Q MANAGEMENT S DISCUSSION AND ANALYSIS

Transcription

1 Q MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE QUARTER ENDED JUNE 30, 2018

2 MANAGEMENT S DISCUSSION AND ANALYSIS This Management s Discussion and Analysis ( MD&A ) of Detour Gold Corporation ( Detour Gold, we, our or the Company ) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of the Company. This MD&A should be read in conjunction with Detour Gold s unaudited condensed consolidated interim financial statements and related notes for the three and six months ended June 30, 2018 and 2017 which are prepared in accordance with International Accounting Standard Interim Financial Reporting ( IAS 34 ) as issued by the International Accounting Standards Board ( IASB ). This MD&A contains certain forward-looking statements. Refer to the cautionary language at the end of this MD&A. All dollar figures stated herein are expressed in United States dollars, except for: (i) tabular amounts which are in millions of United States dollars; (ii) per share or per ounce amounts; or (iii) unless otherwise specified. This MD&A is dated July 25, The Company s public filings, can be viewed on the SEDAR website ( and on the Company s website ( Certain non-ifrs financial performance measures are included in this MD&A. Detour Gold believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. The non-ifrs financial performance measures included in this document are: total cash costs, all-in sustaining costs ( AISC ), average realized price, average realized margin, adjusted net earnings, and adjusted basic net earnings per share. Refer to the Non-IFRS Financial Performance Measures section for a reconciliation of non-ifrs measures. In addition, included in this MD&A is the measure Earnings from mine operations. Refer to section Additional IFRS Financial Performance Measures for additional information on this measure. The following abbreviations are used throughout this document: USD or U.S. dollar (United States dollar), Cdn (Canadian dollar), AISC (All-in sustaining costs), Au (gold), oz (ounces), g/t (grams per tonne), Mt (million tonnes), km (kilometres), m (metres), TMA (tailings management area), tpd (tonnes per day), ROM (run-of-mine), and LOM (life of mine). 1

3 TABLE OF CONTENTS BUSINESS OVERVIEW... 3 SECOND QUARTER 2018 HIGHLIGHTS... 3 OUTLOOK... 4 CORPORATE DEVELOPMENTS... 4 AMENDED MINERAL RESERVE AND RESOURCES STATEMENT... 8 EXPLORATION ACTIVITIES... 9 PERFORMANCE DRIVERS OPERATING RESULTS SECOND QUARTER 2018 FINANCIAL RESULTS FIRST HALF 2018 FINANCIAL RESULTS FINANCIAL CONDITION REVIEW LIQUIDITY AND CAPITAL RESOURCES COMMITMENTS OFF-BALANCE SHEET ARRANGEMENTS SUMMARY OF QUARTERLY FINANCIAL RESULTS NON-IFRS FINANCIAL PERFORMANCE MEASURES ADDITIONAL IFRS FINANCIAL PERFORMANCE MEASURES CRITICAL JUDGMENTS AND ACCOUNTING ESTIMATES SIGNIFICANT ACCOUNTING POLICIES INTERNAL CONTROLS OVER FINANCIAL REPORTING OUTSTANDING SHARES RISKS AND UNCERTAINTIES CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION INFORMATION CONCERNING ESTIMATES OF MINERAL RESERVES AND RESOURCES TECHNICAL INFORMATION CORPORATE INFORMATION

4 BUSINESS OVERVIEW Detour Gold was incorporated under the laws of Ontario in 2006 and was listed on the Toronto Stock Exchange (TSX:DGC) in January Detour Gold is a Canadian-based intermediate gold mining company with a 100% interest in the Detour Lake mine, a long-life, large-scale open pit operation located in northeastern Ontario, approximately 300 km northeast of Timmins and 185 km by road northeast of Cochrane. The Company continues to focus on improving the Detour Lake mine and on organic growth by exploring and developing its large Detour Lake property, which consists of a contiguous block of mining claims and leases totaling approximately 644 km 2 in the District of Cochrane. Our business plan is to be a leading intermediate gold producer. The Company s near-term strategy is to continue with operational improvements at the Detour Lake mining operation while applying cost and capital discipline. With the mine now generating positive cash flow from operations, the Company is in a position to focus on strengthening its balance sheet by way of debt reduction and pursuing organic growth opportunities. SECOND QUARTER 2018 HIGHLIGHTS Gold production of 154,385 ounces compared to 150,138 ounces in Q AISC (1) of $1,104 per ounce sold and total cash costs (1) of $723 per ounce sold compared to $1,123 and $706 per ounce sold, respectively, in Q Revenues of $191.8 million on gold sales of 146,856 ounces at an average realized price (1) of $1,305 per ounce compared to $180.1 million on gold sales of 142,970 ounces at an average realized price of $1,257 per ounce in Q Earnings from mine operations of $46.5 million compared to $42.6 million in Q Net earnings of $8.8 million ($0.05 per basic share) compared to net earnings of $24.5 million ($0.14 per basic share) in Q Adjusted net earnings (1) of $21.3 million ($0.12 per basic share) compared to adjusted net earnings of $16.2 million ($0.09 per basic share) in Q Cash and cash equivalents of $150.3 million at June 30, 2018 (December 31, $134.1 million) Repaid $10.0 million on the revolving credit facility Released updated LOM plan on June 27, Refer to the non-ifrs Financial Performance Measures section for a reconciliation of this metric. 3

5 OUTLOOK 2018 Guidance Detour Gold s guidance for 2018 remains unchanged from its guidance of April 26, H Guidance Gold production (oz) 311, , ,000 Total cash costs ($/oz sold) $734 $700-$750 AISC ($/oz sold) $1,088 $1,200-$1,280 Projected capital expenditures for 2018 remain as previously disclosed at approximately $265 to $285 million. This includes added essential capital expenditures of $16 million and increased deferred stripping costs to $60 million from $21 million (as previously reported in the April 26, 2018 news release). CORPORATE DEVELOPMENTS 2018 LOM Plan As disclosed in the Company s news release dated June 27, 2018 ( Detour Gold Provides Updated Life of Mine Plan and Reaffirms Commitment to Optimizing Detour Lake Operations ), the Company reported the details of its updated 2018 LOM plan, which included the following key elements and results: Highlights of the 2018 LOM Plan Proven and probable reserves of 16.0 million ounces of gold contained in 517 Mt grading 0.97 g/t over a mine life of approximately 23 years (as at December 31, 2017) Average annual gold production of approximately 659,000 ounces over LOM at average total site costs (1) of $843 per ounce sold For the period , average annual gold production of approximately 608,000 ounces at average total site costs (1) of $983 per ounce sold Annual total material mined ramping up to 129 Mt by 2024 Annual plant throughput maintained at 23.0 Mt starting in 2021 Estimated LOM capital costs of Cdn$2.5 billion (excluding deferred stripping) Estimated LOM pre-tax cash flows of Cdn$8.4 billion at $1,300 per ounce and Cdn/US exchange rate of 1.25 After-tax NPV5% of Cdn$3.45 billion as at January 1, Refer to the non-ifrs Financial Performance Measures section for additional details 4

6 Key inputs in 2018 LOM Plan 2018 LOM Plan (a) ( ) Economic Assumptions Gold price (US$/oz) $1,300 Exchange rate (US$/Cdn$) 1.25 Electricity ($/kwh) (b) $0.035/$0.080 Diesel fuel ($/L) $0.80 Income/mining tax rate (%) 25/10 Net smelter royalty (%) 2.0 Mine Parameters Total mined (Mt) 2,141 Ore mined (Mt) 488 Strip ratio (waste:ore) 3.4 Ore milled (Mt) (c) 517 Average gold grade (g/t) 0.97 Estimated gold recovery (%) 92.8 Total recovered gold (M oz) 14.9 Mine life (years) 22.6 Average annual gold production (oz) 659,000 (a) Refer to section Amended Mineral Reserve and Resource Statement for details. (b) Electricity costs at Cdn$0.035/kWh to end of 2024 (except Cdn$0.03/kWh for 2018) and Cdn$0.08/kWh for (c) Includes LG Fines and ROM stockpiles at year-end 2017 processed over LOM. Operating Plan The 2018 LOM Plan successfully reduces the large annual variation in projected gold production under the prior plan. Specifically, the gold production profile is more consistent over the next 12 years at approximately 614,000 ounces per year and subsequently increases to approximately 725,000 ounces per year for the next 10 years. The mine life of 22.6 years is based on the amended mineral reserves statement, refer to section Amended Mineral Reserve and Resource Statement for details. The mine production plan assumes the continued development of the Detour Lake pit, including successful attainment of required progressive permits, with the start-up of the West Detour pit in 2025 and the North pit in The majority of ore tonnes (88%) are sourced from the Detour Lake pit with the balance coming from the West Detour and North pits. Plant throughput capacity is maximized with the processing of LG Fines over the LOM (average grade of 0.59 g/t Au and representing less than 5% of total LOM mill feed). The mining rate for the Detour Lake pit gradually ramps up from 107 Mt in 2018 to 129 Mt in During this period, the waste to ore strip ratio will vary annually from 3.5:1 to 6.6:1. The ultra-class haulage truck fleet is projected to increase from the current 34 to 39 CAT 795 trucks in 2022 while no increase is expected for the current two electric rope shovels (CAT 7495) and five hydraulic shovels (CAT 6060). The mining phases have been subdivided into more contained geographic areas compared to the prior plan. The mining benches remain at approximately 120 metres in width and 12 metres in height with two access ramps for waste extraction servicing the upper portion of the pit. There is no change to the wall slope geometry and dilution assumptions. As reported on April 26, 2018, the Company has already started on the mine sequencing changes with a focus on the south wall development of the Detour Lake pit. Production from the West Detour pit is scheduled from 2025 to 2036, starting at 8 Mt per year to a maximum mining rate of 31 Mt per year in It assumes a combination of small equipment (CAT 6030 excavators and CAT 777 haul trucks) and shared usage of the Detour Lake pit mining fleet. The Company plans to use the West Detour pit, once depleted, for tailings and/or waste rock deposition. Production from the North pit is scheduled from 2026 to 2030, using a contractor at a maximum mining rate of approximately 6 Mt per year. 5

