February 8, New Leader in Precious Metals

Transcription

1 February 8, 2016

2 Safe Harbour Disclaimer Cautionary Language on Forward Looking Information This presentation contains forward-looking information within the meaning of applicable Canadian securities legislation, and forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively referred to as forward-looking information ). All statements, other than statements of historical fact, may be forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", propose, "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. Forward-looking information in this presentation includes, but is not limited to, information concerning the proposed business combination (the Business Combination ) between Tahoe Resources Inc. ( Tahoe ) and Lake Shore Gold Corp. ( Lake Shore ) and the business, operations and financial performance and condition of the combined company; timing and anticipated receipt of required regulatory, court and shareholder approvals for the Business Combination; synergies and the financial impact of the Business Combination; potential benefits of the Business Combination and the development potential of the properties of Tahoe and Lake Shore; expected completion and implementation of the Business Combination; the nature of Tahoe s operations and Tahoe s business outlook following completion of the Business Combination; plans and objectives of management for future operations; timing and amount of future production; future cash costs of production, capital and operating and exploration expenditures; cash flow estimates; estimation of mineral resources and mineral reserves; development of deposits (including expansion of mineralization), mineral resources and mineral reserves; treatment under regulatory regimes; ability to realize value from Lake Shore s core assets; work plans and exploration programs to be conducted on Lake Shore s 144 Gap Zone,; development by Tahoe of the Shahuindo mine and expansion of the Escobal mine; plans to increase production; plans to ramp-up production on the Shahuindo Project; optimizing operating performance and costs; and composition of the management and board of the combined company. Total cash cost and all-in sustaining cost per gold or silver oz produced net of by-product credits ( AISC ) projections include a number of forward-looking assumptions including implementation of a new royalty law, lower current prices of by-product metals, estimated timing of power supply, budgeted cost of consumables including diesel fuel and cement and effectiveness and timing of cost saving initiatives. Forward-looking information is based on management s reasonable estimates, expectations, analyses and opinions at the date the information is provided, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Assumptions upon which such forward-looking information are based include, without limitation, that shareholders of Tahoe and Lake Shore and the Court will approve the Business Combination; that all required third party regulatory and governmental approvals to the Business Combination will be obtained and all other conditions to completion of the Business Combination will be satisfied or waived; the Business Combination will be completed; no significant event occurring outside the ordinary course of business of Tahoe or Lake Shore; legislative and regulatory environment; Tahoe s ability to continue paying municipal royalties in light of new royalty legislation; impact of increasing competition; current technological trends; price of silver, gold and other metals; costs of development and production; anticipated results of exploration and development activities; Tahoe s ability to operate in a safe and effective manner; and Tahoe s ability to obtain financing on reasonable terms. In respect of the forward-looking statements and information concerning the anticipated completion of the proposed Transaction and the anticipated timing for completion of the Business Combination, Tahoe and Lake Shore have provided them in reliance on certain assumptions that they believe are reasonable at this time, including assumptions as to the time required to prepare and mail shareholder meeting materials, including the required management information circular; the ability of the parties to receive, in a timely manner, the necessary regulatory, court, shareholder and other third party approvals; and the ability of the parties to satisfy, in a timely manner, the other conditions to the closing of the Business Combination. These dates may change for a number of reasons, including unforeseen delays in preparing meeting materials, inability to secure necessary shareholder, regulatory, court or other third party approvals in the time assumed or the need for additional time to satisfy the other conditions to the completion of the Business Combination. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Readers are cautioned that the foregoing list is not exhaustive. Tahoe s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, risks and uncertainties, many of which are beyond the Tahoe s and Lake Shore s control. These include, but are not necessarily limited to, legislative changes that impact mining operations in which Tahoe and Lake Shore conduct business; results of exploration activities and development of mineral properties; interpretation of drilling results and other geological data; uncertainties of mineral resource and mineral reserve estimations; receipt and security of mineral property titles; changes in project parameters; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents; labour disputes; the inability to obtain key personnel and parts related to operations; receipt of licenses to conduct mining activities; country risks; civil unrest; timing and possible outcome of pending litigation; liabilities and risks, including environmental liabilities and risks, inherent in the development and production of the companies projects; cost overruns or unanticipated costs and expenses; the availability of funds; fluctuations in metal prices; currency fluctuations; general market and industry conditions; competition; the business of the companies not being integrated successfully or such integration proving more difficult, time consuming or costly than expected; and delays in obtaining shareholder, governmental and regulatory approvals. There is no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on this information. Tahoe and Lake Shore do not undertake to update any forward-looking information, except as, and to the extent required by, applicable securities laws. Additional information on other risks and factors that could affect the operations or financial results of Tahoe and Lake Shore are included in reports on file with applicable securities regulatory authorities at 2

