TD Securities Mining Conference

Transcription

1 TD Securities Mining Conference PRIMERO MINING CORP. January 18-19, 2017

2 Cautionary Statement This presentation may contain forward-looking statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 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. Forward-looking information includes statements respecting currently ongoing matters which will continue and statements in the present or past tense which are not historical facts. 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, and risks associated with the Company s ability to defend the validity of the APA. 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 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 Standards of Disclosure for Mineral Projects ( NI ), 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 NI 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$. 2

3 Investment Highlights EMERGING MID-TIER GOLD PRODUCER PRODUCING GOLD IN NORTH AMERICA ENHANCED MANAGEMENT TEAM EXPLORATION & DEVELOPMENT PIPELINE PRIMERO VALUE PROSPOSITION 3

4 Producing Gold in North America MEXICO & CANADA SAN DIMAS MINE Durango-Sinaloa Border LECHUGUILLA & VENTANAS Durango CERRO DEL GALLO Guanajuato BLACK FOX MINE Timmins, Ontario GREY FOX Timmins, Ontario FROOME ZONE Timmins, Ontario Producing Mine Development Project Exploration Property 4

5 Enhanced Management Team PRIMERO Ernest Mast PRESIDENT & CHIEF EXECUTIVE OFFICER Appointed President & CEO in Feb after planned succession. Formerly Primero s President & COO. Former President & CEO Minera Panama (Inmet), VP Ops. New Gold, President & GM Falcondo, Xstrata Nickel. Kevin Jennings CHIEF FINANCIAL OFFICER Appointed CFO in Sep Former CFO of Banro Corp., Sun Gold and African Barrick Gold; VP Corp. Dev. of Barrick Gold; Director, Business Optimization of Xstrata Nickel. Damien Marantelli CHIEF OPERATING OFFICER Appointed COO in Oct Former GM Sentinel (First Quantum), MD Las Cruces & Çayeli (First Quantum / Inmet), GM Mt Keith (BHP Billiton / WMC Resources). 5

6 Safety of our People is our First Priority RESPONSIBLE MINING HEALTH AND SAFETY Continue with a transformational shift in attitude towards a safety culture committed to a workplace free of accidents. San Dimas reduced its TRIFR by 64% from 2010 to Black Fox achieved a reduction of Reportable Incidents quarter-overquarter in Safety systems and programs in continuous improvement, including Primero People First internal safety recognition program. ENVIRONMENTAL San Dimas certified Clean Industry by PROFEPA (Mexican EPA). San Dimas generates the majority of its power via our own sustainable hydroelectric power facility. San Dimas operates a state-of-the-art dry stack tailings facility. Due to mill improvements, Black Fox reduced fresh water use intensity by 13% in Reduction of Green House Gas (GHG) emissions in 2015 by 26% at Black Fox. SOCIAL RESPONSIBILITY Well developed programs in Health, Education and Social Development. Awarded Socially Responsible Company by CEMEFI (Mexican Centre for Philanthropy) for 5 th consecutive year. Tayoltita hospital upgrade completed February Strong local employment and procurement at San Dimas and Black Fox mines. 6

7 Total Liquidity & Balance Sheet PRIMERO TOTAL LIQUIDITY (As at September 30, 2016) CREDIT 1 $25M $56M TOTAL LIQUIDITY CASH $31M BALANCE SHEET (As at September 30, 2016) ($M) Cash $31 Line of Credit 1 $25 Total Liquidity $56 Convertible Debenture (5.75%, due Feb. 2020, US$6.55 conversion) Line of Credit Draw Down 1 (Due May 2017) $75 $50 Total Debt 2 $125 CAPITAL STRUCTURE (M) Common Shares O/S 188 Fully Diluted Shares O/S Market Capitalization (at January 13, 2016) C$200 *See final slide for endnotes. 7

8 2016 Consolidated Operating Results PRIMERO OPERATING RESULTS Q GUIDANCE Gold equivalent production 4 (koz AuEq) Gold production (koz Au) Silver production (Moz Ag) Total cash costs 5 ($/oz AuEq) $777 $865 $850 - $900 All-in sustaining costs 5 ($/oz Au) $1,133 $1,326 $1,350 - $1,400 HISTORY OF PRODUCTION INCREASES, WITH FIRST SETBACK IN 2016 (koz AuEq 4 ) *See final slide for endnotes San Dimas Black Fox