7 The 2018 LOM Plan assumes a gradual ramp-up of the processing plant capacity, from 21.0 Mt in 2018 to 23.0 Mt starting in Overall gold recovery is expected to average 92.8% over the LOM plan. Economic Analysis The economic cash flow model, based on a long-term gold price of $1,300/oz and a Cdn/US exchange rate of 1.25, generates an after-tax net present value (NPV) at a 5% discount rate as at January 1, 2018 of Cdn$3.45 billion. The economic analysis summary is presented below: Description Units LOM Total LOM Average Revenue Cdn$ M ,720 1,050 Operating Costs Cdn$ M , Total Capital Costs(a) Cdn$ M , Pre-tax Cash Flows(b) Cdn$ M , NPV5% (pre-tax) Cdn$ M ,233 - Tax(c) Cdn$ M , NPV5% (after-tax) Cdn$ M ,448 - (a) (b) (c) Includes deferred stripping and closure costs. Includes adjustments for working capital movements. Calculated on site cash flows only, without benefit for tax shield from corporate, exploration and interest costs. Permitting The 2018 LOM Plan adds permitting flexibility by providing the Company with additional time to progress the permits required for the West Detour project, specifically revolving around the North pit (2026) and impacts to Walter Lake in the western end of the Detour Lake pit (2028). The permitting time for the West Detour pit remains the same as the previous LOM plan at The Company has obtained support from three of its four Aboriginal communities for the West Detour project. The Company continues to face challenges with the Moose Cree First Nation leadership but will continue its efforts to engage. The Company intends to submit the Final Draft Environmental Study Report for the West Detour project with the Ministry of Natural Resources & Forestry ("MNRF") by year-end. Once approval is received from MNRF, the Company will proceed with the required permit applications associated with the West Detour project. Senior Management Changes Paul Martin, President and Chief Executive Officer, retired from the Company effective June 1, Michael Kenyon, Chairman of the Board, assumed the role of Interim Chief Executive officer and Alex Morrison, Director, assumed the role of Board Chairman effective June 1, Andre Falzon assumed the role of Audit Committee Chair effective June 1, 2018 from Alex Morrison, who remains a member of the Audit Committee. Update on Operational Improvement Strategy The Company has identified several key strategic operational improvement focus areas and has developed associated tactical plans supported by recent operational audits. Operating and capital plans are progressing to address the findings of these audits complemented by internal robust assessments by the Chief Operating Officer over the past six months. Further upside opportunities not reflected in the 2018 LOM Plan will be explored in due course, including mobile equipment automation. 6

8 Some examples of the progress to date include: Appointed transitional Mine General Manager; permanent selection expected in Q Injection of additional experienced senior site leaders anticipated over the coming months Conducted in-depth audit of process plant operations Prioritized required mill capital projects with design engineering and execution progressing Completed disciplined audit of mobile maintenance practices Commenced mine operational audit, including organizational structure evaluation Reviewed additional international and local industry benchmarking to confirm focus areas Implementing changes in operating procedures following completion of previous third party management operating systems review Commenced mine to mill interface mapping and business optimization Initiated contractor review 7

9 AMENDED MINERAL RESERVE AND RESOURCES STATEMENT Mineral reserves at December 31, 2017 (reported in February 2018) were slightly adjusted based on final pit designs for the 2018 LOM Plan and resulted in the addition of approximately 230,000 ounces of gold. There was no change to the gold price assumption of $1,000 per ounce at a Cdn/US exchange rate of 1.10 for estimating mineral reserves. Based on the expected throughput rates projected in the 2018 LOM plan, the mineral reserve life of the Detour Lake mine is approximately 22.6 years. Tonnes Grade Gold Ounces Amended and effective at December 31, 2017 (millions) (g/t Au) ('000s oz) Mineral Reserves Detour Lake Pit Proven ,538 Probable ,233 West Detour Project ,771 West Detour Pit Proven Probable ,596 North Pit Probable ,843 Low Grade Fines Probable Total Proven and Probable Reserves ,044 Mineral Resources Detour Lake Pit Measured Indicated ,092 West Detour Project ,793 West Detour Pit Measured Indicated North Pit Indicated Total Measured and Indicated Resources ,671 Mineral Resources Detour Lake Pit Inferred West Detour Project West Detour Pit North Pit Inferred Inferred Total Inferred Resources ,124 Notes: 1. The Company s mineral reserve and mineral resource estimates as at December 31, 2017 are classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ( CIM ) CIM Definition Standards - For Mineral Resources and Mineral Reserves" adopted by the CIM Council (as amended, the CIM Definition Standards ) in accordance with the requirements of National Instrument Standards of Disclosure for Mineral Projects" ( NI ). Mineral reserve and mineral resource estimates reflect the Company's reasonable expectation that all necessary permits and approvals will be obtained and maintained. 2. Mineral reserves were estimated using a gold price of $1,000/oz at a US$/C$ exchange rate of 1.10, and mineral resources were estimated using a gold price of $1,200/oz at a US$/Cdn$ exchange rate of Mineral reserves and resources were based on a cut-off grade of 0.50 g/t Au. 4. LG Fines (sourced from material grading g/t Au) classified as Measured and Indicated were reported as Probable mineral reserves and included in the mine plan. 5. Further information, including key assumptions, parameters, and methods used to estimate mineral resources and mineral reserves are described in the Technical Report on the Detour Lake operation, dated March 22, Mineral resources are reported exclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resources are constrained within an economic pit shell. 7. Totals may not add due to rounding. 8

10 EXPLORATION ACTIVITIES Detour Gold has a 100% interest in the 644 km 2 Detour Lake property located on the northernmost Abitibi greenstone belt in northern Ontario. With the Detour Lake mine in operation since early 2013, the Company s exploration activities have focused on evaluating the exploration potential of its large Detour Lake property and developing a multi-year exploration plan with the main objective of finding high-grade satellite gold deposits within trucking distance of its large processing plant. The Company has also looked at grassroots opportunities in proximity to its main asset for future organic growth, which resulted in the staking in 2016 of the 532 km 2 Burntbush property located 70 km south of the Detour Lake mine Exploration Program Exploration activities continued in the second quarter of 2018 on the Detour Lake Property with 5,610 metres completed in 17 holes, for a total of 10,346 metres in 31 drill holes in the first half of The drilling focused on testing targets northeast and west of Zone 58N, within the West Detour project and east of the tailings facility. The drilling program is currently continuing east of the tailings facility with approximately 1,500 metres remaining. All assays have been received for the targets drilled in the area of Zone 58N during the first half of From the 18 holes completed totaling 5,621 metres, many drill holes encountered alteration and mineralization similar to Zone 58N, including visible gold. The best gold intercepts from this program (not part of Zone 58N mineral resource) include: 77.8 g/t over 1.5 metres (DLD ) 2.70 g/t over 10.0 metres (DLD ) 2.74 g/t over 8.6 metres and 2.31 g/t over 11.0 metres (DLD ) 2.08 g/t over 5.7 metres (DLD ) Two drill holes completed within the West Detour project (western limit of North pit and north of the West Detour pit) returned the following gold intersections: 1.98 g/t over 10 metres, 1.78 g/t over 14 metres, and 5.27 g/t over 14 metres (DBKA ) 1.23 g/t over 11 metres and 2.19 g/t over 11 metres (DBKA ) Approximately 5,500 metres of drilling is planned for the Lower Detour area (west and northwest of Zone 58N) in the second half of A geological mapping program and ground geophysical surveys are starting on the Burntbush property in the third quarter of The Company is planning a 2,000 metre diamond drilling program following the results of the ground geophysical surveys. Subsequent to the quarter end, the Company reported an initial independent mineral resource estimate for the Zone 58N gold deposit located six kilometres south of the Detour Lake mine. The mineral resource estimate is comprised of an Indicated resource of 2.87 million tonnes grading 5.80 g/t for 534,300 ounces of gold and an Inferred resource of 0.97 million tonnes grading 4.35 g/t for 136,100 ounces of gold. Mineral Resources Tonnes (millions) Grade (g/t Au) Contained Gold Ounces Zone 58N Indicated ,300 Inferred ,100 9