3 QP & Technical Disclosures Qualified Person Statement The technical and scientific information contained in this presentation has been reviewed and approved by Charlie Muerhoff, Tahoe s Vice President Technical Services and Qualified Person as defined by National Instrument (NI ) and and Eric A. Kallio, P.Geo., Lake Shore Gold s Senior Vice President of Exploration and a Qualified Person according to the definitions of NI Technical Reports Certain scientific and technical information with respect to the Escobal Mine contained in this presentation has been taken from the technical report entitled Escobal Mine Guatemala Feasibility Study with an effective date of November 5, 2014 (the Escobal Feasibility Study ), authored by M3 Engineering & Technology Corporation. A copy of the Escobal Feasibilty Study is available on Tahoe s SEDAR profile at Detailed descriptions, results and analysis of Tahoe s data verification, drilling, sampling and analytical procedures, QA/QC programs, and mineral resource and mineral reserve estimation methodology can be found in the Escobal Feasibility Study. Certain scientific and technical information with respect to the La Arena Project contained in this presentation has been taken from the technical report entitled La Arena Project, Peru - Technical Report (NI ), with an effective date of December 31, 2014 (the La Arena Technical Report ), prepared by Mining Plus Peru S.A.C. A copy of the La Arena Technical Report is available on Tahoe s SEDAR profile at Certain scientific and technical information with respect to the Shahuindo Project contained in this presentation has been taken from the technical report entitled Technical Report on the Shahuindo Mine, Cajabamba, Peru, with an effective date of January 1, 2016 (the Shahuindo Technical Report ), prepared by Tahoe. A copy of the Shahuindo Technical Report is available on Tahoe s SEDAR profile at Resource and reserve information with respect to the Escobal Mine, the La Arena Project and the Shahuindo Mine included in this presentation are provided as at January 1, 2016 and have been taken from Tahoe s news release dated January 14, The following Lake Shore Gold technical reports, which include information such as the effective date of mineral resources and mineral reserves and key assumptions, are available at or under Lake Shore Gold s profile on SEDAR at a) NI Technical Report, Updated Mineral Reserve Estimate For Bell Creek Mine, Hoyle Township, Timmins, Ontario, Canada, March 27, 2015, prepared by Lake Shore Gold Corp. NI Technical Report, Updated Mineral Reserve Estimate For Timmins West Mine, Timmins, Ontario, Canada, March 31, 2014, prepared by Lake Shore Gold Corp. b) Technical Report and Resource Estimate on the Upper Hallnor, C-Zone, and Broulan Reef Deposits, Whitney Gold Property Timmins Area, Ontario, Canada, February 26, 2014, prepared by P&E Mining Consultants Inc. c) Technical Report on the Updated Mineral Resource Estimate for the Juby Gold Project, Tyrrell Township, Shining Tree area, Ontario, February 24, 2014, prepared by GeoVector Management Inc. 3

4 Transaction Highlights A premier Americas focused precious metals producer Diversified operating platform with 4 low-cost precious metal operations across Guatemala, Peru and Canada Anchored by the Escobal mine, one of the largest and highest grade silver mines globally Significant low-cost production and low risk growth 2016E Combined Guidance 1,2 Gold Silver Gold Equivalent 3 Production kozs 18-21mozs kozs Cash Costs US$675-US$725/oz US$7.50-US$8.50/oz US$640-US$700/oz All-in Sustaining Costs US$950-US$1,000/oz US$10.00-US$11.00/oz US$885-US$950/oz All operations generate free cash flow in the current commodity price environment Significant built-in growth driven by Shahuindo expansion to 36,000 tpd rate and the advancement of a number of growth initiatives in Timmins, including the ramp up of the 144 Gap deposit Growth in Peru and Canada targeted to increase gold production to >500,000 ounces in 2018 Exciting exploration potential Over 3.4 mozs of M&I gold and 6.0 mozs of inferred gold across 8 exploration projects in Peru and Ontario Strong near-mine potential to add additional gold resources Large unexplored land package across all regions Superior financial performance and strong balance sheet Zero net debt, modest capital requirements and strong free cash flow generation provide industry leading financial strength and flexibility Tahoe plans to continue monthly dividend policy of US$0.02 per share 1. See Tahoe press release dated January 14, 2016; 2. See Lake Shore press release dated January 8, 2016; 3. Using Gold price of $1,175/oz and Silver price of $15.00/oz 4

