Section I. Macro 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% 2,500 2,000 1,500 -1% 1,000 -2% -3% 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% 30,000 25,000 20,000

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1 Section I. Macro $2, $1,8 $1,6 $1,4 $1,2 $1, $8 $6 $4 $2 Fig.1. and US Real Rates US Real Rates Price % 3% 2% 1% -1% -2% -3% -4% - $4,5 Fig.2. Fed Balance Sheet ($B) $4, $3,5 $3, $2,5 $2, $1,5 $1, $ ,6 1,4 1,2 1, Fig.3. and ECB Real Rates ECB Real Rates % 3% 2% 1% -1% -2% -3% 3,5 Fig.4. ECB Balance Sheet ( B) 3, 2,5 2, 1,5 1, , 12, 1, 8, 6, 4, 2, Fig.5. and PBC Real Rates PBC Real Rates % 3% 2% 1% -1% -2% -3% -4% - 35, Fig.6. PBC Balance Sheet (CNY B) 3, 25, 2, 15, 1, 5,

2 Thousands Section I. Macro $16 $14 $12 $1 $8 $6 Fig.7. The Biggest 6 Central Bank Balance Sheets US, UK, Japan, China, EU & Switzerland (US$T) $ $5 Fig.8. and M2 (US$B; Fed, ECB, PBC) $4 $3 M2 $2 $ $2, $1,5 $1, $ Fig.9. US M1 YoY% Fig.11. ECB M1 YoY % Fig.13. PBC M1 YoY % Fig.1. US M2 YoY% % Fig.12. ECB M2 YoY % 1 8% 6% 4% 2% Fig.14. PBC M2 YoY %

3 Section I. Macro $25 Fig.16. US National Debt ($T) Fig.15. Inflation US Euro Area China Headline CPI Core CPI n/a Shadowstats 8.8 n/a n/a, Shadow Government Statistics. As of 11/3/213 $2 $15 $1 $ Source: TreasuryDirect.gov, USDebtClock.org 37 Fig.17. US Debt as % of GDP $18 Fig.18. The Debt Ceiling ($T) 32 $17 27 $16 22 $ $14 Total Federal Debt Debt Ceiling Limit $ Fig.19. Average Annual Interest Rate on US Debt Source: US Treasury, Meridian Macro Fig.2. Interest Expense as % of Total Government Outlays ; US Treasury

4 Section I. Macro $1,9 Fig.21. Global Forex Accumulation (US$B, 12 month sum) $1,4 $9 $4 -$ ; MacroMavens, LLC $7 Fig.22. Net Purchases of US Treasury Notes and Bonds by All Foreign Countries (US$B, 12 month sum) $5 $3 $ $1 Source: US Treasury; MacroMavens, LLC $22 $18 Fig.23. China Net Purchases Long-Term US Securities (annual US$B) $14 $1 $6 $2 -$ Source: US Treasury; MacroMavens, LLC 4

5 Millions of Ounces Fig.24. Supply and Demand (tonnes) Supply Section II Q13 Mine production 2,591 2,592 2,478 2,55 2,481 2,476 2,49 2,584 2,739 2,827 2,848 2,188 Old gold scrap , ,217 1,672 1,723 1,669 1,626 1,47 Traditional supply 3,426 3,536 3,37 3,436 3,588 3,432 3,626 4,257 4,463 4,495 4,473 3,235 Net producer hedging (412) (279) (445) (86) (373) (444) (349) (252) (18) 1 (2) (39) Official sector sales Total supply 3,559 3,874 3,359 4,12 3,582 3,472 3,513 4,34 4,355 4,55 4,453 3,196 Demand Jewellery 2,68 2,522 2,673 2,77 2,283 2,45 2,187 1,76 2,17 1,972 1,98 1,645 Other Total fabrication 3,4 2,97 3,89 3,138 2,741 2,867 2,623 2,134 2,483 2,425 2,336 1,954 Bar & coin retail investment ,25 1,519 1,256 1,252 Official sector purchases ETFs & similar (697) Implied net investment (259) (94) (8) (81) Total demand 3,559 3,874 3,359 4,12 3,582 3,472 3,513 4,34 4,355 4,55 4,453 3,196 Source: World Council Fig.25. Market Cap of Above Ground as % of Total US Financial Assets 21.8% 19.6% % Q213 Source: Federal Reserve, World Council Fig.26. Held by ETFs 8 All ETFS SPDR Trust 4 Oct-3 Oct-5 Oct-7, Company Filings. Oct-9 Oct-11 Oct-13 5

