OPERATING & FINANCIAL RESULTS CONFERENCE CALL

Transcription

1 Joseph F. Conway, Interim President & Chief Executive Officer PRIMERO MINING CORP. May 3, 2017 OPERATING & FINANCIAL RESULTS CONFERENCE CALL

2 Cautionary Statement PRIMERO 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 Management Team PRIMERO Joseph Conway INTERIM PRESIDENT & CHIEF EXECUTIVE OFFICER Currently Vice Chairman and was previously President and C.E.O. of Primero from June 2010 through January Former CEO, President & Director of IAMGOLD and Repadre Capital. 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). *See final slide for endnotes. 3

4 Investment Highlights EMERGING MID-TIER GOLD PRODUCER PRODUCING GOLD IN NORTH AMERICA High-grade gold producer located in mining friendly jurisdictions in Canada and Mexico. ENHANCED MANAGEMENT TEAM Strengthened operations and financial team. EXPLORATION & DEVELOPMENT PIPELINE Large land positions in proven world class gold districts. PRIMERO VALUE OPPORTUNITY Valuation disconnect, trading at 0.2x P/NAV, or 1.3x P/2018E CFPS 1. 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 CORPORATE OFFICE Toronto, Ontario *See final slide for endnotes. 4

5 Q Operating Results PRIMERO OPERATING RESULTS Q Q Gold equivalent production 2 (koz AuEq) Gold production (koz Au) Silver production (Moz Ag) Total cash costs 3 ($/oz AuEq) $827 $944 All-in sustaining costs 3 ($/oz Au) $1,335 $1,555 *See final slide for endnotes. 5

6 Q Operating Results SAN DIMAS OPERATING RESULTS Q Q Mill throughput 4 (TPD) 1,835 1,639 Gold equivalent production 2 (koz AuEq) Gold production (koz Au) Silver production (Moz Ag) Total cash costs 3 ($/oz AuEq) $790 $998 All-in sustaining costs 3 ($/oz Au) $975 $1,362 Note: In Q1 2017, $5.2M of San Dimas site costs incurred during the strike period have been excluded from AISC. UNDERGROUND MINING RATES (TPD 4 ) MILL THROUGHPUT (TPD 4 ) Q ,661 Q ,639 Q ,541 Q ,466 Q ,012 Q ,104 Q ,116 Q ,086 Q ,807 Q ,835 *See final slide for endnotes. 6

7 Q Operating Results BLACK FOX OPERATING RESULTS Q Q Mill throughput 4 (TPD) 2,285 2,467 Gold production (koz Au) Total cash costs 3 ($/oz AuEq) $859 $851 All-in sustaining costs 3 ($/oz Au) $1,233 $1,404 UNDERGROUND MINING RATES (TPD 4 ) MILL THROUGHPUT (TPD 4 ) Q Q ,467 Q Q ,524 Q Q ,538 Q Q ,452 Q Q ,285 *See final slide for endnotes. 7

8 2017 Production Guidance PRIMERO 2017 GUIDANCE SAN DIMAS BLACK FOX TOTAL A Gold equivalent production 2 (koz AuEq) Gold production (koz Au) Silver production (Moz Ag) Total cash costs 3,4 ($/oz AuEq) $650 - $800 $850 - $950 $700 - $850 $865 All-in sustaining costs 3,4 ($/oz Au) $1,100 - $1,300* $1,150 - $1,250 $1,200 - $1,400* $1,333 Capital expenditures ($M) $51.1* $14.8 $65.9* $66.5 Note: San Dimas 2017E expenditures related directly to the reset investment program are expected to total $25 M in 2017, above and beyond baseline operations, and are included in AISC and Capital expenditures totals. *See final slide for endnotes. 8

9 Q Financial Results PRIMERO FINANCIAL RESULTS ($M except per share amounts) Q Q Revenue $33.7 $50.5 Earnings from mine operations $1.4 ($5.8) Net income (loss) $13.5 ($13.2) EPS ($/share) $0.07 ($0.08) Adjusted net income 5 (loss) $nil ($8.5) Adjusted EPS 5 ($/share) $0.00 ($0.05) Adjusted EBITDA 5 ($0.4) $5.9 Operating cash flow (before working capital changes) ($2.1) ($8.5) CFPS ($/share) ($0.01) ($0.05) *See final slide for endnotes. 9

10 Liquidity & Balance Sheet PRIMERO TOTAL LIQUIDITY (As at March 31, 2017) TAXES RECEIVABLE $49M $31M TOTAL LIQUIDITY + $49M TAXES RECEIVABLE CASH $16M CREDIT 6 $15M BALANCE SHEET (As at March 31, 2017) ($M) Cash $16 Line of Credit 6 $15 Total Liquidity $31 VAT & Income Taxes Receivable $49 Convertible Debenture (5.75%, due Feb. 2020, US$6.55 conversion) Line of Credit Draw Down 6 (Due November 2017) $75 $60 Total Debt 7 $135 CAPITAL STRUCTURE (M) Common Shares O/S 192 Fully Diluted Shares O/S *See final slide for endnotes. 10 Market Capitalization (at April 28, 2017) C$125