5 Transaction Summary Proposed Transaction Consideration Conditions Anticipated Timing Other Terms Business combination with Lake Shore via Plan of Arrangement Implied equity value of approximately C$945 million 1 Pro forma ownership: 74% Tahoe / 26% Lake Shore of a Tahoe common share per Lake Shore common share, representing total consideration of C$1.71 per common share % premium over the closing price of Lake Shore on February 5 th and a 28.6% premium to the closing price of Lake Shore on February 4 th 25.7% premium based on each company s 20-day volume weighted average price ( VWAP ) 2 to February 5 th, and 30.4% to February 4 th Lake Shore shareholder vote (66 2/3% of shareholder votes cast) Tahoe shareholder vote (majority of shareholder votes cast) Customary regulatory and court approvals Mailing of meeting materials by early March Shareholder meetings by early April Closing expected in April Customary non-solicitation covenants, subject to normal fiduciary outs Right to match in favor of Tahoe Break fee of C$37.8 million payable to Tahoe; break fee of C$20.0 million payable to Lake Shore Officers and directors of Lake Shore and Tahoe intend to enter into voting support agreements, pursuant to which they will vote their common shares held in favor of the Transaction Alan Moon to join Tahoe Board of Directors and Tony Makuch to join Tahoe as President of Canadian Operations 1. At market closing on February 5, Equity value and pro forma ownership on a fully diluted in the money basis assuming the conversion of in the money convertible debentures 2. VWAP based on TSX trading only 5

6 Capitalization As at February 5 th, 2016 Units Tahoe Lake Shore (at offer) Pro Forma 2 TSX Share Price C$ $11.66 $1.71 $11.66 Basic Shares Outstanding 1 million FDITM Shares Outstanding 1 million FDITM Market Capitalization US$M $1,925 $683 $2,607 Cash and Cash Equivalents 1 US$M $92 $70 $162 Total Debt 1 US$M $51 $14 $65 Source: Bloomberg, company disclosure Note: Assumes a C$:US$ FX rate of Share capital and balance sheet items as of September 30, 2015 adjusted for reported subsequent events. Cash excludes proceeds from in-the-money options and warrants and excludes transaction related expenses. Lake Shore convertible debenture is included in the FD ITM shares outstanding and excluded from debt. Conversion price is C$ Pro forma figures calculated based on Tahoe s closing price on the TSX on February 5 th

7 Benefits to Tahoe Shareholders Enhances position as the premier low-cost precious metals producer Establishes a significant presence in Canada with well-established, low-cost operations and a talented and focused management team Enhanced high-margin gold production with organic growth Strengthens Tahoe s ability to generate strong free cash flow on a per share basis Addition of significant exploration potential at existing operations as well as attractive targets in close proximity to established, well-built mining and milling infrastructure Positions Tahoe to evaluate further consolidation opportunities in Ontario Superior free cash flow generation with tip of the iceberg potential 7

8 Benefits to Lake Shore Shareholders Exposure to a portfolio of high quality, low-cost, long life producing assets Immediate up-front premium while maintaining meaningful equity participation Superior financial strength and flexibility to support advancement of Timmins projects Exposure to a large, long-life reserve base pro forma through Tahoe s world-class Escobal mine and growing low-cost platform in Peru Expands operational capabilities, adding proven expertise in open pit mining Access to an attractive dividend policy Increased trading liquidity, enhanced value proposition and capital markets profile Participation in a premier precious metals company with sector leading financial strength 8

