Disclaimer. Please refer to Appendix A-2 for cautionary notes on non IFRS measures and production guidance. Foreign Exchange Assumptions

Transcription

1 February 2018

2 Disclaimer This Presentation contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding the Company s achievement of the full-year projections for ounce production, production costs, ASIC costs per ounce, cash cost per ounce and realized gold/silver price per ounce, the Company s ability to meet annual operations estimates, and statements about strategic plans, including future operations, future work programs, capital expenditures, discovery and production of minerals, price of gold and currency exchange rates, timing of geological reports and corporate and technical objectives. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forwardlooking information, including the risks inherent to the mining industry, adverse economic and market developments and the risks identified in Premier's annual information form under the heading "Risk Factors". There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Premier disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. This presentation has been completed by Premier. Certain corporate projects referred to herein are subject to agreements with third parties who have not prepared, reviewed nor approved this presentation. The presentation is not intended to reflect the actual plans or exploration and development programs contemplated for such projects. Please refer to Appendix A-2 for cautionary notes on non IFRS measures and production guidance. Foreign Exchange Assumptions The Company s formal reporting currency is CA$ however for convenience to the reader of this press release, US$ are also provided. Exchange rates used in this press release are sourced from The Bank of Canada, The balance sheet closing rate at September 30, 2017 was $1.248 and the income statement year to date weighted average closing rate at September 30, 2017 used was $ Cautionary Notes to Investors - Reserve and Resource Estimates In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed on this website have been prepared in accordance with Canadian National Instrument Standards of Disclosure for Mineral Projects ("NI "), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines"). Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI , inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral Reserve, or is or will ever be economically or legally mineable or recovered. Premier is not aware of any environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the Mineral Resource estimate. The scientific and technical information contained in this presentation has been reviewed by Stephen McGibbon, P. Geo., (Executive VP Corporate and Project Development) and a Qualified Person within the meaning of National Instrument For further information on the technical data provided in this presentation, including the key assumptions underlying the mineral resource herein, refer to the Sedar filings as listed below: Note Project/Property Tech Report Company Date (1) Hasaga Premier Gold Mines Limited December 30, 2016 (2) Hardrock Feasibility Premier Gold Mines Limited December 21, 2016 (3) McCoy-Cove Premier Gold Mines Limited April 15, 2017 (4) South Arturo Premier Gold Mines Limited July 15, 2015 (5) Mercedes Premier Gold Mines Limited September 29,

3 Growing a Mining Business Building shareholder value through low-cost production, disciplined growth and sustained exploration. Proven management ONTARIO Greenstone Gold Hasaga Rahill-Bonanza World-class districts Safe jurisdiction Sensible partnerships Low-cost production: 2 mines in North America NEVADA South Arturo McCoy-Cove Rye-Goldbanks 4 Advanced-stage projects: El Nino underground, Nevada P1 pit, Nevada Cove, Nevada Hardrock, Ontario Strong treasury C$172M (Q3-2017) MEXICO Mercedes Production Substantial exploration upside Exploration/Development 3

4 Gold Production: 139,658 ounces Silver Production: 357,901 ounces 2017 Production & Highlights Q YTD cash costs US$496 /oz Au and ASIC of US$595 /oz Au 2017 Operating Performance Commenced work on El Nino underground mine and advanced the Phase 1 pit project New mineral resource estimates released for the McCoy-Cove (Nevada) and Hasaga (Ontario) projects 2018 Production Guidance Koz Gold Production Koz Silver Production $690 $740 US$/oz Gold Cash Cost $800 $850 US$/oz Gold ASIC and Appendix A-3for detailed production guidance See Appendix A-2 Non IFRS Measures and full disclosure in the Company s 3rd quarter MD&A and Financial Statements 4

