3mW
o At 2,500 TPD provided 70% of San Dimas
power
o Grid p...
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o Full Project Scope considers doubling current hydro generation of Las Truchas
and consists of cons...
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o Civil works construction started
o Initial work focused on pads for transformer
relocation
o Deliv...
San Dimas Exploration
Gabriel Voicu, V.P. Exploration
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35°
Upper volcanic group
Piaxtla intrusive
Arana diorite and
intrusive andesite
Lower volcanic group...
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Favorable Horizon
Mineralization – Ore Bodies Extension of the Favorable Horizon
Potential
0 1 2
K I...
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SAN DIMAS
Structural Concept
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0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Initial 2003 200...
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CLASSIFICATION
TONNAGE
(MILLION TONNES)
GOLD GRADE (G/T)
SILVER GRADE
(G/ T)
CONTAINED GOLD
(000 OUN...
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Block Tonnes
Grade (g/t) Ounces Mining Method Dilution
Gold Silver AuEq Gold % Silver Jack Leg Jumbo...
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Our goal is to replace depleted reserves by 100%.
Delineation Objectives:
o Test the continuity of t...
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2
34
1
Ore
Body
Proposed Drilling
Proposed Drilling
Old Hole
Proposed Drilling
Proposed Drilling
Ore...
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o 2014 $15.7 million
exploration program
o 22,500 hectare package
o 80,000 metres of drilling:
 35,...
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San Dimas Drilling Program
Item Meters CapEx
Delineation Drilling 35,000 meters
Mine & Regional
Expl...
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Central Block
1. Robertita
2. Roberta
3. San Enrique
4. Marinas
5. Gloria
6. Soledad-Jael
7. Castel...
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Elev.100 Elev.100
Elev.200Elev.200
Elev.300 Elev.300
Elev.400Elev.400
Elev.500 Elev.500
Elev.600Ele...
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TARGETS ROBERTITA VEINSW NE
700m
600m
500m
400m
300m
700m
600m
500m
400m
300m
ROB13_274
ROB13_276
R...
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Victoria
Orebody
NE
500 msnm
700 msnm
300 msnm
200 m0 100
500 msnm
700 msnm
300 msnm
DDH 2013
DDH 2...
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Elev.400 m Elev.400 m
Elev.800 m
AL13-078
AL13-083
AL13-083
AL13-079
AL13-076
AL13-081
AL13-074
AL1...
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0 1 2km
Tayoltita
Mill
Treviño
Tunnel
Arana
Hanging
Wall Block
Central
Block
Tayoltita
Block
West
B...
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Noche Buena
mine
N
2’671,000 N
398,000E
399,000E
400,000E
401,000E
2’670,000 N
2’671,000 E
2’670,00...
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Sinaloa
Fault
SW
NE
?
1,100 msnm
900 msnm
DDH Pending
Not Significant
Planned
DDH 2013 Significant
...
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2014 VENTANAS DISTRICT PROGRAM
o Not covered by Silver Purchase Agreement
o Ventanas property 3,300...
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"El Alacrán"
Valenciana
"MALA NOCHE"
"VENTANAS"
"LA LIBERTAD"
NORTE
REGIONAL GEOLOGY VENTANAS-MALA ...
Black Fox Mine
Renaud Adams, C.O.O.
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Location Timmins, Ontario
Ownership 100% (8% gold stream at $504/oz)
Metals Gold
Mining Open pit & ...
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BLACK FOX
Proven Prospective District
Destor-Porcupine Fault Strike Length ~200km
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BLACK FOX
Large ~2,000 Hectare Property
40 land parcels and 22 patented mining leases
BLACK FOX MINE
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BLACK FOX
Property Layout
Established Infrastructure
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BLACK FOX
Black Fox Mill
Capacity of 2,200 TPD
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o Our technical team recognized an under-capitalized underground mine
o We have successfully turned...
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MINE
RESERVE/
RESOURCE
DEPTH (m)
SHAFT/
RAMP DEPTH
(m)
RESERVE
GRADE (g/t
Au)
RESOURCE
GRADE (g/t
A...
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BLACK FOX
Black Fox Today
TSX:P I NYSE:PPP I 118
29th April, 2013 News Release
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0.00
1.00
2.00
3.00
4.00
5.00
6.00
0
5,000
10,000
15,000
20,000
25,000
30,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 ...
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Mill Feed Grade
Underground Grade
Open Pit HG Grade
0
2
4
6
8
10
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2E Q3E...
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0
500
1,000
1,500
2,000
2,500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2E Q3E Q4E
2012 2013 2014
Mill Throughput...
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0
500
1,000
1,500
2,000
2,500
3,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2E Q3E Q4E
2012 2013 2014
Dev. metr...
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BLACK FOX
Underground Operating Cost Review
o Unit underground operating costs are higher because o...
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BLACK FOX
Underground Long Hole Proportion
0
50
100
150
200
250
0%
20%
40%
60%
80%
100%
Q1 Q2 Q3 Q4...
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BLACK FOX
Overview
• Health & Safety:
• Health and Safety is #1 – Black Fox currently has over 250 ...
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Challenges:
• Underground development rate dropped off significantly in 2013
• Underground throughp...
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Challenges:
• Water inflows increased in 2013 in Open-Pit Phase 3 West expansion
• 12% increase wat...
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WATER ISSUES
o March 2013
• Water Management Pond (“WMP”) depleted/frozen water (Extreme Cold weath...
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BLACK FOX
Mill Tailings & Water Management Pond (“WMP”)
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Extra space availabl...
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BLACK FOX
Black Fox 2014 Mine Plan
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2014 (k$)
Black Fox
UG Capital Development 7,569
OP Waste Stripping 3,351
Mill, Tailings, and Envir...
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BLACK FOX
Operating Strategy Short Term
o Operate the Open Pit and Underground at a rate of 2,400 t...
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BLACK FOX
Operating Strategy Mid-Term
o Continue ramp development below 520 and 540 level
o Complet...
Black Fox Exploration
Gabriel Voicu, V.P. Exploration
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BLACK FOX
Prolific Abitibi Greenstone Belt
One of the world’s largest Archean greenstone belts
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BLACK FOX
Regional Geology (Hoxha and James, 1998)
Archean age, lode gold deposit
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BLACK FOX
Typical Cross Section
Destor-Porcupine Fault
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BLACK FOX
Black Fox Mine, 147 & Contact Zone Depositional Model
Destor-Porcupine FaultArchean Lode ...
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Contact and 147 Zone Location
(Brittle Deformation Model)
Ross Lake
fault
GREY FOX
Contact and 147 ...
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MINE
RESERVE/
RESOURCE
DEPTH (m)
SHAFT/
RAMP DEPTH
(m)
RESERVE
GRADE (g/t
Au)
RESOURCE
GRADE (g/t
A...
TSX:P I NYSE:PPP I 141
BLACK FOX
2013 Reserves & Resources
1. The average gold grade for Proven and Probable Reserves is a...
TSX:P I NYSE:PPP I 142
o Several areas with high exploration potential: at surface (W and E extensions of
the open pit) an...
TSX:P I NYSE:PPP I 143
• Black Fox Underground
• Drilling : 47,700m = $6,200k
• Exploration 37,700m – 130 holes ($4,900k)
...
TSX:P I NYSE:PPP I 144
Exploration drift
325mL
Barren area due to
intruding dykes
Black Fox dips south
Level 235mL
LEVEL 5...
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o Total Exploration Drifting (2014-15) 800m across
o Total Exploration Drifting Cost $2.5milion
o 2...
TSX:P I NYSE:PPP I 146
Au concentrations, capped
LEVEL 500mL
WEST ZONE
SHALLOW
WEST ZONE
DEEP
CENTRE
ZONE
Indicated + Infe...
TSX:P I NYSE:PPP I 147
Surface West
Surface East
BLACK FOX
Surface Exploration
TSX:P I NYSE:PPP I 148
CERRO DEL GALLO INCREASES PRIMERO’SPRODUCTION BY 60%12
Location 4 km from Black Fox - Timmins, ON
O...
TSX:P I NYSE:PPP I 149
CERRO DEL GALLO INCREASES PRIMERO’SPRODUCTION BY 60%12
GREY FOX
Contact, 147 and Grey Fox South Zon...
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GFS
147
GFS
CZ
N
Potential Underground Only Mining Scenario Resource @ 2.84 gpt Cut-Off
Zone Catego...
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GREY FOX
2014 Exploration Drilling Program
Contact, 147 and Grey Fox South Zone Expansion and Defin...
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o Three areas with high exploration potential: Grey Fox, Old Stock Mine and Pike
River Property (be...
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Known Deposits
Grey Fox 147, Contact and GFS Zones
• Drilling : 61,000m = $8.0M
• Expansion 37,000m...
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CERRO DEL GALLO INCREASES PRIMERO’SPRODUCTION BY 60%12
GREY FOX
Contact, 147 and Grey Fox South Zon...
Cerro del Gallo
Louis Toner, V.P. Projects
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CERRO DEL GALLO INCREASES PRIMERO’SPRODUCTION BY 60%12
Location Guanajuato State
Ownership 100%
Met...
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o Guanajuato is an historic mining
district, with production dating
back to 1558
o Major engineerin...
TSX:P I NYSE:PPP I 158See final slide for footnotes.
Construction decision expected in Q3 2014
TECHNICAL DETAILS
2
(At $1,...
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o Nominal Annual Dry Ore Throughput 4,500,000 t/a
o Total HLP Material: 32.2 million t
 Weathered ...
TSX:P I NYSE:PPP I 160
o Crushing in three stages using a HPGR as a tertiary crusher
o Agglomeration and stacking
o Cyanid...
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o DFS (2012): CAPEX: $165 M, Sustaining: $32M
o Company Target: CAPEX: $150M, Sustaining: $15M
o Co...
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CERRO DEL GALLO
Capital Reduction Opportunities
Potential $20 million in capital savings from:
1. C...
TSX:P I NYSE:PPP I 163
In 2013 Primero initiated a full review of its Cerro del Gallo – Phase 1 project in order to
optimi...
TSX:P I NYSE:PPP I 164
Approximately $7.5 M of the proposed 2014 budget was work not spent and
carried over from 2013, inc...
TSX:P I NYSE:PPP I 165
Cerro del Gallo Expenses
2014
(million)
Permitting, land, water rights, stakeholder relations
and a...
TSX:P I NYSE:PPP I 166
The main objectives of the 2014 Cerro del Gallo capital expenditures are as
follows:
o Permitting: ...
TSX:P I NYSE:PPP I 167
Cross Section 1028NE (Az. 210°)
2331600N
2331800N
2332000N
2332200N
288600E
288700E
288800E
288900E...
TSX:P I NYSE:PPP I 168
CERRO DEL GALLO
Site Layout
TSX:P I NYSE:PPP I 169
169
SITE LAYOUT
TSX:P I NYSE:PPP I 170
CERRO DEL GALLO
1st Stage Heap Leach Flow Sheet
TSX:P I NYSE:PPP I 171
2013 2014 2015 2016
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Basic Engineering
Permitting/Land
Acquisiti...
Cerro del Gallo Exploration
Gabriel Voicu, V.P. Exploration
TSX:P I NYSE:PPP I 173
o The Cerro del Gallo copper-gold-silver deposit can be
considered to be a member of a distinct sub...
TSX:P I NYSE:PPP I 174
Providencia
Limestone
San Antón
Volcaniclastics
Espiritu Santo
Group
LEGEND
Vein
2 Km
Providencia L...
TSX:P I NYSE:PPP I 175
o Grid of 50 m spaced sections oriented 030º/210º
TN and 50 m spaced drill collars with predominant...
TSX:P I NYSE:PPP I 176
176
CERRO DEL GALLO
Resource Model Cont.
TSX:P I NYSE:PPP I 177
Legend
Au Domain
Cu Domain
Felsic intrusive
contour
CERRO DEL GALLO
Gold & Copper Domain
M&I Resour...
TSX:P I NYSE:PPP I 178
Category
M Tonnes Au Au Ag Ag Cu Cu Au Eq AuEq
(g/t) (M ozs) (g/t) (M ozs) (%) (M lbs) (g/t) (M oz)...
TSX:P I NYSE:PPP I 179
o San Antón property: 25,269 ha (12 concessions).
o Open pit project with historical epithermal vei...
TSX:P I NYSE:PPP I 180
o Analyze using the drilling, geochemical and geophysical data the possible
presence of several typ...
TSX:P I NYSE:PPP I 181
o The area is prospective for porphyry copper-gold/ IRGS, sedimentary/volcanogenic massive sulfides...
TSX:P I NYSE:PPP I 182
CP13-027
CP13-028
CP13-031
o First exploration activity since 2008
o 2013: $2 million spent on expl...
TSX:P I NYSE:PPP I 183
Conventional soil sampling
o 1st priority: Carmen-Providencia, Ave de
Gracia, Espíritu Santo Hill.
...
TSX:P I NYSE:PPP I 184
CERRO DEL GALLO
Exploration Potential
TSX:P I NYSE:PPP I 185
CERRO DEL GALLO
Exploration Potential
TSX:P I NYSE:PPP I 186
CERRO DEL GALLO
Exploration Potential
Corporate Development
David Sandison, V.P. Corporate Development
TSX:P I NYSE:PPP I 188
Corporate Development Objectives
o Project(s) which support balanced objectives of becoming a low f...
TSX:P I NYSE:PPP I 189
Corporate Development Objectives
o Opportunities which increase corporate skill sets & future optio...
TSX:P I NYSE:PPP I 190
M&A Screening Guidelines
o Precious Metals (Gold and/or Silver) > 80% of Net Smelter Returns
o Proj...
TSX:P I NYSE:PPP I 191
Regional Focus
o Restricted to Americas in areas favorable to mining investment from
investor and c...
Appendices
TSX:P I NYSE:PPP I 193
Primero sells 50% of annual silver production above 3.5 million ounces at
spot
o Remainder sold at ...
TSX:P I NYSE:PPP I 194
CLASSIFICATION
TONNAGE
(MILLION TONNES)
GOLD GRADE (G/T)
SILVER GRADE
(G/ T)
CONTAINED GOLD
(000 OU...
TSX:P I NYSE:PPP I 195
Category
M Tonnes Au Au Ag Ag Cu Cu Au Eq AuEq
(g/t) (M ozs) (g/t) (M ozs) (%) (M lbs) (g/t) (M oz)...