9 Diversified Operating Platform in the Americas 2016E Prod. Cash Costs Reserves Ag M&I Res. Ag Escobal 18-21Moz Ag US$7.50-$8.50/oz 332g/t 332g/t Timmins West Bell Creek 2016E Prod koz Au Cash Costs <US$650/oz Reserves Au 4.30g/t 4.57g/t M&I Res. Au 4.76g/t 4.36g/t La Arena Oxides Shahuindo Oxides 2016E Prod koz Au Cash Costs US$700-$750/oz Reserves Au 0.36g/t 0.53g/t M&I Res. Au 0.32g/t 0.50g/t La Arena Sulfides Shahuindo Sulfides Reserves Au 0.31g/t Inf. Res. Au 0.71g/t Reserves Cu 0.42% Inf. Res. Ag 21g/t M&I Res. Au 0.24g/t M&I Res. Cu 0.33% Other Lake Shore Assets Resources M&I (Moz) Inferred (Moz) 144 Gap Zone 5.41g/t 5.19g/t Whitney 6.85g/t 5.34g/t Gold River 5.29g/t 6.06g/t Juby 1.28g/t 0.94g/t Vogel 1.75g/t 3.60g/t Marlhill 4.49g/t - Fenn-Gib 0.99g/t 0.95g/t Total 2.77g/t 2.41g/t Note: M&I resources reported inclusive of mineral reserves; resource and reserve data from Lake Shore resource /reserve statement of March

10 Tonnes Processed (kt) Lake Shore High Quality, Low-Cost Assets Produced 179kozs Au in 2015 at cash cost of US$580/oz and AISC of US$870/oz Timmins West Mine Large-scale underground mining complex 2,770tpd at 4.4g/t, produced 139kozs in kozs Au P&P reserves at 4.3g/t Production from 144 Gap commences in H2/2016 City of Timmins Matheson Bell Creek Mine Underground ramp mining operation 810 tpd at 4.4g/t, produced 40kozs in kozs Au P&P reserves at 4.6g/t Large resource base at depth to support growth Bell Creek Mill Complex Conventional gold circuit; crush, grind, gravity and leach followed by CIL/CIP 96.6% recovery in 2015 (consistently above 95%) 3,580tpd at 4.4g/t processed in 2015, including 4,270tpd in Dec ,500tpd front-end mill capacity Note: M&I resources reported inclusive of mineral reserves; resource and reserve data from Lake Shore resource /reserve statement of March 2014 Porcupine Assets (G) Timmins West & Bell Creek (LSG) Holt-Holloway & Taylor (SAS) Macassa Complex (KGL) Upper Beaver (YRI / AEM) Young Davidson (AGI) Black Fox (P) Town 1,500 1, Matachewan 953 1,246 Kirkland Lake 1, A 2013A 2014A 2015E Well-built infrastructure to support growing low-cost operations 10

11 Debt (C$M) Cash & Liquidity (C$M) Gold Production (kozs) Cash Costs (US$/oz) Lake Shore - Increasing Financial Strength Strong financial performance driven by increasing production and lower costs year after year Growing Production Lower production cost 1 Timmins West Head Grade Bell Creek A 2013A 2014A 2015E Repaid C$70M senior secured debt $2,000 $1,500 $1,000 $500 $0 Cash Cost AISC $1,813 $1,139 $872 $870 $966 $766 $592 $ A 2013A 2014A 2015E Growing cash and liquidity $80 $60 $120 $100 $80 $40 $68 $52 $20 $7 $0 $0 2012A 2013A 2014A 2015E 1. See Non-GAAP reconciliation in the appendix $60 $40 $20 $0 $100 $61 $62 $ A 2013A 2014A 2015E 11

12 Lake Shore - Multiple Growth Opportunities near Existing Infrastructure Bell Creek mill capable of >4,000 tpd and expandable to 5,500 tpd 144 Gap Deposit First resource Q1/16; Development, test stoping to follow 144 SW/N/S Continue drilling focus on 144 South in 2016 Bell Creek Deep Complete study for shaft deepening to access deep resources Gold River >1.0 Mozs inferred resources; Drilling of extension in 2016 Whitney Resource confirmation/expansion using open-pit model in 2016 Tip of the Iceberg Potential in a World Class Gold Camp 12

