AN INNOVATIVE, GROWTH ORIENTED GOLD PRODUCER€¦ · AN INNOVATIVE, GROWTH ORIENTED GOLD PRODUCER...

AN INNOVATIVE, GROWTH ORIENTED

GOLD PRODUCER

BMO GLOBAL METALS & MINING CONFERENCE

February 29 – March 2, 2016

Chelopech Mine, Bulgaria

TSX:DPM 2

FORWARD LOOKING STATEMENTS

This presentation contains “forward looking information” or "forward looking statements" that involve a number of risks and uncertainties.

Forward looking information and forward looking statements include, but are not limited to, statements with respect to the future prices of

gold and other metals, the estimation of mineral reserves and resources, the realization of mineral estimates, the timing and amount of

estimated future production and output, costs of production, capital expenditures (including sustaining capex, non-discretionary capex

and discretionary capex), costs and timing of the development of new deposits, success of exploration activities, permitting time lines,

currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated

reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation.

Often, but not always, forward looking statements can be identified by the use of words such as “plans”, “expects”, or “does not expect”,

“is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, or variations

of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be

achieved. Forward looking statements are based on the opinions and estimates of management as of the date such statements are

made, and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or

achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied

by the forward looking statements. Such factors include, among others: the actual results of current exploration activities; actual results of

current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future

prices of gold; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated;

accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the

completion of development or construction activities, fluctuations in metal prices, as well as those risk factors discussed or referred to in

this presentation under and in the Company’s annual information form under the heading "Risk Factors" and other documents filed from

time to time with the securities regulatory authorities in all provinces and territories of Canada and available at www.sedar.com. Although

the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those

described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated

or intended. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events

could differ materially from those anticipated in such statements. Accordingly, readers are cautioned not to place undue reliance on

forward looking statements.

TSX:DPM 3

DPM’S GLOBAL PORTFOLIO OF ASSETS

Operating assets

Development asset

Exploration assets

Chelopech Mine

Bulgaria

100%

Avala

Serbia

50.14%

Tsumeb Smelter

Namibia

100%

Sabina

Canada

12%

Krumovgrad Gold Project

Bulgaria

100%

2015 EBITDA Generation 2015 Asset Diversification

Smelter

23%

Gold

48%

Copper

25%

Ag & Zn 4%

Tsumeb

8%

Kapan

4%

Chelopech

88%

Unique Assets With Commodity & Geographic Diversity

2015 Revenue Diversification

Bulgaria

45%

Namibia

47%

Armenia

5%

Canada 3%

TSX:DPM 4

DPM’S VISION AND STRATEGY

Optimize Portfolio Growth Innovation

Grow production and

margins through operational

excellence and high return,

modest capital investments

Maintain / extend life of

mines through near mine

exploration programs

A progressive gold mining company that unlocks and delivers superior value

through innovation and strong partnerships with stakeholders

Build a pipeline of future

growth opportunities

Acquire undervalued

assets and leverage

expertise to unlock value

Wi-Fi enabled UG mine

Real-time operational

management

Big data analytics to

optimize performance and

allow for faster better

decision making

Maintain Financial Strength and Flexibility

TSX:DPM 5

CHELOPECH – A WORLD CLASS, LOW COST MINE

2006 2015

Total ore mined to date ore reserve

Key Transformative Achievements

• Changed mining method, installed new ore handling systems and upgraded equipment

• Expanded mill capacity with SAG grinding and installed new staged flotation reactor technology

• Implemented process improvements to reduce cost and improve performance, including Wi-Fi

underground technology and real time monitoring capability

• Increased mine reserves and resources with focused near mine exploration, including recently announced

15% increase in resource, more than offsetting quadrupling of mine/mill production

21.522.8

15.4

1.09

1.31

1.81

2.03 2.05 2.04

2.0-2.25

2010 2011 2012 2013 2014 2015 2016F

Ore Mined (mt) Ore Mined / Reserves (mt)

2.3

1) Forecast/guidance information is subject to a number of risks. See “Forward Looking Statements” on slide 2.

