TSX & TSXV: Myths and Realities in Challenging Times November 15th, 2013 Carlos Espinosa

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1 TSX & TSXV: Myths and Realities in Challenging Times November 15th, 2013 Carlos Espinosa

2 Disclaimer This document is for information purposes only. While the information herein is collected and compiled with care, neither TMX Group Limited nor any of its affiliated companies represents, warrants or guarantees the accuracy or the completeness of the information. You agree not to rely on the information contained herein for any trading, legal, accounting, tax, investment, business, financial or other purpose. This information is provided with the express condition, to which by making use thereof you expressly consent, that no liability shall be incurred by TMX Group Limited and/or any of its affiliates as a result of any errors or omissions herein or any use or reliance upon this information TSX Inc. All rights reserved. Do not sell or modify without the prior written consent of TSX Inc. 2

3 Canada and TSX: Strong Fundamentals Economically stable Canada is the fourth largest equity market by float capitalization in the MSCI World Index World s soundest banking system* Lowest debt-to-gdp among G7 Strong equity culture The global exchange leader for new listings in 2012, 2011, 2010 and 2009 ~$2.2 Trillion in market cap Resource rich World s largest producer of zinc and uranium and major producer of gold, nickel, aluminum and lead * World Economic Forum, September 2012, five years in a row 3

4 The World Lists on TSX and TSXV TSX and TSXV International Listings by Country/Region Total International Listings as at June = 331 TSX = 175 listings QMV=$140.5 B TSXV = 156 listings QMV= $3.4 B 4

5 The World Trades on TSX ~40% of daily trading originates from international brokers Toronto Stock Exchange Volume & Transactions ( ) 5

6 Diverse Issuer Base Number of Issuers by Sector Structured Products 219 CPC 139 Financial Services 118 Real Estate 98 Utilities & Pipelines 28 Mining 1655 Oil & Gas & Energy Services 462 Diversified Industrials 297 Technology 170 Forest Products 24 ETFs 291 Clean Technology 114 Life Sciences 108 Comm & Media 46 * As at June 30, 2013 includes issuers on Toronto Stock Exchange and TSX Venture Exchange (100% = 3769) 6

7 Service at All Stages of Growth Serving all Market Caps A Unique Market Structure with Strong Feeder System 576 Issuers 2,089 Issuers 449 Issuers Issuers graduates +136 M&A* 247 mining graduates * Market Capitalization, June 30, 2013 *From January 1, 2000 June 30,

8 The Mining Sector

9 Current challenges for mining companies World Economy Commodity prices Engagement of Local Communities Higher exploration / production costs Resource Nationalism Regulatory Environment Missed Expectations 9

10 How the industry is facing those challenges? Surviving mode Focused on projects in stable jurisdictions Alternative Financing Tools: Royalties, Joint Ventures, Private Equity, Divest M & A Care & Maintenance 10

11 Mining Companies by Stage of Project Exploration 1191 Advanced Exploration 891 Production 201 Development 121 Source: Infomine as at September

12 Mining: First Half Global Financing Activity 49% of all global mining equity financings are done by TSX and TSXV listed issuers Global Mining Equity Financing Trend 2013 H1 (C$ Billions) % of the equity capital raised globally for mining TSX/TSXV NYSE/NYSE MKT Source: Gamah International, 2013 YTD June, compiled by Toronto Stock Exchange 0.0 ASX LSE/AIM HKSE Other

13 Mining: Equity Capital Raised on TSX/TSXV $2.2 Billion raised by TSX and TSXV listed issuers in the first half of 2013 USA: $297M UK/Europe: $110M Africa: $373M Latin America: $597M Australia: $99M Equity capital raised on TSX and TSXV for mining companies by location of project Source: TSX/TSXV Market Intelligence Group, YTD June

14 TSX Venture Exchange: Mining Financing 1,150 1,100 1,050 1, Jan- 08 Mar- 08 May- 08 Jul- 08 Sep- 08 Nov- 08 Jan- 09 Mar- 09 May- 09 Jul- 09 Sep- 09 Nov- 09 Jan- 10 Mar- 10 May- 10 Jul- 10 Sep- 10 Nov- 10 Jan- 11 Mar- 11 May- 11 Jul- 11 Sep- 11 Nov- 11 Jan- 12 Mar- 12 May- 12 Jul- 12 Sep- 12 Nov- 12 Jan- 13 Mar- 13 May- 13 Jul- 13 Amount of Mining Equity Capital Raised ($M) Number of Financings 14

15 Toronto Stock Exchange: Mining Financing 6,800 6,600 6,400 6,200 6,000 5,800 5,600 5,400 5,200 5,000 4,800 4,600 4,400 4,200 4,000 3,800 3,600 3,400 3,200 3,000 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, Jan- 08 Mar- 08 May- 08 Jul- 08 Sep- 08 Nov- 08 Jan- 09 Mar- 09 May- 09 Jul- 09 Sep- 09 Nov- 09 Jan- 10 Mar- 10 May- 10 Jul- 10 Sep- 10 Nov- 10 Jan- 11 Mar- 11 May- 11 Jul- 11 Sep- 11 Nov- 11 Jan- 12 Mar- 12 May- 12 Jul- 12 Sep- 12 Nov- 12 Jan- 13 Mar- 13 May- 13 Jul- 13 Amount of Mining Equity Capital Raised ($M) Number of Financings 15