9 2016 San Dimas Production PRIMERO OPERATING RESULTS Q GUIDANCE Mill throughput 6 (TPD) 2,086 2,074 - Gold equivalent production 4 (koz AuEq) Gold production (koz Au) Silver production (Moz Ag) Total cash costs 5 ($/oz AuEq) $746 $856 $850 $900 All-in sustaining costs 5 ($/oz Au) $994 $1,117 $1,125 $1,175 UNDERGROUND MINING RATES (TPD) MILL THROUGHPUT (TPD) Q ,661 Q ,639 Q ,541 Q ,466 Q ,012 Q ,104 Q ,116 Q ,086 *See final slide for endnotes. 9

10 2016 Black Fox Production PRIMERO OPERATING RESULTS Q GUIDANCE Mill throughput 6 (TPD) 2,452 2,495 - Gold production 4 (koz Au) Total cash costs 5 ($/oz AuEq) $828 $881 $850 $900 All-in sustaining costs 5 ($/oz Au) $1,101 $1,291 $1,250 $1,300 UNDERGROUND MINING RATES (TPD) MILL THROUGHPUT (TPD) Q Q ,467 Q Q ,524 Q Q ,538 Q Q ,452 *See final slide for endnotes. 10

11 Exploration & Development Pipeline PRIMERO MINE EXPANSION DEVELOPMENT PROJECTS EXPLORATION San Dimas Southern Concessions (Outside SPA) Black Fox Froome Zone Black Fox Froome Low-Mag Trend Grey Fox Cerro del Gallo Large-Scale San Anton Property Black Fox Deep Central Zone Cerro del Gallo San Dimas Near Mine Exploration 11

12 SAN DIMAS LOCATION Sinaloa-Durango, Mexico OWNERSHIP 100% (silver stream 4 ) METALS Gold & Silver MINING Underground CAPACITY 2,500 TPD (nameplate)

13 Primero s Platform Asset SAN DIMAS LOCATION Sinaloa-Durango, Mexico OWNERSHIP 100% (silver stream 1 ) METALS Gold & Silver GEOLOGY +120 known epithermal veins, textbook model of low sulphidation epithermal precious metal vein swarms. HISTORY +100 years mine production history, the district has produced +11 Moz Au and +620 Moz Ag. MINING Underground long-hole and cut-and-fill MILL CIRCUIT Conventional cyanidation and Merrill-Crowe process MILL CAPACITY 2,500 TPD (nameplate) GREEN POWER 14 MW hydroelectric power plant (cost reduced from $0.11 to $0.015 per kwh) TAILINGS State of the art, dry stack tailings 13 *See final slide for footnotes.

14 Focusing on High Quality Veins SAN DIMAS SIX HIGH-GRADE VEINS ACCOUNT FOR ~60% RESERVES Roberta, Robertita, Victoria, Jessica, Sta. Gertrudis and Regina account for ~60% of gold ounces contained in reserves. Remaining 40% of gold ounces spread over 30 other veins. FOCUSED ON OPTIMIZING PROFITABILITY Reducing number of working faces. Maximizing resources in high-priority areas. Optimizing workforce. POSITIVE EXPLORATION RESULTS Recent exploration highlights include Victoria vein intercepts of: > g/t Au, 3,037 g/t Ag over 1.3 m true width (VIC16_379). > 11.5 g/t Au, 590 g/t Ag over 3.5 m true width (VIC16_374). > 12.6 g/t Au, 817g/t Ag over 2.3 m true width (VIC16_378). *See final slide for endnotes. 14