11 Notes: 1. Reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ( CIM ) standards for mineral resources and reserves, adopted by CIM Council, as amended. 2. The mineral resource estimate for Zone 58N was prepared under the supervision of Rejean Sirois, Eng., Vice President Geology and Resources for G Mining Services Inc., a Qualified Person as defined by Canadian Securities Administrators National Instrument Standards of Disclosure for Mineral Projects ( NI ). 3. All HQ and NQ core assays obtained by analytical methods described in the March 2017 Technical Report under Section Quality Assurance and quality control procedures included the systematic insertion of blanks, standards, and duplicates into the sample stream. 4. Mineral resources reported at a cut-off grade of 2.2 g/t Au, using a gold price of $1,300 per ounce and a US$/C$ exchange rate of 1.25 with an assumed mining dilution of 12%. 5. Mineralized domains were modeled using selections of mineralized intervals based on varying degrees of visual alteration (sulphide, sericite, and quartz veining) due to good correlation with the gold mineralization. Based on the nuggetty nature of the gold mineralization and limited strike length continuity, a grade-based approach to establish domains was not used. 6. Mineral resource encompasses 10 domains, each defined by its individual 3D wireframe with a minimum true thickness of 3.0 metres. Domains are subvertical, strike east-west, with the two largest domains plunging 85 degrees to the east. 7. High grade gold assays were capped at values ranging from 20 to 120 g/t Au depending on the domain. 8. Bulk density value of 2.7 t/m3. 9. Interpolation completed using 2 metre composites. The block grade estimate used 1-pass nearest neighbor (NN) and 4-pass Inverse Distance Cubed (ID3) interpolation method. 10. Block model uses block sizes of 5 x 3 x 5 metres. 11. Mineral resources are not mineral reserves as they do not have demonstrated economic viability. 12. Numbers may not total due to rounding. The resource estimate for Zone 58N incorporated the assay results from 332 diamond drill holes totaling 109,700 metres. Drill spacing is approximately 25 x 25 metres in the upper 500 metres of the deposit, with a sparser drill hole spacing of 40 x 40 metres below 500 metres. The mineral resource model only considered mineralized zones that are potentially minable by underground extraction and contained with the modelled wireframes. The block model was prepared and constrained using 3D wireframes of geological domains that are associated with gold mineralization. Grade estimation was interpolated into blocks using a combination of Inverse Distance Cubed (ID3) and Nearest Neighbor (NN). The mineral resource was reported using a gold cut-off grade of 2.2 g/t and a minimum true thickness of 3 metres. The gold mineralization within Zone 58N is hosted in a swarm of tonalitic dykes that intrude mafic volcanic rocks and are spatially controlled by the margin of a large intermediate intrusion. The east-west mineralized system extends along a strike length of 450 metres, from surface to a depth of 800 metres. It remains open for expansion at depth. Gold mineralization is found in quartz-tourmaline-carbonate veins containing less than 5% sulphides. Metallurgical testing performed on a total of 31 composites confirmed that Zone 58N mineralization is amendable for processing through the existing Detour Lake processing plant. All composites were tested for grinding, gravity separation and cyanide leaching of both gravity products (concentrate and tails). Based on these initial tests, gold recovery is estimated at 97.5% for the stated mineral resource grade. The Company is proceeding with a cost evaluation for an advanced underground exploration program. This program would include site access and surface infrastructure, and underground development (i.e. access to mineralized zones and platform for further exploration drilling). Subject to a positive evaluation, the Company would determine the appropriate timeline for the program. 10

12 PERFORMANCE DRIVERS The Company s key internal performance drivers are production volumes and costs which are disclosed in the sections Operating Results and Second Quarter 2018 and First Half of 2018 Financial Results. The key external performance drivers are the price of gold and foreign exchange rates. Gold price The price of gold is the most significant external financial factor affecting the Company s profitability and cash flow from operations. Therefore, the financial performance of the Company is expected to be closely linked to the price of gold. The price of gold is subject to volatile fluctuations over short periods of time and is affected by numerous industry and macroeconomic factors. During the second quarter of 2018, the gold price traded in a range of $1,250 to $1,351 per ounce (based on the London Bullion Market Association PM Auction). The average market price for the quarter was $1,306 per ounce, a 4% increase compared to the average market price of $1,257 per ounce for the second quarter of The gold price trended lower in the second quarter of 2018 from its closing price of $1,324 at March 31, 2018 as the U.S. Federal Reserve signaled the continuation of benchmark interest rate hikes in response to strong economic indicators and labour markets. As a result, the U.S. dollar appreciated against most major currencies, including gold. The Company periodically uses forward and option contracts as part of its gold sales risk management program. During the first half of 2018 and as at June 30, 2018, the Company had no contracts in place and therefore had full exposure to the gold price. 11

13 Foreign exchange rates The Company s functional and reporting currency is the U.S. dollar. A significant portion of the operating and capital costs at the Detour Lake mine, as well as the corporate administration and exploration and evaluation costs, are denominated in Canadian dollars. Consequently, the Company s operating results and cash flows are influenced by changes in the Canadian dollar against the U.S. dollar exchange rate. The average Canadian dollar exchange rate strengthened by 4% during the second quarter of 2018 compared to the second quarter of While the Canadian dollar was stronger on average in Q than in Q2 2017, and both the Bank of Canada and the U.S. Federal Reserve increased benchmark interest rates over the period since Q2 2017, increased U.S. protectionism and uncertainty with respect to NAFTA in the second quarter of 2018 resulted in a relative weakening of the Canadian dollar over the period. A stronger Canadian dollar increases costs in U.S. dollar terms as the Company estimates that approximately 75% of its operating and capital expenditures in 2018 are denominated in Canadian dollars. The Company has a foreign exchange risk management program whereby it can use derivative instruments to hedge a portion of its Canadian dollar expenditures to reduce exchange rate risk. As at June 30, 2018, the Company had $180.0 million of zero-cost collars to hedge its 2018 and 2019 Canadian denominated costs whereby it can sell U.S. dollars at an average rate of 1.25 and can participate up to an average rate of During the second quarter of 2018, the Company realized a loss of $0.2 million on its foreign exchange risk management program. Refer to section Liquidity and Capital Resources Derivative Instruments for details on the foreign exchange derivatives settled during the second quarter of 2018 and outstanding at June 30,

14 KEY OPERATING AND FINANCIAL STATISTICS The key operating and financial data for the periods are as follows: In millions of U.S. dollars, except where noted Three months ended June 30 Six months ended June Operating data Ore mined Mt Waste mined Mt Total mined Mt Strip ratio waste:ore Mining rate 000s tpd Ore milled Mt Head grade g/t Au Recovery % Mill throughput tpd 55,825 60,259 53,356 59,193 Gold ounces produced oz 154, , , ,556 Gold ounces sold 1 oz 146, , , ,183 Financial data Metal sales 1 $ Earnings from mine operations $ Net earnings $ Per share basic $/share diluted $/share Adjusted net earnings 2 $ Per share basic 2 $/share Total assets $ 2, , , ,386.1 Debt 3 $ Average realized price 2 $/oz 1,305 1,257 1,317 1,237 Total cash costs 2 $/oz Average realized margin 2 $/oz AISC 2 $/oz 1,104 1,123 1,088 1,120 1 Gold ounces sold are net of 2% royalty ounces payable in-kind. 2 Refer to the non-ifrs Financial Performance Measures section for a reconciliation of these amounts. 3 Debt at June 30, 2018 represents the Credit Facility with a face value of $250.0 million. 13

15 OPERATING RESULTS Gold production The Detour Lake mine produced 154,385 ounces of gold in the second quarter of 2018, an increase of 3% compared to 150,138 ounces of gold in the prior year period. The increase in gold production reflected higher head grades partially offset by lower plant throughput and recoveries. Mining The Company mined a total of 26.3 Mt of ore and waste (equivalent to approximately 289,000 tpd) in the second quarter of 2018, an increase of 4% from the prior year period. Although mining rates increased year-over-year, they were below plan due to lower shovel availability. The availability of the large rope shovels is expected to improve for the second half of 2018 as the planned component replacements have been completed. At the end of the second quarter, ROM stockpiles increased to 6.9Mt grading 0.69 g/t (approximately 154,000 ounces). Milling During the second quarter of 2018, the mill processed 5.1 Mt of ore (equivalent to 55,825 tpd), a decrease of 7% compared to the second quarter of 2017 (5.5 Mt of ore processed or 60,259 tpd). Throughput rates reflect the two scheduled plant shutdowns during the second quarter of A new redesigned mantle was installed for the primary crusher. Head grade averaged 1.06 g/t for the quarter compared to 0.95 g/t in the second quarter of 2017, reflecting higher grades from mining the last portion of the Campbell pit crown pillar. Mill recoveries averaged 88.9% for the second quarter of 2018 compared to 89.8% for the second quarter of Mill recoveries were below plan impacted mainly by plant reliability and, to a lesser extent, by an elevated blend of talc in the feed. Ongoing plant capital works are addressing required improvements of plant reliability and operating time to meet 2018 LOM Plan targets. Q Q Q Q Q Ore mined Mt Waste mined Mt Total mined Mt Strip ratio waste:ore Mining rate 000s tpd Ore milled Mt Head grade g/t Au Recovery % Mill throughput tpd 55,825 50,860 54,144 61,548 60,259 Ounces produced oz 154, , , , ,138 Ounces sold oz 146, , , , ,970 14

