TSX:NMI OTCQX:NMKTF May Exceptional Team, Solid Production, Significant Valuation Upside

Transcription

1 OTCQX:NMKTF May 2016 Exceptional Team, Solid Production, Significant Valuation Upside

2 Forward-looking Statements Certain information set forth in this presentation contains forward-looking statements, and forward-looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company s expectations about its business and operations, and are based on the Company s current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as will, expects, anticipates, believes, projects, plans, and similar expressions. These statements are not guarantees of future performance or outcomes and undue reliance should not be placed on them. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are included in this presentation or incorporated by reference herein, except in accordance with applicable securities laws. All amounts are presented in United States dollars ("$") unless otherwise stated. References in this document to C$ are to Canadian dollars and references to "A$" are to Australian dollars. 2

3 Newmarket Gold Highlights Excellent balance sheet US$52.1 million cash (A$72.0 million equivalent) and US$1.6 million long-term debt Experienced capital markets and operational team with a proven track record of execution and significant value creation Three 100% owned operating gold mines in Australia with sustainable production of over 200,000 ounces annually with strong cash flow (all production unhedged) Record Q1, 2016 Fosterville Gold Mine Production of 33,138 ounces on record grade of 7.34g/t gold Q generated US$8.9 million free cash flow New mine site discoveries leading to organic production growth Disciplined gold asset consolidation strategy Highly leveraged to the AUD$ gold price (A$1725, May 9, 2016) NEWMARKET OPPORTUNITY $3, x $1,972 Peer Group 1 4.6x Peer Group 1 EV/oz Production Newmarket Valuation EV/oz Production Price/2016E CFPS (ratio) Newmarket Valuation Price/2016E CFPS (ratio) 1. Peer group details slide 9. Source: FactSet, Bloomberg, company disclosure, available equity research. Averages exclude Newmarket, details as at April 27,

4 STRONG FINANCIAL POSITION Balance Sheet Cash Balance (million) US$52.1 Working Capital (million) US$38.0 Debt (million) US$1.6 Capital Structure & Ownership OTCQX: NMKTF Market Capitalization (million) (as at May 09, 2016) US$470 Issued and Outstanding (million) Options (million) 10.7 Performance Share Units (million) 3.7 Warrants (million) 0.5 Fully Diluted (million) Luxor Capital Group LP 19.3% Eric Sprott 17.9% Management/Board (basic) 7.4% $67.5 CASH $52.1 Million Debt $1.6 Million Consensus Estimated Operating Cash Flow (US$ Millions) $74.2 $76.5 $112.1 $117.7 Average Daily Volume 2013A 2014A 2015A 2016E 2017E Source: Actuals, 2016E-2017E Factset Consensus 30 day 1,700,000 4

5 EXPERIENCED VALUE CREATION TEAM Raymond Threlkeld Douglas Forster Blayne Johnson Lukas Lundin Randall Oliphant Darren Hall Doug Hurst Chairman President, CEO & Director Executive VP, Director Director Director Chief Operating Officer VP Corporate Development ALIGNED WITH SHAREHOLDERS Strong Founders share ownership: C$12 million currently invested (7.4% issued and outstanding) Robert Dufour Robert Getz Kevin Conboy Edward Farrauto Chief Financial Officer Director Director Director Aligned PSU Vesting Plan based on share price performance Michael Vint Advisors Ian Telfer Director Capital Markets Focused on executing and creating significant shareholder value Michael Vitton Capital Markets The founders have created over $30 billion in market cap value 5

6 2015 RECORD YEAR SUSTAINABLE PRODUCER WITH A STRATEGY FOR LONG-TERM GROWTH 3 Australian Gold Mines FLAGSHIP FOSTERVILLE GOLD MINE RECORD PRODUCTION 123,095 RECORD GRADE 6.11 g/t Au RECORD RECOVERY 88.5% RECORD DRILL INTERCEPT 645g/t Au over 3.5m RECORD 222,671 oz CONSOLIDATED GOLD PRODUCTION THREE NEW MINE SITE DISCOVERIES CONSOLIDATED COSTS OPERATING CASH COSTS $US 704/oz ALL-IN SUSTAINING COSTS $US 987/oz ROBUST AUD$ GOLD PRICE 6