(1)

TSX:DPM 6

2010 2011 2012 2013 2014 2015

ADJUSTED EBITDA (US$M)

118

153

196

57

133

101

CHELOPECH – MORE OPPORTUNITIES TO ADD VALUE

• Increase mine production to 2.5mtpy utilizing existing infrastructure in place

• Prepare to mine old sub-level cave areas containing in-situ resources previously left behind

• Near mine and regional exploration to maintain or increase life of mine

5655

46

40 4036 32-36

2010 2011 2012 2013 2014 2015 2016F

Cash Cost / tonne of ore processed (US$/t)

Near Term Priorities

2010 2011 2012 2013 2014 2016F2015

1) A non-GAAP measure. See Full Year 2015 MD&A for reconciliation

2) Adjusted EBITDA represents earnings before income tax plus depreciation and amortization, finance costs, losses/gains on impairment provisions and reversals, unrealized losses/gains on derivative contracts and investments at fair value, realized and

unrealized losses/gains on equity settled warrants, minus interest income.


(3)

(1), (1)(2)

TSX:DPM 7

180159 152

198 196

215-250

2011 2012 2013 2014 2015 2016F

341

420

479

394409 305-400

2011 2012 2013 2014 2015 2016F

Key Transformative Achievements

• Completed major capex program to upgrade facility to global environmental standards

• Selectively invested to debottleneck facility to support increased production of 240K – 265K tpy

• Secured supply of third party feed to fill added capacity and entered LT sales contracts for all acid produced

TSUMEB – NICHE PLAYER IN A COMPLEX CON MARKET

Smelter Production (000s tonnes)

Ausmelt Offgas Bag-House

Smelter site viewCash Cost/tonne concentrate smelted,

net of by-product credits ($/t)

2) A non-GAAP measure. Refer to the “non-GAAP Financial Measures” section of the 2015 Full Year and Q$ MD&A for reconciliations to IFRS.

(2)

(1)

(1)


TSX:DPM 8

TSUMEB – POISED TO GENERATE SIGNIFICANT EBITDA

Rotary holding furnace shell

• Commission new converters in Q1 2016 and ramp-up to nameplate capacity

• Optimize existing infrastructure and processes and reduce secondary material to normalized levels

• Advance assessment, permitting and commercial arrangements to support 370,000 tpy opportunity

Converter installation


3-2.5 -7

18.5

8.6

2011 2014 2015

26

63

140130

44

24-28

2011 2012 2013 2014 2015 2016F

Total Capital Expenditures (US$M)

20122013


(2)

Smelter Adjusted EBITDA (US$M)(1)

1) Adjusted EBITDA represents earnings before income tax plus depreciation and amortization, finance costs, losses/gains on

impairment provisions and reversals, unrealized losses/gains on derivative contracts and investments at fair value, realized and

unrealized losses/gains on equity settled warrants, minus interest income.

TSX:DPM 9

KRUMOVGRAD – LOW COST GOLD PROJECT

Conceptual Illustration of

Krumovgrad Gold Project

Key Recent Achievements


Project Economics

High Return Project

Annual gold production 85,700 oz

Capital cost to complete US$164M

Total cash cost per ozAuEq $389

Average annual

EBITDA $64.9M

• Finalize land purchase

• Obtain remaining construction related permits by

mid-2016

• Finalize execution schedule, engineering and

costing

• Advance financing plans to support construction and

2018 production

1) See footnote contained in Appendix on slide 16 for technical information disclosure

• Secured final main DDP in November 2015

• Received final approval for re-designation from

forestry to industrial land in February 2016

• Identified significant intersection at Kupel North

target and two additional nearby high priority targets

(1)

3) EBITDA is defined as earnings before interest, taxes, depreciation and amortization

4) Assuming gold and silver prices of $1250/oz and $23.00/oz, respectively

2) AuEq ounces include silver ounces produced and sold converted to a AuEq based on the ratio of the average metal prices for the commodities

(2)

(3),(4)

TSX:DPM 10

KAPAN: TO BE SOLD TO POLYMETAL

Transaction Highlights

Anticipated Proceeds

US$25 million at close

• US$10 million in cash

• US$15 million in Polymetal common shares

Subject to normal course working capital adjustments

2% net smelter return royalty on future production (1)