TSX:P I NYSE:PPP I 196
Notes:
1. The average gold grade for Proven and Probable Reserves is adjusted for dilution while Me...
Primero analyst workshop presentation
Primero analyst workshop presentation
Primero analyst workshop presentation
Primero analyst workshop presentation
Primero analyst workshop presentation
Primero analyst workshop presentation
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Primero analyst workshop presentation

  1. 1. Analyst Workshop April 3, 2014
  2. 2. TSX:P I NYSE:PPP I 2 This presentation may contain “forward-looking” statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, ”estimates”, ”forecasts”, ”intends”, ”anticipates” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, ”could”, “would”, ”might”, or “will be taken”, “occur” or “be achieved”, or the negative of these words or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Such factors include various risks related to the Company’s operations, including, without limitation, fluctuations in spot and forward markets for gold, silver and other metals, fluctuations in currency markets, changes in national and local governments in Mexico and the speculative nature of mineral exploration and development, risks associated with obtaining necessary exploitation and environmental licenses and permits, and the presence of laws that may impose restrictions on mining. A complete list of risk factors are described in the Company’s annual information form and will be detailed from time to time in the Company’s continuous disclosure, all of which are, or will be available, for review on SEDAR at www.sedar.com. This presentation uses the terms “measured resources”, “indicated resources” and “inferred resources”. The Company advises readers that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), the United States Securities and Exchange Commission does not recognize them. 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. 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 NI43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward-looking statements, there may be other factors that cause its performance not to be as anticipated. The Company neither intends nor assumes any obligation to update these forward-looking statements or information to reflect changes in assumptions or circumstances other than required by applicable law. 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 currently anticipated. Accordingly, readers should not place undue reliance on forward-looking statements. Unless otherwise indicated, all dollar values herein are in US$. Cautionary Statement
  3. 3. TSX:P I NYSE:PPP I 3 Agenda 1. Corporate Overview Joseph Conway, President & C.E.O. 2. Corporate Responsibility Jim Mallory, V.P. Corporate Responsibility 3. Financial Review David Blaiklock, C.F.O. 4. San Dimas Renaud Adams, C.O.O. / Gabriel Voicu, V.P. Geology & Exploration 5. Lunch - Social & Economic Outlook for Mexico Carlos Elizondo, Ph.D. 6. Black Fox & Grey Fox Renaud Adams, C.O.O. / Gabriel Voicu, V.P. Geology & Exploration 7. Cerro del Gallo Louis Toner, V.P. Projects / Gabriel Voicu, V.P. Geology & Exploration 8. Corporate Development David Sandison, V.P. Corporate Development
  4. 4. TSX:P I NYSE:PPP I 4 David Sandison VP, Corporate Development Gabriel Voicu VP, Geology and Exploration Tamara Brown VP, Investor Relations H. Maura Lendon VP, Chief General Counsel and Corporate Secretary Management Participants Louis Toner VP, Project Development and Construction TSX:P I NYSE:PPP I 4 Jim Mallory VP, Corporate Responsibility Joseph F. Conway President & Chief Executive Officer Renaud Adams Chief Operating Officer David Blaiklock Chief Financial Officer
  5. 5. Corporate Overview Joseph Conway, President & C.E.O.
  6. 6. TSX:P I NYSE:PPP I 6 Vision and Values VISION To be the most respected precious metals producer in the Americas, admired for the excellence of its people, its values, and its delivery on commitments. VALUES Integrity: We are uncompromising and consistent in our commitment to transparent, responsible actions. Respect: We value the diversity of our employees and other stakeholders and treat each other with dignity and honesty. Teamwork: We work together and recognize that each person contributes and makes a difference. Focused: We have the courage to take bold steps to excel and we apply a disciplined approach to deliver on our objectives.
  7. 7. TSX:P I NYSE:PPP I 7How we are building value in Primero Our Strategic Focus 1. Strong balance sheet 2. Measured growth 3. Disciplined cost management 4. Low-risk jurisdictions 5. Responsible mining
  8. 8. TSX:P I NYSE:PPP I 8 $111M STRONG Cash Balance $150M3,4 SIGNIFICANT Operating Cash Flow Strong Balance Sheet See final slide for footnotes. Plus $75 million Line of Credit6 provides funding for: o Expansion of San Dimas o Reserve replacement o Repayment of Brigus debt o Development of Cerro Del Gallo $77M5 CONSERVATIVE Debt Level Combined Company 5-Year Average After-Tax Operating Cash Flow
  9. 9. TSX:P I NYSE:PPP I 9 - 50 100 150 200 250 2011 2012 2013 2014E Black Fox San Dimas PRODUCTION1,4 (thousand AuEq ounces) 102k 111k Measured Growth History of delivering results 143k 75k 160k 130% GROWTH 235k See final slide for footnotes.
  10. 10. TSX:P I NYSE:PPP I 10 505 660 300 800 1,300 1,800 2,300 2011 2012 2013E* 2014E* Black Fox Cerro del Gallo San Dimas GOLD RESERVES (thousand gold ounces) Measured Growth History of delivering results * Assumes San Dimas Gold Reserves as of December 31, 2013, Cerro del Gallo and Black Fox Reserves as of December 31, 2012. 660 710 870 870 710344% GROWTH 2,240 1,580
  11. 11. TSX:P I NYSE:PPP I 11 $58 $81 $139 $111 0 20 40 60 80 100 120 140 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 Measured Growth History of delivering results CASH BALANCE (US$million) 91% GROWTH
  12. 12. TSX:P I NYSE:PPP I 12 Disciplined Cost Management Below industry average costs $640 $636 $599 550 600 650 2011 2012 2013 REDUCING CASH COSTS ($/gold equivalent ounce) ~$41/oz REDUCTION
  13. 13. TSX:P I NYSE:PPP I 13 Builds on Established Presence in Mexico San Dimas Mine (AT DECEMBER 31, 2013, MINERAL RESOURCES INCLUDE MINERAL RESERVES) Au Reserves (Moz) 0.87 Au M&I Resources (Moz) 1.00 Au Inferred Resources (Moz) 1.00 Ag Reserves (Moz) 49.8 Ag M&I Resources (Moz) 57.7 Ag Inferred Resources (Moz) 72.6 Ventanas Property (AT JANUARY 27 2009) Ind. Resources (koz AuEq.) 34.0 Inferred Resources (koz AuEq.) 70.0 Cerro del Gallo (AT DECEMBER 31, 2012, MINERAL RESOURCES EXCLUDE MINERAL RESERVES) Au Reserves (Moz) 0.71 Au M&I Resources (Moz) 0.92 Ag Reserves (Moz) 15.3 Ag M&I Resources (Moz) 20.6 Cu Reserves (M lbs) 56.4 Cu M&I Resources (M lbs) 103.4 Black Fox Mine (AT DECEMBER 31, 2013, MINERAL RESOURCES INCLUDE MINERAL RESERVES) Au Reserves (Moz) 0.66 Au M&I Resources (Moz) 0.82 Inferred Resources (Moz) 0.04 Grey Fox (AT JULY 2, 2013) Au Indicated Resources (Moz) 0.51 Au Inferred Resources (Moz) 0.23 Producing Mine Development Project Exploration Property Head Office (Toronto) Low-Risk Mining Jurisdictions Located in proven and low-risk jurisdictions
  14. 14. TSX:P I NYSE:PPP I 14 Pipeline of Assets Drives Organic Growth Production Construction Exploration Development San Dimas Black Fox San Dimas Expansion to 2,500 TPD Cerro del Gallo Grey Fox Potential San Dimas Expansion to 3,000 TPD Ventanas Property Black Fox Mine at Depth Black Fox Complex San Dimas Regional Balanced Pipeline of Growth
  15. 15. TSX:P I NYSE:PPP I 15 Responsible Mining Focused on Responsible Mining HEALTH AND SAFETY o We understand that our most important assets are our people and their safety is our number one priority o We maintain world class health and safety policies ENVIRONMENT o We utilize sustainable green technologies where possible COMMUNITY o We treat our local communities as our partners o We focus on understanding our local communities goals and providing local opportunities
  16. 16. TSX:P I NYSE:PPP I 16How we are building value in Primero See final slide for footnotes. 2014 Guidance Black Fox San Dimas Outlook 2014 Gold equivalent production8 (gold equivalent ounces) 70,000-80,000 155,000-165,000 225,000-245,000 Gold production (ounces) 70,000-80,000 115,000-125,000 185,000-205,000 Silver production9 (million ounces) - 6.25-6.50 6.25-6.50 All-in Sustaining Costs10 ($ per gold ounce) $1,300-$1,400 $950-$1,050 $1,100-$1,200 Cash cost10 ($ per gold equivalent ounce) $850-$900 $575-$600 $650-$700
  17. 17. TSX:P I NYSE:PPP I 17 111 143 160 165 165 75 120 120 95 2012 2013 2014E 2015E 2016E Cerro del Gallo Black Fox San Dimas How we are building value in Primero 380-400 225-245 280-290 See final slide for footnotes. Strong Growth Pipeline TARGETED GROWTH PROFILE1,2 (thousand AuEq ounces) 250% GROWTH
  18. 18. TSX:P I NYSE:PPP I 18 2014 Deliverables Operational Performance o Produce or exceed 225,000-245,000 AuEq oz at below $700/AuEq oz o Integrate and begin to optimize the Black Fox operation o Complete Grey Fox Preliminary Economic Assessment in Q2 2014 o Operate San Dimas consistently at 2,500 TPD o Increase Reserves and Resources at all sites Strategic Initiatives o Evaluate new San Dimas Reserves and assess 3,000 TPD expansion o Evaluate Cerro del Gallo technical review and assess construction decision o Evaluate Grey Fox as potential pit depletion replacement o Maintain strong balance sheet Sustainability Performance o Maintain industry leading corporate responsibility standards o Publish third GRI compliant Sustainability Report
  19. 19. TSX:P I NYSE:PPP I 19 Investment Opportunity Producing, profitable and growing o Mid-tier gold producer o Portfolio of long-life, high-grade assets o Located in safe mining jurisdictions o Strong cash flow and balance sheet o Track record of steady growth o Low cost structure See final slide for footnotes. $150M 3,4/yr SIGNIFICANT Annual Operating Cash Flow 180%1,2 GROWTH planned to ~400,000 AuEq.oz by 2016 YE1,2
  20. 20. Corporate Responsibility Jim Mallory, V.P. Corporate Responsibility
  21. 21. TSX:P I NYSE:PPP I 21 Focused on Corporate Responsibility HEALTH AND SAFETY o Sound management system and risk prevention programs o Lowered overall accident frequency index (25% in 2013) at San Dimas o Black Fox has an impressive 250 days with no lost time accidents ENVIRONMENT o Certified as ‘Clean Industry’ by the Procuraduria Federal de Proteccion al Ambiente (Mexican EPA) o Hydroelectric Plant supplies majority of mines power COMMUNITY o Well developed programs in Health, Education and Social Development • 3rd consecutive Socially Responsible Business distinction award from the Mexican Center for Philanthropy (CEMEFI) and the Alliance for Corporate Social Responsibility (AliaRSE) awarded Feb. 2014 • 1st place distinction for practices in education and employment at the College of Professional Technical Education (CONALEP) campus in Tayoltita o Local employment and procurement Focused on Responsible Mining
  22. 22. TSX:P I NYSE:PPP I 22 SAN DIMAS & BLACK FOX Workforce 1247 73 Employees Contractors 73 553 528 166 Contractors Salaried Local Union 22 Local Union 21 2013 San Dimas Headcount 1,320 342 120 Employees Contractors 2013 Black Fox Head Count 462 73
  23. 23. TSX:P I NYSE:PPP I 23 78% 7% 9%4%2% 100% National Workforce Durango Guanajuato Sinaloa Zacatecas Other SAN DIMAS Regional Distribution
  24. 24. TSX:P I NYSE:PPP I 24 SAN DIMAS Safety Performance 7.08 5.7 3.23 2.14 1.96 1.84 1.5 1.12 0 2 4 6 8 2006 2007 2008 2009 2010 2011 2012 2013 All Frequency Index 0.39 0.57 0.55 0.21 0.47 0.18 0.36 0.17 0 0.2 0.4 0.6 0.8 2006 2007 2008 2009 2010 2011 2012 2013 LTI Index 7 7 9 3 7 3 6 3 0 1 2 3 4 5 6 7 8 9 10 2006 2007 2008 2009 2010 2011 2012 2013 Lost Time Injuries 110 70 53 31 29 30 25 20 0 20 40 60 80 100 120 2006 2007 2008 2009 2010 2011 2012 2013 All Incidents
  25. 25. TSX:P I NYSE:PPP I 25Clean Industry Accreditation (a voluntary initiative) Regular monitoring of: o Air/water/soil/noise o Hazardous wastes o Special industrial wastes o Environmental Risks o Other: ( Awareness programs) Presented by the Federal Attorney for Environmental Protection May, 2013 SAN DIMAS Environmental Performance
  26. 26. TSX:P I NYSE:PPP I 26 SAN DIMAS Community Ejido Agreements Temporary Occupation and/or Right-of-way Agreements 3,306 Hectares Exploration and Development (4) Power transmission: DGO – Tayoltita (6) Las Truchas hydro-electric project (8) Local Ejidos o ~$260k Annual commitments • 15 Scholarships • Computer equipment. • Medical aid visits o Regular communications.
  27. 27. TSX:P I NYSE:PPP I 27 Impact Benefits Agreement (IBA) in place since June 2011 The Black Fox mine has a long relationship with Wahgoshig and the current IBA provides them with the opportunity to optimize its direct and indirect business participation in the project by promoting and encouraging the use of Wahgoshig Businesses to supply goods and services for the project. Both parties agree to work together to maximize the opportunities for Wahgoshig Businesses in the project and to promote and assist in the development of business skills. BLACK FOX Working together with Wahgoshig First Nations
  28. 28. TSX:P I NYSE:PPP I 28 HEALTH EDUCATION COMMUNITY& SOCIAL DEVELOPMENT INFRASTRUCTURE HEALTH EDUCATION HEALTH AND TRAINING HEALTH WEEK o Preventive Medicine Programs. o Alliances with Gov’t and Civic groups o Agreements with youth centers o Addiction prevention SAN DIMAS Health COMMITMENT TO THE COMMUNITY AND ITS DEVELOPMENT ACTIONS: Services to approx. 80% of the local community
  29. 29. TSX:P I NYSE:PPP I 29Best Practice in Education & Employment HEALTH EDUCATION COMMUNITY& SOCIAL DEVELOPMENT COMMITMENT TO THE COMMUNITY AND ITS DEVELOPMENT INFRASTRUCTURE EDUCATIONAL EDUCATION AND CULTURE COMMUNITY TRAINING o School subsidies : 255 students o Adult Education: 260 participants • Operated by I.D.E.A. CONALEP Technical school : • 7th year • 156 graduates to date o 45 rural participants @ student hostel SAN DIMAS Education ACTIONS:
  30. 30. TSX:P I NYSE:PPP I 30 HEALTH EDUCATION COMMUNITY& SOCIAL DEVELOPMENT COMMITMENT TO THE COMMUNITY AND ITS DEVELOPMENT SOCIAL INFRASTRUCTURE PRODUCTIVE PROJECTS SUSTAINABLE ALTERNATIVES SUPPORT & CONTRIBUTIONS TO THE COMMUNITY STRATEGIC ALLIANCES – (Shared Value) SAN DIMAS Social License DEPENDENCY PROJECTS Secretary of Social Development Greenhouses Day care center Sewing workshops Bakery Secretary of Environment & Natural Resources Ecological stoves Secretary of Public Education Safe schooling National Fund for Support to Social Enterprises Local supplier development Center for Youth Integration Addiction prevention Rural electrical supply 10 Communities 700 Families 3,255 Inhabitants ACTIONS:
  31. 31. TSX:P I NYSE:PPP I 31 “Grandes Familias 2013” o Monthly recreational & cultural programs for employee‘s families. • Professionals, staff & labor • Primero camp and community centers. o Social Assistance “1-800” o Preventive Medicine Program o Communications - Primero Newsletter o Primero Mining exposition SAN DIMAS Employee Wellness
  32. 32. TSX:P I NYSE:PPP I 32 Presented by: Ministry of Public Education & Ministry of Labor 3rd Consecutive year • Business Ethics • Care and Preservation of the Environment • Quality of Life • Community Engagement SAN DIMAS Awards & Recognition
  33. 33. Financial Overview David Blaiklock, C.F.O.