7 Q HIGHLIGHTS HIGHLIGHTS Fosterville Record: 33,138 ounces on record mill grade of 7.34 g/t Au Fosterville achieves low operating cash costs of US$473 1 and AISC of US$723 1 Consolidated Q1, 2016 production of 58,057 ounces Consolidated Operating Cash Costs of US$701 1 and All-in Sustaining Costs of US$908 1 (As at Mar 31, 2016) US$ Million Revenue $66.1 Operating cash flow $18.3 Net Income $6.5 US$8.9 2 million generated in free cash flow 27% improvement in Cosmo production to 16,340 ounces over Q4, 2015 including a record month in March of 8,022 ounces Continued high grade, visible gold-bearing drill intercepts from the Lower Phoenix gold system; Eagle and East Dipping structures including: g/t (17.6 opt) Au over 12.5 m (ETW: 4.5 m) Net Income per share (basic and diluted) $0.04 Cash (as at Mar 31, 2016) $52.1 Sustaining Capital $9.4 Fosterville s new gravity gold circuit is operational and being commissioned with free gold currently being recovered Growth Expenditure $3.8 As at March 31, Operating Cash Costs and All-in Sustaining Costs ( AISC ) refer to Non-IFRS Measures on Slide Free Cash flow based on operating cash flow of US$18.3 million less CAPEX of $9.4 million after investing US$3.8 million into growth. 7

8 Newmarket Gold/Lake Shore Gold Value Comp February 8, 2016: Tahoe Resources announces acquisition of Lake Shore Gold for C$945 million Trading Multiples NMI 2015 FY Apr 8/16 LSG Takeout Feb 8/16 Share / Offer price C$/sh $2.92 $1.71 FDITM Mkt Cap / Equity Purchase Price US$ million $418 $682 FDITM EV 1 US$ million $363 $ Production koz Au Cash Costs US$/oz $704 $ AISC US$/oz $987 $870 Reserves million oz Au Resources (inclusive) million oz Au EV/ 2015 Production US$/oz $1,630 $3,446 EV/ Reserves US$/oz $464 $798 EV/ Resources US$/oz $47 $55 P / CF 4.23x 6.90x 1.Newmarket Gold convertible debentures have been converted or redeemed. EV reflects proceeds from option and warrant exercises to date. 2. Claude Resources cash cost and AISC based on Q1-Q3 15. Source: GMP Securities 8

9 Peer Group Comparison Price / Consensus 2016E CFPS (ratio) EV / Consensus 2016E EBITDA (ratio) Average: 7.0x 4.2x 4.6x 4.7x 5.6x 5.7x 5.8x 7.6x 9.1x 9.2x 10.5x Average: 5.7x 2.9x 4.4x 4.9x 5.0x 5.3x 5.4x 5.8x 7.0x 7.5x 7.9x EV / 2016E Prod. (US$/oz) $4,459 Average: $3,267 $2,403 $2,728 $2,835 $3,195 $3,268 $3,301 $3,497 $3,719 $1,972 All comparison metrics present an opportunity for a continued significant valuation opportunity with Newmarket Gold Source: FactSet, Bloomberg, company disclosure, available equity research. Averages exclude Newmarket as at April 27,