5 South Arturo Mine, Nevada 2018 Budget Overview Exploration: US$1.2 million (Premier portion) Capital (El Nino & Phase 1 pit) US$9.2 million (Premier portion) Mine Ownership Mine Type Processing 2018E Production 2018E Cash Cost 2018E AISC Key Metrics Premier Gold 40% Barrick Gold 60% Open Pit Roaster (Goldstrike) 5-10 koz Au (~+10k oz in stockpile) US$ /oz Au US$ /oz Au Located in the Heart of the Carlin Trend 2017 Production & Costs 2017 Production: 57,124 oz Au Q3/YTD Cash Costs: US$295 /oz Au Q3/YTD AISC: US$336 /oz Au 2018 Targets & Goals Phase 1 open pit mine to be developed in mid-2018 Begin construction of the El Nino underground mine in H2 Process 5-10,000 ounces (Premier portion) of Phase 2 ore Complete exploration program at Phase 3 and East Dee Release resource estimates for Phase 1 and El Nino in Q See Appendix A-2 Non IFRS Measures and full disclosure in the Company s 3rd quarter MD&A and Financial Statements 5

6 World-Class Gold District Strategic Project on the Carlin Trend Core land position in one of the most sought after gold districts in the world South Arturo pit is one of the lowest cost operations in the world with Q3/YTD 2017 AISC of US$336 /oz Several upside opportunities: El Nino u/g deposit Phases 1 & phase 3 pits East Dee u/g deposit Exploration targets Partnership with Barrick could provide potential future strategic opportunities (McCoy-Cove JV; Rye property) See Appendix A-2 Non IFRS Measures and full disclosure in the Company s 3rd quarter MD&A and Financial Statements 6

7 Phase 1 Pit Phase 2: Mining completed 2018 Development Plans El Nino Underground Project High grade underground opportunity situated immediately down-plunge of the P2 Arturo pit planned construction to begin in H Pit is now backfilled to portal level an drilling from pit is underway Resource estimates is planned for release in Q Phase 2 Pit Phase 3 Pit Phases 1 & 3 Pit Projects Resource estimate in Q1 for the Phase 1 open pit development that has been approved and construction is expected to begin in mid-2018 Drilling to complete additional metallurgical and geotechnical characterization is underway at the Phase 1 and Phase 3 pit projects including bottle roll and column leach testing to assess the potential of processing ROM material at Phase 1 Highlight results from initial drilling at Phase 3: ART17-01C: feet grading 0.23 oz/t Au (52.7 m grading 7.90 g/t) ART17-04C: feet grading 0.15 oz/t Au (79.7 m grading 5.18 g/t) El Nino (u/g) 7

8 2018 Budget Overview Key Metrics Mercedes Mine, Mexico Exploration: US$6.0 million Exploration Capital: US$4.8 million Expansionary Capital: US$6.3 million Mine Ownership Premier Gold 100% Mine Type Underground Plant Throughput Capacity 2,000 tpd 2018E Production 2018E Cash Cost 2018E AISC koz Au US$ /oz Au US$ /oz Au Located in a Prolific Mining District 2017 Production & Costs 2017 Production: 82,524 oz Au 337,983 oz Ag Q3/YTD Cash Costs: US$687 / oz Au Q3/YTD AISC: US$839 / oz Au 2018 Targets & Goals Updated resource for the Mercedes Mine in Q Major developments in 2018: Complete drift to Marianas deposit for u/g drilling Move Rey de Oro deposit into 2018 mine plan 40,000 metres of drilling planned - delineation & exploration See Appendix A-2 Non IFRS Measures and full disclosure in the Company s 3rd quarter MD&A and Financial Statements 8

9 Reserve Growth & Quality Production Resources Identified in Four Main Zones Mercedes (Corona de Oro) Barrancas - Lagunas (Future access to Marianas) Klondike - Rey De Oro (RDO drift completed Q3/17) Lupita - Diluvio (Diluvio now developed) Exploration Opportunity District-wide exploration target studies completed in 2015 have identified ~45 km of untested structures Limited drilling has been completed outside of existing resource areas District has excellent potential to host additional vein systems 2017 Exploration & Development Programs 40,000 metres of definition and expansion drilling completed testing several primary target areas Advance development of Rey de Oro & Marianas deposits Q mineral reserve and resource update planned MARIANAS LAGUNAS REY DE ORO CHIPOTLE 9