  34. 34. TSX:P I NYSE:PPP I 34 Finance Priorities o Maintain strong balance sheet and liquidity position to fulfill strategic objectives o Meet guidance; deliver on commitments o Control costs (opex/capex) particularly in this volatile commodity price environment o Timely, accurate and transparent reporting for internal and external stakeholders o Ensure risks properly identified, monitored and managed
  35. 35. TSX:P I NYSE:PPP I 35 $111M STRONG Cash Balance $150M3,4 SIGNIFICANT Operating Cash Flow Strong Balance Sheet Growth plans funded with no shareholder dilution See final slide for footnotes. $77M5 CONSERVATIVE Debt Level Combined Company 5-Year Average After-Tax Operating Cash Flow Exchanges TSX:P NYSE:PPP Balance Sheet at December 31, 2013 Cash Debt Undrawn Line of Credit6 $111 million $77 million $75 million Capital Structure at March 18, 2014 Shares outstanding Fully Diluted Market Cap. 158 million 191 million C$1.37 billion
  36. 36. TSX:P I NYSE:PPP I 36 Strong Liquidity Available Cash & Cash Equivalents (as of December 31, 2013 less Brigus senior note repayment of $24 million, less Transaction costs of ~$15 million, less $10 million subscription in Fortune Bay) Available line of credit6 (currently being finalized, undrawn) $62M $75M ~$137M LIQUIDITY See final slide for footnotes.
  37. 37. TSX:P I NYSE:PPP I 37 2014 Guidance Assumptions Assumptions o Average gold price of $1,200 per ounce; o Average silver price of $7.96 per ounce (fixed price under SPA of $4.16 per ounce and spot price of $21 per ounce); o FX rates of 1.05 Canadian dollars and 13 Mexican pesos to the US dollar. o Mexico inflation rate of 4% Sensitivities Impact on Cash Cost per Gold Equivalent Ounce $100/oz change in price of Gold $10 10% change in US$/Mexican Peso $28 10% change in US$/Canadian$ $22 2013 Outlook 2014 Gold equivalent production8 (gold equivalent ounces) 143,114 225,000-245,000 Gold production (ounces) 111,983 185,000-205,000 Silver production9 (million ounces) 6.05 6.25-6.50 All-in Sustaining Costs10 ($ per gold ounce) $1,077 $1,100-$1,200 Cash cost10 ($ per gold equivalent ounce) $599 $650-$700 Capital Expenditures ($ millions) $56.5 $80.0 Exploration ($ millions) $15.4 $35.0 See final slide for footnotes.
  38. 38. TSX:P I NYSE:PPP I 38 See final slide for footnotes. Low All-in Sustaining Costs Below industry average costs All-In Sustaining Costs10 ($/ounce) $968 $1,134 $1,077 - 200 400 600 800 1,000 1,200 2011 2012 2013 Industry Average $389 $229 $235 AISC $1,077/oz $218 $6 Operating Cost Sustaining Capital G&A (Including share based payments) Exploration Other
  39. 39. TSX:P I NYSE:PPP I 39 2014 Total Estimated Capital Expenditures Capital Expenditures Estimated 2014 San Dimas Underground Development $14.7 million San Dimas Sustaining Capital $11.8 million San Dimas Projects $11.8 million San Dimas Sub Total $38.3 million Black Fox Underground Development $7.6 million Black Fox Open Pit Capital Stripping $3.3 million Black Fox Sustaining $10.7 million Black Fox Projects $8.3 million Grey Fox Development Studies $1.3 million Black Fox Sub Total $31.2 million Cerro del Gallo Development $10.4 million Total $80.0 million Note: Figures may not add due to rounding.
  40. 40. TSX:P I NYSE:PPP I 40 2014 Total Exploration Expenditures Capitalized Exploration Expenditures Meters Cost (US$ millions) San Dimas Mine San Dimas Diamond Drilling 60,000 $5.4 million San Dimas Drifting 2,500 $5.9 million San Dimas Regional Diamond Drilling 20,000 $3.5 million Ventanas Regional Diamond Drilling 4,100 $0.9 million San Dimas Sub Total $15.7 million Black Fox Complex Black Fox Diamond Drilling 55,700 $7.7 million Grey Fox & Regional Exploration 76,400 $9.1 million Black Fox Complex Sub Total $16.8 million Cerro del Gallo Diamond Drilling 10,000 $2.5 million Total 226,200 $35.0 million Note: Figures may not add due to rounding.
  41. 41. TSX:P I NYSE:PPP I 41 48% 32% 11% 9% San Dimas Black Fox Cerro del Gallo Grey Fox $115M 2014 Total Capital & Exploration Expenditures
  42. 42. TSX:P I NYSE:PPP I 42 Depreciation and Depletion o Policy – deplete mining properties using units-of-production basis over estimated P&P reserves + estimate of portion of mineralization expected to be classified as reserves. o 2012 - 2013 SEC initiative to review depletion policies of mining companies; Primero comment letters and responses filed on edgar. o SEC aversion to inclusion of anything other than P&P reserves in depletion base. o Historically San Dimas has achieved > 90% conversion rate from resources to reserves. o Before Q4 2013 – P&P reserves + 75% of (inferred resources and exploration potential). o Q4 2013 and after – depletable (P&P + 75% of inferred) and non- depletable (exploration potential) pools. o SD depreciation and depletion $45 - 50m / year at 2,500 TPD rate.
  43. 43. TSX:P I NYSE:PPP I 43 Mexican Tax Reforms o Impact on Primero is an effective tax rate increase from 29% to ~40% o 7.5% royalty calculated on taxable EBITDA. Exploration costs are deductible. o Precious metals producers pay an additional environmental erosion fee based on 0.5% of revenue from sales of gold, silver or platinum. o Both 7.5% royalty and 0.5% fee are deductible for income tax. Effective January 1, 2014; paid by March 31 of following year. o Other significant changes: • Elimination of 100% 1st year deduction of exploration costs (now deductible over 10 years). • Elimination of accelerated depreciation of PP&E purchases. o Industry mitigation strategies: • Continue to apply political pressure through lobbying (highlight contribution of mining to federal, state and local communities). • Company specific legal challenge – amparo. • Tax planning strategies, e.g., separate ownership of concessions from PP&E.
  44. 44. TSX:P I NYSE:PPP I 44 Brigus Tax Position o Federal tax rate at 25% and Ontario Mining Tax (“OMT”) at 8.5% o At YE 2013 Brigus had US$282m of tax pools for Cdn federal income tax o Pools will increase with future PP&E, development and exploration expenditures o In 2013, Brigus used about $35m of these pools, so no federal income tax likely payable for > 5 years o At YE 2013 Brigus had US$162m of tax pools for OMT o In 2013, Brigus used $43m of these pools, so no OMT likely payable for > 3 years
  45. 45. San Dimas Renaud Adams, C.O.O.
  46. 46. TSX:P I NYSE:PPP I 46 Mexico is a Low Risk Mining Jurisdiction Cerro Del Gallo Project Gold-Silver-Copper Development Project Guanajuato, Mexico Ventanas Property Exploration Property (20km South East of San Dimas) Durango, Mexico San Dimas Mine Gold-Silver Mine Durango, Mexico o Politically stable o Long mining history o One of world’s largest metals producers o Excellent infrastructure o Experienced workforce BUILDS ON ESTABLISHED PRESENCE IN MEXICO
  47. 47. TSX:P I NYSE:PPP I 47 47 o 24,825 hectare land package o Over 120 known veins in the district o Thickness of veins varies from 0.10 m up to 8 m - Avg 1.90 m o Some veins can be followed for more than 1,500 m o Total underground development of more than 500 km 47 SAN DIMAS Large Land Package
  48. 48. TSX:P I NYSE:PPP I 48 SAN DIMAS Site Aerial View
  49. 49. TSX:P I NYSE:PPP I 49 Location Durango-Sinaloa State Border Ownership 100% Metals Gold & Silver Mining Underground cut and fill and long-hole DISTRICT PRODUCED 11M OUNCES OF GOLD AND 600M OUNCES OF SILVER One of Mexico’s Most Significant Precious Metals Deposits See final slide for footnotes. 49 SAN DIMAS 2013 Outlook 2014 Gold equivalent production8 (gold equivalent ounces) 143,114 155,000- 165,000 Gold production (ounces) 111,983 115,000- 125,000 Silver production9 (million ounces) 6.05 6.25-6.50 All-in Sustaining Costs10 ($ per gold ounce) $1,077 $950-1,050 Cash cost10 ($ per gold equivalent ounce) $599 $575-600 Cash cost10 – by-product ($ per gold ounce) $389 $340-360 Capital Expenditures ($ millions) $53.1 $38.3 Exploration ($ millions) $14.6 $15.7 SAN DIMAS A Flagship Asset
  50. 50. TSX:P I NYSE:PPP I 50 Central Block Discovery (Roberta, Robertita & Santa Lucía veins) Acquisition of Luismin by Wheaton River 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 - 50,000 100,000 150,000 200,000 250,000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E Gold (oz) Gold Equivalent (AuEqoz) Gold Grade (g/t) RH GoldGrade(g/t) Sinaloa Graben Discovery Subsequent Acquisition of San Dimas by Primero San Dimas Historical Production (AuEq ounces) CURRENT RESERVE GRADE SAN DIMAS Proven History of Production
  51. 51. San Dimas Operations Renaud Adams, C.O.O.
  52. 52. TSX:P I NYSE:PPP I 52 Crushing AreaUnderground Mine Cut & Fill and Long-Hole Grinding Section Dore Bars Precipitation & Smelting Chemical Treatment SAN DIMAS District Process Dry Tailings Facility
  53. 53. TSX:P I NYSE:PPP I 53 Cut and Fill (Jumbo and Jack-Leg) Long-Hole SAN DIMAS Mining Methods
  54. 54. TSX:P I NYSE:PPP I 54 54 Jumbo Drill Rig
  55. 55. TSX:P I NYSE:PPP I 55 Jackleg Drill
  56. 56. TSX:P I NYSE:PPP I 56 Long Hole Drill
  57. 57. TSX:P I NYSE:PPP I 57 PREGNANT SOLUTION 34 BALL MILL 12’x14’ NO. 2 Industrial Water Pregnant Solution Precipitate Zinc Pulp Tailings Barren Solution Return Solution Dore Slag TAILINGS IMPOUNDMENT 1 RETURN SOLUTION COARSE ORE BIN CAP. 780 TON CONVEYOR BELT Nº 1 36’’ W, 49.1’ L JAW CRUSHER PETTIBONE 20”x 36” CONVEYOR BELT Nº 2 24” W, 160.6’ L INTERMEDIATE ORE BIN CAP. 375 TON VIBRATING SCREEN TRAYLOR 8’X16’ CONVEYOR BELT Nº 3 36” W, 18.5’ L CONVEYOR BELT Nº 4 36” W, 77.5’ L CONVEYOR BELT Nº 5 36 ” W, 86.1’ L SECONDARY CRUSHER HP-300 TERTIARY CRUSHER SYMON´S 7 Ft CONVEYOR BELT Nº 6 24’’ W, 750.7’ L FINE ORE BINS Nº 1 & Nº 2 CAP. 1,000 TON Ea. BALL MILLS (2) 12’ X 14’ MARCY PRIMARY THICKENNER Nº 1 48’X12’ (d x h) PRIMARY THICHENNER Nº 2 (HI-CAP) 55’X10’ (d x h) AGITATORS (7) 30’X24’ (d x h) AGITATORS (1) 30´X20’ (d x h) SUPERAGITATORS (6) 50’X30’ (d x h) THICKENNER - INTERMEDIATE (2) 30’X10’ (d x h) THICKENNER - INTERMEDIATE(1) (HI-CAP) 48’X10’ (d x h) SHEET FILTERS AUTOJET (2) FILTERS PRESS (4) 60” SQUARE INDUCTION FURNACE (2) CAP. 700kg GEHO PUMPS TZPM-180 (4) DELKOR THICKENNER (1) 50 FT HI-PAC DELKOR THICKENNER (1) 80 FT HI-PAC BUFFER TANK (1) 30 x 24 (dxh) PUTZMEISTER SAND PUMP HSP-25100 EQUIPMENT CHARACTERISTICS VIBRATING FEEDER MINE CARS COARSE ORE BIN JAW CRUSHER INTERMEDIATE ORE BIN VIBRATING SCREEN BELT No. 1 SECONDARY FEEDER DUMP TRUCKS BELT Nº 7CONE CRUSHER HP-300 BELT Nº 8 BELT Nº 9 CONE CRUSHER SYMONS 7 FT GEHO PUMPS + + + + + + + + + + + + + + + CLARIFIERS + + + + + + + + + + + + + + + BALL MILL 12’x14’ NO1 LIME FINE ORE BIN No. 2 FINE ORE BIN NO 1 INDUSTRIAL WATER 1 2 3 4 5 6 7 8 9 BARREN Nº 1 SEMIRICH SOLUTION PRIMARY THICKENNER 1 RETURN SOLUTION INTERMEDIATE NO 1 14 INTERMEDIATE Nº3 13 JALES BARREN Nº 2 SUPERAGITATORS 1211 SUPERAGITATORS 10 RECIRCULATOR 9 INTERMEDIATE NO 2 THICKENNER DELKOR 1SUPERAGITATOR 1 SUPERAGITATOR 2 HOLOFLITE DRYER HELICOIDAL CONVEYOR JAW CRUSHER BULLION PACKING FLUX MIX VAULT FILTERS PRESS SHEET FILTERS AUTOJET NºS1 & 2 VACUUM PUMP PCP PUMPS DE-OXYGENTION TOWER INDUCTION FURNACES ZINC POWDER PRIMARY THICKENNER 2 AGITATORS THICKENNER DELKOR 2 1 2 BUFFER TANK PUTZMEISTER PUMP SAN DIMAS Plant’s Flowsheet
  58. 58. TSX:P I NYSE:PPP I 58 SAN DIMAS 2014 Mine Plan Area 2014 Tonnes Dist. (%) 2014 oz Au Dist. (%) Reserves oz Au Dist. (%) Central Block 62% 60% 58% Sinaloa Graben 23% 30% 38% Tayoltita 15% 10% 5% Total 100% 100% 100% o Contribution (oz Au) from Sinaloa will increase to reserve distribution level once higher grade from Victoria vein becomes available (18 months) o Over 20 km of development including 2.5 km of strategic exploration drifting
  59. 59. TSX:P I NYSE:PPP I 59 • Adding an additional long hole drill in 2014. • Optimization to minimize long hole drill downtime. • Adding a 1.2 tonne ANFO loader to increase long hole blasting capacity. • Targeting long hole mining of up to 36% of total ore production. 30% 33% 3% 20% 14% - 50 100 150 200 250 300 350 Long Hole Cut-and-Fill Development Cut-and-Fill Development Jack Leg Jumbo Tonnage(kt) 2014 Tonnes Target by Mining Method SAN DIMAS Mine Plan by Mining Method
  60. 60. TSX:P I NYSE:PPP I 60 Q1 2014 Q2 2014 Q3 2014 Q4 2014 100m Mining Contribution % 19 Tonnes Mined kt 170 Au Grade g/t 3.60 Ag Grade g/t 182 Long Section SAN DIMAS 2014 Mine Plan Roberta
  61. 61. TSX:P I NYSE:PPP I 61 Q1 2014 Q2 2014 Q3 2014 Q4 2014 100m Mining Contribution % 22 Tonnes Mined kt 200 Au Grade g/t 5.55 Ag Grade g/t 278 Long Section SAN DIMAS 2014 Mine Plan Robertita
  62. 62. TSX:P I NYSE:PPP I 62 Q1 2014 Q2 2014 Q3 2014 Q4 2014 50m Mining Contribution % 14 Tonnes Mined kt 130 Au Grade g/t 5.62 Ag Grade g/t 293 Long Section SAN DIMAS 2014 Mine Plan Victoria
  63. 63. TSX:P I NYSE:PPP I 63 Q1 2014 Q2 2014 Q3 2014 Q4 2014 50m Mining Contribution % 6 Tonnes Mined kt 53 Au Grade g/t 4.17 Ag Grade g/t 203 Long Section SAN DIMAS 2014 Mine Plan Alexa
  64. 64. TSX:P I NYSE:PPP I 64 SAN DIMAS Victoria Highest Grades 18 Months Away
  65. 65. San Dimas Costs & Capex Renaud Adams, C.O.O.