15 Optimization Taking Effect SAN DIMAS PROGRESS UPDATE Ventilation and Mine Services: Detailed remediation plan in place for ventilation and mine services, which is closely monitored and tracked. Prioritize Development of Productive Veins: Transitioning to 2017 focus on mine s 6 key high-grade veins (Roberta, Robertita, Jessica, Victoria, Sta. Gertrudis, Regina). Productivity increases through the Mining Cycle focus is underway. Improved Training Program: Detailed training matrix created, and experienced instructors onsite to train for new requirements (i.e., rock bolting). Maximize Worker Time at Face: Improved management of shift transitions. Reduce Unplanned Absences: Reduced unplanned worker absences with program of increased intervention. With increased workforce engagement in November and December, the mine experienced minimal production impact due to labour related issues during these months. Empower Management Team: Recruitment of key management roles has been well programmed. Improve Supervisor and Contractor Engagement: Coaching and mentoring processes in place to improve supervision. > Strategy to reduce mining complexity, maximize resources in high-priority areas, and improve cash flow is underway. 15

16 Significant Upside with Southern Concessions SAN DIMAS WORLD CLASS HIGH-GRADE VEIN SYSTEM Average distance between productive veins is 530 m over 11 km. SAN DIMAS 10 km N Average yield of 265 oz/m interval between productive veins. Primero's total concession area is 68,628 hectares. Upper Volcanic Series Lower Volcanic Series Camichin Intrusive Piaxtla Intrusive LECHUGUILLA CONCESSION OUTSIDE SILVER PURCHASE AGREEMENT TAYOLTITA LECHUGUILLA MINERALIZATION IDENTIFIED IN LECHUGUILLA Channel samples from the Causitas vein include highlights of 7.1 g/t AuEq over 4.5 m, including 10.9 g/t AuEq over 2.0 m. Surface mapping and sampling is ongoing. Diamond drilling underway. Initial exploration of the greenfield concession is underway. Lechuguilla includes an un-explored geological window. VENTANAS Multiple vein outcroppings identified. 16

17 BLACK FOX LOCATION OWNERSHIP METALS MINING CAPACITY Timmins, Ontario 100% (8% gold stream4) Gold Underground & Stockpile 2,500 TPD

18 Key Location In the Timmins Gold Camp BLACK FOX STRATEGIC LOCATION IN THE TIMMINS CAMP Black Fox is centrally located along prolific Porcupine-Destor Fault Zone. > 450 km from Timmins, ON to Val d Or, QC > 110 Moz historic gold production Grey Fox located adjacent to Kirkland Lake s Hislop mine. SIGNIFICANT EXPLORATION POTENTIAL Current resources extend to approx. 800 m below surface. > Average depth of mines in the region is beyond 1.2 km. Drilling at depth and to west of Deep Central Zone. Froome Zone discovery by Primero demonstrates potential for new exploration success. ACTIVE CONSOLIDATION BY MAJORS IN THE REGION Recent acquisitions include: > Tahoe Resources Lakeshore Gold (Apr 2016) > Kirkland Lake St. Andrew Goldfields (Jan 2016) > Goldcorp Probe Mines (Mar 2015) 18

19 Benefitting From High-Grade Deep Central Zone Production BLACK FOX DEEP CENTRAL ZONE PRODUCTION UNDERWAY Dec. 31, 2015 DCZ reserves total 116,000 ounces at 6.2 g/t Au. First long-hole blasting occurred in September. Mining is now progressing on three levels (660, 680, 700 metre levels), > 4 active working faces > 800 TPD achieved in Q at 5.2 g/t Au. FROOME ZONE 800m LEGEND Gold Resource Highlighted Drilling Intercept Planned Drill Hole Ankerite Alteration Envelope EXPLORATION FOCUSED AT DEPTH AND TO WEST Exploration focused at depth and west of Deep Central Zone. Recent highlights include: > 87.3 g/t Au over 1.4 m (520-EX290-02). > 34.4 g/t Au over 1.0 m (520-EX346-09) > 9.5 g/t Au over 1.0 m (520-EX286-07). 520-EX (87.3 g/t / 1.4 m) DEEP WEST TARGET 520-EX (9.5 g/t / 1.0 m) 520-EX (34.4 g/t / 1.0 m) 640 level 660 level 680 level DEEP CENTRAL ZONE (116 koz at 6.2 g/t Au) DEEP TARGET 19