10 PRODUCING IN A TOP MINING JURISDICTION MAUD CREEK GOLD PROJECT Location Northern Territory Ownership 100% Metals Gold Mining Open Pit + Underground Stage PEA M&I Resources 724, g/t 1 Producing Mine Development Project Mine site Discovery AUSTRALIA 2016E CONSOLIDATED GUIDANCE Production: 205, ,000 ounces Operating Cash Cost 2 : US$650 - US$725 per ounce All-in sustaining costs 2 : US$950 - US$1,025 per ounce COSMO/UNION REEF Location Northern Territory Ownership 100% Metals Gold Mining Underground Capacity 2.0Mtpa Yrs in Production 2.5 Prod. Guidance 60k 65k ounces Discovery Western Lodes Discovery FOSTERVILLE GOLD MINE Location Bendigo, Victoria Ownership 100% (2% Royalty) Metals Gold Mining Underground Capacity 850Ktpa Yrs in Production +10 Prod. Guidance 110k 120k ounces Discovery Eagle Fault Zone BIG HILL GOLD PROJECT Location Victoria Ownership 100% Metals Gold Mining Open Pit Stage Permitting M&I Resources 166, g/t 1 1. See slide 27/28 for details on Mineral Resource and Reserve details 2. see Non-IFRS Disclosure p.35 STAWELL GOLD MINE Location Stawell, Victoria Ownership 100% (1% Royalty) Metals Gold Mining Underground Capacity 1.0Mtpa Yrs in Production +30 Prod. Guidance ~35k ounces Discovery Aurora B Gold Zone 10

11 Flagship Fosterville Mine Low Cost Producer 2015 Record Production 123,095 oz 2015 Record Grade 6.11 g/t Au H2/15 Record Production 64,044 H2/15 Record Grade 6.37g/t Au H2/15 Record Recoveries 88% H2/15 Operating Cash Costs per ounce $496 H2/15 All-In Sustaining Costs per ounce $781 1 Q1/16 Record production 33,138 Q1/16 Record grade 7.34g/t Au DISCOVERY LOWER PHOENIX GOLD ZONE High grade, visible gold-bearing Lower Phoenix system tested over two kms and open for expansion 2015 MINERAL RESOURCE & RESERVES Proven and Probable underground Mineral Reserves increased 34% to 244,000 ounces of gold. (Dec ) Mineral Reserve grade increased 25% grading 6.95 g/t gold (Dec ) Fosterville s current mining front comprising the Phoenix and Lower Phoenix gold systems, and associated structures, host Measured and Indicated Mineral Resources containing 673,000 ounces grading 8.33 g/t 2 open up and down plunge U.S. Dollars unless stated otherwise 1. excludes corporate G&A, average for Q3/Q4, 2015, see page for further disclosure 11

12 5,450mN 6,000mN 8050mN SOUTH Fosterville Mine (Longitudinal Projection) NORTH Harrier Harrier Decline 12.5 g/t Au over 3.3m Harrier Drill Drive 1km step-out drilling H2/2016 drill results 6.2 g/t Au over 1.9m Drill Targets Phoenix Lower Phoenix 7.3 g/t Au over 13.9m 9.2 g/t Au over 11.8m 6.5 g/t Au over 6.0m 9.3 g/t Au over 3.3m 4.4 g/t Au over 8.0m g/t Au over 5.9m Mineral Resources, Reserves and MINING as at December 31, 2015 Drilling underway Proven & Probable Mineral Reserves of 244,000 ounces grading 6.95 g/t gold Fosterville Global Measured and Indicated Mineral Resources of 2.1 million ounces grading 4.39 g/t gold 12

13 Fosterville Mine (Lower Phoenix, Phoenix Mining Front) 11.1 g/t Gold over 4.9m Phoenix 286 g/t Gold (Visible Gold) over 2.8m 385 g/t Gold (Visible Gold) over 3.4m 16.4 g/t Gold (Visible Gold) over 16.5m 645 g/t Gold over 3.5m 161 g/t Gold over 4.9m Legend Lower Phoenix 501 g/t Gold over 4.5m 73.2 g/t Gold (Visible Gold) over 7.8m 112 g/t Gold over 11.9m 12.8 g/t Gold over 8.5m 24.8 g/t Gold over 2.5m Drill Intercepts Coloured by Gram-Metre Mined Stopes Reserves > Mined Development Mine Design Target Trend Lower Phoenix & Phoenix gold system, current mining fronts at Fosterville include: M & I Resources of 673,000 oz grading 8.33 g/t gold Inferred Resources of 101,000 oz grading 9.49 g/t gold 13