  66. 66. TSX:P I NYSE:PPP I 66 60% 40% Cost by Currency Mexican Pesos US Dollars Cost 49% 51% Variable Fixed Fixed Operating Cost SAN DIMAS Costs
  67. 67. TSX:P I NYSE:PPP I 67 $66.30$26.50 $16.30 $2.60 2013 Unit Cost = $112/tonne Mine Mill G&A Refining Note: 2013 unit costs per tonne higher due to 792,239 tonnes mined versus 766,930 tonnes milled. SAN DIMAS 2013 Costs per Tonne
  68. 68. TSX:P I NYSE:PPP I 68 43% 13% 5% 3% 2% 2% 3% 3% 4% 1% 5% 2% 1% 8% 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% SAN DIMAS 2013 Operating Cost Breakdown
  69. 69. TSX:P I NYSE:PPP I 69 27% 22% 29% 22% Underground Development Projects Exploration Sustaining $54M SAN DIMAS 2014 Capital & Exploration Expenditure
  70. 70. Expansion & Optimization Renaud Adams, C.O.O.
  71. 71. TSX:P I NYSE:PPP I 71 o Maximize use of Long Hole mining method: Target 30% of total mining by year-end o Maximize potential effective hours of equipment (OEE): Mine planning, shift scheduling, planning, transportation of personnel, equipment tracking system o Continue to focus on dilution control and improving mill feed grades o Haulage optimization is a priority o Development and training of workforce o Ongoing integration of continuous improvement tools & practices o Establish/respect preventive maintenance best practices while continuing to improve preventive/corrective ratio and increased wrench time o Improved security at site to mitigate potential asset theft Increase Overall Mine Productivity SAN DIMAS Expansion & Optimization Program
  72. 72. TSX:P I NYSE:PPP I 72 Long hole Mining Method Implementation of Long hole Mining Opportunity to further increase productivity and decrease mining cost. o Excellent ground condition o Sub-vertical vein system o Adequate drilling equipment o Excellent fragmentation o Lower dilution than C&F Jumbo Work Execution Planning Optimization of Mine Planning Opportunity to increase mining productivity by maximizing the utilization of existing resources and, reinforcement of best practices between departments. o Mine planning continues to improve o Implementation of 3D mine planning provides further opportunities SAN DIMAS Mining Methods & Execution
  73. 73. TSX:P I NYSE:PPP I 73 Implementation of State of the Art Mine Concept and Scheduling Software Target pro-active decisions and adjustments Implementation of Leading KPIs and Risk Management tools 3D Concepts & Scheduling Risk Management & KPIs SAN DIMAS Modeling and Planning
  74. 74. TSX:P I NYSE:PPP I 74 Phase I: o Optimize ore haulage o Create internal ore bin o Create one entry/one exit point o Create one point of delivery to mill Phase II: o Replace haulage trucks with conveyor system Sinaloa Graben North SAN DIMAS Mine Operations – Haulage Optimization
  75. 75. TSX:P I NYSE:PPP I 75Tunnel Loop SAN DIMAS Phase I: Haulage Optimization Routes
  76. 76. TSX:P I NYSE:PPP I 76 Potential Conveyor System SAN DIMAS Phase II: Mine Conveyor Concept
  77. 77. TSX:P I NYSE:PPP I 77 Implement Equipment Tracking to Optimize Effective Hours o Install equipment tracking devices on all critical equipment o Analyze and optimize effective hours versus non operating and operating delays • Track asset utilization • Complete more drill/blast cycles per day • Optimize scheduling and routing • Reduce fuel costs • Track scheduled maintenance • View proof of ore delivery • Reduce administration SAN DIMAS Mine Operations – Equipment Tracking
  78. 78. TSX:P I NYSE:PPP I 78 o Union has agreed to a 3 month trial of 12 hour shifts in some long-hole mining stopes o Current scope of trial is limited o Mine currently operates on a 6 day per week, 3 x 8 hour shifts per day o Creates opportunity for mine to transition to 7 days per week, 2 x 12 hour shifts per day o 12 hour shifts expected to recover 2hrs per day in travel time o Achieve ~1.7 complete drill/blast cycles per day in current 3 x 8 hr shifts o Expected to achieve 2 complete drill/blast cycles per day in 2 x 12 hr shifts o Potential significant productivity improvements Mine trialing 12 hour Shifts SAN DIMAS Mine Operations – Potential 7 Day Operation
  79. 79. TSX:P I NYSE:PPP I 79 1,500 2,000 2,500 3,000 2011 2012 2013 2014E 2015E 2016E 2017E San Dimas Tonnes Per Day Phase 1 Mill Expansion to 2,500 tpd Mine Optimized to 3,000 tpd Base Production Mine Production of 2,150 tpd Target Mine Production of 2,750 tpd Mine Production of 2,500 tpd Phase 2 Mill Expansion Scoping Study Current Capacity 3,000 tpd Target   Phase 2 Mill Expansion to 3,000 tpd SAN DIMAS Potential Phase 2 Expansion 
  80. 80. TSX:P I NYSE:PPP I 80 - 1,000 2,000 3,000 2014E 2015E 2016E 2017E Graben North Santa Rita Tayoltita Sinaloa Graben Central Block 3,000TPD THROUGHPUT CONCEPT (tonnes per day) SAN DIMAS Expansion Concept
  81. 81. TSX:P I NYSE:PPP I 81Mill Operating at 2,500 TPD Item Current Capacity 3,000 tpd Target 1. Mine 2,500 tpd 2. Crushing 2,500 tpd 3. Grinding (3 ball mills) 3,000 tpd 4. Leaching & Thickening 2,500 tpd 5. Tailings 3,000 tpd   SAN DIMAS Current Mill Component Capacities
  82. 82. TSX:P I NYSE:PPP I 82 o Third ball mill, new ore bins/ore feed system and pumping capacity, has already increased grinding capacity to 3,000 TPD o Crushing equipment was reconfigured to reach 2,500 TPD o Crushing capacity of 3,000 TPD can be achieved by adding new primary crusher and a parallel secondary/tertiary line SAN DIMAS Crushing & Grinding Expansion
  83. 83. TSX:P I NYSE:PPP I 83 o Leaching & Reagents: 2,500 TPD achieved by the addition of extra leaching capacity and optimization of leach kinetics o Limited optimization required to reach 3,000 TPD o Precipitation & Refining: Extra filter press and limited optimization required to achieve 3,000 TPD o Extra thickening capacity was installed for 2,500 tpd expansion SAN DIMAS Chemical Processing Expansion
  84. 84. TSX:P I NYSE:PPP I 84 84 High Density Tailings Pumped to Filter o Two Putzmeister tailings pumps with installed capacity of 3,000 TPD o A third pump on site to be installed for back-up purposes Third Dry Tailings Filter Completed o Capacity 3,000 tpd installed o Minimum 15 year operating life Best Practices Dry Tailings Plant Third Dry Tailings Filter Completed 3,000tpd TOTAL CAPACITY SAN DIMAS Dry Tailings Filter Expansion Complete
  85. 85. TSX:P I NYSE:PPP I 85 o Will support mine at 3,000 TPD for over 15 years o Construction on schedule, 90% complete o Projected cost ~$9.3M o Re-engineering of rock cut: • Width reduced by 20% • Redesign driven by rock instability on north side • Simplified design o Sustaining capital project SAN DIMAS Waste Rock Project
  86. 86. TSX:P I NYSE:PPP I 86 o Las Truchas Power House capacity was 7.3mW o At 2,500 TPD provided 70% of San Dimas power o Grid power cost of $0.11/kWhr o Las Truchas average cost of $0.015/kWhr o At 2,150 TPD operating level saved: • $2.5M per year • 23,500 tonnes of CO2 SAN DIMAS Las Truchas Hydro Power Facility
  87. 87. TSX:P I NYSE:PPP I 87 o Full Project Scope considers doubling current hydro generation of Las Truchas and consists of construction of extra reservoir/dam (18M m3) and expansion of current power house c/w installation of second turbine/generator o All current and future power needs (up to 3,000 TPD) of San Dimas power requirements covered with proposed Phase 2 expansion of Truchas o Phase 2A – Expansion of current power house on-going: • Total estimated cost of $7M, $3.9M budgeted in 2014 • Will add nearly 50% to current hydro generation o Potential Phase 2B – Construction of extra reservoir • Pre-Feasibility study - Completion Q2 2014 • Would add another 50% to the current hydro generation • Capital estimate of ~$15M • Financing options available through external sources SAN DIMAS Las Truchas Expansion
  88. 88. TSX:P I NYSE:PPP I 88 o Civil works construction started o Initial work focused on pads for transformer relocation o Delivery dates to site: • New Transformer: April 2014 • Turbine: May 2014 • Generator: April 2014 o Commissioning August 2014 o On budget @ $7.0M SAN DIMAS Truchas Hydro Power House Expansion
  89. 89. San Dimas Exploration Gabriel Voicu, V.P. Exploration
  90. 90. TSX:P I NYSE:PPP I 90 35° Upper volcanic group Piaxtla intrusive Arana diorite and intrusive andesite Lower volcanic group Fault Geologic boundary Vein Strike and dip Mill Town site 0 1 2 3 4 5 Km 34° 35° 10° 105°56’ TAYOLTITACONTRA ESTACA 76° 33° 35° 35° 25° CARBONERAS NORTH (After Henshaw, 1953; Randalll,1970; Smith and Hall, 1974; Nemeth,1976; Clarke, 1982; Enriquez,1995). A’ SAN DIMAS Geological Setting
  91. 91. TSX:P I NYSE:PPP I 91 Favorable Horizon Mineralization – Ore Bodies Extension of the Favorable Horizon Potential 0 1 2 K I L O M E T E R S SW NE 3,000 m. 2,000 m. 1,000 m. 3,000 m. 2,000 m. 1,000 m. Source: San Dimas Geology Office Intrusive Faults West Block 2014 EXPLORATION San Antonio Mined 1987-2002 Central Block Mined 2002-Current Tayoltita Block Mined 1975-Current Arana Hanging Wall Sinaloa Graben Mined 2012-Current 2014 EXPLORATION PROGRAM DRILLING FOR EXTENSIONS OF KNOWN VEINS LONGITUDINAL CROSS SECTION SAN DIMAS District Wide Exploration Potential
  92. 92. TSX:P I NYSE:PPP I 92 SAN DIMAS Structural Concept
  93. 93. TSX:P I NYSE:PPP I 93 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 Initial 2003 2004 2005 2006 2007 2008 2009 2010 2011* 2012 2013 End Ounces San Dimas Reserve Replacement based on Au ounces (2003-2013) Reserve Additions Production Central Block Discovery Roberta, Robertita veins Acquisition of Luismin by Wheaton River Sinaloa Graben Discovery Acquisition of San Dimas by Primero New Block Model Introduced SAN DIMAS Proven History of Reserve Replacement
  94. 94. TSX:P I NYSE:PPP I 94 CLASSIFICATION TONNAGE (MILLION TONNES) GOLD GRADE (G/T) SILVER GRADE (G/ T) CONTAINED GOLD (000 OUNCES) CONTAINED SILVER (000 OUNCES) Mineral Reserves Proven & Probable 4.893 5.5 315 870 49,479 Mineral Resources Measured & Indicated 4.282 7.2 419 997 57,713 Inferred 7,333 4.2 310 998 72,647 Notes to Mineral Reserve Statement: Cutoff grade of 2.7 grams per tonne (”g/t”) gold equivalent (“AuEq”) based on total operating cost of US$104.97/t. Metal prices assumed are gold US$1,250 per troy ounce and silver US$20 per troy ounce. Silver supply contract obligations have been referenced in determining overall vein reserve estimate viability. Processing recovery factors for gold and silver of 97% and 94% assumed. Exchange rate assumed is 13 pesos/US$1.00. The Mineral Reserve estimates were prepared under the supervision of Mr. Gabriel Voicu P.Geo., Vice President, Geology and Exploration, Primero and a QP for the purposes of National Instrument 43-101 (“NI 43-101”). Notes to Mineral Resource Statement: Mineral Resources are total and include those resources converted to Mineral Reserves. A 2.0g/t AuEq cutoff grade is applied and the gold equivalent is calculated at a gold price of US$1,300 per troy ounce and a silver price of US$20 per troy ounce. A constant bulk density of 2.7 tonnes/m3 has been used. The Mineral Resource estimates were prepared by Mr. Rodney Webster MAusIMM, MAIG and Mr. J. Morton Shannon P.Geo., both of AMC Mining Consultants (Canada) Ltd. and a QP for the purposes of NI 43-101. Additional exploration potential was estimated at 6-10 million tonnes at grade ranges of 3-5 grams per tonne of gold and 200-400 grams per tonne of silver as of December 31, 2011. It should be noted that these targets are conceptual in nature. There has been insufficient exploration to define an associated Mineral Resource and it is uncertain if further exploration will result in the target being delineated as a Mineral Resource. Mineral Resources and Mineral Reserves (DECEMBER 31, 2013, MINERAL RESOURCES INCLUDE MINERAL RESERVES) SAN DIMAS 2013 Increased Reserves and Grade