16 SECOND QUARTER 2018 FINANCIAL RESULTS Factors Affecting Second Quarter Net Earnings Millions of U.S. dollars Metal sales Metal sales for the second quarter of 2018 were $191.8 million compared to $180.1 million in the prior year period, reflecting a higher average realized gold price and higher gold sales. Gold sales during the second quarter of 2018 amounted to 146,856 ounces, an increase of 3% compared to 142,970 ounces in the prior year period and is attributable to higher gold production as described in the previous section. The average realized price for the second quarter of 2018 was $1,305 per ounce, an increase of $48 per ounce relative to the prior year period, reflecting a higher average market price for gold. Cost of sales Cost of sales for the second quarter of 2018 was $145.3 million compared to $137.5 million in the second quarter of This balance is comprised of production costs and depreciation. Production costs include costs associated with mining, processing, refining, site administration, and agreements with Aboriginal communities. Production costs during the second quarter of 2018 were $106.7 million compared to $101.8 million in the second quarter of The increase is primarily due to higher mining costs associated with increased tonnage mined and shovel repairs, including diesel fuel costs. Additionally, the mill had lower than planned reliability necessitating contractor crushing costs to maintain mill throughput, and the maintenance and installation of the new mantle. There were also two scheduled plant shutdowns during the quarter. Depreciation during the second quarter of 2018 was $38.6 million, or $263 per ounce sold, compared to $35.7 million, or $250 per ounce sold in the second quarter of Total cash costs for the second quarter of 2018 were $723 per ounce sold, an increase of 2% or $17 per ounce sold from the second quarter of 2017 of $706 per ounce sold. Costs were impacted by the mill and mine maintenance described above, as well as a less favourable foreign exchange rate in the second quarter of 2018 relative to the prior year period. 15

17 AISC for the second quarter of 2018 totaled $1,104 per ounce sold, compared to $1,123 per ounce sold in the second quarter of The decrease of $19 per ounce sold is primarily attributable to lower sustaining capital expenditures per ounce in the second quarter of 2018 partially offset by higher total cash costs per ounce. Sustaining capital expenditures in the second quarter of 2018 amounted to $46.4 million or $316 per ounce sold (including $13.3 million of deferred stripping) compared to $49.8 million or $348 per ounce sold (including $8.6 million of deferred stripping) in the prior year period. Sustaining capital expenditures in the second quarter of 2018 included $15.9 million for mining (mainly for payments for haul truck and shovel purchases as well as component replacements for the mobile fleet), $12.1 million for the ongoing construction of the tailings facility, $3.1 million for processing plant, and $2.0 million for site infrastructure, mainly for the new accommodation camp. Corporate administration expense Corporate administration expense was $8.5 million in the second quarter of 2018 compared to $8.5 million in the prior year period. Included in this amount is $0.1 million of share-based compensation expense, compared to $2.3 million in the second quarter of The decrease in share-based compensation expense reflects the impact of the Company s lower share price affecting the valuation of the restricted, performance and deferred share unit plans. During the second quarter of 2018, the Company incurred charges related to changes in senior management, including the retirement of the President and CEO. Exploration and evaluation expense Exploration and evaluation expense was $1.3 million in the second quarter of 2018 compared to $1.7 million for the prior year period, mainly reflecting drilling programs on the Detour Lake property. Refer to section Exploration Program for additional details. Net finance cost Interest expense and bank charges During the second quarter of 2018, the Company recorded interest expense and bank charges of $3.1 million compared to $4.9 million in the prior year period. The decrease is due to lower levels of debt outstanding at a lower interest rate. During the second quarter of 2018, the Company had drawn an average of $258.8 million on its credit facility compared to $329.4 million on its Convertible Notes in the prior year period. Unrealized and realized gain/loss on derivative instruments During the second quarter of 2018, the Company recorded a realized loss of $0.2 million on its financial risk management program (second quarter $0.2 million net loss) and recorded an unrealized net loss of $0.7 million on its derivative positions at June 30, 2018 (second quarter $2.2 million net gain). Details on the Company s derivative positions at June 30, 2018 are included in the Liquidity and Capital Resources Derivative Instruments section. Income and mining tax During the second quarter of 2018, an income and mining tax expense of $21.6 million was recognized (second quarter of $1.4 million recovery). The non-cash deferred tax expense recognized is primarily due to utilization of accelerated discretionary tax deductions and foreign exchange translation of non-monetary assets resulting from a weakened Canadian dollar since year-end. The Company s functional currency for financial reporting purposes differs from its tax filing currency. As a result, the tax basis of non-monetary assets and liabilities that are denominated in a currency other than the U.S. dollar are subject to re-measurement for changes in currency exchange rates at each reporting period. 16

18 Net earnings Net earnings for the second quarter of 2018 were $8.8 million, or $0.05 per basic share, compared to net earnings of $24.5 million, or $0.14 per basic share in the second quarter of The decrease primarily reflects a $23.0 million increase in deferred taxes, partially offset by $3.9 million higher earnings from mine operations and lower net finance costs of $3.4 million. Adjusted net earnings Adjusted net earnings for the second quarter of 2018 amounted to $21.3 million, or $0.12 per basic share, an increase from adjusted net earnings of $16.2 million or $0.09 per basic share from the prior year period, primarily due to the increase in earnings from mine operations. Reconciliation of Second Quarter 2018 Adjusted Net Earnings Millions of U.S. dollars Net earnings were adjusted to exclude specific items that are significant, and not reflective of the underlying operations of the Company, including: the impact of foreign exchange gains and losses, unrealized and non-cash fair value gains and losses of financial instruments, accretion on long-term debt, impairment provisions and reversals thereof, and other non-recurring items. The tax effect of adjustments, as well as the impact of foreign exchange translation on non-monetary assets related to deferred taxes, is presented in the income and mining tax adjustments line. Adjusting for these items provides an additional measure to evaluate the underlying operating performance of the Company as a whole for the reporting periods presented. The Company revised this measure and included a reconciliation of the current and comparative periods in the section Non-IFRS Financial Performance Measures. 17

19 FIRST HALF 2018 FINANCIAL RESULTS Factors Affecting First Half Net Earnings Millions of U.S. dollars Metal sales Metal sales for the first half of 2018 were $393.2 million compared to $343.8 million in the prior year period, reflecting higher gold sales volumes and a higher average realized gold price. Gold sales during the first half of 2018 amounted to 297,916 ounces, an increase of 7% compared to 277,183 ounces in the prior year period and is attributable to higher gold production as described in the Operating Results section. The average realized price for the first half of 2018 was $1,317 per ounce, an increase of $80 per ounce relative to the prior year period, reflecting a higher average market price for gold. Cost of sales Cost of sales for the first half of 2018 was $295.7 million compared to $279.0 million in the first half of This balance is comprised of production costs and depreciation. Production costs include costs associated with mining, processing, refining, site administration, and agreements with Aboriginal communities. Production costs during the first half of 2018 were $219.6 million compared to $208.2 million in the first half of Costs in the first half of 2018 were negatively impacted by high costs in the first and second quarter of 2018 relating to shovel repairs and incurring contractor ore crushing costs due to low availability of the primary crusher. The issue associated with the primary crusher was addressed in June 2018 with the installation of a new redesigned mantle. Depreciation during the first half of 2018 was $76.1 million, or $255 per ounce sold, compared to $70.8 million, or $255 per ounce sold in the first half of Total cash costs for the first half of 2018 were $734 per ounce sold, a decrease of 2% or $12 per ounce sold from the first half of 2017 of $746 per ounce sold. Total cash costs in the first half of 2018 benefitted from higher gold production relative to the prior year period. 18

20 AISC for the first half of 2018 totaled $1,088 per ounce sold, compared to $1,120 per ounce sold in the first half of The decrease of $32 per ounce sold is primarily attributable to lower total cash costs per ounce sold as described above and lower sustaining capital expenditures per ounce in the first half of Sustaining capital expenditures in the first half of 2018 amounted to $91.4 million or $307 per ounce sold (including $14.6 million of deferred stripping) compared to $88.6 million or $320 per ounce sold (including $12.0 million of deferred stripping) in the prior year period. Sustaining capital expenditures in the first half of 2018 included $45.2 million for mining (mainly for payments for haul truck and shovel purchases and component replacements for the mobile fleet), $20.2 million for the ongoing construction of the tailings facility, $4.4 million for processing plant, and $7.0 million for site infrastructure mainly for the new accommodation camp. Corporate administration expense Corporate administration expense was $12.9 million in the first half of 2018 compared to $12.5 million in the prior year period. Included in this amount is $0.4 million of share-based compensation expense, compared to $2.6 million in the first half of The decrease reflects the impact of the Company s lower share price affecting the valuation of the restricted, performance and deferred share unit plans. During the first half of 2018, the Company incurred charges related to changes in senior management. Exploration and evaluation expense Exploration and evaluation expense was $2.6 million in the first half of 2018 compared to $3.9 million for the prior year period, mainly reflecting drilling programs on the Detour Lake property. Refer to section Exploration Program for additional details. Net finance cost Interest expense and bank charges During the first half of 2018, the Company recorded interest expense and bank charges of $6.0 million compared to $10.0 million in the prior year period. The decrease is due to lower levels of debt outstanding at a lower interest rate. During the first half of 2018, the Company had drawn an average of $263.7 million on its credit facility compared to $343.6 million on its Convertible Notes in the prior year period. Unrealized and realized gain/loss on derivative instruments During the first half of 2018, the Company recorded a realized loss of $0.1 million on its financial risk management program (first half $0.7 million net loss) and recorded an unrealized net loss of $2.8 million on its derivative positions at June 30, 2018 (first half $1.9 million net gain). Details on the Company s derivative positions at June 30, 2018 are included in the Liquidity and Capital Resources Derivative Instruments section. Income and mining tax During the first half of 2018, an income and mining tax expense of $50.3 million was recognized (first half of $3.6 million recovery). The non-cash deferred tax expense recognized is primarily due to utilization of accelerated discretionary tax deductions and foreign exchange translation of non-monetary assets resulting from a weakened Canadian dollar since year-end. The Company s functional currency for financial reporting purposes differs from its tax filing currency. As a result, the tax basis of non-monetary assets and liabilities that are denominated in a currency other than the U.S. dollar are subject to re-measurement for changes in currency exchange rates at each reporting period. Net earnings Net earnings for the first half of 2018 were $18.7 million, or $0.11 per basic share, compared to net earnings of $30.5 million, or $0.17 per basic share in the first half of The decrease primarily reflects a $53.9 million increase in 19