10 Cove & McCoy-Cove, Nevada Project Highlights & Milestones Located in the Battle Mountain Trend, Nevada Past production: 3.3 M oz Au and M oz Ag Recently signed joint venture of exploration property with Barrick Gold (earning 60% through expenditures of US$22.5 Million before Dec 31, 2021) Premier retains 100% ownership of Cove deposit portion Heart of the Battle Mountain Trend Phoenix Mine (NEM) +200,000 oz Au/yr Key Metrics Ownership Premier Gold 100% Stage Mine Type (potential) Processing Plan Resources U/G Exploration Resource Definition Underground Third Party Roaster/Autoclave Resources (March 2017) (3) Category Tonnes (Mt) Gold (Au) Grade (g/t) Au Ounces Indicated ,000 Inferred ,322,000 US$ commodity prices for mineral resource estimate: US$1,400 for Gold Overview Go-forward initiatives: Hydrological flow testing 100% PG Pre-development work underway to be followed by Preliminary Economic Assessment (PEA) H Underground infrastructure development planned in 2018 Definition drilling from ramp in H Feasibility and deposit development in

11 Target for U/G development in 2018 Exploration & Test Mining Program NW SE Vent #1 Cove Pit 2.6M oz Au, 100M oz+ Ag Historic Production Vent #2 Helen Gap CSD Test Mining Upper Helen 2201 (polymetallic) 100 m Gold Grade > 15.0 g/t Au > 10.0 g/t Au > 7.5 g/t Au > 5.6 g/t Au See appendix A-3 for complete mineral reserve, mineral resource tables 11

12 Greenstone Property, Ontario Overview 28,550 Ha property located in Geraldton, Ontario; Premier open pit discovery in 2009 Project consists of 4 deposits (open pit and underground) with only Hardrock open pit subject to economic study Centerra is sole-funding the initial CA$185 Million spend with CA$121.0M remaining (as at Sept 30, 2017) EA and EIS submitted to regulatory agencies All affected Aboriginal groups have provided written support for the submission of the final EIS/EA Located in a Historic Mining District Key Metrics Ownership Premier 50% - Centerra 50% Stage Mine Type (planned) Plant Throughput Capacity (planned) Category Reserves and Resources (2) Type Cut-off (g/t) Reserves Tonnes (kt) Grade (g/t Au) Contained Gold (koz) Proven (OP) Probable (OP) , ,647 Total P&P (OP) , ,647 US$ commodity prices for mineral reserve estimate: US$1,250 for Gold Feasibility - Permitting Open Pit ~27,000 tpd Category Type Cut-off (g/t) Resources Tonnes (kt) Grade (g/t Au) Contained Gold (koz) (OP) , Indicated (UG) , ,720 Total (OP/UG) - 25, ,851 (OP) Inferred (UG) , ,470 Total (OP/UG) - 21, ,475 US$ commodity prices for mineral resource estimate: CA$1,250 for Gold 12

13 Feasibility Study Results (Premier Case) Operating Cash Flow Summary (M CA$) Gross Revenue 6,813 Total Operating Costs (2,950) Operating Cash Flow Before Tax 3,845 Capex/Salvage/Closure (1,520) Taxes (689) Project Economics Before-Tax Results N Project Highlights LOM production: 4.2 M ounces over 14.5 year LOM grade: 1.11 g/t Au prior to low-grade stockpiles (1.02 g/t Au including stockpiles) Annual production: ~300,000 ounces per year (excluding stockpiles) EA/EIS has been submitted and is under review/comment Additional development opportunities: Hardrock underground deposit located down-plunge of pit High-grade Brookbank deposit Cash Flow (M CA$) 2,326 NPV 5% (M CA$) 607* Payback Period (years) 3.9 IRR (%) 21.1%* Project Economics After-Tax Results Cash Flow (M CA$) 1,636 NPV 5% (M CA$) 414* Payback Period (years) 4.5 IRR (%) 17.5%* *As per Premier s 50% case see press release dated Nov 16,

