PDAC Convention Metro Toronto Convention Centre, Toronto, Canada. March 6-9, 2016

Transcription

1 PDAC Convention 2016 Metro Toronto Convention Centre, Toronto, Canada March 6-9, 2016

2 Cautionary Statement This presentation may contain forward-looking statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management s expectations or beliefs regarding such future events and anticipated performance. In certain cases, forward-looking statements can be identified by the use of words such as plans, expects, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or believes, or variations of such words and phrases or statements that certain actions, events or results may, could, would, might, or will be taken, occur or be achieved, or the negative of these words or comparable terminology. Forward-looking information includes statements respecting currently ongoing matters which will continue and statements in the present or past tense which are not historical facts. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Such factors include various risks related to the Company s operations, including, without limitation, fluctuations in spot and forward markets for gold, silver and other metals, fluctuations in currency markets, changes in national and local governments in Mexico and the speculative nature of mineral exploration and development, risks associated with obtaining necessary exploitation and environmental licenses and permits, and the presence of laws that may impose restrictions on mining, and risks associated with the Company s ability to defend the validity of the APA. A complete list of risk factors are described in the Company s annual information form and will be detailed from time to time in the Company s continuous disclosure, all of which are, or will be available, for review on SEDAR at This presentation uses the terms measured resources, indicated resources and inferred resources. The Company advises readers that although these terms are recognized and required by Canadian regulations (under National Instrument Standards of Disclosure for Mineral Projects ( NI ), the United States Securities and Exchange Commission does not recognize them. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted in to reserves. In addition, inferred resources have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies, except for a Preliminary Assessment as defined under NI Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward-looking statements, there may be other factors that cause its performance not to be as anticipated. The Company neither intends nor assumes any obligation to update these forward-looking statements or information to reflect changes in assumptions or circumstances other than required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those currently anticipated. Accordingly, readers should not place undue reliance on forward-looking statements. Unless otherwise indicated, all dollar values herein are in US$. 2

3 Investment Highlights EMERGING MID-TIER GOLD PRODUCER ESTABLISHED MINING JURISDICTIONS High-grade gold producer, growing production from mines in Mexico and Canada. STRONG FINANCIAL POSITION With cash, available credit, and cash flow from operations, Primero is positioned to deliver on its growth plans. LOW COST STRUCTURE Low-cost assets and disciplined cost control to ensure profitability at any gold price. PROVEN TRACK RECORD Proven ability to execute, with over 200 years of mining industry experience. 3

4 Established Mining Jurisdictions MEXICO & CANADA SAN DIMAS MINE Durango-Sinaloa Border LECHUGUILLA & VENTANAS Durango CERRO DEL GALLO Guanajuato BLACK FOX MINE Timmins, Ontario GREY FOX Timmins, Ontario Producing Mine Development Project Exploration Property CORPORATE OFFICE Toronto, Ontario 70% MEXICO 2016E PRODUCTION BY REGION 30% CANADA 4

5 Safety of our People is our First Priority CORPORATE RESPONSIBILITY HEALTH AND SAFETY Continue with a transformational shift in attitude towards a safety culture committed to a workplace free of accidents. Essential we see industry leading safety performance. Black Fox achieved 100% Green Day success in August ENVIRONMENTAL San Dimas certified Clean Industry by PROFEPA (Mexican EPA). San Dimas generates the majority of its power via a sustainable hydroelectric power facility. San Dimas operates a state-ofthe-art dry stack tailings facility. COMMUNITY Primero built 3 recreational park facilities in the town of Tayoltita in Tayoltita hospital upgrade completed February Primero, Wahgoshig First Nation and Northern College launched Underground Hard Rock Miner Core Certificate Program. 5

6 Strong Financial Position FINANCIAL POSITION TOTAL LIQUIDITY CREDIT 1 $25M $71M TOTAL LIQUIDITY CASH $46M BALANCE SHEET (As at Dec. 31, 2016 pro forma conv. debt repaid) ($M) Cash $46 Line of Credit 1 $25 Total Liquidity $71 Convertible Debenture (5.75%, due Feb. 2020, US$6.55 conversion) Line of Credit Draw Down 1 (Due May 2017) $75 $50 Total Debt 2 $125 & FREE CASH FLOW GENERATION 2016E AISC 4 $850-$900/oz at 2016 budget prices of $1,050/oz Au, $14/oz Ag. CAPITAL STRUCTURE (M) Common Shares O/S 164 Fully Diluted Shares O/S Market Capitalization (at March 3, 2016) C$375 6