21 deferred taxes, partially offset by $32.7 million higher earnings from mine operations and lower net finance costs of $9.0 million. Adjusted net earnings Adjusted net earnings for the first half of 2018 amounted to $49.5 million, or $0.28 per basic share, an increase from adjusted net earnings of $21.2 million or $0.12 per basic share from the prior year period, primarily due to the increase in earnings from mine operations. Reconciliation of First Half 2018 Adjusted Net Earnings Millions of U.S. dollars Net earnings were adjusted to exclude specific items that are significant, and not reflective of the underlying operations of the Company, including: the impact of foreign exchange gains and losses, unrealized and non-cash fair value gains and losses of financial instruments, accretion on long-term debt, impairment provisions and reversals thereof, and other non-recurring items. The tax effect of adjustments, as well as the impact of foreign exchange translation on non-monetary assets related to deferred taxes, is presented in the income and mining tax adjustments line. Adjusting for these items provides an additional measure to evaluate the underlying operating performance of the Company as a whole for the reporting periods presented. The Company revised this measure and included a reconciliation of the current and comparative periods in the section Non-IFRS Financial Performance Measures. 20

22 FINANCIAL CONDITION REVIEW In millions of dollars June December Cash and cash equivalents $ $ Receivables and other assets Current and long-term inventories Other Property, plant and equipment 2, ,122.6 Total assets $ 2,469.4 $ 2,417.5 Trade and other payables $ 69.8 $ 70.6 Long-term debt Other liabilities Deferred tax liability Total liabilities $ $ Total equity $ 1,978.4 $ 1,957.1 Total assets were $2.5 billion at June 30, 2018, an increase of $51.9 million compared to December 31, The Company s asset base is primarily comprised of non-current assets, property, plant and equipment, reflecting the capital intensive nature of mining. The net increase in total assets primarily reflects an increase in cash and cash equivalents and increase in current and long-term inventories. At June 30, 2018, inventories included $51.7 million of stockpiled ore (December 31, $36.7 million), $43.4 million of gold in-circuit (December 31, $27.2 million), $10.3 million of finished metal inventory (December 31, $12.9 million), and $38.5 million of materials and supplies (December 31, $37.5 million). Receivables and other assets were primarily related to Harmonized Sales Tax (HST) refunds. At any period end, the Company expects to have one or two months of HST refunds outstanding. The Company does not carry any trade receivables. Property, plant and equipment increased by net $3.6 million during the first half of Net additions to property, plant and equipment, including deferred stripping, amounted to $88.9 million, mainly attributable to the expansion of the mobile fleet and construction costs associated with the TMA. This balance was partially offset by $85.1 million of depreciation. The Company s primary contractual obligations consist of debt and trade and other payables. The Company s debt at June 30, 2018 consists of its Credit Facility, of which $250.0 million was drawn at June 30, Refer to section Liquidity and capital resources for additional details. Trade and other payables slightly decreased to $69.8 million at June 30, 2018 from $70.6 million at December 31, 2017 as an increase in trade payables was offset by a decrease in accruals. The Company s decommissioning and restoration provisions are included within Other liabilities in the table above. Significant restoration and rehabilitation activities include land rehabilitation, demolition of buildings and mine facilities, ongoing care and maintenance and other costs. At June 30, 2018, the provision was $34.1 million compared to $35.0 million at December 31, The decrease was primarily related to the impact of foreign exchange fluctuations in the valuation of the liability. There have been no changes to the underlying mine site closure activities or future cash flows. 21

23 The Company s derivatives are included in Other assets and Other liabilities in the table above. The movement in these balances is due to the change in value of open contracts and market rates at period end. A summary of the derivative positions and settlements during the quarter are included in section Liquidity and Capital Resources Derivative Instruments for details on the Company s derivative activities. The Company recognized deferred tax liabilities of $136.6 million in respect of income and mining taxes, an increase of $50.3 million from December 31, The deferred tax expense recognized is primarily due to utilization of accelerated discretionary tax deductions and foreign exchange translation of non-monetary assets. Total shareholders equity was $2.0 billion at June 30, 2018, an increase of $21.3 million compared to December 31, 2017, primarily due to net earnings of $18.7 million for the first half of

24 LIQUIDITY AND CAPITAL RESOURCES The Company manages liquidity risk by monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities. Cash flow forecasting is performed regularly. The Company monitors forecasts of the Company s liquidity in the form of cash and cash equivalents and requirements to ensure it has sufficient cash to meet operational needs while maintaining additional liquidity on its Credit Facility. Forecasting takes into consideration the Company s debt servicing requirements, covenant compliance and internal liquidity targets. In addition, factors that can impact the Company s liquidity are monitored regularly and include assumptions of gold market prices, foreign exchange rates, production levels, operating costs and capital costs. Contractual obligations and other commitments that could impact the Company s liquidity are detailed in the Commitments section of this document. Liquidity and capital resources The Company uses a mix of cash, debt and shareholders equity to maintain an efficient capital structure and ensure adequate liquidity exists to meet the needs of the operations and the Company. As at June 30, 2018, the Company had cash and cash equivalents of $150.3 million compared to $134.1 million at December 31, The funds are maintained in interest bearing accounts at select Canadian chartered banks. The Company has a $500.0 million Credit Facility that comprises a $300.0 million Revolving Credit Facility and $ Term Loan. The Revolving Credit Facility matures in July 2021 and the Term Loan in July As at June 30, 2018, the Company had drawn $200.0 million of the term loan and $50.0 million of the revolving credit facility. In addition, the Company has used the Credit Facility to issue $29.8 million of letters of credit. At June 30, 2018, the Company had undrawn capacity of approximately $220.2 million. The Credit Facility bears an interest rate of Libor plus 2.125% to 3.125% on drawn amounts and 0.48% to 0.70% on undrawn amounts, based on the Company s leverage ratio, as defined in the agreement. The Credit Facility is secured against all assets of the Company and contains covenants customary for a loan facility of this nature, including limits on indebtedness, asset sales and liens. It contains financial covenant tests that include (a) a minimum interest coverage ratio of 3.5:1:0, and (b) a maximum leverage ratio of 3.5:1.0. The Company is in compliance with all Credit Facility covenants as at June 30, In the first half of 2018, the Company made discretionary repayments of $20.0 million on its Revolving Credit Facility. The long-term debt repayment profile at June 30, 2018 is as follows: In millions of dollars Thereafter Repayment of term loan $ - $ - $ $ - $ - Repayment of revolving credit facility Interest on the credit facility Total $ 6.0 $ 11.9 $ $ 52.4 $ - In the current gold price environment, the Company considers its liquidity and capital resources together with the expected cash flows from operations to be sufficient to support the Company s normal operating requirements for the foreseeable future. 23