20 Expected Near-Term Catalysts and News Flow PRIMERO Ongoing January 2017 February 2017 Q Q Q MEXICAN TAX ISSUE Ongoing dialogue with Mexican government toward resolution. Q4 & FY 2016 PRODUCTION Achieved 2016 revised production guidance with 176 koz AuEq 4 produced in GUIDANCE Improved profitability and cash flow from operations expected in EXPLORATION UPDATE Upside potential defined by investing in our key assets. SAN DIMAS OPERATIONS Reduce mine plan complexity. Gain better alignment with workforce. EXTEND LINE OF CREDIT Complete discussions with lenders & extend maturity date of Line of Credit. 20

21 Why Invest in Primero? PRIMERO VALUE PROPOSITION GOLD MINES LOCATED IN NORTH AMERICA Mexico & Canada > Countries motivated to build a closer relationship in wake of recent US election results. Strong exposure to the weakening Mexican Peso and Canadian Dollar. > Approximately 65% of operating costs are denominated in local currencies. LONG HISTORY OF GOLD PRODUCTION AT SAN DIMAS First mining activity reported in First Tayoltita mill built in High-grade vein mineralization covers district-sized area. Primero s land holding totals 68,628 hectares and is less than 50% explored. > +30,000 hectares not covered by the San Dimas silver purchase agreement. Access to highly skilled workers with strong family histories of mining. HISTORY OF PRODUCTION INCREASES, WITH FIRST SETBACK IN 2016 From Primero increased San Dimas AuEq 4 production by 86%: > $607/oz AuEq average total cash costs 5, $774/oz Au average all-in sustaining costs 5. Achieved 2016 revised production guidance with 114 koz AuEq produced at AISC of $1,117/oz Au. VALUE OPPORTUNITY Valuation disconnect associated with tax dispute in Mexico. Dialogue with the government is ongoing. Black Fox turnaround starting to show positive progress with high-grade production from Deep Central Zone. Optimization program being implemented at San Dimas to reduce complexity, increase grade and reduce costs. Exploration upside from San Dimas southern concessions, outside of the silver purchase agreement. We remain focused on building a leading Americas focused mid-tier gold producer. *Average See final slide for endnotes. 21

22 Appendix

23 Mexican Tax Update and NAFTA Notice of Intent PRIMERO The Company continues to vigorously defend its Advance Pricing Agreement ( APA ) from the legal claim initiated by the Mexican tax authority ( SAT ) in February The APA confirmed that the Company should calculate taxes on silver sold from the San Dimas mine based on the price realized by the Company. The legal claim initiated does not identify any different basis for paying taxes, nor have any tax reassessments been received from the SAT. On June 2, 2016, the Company notified the Government of Mexico that the measures taken by its tax authority SAT against PEM, in connection with the judicial proceeding seeking to retroactively nullify the APA, breached several provisions of Chapter 11 of the North American Free Trade Agreement (NAFTA) because these measures are arbitrary, discriminatory, unfair and inequitable. As more than 90 days have now passed since the provision of this notice, the Company has the option to commence international arbitration proceedings pursuant to Article 1119 of the NAFTA at a time of its choosing. The Company has not yet initiated international arbitration proceedings in order to continue dialogue with the Government of Mexico. 23

24 Expected Capital & Exploration Expenditures PRIMERO CAPITAL EXPENDITURES (estimated 2016 costs) ($M) CAPITALIZED EXPLORATION EXPENDITURES (estimated 2016 costs) ($M) San Dimas Underground Development $15.9 San Dimas Diamond Drilling $4.9 San Dimas Sustaining Capital $11.0 San Dimas Drifting $2.7 San Dimas Projects $3.9 San Dimas Sub Total $30.8 Black Fox Underground Development $14.3 San Dimas Regional Diamond Drilling $0.4 San Dimas Sub Total $8.0 Black Fox Diamond Drilling $4.4 Black Fox Sustaining Capital $5.8 Black Fox Complex Sub Total $20.1 Cerro del Gallo Development $1.6 Total $ Capital Expenditures $68.0 Regional Exploration $4.5 Black Fox Complex Sub Total $8.9 Cerro del Gallo Geology Mapping $0.4 Total $ Capitalized Exploration Expenditures $25.3 Note: Figures may not add due to rounding. 24

25 2015 Operating Cost Breakdown PRIMERO SAN DIMAS CONSOLIDATED 11% 5% 1% 2% 7% 36% 4% 4% 4% 7% 38% 17% 6% 21% BLACK FOX 15% 2% 7% 7% 2% 22% 5% 41% 13% Labour Materials & Consumables Contractors Maintenance Fuel & Lubricants Freight, Refining, & Off-Site 23% Power Other 25