7 Low Cost Structure 2016 GUIDANCE DECLINING ALL-IN SUSTAINING COSTS ($/oz Au) 4 LOW ALL-IN SUSTAINING COST VS. PEERS ($/oz Au, based on mid-point of 2016 guidance) $687 $637 $972 $1,222 Richmont Alamos Kirkland Lake $975 $975 $ E 6 AISC $595 Total Cash Cost $875 Lake Shore B2Gold Primero NewGold 6 $850 $875 $910 $950 Source: Company disclosure GUIDANCE SAN DIMAS BLACK FOX TOTAL 2016 Gold equivalent production 7 (koz AuEq) Gold production 7 (koz Au) Silver production 7 (Moz Ag) Total cash costs 4 ($/oz AuEq) $525 - $575 $680 - $730 $570 - $620 All-in sustaining costs 4 ($/oz Au) $660 - $710 $940 - $990 $850 - $900 7

8 Disciplined Capital Allocation 2016 GUIDANCE FOCUSED CAPITAL EXPENDITURES Focused on core capital expenditures related to producing mining operations. ADD NEAR-TERM PRODUCTION OUNCES Prioritized exploration targets in areas near existing infrastructure. HISTORY OF EFFECTIVE CAPITAL ALLOCATION Doubled annual production from 2011 with capital spending declining y-o-y CAPITAL EXPENDITURE GUIDANCE ($M) CAPEX & EXPLORATION ($M) San Dimas Black Fox Development $25 $ $113 Sustaining $34 $11 $ $93 Projects $49 $12 $ $82 Exploration $62 $9 $9 Total $82 8

9 Proven Track Record Proven History of Growth STRONG PRODUCTION GROWTH (AuEq koz) 7 INCREASED CASH FLOW FROM OPERATIONS ($M, before working capital changes) GROWTH TREND EXPECTED TO CONTINUE ($M, consensus cash flow from operations) $72 $ E 2017E $93 $ E 2017E 6 San Dimas Black Fox 2015 $ E Source: Thomson One $126 9

10 SAN DIMAS LOCATION Sinaloa-Durango, Mexico OWNERSHIP 100% (silver stream 1 ) METALS Gold & Silver MINING Underground CAPACITY 2,500 TPD (nameplate) PRODUCTION 6, koz AuEq AISC 4,5 $660 - $710/oz Au

11 Strong Performance by Platform Asset SAN DIMAS PROVEN PRODUCTION GROWTH 5th consecutive year of increased production. New concessions offer significant future growth opportunity. Increased productivity from 1.98 t/man/shift in 2013 to 2.36 in INDUSTRY-LOW COST PROFILE 18% reduction in AISC 4 achieved in 2015 vs Further cost reductions expected in DISCIPLINED CAPITAL ALLOCATION Capital of $56.4M focused on expansion in 2016E. Expansion to 3,000 TPD completed in Q SAN DIMAS PRODUCTION & AISC (koz, $/oz Au) 4, $ $ $ E 6 $

12 Continuous Improvements Beyond Mill Expansion SAN DIMAS 3,000 TPD EXPANSION REMAINS ON-TRACK Secondary crusher to be completed before San Dimas rainy season. New filter plant will complete the expansion in Q COMMERCIAL HAULAGE THROUGH LOOP Enables one-way traffic flow and reduces haulage by 3 km. Will further reduce costs and improve productivity. HIGH PERFORMANCE LONG-HOLE CREWS All long-hole mine crews operating on new 2x12 hour shifts. Long-hole contribution to increase to 40% in

13 World Class High-Grade Vein System SAN DIMAS WORLD CLASS HIGH-GRADE VEIN SYSTEM Average distance between productive veins is 530 m over 11 km. Average yield of 265 oz/m interval between productive veins. PRIMERO HAS FOUND 9 NEW VEINS IN 5 YEARS Increased Gold Mineral Reserves by 62% from Increased Gold Mineral Reserve grade by 27% from > Strategic approach to exploration has added significant value. Under-explored south of Piaxtla River and below volcanic capping. EXTENDING SOUTH TOWARD LECHUGUILLA New Lechuguilla concession added in Outside of the silver purchase agreement. Exploration tunneling expected to reach Lechuguilla during