25 Cash flows Three months ended June 30 Six months ended June 30 In millions of dollars Cash flow from operating activities $ 65.3 $ 81.3 $ $ Cash flow used in investing activities (53.7) (60.9) (90.4) (85.4) Cash flow used in financing activities (11.9) (26.5) (24.0) (47.3) Effect of foreign exchange rates on cash (1.9) 1.3 (3.1) 1.8 Net increase (decrease) in cash (2.2) (4.8) 16.2 (1.2) Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period $ $ $ $ Cash flow from operating activities The Company generated $65.3 million and $133.7 million of operating cash flow during three and six months ended June 30, 2018 compared to $81.3 and $129.7 million in the prior year periods. Although the Company benefitted from a higher volume of gold sales and higher average realized gold prices, operating cash flow was negatively impacted in both periods by the use of working capital to increase ore and in-circuit inventories. Relative to the prior year periods, net working capital outflows increased by $23.7 million and $33.7 million, for the three and six months ended June 30, Cash flow used in investing activities Cash outflows from investing activities amounted to $53.7 million and $90.4 million for the three and six months ended June 30, 2018 compared to $60.9 million and $85.4 million in Cash used in investing activities is primarily for sustaining capital expenditures at the Detour Lake mine. The spend in the first half of 2018 was primarily related to the planned expansion of the mobile fleet, including the acquisition of haul trucks and shovel and auxiliary equipment, TMA construction activities, and new accommodation camp. Included in capital is $13.3 million and $14.6 million of deferred stripping for the three and six months ended June 30, 2018 compared to $12.0 and $8.6 million in the prior year period. Cash flow used in financing activities Net financing cash outflows during the second quarter of 2018 amounted to $11.9 million compared to $26.5 million in the prior year period. The decrease in financing activities primarily relate to a lower level of debt repayments in the second quarter of 2018 compared to the prior year period. The Company repaid $10.0 million on its Revolving Credit Facility compared to a $17.9 million convertible note repurchase in the prior year period. Net financing cash outflows for the first half of 2018 amounted to $24.0 million, compared to $47.3 million in the prior year. The lower cash outflows related to lower debt repayments in the first half of 2018 of $20.0 million compared to $38.1 million of convertible note repurchases in the prior year period. 24

26 Derivative instruments Fair values of derivative instruments Balance sheet June 30 December 31 In millions of dollars classification Currency contracts Derivative assets $ 0.7 $ 2.5 Currency contracts Derivative liabilities $ (1.8) $ (0.8) Total derivative assets $ 0.7 $ 2.5 Total derivative liabilities $ (1.8) $ (0.8) All derivatives outstanding as at June 30, 2018 and December 31, 2017 mature or expire within one year from the period end date. As at June 30, 2018, the Company had $180.0 million of zero-cost collars to hedge its Canadian dollar denominated costs whereby it can sell U.S. dollars at an average rate of 1.25 and can participate up to an average rate of As at June 30, 2018, the Company had no gold or diesel derivative contracts outstanding. (Gains) losses on derivative instruments Three months ended Six months ended June 30 June 30 In millions of dollars Unrealized (gain) loss Gold contracts $ - $ (0.3) $ - $ (0.7) Currency contracts 0.7 (2.5) 2.8 (2.4) Diesel contracts Total $ 0.7 $ (2.2) $ 2.8 $ (1.9) Realized (gain) loss Gold contracts $ - $ - $ - $ - Currency contracts Diesel contracts - (0.1) - (0.3) Total $ 0.2 $ 0.2 $ 0.1 $ 0.7 Total unrealized and realized (gain) loss on derivative instruments $ 0.9 $ (2.0) $ 2.9 $ (1.2) Sensitivities The Company enters into foreign exchange collars relating to the portion of the future operating expenses incurred in Canadian dollars. With all other variables held constant, a 10% increase or decrease of the U.S. dollar against the Canadian dollar would have affected the Company s net earnings and comprehensive earnings by negative $12.1 million and positive $12.4 million, respectively. 25

27 COMMITMENTS Purchase commitments As at June 30, 2018, total purchase commitments for capital expenditures for the Detour Lake mine amounted to $24.8 million (December 31, $30.2 million). Operating leases The Company has operating lease agreements involving office space and equipment. Future minimum lease payments required to meet obligations that have initial or remaining non-cancelable lease terms are $0.3 million in 2018, $0.6 million each year from 2019 to 2020, and $0.1 million thereafter. Detour Lake mine royalty Production from the Detour Lake mine is subject to a 2% net smelter royalty payable to Franco-Nevada Canada Holdings Corp. ( FN ). FN has the right to elect, on a yearly basis, to have the royalty paid in cash or in-kind. FN has elected to receive the royalty paid in-kind. For the three and six months ended June 30, 2018, the Company accrued or paid in-kind 2,837 and 5,856 ounces of gold (three and six months ended June 30, ,064 and 5,632 ounces of gold). Mine site closure obligations The Company has issued $15.3 million (Cdn$20.1 million) of surety bonds, and a letter of credit for $21.5 million (Cdn$28.3 million) under the Credit Facility in favour of the Ministry of Northern Development and Mines in support of the closure plan of the Detour Lake mine as at June 30, OFF-BALANCE SHEET ARRANGEMENTS The Company does not have any off-balance sheet arrangements. 26

28 SUMMARY OF QUARTERLY FINANCIAL RESULTS In millions of dollars, except per share and ounce amounts Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Gold ounces produced 154, , , , , , , ,758 Gold ounces sold 1 146, , , , , , , ,845 Metal sales 1 $ $ $ $ $ $ $ $ Cost of sales Production costs Depreciation and depletion Total cost of sales Earnings from mine operations Expenses Net finance cost (income) (2.9) 0.8 Income and mining tax recovery expense (recovery) (8.6) (1.4) (2.2) Net earnings (loss) $ 8.8 $ 9.9 $ 16.7 $ 41.1 $ 24.5 $ 6.0 $ (13.5) $ 9.7 Earnings (loss) per share Basic $ 0.05 $ 0.06 $ 0.10 $ 0.24 $ 0.14 $ 0.03 $ (0.08) $ 0.06 Diluted ( $ 0.05 $ 0.06 $ 0.10 $ 0.23 $ 0.14 $ 0.03 $ (0.08) $ 0.06 ( 1 Gold ounces sold are net of 2% royalty in kind ounces. Refer to section Commitments Detour Lake mine royalty. 2 Includes corporate administration, exploration and evaluation expenses and other operating (income) expenses. 27

29 NON-IFRS FINANCIAL PERFORMANCE MEASURES The Company has included certain non-ifrs measures in this document. The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-ifrs measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Total cash costs Total cash costs is a common financial performance measure in the gold mining industry but with no standard meaning under IFRS. Detour Gold reports total cash costs on a sales basis. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, such as sales, certain investors use this information to evaluate the Company s performance and ability to generate operating earnings and cash flow from its mining operations. Management uses this metric as an important tool to monitor operating cost performance. Total cash costs include production costs such as mining, processing, refining and site administration, agreements with Aboriginal communities, less share-based compensation and net of silver sales divided by gold ounces sold to arrive at total cash costs per gold ounce sold. The measure also includes other mine related costs incurred such as mine standby costs and current inventory write downs. Production costs are exclusive of depreciation. Production costs include the costs associated with providing the royalty in-kind ounces. Other companies may calculate this measure differently. All-in sustaining costs The Company believes that AISC more fully defines the total costs associated with producing gold. The Company calculates AISC as the sum of total cash costs (as described above), share-based compensation, corporate general and administrative expense, exploration and evaluation expenditures that are sustaining in nature, reclamation cost accretion, sustaining capital including deferred stripping, and realized gains and losses on hedges due to operating and capital costs, all divided by the gold ounces sold to arrive at a per ounce figure. Other companies may calculate this measure differently as a result of differences in underlying principles and policies applied. Differences may also arise due to a different definition of sustaining versus non-sustaining capital. Average realized price and Average realized margin Average realized price and average realized margin per ounce sold are used by management and investors to better understand the gold price and margin realized throughout a period. Average realized price is calculated as metal sales per the statement of comprehensive earnings and includes realized gains and losses on gold derivatives, less silver sales, per ounce sold. Average realized margin represents average realized price per gold ounce sold less total cash costs per ounce sold. 28

30 Total cash costs and AISC reconciliation The following table reconciles these non-ifrs measures to the most directly comparable IFRS measures. Three months ended Six months ended June 30 June 30 In millions of dollars, except w here noted Gold ounces sold 146, , , ,183 Total Cash Costs Reconciliation Production costs $ $ $ $ Less: Share-based compensation (0.3) (0.5) (0.3) (0.7) Less: Silver sales (0.2) (0.4) (0.7) (0.8) Total cash costs $ $ $ $ Total cash costs per ounce sold $ 723 $ 706 $ 734 $ 746 All-in Sustaining Costs Reconciliation Total cash costs $ $ $ $ Sustaining capital expenditures Accretion on decommissioning and restoration provision Share-based compensation Realized (gain) loss on operating hedges Corporate administration expense Sustaining exploration expenditures Total all-in sustaining costs $ $ $ $ All-in sustaining costs per ounce sold $ 1,104 $ 1,123 $ 1,088 $ 1,120 1 Based on property, plant and equipment additions per the cash flow statement, which includes deferred stripping. Non-sustaining capital expenditures included in the cash flow statement have been excluded. Sustaining capital expenditures include the value of commissioned assets with deferred payments. Non-sustaining capital expenditures primarily relate to the West Detour project. 2 Includes realized gains and losses on derivative instruments related to operating hedges (foreign exchange and diesel hedges only) as disclosed in the Derivative instruments section of this document. These balances are included in the statement of comprehensive earnings, within caption net finance cost. 3 Includes the sum of corporate administration expense, which includes share-based compensation, per the statement of comprehensive earnings, excluding depreciation within those figures. 4 Includes the sum of sustaining exploration and evaluation expense, which includes share-based compensation, per the statement of comprehensive earnings, excluding depreciation within those figures. Non-sustaining exploration and evaluation expense primarily relates to costs associated with Zone 58N, regional exploration, and Burntbush property. Average realized price and Average realized margin Three months ended June 30 Six months ended June 30 In millions of dollars, except w here noted Metal sales $ $ $ $ Realized (gain) loss on gold contracts Silver sales (0.2) (0.4) (0.7) (0.8) Revenues from gold sales $ $ $ $ Gold ounces sold 146, , , ,183 Average realized price per gold ounce sold $ 1,305 $ 1,257 $ 1,317 $ 1,237 Less: Total cash costs per gold ounce sold (723) (706) (734) (746) Average realized margin per gold ounce sold $ 582 $ 551 $ 583 $