26 Stock Performance & Significant Events PRIMERO 80% P-T Volume Primero Mining Corp. S&P/TSX Global Gold Index 30 60% 40% 20% Primero IPO, Begins Trading on the TSX, and Finalizes San Dimas Acquisition Primero Announces APA Ruling Primero Announces San Dimas Expansion Plan Phase 1 Primero Announces Brigus Gold Acquisition Primero Receives Legal Claim Filed by Mexican Tax Authorities Primero Notifies Mexico of an Investment Dispute Under NAFTA 20 0% -20% -40% -60% -80% Primero Begins Trading on the NYSE Primero Announces Acquisition of Cerro Del Gallo Primero Closes US$75M Offering of Convertible Debentures 10 Volume (Millions) -100% 0 26

27 Summary of Debt & Tradable Securities PRIMERO Face Value REVOLVING LINE OF CREDIT FACILITY Drawn at September 30, 2016: $50 million CONVERTIBLE DEBENTURES TSX:P.DB.V PRIMERO WARRANTS TSX:P.WT.C $75.0 million n/a Maturity / Expiry May 23, 2017 February 28, 2020 June 24, 2018 Interest Rate Floating Rate (see below) 5.75% n/a Payable Monthly Semi-Annually n/a Conversion / Strike Additional Notes Expected floating interest rate of approximately 4.3% per annum in Q n/a US$6.55 C$3.35 Not redeemable prior to Feb Provision for early redemption if the market price of the Primero s shares is at least 125% of the conversion price CUSIP: 74164WAB2 CUSIP: 74164W171 27

28 Silver Purchase Agreement SAN DIMAS Primero sells 50% of annual silver production above 6.0 million ounces at spot Remainder sold at ~$4.28 per ounce under silver purchase agreement. Threshold commences August 6 to following August 5. Does not include the Lechuguilla concession or Ventanas area. Gold Purchase Agreement BLACK FOX Primero sells 8% of annual gold production at Black Fox at ~$521 per ounce Primero streams 6.3% from Pike River property. Gold is sold at ~$524 per ounce subject to inflationary adjustment, not to exceed 2% per annum. The Grey Fox property is not subject to any gold streaming agreements. SILVER AS A PERCENTAGE OF 2015 REVENUE 15% 85% Silver Gold 28

29 Potential for an Additional 95,000 oz/yr AuEq CERRO DEL GALLO LOCATION OWNERSHIP 100% METALS MINING STAGE Guanajuato State, Mexico Gold, silver, & copper Open-pit, heap leach and/or conventional mill Feasibility Study published May 2012 on Heap Leach scenario Established 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 oz of silver and 6.5 million oz of gold over its 450 year mining history. Construction Decision: Contingent on the project achieving a 15% IRR at consensus long-term gold prices. 1. Technical Report First Stage Heap Leach Feasibility Study, Cerro del Gallo Gold Silver Project, Guanajuato, Mexico June Effective date May 11th Cash cost is a non-ifrs measurement. LARGE GOLD DOMAIN FIRST STAGE HEAP LEACH DFS OPERATIONAL DATA (MAY 2012) 1 Avg LOM Gold Grade Avg LOM Annual Throughput Gold Equivalent Production Gold Production Silver Production Copper Production Estimated Cash Costs 2 Proven & Probable Gold Reserves (32.2M tonnes at 0.7 g/t) Measured & Indicated Gold Resources (Exclusive of Reserves, 47.9M tonnes at 0.6 g/t) Mine Life (Stage 1) 0.69 g/t 4.5 Mt 95 koz /yr 68 koz /yr 1,072 koz /yr 1,113 t/year ~$700/oz 712 koz 923 koz 7.2 years 29