  95. 95. TSX:P I NYSE:PPP I 95 Block Tonnes Grade (g/t) Ounces Mining Method Dilution Gold Silver AuEq Gold % Silver Jack Leg Jumbo Long Hole 1Robertita Central Block 906,752 6.8 324 11.8 196,947 23% 9,458,016 5% 75% 20% 75% 2Victoria Sinaloa Graben 524,793 11.5 370 17.3 194,594 22% 6,235,001 18% 82% 0% 56% 3Roberta Central Block 754,925 5.4 221 8.8 130,471 15% 5,361,330 7% 36% 57% 47% 4Elia Sinaloa Graben 269,095 8.2 598 17.5 70,987 8% 5,170,783 0% 65% 35% 71% 5Alexa Sinaloa Graben 304,234 5 257 9.0 49,402 6% 2,514,692 0% 0% 100% 21% 6Marina 1 Central Block 331,249 4.5 290 9.0 48,324 6% 3,091,620 19% 0% 81% 36% 7Marina 2 Central Block 122,199 5.5 348 10.9 21,737 2% 1,366,328 0% 0% 100% 66% 8Santa Lucia Central Block 272,157 2 319 7.0 17,955 2% 2,795,439 27% 0% 73% 27% 9San Enrique Central Block 134,096 4.1 220 7.5 17,866 2% 947,616 100% 0% 0% 41% 10Castellana Central Block 201,927 2.5 286 6.9 16,357 2% 1,855,077 31% 0% 69% 49% 11America Tayoltita 131,684 3.1 524 11.2 13,063 2% 2,219,269 100% 0% 0% 46% 12Aranza Sinaloa Graben 118,820 3.4 322 8.4 12,948 1% 1,230,019 0% 0% 100% 43% 13Tayoltita Tayoltita 139,581 2.7 214 6.0 12,220 1% 958,147 100% 0% 0% 37% 14Celia Central Block 160,762 2.2 255 6.2 11,489 1% 1,319,379 77% 0% 23% 40% 15Marisa Central Block 46,387 5.6 645 15.6 8,427 1% 962,196 100% 0% 0% 22% 16Jael Central Block 73,783 3.5 261 7.6 8,389 1% 619,164 100% 0% 0% 38% 17Noche Buena Tayoltita 94,308 2.5 212 5.7 7,449 1% 641,665 100% 0% 0% 87% 18Gloria Central Block 55,681 4.1 243 7.9 7,378 1% 435,024 0% 0% 100% 155% 19Gabriela Central Block 82,001 2.5 263 6.6 6,712 1% 693,047 100% 0% 0% 30% 20Soledad Central Block 47,721 3.8 320 8.7 5,789 1% 491,403 100% 0% 0% 64% 21Cristina Central Block 31,197 2.3 301 7.0 2,330 0% 301,702 100% 0% 0% 38% 22Santa Gertrudis Tayoltita 29,068 1.9 302 6.5 1,750 0% 282,088 100% 0% 0% 76% 23Pozolera Tayoltita 23,762 1.9 308 6.7 1,486 0% 235,290 100% 0% 0% 44% 24El Oro Tayoltita 7,643 3.6 149 5.9 888 0% 36,603 100% 0% 0% 44% 25Stockpile 29,442 5.1 272 9.3 4,813 1% 257,605 Total 4,893,266 5.5 315 10.4 869,770 100% 49,478,504 28% 32% 40% 50% SAN DIMAS Reserves by Area
  96. 96. TSX:P I NYSE:PPP I 96 Our goal is to replace depleted reserves by 100%. Delineation Objectives: o Test the continuity of the economic oreshoots along strike and at depth o Transfer Inferred Resources to Measured & Indicated Resources o Investigate possible sub parallel veins to the main veins o Improve the characterization of the geometry of the veins and grade variability Exploration Objectives: o Discover new high-grade veins close to mine infrastructure o Verify lateral and downdip extension of the known veins o Increase the Inferred Resources SAN DIMAS Objectives
  97. 97. TSX:P I NYSE:PPP I 97 2 34 1 Ore Body Proposed Drilling Proposed Drilling Old Hole Proposed Drilling Proposed Drilling Ore Body Stope Stope Test DrillingDelineation Drilling Vein-continuity Exploration DrillingExploration Drilling Less Investment Required (money and time) Long Term Impact Short Term Impact More Investment Required (money and time) SAN DIMAS Strategy R&R Development
  98. 98. TSX:P I NYSE:PPP I 98 o 2014 $15.7 million exploration program o 22,500 hectare package o 80,000 metres of drilling:  35,000 metres delineation drilling  25,000 metres exploration drilling, plus 2,500 metres of exploration drifting  20,000 meters regional exploration drilling o Targeting high-grade central corridor, close to existing infrastructure SAN DIMAS Focused Exploration
  99. 99. TSX:P I NYSE:PPP I 99 San Dimas Drilling Program Item Meters CapEx Delineation Drilling 35,000 meters Mine & Regional Exploration Drilling 45,000 meters Total Drilling 80,000 meters $8.9 million Exploration Drifting 2,500 meters $5.9 million Ventanas - $0.9 million TOTAL $15.7 million SAN DIMAS 2014 Exploration Program
  100. 100. TSX:P I NYSE:PPP I 100 Central Block 1. Robertita 2. Roberta 3. San Enrique 4. Marinas 5. Gloria 6. Soledad-Jael 7. Castellana 8. San Salvador-Gertrudis Sinaloa Graben 9. Sistema Rosario 10. Aranza 11. Elia 12. Castellana-Sta. Eulalia 13. Marinas Proyección. 14. Victoria/Pillar 15. Alexa 16. San Jose- Trinidad San Fernando North 19. Gloria-Goteras 20. Frapopan 21. Pozolera 22. Noche Buena Tayoltita 23. Nivel 22 Independ-Arana 24. Nivel 24 Independ HW 25. Nivel 27-28 Santa Rita 26. San Alberto 27. Nancy 28. Marisa West Block 17. Marshall-Franklin y Carmen 18. San Jose - Trinidad SAN DIMAS 2014 Near Mine Exploration Targets
  101. 101. TSX:P I NYSE:PPP I 101 Elev.100 Elev.100 Elev.200Elev.200 Elev.300 Elev.300 Elev.400Elev.400 Elev.500 Elev.500 Elev.600Elev.600 Elev.700 Elev.700 Elev.800 200 m0 100 SW NE RO_305 RO_304 RO_303 RO_250 RO13_314 DDH Au g/t Ag g/t TW m RO_250 4.8 133 1.0 RO_303 34.4 55 1.2 RO_304 11.3 722 1.0 3.1 142 1.5 RO_305 2.6 356 1.1 RO13_314 5.7 13 2.3 Working Old Drilling 2014 Fault Limite Zona Favorable Explanation Productive Andesite Portal Rhyolite Socavon Rhyolite Buena Andesite Piaxtla Intrusive SAN DIMAS 2014 Roberta Targets
  102. 102. TSX:P I NYSE:PPP I 102 TARGETS ROBERTITA VEINSW NE 700m 600m 500m 400m 300m 700m 600m 500m 400m 300m ROB13_274 ROB13_276 ROB13_293 ROB13_281 ROB13_284 ROB13_285 ROB13_277 ROB13_286 ROB13_290 ROB13_291 ROB13_287 ROB13_275 ROB13_282 Productive Andesite Working Old Drilling 2014 Fault Limite Zona Favorable Explanation Portal Rhyolite Socavon Rhyolite Buena Andesite Piaxtla Intrusive 200 m0 100 DDH Au g/t Ag g/t TW m ROB13_274 4.3 293 0.5 3.8 142 0.4 3.4 271 0.4 ROB13_275 10.0 281 10.8 ROB13_276 1.9 102 1.9 ROB13_277 19.8 1383 1.3 ROB13_281 5.5 228 1.8 ROB13_282 12.5 467 3.2 14.7 597 1.3 ROB13_284 3.9 172 0.5 ROB13_285 4.1 361 1.7 ROB13_286 21.1 262 2.0 ROB13_287 100.8 732 2.5 ROB13_290 4.8 6 0.6 ROB13_291 6.1 174 0.4 ROB13_293 7.4 508 1.8 SAN DIMAS 2014 Robertita Targets
  103. 103. TSX:P I NYSE:PPP I 103 Victoria Orebody NE 500 msnm 700 msnm 300 msnm 200 m0 100 500 msnm 700 msnm 300 msnm DDH 2013 DDH 2012 Pending Not Significant Planned DDH Au g/t Ag g/t TW m VIC13_282 5.7 142 1.1 VIC13_284 25.8 318 0.4 VIC13_287 8.7 507 0.7 VIC13_288 3.2 57 2.9 VIC13_289 81.7 4,536 7.2 VIC13_290 19.2 993 3.1 VIC13_291 85.0 2,716 9.1 VIC13_293 57.8 1,724 1.1 VIC13_294 20.8 1,043 11.4 VIC13_288 VIC13_293 VIC13_290 VIC13_287 VIC13_294 VIC13_289 VIC13_291 VIC13_284 VIC13_282 SAN DIMAS 2014 Victoria Targets
  104. 104. TSX:P I NYSE:PPP I 104 Elev.400 m Elev.400 m Elev.800 m AL13-078 AL13-083 AL13-083 AL13-079 AL13-076 AL13-081 AL13-074 AL13-075 AL13-057 AL13-063 AL13-058 AL13-070 AL13-065 AL13-056 AL13-062 AL13-071(1) AL13-066 AL13-067 AL13-061 AL13-069 AL13-085 AL13-086AL13-072 AL13-084 AL13-073 AL13-088 AL13-089 AL13-073 AL13-077 AL13-080 Elev.800 m AL13-059 AL13-091 AL13-092 Proceso AL13-090 SW NE 200 m0 100 Productive Andesite Working Old Drilling 2014 Fault Limite Zona Favorable Explanation Portal Rhyolite Socavon Rhyolite Buena Andesite Piaxtla Intrusive SAN DIMAS 2014 Alexa Targets
  105. 105. TSX:P I NYSE:PPP I 105 0 1 2km Tayoltita Mill Treviño Tunnel Arana Hanging Wall Block Central Block Tayoltita Block West Block Tunnel sProposed Tunnels Vein Fault River EL CRISTO TUNEL ESCONDIDO TRINIDA DSAN JOSE LUZ Y REYES/PEREZ ESPERANZA TESCALAMA SAN VICENTE SAN JUAN CAMICHIN VERDOSA 2014 DDH proposal targets ORDER OF PRIORITY 1. Luz y Reyes 3,000 m 2. Hedionda 240 m 3. San Jose 1,200 m 4. Trinidad 900 m 5. El Cristo 2,100 m 6. Camichin 960 m 7. Veta Nueva 600 m 8. Verdosa 1,420 m 9. San Vicente 1,260 m 10. San Juan 1,500 m 11. Carmen/Sin Nombre 1,920 m 12. Santa Cruz/Agua Dulce 1,350 m 13. Coronado 1,280 m 14. Carmen Escobosa 1,040 m 15. San Rafael 420 m 16. Tescalama 320 m 17. Esperanza 420 m TOTAL 20,000 m SAN DIMAS 2014 Regional Exploration Targets
  106. 106. TSX:P I NYSE:PPP I 106 Noche Buena mine N 2’671,000 N 398,000E 399,000E 400,000E 401,000E 2’670,000 N 2’671,000 E 2’670,000 N 398,000E 399,000E 400,000E 401,000E 0 250 500 Escala Grafica Tunnels Proposed Tunnels Vein Fault River SAN DIMAS Regional Exploration 2014 LUZ Y REYES / PEREZ Vein
  107. 107. TSX:P I NYSE:PPP I 107 Sinaloa Fault SW NE ? 1,100 msnm 900 msnm DDH Pending Not Significant Planned DDH 2013 Significant 1,100 msnm 900 msnm Looking NW LYR13_003 LYR13_001 200 m0 100 DDH Au g/t Ag g/t TW m LYR13_001 2.3 351 0.6 LYR13_002 7.4 528 11.9 LYR13_003 5.6 445 0.8 LYR13_004 1.8 296 0.5 LYR13_005 5.4 803 0.7 LYR13_007 12.3 206 2.6 LYR13_008 1.0 230 0.4 LYR13_009 12.0 2,109 3.2 3.8 517 3.8 LYR13_008 LYR13_004 LYR13_002 LYR13_005 LYR13_009 LYR13_007 INTRUSIVE ANDESITE LAS CUMBRES RHYOLITE PRODUCTIVE ANDESITE PORTAL RHYOLITE BUELNA ANDESITE SOCAVON RHYOLITE BOLAÑOS DIKE ARANA INTRUSIVE CAMICHIN INTRUSIVE PIAXTLA INTRUSIVE LEGEND Luz y Reyes/Perez: 6 DDH; 3,000m • To continue exploring its extension inside favorable horizon towards NE and SW (600m) based on promising preliminary results from 2013 and prepare it for the Mine Exploration delineation program. SAN DIMAS 2014 Regional Exploration Target – Luz Y Reyes/Perez
  108. 108. TSX:P I NYSE:PPP I 108 2014 VENTANAS DISTRICT PROGRAM o Not covered by Silver Purchase Agreement o Ventanas property 3,300 ha located 29km (straight line) south of San Dimas o 17 mines commencing 1757 and stopped in 1810. The mines have been discontinuously exploited between 1880 and 1973. 820m of tunnels, 1,320m of drifting and 9,282m in 36 DDH o Released resources in Mala Noche vein (NI 43-101): o Indicated: 155,000 tonnes @ 2.49g/t Au and 258g/t Ag o Inferred : 229,400 tonnes @ 2.31g/t Au and 412g/t Ag o Underground and open pit targets o DDH program commenced in November 2013 and continues in 2014 o Two veins will be drilled: Valenciana and Mala Noche; 12 holes(*); 2,000m(*) o Systematic channel sampling in Valenciana vein totalizing 20 trenches (1,100m) and sampling of 13 trenches (700m). o Rebuild and improve old camp in Ventanas, including core shack, access roads and Internet communication o Total budget approximately $0.9 million VENTANAS Exploration Program
  109. 109. TSX:P I NYSE:PPP I 109 "El Alacrán" Valenciana "MALA NOCHE" "VENTANAS" "LA LIBERTAD" NORTE REGIONAL GEOLOGY VENTANAS-MALA NOCHE IGNIMBRITAS ANDESITAS ALUVION INTRUSIVO NORTE MINA LA CONCEPCION MINA SAN CAYETANO Pueblo de Villa Coronas (Ventanas) Pueblo de Mala Noche Mala Noche California La Prieta 109 VENTANAS 2014 Exploration Program
  110. 110. Black Fox Mine Renaud Adams, C.O.O.
  111. 111. TSX:P I NYSE:PPP I 111 Location Timmins, Ontario Ownership 100% (8% gold stream at $504/oz) Metals Gold Mining Open pit & underground Capacity 2,200 TPD Mine Life Open Pit: ~3 years, U/G: ~7 years Mineral Resources and Mineral Reserves (DECEMBER 31, 2013, MINERAL RESOURCES INCLUDE MINERAL RESERVES) CLASSIFICATION TONNAGE ( TONNES) GOLD GRADE (G/T) CONT. GOLD ( OUNCES) Mineral Reserves Proven & Probable 4,469,000 4.6 660,800 Mineral Resources (includes Mineral Reserves) Measured & Indicated 4,942,149 5.2 822,542 Inferred 270,998 5.1 44,172 BLACK FOX Another Opportunity to Unlock Value Black Fox Gold Pour Black Fox Mill
  112. 112. TSX:P I NYSE:PPP I 112 BLACK FOX Proven Prospective District Destor-Porcupine Fault Strike Length ~200km
  113. 113. TSX:P I NYSE:PPP I 113 BLACK FOX Large ~2,000 Hectare Property 40 land parcels and 22 patented mining leases BLACK FOX MINE
  114. 114. TSX:P I NYSE:PPP I 114 BLACK FOX Property Layout Established Infrastructure
  115. 115. TSX:P I NYSE:PPP I 115 BLACK FOX Black Fox Mill Capacity of 2,200 TPD
  116. 116. TSX:P I NYSE:PPP I 116 o Our technical team recognized an under-capitalized underground mine o We have successfully turned San Dimas around from operating at ~1,500 TPD with variable, below reserve grade results to 2,500 TPD at reserve grade in 2 years o Potential at depth (proven regional geology), laterally and district represents significant upside BLACK FOX Operations Acquisition Rationale Challenge/Opportunity San Dimas Black Fox Under-capitalized underground development Yes Yes New block model necessary Yes No New mining method necessary Yes No Under-capitalized delineation drilling Yes Yes Under-capitalized exploration drilling Yes Yes
  117. 117. TSX:P I NYSE:PPP I 117 MINE RESERVE/ RESOURCE DEPTH (m) SHAFT/ RAMP DEPTH (m) RESERVE GRADE (g/t Au) RESOURCE GRADE (g/t Au) Holloway Mine 900 864 4.5 4.3 Doyon 1,040 1,040 n.a. 4.4 Holt Mine 1,200 1,075 4.7 4.3 Timmins West 1,200 1,200 5.2 5.5 Hoyle Pond 1,290 2,200 17.1 12.9 McIntyre 1,300 1,300 8.9 8.9 Lapa 1,600 1,400 5.9 5.2 Dome 1,665 1,665 4.4 4.3 Kirkland Lake 1,750 1,750 14.0 15.0 Hollinger 1,800 1,800 9.1 9.1 Westwood 2,650 2,650 9.9 11.1 LaRonde 3,200 2,860 5.0 4.6 Average 1,633 1,651 8.1 7.5 Black Fox 510 390 4.6 5.3 BLACK FOX Open for Expansion at Depth Black Fox Open-Pit Note: Company estimates.