31 Adjusted net earnings and Adjusted basic net earnings per share Adjusted net earnings and adjusted basic net earnings per share are used by management and investors to measure the underlying operating performance of the Company. Presenting these measures from period to period helps management and investors evaluate earnings trends more readily in comparison with results from prior periods. Adjusted net earnings is defined as net earnings adjusted to exclude specific items that are significant, but not reflective of the underlying operations of the Company, including: the impact of foreign exchange gains and losses, unrealized and non-cash fair value gains and losses of financial instruments, accretion on long-term debt, impairment provisions and reversals thereof, and other unusual or non-recurring items. The tax effect of adjustments, as well as the impact of foreign exchange translation on non-monetary assets related to deferred taxes, is presented in the income and mining tax adjustments line. Adjusted basic net earnings per share is calculated using the weighted average number of shares outstanding under the basic method of earnings per share as determined under IFRS. Three months ended Six months ended June 30 June 30 In millions of dollars and shares, except w here noted Basic w eighted average shares outstanding Adjusted net earnings and Adjusted basic net earnings per share reconciliation Earnings before taxes $ 30.4 $ 23.1 $ 69.0 $ 26.9 Adjusted for: Fair value gain of the convertible notes 1 - (0.1) - (0.9) Accretion on debt Non-cash unrealized (gain) loss on derivative instruments (2.2) 2.8 (1.9) Foreign exchange (gain) loss (2.1) 3.4 (2.7) Adjusted earnings before taxes $ 33.5 $ 26.2 $ 76.2 $ 36.7 Income and mining taxes (expense) recovery (21.6) 1.4 (50.3) 3.6 Income and mining tax adjustments 9.4 (11.4) 23.6 (19.1) Adjusted income and mining tax expense $ (12.2) $ (10.0) $ (26.7) $ (15.5) Adjusted net earnings $ 21.3 $ 16.2 $ 49.5 $ 21.2 Adjusted basic net earnings per share $ 0.12 $ 0.09 $ 0.28 $ Balance included in the statement of comprehensive earnings caption Net finance cost. The related financial statements include a detailed breakdown of Net finance cost. 2 Includes unrealized gains and losses on derivative instruments as disclosed in the Derivative Instruments note in the related financial statements. The balance is grouped with Net finance cost on the statement of comprehensive earnings. Total site costs and total site costs per ounce Total site costs and total site costs per ounce are metrics used in the Company s LOM only and are referenced in the section Corporate Developments of this document. Total site costs include operating costs such as mining, processing, site general and administration, bullion delivery, refining, agreements with Aboriginal communities and capital costs (including closure costs), net of silver sales. Total site costs include the costs associated with providing the royalty in kind ounces. The Company calculates total site costs per ounce as the sum of total site costs divided by gold ounces sold. 30

32 ADDITIONAL IFRS FINANCIAL PERFORMANCE MEASURES The Company has included the additional IFRS measure Earnings from mine operations in this document. The Company believes that this measure provides useful information to investors as an indication of the Company s principal business activities before consideration of how those activities are financed, sustaining capital expenditures, corporate administration expense, exploration and evaluation expenses, other operating (income) expenses, finance cost, and taxation. CRITICAL JUDGMENTS AND ACCOUNTING ESTIMATES The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continually evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ materially from these estimates. The critical accounting estimates and judgments applied in preparation of the Company s condensed consolidated interim financial statement for the three and six months ended June 30, 2018 are consistent with those applied and disclosed in the Company s audited annual consolidated financial statements for the year ended December 31, 2017 except for those related to impairment of assets. The significant decrease in the Company s market capitalization during the period was considered an indicator of impairment and, accordingly, an impairment assessment was performed. Based on the assessment, the carrying value of the Detour Lake mine was recoverable at June 30, 2018 and no impairment was deemed necessary. SIGNIFICANT ACCOUNTING POLICIES Except as described in the Company s condensed consolidated interim financial statements as at and for the three months ended March 31, 2018, the accounting policies applied by the Company in these financial statements are the same as those applied by the Company in its consolidated financial statements as at and for the year ended December 31, New accounting pronouncements not yet adopted On June 7, 2017, the IASB issued IFRIC Interpretation 23 Uncertainty over Income Tax Treatments. The Interpretation provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The Interpretation is applicable for annual periods beginning on or after January 1, Earlier application is permitted. The Company intends to adopt the Interpretation in its financial statements for the annual period beginning on January 1, The Company does not expect the Interpretation to have a material impact on the financial statements. On January 13, 2016, the IASB issued IFRS 16 Leases. The new standard is effective for annual periods beginning on or after January 1, IFRS 16 will replace IAS 17 Leases. This standard introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognize a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. IFRS 16 substantially carries forward the lessor accounting requirements of IAS 17, while requiring enhanced disclosures to be provided by lessors. Other areas of the lease accounting model have been impacted, including the definition of a lease. Transitional provisions have been provided. The Company intends to adopt IFRS 16 in its financial statements for the period beginning on January 1, The Company is evaluating the impact of adoption and expects to report more detailed information in its consolidated financial statements as the effective date approaches. 31

33 INTERNAL CONTROLS OVER FINANCIAL REPORTING The Interim Chief Executive Officer and Chief Financial Officer of the Company are responsible for designing internal controls over financial reporting or causing them to be designed under their supervision in order to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. The control framework that has been used is the COSO (2013) framework. There was no material change in the Company s internal controls over financial reporting that occurred during the second quarter of 2018 that has materially affected, or is reasonably likely to materially affect, the Company s internal controls over financial reporting. Disclosure controls and procedures Disclosure controls and procedures have been designed to provide reasonable assurance that all relevant information required to be disclosed by the Company is accumulated and communicated to senior management as appropriate to allow timely decisions regarding required disclosure. The Company s Interim Chief Executive Officer and Chief Financial Officer have concluded, based on their evaluation of the design of the disclosure controls and procedures as of June 30, 2018, that the Company s disclosure controls and procedures provide reasonable assurance that material information is made known to them by others within the Company are appropriately designed. Since the December 31, 2017 evaluation, there have been no material changes to the Company s disclosure controls and procedures. Limitations of controls and procedures The Company s management, including the Interim Chief Executive Officer and Chief Financial Officer, believe that any internal controls over financial reporting and disclosure controls and procedures, no matter how well designed, can have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance that the objectives of the control system are met. OUTSTANDING SHARES Outstanding Share Data at July 25, 2018 Number in millions Common shares Share purchase options 3.9 Restricted share units

34 RISKS AND UNCERTAINTIES The Company s major risk factors are disclosed in the Annual Information Form (AIF) for the year ended December 31, 2017 filed with the Canadian provincial securities regulatory authorities. The risk factors disclosed should be given special consideration when evaluating trends, risks and uncertainties relating to the Company s business. Any of the following risk factors could cause circumstances to differ materially from those described in forward-looking statements relating to the Company, and could have a material adverse effect upon the Company, its business, operations, results of operations, financial condition and future prospects. Although the risk factors disclosed in the AIF are the major risk factors identified by management, they do not comprise a definitive list of all risk factors related to the Company. In addition, other risks and uncertainties not presently known by management could impair the Company and its business, operations, results of operations, financial condition and future prospects in the future. CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION This MD&A contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as forward-looking statements ). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company s future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as plans, expects, is expected, budget, scheduled, estimates, continues, forecasts, projects, predicts, intends, anticipates, targets, or believes, or variations of, or the negatives of, such words and phrases or state that certain actions, events or results may, could, would, should, might or will be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company s actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. The forward-looking statements in this MD&A speak only as of the date of this MD&A or as of the date or dates specified in such statements. Specifically, this MD&A contains forward-looking statements regarding the Company providing stability and support needed for the COO to succeed in optimizing the Detour Lake operation; mining and milling rates being expected to improve during the second half of 2018 and head grades being expected to decrease in the second half of 2018; the Company producing 595,000 to 635,000 ounces of gold and having AISC of $1,200 to $1,280 per ounce sold in 2018; remaining focused on the overall execution of the 2018 LOM Plan to achieve sustainable results in 12 to 18 months; further upside opportunities not reflected in the 2018 LOM Plan being explored in due course; the Company s expectation to select permanent Mine General Manager in Q and to inject additional experienced senior site leaders over the coming months; ongoing plant capital works to meet the 2018 LOM Plan targets; the availability of the large shovels improving for the second half of 2018; approximately 5,500 metres of drilling planned west and northwest of Zone 58N in the second half of 2018; a geological mapping program and ground geophysical surveys starting on the Burntbush property in the third quarter of 2018; a 2,000 metre diamond drilling program on the Burntbush property following the results of the ground geophysical surveys; proceeding with a cost evaluation for an advanced underground exploration program at Zone 58N; LOM average annual gold production of approximately 659,000 ounces; LOM pre-tax cash flows of $8.4 billion; the implementation of the 2018 LOM Plan being the best value-maximizing alternative available to the Company today; Detour Gold filing a Technical Report by early fourth quarter of 2018; average annual gold production of approximately 659,000 ounces over LOM at average total site costs of US$843 per ounce sold; for the period , average annual gold production of approximately 608,000 ounces at average total site costs of $983 per ounce sold; annual total material mined ramping up to 129 Mt by 2024; annual plant throughput maintained at 23.0 Mt starting in 2021; LOM capital costs of $2.5 billion (excluding deferred stripping); LOM pre-tax cash flows of $8.4 billion at US$1,300 per ounce and Cdn /US exchange rate of 1.25; the updated mine plan generating a more consistent near and mid-term gold production profile; the mine parameters in the 2018 LOM Plan; the gold production profile being more consistent over the next twelve years at approximately 614,000 ounces per year and subsequently increasing to approximately 725,000 ounces per year for the next 10 years; a mine life of 22.6 years; the mine production plan assuming the continued development of the Detour Lake pit including successful attainment of required progressive permits, with the start-up of the West Detour pit in