30 Mineral Reserves and Mineral Resources (As at December 31, 2015) SAN DIMAS Mineral Reserves Mineral Resources CLASSIFICATION TONNAGE (Mt) GOLD GRADE (g/t) SILVER GRADE (g/t) CONTAINED GOLD (koz) CONTAINED SILVER (koz) Proven & Probable ,193 Measured & Indicated ,540 Inferred ,030 Notes to Mineral Reserve Statement: 1. Assumed gold price of US$1,200 per troy ounce and silver price of US$18 per troy ounce. 2. San Dimas cut-off grade of 2.50 g/t AuEq based on total operating cost of US$96.57/t. Metal supply contract obligations have been referenced in determining overall vein reserve estimate viability. 3. Assumed processing recovery factors at San Dimas for gold of 97% and silver of 95%. 4. Exchange rate assumed is Mexican pesos/us$ The Mineral Reserve estimates for San Dimas Mine set out in the table above have been reviewed and approved by Mr. Clifford Lafleur, P.Eng., Director of Technical Services, Primero and Mr. Patrick McCann, P.Eng., Principal Engineer, Primero and a Qualified Person ("QP") for the purposes of National Instrument ( NI ). 6. A silver purchase agreement exists with Silver Wheaton Corp. such that the first 6.0 million ounces per annum of silver produced by the San Dimas mine, plus 50% of the excess silver above this amount, must be sold to Silver Wheaton Caymans at the lesser of $4.20 per ounce (adjusted by 1% per year) and market prices. Notes to Mineral Resource Statement: 1. Mineral Resources are total and include those resources converted to Mineral Reserves. 2. Assumed gold price of US$1,200 per troy ounce and silver price of US$18 per troy ounce. 3. San Dimas cut-off grade of 2.0 g/t AuEq was applied. 4. At San Dimas a constant bulk density of 2.6 tonnes/m3 has been used. 5. The Mineral Resource estimates for the San Dimas Mine set out in the table above have been reviewed and approved by Mr. Dave Laudrum, P.Geo., Senior Resource Manager, Primero and a QP for the purposes of NI

31 Mineral Reserves and Mineral Resources (As at December 31, 2015) BLACK FOX Mineral Reserves Mineral Resources CLASSIFICATION TONNAGE (Mt) GOLD GRADE (g/t) CONTAINED GOLD (koz) Proven & Probable Measured & Indicated Inferred Proven & Probable Reserves Stockpile Underground Total P&P Notes to Black Fox Mineral Reserve estimate: 1. Assumed gold price of US$1,200 per troy ounce. 2. Black Fox underground cut-off grade of 4.44 g/t gold based on total all-in costs of C$194.00/t (C$135/t direct costs and C$59/t sustaining capital). 3. Assumed processing recovery factors at Black Fox for gold of 95%. 4. Exchange rate assumed is C$1.25/US$ The Mineral Reserve estimates for Black Fox Mine set out in the table above have been reviewed and approved by Mr. Clifford Lafleur, P.Eng., Director of Technical Services, Primero and Mr. Russell Pennell, P.Eng., Senior Mine Planner, Primero and a Qualified Person ( QP ) for the purposes of National Instrument ( NI ). 6. A gold purchase agreement exists with Sandstorm Inc. such that 8% of the gold produced by the Black Fox mine must be sold to Sandstorm at the lesser of $500 per ounce of gold (subject to an inflationary adjustment beginning in 2013, not to exceed 2% per year) and market prices. Notes to Black Fox Mineral Resource estimate: 1. Mineral Resources are total and include those resources converted to Mineral Reserves. 2. Assumed gold price of US$1,200 per troy ounce. 3. Black Fox open-pit cut-off grade of 0.9 g/t gold and underground cut-off grade of 3.4 g/t were applied. 4. At Black Fox a constant bulk density of 2.84 tonnes/m3 has been used. 5. The Mineral Resource estimates for the Black Fox Mine set out in the table above have been reviewed and approved by Mr. Dave Laudrum, P.Geo., Senior Resource Manager, Primero and a QP for the purposes of NI The Black Fox Froome zone drilling was cut-off as of February 17,

32 Mineral Resources GREY FOX Indicated Resources CLASSIFICATION TONNAGE (Mt) GOLD GRADE (g/t) CONTAINED GOLD (koz) >0.9 g/t Open Pit >3.0 g/t Underground Total Indicated Inferred Resources >0.9 g/t Open Pit >3.0 g/t Underground Total Inferred Notes to Grey Fox Mineral Resource estimate: 1. Assumed gold price of US$1,200 per troy ounce. 2. Grey Fox open-pit cut-off grade of 0.9 g/t gold and underground cut-off grade of 3.0 g/t were applied. 3. The Mineral Resource estimate for Grey Fox was prepared by Mr. Rodney Webster MAusIMM, MAIG of AMC Mining Consultants (Canada) Ltd. and a QP for the purposes of National Instrument ( NI ). 32