14 Fosterville Mine Peer Cost Comparison Underground Mine Comparisons H2/15 Production H2/15 Cash Costs Per Ounce H2/15 AISC Per Ounce Fosterville/Newmarket Gold 1 (Australia) 64,044 $496 $781 Andy Wells/Doray Minerals 2 (Australia) 47,197 $443 $783 (open pit/underground) Carosue Dam/Saracen Minerals 2 (Australia) 82,405 $548 $742 (open pit/underground) Timmins West/Lakeshore Gold 3 (Canada) 64,000 $607 $929 Pajingo/Evolution Mining 2 (Australia) 32,316 $634 $895 Macassa/Kirkland Lake 4 (Canada) 61,475 $650 $ See non-ifrs details on slide 32, second half 2015 end Dec 31, 2015 for costs and production, excludes corporate G&A 2. Jun, Dec 2015 Quarterly Reports, Weighted average costs based on quarterly results. Assuming USD:AUD for all quarters 3. Q3 and Q4 Results Press Releases 4. Mar, Jun, Sep, Dec 2015 Quarterly Reports, Production based on 2015 Stub-year 8 month period May 1 to Dec 31, 2015, costs based on 6 month period ended Oct 31,

15 Operations Overview Fosterville Operation Profile 2014A 2015A 2016 Guidance Q1/2016A Gold Production 105, , Koz 33,138 Gold grade (g/t) n/a 7.34 Recovery (%) n/a 86.8 Operating Cash Costs (US$/oz) $737 $516 $500-$575 $423 AISC (US$/oz) $1,186 $837 1 n/a 2 $723 Stawell Operation Profile 2014A 2015A 2016 Guidance Q1/2016A Gold Production 39,230 36,321 ~35 Koz 8,579 Gold grade (g/t) n/a 1.43 Recovery (%) n/a 79.9 Operating Cash Costs (US$/oz) $1,151 $917 $900-$975 $1,143 AISC (US$/oz) $1,193 1 $1,063 1 n/a 2 $1,218 Cosmo Operation Profile 2014A 2015A 2016 Guidance Q1/2016A Gold Production 77,740 63, Koz 16,340 Gold grade (g/t) n/a 3.09 Recovery (%) n/a 90.7 Operating Cash Costs (US$/oz) $1,000 $917 $720-$795 $939 AISC (US$/oz) $1,263 1 $1,154 1 n/a 2 $990 FY 2015 Stawell 36,321 Cosmo 63,255 Fosterville 123, ,671 oz Gold Production (oz) 55% GOLD PRODUCTION FROM FLAGSHIP FOSTERVILLE GOLDMINE 1. (see Non-IFRS Disclosure p.35) Consolidated Company AISC guidance is US$950 US$1,025/oz and operating cash cost guidance is US$650 US$725/oz 15

16 Stawell Mine Aurora B Discovery Section Traditionally mined West Flank total production to date 2.3 million ounces Magdala Maiden Inferred Mineral Resource of 30,400 ounces grading 3.5g/t gold. The grade of the Aurora B Inferred Mineral Resource is 42% greater than the underground Mineral Reserve grade Aurora B located approximately 500m above Aurora A East Flank Target Aurora A 13.7 g/t gold over 5.4 m Drilling underway 16