11 SAN DIMAS DISTRICT 11

12 Primero s Platform Asset SAN DIMAS LOCATION Sinaloa-Durango, Mexico OWNERSHIP 100% (silver stream 2 ) METALS GEOLOGY HISTORY MINING MILL CIRCUIT Gold & Silver +120 known epithermal veins, textbook model of low sulphidation epithermal precious metal vein swarms years mine production history, the district has produced +11 Moz Au and +620 Moz Ag. Underground long-hole and cutand-fill Conventional cyanidation and Merrill-Crowe process MILL CAPACITY 2,500 TPD (nameplate) GREEN POWER TAILINGS 14 MW hydroelectric power plant ($0.015 vs $0.11/kWh from grid) State of the art, dry stack tailings *See final slide for endnotes. 12

13 A World-Class Precious Metals District SAN DIMAS STRIKE ENDS WITH NEW CBA Ended April 13, 2017 with new Collective Bargaining Agreement. New CBA allows for: > Competitive costs with bonus parameters aligned to San Dimas KPIs. > Continuous 7 days per week mine operations. > Eliminated daily UG shift change with 2x 10.5 hour shifts/day. PHASED RESET UNDERWAY Focus on debottlenecking, prioritizing mine headings, improving communications and mine planning. Investment for increased development and exploration drilling. > $25 million in 2017, above baseline budget. LOOKING BEYOND 2017 Goal of steady-state ~175 koz AuEq 2 /yr with continued exploration success. AISC below $1,000/oz Au 3. Annual capital investment of ~$40M/yr including sustaining capital and exploration. *See final slide for endnotes. 13

14 BLACK FOX COMPLEX 14

15 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 approx. 1.5 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) 15

16 Continuing to Evaluate Future Potential BLACK FOX MANAGEMENT IS CLOSELY MONITORING PERFORMANCE Continued monitoring of short-term results and cash flows. Black Fox must deliver as planned. Corrective actions include possible care and maintenance, if required. Black Fox was cash flow neutral in Q including exploration. FOCUS ON EXPLORATION Strong potential for future exploration success at Black Fox. > Below the existing ore body. > Other areas on the concession (Froome-like deposits). Cash generated from operations will be re-invested in exploration. DEEP DRILLING PLAN Deep drilling to assess the extension and continuity of the Black Fox deposit. > 1.0 km to 1.5 km deep. Will advance subject to capital availability. 16

17 Expected Near-Term Catalysts and News Flow PRIMERO February 2017 March 2017 April 2017 Q2 - Q Ongoing Ongoing CORPORATE G&A REDUCED Reduced corporate headcount by 30%, downsizing office space and reducing directors expenses. RCF EXTENDED Amended terms to extend maturity to November 2017, and guaranteed by Silver Wheaton. NEW SAN DIMAS CBA Competitive cost structure aligned to future success of San Dimas operations. SAN DIMAS OPERATIONS Prioritize headings and key focus areas. Investment in increased development and exploration. STRATEGIC REVIEW Explore alternatives to improve shareholder value. MEXICAN TAX Ongoing dialogue with Mexican government toward resolution. 17

18 Investment Highlights EMERGING MID-TIER GOLD PRODUCER PRODUCING GOLD IN NORTH AMERICA ENHANCED MANAGEMENT TEAM EXPLORATION & DEVELOPMENT PIPELINE PRIMERO VALUE OPPORTUNITY 18

19 19

20 Safety of our People is our First Priority RESPONSIBLE MINING HEALTH AND SAFETY Committed to a workplace free of accidents. San Dimas reduced its TRIFR by 64% from 2010 to Black Fox reduced reportable incidents quarter-over-quarter in ENVIRONMENTAL San Dimas certified Clean Industry PROFEPA (Mexican EPA). San Dimas utilizes sustainable hydroelectric power. San Dimas operates a state-of-theart dry stack tailings facility. Black Fox reduced Green House Gas (GHG) emissions in 2015 by 26%. SOCIAL RESPONSIBILITY Awarded Socially Responsible Company by CEMEFI (Mexican Centre for Philanthropy) for 5 th consecutive year. Tayoltita hospital upgrade completed February Established, positive working relationship with Wahgoshig First Nation in Canada. 20

21 Expected Capital & Exploration Expenditures 2017 GUIDANCE CAPITAL EXPENDITURES (estimated 2017 costs) ($M) CAPITALIZED EXPLORATION EXPENDITURES (estimated 2017 costs) ($M) San Dimas Underground Development $27.3 San Dimas Diamond Drilling $20.0 San Dimas Sustaining Capital $1.9 San Dimas Projects - San Dimas Sub Total $29.2 San Dimas Drifting $1.9 San Dimas Sub Total $21.9 Black Fox Diamond Drilling $3.9 Black Fox Underground Development $7.0 Black Fox Sustaining Capital $3.3 Black Fox Complex Sub Total $10.3 Total $39.5 Regional Exploration $0.6 Black Fox Complex Sub Total $4.5 Total $ Capitalized Exploration Expenditures $ Capital Expenditures $49.8 Note: Figures may not add due to rounding. 21