14 Extending Outside Silver Purchase Agreement SAN DIMAS JESSICA VEIN: A GAME CHANGER Discovered in 2014, currently being mined. Proved that veins exist under the upper volcanic capping. SAN DIMAS 10 km N Located on the original San Dimas concessions, within the Silver Purchase Agreement. CANDELERO TAYOLTITA CEBOLLAS LEGEND Existing Tunnel 2016 Planned Tunnel GEOLOGICAL WINDOWS CONNECT THE DOTS Windows from erosion through capping where veins are evident. > As at San Dimas & Ventanas. Lechuguilla includes an un-explored window. Upper Volcanic Series Lower Volcanic Series Camichin Intrusive Piaxtla Intrusive LECHUGUILLA VENTANAS EXTENSION 2017 Planned Tunnel Veins Faults Rivers and Streams San Dimas Concession New Concessions GROWING VENTANAS INTO THE NEXT SAN DIMAS MINE 2016: $4.0M for target identification and 24,000 metres of drilling. VENTANAS Grow resource to support 1,000 tpd mining operation. 14

15 BLACK FOX LOCATION OWNERSHIP METALS MINING CAPACITY PRODUCTION6,7 AISC4,5 Timmins, Ontario 100% (8% gold stream1) Gold Underground & Stockpile 2,500 TPD koz AuEq $940 - $990/oz Au

16 Costs Controlled & Reducing Further BLACK FOX AISC IMPROVEMENT SINCE ACQUISITION ($/oz) E 6 $965 $1,163 $1,428 CAPITAL SPENDING REDUCED Total capex reduced by 45% in 2016 vs capex focus on development to the Deep Central Zone. GREY FOX ON HOLD BUT NOT FORGOTTEN Project temporarily delayed, at 2016 budget gold price of $1,050/oz, IRR does not justify required capex. Expenditures minimized in Project shows improved returns at +$1,200/oz gold. 16

17 Froome Zone Highlights Significant Exploration Upside BLACK FOX 15PR-G011 15PR-G031 15PR-G016 HIGHLY PROSPECTIVE FROOME ZONE Recent highlights: > 5.0 g/t Au over 42.9 m TW (15PR-G011). > 4.6 g/t Au over 35.3 m TW (15PR- G031). > 6.1 g/t Au over 44.1 m, 7.2 g/t Au over 14.7 m, and 7.7 g/t Au over m (15PR-G016 down plunge). Open to the east, west and at depth. RAMP TO DEEP CENTRAL Ramp currently at 640 m level. Initial mining in H1 2016, with contribution increasing. Mining rate of 850 TPD is expected in Q Exploration focused west of Deep Central Zone and at depth. LEGEND Mineralized Zone Ramps Planned Ramp 17

18 Other Froome-Like Targets Identified BLACK FOX NEW FROOME-LIKE MINERALIZATION IDENTIFIED Step-out hole intersected a new area of mineralization. 750 metres from Froome and closer to the Black Fox mine. > 2.5 g/t gold over 7.6 metres true width (15PR-G009). LOW MAGNETIC TREND EXTENDS OVER 3 KM Froome hosted within folds in the axis of the conglomerates sedimentary unit featuring a low magnetic response. LARGE-SCALE DRILL PROGRAM PLANNED 18,750 metres planned in Targeting extensions of Froome and other Froome-like targets. 18

19 Valuation Disconnect Due Tax Over-hang PRIMERO P/NAV P/2016E CFPS P/2017E CFPS Torex 2.05x Alamos 10.01x Lake Shore 7.68x Richmont 1.99x Richmont 8.87x Alamos 7.05x Lake Shore 1.59x Lake Shore 8.71x New Gold 6.89x Kirkland Lake 1.37x New Gold 8.09x Richmont 6.66x New Gold 0.79x Kirkland Lake 6.16x Kirkland Lake 5.88x B2Gold 0.67x B2Gold 5.11x B2Gold 4.46x Alamos 0.64x Argonaut 3.71x Argonaut 3.05x Primero 0.38x Primero 2.88x Primero 2.19x Argonaut 0.25x Average: 1.1x Average: 6.7x Average: 5.5x Based on Analyst Consensus. Source: Thomson One. 19