17 Cosmo Mine Discovery (Close to Infrastructure) WESTERN LODE PLAN MAP Sliver Target B Union Reefs mill has 1.2Mt of excess capacity to treat additional ore Record production in March 2016 over 8,000 ounces produced at 4.18 g/t gold EASTERN DEEPS SECTION A g/t gold over 11.4 m, g/t gold over 6.4 m Western Lode Target 7.42 g/t gold over 4.3 m 5.85g/t gold over 5.7 m g/t gold over 2.8 m Inc. 6.4 g/t gold over 3.1 m 6.59 g/t gold over 6.4 m metres The Cosmo Eastern Deeps drilling has identified mineralization approximately Cosmo 200 Long m down Section plunge from the base of current resources Drilling underway 17

18 Newmarket Gold Advantage PEOPLE OPERATIONS DISCOVERIES Founders have created over $30 billion of shareholder value Shareholder alignment C$12M invested, 7.4% equity ownership, performance share units vest based on share price performance Demonstrated operational excellence Three operating mines in Australia with over 220,000 ounces of annual gold production, strong cash position US$52.1 million, with low Q operating cash costs of $701 and AISC of $908 Trend to higher consolidated grades and recoveries Three new mine site gold discoveries close to current infrastructure with significant resource expansion opportunity extensive drilling underway New Eagle visible gold discovery at Fosterville traced over 600m x 290m open down plunge GROWTH Newmarket s vision is to become the next quality intermediate gold producer with annual production of kozs Focusing on internal organic growth and a prudent accretive acquisition strategy 18

19 Contact Us Douglas Forster President & CEO, Director T: E: Ryan King Vice President, Corporate Communications T: E:

20 Proven Track Record of Success Principals have founded, managed and sold mining companies with a combined market value of approximately $30 billion Public Sold Newmarket Gold Inc. s mission is to deliver exceptional shareholder value through a disciplined approach to acquiring quality, gold production assets and outstanding development opportunities in politically stable jurisdictions worldwide 20

21 Broker Analyst Coverage 1 and Liquidity Since July Initiation Date Target Price 30 Day Avg Volume 1,700,000 (as of April ) Target Rating FY16E Production Oz (000 s) FY16E Cash Costs Beacon Securities Nov 15 $4.15 Buy 211 $704 $1,139 $29.5 $377 Cormark Securities Nov 15 $3.30 Buy 222 $710 $1,017 _ $245 GMP Oct 15 $3.55 Buy 227 $680 _ $55 $351 Firm GMP Securities Anonymous TD Securities R. James CIBC Beacon Canaccord RBC Scotia FY16E AISC Laurentian Bank Dec 15 $3.50 Buy 213 $697 $948 Raymond James Nov 15 $3.75 Strong Buy 225 $709 $1,012 $58 $412 RBC Capital Nov 15 $3.50 Buy 229 $696 $991 $58 $391 Rodman & Renshaw Dec 15 $4.00 Buy 229 $725 $995 $47 $374 PI Financial Jan 16 $3.85 Buy 226 $699 $944 $60.1 $209 M Partners Mar 16 $3.60 Buy 225 $709 $1,062 $76.1 BMO Feb 16 $4.00 Buy 222 $686 $982 $480 Average $3.55 CAPEX NAV Shares Traded (Trading details July Mar ) 24.5 Million 15.0 Million 8.7 Million 6.6 Million 5.5 Million 5.0 Million 3.7 Million 3.4 Million 2.7 Million 1. Factset consensus OPINIONS ESTIMATES OR FORECASTS REGARDING NEWMARKET GOLDS PERFORMACE MADE BY THESE ANALYSTS ARE THIERS ALONe AND DO NOT REPRESENT THE OPINIONS ESTIMATES OR FORECASTS OF NEWMAKRET GOLD OR ITS MANAGEMENT. 21

22 Gold Spot (in AUD$) Appendix: Gold has remained strong in AUD terms $2,000 Historical Gold Price (in AUD$) $1,600 Current Spot Gold: AUD$1,725/oz (May 09, 2016) $1,200 $800 $ Source: FactSet, Bloomberg, company disclosure, available equity research 22