13 Tahoe - Upside Potential Across All Regions EXPLORATION UPSIDE PRODUCTION Escobal 20mozs Ag / yr La Arena Oxide 170kozs Au / yr Shahuindo Phase 1 75kozs Au / yr Timmins/Bell Creek 175kozs Au / yr 144 Gap NEAR-TERM EXPANSION Commencing production in H Implement long-range development plans Bell Creek Mill Expansion to 5,500tpd for ~US$30M by 2017 Shahuindo Phase 2 36ktpd expansion in 2018 (170kozs / yr) IN DEVELOPMENT La Arena Sulfide Scoping in 2016 and Feasibility in 2017 Bell Creek Shaft Deepen shaft to 1,225m Whitney High-grade U/G resource 5km from Bell Creek mill El Alizar Look for potential to extend La Arena oxide 144 Trend Drilling of SW, North and South Zones Gold River >1mozs high-grade U/G resource near Timmins West mine Fenn-Gib Regional Exploration 13

14 Silver Production (Mozs) EBITDA (US$M) Gold Production (kozs) Growing Low-Cost Production, Strong Margins 2016E 2018E Gold Production Profile 2016E 2018E EBITDA Profile Au - THO Au - LSG PF Cash Cost (US$/oz) Lake Shore - EBITDA Tahoe - EBITDA $ $621 $622 $628 Strong Growth Potential $400 $351 $ E 2017E 2018E 2016E 2018E Silver Production Profile $300 $308 $72 $75 $68 Ag Production - THO Cash Cost (US$/oz Ag) $200 $7.57 $7.10 $ Stable Prodution $100 $236 $276 $ E 2017E 2018E $0 2016E 2017E 2018E Source: Available analyst estimates Note: EBITDA as per Bloomberg consensus estimates 14

15 Sector Leading Financial Strength Market Capitalization (US$B) $7.1 $2.5 $2.4 $2.3 $2.1 $1.9 $1.4 $0.8 $0.7 1 Agnico Eagle Tahoe Kinross Detour Yamana Eldorado New Gold B2Gold IAMGOLD Debt to Equity (%) % 92.7% 97.0% Avg: 57.0% 56.2% 60.1% 5.7% 17.5% 18.2% 30.3% 1 Tahoe Agnico Eagle Detour Eldorado New Gold B2Gold Kinross IAMGOLD Yamana Source: FactSet, Bloomberg, company disclosure Note: Balance sheet items and share capital as at September 30, 2015, adjusted for subsequent events 1. Pro forma figures based on price per Tahoe share of C$11.66 and pro forma basic share count of 295M; 2. Equity value based on basic market capitalization as at February 5,

16 Sizeable Production, Strong Margins 2016E E Average Consensus Gold Equivalent Production (kozs) 1 2,710 1,672 1, Kinross Agnico Eagle Yamana Eldorado IAMGOLD Tahoe New Gold B2Gold Detour 2016E E Average Consensus Co-Product Operating Margins (US$/oz) 2 1 $606 $592 $577 $571 $568 $532 $519 $474 Avg: $523 $324 1 Eldorado Agnico Eagle Tahoe Yamana New Gold B2Gold Detour Kinross IAMGOLD Source: FactSet, Bloomberg, company disclosure, available analyst estimates 1. Silver equivalent production for Tahoe converted to gold equivalent production based on analysts respective metal price forecasts 2. Margins calculated using spot gold price of US$1,175/oz 16

17 Sector Leading Free Cash Flow Yield 2016E E Average Consensus Free Cash Flow Yield (%) 5.4% 3.4% 1.6% 1.2% (0.8%) (1.3%) (4.4%) Avg: -3.5% (12.8%) (14.8%) Tahoe Yamana Agnico Eagle Kinross Eldorado Detour New Gold IAMGOLD B2Gold Current monthly dividend of US$0.02 supported by strong FCF Source: FactSet, Bloomberg, company disclosure, available analyst estimates Consensus FCF yield calculated using operating cash flow, less capital expenditures and debt repayment, divided by basic market capitalization Assumes conversion of outstanding Lake Shore convertible debenture 17

18 Commitment to Our Communities & Stakeholders Economic development Sustainable community programs Community partnerships Open communication Environmental excellence Healthy and safe workplace Ethical conduct Respect for human rights Approximately half of every $100 of revenue from Escobal and La Arena stays in country 18

19 The Path Forward Guatemala Long term low-cost production provides solid free cash flow foundation Peru Grow gold production to over 325kozs from existing operations in 2018 Optimize Shahuindo operating costs Expand oxide resources at La Arena and Shahuindo Continue study of potential La Arena Sulfides copper-gold porphyry project Canada Grow Timmins District production from 175kozs to 250kozs through expansion of Bell Creek mill to 5,500tpd and shaft deepening with relatively low capital Expand and explore 144 Trend beyond Gap Zone new trend just getting started Substantial resource endowment, including Whitney, Fenn-Gib, Gold River, and Juby provides attractive built-in pipeline of projects Capitalize on current infrastructure, operations, and expertise to expand regionally 19