  118. 118. TSX:P I NYSE:PPP I 118 BLACK FOX Black Fox Today TSX:P I NYSE:PPP I 118 29th April, 2013 News Release
  119. 119. TSX:P I NYSE:PPP I 119 0.00 1.00 2.00 3.00 4.00 5.00 6.00 0 5,000 10,000 15,000 20,000 25,000 30,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2E Q3E Q4E 2012 2013 2014 Mill Feed Grade Ounces produced Actual ounces Targeted Ounces Feed Grade BLACK FOX Production Review o Fewer ounces produced in Q4 2013 and Q1 2014 due to lower mill feed grade.
  120. 120. TSX:P I NYSE:PPP I 120 Mill Feed Grade Underground Grade Open Pit HG Grade 0 2 4 6 8 10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2E Q3E Q4E 2012 2013 2014 g/t Au BLACK FOX Grade Review o Underground mined grade has reduced in Q1 2014, likely due to lack of available stopes. o Open-pit mined grade has reduced in Q4 2013 and Q1 2014 because of mining from upper benches of Phase 3 where grade is lower closer to surface. o Overall grade has reduced  Lower underground production (high grade), resulting in more open pit mill feed (low grade).
  121. 121. TSX:P I NYSE:PPP I 121 0 500 1,000 1,500 2,000 2,500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2E Q3E Q4E 2012 2013 2014 Mill Throughput (tpd) Total Throughput UG tonnes BLACK FOX Underground Production Review o High grade underground tonnes have been replaced with lower grade open pit tonnes, resulting in lower mill feed grades. o Low mill throughput in Q2 2013 and Q1 2014 because of water issues. Water issues at the mill
  122. 122. TSX:P I NYSE:PPP I 122 0 500 1,000 1,500 2,000 2,500 3,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2E Q3E Q4E 2012 2013 2014 Dev. metres/ ore tpd Capital metres Oper. metres UG Ore tonnes BLACK FOX Underground Development Review o Reduction in capital development (mid-long term) has resulted in a lack of available stopes. o Need to increase operating development (short term). o Ore production lags development because of the time required for definition drilling and stope preparation.
  123. 123. TSX:P I NYSE:PPP I 123 BLACK FOX Underground Operating Cost Review o Unit underground operating costs are higher because of lower ore production. 0 200 400 600 800 1,000 1,200 0 50 100 150 200 250 300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2E Q3E Q4E 2012 2013 2014 Ore tpdUG Opex $/t Targeted UG Opex Actual UG Opex UG Ore Tonnes
  124. 124. TSX:P I NYSE:PPP I 124 BLACK FOX Underground Long Hole Proportion 0 50 100 150 200 250 0% 20% 40% 60% 80% 100% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2E Q3E Q4E 2012 2013 2014 UG Opex $/tProportion of tonnes Development MCAF / Shrinkage Longhole
  125. 125. TSX:P I NYSE:PPP I 125 BLACK FOX Overview • Health & Safety: • Health and Safety is #1 – Black Fox currently has over 250 days without Lost Time Accident • Maintaining well trained personnel • Best Safety Practices in place • Risks: • Mill Water Management Process (Currently mill at low throughput) • Available ore zones underground • Environment: • Raise Tailings Dam (Phase 7 & 8) • Continue to clean and deepen Water Management Pond • Proceed with Phase 9 & 10 tailings design • Open Pit Waste dump failure and repairs • Permits: • The 2,500 tpd Environmental Compliance Approval in place • Community , Stakeholders: • IBA agreement with Wahgoshig First Nation • Local township of Matheson
  126. 126. TSX:P I NYSE:PPP I 126 Challenges: • Underground development rate dropped off significantly in 2013 • Underground throughput impacted in Q4 2013 and Q1 2014 and expected Q2 2014 • Underground throughput decreased from 800 TPD in Q2 2013 to 350 TPD in Q1 2014 • Lack of short term drilling ahead Opportunities: • Mine history has proven that increasing development increases production • Inferred resources close to infrastructure are ready to be converted to reserves • Drill ready - exploration targets exist BLACK FOX Underground Challenges & Opportunities
  127. 127. TSX:P I NYSE:PPP I 127 Challenges: • Water inflows increased in 2013 in Open-Pit Phase 3 West expansion • 12% increase water volume from 2011 to 2012 • 179 % increase from 2012 to 2013 • Water inflow effected Pit and U/G production in Q2 2013 • Ramp closed for 2 days • UG West ramp was lost for a total of two (2) weeks • Dewatering system - design presently under review • Waste Rock Dump wall failure - remediation of East and North side complete. South side completed by June when dry Opportunities: • Opportunity to replace lower grade open-pit ounces with higher grade underground ounces • Phase 3 open-pit push back nearly completed, higher grades available in short term • Short term pumping system in place to mitigate water inflow, followed by a full dewatering system in 2014 BLACK FOX Open-pit Challenges & Opportunities
  128. 128. TSX:P I NYSE:PPP I 128 WATER ISSUES o March 2013 • Water Management Pond (“WMP”) depleted/frozen water (Extreme Cold weather) • March 2013 – added 1.5M gallons from outside source (River and Mine Shaft) o May 2013 • Rapid spring melt caused severe inflows to WMP • Mill was shut down in May 2013 for 18 days due to severe inflow of spring run off o March 2014 • WMP: depleted/frozen water. Mill did not operate at full capacity during March, now using same water source as 2013 MITIGATION PLAN o Additional excavation and raise of berms of WMP for extra water storage o AMEC looking at WMP water balance & capacity required, raise of berms and deepening of WMP BLACK FOX 2013 Water Challenges & Mitigation Plan
  129. 129. TSX:P I NYSE:PPP I 129 BLACK FOX Mill Tailings & Water Management Pond (“WMP”) TSX:P I NYSE:PPP I 129 Extra space available West of current tailings disposal
  130. 130. TSX:P I NYSE:PPP I 130 BLACK FOX Black Fox 2014 Mine Plan TSX:P I NYSE:PPP I 130
  131. 131. TSX:P I NYSE:PPP I 131 2014 (k$) Black Fox UG Capital Development 7,569 OP Waste Stripping 3,351 Mill, Tailings, and Environment 5,277 Projects 11,362 Overhauls 1,860 Other 512 Sub-Total Black Fox 37,598 Exploration 7,667 Grey Fox Exploration (Flow-Through) 9,090 Studies and Engineering 1,291 Sub-Total Grey Fox 10,381 Total Capex 46,387 BLACK FOX 2014 Capital Expenditures
  132. 132. TSX:P I NYSE:PPP I 132 BLACK FOX Operating Strategy Short Term o Operate the Open Pit and Underground at a rate of 2,400 tpd • Underground target 1,000 tpd @ 5.8 g/t • Open Pit High Grade target 1,200 tpd @ 3.0 g/t • Open Pit Low Grade target 200 tpd @ 1.0 g/t • Add two underground 50T trucks and one 6 yard scoop o Aggressive Diamond Drilling Program • Exploration drift open on level 500 and drilling to test depth extension of mine • Delineation of inferred resources (between levels 200 and 400), conversion into indicated category and accelerated definition drilling (West Zone) in order to open new mining sectors • Surface exploration program to attempt to extend life of Open Pit o Black Fox Crushing: • Temporary Contractor Crusher Installation Targeting end of March 2014 • May 2014 permanent “Contractor” crusher installed • Crushing ore to 3/8” , hauled to mill and processed @ at a rate of 2,400 • Crushing at mill no longer required, freeing up space for future HPGR or equivalent
  133. 133. TSX:P I NYSE:PPP I 133 BLACK FOX Operating Strategy Mid-Term o Continue ramp development below 520 and 540 level o Complete Grey Fox Feasibility by end of Q4 2014 • Mill expansion requirements: Complete all studies for incorporation of Grey Fox onto Black Fox milling facilities including grinding power required and metallurgy (leaching only or leaching flotation scenario) • Complete all mining studies: Open Pit vs Underground, mining methods and required infrastructure o Proceed with 10M tonne tailings upgrade o Advance Grey Fox: • Initiate exploration ramp • Final design (end of Q3 2014)
  134. 134. Black Fox Exploration Gabriel Voicu, V.P. Exploration
  135. 135. TSX:P I NYSE:PPP I 135 BLACK FOX Prolific Abitibi Greenstone Belt One of the world’s largest Archean greenstone belts
  136. 136. TSX:P I NYSE:PPP I 136 BLACK FOX Regional Geology (Hoxha and James, 1998) Archean age, lode gold deposit
  137. 137. TSX:P I NYSE:PPP I 137 BLACK FOX Typical Cross Section Destor-Porcupine Fault
  138. 138. TSX:P I NYSE:PPP I 138 BLACK FOX Black Fox Mine, 147 & Contact Zone Depositional Model Destor-Porcupine FaultArchean Lode Gold Deposits Depositional Model Producing / Past-Producing Mines Ross produced over 1 million ounces at a grade of 0.15 opt. Note the change in ore body shape over a vertical range of 1 km as one moves from a brittle to a ductile environment. 147&Contact Zone Brittle Deformation Depositional Model Ross Mine Composite Level Plans Upper portion of Ross has depositional characteristics similar to Brigus’ 147 Zone Ross Mine located 3 km south of 147 Zone Black Fox Mine Ductile Derformation
  139. 139. TSX:P I NYSE:PPP I 139 Contact and 147 Zone Location (Brittle Deformation Model) Ross Lake fault GREY FOX Contact and 147 (Zones located within Regional Graben
  140. 140. TSX:P I NYSE:PPP I 140 MINE RESERVE/ RESOURCE DEPTH (m) SHAFT/ RAMP DEPTH (m) RESERVE GRADE (g/t Au) RESOURCE GRADE (g/t Au) Holloway Mine 900 864 4.5 4.3 Doyon 1,040 1,040 n.a. 4.4 Holt Mine 1,200 1,075 4.7 4.3 Timmins West 1,200 1,200 5.2 5.5 Hoyle Pond 1,290 2,200 17.1 12.9 McIntyre 1,300 1,300 8.9 8.9 Lapa 1,600 1,400 5.9 5.2 Dome 1,665 1,665 4.4 4.3 Kirkland Lake 1,750 1,750 14.0 15.0 Hollinger 1,800 1,800 9.1 9.1 Westwood 2,650 2,650 9.9 11.1 LaRonde 3,200 2,860 5.0 4.6 Average 1,633 1,651 8.1 7.5 Black Fox 510 390 4.6 5.3 BLACK FOX Open for Expansion at Depth Black Fox Open-Pit Note: Company estimates.