23 Appendix: Mineral Resources (Dec ) Measured Tonnes (kt) Gold Grade (g/t) Oz Gold (koz) Fosterville UG 2, Fosterville Tailings Cosmo 1, Stawell UG Maud Creek 1, Total Measured 5, Indicated Tonnes (kt) Gold Grade (g/t) Oz Gold (koz) Fosterville UG 12, ,904 Cosmo 2, Stawell UG Stawell Op 3, Burnside 7, Union Reefs 3, Pine Creek 8, Maud Creek 5, Total Indicated 44, ,939 Total (M&I only) 50, ,691 Inferred Tonnes (kt) Gold Grade (g/t) Oz Gold (koz) Fosterville UG a 5, Cosmo C Stawell UG d Stawell Op f Burnside g 6, Union Reefs h 3, Pine Creek i 2, Maud Creek e 1, Total Inferred 21, ,751 Source: Newmarket Gold March 21, 2016 press release announcing 2015 year-end mineral reserves and mineral resources Note: Mineral Resources are inclusive of Mineral Reserves. Mineral Resources have been rounded to 1,000 tonnes, 0.01 g/t Au and 1,000 ounces. Minor discrepancies in summation may occur due to rounding. Mineral Resources are stated as of Dec 31, Gold Price A$ 1,500/oz used. 23

24 Appendix: Mineral Resources (Dec ) Fosterville Central Area Lower Sulphide Mineral Resources (Inclusive of Mineral Reserves) below 5050mRL as at Dec. 31, 2015 Measured Indicated Inferred Classification Structure Tonnes Grade In situ Gold Tonnes Grade In situ Gold Tonnes Grade In situ Gold (kt) g/t Au (koz) (kt) g/t Au (koz) (kt) g/t Au (koz) Allwood* Lower Phoenix Eagle* Lower Phoenix East Dippers* Lower Phoenix Ellesmere Harrier Kestrel Lower Phoenix* Lower Phoenix Lower Phoenix* FW Lower Phoenix Phoenix* Phoenix Raven Robin Splays Vulture Stockpile# Total Sulphide , ,109 1, Notes: *Fosterville s underground Measured and Indicated Mineral Resources include resources in the existing mining fronts in the Phoenix and Lower Phoenix gold system of 673,000 ounces grading 8.33 g/t Au. For the Mineral Resource estimate, the Qualified Person is Troy Fuller, MAIG, Geology Manager for Newmarket The Mineral Resources reported are inclusive of the Mineral Reserves for the same area. Lower cut-off grade of 3.0 g/t is applied to Lower Sulphide Mineral Resources below 5050mRL. Mineral Resources are rounded to 1,000 tonnes, 0.01 g/t Au and 1,000 ounces. Minor discrepancies in summation may occur due to rounding. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Mineral Resource estimate used a gold price of A$1,500 per ounce. #Stockpile Inventory includes Lower Central Area Mineral Resources contained within the Run of Mine Stockpile and Coarse Ore Stockpile as at 31 st December

25 Appendix: Mineral Reserves (Dec ) 2P Reserves Tonnes (Mt) Grade Au (g/t) Au (kozs) Fosterville (Under Ground) Fosterville (Tailings) Cosmo Stawell (Under Ground) Stawell (Open Pit) Big Hill Union Reefs (Under Ground) Union Reefs (Open Pit) Pine Creek Total Proven & Probably Reserves Source: Newmarket Gold March 21, 2016 press release announcing 2015 year-end mineral reserves and mineral resources Note: Mineral Resources have been rounded to 1,000 tonnes, 0.01 g/t Au and 1,000 ounces. Minor discrepancies in summation may occur due to rounding. Mineral Reserves have demonstrated economic viability. Processing Recoveries range between 88% and 93%, excluding Fosterville Tailings which expects recoveries of 25% (see reports for details). Mining Recoveries range from 85% and 95% (see reports for details). Gold Price of $A1,450/Oz used. Mineral Reserves as of December 31, Mining Dilution ranges from 5% to 20% (see reports for details). 25