Closing Date

Within 4 – 6 weeks, subject to normal conditions precedent

Exclusions

Certain joint venture arrangements and related exploration assets and licenses in the

central part of the country

Implications

Reduces 2016 gold and copper production by approximately 15% and 5%

Strengthens balance sheet, reduces future capital requirements, and eliminates high

cost production

Increases focus on core portfolio of assets(1) Royalty is subject to a cap of US$25 million

TSX:DPM 11

CONSOLIDATED RESULTS AND OUTLOOK

626

736

2013 2014 2015 2016F

687

790-890

153 161169 120-

145162

263

2013 2014 2015 2016F 2018F 2020F

198215-250

300

370

2013 2014 2015 2016F 2018F 2020F

196

4643

40 32.8-35.5 34 34

2013 2014 2015 2016F 2018F 2020F

Payable Copper (Mlbs)Payable Gold (Koz) Smelter Production (Kt)

All-in Sustaining Cost (US$/oz)Capital Expenditures (US$M) Adjusted EBITDA (US$M)

152

2013 2014 2015 2016F 2017F 2018F 2019F 2020F

216 Sustaining CAPEX

Non-discretionary Growth CAPEX

Discretionary Growth CAPEX

184

87

49-59

93

19

98

2013 2014 2015

88

103

19

124


2) Reflects payable production and, in the case of gold, includes estimated payable gold in pyrite concentrate sold

3) 2016F is based on guidance issued Feb. 10, 2016. 2018 and 2010 forecast production is based on the completion of several growth projects within currently contemplated time frames.

4) Adjusted EBITDA represents earnings before income tax plus depreciation and amortization, finance costs, losses/gains on impairment provisions and reversals, unrealized losses/gains on derivative contracts and investments at fair value, realized and unrealized

losses/gains on equity settled warrants, minus interest income.

(1) (1) (1)

(1) (1)

(2)(2) (3)

(3)

(3)

(3)

(3)

(4)

TSX:DPM 12

COMMITTED TO MAINTAINING A STRONG BALANCE SHEET

0.94 1.12

1.67

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2013 2014 2015

(1) Debt, including current portion

(2) Undrawn portion of RCF and cash

180 201187

0

50

100

150

200

250

300

2013 2014 2015

Net Debt / EBITDA (x)

Net Debt / Capitalization (% at end of period) Total Available Liquidity (US$M at end of period)(2)

Debt, Net of Cash (US$M)(1)

35

122 121

0

50

100

150

2013 2014 2015

4

15 16

0.0

5.0

10.0

15.0

20.0

2013 2014 2015

TSX:DPM 13

RARE DEEP-VALUE INVESTMENT OPPORTUNITY

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

20132012 2014

Hard Hit Sector Valuations Creating

A Rare Investment Opportunity

DPM share priceGDX performance

2015

(89%)

(75%)

Attractive Valuation Metrics

P/2016F CFPS (Cons. Est.)(4)

1.0x 1.0x

0.9x

0.5x 0.5x

0.3x

New Gold Alacer Alamos Primero Argonaut DPM

Average: 0.7x

10.2x

9.4x

8.2x

3.7x

2.7x

1.9x

Alamos Alacer New Gold Argonaut Primero DPM

Average: 6.0x

4) Source: Capital IQ as at February 19, 2016

P/NAV (Cons. Est.)(4)

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$0

$500

$1,000

$1,500

$2,000

2013 2014 2015

Cu price

2012

Au price

2016

2016

$500

$750

$1,000

Alacer Dundee New Gold Primero Alamos

1) Source: Co. midpoints of AISC per ounce of gold guidance provided in Q4 2015 reporting

Average = $869/oz

$790-890/oz

Below Average 2016F All-In-Sustaining Mine Cost(1)(2)(3)


3) AISC per ounce of gold represents cost of sales at Chelopech less depreciation, amortization and other non-cash items plus

treatments charges, penalties, transportation and other selling costs, sustaining capital expenditures, rehabilitation related

accretion expenses and an allocated portion of the Company’s G&A expenses less by-product revenues in respect of copper,

silver and zinc including realized gains on copper derivative contracts divided by the payable gold in copper and zinc

concentrates sold.