  141. 141. TSX:P I NYSE:PPP I 141 BLACK FOX 2013 Reserves & Resources 1. The average gold grade for Proven and Probable Reserves is adjusted for dilution while Measured and Indicated Resources is not. Contained metal in estimated reserves remains subject to metallurgical recovery losses. 2. Black Fox reserves and resources are based on US$1,150/oz Au for 88% of production and US$500/oz Au for gold sold through the gold stream agreement from the Black Fox Technical Report prepared by Tetra Tech dated January 2011. The Black Fox open pit reserves and resources are reported at a 0.88 gpt cutoff and the underground reserves and resources are reported at a 2.54 gpt cutoff. Estimated Black Fox reserves and resources are shown as at December 31, 2013, net of mining depletion from the January, 2011 independent Technical Report. Estimated Gold Mineral Proven and Probable Reserves, as of December 31, 2013 CLASSIFICATION TONNAGE ( TONNES) GOLD GRADE (G/T) CONT. GOLD ( OUNCES) Mineral Reserves Proven & Probable 4,469,000 4.6 660,800 Mineral Resources (includes Mineral Reserves) Measured & Indicated 4,942,149 5.2 822,542 Inferred 270,998 5.1 44,172
  142. 142. TSX:P I NYSE:PPP I 142 o Several areas with high exploration potential: at surface (W and E extensions of the open pit) and underground (at depth, as well as extensions of the E, W, and Central zones) o The exploration holes will be drilled from surface and underground o The exploration development (drifting) will focus on level 9,500 (500 m below surface) to create new locations for drilling o The exploration program is flexible depending on results o The objectives are: • Increase the known resources at the Black Fox deposit • Find new extensions of the known zones at Black Fox and discover new mineralized areas • Re-assess the expansion of the open pit (phase 4) • Re-assess the exploration potential at depth • Transfer ounces from Inferred to Indicated category BLACK FOX 2014 Exploration & Delineation Program
  143. 143. TSX:P I NYSE:PPP I 143 • Black Fox Underground • Drilling : 47,700m = $6,200k • Exploration 37,700m – 130 holes ($4,900k) • Delineation 10,000m – 40 holes ($1,300k) • Black Fox Surface o Drilling : 7,650m = $1,000k o 25 Holes test down plunge of known mined out ore-shoots for east and east o 5 following down plunge of the north south structure further to the east. • Underground Exploration Drifting o Drilling : 335m @ $3,700/m = $1,233k Grand Total $8,433k BLACK FOX 2014 Exploration Budget
  144. 144. TSX:P I NYSE:PPP I 144 Exploration drift 325mL Barren area due to intruding dykes Black Fox dips south Level 235mL LEVEL 500ml Exploration Drift, Total of 800m length in 2014/2015 X 645-01-W 40.71g/t 26.75m 645-34-W 18.09g/t 37.80m 12.88gpt / 11.3m Longitudinal Section Looking North 3.40gpt / 15.4m Incl. 7.68gpt / 3.40m 15.02gpt / 3.3m BLACK FOX Exploration Drift
  145. 145. TSX:P I NYSE:PPP I 145 o Total Exploration Drifting (2014-15) 800m across o Total Exploration Drifting Cost $2.5milion o 2014 Only Exploration Drifting 335m along with three Drill Bays o 2014 Total Cost $1,233k o Approximately cost $3,700/meter o Completion Mid May Start of the first bay of DD Program BLACK FOX Exploration Drifting Program
  146. 146. TSX:P I NYSE:PPP I 146 Au concentrations, capped LEVEL 500mL WEST ZONE SHALLOW WEST ZONE DEEP CENTRE ZONE Indicated + Inferred Resources EAST /SOUTHEAST ZONEEAST ZONE BLACK FOX Exploration Potential
  147. 147. TSX:P I NYSE:PPP I 147 Surface West Surface East BLACK FOX Surface Exploration
  148. 148. TSX:P I NYSE:PPP I 148 CERRO DEL GALLO INCREASES PRIMERO’SPRODUCTION BY 60%12 Location 4 km from Black Fox - Timmins, ON Ownership 100% (No gold stream) Metals Gold Mining Open pit potential & Underground Exploration 3 rigs on site Permitting Currently underway Mineral Resources and Mineral Reserves (July 3, 2013) CLASSIFICATION TONNES (M) CAPPED Au (g/t) CONTAINED Au (oz) Indicated Resources 4.3 3.7 507,400 Total Inferred Resources 1.5 4.7 228,600 GREY FOX Promising Exploration Project Grey Fox Aerial Grey Fox Core
  149. 149. TSX:P I NYSE:PPP I 149 CERRO DEL GALLO INCREASES PRIMERO’SPRODUCTION BY 60%12 GREY FOX Contact, 147 and Grey Fox South Zone Geology
  150. 150. TSX:P I NYSE:PPP I 150 GFS 147 GFS CZ N Potential Underground Only Mining Scenario Resource @ 2.84 gpt Cut-Off Zone Category Tonnage Grade Ounces X 1000 gpt 147 Indicated 1,292 6.0 248,129 Inferred 394 5.1 64,346 1,686 5.8 312,475 CZ Indicated 623 6.0 119,595 Inferred 552 6.4 114,116 1,176 6.2 233,711 GFS Indicated 188 5.7 34,356 Inferred 224 4.8 34,407 412 5.2 68,763 Total All 3,275 5.9 614,949  Red: Indicated Resource  Green: Inferred Resource  Approximately 80% of current Resource drilled at 15m centres  *NI 43-101 compliant independent Resource Statement July 30, 2013 completed by InnovExplo, Val-d’Or, Quebec  Grade is calculated for all underground resource >2.84 gpt GREY FOX Contact, 147 and Grey Fox South Zone Block Model
  151. 151. TSX:P I NYSE:PPP I 151 GREY FOX 2014 Exploration Drilling Program Contact, 147 and Grey Fox South Zone Expansion and Definition Drilling $8 Million Budget = 60,000 metres Indicated spacing is 20 to 25m drill centres Inferred spacing is 25 to 40m drill centres
  152. 152. TSX:P I NYSE:PPP I 152 o Three areas with high exploration potential: Grey Fox, Old Stock Mine and Pike River Property (between Black Fox and Grey Fox) o Other geophysical and geochemical anomalies are defined on the property with potential to become interesting exploration targets o All exploration holes will be drilled from the surface o The exploration program is flexible depending on results o The objectives are: • Increase the known resources at the Grey Fox deposit • Transfer Inferred to Indicated category • Find new extensions of the known zones at Grey Fox and discover new mineralized areas • Re-assess the exploration potential at the old Stock Mine and adjacent area that show interesting geophysical anomalies • Assess the exploration potential between Black Fox and Grey Fox (Pike River) (4 km) where only limited exploration has been done BLACK FOX Regional Exploration Program
  153. 153. TSX:P I NYSE:PPP I 153 Known Deposits Grey Fox 147, Contact and GFS Zones • Drilling : 61,000m = $8.0M • Expansion 37,000m • Delineation 22,000m • 2,000m Planned Condemnation Drilling Under Proposed Waste Water Pond Black Fox Mill (Stock Mine) • Drilling : 7,700m = $1.0M • 13 Holes test down plunge of known mined out ore-shoots • 5 Grassroots Exploration Drill Holes to test E3 IP and Mag Geophysical Target Grassroots New Deposit Discovery Drilling Pike River Property (Between Grey Fox and Black Fox Mine) 22 Drill Holes : 7,700m $1.0M Grand Total $10.0M GREY FOX 2014 Flow-Through Regional Exploration Program
  154. 154. TSX:P I NYSE:PPP I 154 CERRO DEL GALLO INCREASES PRIMERO’SPRODUCTION BY 60%12 GREY FOX Contact, 147 and Grey Fox South Zone GFZ147 GFS CZ Grey Fox Gold Deposits Red: Indicated Resource Green: Inferred Resource Black Fox Mine Pike River Grassroots Exploration Mine Site Exploration Grey Fox Resource Expansion and Definition
  155. 155. Cerro del Gallo Louis Toner, V.P. Projects
  156. 156. TSX:P I NYSE:PPP I 156 CERRO DEL GALLO INCREASES PRIMERO’SPRODUCTION BY 60%12 Location Guanajuato State Ownership 100% Metals Gold, silver & copper Mining Open pit, heap leach, and/or conventional mill Excellent Infrastructure: Active mining district, skilled local workforce, grid power, water, sealed roads, equipment suppliers and established transport routes Supportive Community: District has produced 1.14 billion ounces of silver and 6.5 million ounces of gold over its 450 year mining history Construction Decision: Contingent on project achieving a 15% IRR at $1,100/oz gold CERRO DEL GALLO Potential Near Term Production Cerro del Gallo Deposit Cerro del Gallo Exploration Office Potential near-term 95,000 AuEq. oz
  157. 157. TSX:P I NYSE:PPP I 157 o Guanajuato is an historic mining district, with production dating back to 1558 o Major engineering facilities & workforce centres < 60min o International airport < 1.5hrs from project o Power, water, sealed roads o Supportive community Builds on established presence in Mexico CERRO DEL GALLO Mining Friendly Guanajuato Cerro Del Gallo Project Gold-Silver-Copper Development Project Guanajuato, Mexico Ventanas Property Exploration Property Durango, Mexico San Dimas Mine Gold-Silver Mine Durango, Mexico
  158. 158. TSX:P I NYSE:PPP I 158See final slide for footnotes. Construction decision expected in Q3 2014 TECHNICAL DETAILS 2 (At $1,341 per ounce of gold, $25.58 per ounce of silver, $7,582 per tonne of copper) Production Start 13 (Phase I Heap Leach) End 2015 Proven and Probable Reserves 13 (Phase I Heap Leach) 32.2 Mt @ 1.14 g/t AuEq or 1.2Moz Measured and Indicated Resources 13 (Phase I Heap Leach In-Pit Excluding Proven and Probable Reserves) 47.9 Mt @ 1.06 g/t AuEq or 1.6Moz Production 13 (Phase I Average Annual) 94,600 AuEq. Oz Cash cost 6,14, 15 (Co-Product, Excluding Royalties) $650-700 per ounce Heap Leach Grades 12 0.7g/t Au, 14.8g/t Ag, 0.08% Cu Strip Ratio 12 0.9:1 Phase I Mine Life 12 7.2 years Capital Cost Estimate 14 $165 million 2013 Capital Expenditures 14 $7.5 million 2014E Capital Expenditures $12.9 million CERRO DEL GALLO DFS Economics
  159. 159. TSX:P I NYSE:PPP I 159 o Nominal Annual Dry Ore Throughput 4,500,000 t/a o Total HLP Material: 32.2 million t  Weathered Ore 13.6 million t  Partially Oxidised Ore 18.6 million t  Fresh Ores not required at this stage o Total dump material: 29.4 million t o Total Ore Mined 61.6 million t o Average Yearly Production:  Gold: 65 thousand oz  Silver: 1.3 million oz  Copper: 885 tons o Mine Life (Phase 1) 7.2 years CERRO DEL GALLO Design Criteria
  160. 160. TSX:P I NYSE:PPP I 160 o Crushing in three stages using a HPGR as a tertiary crusher o Agglomeration and stacking o Cyanide heap leaching o Copper precipitation and cyanide recovery via (SART) o Carbon in columns adsorption o Elution o Electrowinning and gold room refining o Carbon regeneration o Reagent mixing, storage and distribution o Truck Shop & maintenance facilities o Administration buildings CERRO DEL GALLO Scope
  161. 161. TSX:P I NYSE:PPP I 161 o DFS (2012): CAPEX: $165 M, Sustaining: $32M o Company Target: CAPEX: $150M, Sustaining: $15M o Company Target: OPEX: Reduce by $2 per ton o Mining: Optimized Mining Strategy (high grades first/stockpiling) o Key restrictions: o No changes on design criteria from DFS (ore output, recovery) o No impact on safety CERRO DEL GALLO Capital Reduction Objectives
  162. 162. TSX:P I NYSE:PPP I 162 CERRO DEL GALLO Capital Reduction Opportunities Potential $20 million in capital savings from: 1. Cold stripping as an alternative/addition to SART 2. Optimize heap leach pad base design 3. Update capital cost for 115kV power line with improved definition 4. Update civil works costs 5. Defer waste stripping 6. Update fresh water design 7. Optimise conveyor designs ie. Reduce lengths 8. Outsource silos and feed equipment operation for cement/lime 9. Update cost for 13.8 kV powerline relocation 10. Reduce to a single stacker 11. Use pre-fab or modular facilities 12. Lease or buy used equipment and consider Chinese equipment 13. Contract drill/blasting 14. Optimize piping design 15. Consider owner managed construction
  163. 163. TSX:P I NYSE:PPP I 163 In 2013 Primero initiated a full review of its Cerro del Gallo – Phase 1 project in order to optimize the overall outcome of the May 2012 DFS: • Land holdings increased from approximately 40% to 60%. • Purchased 100% of the required process water rights. • Permitting advanced: • Preparation of the environmental impact assessment (MIA) and change in land use (ETJ) permits • Ground water monitoring, geochemical analysis of the waste rock and search for ground water for the process (borefield analysis) by SRK Consulting. • Geotechnical assessment and groundwater management by Golder Associates. • Design optimization and cost reduction: • Completion the Front End Engineering Design (FEED). Basic design focused on plant optimization, improved definition of primary power supply, water pipeline routing, detailed site survey, etc., as well as a cost reduction exercise and detailed capital cost estimate update by Sedgman S.A. • Basic design of leach pads, solution ponds, waste dump and emergency ponds by Golder Associates . CERRO DEL GALLO 2013 Review
  164. 164. TSX:P I NYSE:PPP I 164 Approximately $7.5 M of the proposed 2014 budget was work not spent and carried over from 2013, including: o Land acquisition: Purchases of land went much slower than anticipated due to difficulties with land titles, slow negotiations, unavailability of land owners etc. o Exploration: Rejection of permit application to construct new roads to access drilling sites has delayed the completion of the 2013 drilling program. o Phase 2 development: Metallurgical laboratory work was delayed to Q1 2014. o Stakeholders: Mapping started in Q4 2013 however bulk of activity will carry over into 2014. CERRO DEL GALLO 2013 Budget Review
  165. 165. TSX:P I NYSE:PPP I 165 Cerro del Gallo Expenses 2014 (million) Permitting, land, water rights, stakeholder relations and administration $8.7 Engineering $1.7 Exploration $2.5 Phase 2 Development $0 Total $12.9 CERRO DEL GALLO 2014 Budget Summary
  166. 166. TSX:P I NYSE:PPP I 166 The main objectives of the 2014 Cerro del Gallo capital expenditures are as follows: o Permitting: Complete the permitting process by submitting the MIA and ETJ to the Mexican environmental authorities (SEMARNAT) and obtain the necessary permits to start construction by mid year 2014 o Land purchases and water rights: Purchase all remaining land not already acquired by Primero (20% outstanding). Water rights already secured. o Engineering: Continue the engineering to a point where we will be ready to purchase all main equipment and to award civil works construction contract. Half of the 2014 engineering budget is assigned to the metallurgical program. Update 43-101. o Exploration: Complete drilling program started in 2013, move to regional exploration o Phase 2 development: On hold until phase 1 project is approved and proceeding o Administration: Maintain existing administration in place o Stakeholders: Continue stakeholder mapping, start stakeholder communications program and define appropriate stakeholder projects o Construction decision: Targeting mid-2014 for a construction decision CERRO DEL GALLO 2014 Objectives
  167. 167. TSX:P I NYSE:PPP I 167 Cross Section 1028NE (Az. 210°) 2331600N 2331800N 2332000N 2332200N 288600E 288700E 288800E 288900E 2200 m 2000 m 1800 m 2200 m 2000 m Weak Oxidation Strong Oxidation Au Domain Felsic Intrusive Faults Pit Design 1st Phase Legend Pit Design 2nd Phase 200 m CERRO DEL GALLO Alteration Model Review
  168. 168. TSX:P I NYSE:PPP I 168 CERRO DEL GALLO Site Layout
  169. 169. TSX:P I NYSE:PPP I 169 169 SITE LAYOUT
  170. 170. TSX:P I NYSE:PPP I 170 CERRO DEL GALLO 1st Stage Heap Leach Flow Sheet
  171. 171. TSX:P I NYSE:PPP I 171 2013 2014 2015 2016 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Basic Engineering Permitting/Land Acquisition Site Survey Leach Pad Design & Earth Works Infill Drilling and MET Tests Acid Generation Tests SART Optimization Procurement & Detailed Engineering Plant & Leach Pad Construction Commissioning Production Phase II Feasibility Study CERRO DEL GALLO Cerro Del Gallo Development Plan 171
  172. 172. Cerro del Gallo Exploration Gabriel Voicu, V.P. Exploration
  173. 173. TSX:P I NYSE:PPP I 173 o The Cerro del Gallo copper-gold-silver deposit can be considered to be a member of a distinct subclass of “reduced” porphyry-style copper-gold mineralization (Rowins, 2000). o Propylitic alteration boundaries are gradational and irregular, and more widespread than potassic alteration. o This alteration pattern is consistent with many other porphyry copper-gold deposits throughout the world. o Tellurium-bearing minerals are also common in porphyry copper-gold deposits, as they are at Cerro del Gallo. CERRO DEL GALLO Geology
  174. 174. TSX:P I NYSE:PPP I 174 Providencia Limestone San Antón Volcaniclastics Espiritu Santo Group LEGEND Vein 2 Km Providencia Limestone San Antón Volcaniclastics Espiritu Santo Group Cerro del Gallo La Paz vein CERRO DEL GALLO Local Geology
  175. 175. TSX:P I NYSE:PPP I 175 o Grid of 50 m spaced sections oriented 030º/210º TN and 50 m spaced drill collars with predominantly 60º inclined drilling for diamond core and reverse circulation drill holes along section planes. o Drilling has been completed over an area of approximately 1500 m in a north-south direction and 1400 m in an east-west direction centered on the peak of Cerro del Gallo. o Drill holes have been drilled to a maximum depth of 700 m below surface, with the large majority of holes drilled to a depth of less than 300 m below surface due to the limited capabilities of the drilling equipment. 175 CERRO DEL GALLO Resource Model
  176. 176. TSX:P I NYSE:PPP I 176 176 CERRO DEL GALLO Resource Model Cont.