33 Reserves and In-Pit Resources 1 CERRO DEL GALLO CATEGORY TONNAGE (Mt) GOLD GRADE (g/t) CONTAINED GOLD (Moz) SILVER GRADE (g/t) CONTAINED SILVER (Moz) COPPER GRADE (%) CONTAINED COPPER (Mlb) AUEQ GRADE (g/t) CONTAINED AUEQ (Moz) Total Resources Within the Gold Domain 2 Measured & Indicated Inferred 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, Phase I Heap Leach In-Pit Mineral Reserves 3 Proven & Probable These reserves are reported using internal cut-off grades of 0.24 and 0.29 gaueq/t for weathered and partially oxidized, respectively. In-Pit Resources (excluding Mineral Reserves) 4,5 Measured & Indicated 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. 33

34 Executive Management Ernest Mast PRESIDENT & CHIEF EXECUTIVE OFFICER Appointed President & CEO in Feb after planned succession. Formerly Primero s President & COO. Former President & CEO Minera Panama (Inmet), VP Ops. New Gold, President & GM Falcondo, Xstrata Nickel. Kevin Jennings CHIEF FINANCIAL OFFICER Appointed CFO in Sep Former CFO of Banro Corp., Sun Gold and African Barrick Gold; VP Corp. Dev. of Barrick Gold; Director, Business Optimization of Xstrata Nickel. Damien Marantelli CHIEF OPERATING OFFICER Appointed COO in Oct Former GM Sentinel (First Quantum), MD Las Cruces & Çayeli (First Quantum / Inmet), GM Mt Keith (BHP Billiton / WMC Resources). Tamara Brown VP, CORPORATE DEVELOPMENT Former Director Investor Relations for IAMGOLD. Former partner of a Toronto based, boutique investment bank and professional engineer in mining industry. H. Maura Lendon CHIEF GENERAL COUNSEL & CORPORATE SECRETARY Former Senior Vice President, Chief Legal Officer and Corporate Secretary of HudBay Minerals Inc.; Chief Counsel Canada, Chief Privacy Officer - Canada of AT&T. James Mallory VP, CORPORATE RESPONSIBILITY Former VP, Vice-President, Operations & Social Responsibility at South American Silver. Over 35 Years of mining experience with 13 Years of experience in Latin America. Louis Toner VP, PROJECT DEVELOPMENT & CONSTRUCTION Over 30 Years of Engineering and Construction experience, formerly held Senior Project Management roles with BBA Inc. and Lafarge Canada Inc. 34

35 Board of Directors Wade Nesmith CHAIRMAN Founder of Primero. Founding and former director of Silver Wheaton. Joseph Conway VICE CHAIRMAN 1 Moved to Vice Chairman position in Aug after planned succession. Previously Primero s President and CEO. Former CEO, President & Director of IAMGOLD and Repadre Capital. Ernest Mast PRESIDENT & CHIEF EXECUTIVE OFFICER Appointed President & CEO in Feb after planned succession. Formerly Primero s President & COO. Former President & CEO Minera Panama (Inmet), VP Ops. New Gold, President & GM Falcondo, Xstrata Nickel. David Demers DIRECTOR 2,3 Founder, CEO and Director Westport Innovations. Director of Cummins Westport and Juniper Engines. Grant Edey DIRECTOR 3,4 Former Director of Breakwater Resources, former director of Queenstake Resources, Santa Cruz Gold. Former CFO, IAMGOLD. Patricia Fortier DIRECTOR 1,3 Former Canadian diplomat. Past Assistant Deputy Minister in Global Affairs Canada, Canadian Ambassador to Peru & Bolivia, Ambassador to Dominican Republic. Brad Marchant DIRECTOR 1,4 Co-founder of Triton Mining Corporation. Founder of BioteQ Environmental Technologies Inc. 35 Robert Quartermain DIRECTOR 1,2,3 Founder and President & CEO, Pretivm Resources. Former President and CEO of Silver Standard. Michael Riley DIRECTOR 2,4 Chartered accountant with more than 26 years of accounting experience. Chair of Primero Audit Committee. BOARD COMMITTEES: 1. Corporate Responsibility 2. Human Resources 3. Governance and Nominating 4. Audit