Corporate Head Office:

One Adelaide Street East, Suite 500

Toronto, Ontario

M5C 2V9

T: 416 365-5191

Investor Relations

T: 416 365-2549

[email protected]

TSX:

DPM – Common Shares

www.dundeeprecious.com

Thank You

TSX:DPM

APPENDICES

TSX:DPM 16

APPENDIX CONTENTS

Footnotes and Disclaimers…………………………………………………………………. 17

Senior Management Team………………………………………………………………….. 18

Market Cap., Major Shareholders, Analyst Coverage…………………………………… 19

2016 Guidance………………………………………………………………………………. 20

Hedge Positions at Dec. 31, 2015…………………………………………………………. 21

DPM Exploration Assets……………………………………………………………………. 22

Chelopech Mine – Updated Mineral Reserves and Resources………………………… 23

Krumovgrad – Upper Zone Mineral Reserve and Resource Estimates……………….. 24

Krumovgrad – Wall Mineral Reserve and Resource Estimates………………………… 25

TSX:DPM 17

FOOTNOTES AND DISCLAIMERS

Without limitation to the foregoing, the following outlines certain specific forward looking statements contained in this presentation and provides certain material assumptions used to develop such forward looking

statements and material risk factors that could cause actual results to differ materially from the forward looking statements (which are provided without limitation to the additional general risk factors discussed

herein and in the Full Year 2015 MD&A).

Sustaining CAPEX, Non-Discretionary CAPEX and Discretionary CAPEX: assumes foreign exchange rates remain at or around current levels, and all capital projects proceed as planned and at a cost that is

consistent with the budget established for each project. Subject to a number of risks, the more significant of which are: technical challenges; delays related to securing necessary approvals, equipment deliveries,

equipment performance, and the speed with which work is performed; availability of qualified labour; and changes in project parameters, timing and decision to proceed with projects and/or any components there

of and estimated costs, including foreign exchange impacts.

Gold and Copper Production: projected levels of metal production assumes grades and recoveries are consistent with current estimates of Mineral Resources and Mineral Reserves and DPM’s current

expectations and timing of potential expansion at Kapan and construction start-up of Krumovgrad project and decision to proceed with projects and/or any components there of; and ore mined/milled is consistent

with planned levels. Subject to a number of risks, the more significant of which are: lower than anticipated ore grades, recovery rates and ore mined/milled.

Smelted Concentrate: assumes no significant disruption in equipment availability or concentrate supply. Subject to a number of risks, the more significant of which are: unanticipated operational issues; timing and

decision to proceed with expansion projects, including the holding furnace, and/or any components there of; unanticipated issues related to the commissioning and operation of the acid plant and converters and

any further expansion components including a holding furnace; lower than anticipated equipment availability; and disruptions to or changes in the supply of concentrate.

Technical Information related to slide 10 – Kapan PEA Summary

The Mineral Resource and LOM Mineral Inventory estimates and other scientific and technical information which supports this presentation were prepared by CSA Global (UK) Ltd. (“CSA”), in accordance with

Canadian regulatory requirements set out in NI 43-101, and were reviewed and approved by, as relates to Mineral Resources, Malcolm Titley BSc, MAIG, Director and Principal Geologist, of CSA, and Julian

Bennett, BSc ARSM FIMMM CEng, Mining Consultant, as relates to the LOM Mineral Inventory. Both Malcolm Titley and Julian Bennett are independent Qualified Persons (“QP”), as defined under NI 43-101. The

NI 43-101 technical report entitled “NI 43-101 Technical Report, Shahumyan Project, Kapan, Republic of Armenia” dated September 30, 2014, in respect of the Mineral Resource and Life of Mine Mineral Inventory

estimates disclosed herein (the “Kapan Technical Report”), was filed October 8, 2014 on SEDAR at www.sedar.com. Simon Meik, Corporate Director of Processing, and Edgar Urbaez, Corporate Director of

Technical Services, both of DPM, who are QPs and not independent of the Company, have reviewed and approved the contents of this presentation.

The Mineral Resource and LOM Mineral Inventory estimates contained herein may be subject to legal, political, environmental or other risks that could materially affect the potential development of such estimates.