14 Exploration Properties Rye/Goldbanks Projects, Nevada Premier holds option to acquire up to a 50% interest in Goldbanks from Kinross Gold by spending US$20M Goldbanks is hosts an inferred mineral resource estimate of 556,700 ounces of gold contained within 25.7M 0.7 g/t Au (1)(2) Premier holds the right to acquire 100% of the Rye Vein property from Barrick Gold by spending US$3M Rye Vein is a large low-sulfidation epithermal system adjoining the Goldbanks property. (1) resource estimate was completed in 2006 by Mine Development Associates of Reno, Nevada on behalf of Desert Gold Ventures Inc., an earlier partner on the project) (2) A qualified person has not done sufficient work to classify this historical estimate as current mineral resources and Premier is not treating this historical estimate as current mineral resources. Red Lake Projects, Ontario 100% ownership of the Hasaga Property 44% ownership of the Rahill- Bonanza Property (JV with Goldcorp) Q mineral resource estimate at Hasaga (0.50 g/t cutoff): 1,124,000 oz at 0.83 g/t Au Indicated 631,000 oz at 0.78 g/t Au Inferred Drill program at Hasaga testing higher-grade potential down-plunge of historic underground mine workings: HMP151: g/t Au 54.0 m (C-Zone) HMP164: 9.19 g/t Au 50.0 m (C-Zone) HMP162: 9.55 g/t Au 8.0 m (D-Zone) Red Lake, Ontario 14

15 District Consolidation Excellent Resource Potential The Rye/Goldbanks district may be one of the most extensive known epithermal vein systems in Nevada (Rye Vein traced for ~ 5 miles) Property package also holds the potential to host open pit style mineralization (historic resource on Goldbanks property) Rye Vein Goldbanks/Rye Property, Nevada Hawkeye KW Zone Historic drilling at Rye Vein demonstrates high-grade potential open for expansion Rye Vein is a parallel vein system to the Hawkeye vein system with excellent potential for high grade mineralization Nevada Sunrise/Schendel claims cover NE extension of Rye Vein and boundary (Hawkeye) targets Main Zone GB oz/t gold ( g/t Au) ft Schendel claims to become part of Kinross JV 15

16 Summary A World of Opportunity Achieved the high end of 2017 production guidance: 130, ,000 ounces of gold (139,658 ounces actual) 340, ,000 ounces of silver (357,901 ounces actual) Four projects in planning for future development including two at South Arturo (El Nino & Phase 1 pit at South Arturo, McCoy-Cove, and Hardrock) Advanced-exploration program has been initiated at McCoy-Cove with underground development targeted in 2018 Sustained company-wide exploration effort with active programs in Ontario, Nevada and Mexico US $83M 2018 exploration/development budget with more than 50% of it funded by partners 16

17 Key Contacts Ewan Downie President & CEO John Begeman Executive Chairman Stephen McGibbon Executive Vice-President Corporate & Project Development Matthew Gollat Vice-President Business Development A World of Opportunity PROVEN MANAGEMENT WORLD-CLASS DISTRICTS SAFE JURISDICTIONS SENSIBLE PARTNERSHIPS Symbol: PG Exchange: TSX 17

18 Our Leadership John Begeman: Executive Chairman Over 35 years experience in mining - Former VP western operations for Goldcorp, COO Wolfden Resources, President of Avion Gold Corp and is currently a director of Yamana Gold Inc. and African Gold Group Inc. Ewan Downie: CEO, President and Director Over 25 years experience in the exploration and mining industry - Founder of Wolfden Resources - recipient of the PDAC Bill Dennis Prospector Of The Year award and several Exploration and Development awards from the Northwestern Ontario Prospectors Association Steve Filipovic: Chief Financial Officer Chartered Professional Accountant with over 18 years experience in financial management and reporting, M&A, and international risk management, taxation and structuring. Previously held senior finance and director roles with several listed mining companies. Stephen McGibbon: Executive Vice-President Corporate & Project Development Over 30 years of exploration, mine production and management experience - Former Chief Geologist and Exploration Manager at the Red Lake Mine (Goldcorp) and senior member of the team that discovered the High Grade Zone Charlie Ronkos: Executive Vice-President Project Development, Americas More than 38 years of exploration and mining experience - formerly Executive Vice-President Goldcorp Inc. and associated with the discovery of more than 40 million ounces of gold and 1.2 billion ounces of silver Brent Kristof: Senior Vice-President Operations Over 35 years experience of progressive leadership and management of underground and surface mining operations. Previously COO of Klondex, GM (Turquoise Ridge and Ridge mines) and several years leading operations teams for Newmont in Nevada. Claude Lemasson: Director More than 20 years of mining and development experience - Previously held senior mine development and operational roles with Goldcorp Inc. - formerly President and CEO Guyana Goldfileds Inc. - currently President and CEO of Eastmain Resources Ron Little: Director More than 30 years experience in the mining industry Formerly President and CEO of Orezone Gold Corporation Tony Makuch: Director More than 20 years of direct mining experience - formerly Executive Vice-President/President of Canadian Operations of Tahoe Resources Inc., President and CEO of Lake Shore Gold Corp. - currently President and CEO of Kirkland Lake Gold John Seaman: Director Former CFO of Premier Gold Mines and Wolfden Resources Inc. - Currently President and CEO of a large private security Company Mike Vitton: Director Over 30 years experience in the mining finance industry - Formerly Executive Managing Director, Head, US Equity Sales, BMO Capital Markets, Seat Holder, NYSE; and President, New York Society of Metals Analysts. A-1