35 and the North pit in 2026; the majority of ore tonnes (88%) being sourced from the Detour Lake pit with the balance coming from the West Detour and North pits; plant throughput capacity being maximized with the processing of LG Fines over the LOM (average grade of 0.59 g/t Au and representing less than 5% of total LOM mill feed); the mining rate for the Detour Lake pit gradually ramping up from 107 Mt in 2018 to 129 Mt in 2024 and the strip ratio varying annually from 3.5:1 to 6.6:1 during this period; the ultra-class haulage truck fleet increasing from the current 34 to 39 CAT 795 trucks in 2022 with no increase for the current two electric rope shovels (CAT 7495) and five hydraulic shovels (CAT 6060); production from the West Detour pit being scheduled from 2025 to 2036; the Company s plans to use the West Detour pit, once depleted, for tailings and/or waste rock deposition; production from the North pit from 2026 to 2030; ramp-up of the processing plant capacity from 21.0 Mt in 2018 to 23.0 Mt starting in 2021; overall gold recovery averaging 92.8% over the LOM Plan; details of the annual mine production plan; total site costs over the LOM averaging $843 per ounce sold; details of the operating and capital costs over the LOM; result of the economic analysis of the 2018 LOM Plan; the main operational improvement initiatives being implemented; the success of autonomous integration further providing upside to the 2018 LOM Plan s metrics and financials; the Company continuing its efforts the Company submitting the Final Draft Environmental Study Report for the West Detour project with the MNRF by year-end and proceeding with the required permit applications associated with the West Detour project; the key opportunities and risks of the 2018 LOM Plan; and details of the mine production plan from 2018 to Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, gold price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation, regulation and policies, support of the Company's Aboriginal communities, receipt of permits, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the gold exploration, development and production industry, as well as those risk factors listed in the section entitled "Description of Business - Risk Factors" in Detour Gold's 2017 Annual Information Form ( AIF ) and in the continuous disclosure documents filed by Detour Gold on and available on SEDAR at Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect forward-looking statements. Actual results and developments and the results of the final revised life of mine plan are likely to differ, and may differ materially or materially and adversely, from those expressed or implied by forward-looking statements, including those contained in this MD&A. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for exploration and development activities; operating and capital costs; results of operations; the Company s available cash resources; the Company's ability to attract and retain skilled staff; the mine development and production schedule and related costs; dilution control; sensitivity to metal prices and other sensitivities; the supply and demand for, and the level and volatility of the price of, gold; timing of the receipt of regulatory and governmental approvals for the proposed development of the West Detour project and the continued development of the Detour Lake pit, other development projects and other operations; the timing and results of consultations with the Company's Aboriginal partners; the supply and availability of consumables and services; the exchange rates of the Canadian dollar to the U.S. dollar; energy and fuel costs; required capital investments; estimates of net present value and internal rate of returns; the accuracy of mineral reserve and mineral resource estimates, production estimates and capital and operating cost estimates and the assumptions on which such estimates are based; market competition; ongoing relations with employees and impacted communities and general business and economic conditions; and general business and economic conditions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Detour Gold's actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements, including those herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are made as of the date hereof, or such other date or dates specified in such statements. Detour Gold undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. 34

36 INFORMATION CONCERNING ESTIMATES OF MINERAL RESERVES AND RESOURCES The mineral reserve and resource estimates have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States' securities laws. The terms "mineral reserve", "proven mineral reserve and "probable mineral reserve" are Canadian mining terms as defined in accordance with NI and the CIM Definition Standards. The CIM Definition Standards differ from the definitions in the United States Securities and Exchange Commission ("SEC") Guide 7 ("SEC Guide 7") under the United States Securities Act of 1933, as amended. Under SEC Guide 7, a "final" or "bankable" feasibility study is required to report mineral reserves, the three-year historical average price is used in any mineral reserve or cash flow analysis to designate mineral reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. In addition, the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in NI and recognized by Canadian securities laws but are not defined terms under SEC Guide 7 or recognized under U.S. securities laws. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be upgraded to mineral reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever by upgraded to a higher category. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Accordingly, these mineral reserve and mineral resource estimates and related information may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal laws and the rules and regulations thereunder, including SEC Guide 7. Mineral resources are not mineral reserves, and do not have demonstrated economic viability, but do have reasonable prospects for economic extraction. Measured and indicated mineral resources are sufficiently well defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the resource. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. There is no certainty that mineral resources of any category can be upgraded to mineral reserves through continued exploration. Detour Gold s mineral reserve and mineral resource figures are estimates and Detour Gold can provide no assurances that the indicated levels of gold will be produced or that Detour Gold will receive the gold price assumed in determining its mineral reserves. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that these mineral reserve and mineral resource estimates are well established and the best estimates of Detour Gold s management, by their nature mineral reserve and mineral resource estimates are imprecise and depend, to a certain extent, upon analysis of drilling results and statistical inferences which may ultimately prove unreliable. If the Company s mineral reserve or mineral reserve estimates are inaccurate or are reduced in the future, this could have an adverse impact on Detour Gold s future cash flows, earnings, results or operations and financial condition. Detour Gold estimates the future mine life of the Detour Lake operation. Detour Gold can give no assurance that its mine life estimate will be achieved. Failure to achieve this estimate could have an adverse impact on Detour Gold s future cash flows, earnings, results of operations and financial condition. 35

37 TECHNICAL INFORMATION The scientific and technical content included in this MD&A was reviewed, verified and approved by Drew Anwyll, P.Eng., Senior Vice President, Technical Services, a Qualified Person as defined by Canadian Securities Administrators National Instrument Standards of Disclosure for Mineral Projects. The mineral reserve and mineral resource estimates for the Detour Lake operation (except for the North pit mineral resources) were prepared under the supervision of Drew Anwyll, P.Eng., Senior Vice President Technical Services and the mineral resources for the North pit were prepared by Paul Daigle, P.Geo, of P. Daigle Consulting Services. The mineral resource estimate for Zone 58N was prepared under the supervision of Rejean Sirois, Eng., Vice President Geology and Resources for G Mining Services Inc. All are Qualified Persons as defined by Canadian Securities Administrators National Instrument Standards of Disclosure for Mineral Projects. The drilling programs are being managed by Kyle Fournier, P.Geo., Exploration Geologist, a Qualified Person within the meaning of National Instrument Mr. Fournier has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the information. For this drilling campaign, samples are prepared at ALS Laboratories in Sudbury and assayed at either their Vancouver, B.C or Val d Or, QC laboratory. Analysis for gold is done on sawn half core samples (size NQ) using 50 grams fire assay (AAS finish). Samples with higher grade gold (>10 g/t) are re-assayed using the pulp and fire assay with gravimetric finish procedures. The Company s quality control checks include the insertion of standard reference materials and blank samples to monitor the precision and accuracy of the assay data. 36

38 CORPORATE INFORMATION Directors Company Information Alex Morrison (2), (3), (4) Chairman Corporate Office Lisa Colnett (4), (5) Director Commerce Court West Edward Dowling (3), (5) Director 199 Bay Street, Suite 4100 Robert Doyle (2), (3) Director Toronto, ON M5L 1E2 Andre Falzon (1), (2) Director t: Ingrid Hibbard (1), (5) Director f: Michael Kenyon Jonathan Rubenstein (1),(4) Director Interim Chief Executive Officer and Director Investor Relations Laurie Gaborit, Vice President Investor Relations t: Board Committees e: (1) Corporate Governance and Nominating Committee (2) Audit Committee Media Inquiries (3) Technical Committee (4) Human Resources and Compensation Committee t: (5) Corporate Social Responsibility Committee e: Management Transfer Agent Michael Kenyon Interim Chief Executive Officer and Director Computershare Investor Services Frazer Bourchier Chief Operating Officer tf: James Mavor Chief Financial Officer t: Julie Galloway General Counsel and Corporate Secretary Drew Anwyll Senior Vice President, Technical Services Auditors Laurie Gaborit Vice President, Investor Relations KPMG LLP Ruben Wallin Vice President, Environment and Sustainability Alberto Heredia Controller 37