See the Kapan Technical Report for more information with respect to the key assumptions, parameters, methods and risks of determination associated with the foregoing Mineral Resource and LOM Mineral

Inventory estimates.

Technical Information related to slide 9 – Updated Krumovgrad Project Economics

The Mineral Resource and Mineral Reserve estimates and other scientific and technical information which supports this presentation was prepared by CSA Global (UK) Ltd. (“CSA”), in accordance with Canadian

regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects, and were reviewed and approved by, as relates to Mineral Resources, Galen White, BSc (Hons)

FAusIMM FGS, Director and Principal Consultant of CSA, and Julian Bennett, BSc ARSM FIMMM CEng, as relates to Mineral Reserves. Both Galen White and Julian Bennett are independent Qualified Persons

(“QP”), as defined under NI 43-101. The NI 43-101 technical report (the “Krumovgrad Technical Report”) entitled “NI 43-101 Technical Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria” dated March 21,

2014, in respect of the study for the construction and operation of its Krumovgrad gold project disclosed herein, was filed March 31, 2014 on SEDAR at www.sedar.com. Simon Meik, Processing, and Edgar

Urbaez, formerly Corporate Director, Technical Services, both of DPM, who are QPs and not independent of the Company, have reviewed and approved the contents of this presentation.

The Mineral Resource and Mineral Reserve estimates contained herein may be subject to legal, political, environmental or other risks that could materially affect the potential development of such Mineral

Resources. See the Krumovgrad Technical Report for more information with respect to the key assumptions, parameters, methods and risks of determination associated with the foregoing Mineral Resource

estimates.

Cautionary note to U.S. Investors concerning estimates of Mineral Resources. These estimates have been prepared in accordance with the requirements of Canadian securities laws, which differ from the

requirements of U.S. securities laws. The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in NI 43-101 and recognized by

Canadian securities laws but are not defined terms under the U.S. Securities and Exchange Commission (“SEC”) Guide 7 (“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. 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 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 U.S. federal securities laws and the rules and regulations thereunder, including SEC Guide 7.

http://www.sedar.com/

TSX:DPM 18

DPM SENIOR MANAGEMENT TEAM

Rick Howes

President & Chief Executive Officer

Hume KyleExecutive Vice President & Chief Financial Officer

David RaeExecutive Vice President & Chief Operating Officer

John LindsaySenior Vice President, Projects

Paul ProulxSenior Vice President, Corporate Services

Michael DorfmanSenior Vice President, Corporate Development

Richard GosseSenior Vice President, Exploration

Lori BeakSenior Vice President, Governance, and

Corporate Secretary

Nikolay HristovSenior Vice President, Sustainable Business

Development

TSX:DPM 19

MKT CAP, MAJOR SHAREHOLDERS, ANALYST COVERAGE

Share Price (C$ per share) $1.15

Shares Outstanding – Current 140M

Market Capitalization – Current C$161M

52 week low – high (C$ per share) $0.84 – $3.19

Share Capital @ February 26, 2016 Analyst Coverage

Firm Analyst

BMO **In transition**

CIBC Capital Markets Ben McEwen

Dundee Securities Josh Wolfson

GMP Securities Oliver Turner

Paradigm Capital Don MacLean

Raymond James **In transition**

RBC Capital Markets Sam Crittenden

Scotia Capital Trevor Turnbull

Dundee Corporation 25.23%

GMT Capital 10.28%

Van Eck Associates 4.35%

J.P Morgan Asset Mgmt. (UK) 4.29%

USAA Asset Mgmt. 4.09%

Major Shareholders

TSX:DPM 20

UPDATED 2016 GUIDANCE TO REFLECT SALE OF KAPAN

US millions, unless otherwise indicated Chelopech Kapan(6) Tsumeb Consolidated

Ore mined/milled (‘000s tonnes) 2,030-2,250 95-110 - 2,125-2,360

Complex concentrate smelted (‘000s tonnes) - - 215-250 215-250

Metals contained in copper and zinc concentrates produced (1)(2)