  177. 177. TSX:P I NYSE:PPP I 177 Legend Au Domain Cu Domain Felsic intrusive contour CERRO DEL GALLO Gold & Copper Domain M&I Resources of 3.2Moz of Gold or 5.6Moz of Gold Equivalent 12,13,
  178. 178. TSX:P I NYSE:PPP I 178 Category M Tonnes Au Au Ag Ag Cu Cu Au Eq AuEq (g/t) (M ozs) (g/t) (M ozs) (%) (M lbs) (g/t) (M oz) Proven 28.2 0.71 0.64 15.1 13.7 0.08 50.2 1.15 1.05 Probable 4.0 0.54 0.07 13.2 1.7 0.07 6.2 0.93 0.12 Proven & Probable 32.2 0.69 0.71 14.8 15.3 0.08 56.4 1.14 1.18 Category M Tonnes Au Au Ag Ag Cu Cu Au Eq AuEq (g/t) (M ozs) (g/t) (M ozs) (%) (M lbs) (g/t) (M oz) Measured 39.9 0.61 0.78 13.8 17.71 0.10 88.8 1.07 1.37 Indicated 8.0 0.55 0.14 11.0 2.83 0.08 14.6 0.92 0.24 Measured & Indicated 47.9 0.60 0.92 13.3 20.55 0.1 103.4 1.06 1.64 Total Resources Within the Gold Domain2 Phase I Heap Leach In-Pit Proven and Probable Reserves3 In-Pit Resources (excluding Proven and Probable Reserves)4,5 Category M Tonnes Au Au Ag Ag Cu Cu Au Eq AuEq (g/t) (M ozs) (g/t) (M ozs) (%) (M lbs) (g/t) (M oz) Measured 129 0.54 2.24 12.0 49.8 0.09 256.0 0.94 3.91 Indicated 80 0.38 0.98 8.0 20.6 0.08 141.1 0.69 1.77 Measured & Indicated 209 0.48 3.22 11.0 70.3 0.08 396.9 0.83 5.58 Inferred 20 0.3 0.19 7.0 4.5 0.09 39.7 0.59 0.38 1. “Technical Report First Stage Heap Leach Feasibility Study, Cerro del Gallo Gold Silver Project, Guanajuato, Mexico” June 2012 (“Feasibility Study”). Gold equivalent ounces calculated by Cerro Resources using gold, silver and copper prices of US$1,341/oz, US$25.58/oz and US$7,582/t respectively. 2. These resources are reported using internal cut-off grade of 0.2 g/tAu as per Feasibility Study, 2012 and Golder Associates Technical Report, 2008. 3. These reserves are reported using internal cut-off grades of 0.24 and 0.29 gAuEq/t for weathered and partially oxidized, respectively. 4. These resources are reported using internal cut-off grades of 0.24, 0.29, and 0.34 gAuEq/t for weathered, partially oxidized, and fresh material resp. 5. See note 7 in January 23, 2013 News Release “Primero achieves 2012 Guidance and Provides 2013 Outlook”. CERRO DEL GALLO Reserves and In-Pit Resources1
  179. 179. TSX:P I NYSE:PPP I 179 o San Antón property: 25,269 ha (12 concessions). o Open pit project with historical epithermal veins exploited. o 80% of the property almost unexplored. o Potential of new open pit/underground projects in the district. o New techniques (as Geophysical Aster survey) as exploration tools and re-interpretation of historic airborne magnetic survey. o Secure and friendly mine zone with hundred years of mine activity (Guanajuato District). o Good access and infrastructure CERRO DEL GALLO 2014 Cerro del Gallo Exploration Program
  180. 180. TSX:P I NYSE:PPP I 180 o Analyze using the drilling, geochemical and geophysical data the possible presence of several types of ore deposits on the property o Cover all the property with stream sediment sampling to define geochemical anomalies. o Geological reconnaissance on the property. o Soil sampling and focus on detailed geological mapping of new defined targets. o Using the geological, geochemical and geophysical information, define drill targets (10,000m DDH). CERRO DEL GALLO 2014 Cerro del Gallo Exploration Objectives
  181. 181. TSX:P I NYSE:PPP I 181 o The area is prospective for porphyry copper-gold/ IRGS, sedimentary/volcanogenic massive sulfides, skarn and low sulfidation epithermal vein systems. o Carmen-Providencia low sulfidation epithermal vein system located 1.8km west of Cerro del Gallo. Several encouraging silver-gold intersections were reported over a strike length of 1 km. Early stage regional prospecting previously returned(*):  1.5m @ 3.40g/t Au and 590g/t Ag  4.6m @ 3.52g/t Au and 428g/t Ag  3.6m @ 1.57g/t Au and 359g/t Ag  4.6m @ 1.91g/t Au and 239g/t Ag  6.0m @ 1.70g/t Au and 243g/t Ag  3.1m @ 1.05g/t Au and 200g/t Ag  7.6m @ 1.51g/t Au and 168g/t Ag (*)As reported by Cerro Resources in November 16, 2012 Investor Presentation CERRO DEL GALLO Exploration Potential o Since Primero’s acquisition of the property in 2013, exploration resumed at Cerro del Gallo with much of the budget focused on infill & condemnation drilling, some low sulfidation epithermal vein system targets were drilled with significant results
  182. 182. TSX:P I NYSE:PPP I 182 CP13-027 CP13-028 CP13-031 o First exploration activity since 2008 o 2013: $2 million spent on exploration o 7,400 meter drill program for infill and condemnation drilling & 2,500 meter in district exploration drilling o 2014: $2.5 millions exploration budget o Only a very small portion of the entire district has been explored 1 km 2013 district exploration results:  8.1m @ 3.64g/t Au & 116g/t Ag (CP13-027)  0.9m @ 1.18g/t Au & 309g/t Ag (CP13-028)  0.8m @ 3.85g/t Au & 1,031g/t Ag (CP13-031) 11 holes pending results DDH Infill & Condem. DDH Exploration Arenite Limestone Tuff Felsic Intrusive Vein LEGEND CERRO DEL GALLO 2014 Exploration Program
  183. 183. TSX:P I NYSE:PPP I 183 Conventional soil sampling o 1st priority: Carmen-Providencia, Ave de Gracia, Espíritu Santo Hill. o 2nd priority: El Sisote town, Tranquilino, La Paz. o 3rd priority: San Luis Rey. 1 Km 11 1 2 2 3 3 La Paz vein Soil sample program (grid spacing 100m x 100m) 1 Priority Historic drill holes 2013 drill holes 2014 drill holes Legend 183 CERRO DEL GALLO 2014 Exploration Program
  184. 184. TSX:P I NYSE:PPP I 184 CERRO DEL GALLO Exploration Potential
  185. 185. TSX:P I NYSE:PPP I 185 CERRO DEL GALLO Exploration Potential
  186. 186. TSX:P I NYSE:PPP I 186 CERRO DEL GALLO Exploration Potential
  187. 187. Corporate Development David Sandison, V.P. Corporate Development
  188. 188. TSX:P I NYSE:PPP I 188 Corporate Development Objectives o Project(s) which support balanced objectives of becoming a low full-cost, mid-tier producer based in the Americas o Projects which improve and sustain the company’s ability to generate growing free cash flow o Driven by investment return criteria o Maintain a strong Balance Sheet which can support completion of opportunistic transactions quickly o Reserves & resources already quantified to minimum PEA level with continuing upside o Maximize due-diligence activity with own internal team & fill specialist gaps as needed
  189. 189. TSX:P I NYSE:PPP I 189 Corporate Development Objectives o Opportunities which increase corporate skill sets & future options for growth o Opportunities which piggyback on existing operations and support concepts of “regional platforms” o Opportunities which are within the company’s ability to appropriately finance with equity & debt o Projects which also contain earlier stage development & exploration asset options which are undervalued o Equally open to UG and Open-Pit development opportunities o No untested or developmental technology issues
  190. 190. TSX:P I NYSE:PPP I 190 M&A Screening Guidelines o Precious Metals (Gold and/or Silver) > 80% of Net Smelter Returns o Projects at pre-feasibility or better o Production timeline: In production to 5 years till production o Annual production scale: minimum of 75,000oz AuEq for in-production assets & 100,000 oz AuEq. for development assets o Exploration Upside: mandatory & high probability to expand R&R o Mine-Life: minimum of 7 years for in-production assets & +10 years for development assets o TACC Structure: market competitive o Accretion Metrics: Positive NAV/share & long term cash flow/share using mid-term consensus pricing at time of transaction
  191. 191. TSX:P I NYSE:PPP I 191 Regional Focus o Restricted to Americas in areas favorable to mining investment from investor and community license o Jurisdictions within Americas where company or management has previous experience & knowledge o In the event that the jurisdiction is new to the company – credible and experienced in country industry team in place required o Avoid/very limited interest in remote locations with heavy infrastructure demands and social/political challenges
  192. 192. Appendices
  193. 193. TSX:P I NYSE:PPP I 193 Primero sells 50% of annual silver production above 3.5 million ounces at spot o Remainder sold at ~$4 per ounce under silver purchase agreement o Threshold commences August 6 to following August 5 o Threshold increases to 6.0 million ounces on August 6, 2014 o Expansion anticipated to generate meaningful silver spot sales post August 6, 2014 Recent Tax Ruling Created Positive Leverage to Silver 25% 75% SILVER AS PERCENTAGE OF 2013E REVENUE Silver Gold SAN DIMAS Positive Leverage to Silver
  194. 194. TSX:P I NYSE:PPP I 194 CLASSIFICATION TONNAGE (MILLION TONNES) GOLD GRADE (G/T) SILVER GRADE (G/ T) CONTAINED GOLD (000 OUNCES) CONTAINED SILVER (000 OUNCES) Mineral Reserves Proven & Probable 4.893 5.5 315 870 49,479 Mineral Resources Measured & Indicated 4.282 7.2 419 997 57,713 Inferred 7,333 4.2 310 998 72,647 Notes to Mineral Reserve Statement: Cutoff grade of 2.7 grams per tonne (”g/t”) gold equivalent (“AuEq”) based on total operating cost of US$104.97/t. Metal prices assumed are gold US$1,250 per troy ounce and silver US$20 per troy ounce. Silver supply contract obligations have been referenced in determining overall vein reserve estimate viability. Processing recovery factors for gold and silver of 97% and 94% assumed. Exchange rate assumed is 13 pesos/US$1.00. The Mineral Reserve estimates were prepared under the supervision of Mr. Gabriel Voicu P.Geo., Vice President, Geology and Exploration, Primero and a QP for the purposes of National Instrument 43-101 (“NI 43-101”). Notes to Mineral Resource Statement: Mineral Resources are total and include those resources converted to Mineral Reserves. A 2.0g/t AuEq cutoff grade is applied and the gold equivalent is calculated at a gold price of US$1,300 per troy ounce and a silver price of US$20 per troy ounce. A constant bulk density of 2.7 tonnes/m3 has been used. The Mineral Resource estimates were prepared by Mr. Rodney Webster MAusIMM, MAIG and Mr. J. Morton Shannon P.Geo., both of AMC Mining Consultants (Canada) Ltd. and a QP for the purposes of NI 43-101. Additional exploration potential was estimated at 6-10 million tonnes at grade ranges of 3-5 grams per tonne of gold and 200-400 grams per tonne of silver as of December 31, 2011. It should be noted that these targets are conceptual in nature. There has been insufficient exploration to define an associated Mineral Resource and it is uncertain if further exploration will result in the target being delineated as a Mineral Resource. SAN DIMAS Mineral Resources and Mineral Reserves (DECEMBER 31, 2013, MINERAL RESOURCES INCLUDE MINERAL RESERVES)
  195. 195. TSX:P I NYSE:PPP I 195 Category M Tonnes Au Au Ag Ag Cu Cu Au Eq AuEq (g/t) (M ozs) (g/t) (M ozs) (%) (M lbs) (g/t) (M oz) Proven 28.2 0.71 0.64 15.1 13.7 0.08 50.2 1.15 1.05 Probable 4.0 0.54 0.07 13.2 1.7 0.07 6.2 0.93 0.12 Proven & Probable 32.2 0.69 0.71 14.8 15.3 0.08 56.4 1.14 1.18 Category M Tonnes Au Au Ag Ag Cu Cu Au Eq AuEq (g/t) (M ozs) (g/t) (M ozs) (%) (M lbs) (g/t) (M oz) Measured 39.9 0.61 0.78 13.8 17.71 0.10 88.8 1.07 1.37 Indicated 8.0 0.55 0.14 11.0 2.83 0.08 14.6 0.92 0.24 Measured & Indicated 47.9 0.60 0.92 13.3 20.55 0.1 103.4 1.06 1.64 Total Resources Within the Gold Domain2 Phase I Heap Leach In-Pit Proven and Probable Reserves3 In-Pit Resources (excluding Proven and Probable Reserves)4,5 Category M Tonnes Au Au Ag Ag Cu Cu Au Eq AuEq (g/t) (M ozs) (g/t) (M ozs) (%) (M lbs) (g/t) (M oz) Measured 129 0.54 2.24 12.0 49.8 0.09 256.0 0.94 3.91 Indicated 80 0.38 0.98 8.0 20.6 0.08 141.1 0.69 1.77 Measured & Indicated 209 0.48 3.22 11.0 70.3 0.08 396.9 0.83 5.58 Inferred 20 0.3 0.19 7.0 4.5 0.09 39.7 0.59 0.38 1. “Technical Report First Stage Heap Leach Feasibility Study, Cerro del Gallo Gold Silver Project, Guanajuato, Mexico” June 2012 (“Feasibility Study”). Gold equivalent ounces calculated by Cerro Resources using gold, silver and copper prices of US$1,341/oz, US$25.58/oz and US$7,582/t respectively. 2. These resources are reported using internal cut-off grade of 0.2 g/tAu as per Feasibility Study, 2012 and Golder Associates Technical Report, 2008. 3. These reserves are reported using internal cut-off grades of 0.24 and 0.29 gAuEq/t for weathered and partially oxidized, respectively. 4. These resources are reported using internal cut-off grades of 0.24, 0.29, and 0.34 gAuEq/t for weathered, partially oxidized, and fresh material resp. 5. See note 7 in January 23, 2013 News Release “Primero achieves 2012 Guidance and Provides 2013 Outlook”. CERRO DEL GALLO Reserves and In-Pit Resources1
  196. 196. TSX:P I NYSE:PPP I 196 Notes: 1. The average gold grade for Proven and Probable Reserves is adjusted for dilution while Measured and Indicated Resources is not. Contained metal in estimated reserves remains subject to metallurgical recovery losses. 2. Black Fox reserves and resources are based on US$1,150/oz Au for 88% of production and US$500/oz Au for gold sold through the gold stream agreement from the NI 43-101 Technical Report prepared by Tetra Tech dated January 2011. The Black Fox open pit reserves and resources are reported at a 0.88 gpt cutoff and the underground reserves and resources are reported at a 2.54 gpt cutoff. Estimated Black Fox reserves and resources are shown as at December 31, 2012, net of mining depletion from the October 31, 2010 independent Technical Report. 3. A gold price of US$1,250/oz and an exchange rate of US$1.00=C$1.00 was utilized in the gold cut-off grade calculations of 2.63 gpt for potential underground at the Contact Zone and 0.65 gpt for potential open-pit 147 Zone mineral resources. Underground and open-pit mining costs, process costs and G&A costs were estimated using experience gained from Brigus' Black Fox mine. Process recovery was assumed at 95%. 4. Disclosure of "contained ounces" is permitted under Canadian Regulations; however, the SEC permits resources to be reported only as in place tonnage and grade. BLACK FOX Mineral Resources and Mineral Reserves (DECEMBER 31, 2013, MINERAL RESOURCES INCLUDE MINERAL RESERVES) CLASSIFICATION TONNAGE ( TONNES) GOLD GRADE (G/T) CONT. GOLD ( OUNCES) Mineral Reserves Proven & Probable 4,469,000 4.6 660,800 Mineral Resources (includes Mineral Reserves) Measured & Indicated 4,942,149 5.2 822,542 Inferred 270,998 5.1 44,172

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