20 Expected Near-Term Catalysts and News Flow PRIMERO January 2016 February 2016 Q Q Q Q PRODUCTION & GUIDANCE 2015 production within guidance and below costs. 10% AISC cost reduction in FINANCIAL RESULTS Reported record revenue generation with increased cash flow. EXPLORATION UPDATE Upside potential achieved by investing in our key assets. RESOURCE UPDATE With estimates for Jessica Vein, Ventanas, and Froome Zone SAN DIMAS EXPANSION Mill expansion complete. Steadystate 3,000 tpd throughput expected. BLACK FOX DEEP CENTRAL Commercial production rates from Deep Central Zone. Drilling to west and below 800 metres. 20

21 Investment Highlights EMERGING MID-TIER GOLD PRODUCER ESTABLISHED MINING JURISDICTIONS STRONG FINANCIAL POSITION LOW COST STRUCTURE PROVEN TRACK RECORD 21

22 APPENDICES

23 Legal Claim Not an Impact on Operations or Cash Flow MEXICAN TAX CLAIM SAN DIMAS MINE CONTINUES TO OPERATE UNINTERRUPTED The legal claim does not identify any different basis for paying taxes. Primero s taxes have not been reassessed. Primero believes it has filed its tax returns, and paid all applicable taxes, in compliance with Mexican tax laws including the OECD principles for transfer pricing. WHAT IS PRIMERO DOING? The Company is vigorously defending the validity of its APA. Primero has filed a procedural challenge to the admission of the claim, similar to a motion for dismissal. Primero s legal advisors are preparing the substantive defense, expected to be filed in mid-april. Primero intends to explore opportunities to establish stability for its tax filings in the future. Primero continues to develop longer term solutions to reduce its silver risk, which includes seeking to mine areas outside of the San Dimas Silver Purchase Agreement. 23

24 Vein Location Map SAN DIMAS West Block CONVENCIÓN JESSICA PEREZ REGINA SAN JOSE ALEXA Sinaloa Graben Block Central Block Tayoltita Block ROBERTA ROBERTITA/ SAN ENRIQUE MARINA 1, 2 Arana Hanging Wall Block LEGEND Existing Tunnel 2016 Planned Tunnel 2017 Planned Tunnel Veins Faults Rivers and Streams San Dimas Concession New Concessions Upper Volcanic Series VICTORIA ELIA MARSHALL 2.5 km STA. GERTRUDIS CAMICHIN TAYOLTITA VERDOSA 24

25 Lower Capital Expenditures & Investment in Exploration 2016 GUIDANCE CAPITAL EXPENDITURES (estimated 2016 costs) ($M) CAPITALIZED EXPLORATION EXPENDITURES (estimated 2016 costs) ($M) San Dimas Underground Development $24.5 San Dimas Sustaining Capital $10.8 San Dimas Projects $12.0 San Dimas Sub Total $47.3 Black Fox Underground Development $9.3 Black Fox Sustaining Capital $4.2 Black Fox Projects $1.2 Black Fox Complex Sub Total $14.7 Cerro del Gallo Development $1.9 Total $ Capital Expenditures $68.0 San Dimas Diamond Drilling $4.3 San Dimas Drifting $4.4 San Dimas Regional Diamond Drilling $0.4 San Dimas Sub Total $9.1 Black Fox Diamond Drilling $4.4 Regional Exploration $4.5 Black Fox Complex Sub Total $8.9 Cerro del Gallo Geology Mapping $0.4 Total $18.4* 2015 Capitalized Exploration Expenditures $25.3 *Excludes $4.0M of expensed exploration expenditures at the Ventanas project. Note: Figures may not add due to rounding. 25

26 2015 Operating Cost Breakdown PRIMERO SAN DIMAS CONSOLIDATED 11% 5% 1% 2% 7% 36% 4% 4% 4% 7% 38% 17% 6% 21% BLACK FOX 15% 2% 7% 7% 2% 22% 5% 41% 13% Labour Materials & Consumables Contractors Maintenance Fuel & Lubricants Freight, Refining, & Off-Site 23% Power Other 26

27 Stock Performance & Significant Events PRIMERO 80% 60% 40% 20% 0% -20% -40% -60% Primero IPO, Begins Trading on the TSX, and Finalizes San Dimas Acquisition P-T Volume Primero Mining Corp. S&P/TSX Global Gold Index Primero Begins Trading on the NYSE Primero Announces San Dimas Expansion Plan Phase 1 Primero Announces APA Ruling Primero Announces Brigus Gold Acquisition Primero Announces Acquisition of Cerro Del Gallo Primero Added to S&P/TSX Primero Receives Legal Claim Filed by Mexican Tax Authorities Primero Closes US$75M Offering of Convertible Debentures Volume (Millions) -80% 8/13/2010 2/13/2011 8/13/2011 2/13/2012 8/13/2012 2/13/2013 8/13/2013 2/13/2014 8/13/2014 2/13/2015 8/13/2015 2/13/