26 Appendix: Fosterville Mine New Discoveries Eagle Fault, highlight intercepts include; 386 g/t Au (1) over 9.15 m (ETW 3.35 m) in hole UDH1238 (Including 5,283 g/t Au (1) over 0.6 m), 268 g/t Au (1) over 7.85 m (ETW 2.77 m) in hole UDH1255 (Including 5,276 g/t Au (1) over 0.35 m) and g/t Au (1) over 8.7 m (ETW 7.78 m) in hole UDH1240A. Visible Gold has also been observed in the upper parts of Eagle zone in underground exposures. Lower Phoenix Footwall, intercepted g/t Au (1) over 6.3 m (ETW 4.33 m) in hole UDH1219A East Dipping Fault, intercepted 246 g/t Au (1) over 0.90 m (ETW 0.81 m) in hole UDH1298 and g/t Au over 5.1 m (ETW 4.09 m) in hole UDH1294 Kestrel structure returned 5.37 g/t Au over 9.75 m (ETW 5.12 m) in hole UDH1274 and 6.16 g/t Au over m (ETW 5.12 m) in hole UDH1122 (1) Visible gold present in drill intercept, ETW - Estimated True Width, for further information on drill results see Newmarket Gold s press releases dated July 27, 2015 and September 14, 2015 located at 26

27 Appendix: Fosterville Mine (Eagle Zone - Visible Gold) 27

28 Appendix: Cosmo Mine Western Lodes A number of drill holes have now penetrated the Western Lodes Target. Drill results for the Cosmo Western Lodes which are outside of the current mine plan include 7.42 g/t gold over 4.3 m (estimated true width 2.85 m) and 6.59 g/t gold over 6.4 m (estimate true width 1.65 m). Work continues to fully define the potential of the Western Lodes Target is located only 160 m from current development and has the potential to increase resources at Cosmo and expand the current mine plan to alternative mining areas. Note: For further information on drill results see Newmarket Gold s press release dated July 22, 2015 located at 28

29 Appendix: Cosmo Mine Sliver Lode & Deeps Cosmo Deeps Development of the Sliver Lode at the Cosmo Mine with additional high grade results including: g/t Au over 11.4 m (ETW 11.4 m) in hole CE67518 and 14.07g/t Au over 6.0 m (ETW 5.83 m) in hole CE Down plunge drilling in the footwall area of the Cosmo deposit, the Cosmo Deeps drill program has identified mineralization approximately 200 m down-plunge from the current base of Mineral Resources at Cosmo. The Cosmo Deeps drilling program was successful and include intercepts such as 5.85 g/t Au over 5.70 m (ETW 4.2 m) in hole CE84099 and 3.09 g/t Au over 6.4 m (ETW 5.0 m) in hole CE The very encouraging Cosmo Deeps and Sliver drill results have identified an opportunity to drill the down plunge potential of these targets from surface. This program is expected to commence in late 2015 and will cover 2,000 m of drilling to allow for future infrastructure planning for the mine. This drilling is planned to intersect the mineralization around 100 m down plunge from recent Sliver Lode drilling results as well as around 80 m above the intercept in drill hole CE This program has the potential to add significant mineralization extension to the Cosmo deposit. Note: For further information on drill results see Newmarket Gold s press release dated September 21, 2015 located at 29

30 Appendix: Stawell Aurora B East Flank New discovery of Aurora B East Flank mineralization is a significant event in the long history of the Stawell mine. West Flank at Stawell has produced 2.3 million oz gold whereas the East Flank, where the Aurora B discovery has been made has no recorded production. Drilling on the Aurora B discovery returned high-grade intercepts containing visible gold including: 7.06 g/t gold over m (estimate true width 8.3 m). Additional drilling on this new discovery is on-going. Note: For further information on drill results see Newmarket Gold s press release dated July 22, 2015 located at 30