19 Share Structure Analyst Coverage Company Snapshot Shares i/o 202,159,187 (1) Options 9,020,900 (1) Warrants 6,000,000 (1) Top 5 Shareholders (2) (~35%) Tocqueville Orion Mine Finance Fidelity M&G Investment Management Van Eck Associates RBC Capital Markets CanaccordGenuity Scotia Capital CIBC World Markets TD Securities PI Financial Beacon Securities Cormark Securities BMO Capital Markets Insiders (2) Sam Crittenden Eric Zaunscherb Ovais Habib David Haughton Daniel Earle Philip Ker Michael Curran Tyron Breytenbach Andrew Mikitchook Total Insiders (3) 5,572,369 Ewan Downie 3,760,278 (1) As at Sept 30, 2017 (2) Source: TSX infosuite and Sedi as at Jan 19, 2018 (3) Includes Ewan Downie A-2

20 Non IFRS Measures, Production Guidance NON-IFRS MEASURES The Company has included certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ( IFRS ) in this document. These include: earnings before interest, tax, depreciation and amortization (EBITDA), cash cost per ounce sold, all in sustaining cost ( AISC ) per ounce sold and average realized price per ounce. Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore, they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and should be read in conjunction with the Company's consolidated financial statements. Readers should refer to the Company s Management s Discussion and Analysis under the heading Non-IFRS Measures for a more detailed discussion of how such measures and are calculated. Gold Guidance 2018 Mine Production ounces Cash Cost per ounce (i) AISC per ounce (i) South Arturo 5,000-10,000 $600 - $650 $620 - $670 Mercedes 80,000-85,000 $700 - $750 $820 - $870 Consolidated 85,000-95,000 $690 - $740 $800 - $850 Mercedes mine is forecasting 300, ,000 oz silver for (i) A cautionary note regarding Non-IFRS metrics is included in the "Non-IFRS Measures" section of the Q Management's Discussion and Analysis A-3

21 Global Reserves Global Mineral Reserves & Resources GOLD (Au) PROVEN RESERVES PROBABLE RESERVES PROVEN+PROBABLE RESERVES PROPERTY Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Greenstone (Hardrock) , ,324 Mercedes (Note 1) South Arturo (Note 2) TOTAL , ,809 SILVER (Ag) PROVEN RESERVES PROBABLE RESERVES PROVEN+PROBABLE RESERVES PROPERTY Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's) Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's) Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's) Greenstone (Hardrock) Mercedes (Note 1) , ,339 South Arturo (Note 2) TOTAL , ,339 Global Resources GOLD (Au) MEASURED RESOURCES INDICATED RESOURCES MEASURED+INDICATED RESOURCES INFERRED RESOURCES PROPERTY Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Greenstone , , ,360 Mercedes (Note 1) South Arturo (Note 2) McCoy-Cove ,322 Hasaga , , TOTAL , , ,494 SILVER (Ag) MEASURED RESOURCES INDICATED RESOURCES MEASURED+INDICATED RESOURCES INFERRED RESOURCES PROPERTY Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's) Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's) Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's) Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's) Greenstone Mercedes (Note 1) , , , ,300 South Arturo McCoy-Cove Hasaga TOTAL , , , ,300 Note 1 - Reflects reserves and resources reported at June 30, 2016 Note 2 - Reflects reserves and resources reported at December 31, 2016 See disclosure page for forward looking statements and cautionary notes on reserve and resource estimates A-4