28 Summary of Debt & Tradable Securities PRIMERO Face Value REVOLVING LINE OF CREDIT FACILITY Drawn at Feb 10, 2016: $50 million CONVERTIBLE DEBENTURES TSX:P.DB.V $75.0 million Maturity / Expiry May 23, 2017 February 28, 2020 Interest Rate Floating Rate (see below) 5.75% Payable Monthly Semi-Annually Conversion / Strike n/a US$6.55 Additional Notes Expected floating interest rate of approximately 5.5% per annum in Q 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 28

29 Silver Purchase Agreement SAN DIMAS Primero sells 50% of annual silver production above 6.0 million ounces at spot Remainder sold at ~$4.26 per ounce under silver purchase agreement. Threshold commences August 6 to following August 5. Expansion anticipated to generate meaningful silver spot sales post expansion to 3,000 TPD. Does NOT include the Ventanas property or newly acquired concessions. Gold Purchase Agreement BLACK FOX Primero sells 8% of annual gold production at Black Fox at ~$518 per ounce Primero streams 6.3% from Pike River property. Gold is sold at $500 per ounce subject to inflationary adjustment beginning in 2013, 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 29

30 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 $1,100/oz gold. (1) Technical Report First Stage Heap Leach Feasibility Study, Cerro del Gallo Gold Silver Project, Guanajuato, Mexico June Effective date May 11 th 2012 (2) 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 30

31 Mineral Reserves and Mineral Resources (As at December 31, 2014) 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 ,510 Measured & Indicated ,704 Inferred ,310 Notes to Mineral Reserve Statement: 1. Assumed gold price of US$1,200 per troy ounce and silver price of US$18 per troy ounce. 2. San Dimas cut-off grade of 2.94 g/t AuEq based on total operating cost of US$110.06/t. Metal supply contract obligations have been referenced in determining overall vein reserve estimate viability. 3. Assumed processing recovery factors at San Dimas for gold of 97% and silver of 94%. 4. Exchange rate assumed is 13 pesos/us$ The San Dimas Mineral Reserve estimate was prepared under the supervision of Mr. Clifford Lafleur, P.Eng., Director of Technical Services, Primero and a QP for the purposes of National Instrument ( NI ). Notes to Mineral Resource Statement: 1. Mineral Resources are total and include those resources converted to Mineral Reserves 2. Assumed gold price of US$1,200 per troy ounce and silver price of US$18 per troy ounce. 3. San Dimas cut-off grade of 2.0 g/t AuEq was applied. 4. At San Dimas a constant bulk density of 2.6 tonnes/m3 has been used. 5. The Mineral Resource estimates for San Dimas was prepared under the supervision of Mr. Harold Brisson PhD, Eng., Resource Manager of Primero and a QP for the purposes of NI

32 Mineral Reserves and Mineral Resources (As at December 31, 2014) BLACK FOX Mineral Reserves Mineral Resources CLASSIFICATION TONNAGE (Mt) GOLD GRADE (g/t) CONTAINED GOLD (koz) Proven & Probable Measured & Indicated Inferred Proven & Probable Reserves Open-Pit Underground Stockpile Notes to Black Fox Mineral Reserve estimate: 1. Assumed gold price of US$1,200 per troy ounce. 2. Black Fox open-pit cut-off grade of 0.9 g/t and underground cut-off grade of 3.7 g/t. 3. Assumed processing recovery factors at Black Fox for gold of 94%. 4. Exchange rate assumed is CDN$1.10/US$ The Black Fox Mineral Reserve estimate was prepared under the supervision of Mr. Clifford Lafleur, P.Eng., Director of Technical Services, Primero and Mr. Karl Dessureault, P.Eng., Chief Mine Engineer Black Fox, Primero, and both a QP for the purposes of National Instrument ( NI ). 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 Black Fox was prepared under the supervision of Mr. Harold Brisson PhD, Eng., Resource Manager of Primero and a QP for the purposes of NI