20 Tahoe Resources Investment Highlights The leading precious metals producer Low-cost, well diversified production Growing gold production in Peru and Canada Significant exploration upside across all regions Focus on free cash flow generation All mines generate positive free cash flow in the current commodity price environment Peer leading free cash flow yield of 5.4% over Superior financial performance and strong balance sheet Zero net debt Debt-to-equity ratio of 5.7% the lowest in the gold industry Strong cash flow from operations provides financial flexibility to fund built-in growth initiatives Proven management team Excellent operating track record Demonstrated ability to grow shareholder value both organically and through M&A Returning capital back to shareholders Strong free cash flow supporting monthly dividend of US$0.02 per share 20

21 Tahoe Contact: Ira Gostin Lake Shore Contact: Mark Utting

22 Appendix Tahoe Tahoe Resources Quantity Grades Contained Escobal (Mt) Proven & Probable Reserves Silver (g/t) Gold (g/t) Lead (%) Zinc (%) Silver (Mozs) Gold (kozs) Lead (Mlbs) Zinc (Mlbs) Escobal % 1.19% Measured and Indicated Resources (Inclusive of Reserves) Escobal % 1.18% Inferred Resources Escobal % 0.45% Notes: 1. The basis of the Mineral Resource and Mineral Reserve estimate is from Escobal Mine Guatemala NI Feasibility Study, November 5, 2014, prepared by M3 Engineering & Technology Corporation. Mineral Resources and Mineral Reserves at January 1, 2016 calculated by subtracting mine depletion volumes from the Mineral Resources and Mineral Reserves stated in the aforementioned technical report. 2. Mineral Resources are reported using a silver-equivalent cut-off grade of 130 g/t silver. The Escobal Mine Guatemala NI Feasibility Study, November 5, 2014, prepared by M3 Engineering & Technology Corporation reported Mineral Resources using metal prices of $22/oz silver, $1,325/oz gold, $1.00/lb lead and $0.95/lb zinc 3. The Escobal Mine Guatemala NI Feasibility Study, November 5, 2014, prepared by M3 Engineering & Technology Corporation reported Mineral Reserves using a cut-off calculated from the net smelter return value minus production costs using metal prices of $22.50/oz silver, $1,300/oz gold, $0.95/lb lead and $0.90/lb zinc. 4. Mineral Reserves are inclusive of Mineral Resources. 22

23 Appendix Tahoe Tahoe Resources Quantity Grades Contained La Arena Proven & Probable Reserves (Mt) Gold (g/t) Copper (%) Gold (kozs) Copper (Mlbs) La Arena - Oxides La Arena - Sulfides % Total - Proven & Probable % 1, Measured and Indicated Resources (Inclusive of Reserves) La Arena - Oxides ,241 - La Arena - Sulfides % 2,124 2,014 Total - M&I % 3,365 2,014 Tahoe Resources Quantity Grades Contained Shahuindo Proven & Probable Reserves (Mt) Gold (g/t) Silver (g/t) Gold (kozs) Silver (Mozs) Shahuindo - Oxides , Shahuindo - Sulfides Total - Proven & Probable , Measured and Indicated Resources (Inclusive of Reserves) Shahuindo - Oxides , Shahuindo - Sulfides Total - M&I , Inferred Resources La Arena - Oxides La Arena - Sulfides % Total - Inferred % Notes: 1. The basis of the Mineral Resource and Mineral Reserve estimate is from La Arena Project, Peru Technical Report (NI ), February 27, 2015, prepared by Mining Plus Peru S.A.C. Mineral Resources and Mineral Reserves at January 1, 2016 calculated by subtracting mine depletion volumes from the Mineral Resources and Mineral Reserves stated in the aforementioned technical report. There has been no depletion of the sulfide Mineral Resources or Mineral Reserves. 2. Oxide Mineral Resources are reported using a gold cut-off grade of 0.07 g/t within a $1,400/oz gold pit shell. Oxide Mineral Reserves are reported using a gold cut-off grade of 0.1 g/t within a pit designed from a $1,200/oz gold pit shell. 3. Sulfide Mineral Resources are reported using a copper cut-off grade of 0.12% within a $3.50/lb copper and $1,400/oz gold pit shell. Sulfide Mineral Reserves are reported using a copper cut-off grade of 0.18% within a pit designed from a $3.00/lb copper and $1,200/oz gold pit shell. 4. Mineral Reserves are inclusive of Mineral Resources. Inferred Resources Shahuindo - Oxides Shahuindo - Sulfides , Total - Inferred , Notes: 1. The basis of the Mineral Resource and Mineral Reserve estimate is from Technical Report on the Shahuindo Mine, Cajabamba, Peru, January 25, 2016, prepared by Tahoe Resources Inc. and to be filed on SEDAR on January 25, The effective date of the Shahuindo Mineral Resource estimate is April 15, The effective date of the Shahuindo Mineral Reserve estimate is November 1, Oxide Mineral Resources are reported using a gold equivalent cut-off grade of 0.14 g/t within a $1,400/oz gold pit shell. Gold-equivalent value calculated using metal prices of $1,200/oz gold and $15/oz silver. Oxide Mineral Reserves are reported using a gold cut-off grade of 0.18 g/t within a pit designed from a $1,200/oz gold pit shell. 3. Sulfide Mineral Resources are reported using a gold cut-off grade of 0.5 g/t. There are currently no sulfide Mineral Reserves at Shahuindo. 4. Mineral Reserves are inclusive of Mineral Resources. 23