Gold (‘000s ounces) 95-108 4-6 - 100-114

Copper (million pounds) 33.2-37.8 0.5-0.7 - 33.7-38.5

Zinc (million pounds) - 2.3-3.0 - 2.3-3.0

Silver (‘000s ounces) 204-234 90-110 - 294-344

Payable gold in pyrite concentrate sold (‘000s ounces) 26-40 - - 26-40

Cash cost per tonne of ore processed ($) (3)(5) 32-36 80-90 - 34-39

Cash cost per ounce of gold sold, net of by-product credits ($) (1)(3)(5) 560-760 970-1,200 - 580-770

All-in sustaining cost per ounce of gold ($) (1)(3)(5) - - - 840-920

Cash cost per tonne of complex concentrate smelted, net of by-product credits ($) (3)(5) - - 305-400 305-400

Cash cost per ounce of gold sold in pyrite concentrate ($) (5) 790-890 - - 790-890

General & administrative expenses (3)(4) - - - 17-21

Exploration expenses (3)(4) - - - 5-6

Sustaining capital expenditures (3) 10-12 3-5 12-16 27-31

1) Excludes metals in pyrite concentrate and, where applicable, the treatment charges, transportation and other selling costs related to the sale of

pyrite concentrate, which is reported separately.

2) Metals contained in concentrate produced are prior to deductions associated with smelter terms.

3) Based on foreign exchange rates and metal prices that approximate current rates and prices. The assumed copper price reflects the impact of 64%

of 2016 copper production being hedged at $2.32 per pound.

4) Excludes expenses of Avala.

5) Cash cost per tonne of ore processed, cash cost per ounce of gold sold, net of by-product credits, all-in sustaining cost per ounce of gold, cash cost

per tonne of complex concentrate smelted, net of by-product credits and cash cost per ounce of gold sold in pyrite concentrate have no

standardized meaning under GAAP. Refer to the “Non-GAAP Financial Measures” section of this MD&A for reconciliations to IFRS.

6) Assumes Kapan is sold at the end of March 2016

TSX:DPM 21

HEDGE POSITIONS AS AT Dec. 31, 2015

Year of projected payable copper

production

Volume Hedged

(lbs) % Hedged Average fixed price ($/lb)

2016 25,264,945 64% $2.32

QP Commodity Hedged(1) (2) Volume Hedged % Hedged Average fixed price

Payable gold 24,655 oz 100% $1,086.39/oz

Payable copper 13,359,997 lbs 100% $2.21/lb

Payable silver 110,810 oz 100% $14.09/oz

Payable Zinc 1,036,171 lbs 100% $0.73/lb

Year of projected payable

gold in pyrite con production

Volume Hedged

(oz)

% Hedged(payable gold in pyrite

con production)

Average fixed price of Pyrite

Production Hedges ($/oz)

2016 11,540 35% 1,177.35

Year of projected

operating expenses (1) (2) Foreign currency hedgedAmount hedged in

foreign currency% Hedged

Average exchange rate

Foreign currency/US$

2016Euro

South African rand

11,700,000

756,000,000

23%

21%

1.1112

13.0369

2017Euro

South African rand

10,800,000

720,000,000

62%

59%

1.1287

13.8699

TotalEuro

South African rand

22,500,000

1,476,000,000

1.1196

13.4304

1) Refer to Notes 7c and 7d in “Notes to Consolidated Financial Statements” of the 2015 Full Year MD&A for further detail on these hedges

2) Refer to Note 2.2h in “Notes to Consolidated Financial Statements” of the 2015 Full Year MD&A for commodity hedge accounting treatment

TSX:DPM 22

Sabina Gold & Silver Corp. (TSX:SBB), Nunavut

• Canadian-based, precious metals company with assets in Nunavut

• Assets include:

• High Grade Back River Gold Project. Initial feasibility study indicates:

Processing rate of 3,000 tpa

Avg. annual Au production of 198,100 oz @ $534/oz cash cost

Post-tax IRR of 24.2% and NPV of C$480.3M; LOM 11.8 yrs

Initial capital estimate of $15M and sustaining capital of $185M

• Hackett River payable silver royalty from Glencore Zinc:

22.5% of first 190M oz Ag, 12.5% thereafter

• Other gold claims

Avala Resources Ltd. (TSX-V:AVZ), Serbia

PARTIALLY OWNED EXPLORATION / DEVELOPMENT ASSETS

Equity Portfolio Holdings Overview (C$M)1

Securities Shares (m) % Held

Sabina Gold & Silver

Special Warrants

Total

23.5

5.0

12%

Avala Resources

Special Rights

Warrants

21.9

5.0

2.4

50.14%

Avala Sabina 12%

Timok Gold Project

• 2.5 million oz in resource category: 920,000 mineable oz

(2014 PEA, using $1300 gold and 5% discount rate)

• DPM plans to explore for additional mineable ounces

Kiseljak Copper Gold Porphyry Project

• 547 million tonnes at 0.22 g/t gold and 0.23% copper

• Assess potential to find higher grades close to surface

Lenovac option agreement with Rio Tinto

• 132km2 licence south of the Freeport-Reservoir discovery at

Cekaru Peki

• Rio Tinto committed to spend C$1M in first year

• If Rio Tinto incurs expenditures of US$3M by December 31,

2017, it will earn a 51% interest in project; If Rio Tinto incurs

additional expenditures of US$5M by end of 2019, it will earn a

65% interest in the project; If Rio Tinto incurs additional

expenditures of US$32M by end of 2023, it will earn a 75%

interest in the project

Transaction Summary

• February 12, 2016, DPM entered into an agreement with AVZ

to acquire the 21,735,018 shares of AVZ that it does not

already own

• DPM will issue 0.044 DPM shares for each of the AVZ shares

not already owned, representing 956,341 new DPM shares

• Exchange ratio represents 25% premium for AVZ shareholders

based on 10 day volume weighted average prices

• Closing must occur before April 30, 2016

TSX:DPM 23

CHELOPECH MINE: UPDATED MINERAL RESERVES AND RESOURCES

Chelopech Mineral Reserves – December 31, 2014

Category

Tonnes

(M)

Gold Copper Silver

Grade

(g/t)

Ounces

(M)

Grade

(%)

Pounds

(M)

Grade

(g/t) Ounces (M)

Proven 12.3 3.19 1.257 1.07 289 8.28 3.266

Probable 10.6 3.10 1.051 0.76 177 5.58 1.893

Total 22.8 3.14 2.308 0.93 467 7.03 5.160

Chelopech Mineral Resources – September 30, 2015

Category

Tonnes

(M)

Gold Copper Silver

Grade (g/t)

Ounces

(M)

Grade

(%)

Pounds

(M)

Grade

(g/t) Ounces (M)

Measured 22.3 3.78 2.706 1.20 590 9.25 6.627

Indicated 9.1 3.67 1.075 1.00 201 9.35 2.742

M&I 31.4 3.73 3.767 1.14 791 9.27 9.364

Inferred 2.9 2.48 0.228 0.83 52 9.11 0.8391. The rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals;

2. Mineral Reserves, Measured, Indicated and Inferred Mineral Resources have been reported in accordance with NI 43-101 and the classification adopted by the CIM;

3. Measured and Indicated Mineral Resources are additional to Minerals Reserves;

4. Mineral Resources and Reserves may be subject to legal, political, environmental and other risks and uncertainties. Refer to the most recent annual information form of the Company filed on the SEDAR website at www.sedar.com and the Company's

Technical Reports for more information with respect to key assumptions, parameters and risks relating to the above estimates.

5. Mineral Reserves and Resources estimates have been reviewed and prepared by CSA, that provides multi-disciplinary services to the global resources industry and is independent of the Company;

6. Mineral Reserves and Resources estimates are based on long term metals prices of USD 1,250/oz Au, USD 23/oz Ag, and USD 2.75/lb Cu and USD 0.85/lb Zn, and as of September 30, 2015;

7. Chelopech Mineral Resources are based on a gold equivalent cut-off 3.0 g/t (Au + Cu*2.06) and a greater than USD 0 profit/tonne test using NSR analysis;

8. Chelopech Mineral Reserves are based on a gold equivalent cut-off of 3.0 g/t (Au + Cu*2.06) and a cut-off of USD 10 profit/tonne using NSR analysis.