16 TSX and TSXV: Mining Financing 7,000 6,800 6,600 6,400 6,200 6,000 5,800 5,600 5,400 5,200 5,000 4,800 4,600 4,400 4,200 4,000 3,800 3,600 3,400 3,200 3,000 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, Jan- 08 Mar- 08 May- 08 Jul- 08 Sep- 08 Nov- 08 Jan- 09 Mar- 09 May- 09 Jul- 09 Sep- 09 Nov- 09 Jan- 10 Mar- 10 May- 10 Jul- 10 Sep- 10 Nov- 10 Jan- 11 Mar- 11 May- 11 Jul- 11 Sep- 11 Nov- 11 Jan- 12 Mar- 12 May- 12 Jul- 12 Sep- 12 Nov- 12 Jan- 13 Mar- 13 May- 13 Jul Amount of Mining Equity Capital Raised ($M) Number of Financings 16

17 Mining Delisting TSX TSXV YTD August YTD August Failure to Meet Continued Listing Requirements At the request of the company Following M&A Failure to Meet Continued Listing Requirements At the request of the company Following M&A 17

18 Mining Equity Capital Raised by Use of Proceeds TSX and TSXV All Equity Exchanges Source: Gamah International Limited, YTD June

19 2013 Largest Mining Financings: TSX Toronto Stock Exchange Company HQ Location Gross Proceeds Type of Financing Commodity Sought Property Location Platinum Group Metals Ltd. South Africa $180.0M Secondary Offering Platinum, Palladium South Africa, NWT, ON Detour Gold Corporation Allied Nevada Gold Corp. ON $176.1M Secondary Offering Gold Ontario USA (NV) $154.3 M Secondary Offering Gold USA (NV) Guyana Goldfields Inc. Paladin Energy Ltd. ON $100.0M Secondary Offering Gold Australia $81.6M Private Placement Uranium Brazil,French Guiana,Guyana, Suriname,Venezuela Malawi, Namibia, Niger, Australia, Newfoundland Kirkland Lake Gold Inc. Banro Corporation ON $69.0M Secondary Offering Gold Ontario ON $67.8M Secondary Offering Gold DRC (Congo) Polymet Mining Corp. USA (MN) $62.5M Secondary Offering Gold, Copper, Nickel, Platinum, Palladium, Cobalt USA (MN) MBAC Fertilizer Corp. San Gold Corporation Brazil $51.7M Private Placement Potash, Phosphate Brazil MB $50.0M Secondary Offering Gold Manitoba YTD August

20 2013 Largest Mining Financings: TSXV TSX Venture Exchange Company HQ Location Gross Proceeds Type of Financing Commodity Sought Property Location Santacruz Silver Mining Ltd. Corsa Coal Corp. Dunav Resources Ltd. Maudore Minerals Ltd. Aldridge Minerals Inc. Panoro Minerals Ltd. Monument Mining Limited Probe Mines Limited EastCoal Inc. ATAC Resources Ltd. Mexico $40.4M Shares for Debt Silver Mexico BC $31.0M Private Placement Coal USA (MD, PA) Quebec $16.8 M Private Placement Gold, Copper, Molybdenum Serbia Quebec $15.5M Private Placement Gold Quebec BC $15.0M Private Placement BC $15.0M Public Offering Gold, Silver, Copper, Lead, Zinc Gold, Copper, Molybdenum Turkey Peru BC $15.0M Private Placement Gold Malaysia ON $15.0M Private Placement Gold Ontario, Quebec BC $13.1M Private Placement Coal Ukraine BC $13.0M Private Placement Gold Yukon YTD August

21 2013 Mining IPOs on TSX Venture Exchange TSXV Ticker HQ Location Gross Proceeds Quoted Market Value Commodity Sought Property Location Astar Minerals Ltd. TAR BC $0.600M $2.1M Gold, General Minerals BC Aurania Resources Ltd. AOZ Ontario $2.0M $9.1M Gold, Copper, Uranium Switzerland Black Widow Resources Inc. BWR Ontario $1.1M $2.1M Gold, Copper, Diamonds, Zinc ON Golden Peak Minerals Inc. GP BC $0.675M $0.668M General Minerals BC Plate Resources Inc. PLR BC $0.750M $1.7M Copper, Tungsten, General Minerals BC September

22 2013 Mining New Listings Toronto Stock Exchange Toronto Stock Exchange Ticker HQ Location Listing Method Dual Listed On Commodity Sought Property Location GoGold Resources Inc. GGD Nova Scotia Canada TSXV Grad - Gold and Silver Mexico Loncor Resources Inc. LN Ontario Canada TSXV Grad NYSE MKT Gold DRC Africa Midway Gold Corp. MDW Colorado USA TSXV Grad NYSE MKT Gold Nevada Washington Sierra Metals Inc. SMT BC Canada TSXV Grad Lima (BVL) Gold, Silver, Copper, Lead, Zinc Mexico and Peru Balmoral Resources Ltd. BAR BC Canada TSXV Grad - Gold Quebec YTD August

23 Mining Americas Carlos Espinosa (416) Global Mining Orlee Wertheim (416) Oil & Gas Monica Rovers TSX & TSXV: Myths and Realities in Challenging Times Diversified Industries Justin Canivet Innovation Michael Kousaie Asia George Gao (8610) Europe & Africa Graham Dallas