22 Summary of Debt & Tradable Securities PRIMERO Face Value REVOLVING LINE OF CREDIT FACILITY Drawn at March 31, 2017: $60 million CONVERTIBLE DEBENTURES TSX:P.DB.V PRIMERO WARRANTS TSX:P.WT.C $75.0 million n/a Maturity / Expiry November 23, 2017 February 28, 2020 June 24, 2018 Interest Rate Floating Rate 5.75% n/a Payable Monthly Semi-Annually n/a Conversion / Strike n/a US$6.55 C$3.35 Additional Notes 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 22

23 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 23

24 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 24

25 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 11 th 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 25

26 Mineral Reserves and Mineral Resources (As at December 31, 2016) 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 ,220 Measured & Indicated ,879 Inferred , Mineral Resources are calculated inclusive of Mineral Reserves. 2. Figures may not add due to rounding. Notes to the San Dimas Mineral Reserve Statement: 1. Assumed gold price of US$1,200 per troy ounce and silver price of US$17 per troy ounce. 2. A two-pass cut-off grade was applied at San Dimas; first-pass of 3.22 g/t gold equivalent based total all-in costs of $118.00/t ($81/t direct costs and $37/t sustaining capital), and secondpass of 2.22 g/t gold equivalent based on direct operating costs only. 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 95% and silver of 92%. 4. Exchange rate assumed is MXN$18.00/US$ 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. Mineral Reserves do not consider the silver purchase agreement which 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 $4.28 per ounce (adjusted by 1% per year) and market prices. Notes to the San Dimas 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$17 per troy ounce. 3. San Dimas cut-off grade of 2.0 g/t gold equivalent was applied. 4. 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

27 Mineral Reserves and Mineral Resources (As at December 31, 2016) 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 Mineral Resources are calculated inclusive of Mineral Reserves. 2. Figures may not add due to rounding. Notes to Black Fox Mineral Reserve estimate: 1. Assumed gold price of US$1,200 per troy ounce. 2. A two-pass cut-off grade was applied at Black Fox underground; first-pass of 4.74 g/t gold based on total all-in costs of C$214.00/t (C$166/t direct costs and C$48/t sustaining capital), and second-pass of 3.47 g/t gold based on direct operating costs only. 3. Assumed processing recovery factors at Black Fox for gold of 95%. 4. Exchange rate assumed is CDN$1.30/US$ 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. Patrick McCann, P.Eng., Principal Engineer, Primero and a QP for the purposes of NI 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. 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

28 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 ). 28

29 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. 29

30 Executive Management PRIMERO Joseph Conway INTERIM PRESIDENT & CEO Currently Vice Chairman and was previously President and C.E.O. of Primero from June 2010 through January Former CEO, President & Director of IAMGOLD and Repadre Capital. 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. 30

31 Board of Directors PRIMERO Wade Nesmith CHAIRMAN Founder of Primero. Founding and former director of Silver Wheaton. Joseph Conway INTERIM PRESIDENT & CEO 1 Currently Vice Chairman and was previously President and C.E.O. of Primero from June 2010 through January Former CEO, President & Director of IAMGOLD and Repadre Capital. 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. 31 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

32 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. 32

33 Endnotes 1. As at April 28, Based on Analyst Consensus. Source: Thomson One. 2. 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. 3. Cash costs and All-in Sustaining Costs are non-gaap measures. Refer to the Company s first quarter 2017 MD&A for a reconciliation to operating expenses. 4. Based on 90 days in the first calendar quarter of 2017 (January 1 to March 31). Due to strike action taken by unionized employees at San Dimas, the mine only achieved 45 operating days in the quarter. 5. Adjusted net income/earnings, adjusted net income/earnings per share and adjusted EBITDA are non-gaap measures. Neither of these non-gaap performance measures has any standardized meaning and is therefore unlikely to be comparable to other measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company s performance. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to the Company s first quarter 2017 MD&A for a reconciliation of adjusted net income/earnings and adjusted EBITDA to reported net income. 6. The Company amended its $75 million line of credit on March 30, 2017 and has drawn down $60.0 million as of March 31, As at March 31, 2017, $75.0 million convertible, unsecured, subordinated debentures; and $60.0 million drawn down from line of credit. Excludes capital leases. 8. Fully diluted shares include 7.8 million options outstanding at March 31, 2017 with an average exercise price of C$3.16 and 11.0 million warrants. 33

34 Notes 34

35 Notes 35

36 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 Director, Investor Relations T (416) info@primeromining.com