33 Mineral Resources (As at December 31, 2014) 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 ). 33

34 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. 34

35 Executive Management Ernest Mast PRESIDENT & CHIEF EXECUTIVE OFFICER Appointed President & CEO in Feb after planned succession. Formerly Primero s President & COO. Former President & CEO Minera Panama (Inmet), VP Ops. New Gold, President & GM Falcondo, Xstrata Nickel. 25 Years of experience. Joseph Conway EXECUTIVE VICE CHAIRMAN Moved to Executive Vice Chairman position in Feb after planned succession. Previously Primero s President and CEO. Former CEO, President & Director of IAMGOLD and Repadre Capital. 30 Years of experience. Guillermo Adrian VP, OPERATIONS Joined Primero in 2013 as the General Manager of the San Dimas mine. Formerly the VP, Operations of Orinokia Mining Corp, the VP, Operations of Rusoro Mining, and GM of the Las Cristinas project in Venezuela. 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. Wendy Kaufman CHIEF FINANCIAL OFFICER Appointed CFO in September Former VP, Finance and Treasurer of Inmet Mining Corporation. 20 Years of experience. 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. 13 Years of experience in Latin America. Maria-Luisa Sinclair VP, HUMAN RESOURCES Held key HR positions with Placer Dome, Pan American Silver, Baja Mining, and Skye Resources. 25 Years of international HR experience in the mining sector with expertise 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. 35

36 Board of Directors Wade Nesmith CHAIRMAN Founder of Primero. Founding and current director of Silver Wheaton. Joseph Conway EXECUTIVE VICE CHAIRMAN 1 Moved to Executive Vice Chairman position in Feb after planned succession. Previously Primero s President and CEO. Former CEO, President & Director of IAMGOLD and Repadre Capital. 30 Years of experience. Ernest Mast PRESIDENT & CHIEF EXECUTIVE OFFICER Appointed President & CEO in Feb after planned succession. Formerly Primero s President & COO. Former President & CEO Minera Panama (Inmet), VP Ops. New Gold, President & GM Falcondo, Xstrata Nickel. 25 Years of experience. 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. Eduardo Luna DIRECTOR 1 Former EVP and President, Mexico. Former Chairman and CEO of Silver Wheaton, Executive VP of Goldcorp and Luismin S.A. de C.V. (San Dimas) and President of Mexican Mining Chamber and the Silver Institute. Brad Marchant DIRECTOR 1,4 Co-founder of Triton Mining Corporation. Founder of BioteQ Environmental Technologies Inc. 36 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

37 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. 37

38 Endnotes 1. The Company closed a $75 million line of credit on May 23, 2014 and has drawn down nil as of December 31, The Company announced on February 10, 2016 that it had drawn down $50.0 million on its line of credit in order to repay in cash the outstanding $48.1 million of its 6.5% convertible debentures plus $1.6 million of associated interest on their maturity date of March 31, As at December 31, 2015, $48.1 million senior unsecured convertible debenture (acquired from Brigus, with a 6.5% coupon an effective conversion price of $14.00 and an expiry of March 31, 2016); $75.0 million convertible, unsecured, subordinated debentures; and nil draw down from line of credit. Excludes capital leases. The Company announced on February 10, 2016 that it had drawn down $50.0 million on its line of credit in order to repay in cash the outstanding $48.1 million of its 6.5% convertible debentures plus $1.6 million of associated interest on their maturity date of March 31, Fully diluted shares include 4.2 million options with an average exercise price of Cdn$ Cash costs and All-in Sustaining Costs are non-gaap measures. Refer to the Company s fourth quarter and full-year 2015 MD&A for a reconciliation to operating expenses. 5. Material assumptions used to forecast total cash costs for 2016 include: an average gold price of $1,050 per ounce; an average silver price of $5.16 per ounce (calculated using the silver purchase agreement contract price of $4.26 per ounce and assuming excess silver beyond contract requirements is sold at an average silver price of $14 per ounce); and foreign exchange rates of 1.35 Canadian dollars and 16 Mexican pesos to the US dollar. 6. Based on 2016 Guidance, refer to the Company s fourth quarter and full-year 2015 MD&A. 7. 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. The silver purchase agreement dictates that until August 6, 2014 Primero will deliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of silver produced at San Dimas and 50% of any excess at $4.16 per ounce (increasing by 1% per year). Thereafter Primero will deliver 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 $4.20 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. 38

39 Notes 39

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