31 Fosterville Mine Gravity Circuit Addition The company has now committed to installing a 10 tonnes per hour gravity circuit (Knelson Concentrator) within the secondary ( Regrind ) grinding circuit (Figure 5) at a cost of US$0.4 million with the installation expected to commence in early 2016 and be operational by the end of Q

32 Appendix: Non-IFRS and Additional Information Non-IFRS Measures Newmarket Gold believes that investors use certain indicators to assess gold mining companies. The indicators are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance in accordance with the International Financial Reporting Standards. Operational Cash Costs per Ounce is a non-ifrs performance measure which could provide an indication of the mining and processing efficiency at the operations. The Company calculates operating cash costs per ounce by deducting silver sales revenue as a by-product from operating expenses per the consolidated statement of operations, then dividing by the gold ounces sold during the applicable period. Operating expenses include mine site operating costs such as mining, processing and administration as well as royalties, however excludes depletion and depreciation, share-based payments and rehabilitation costs. There are variations in the method of computation of operational cash costs per ounce as determined by the Company compared with other mining companies. For more detail on the operational cash costs per ounce determination for Crocodile Gold, please visit or and review the latest Annual Financial Statements issued on March 19, All-In Sustaining Costs per Ounce of Gold ( AISC ) Effective December 31, 2013, the Company has adopted an all-in sustaining cost ( AISC ) performance measure that reflects all of the expenditures that are required to produce an ounce of gold from current operations. While there is no standardized meaning of the measure across the industry, the Company s definition conforms to the AISC definition as set out by the World Gold Council in its guidance dated June 27, The World Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies. The Company believes that this measure will be useful to external users in assessing operating performance and the ability to generate free cash flow from current operations. The Company defines AISC as the sum of operating cash costs (per above), sustaining capital (capital required to maintain current operations at existing levels), capital lease repayments, corporate general and administrative expenses, mine exploration within the known resources and rehabilitation accretion and amortization related to current operations. AISC excludes capital expenditures for significant improvements at existing operations deemed to be expansionary in nature, exploration and evaluation related to growth projects, rehabilitation accretion and amortization not related to current operations, financing costs, debt repayments, share-based compensation not related to operations, and taxes. Additional Information Notes for Page 25: For information regarding mineral resource and reserve estimates, including parameters used to generate the estimates and depletion, please see the technical reports titled: NI TECHNICAL REPORT FOSTERVILLE GOLD MINE, VICTORIA, AUSTRALIA PREPARED FOR NEWMARKET GOLD INC dated March 21, 2016 and; NI TECHNICAL REPORT BIG HILL ENHANCED DEVELOPMENT PROJECT AT STAWELL GOLD MINE MINERAL RESOURCES & RESERVES PREPARED FOR CROCODILE GOLD CORP dated June 6, For the Northern Territory Mineral Reserve Estimates please refer to the technical reports titled: REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OFTHE COSMO DEEPS GOLD PROJECT dated March 21, 2016; NI TECHNICAL REPORT STAWELL GOLD MINE, VICTORIA, AUSTRALIA PREPARED FOR NEWMARKET GOLD INC dated March 21, 2016; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE UNION REEFS GOLD PROJECT dated December 31, 2012; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE PINE CREEK GOLD PROJECT dated December 31, 2012; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE MAUD CREEK GOLD PROJECT dated December 31, 2012 and; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE BURNSIDE GOLD AND BASE METAL PROJECT dated December 12, Mineral resources that are not mineral reserves do not have demonstrated economic viability. Qualified Person Mark Edwards, MAusIMM (CP), MAIG, General Manager, Exploration, Newmarket Gold, is a "qualified person" as such term is defined in National Instrument and has reviewed and approved the technical information and data included in this presentation. 32