36 Notes to Investors Regarding the Use of Resources This presentation has been prepared in accordance with the requirements of Canadian provincial securities laws which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all mineral reserve and resource estimates included in this presentation have been prepared in accordance with Canadian National Instrument Standards of Disclosure for Mineral Projects ( NI ) and the Canadian Institute of Mining, Metallurgy and Petroleum classification systems. NI is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ significantly from the requirements of the United States Securities and Exchange Commission (the SEC ), and reserve and resource estimates disclosed in this presentation may not be comparable to similar information disclosed by U.S. companies. The mineral reserve estimates in this presentation have been calculated in accordance with NI , as required by Canadian securities regulatory authorities. For United States reporting purposes, SEC Industry Guide 7 under the United States Securities Exchange Act of 1934, as amended, as interpreted by Staff of the SEC, applies different standards in order to classify mineralization as a reserve. As a result, the definition of probable reserves used in NI differs from the definition in the SEC Industry Guide 7. Under SEC standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Among other things, all necessary permits would be required to be in hand or issuance imminent in order to classify mineralized material as reserves under the SEC standards. Accordingly, mineral reserve estimates contained in this presentation may not qualify as reserves under SEC standards. In addition, this presentation uses the terms indicated resources and inferred resources to comply with the reporting standards in Canada. The Company advises United States investors that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them. United States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist. In accordance with Canadian securities laws, estimates of inferred resources cannot form the basis of feasibility or other economic studies. It cannot be assumed that all or any part of indicated resources or inferred resources will ever be upgraded to a higher category or are economically or legally mineable. In addition, disclosure of contained ounces is permitted disclosure under Canadian securities laws; however, the SEC only permits issuers to report mineralization as in place tonnage and grade without reference to unit measures. NI also permits the inclusion of disclosure regarding the potential quantity and grade, expressed as ranges, of a target for further exploration provided that the disclosure (i) states with equal prominence that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resources, and (ii) states the basis on which the disclosed potential quantity and grade has been determined. Disclosure regarding exploration potential has been included in this presentation. United States investors are cautioned that disclosure of such exploration potential is conceptual in nature by definition and there is no assurance that exploration will result in any category of NI mineral resources being identified. 36

37 Endnotes 1. The Company closed a $75 million line of credit on May 23, 2014 and has drawn down $50.0 million as of September 30, As at September 30, 2016, $75.0 million convertible, unsecured, subordinated debentures; and $50.0 million drawn down from line of credit. Excludes capital leases. 3. Fully diluted shares include 6.2 million options outstanding at September 30, 2016 with an average exercise price of C$4.35 and 11.0 million warrants. 4. Gold equivalent ounces include silver ounces produced at San Dimas, and converted to a gold equivalent based on a ratio of the average commodity prices realized for each period. Silver production is subject to a silver purchase agreement. Primero delivers to Silver Wheaton a per annum amount equal to the first 6.0 million ounces of silver produced at San Dimas and 50% of any excess at $4.28 per ounce (increasing by 1% per year). The Company will receive silver spot prices only after the annual threshold amount has been delivered. Black Fox is subject to a gold purchase agreement under which Sandstorm is entitled to 8% of production at the Black Fox mine and 6.3% at the Pike River property. 5. Cash costs and All-in Sustaining Costs are non-gaap measures. Refer to the Company s third quarter 2016 MD&A for a reconciliation to operating expenses. 6. Based on 92 days in the fourth calendar quarter of 2016 (October 1 to December 31) and 366 days in calendar

38 Notes 38

39 Notes 39

40 PRIMERO MINING CORP. 79 Wellington Street West, Suite 2100 Toronto, ON, M5K 1H1 T (416) TF (877) TSX:P NYSE:PPP INVESTOR RELATIONS Evan Young Manager, Investor Relations T (416) info@primeromining.com