24 Appendix Lake Shore Lake Shore Gold Quantity Grades Contained Proven & Probable Reserves (Mt) Gold (g/t) Gold (Mozs) Timmins West Bell Creek Total - Proven & Probable Lake Shore Gold Quantity Grades Contained (Mt) Gold (g/t) Measured and Indicated Resources (Inclusive of Reserves) Gold (Mozs) Timmins West Bell Creek Gap Zone Whitney Gold River Juby Vogel Marlhill Fenn-Gib Total - Measured & Indicated Lake Shore Gold Quantity Grades Contained Inferred Resources (Mt) Gold (g/t) Gold (Mozs) Timmins West Bell Creek Gap Zone Whitney Gold River Juby Vogel Marlhill Fenn-Gib Total - Inferred Resources Qualified Person Statement The technical and scientific information contained in this presentation has been reviewed and approved by Eric A. Kallio, P.Geo., Lake Shore Gold s Senior Vice President of Exploration and a Qualified Persons according to the definitions of NI Data Verification/Technical Reports The following Lake Shore Gold technical reports, which include information such as the effective date of mineral resources and mineral reserves and key assumptions, are available at or under Lake Shore Gold s profile on SEDAR at a) NI Technical Report, Updated Mineral Reserve Estimate For Bell Creek Mine, Hoyle Township, Timmins, Ontario, Canada, March 27, 2015, prepared by Lake Shore Gold Corp. b) Technical Report, Updated Mineral Reserve Estimate For Timmins West Mine, Timmins, Ontario, Canada, March 31, 2014, prepared by Lake Shore Gold Corp. c) Technical Report and Resource Estimate on the Upper Hallnor, C-Zone, and Broulan Reef Deposits, Whitney Gold Property Timmins Area, Ontario, Canada, February 26, 2014, prepared by P&E Mining Consultants Inc. d) Technical Report on the Updated Mineral Resource Estimate for the Juby Gold Project, Tyrrell Township, Shining Tree area, Ontario, February 24, 2014, prepared by GeoVector Management Inc. 24

25 Appendix Lake Shore Note 1. Non-GAAP financial reconciliation in CAD unless specified Production Costs $79,295 $107,491 $120,303 General and administrative $12,209 $12,555 $13,534 Rehabilitation accretion and amortization (operating sites) $174 $186 $195 Mine in-site exploration and evaluation costs $5,229 $4,834 $4,486 Mine development expenditures $41,436 $31,338 $29,667 Sustaining capital expenditures $6,050 $2,682 $8,389 All-in sustaining costs $144,393 $159,086 $176,574 Gold sales (ounces) 79, , ,300 Cash Cost (US$/ounce) $966 $766 $592 All-in sustaining cost per ounce of gold (US$/ounce) $1,813 $1,139 $872 Source: Lake Shore Gold annual reports for year end December 31, 2012, 2013,