9. A Mineral Resource is an inventory of mineralization that under realistically assumed and justifiable technical and economic conditions might become economically extractable, while a Mineral Reserve includes diluting materials and allowances for losses

that are expected to occur when the material is mined. Under the previous method, when Minerals Reserves are reported as part of Measured and Indicated Resources, these diluting materials and allowances are excluded from the estimate of

Resources.

http://www.sedar.com/

TSX:DPM 24

KRUMOVGRAD GOLD PROJECT: UPPER ZONE MINERAL RESERVE AND RESOURCE ESTIMATES

Krumovgrad Mineral Reserves – December 31, 2014

Category

Tonnes

(M)

Gold Silver

Grade (g/t) Ounces (M) Grade (g/t) Ounces (M)

Proven 1.1 3.46 0.124 1.91 0.068

Probable 3.5 3.00 0.337 1.75 0.197

Total 4.6 3.11 0.461 1.79 2.66

Krumovgrad Mineral Resources – December 31, 2014

Category

Tonnes

(M)

Gold Silver


Inferred 0.3 1.31 0.013 1.06 0.011

1. The rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals;


3. Measured and Indicated Mineral Resources are additional to Mineral Reserves;

4. Mineral Reserves and Resources may be subject to legal, political, environmental and other risks and uncertainties. Refer to the most recent annual information form of the Company filed on the SEDAR website at

www.sedar.com and the Company’s Technical Reports for more information with respect to key assumptions, parameters and risks relating to the above estimates;


6. Mineral Reserves and Resources estimates are based on long term metals prices of USD 1,250/oz Au, USD 23/oz Ag, USD 2.75/lb Cu and USD 0.85/lb Zn, and as of December 31, 2014;

7. Krumovgrad Mineral Reserves and Resources are based on a gold cut-off grade of 0.6 g/t for the Upper Zone and Overburden and of 0.8 g/t for the Wall;

8. A Mineral Resource is an inventory of mineralization that under realistically assumed and justifiable technical and economic conditions might become economically extractable, while a Mineral Reserve includes diluting

materials and allowances for losses that are expected to occur when the material is mined. Under the previous method, when Mineral Reserves are reported as part of Measured and Indicated Resources, these diluting

materials and allowances are excluded from the estimate of Resources.

TSX:DPM 25

KRUMOVGRAD GOLD PROJECT: WALL MINERAL RESERVE AND RESOURCE ESTIMATES

Krumovgrad Mineral Reserves – December 31, 2014

Category

Tonnes

(M)

Gold Silver


Proven 1.5 6.83 0.325 3.50 0.166

Probable 0.1 5.54 0.020 2.93 0.011

Total 1.6 6.74 0.345 3.46 0.177

Krumovgrad Mineral Resources – December 31, 2014

Category

Tonnes

(M)

Gold Silver


Inferred 0.0 0.87 0.00 0.88 0.000

1. The rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals;


3. Measured and Indicated Mineral Resources are additional to Mineral Reserves;

4. Mineral Reserves and Resources may be subject to legal, political, environmental and other risks and uncertainties. Refer to the most recent annual information form of the Company filed on the SEDAR website at www.sedar.com

and the Company’s Technical Reports for more information with respect to key assumptions, parameters and risks relating to the above estimates;


6. Mineral Reserves and Resources estimates are based on long term metals prices of USD 1,250/oz Au, USD 23/oz Ag, USD 2.75/lb Cu and USD 0.85/lb Zn, and as of December 31, 2014;

7. Krumovgrad Mineral Reserves and Resources are based on a gold cut-off grade of 0.6 g/t for the Upper Zone and Overburden and of 0.8 g/t for the Wall;

8. A Mineral Resource is an inventory of mineralization that under realistically assumed and justifiable technical and economic conditions might become economically extractable, while a Mineral Reserve includes diluting materials

and allowances for losses that are expected to occur when the material is mined. Under the previous method, when Mineral Reserves are reported as part of Measured and Indicated Resources, these diluting materials and

allowances are excluded from the estimate of Resources.




Corporate Head Office:

One Adelaide Street East, Suite 500

Toronto, Ontario

M5C 2V9

T: 416 365-5191

Investor Relations

T: 416 365-2549

[email protected]

TSX:

DPM – Common Shares

www.dundeeprecious.com

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