6 Section II. Fig.27. SPDR Trust Ownership by Type Investment Adviser, 19.8 Broker, 9.9 Non- Institutional, 6.7 Private Banking, 3.1 Insurance Company,.2 Hedge Fund, 5.8 Mutual Fund, 3.2 Pension Fund,.4 Source: FactSet Fig.28. Notable Transaction in October 213 Country Tonnes Transaction Kazakhstan 2.4 Purchase Azerbaijan 2. Purchase Turkey 13. Addition Source: World Council 6 Fig.29. Central Banks Net Purchases (tonnes) Q Source: World Council 34, 33,5 33, 32,5 32, 31,5 31, 3,5 3, Fig.3. Central Banks Holdings of (tonnes) 29,5 3/ 3/2 3/4 3/6 3/8 3/1 3/12 Source: World Council 14% Fig.31. as % of Total Reserves 13% 12% 11% 1 9% 8% 3/ 3/2 3/4 3/6 3/8 3/1 3/12 Source: World Council 6

7 1 Section II. Fig.32. Web searches for " Bubble" Source: GoogleTrends Fig.33. Web searches for " Investment" Source: GoogleTrends Fig.34. Bernstein's Daily Sentiment Index 2 DSI Source Bloomberg, Bernstein's DSI Fig.35. Market Vane Bullish Consensus Market Vane Source Bloomberg, Market Vane $2, $1,8 $1,6 $1,4 $1,2 $1, $8 $6 $4 $2 $2, $1,8 $1,6 $1,4 $1,2 $1, $8 $6 $4 7

8 Millions of Ounces Section II Fig.36. Comex Futures Open Interest (tonnes) Open Interest $2, $1,8 $1,6 $1,4 $1,2 $1, $8 $6 $4 $ Fig.37. vs Continuous Commodity Index CCI Index , Net Large Speculators Net Hedgers/Commercials Fig.38. Comex Futures Activity (tonnes) $2, $1, , Source: CFTC $1, $ Fig.39. Commercial Net Shorts as % of Total Open Interest More Net Short Net Short/Open Interest 2 Less Net Short 7/1 7/11 7/12 7/13 ; The McClellan Market Report $1,9 $1,7 $1,5 $1,3 $1,1 $9 $7 $ Fig. 4. Registered COMEX Stocks vs. Owners per Ounce Registered Stocks Owners per Ounce

9 1H7 2H7 1H8 2H8 1H9 2H9 1H1 2H1 1H11 2H11 1H12 2H12 1H13 2H13 Section III. Mining Equities Fig.41. XAU and HUI as a Ratio of HUI/ XAU/ Source: FactSet $4, $3, $2, $1, -$1, -$2, -$3, Fig.42. Net Fund Flows For Lipper's Equity Precious Metals Fund Universe ($M) Source: Morningstar 2H13 - as of 11/3/13 $16 $14 $12 $1 $8 $6 $4 $2 Fig.43. Market Cap of Van Eck Equity ETFs ($B) 5/6 5/7 5/8 5/9 5/1 5/11 5/12 5/13 Source: FactSet $18 $16 $14 $12 $1 $8 $6 $4 $2 Fig.44. Equity Capital Issued by Miners $B of Equty Issued # of Transactions Source: RBC Capital Markets

10 Millions Section III. Mining Equities 1 8% 6% 4% 2% Fig.45. Senior Producers Return On Capital $6 $5 $4 $3 $2 $1 Fig.46. Average Cost of Acquisitions in the Sector ($/Oz) % Est. Source: FactSet. Universe: NEM, ABX, GG, KGC, AUY, NCM, AU, GFI, HMY Acquisition Cost As Ratio of Price Source: RBC Capital Markets, Bloomberg. $1,8 $1,6 $1,4 $1,2 $1, $8 $6 $4 $2 Fig.47. Senior Producers Cash Costs and Margin ($/Oz) Cash Margin Cash Costs Q213 $2,5 Fig.48. Mining Industry Production Costs $2, $1,5 $1, $5 After Tax Cash Cost ($/oz) Margin (%) E After Tax Cash Cost ($/oz) ,1 1,27 1,137 Margin (%) 23% 32% 31% 24% 18% 32% 21% 1 32% 34% 37% 34% 19% 27% Source: Tocqueville Asset Management, FactSet. 214 E

Section III. Mining Equities Fig.49. Price Discounted by Market ($/Oz) Source: BMO Capital Markets Fig.5. NAV Premiums Senior & Intermediate Producers (N.A.) Source: BMO Capital Markets Fig.51.

11 Section III. Mining Equities Fig.49. Price Discounted by Market ($/Oz) Source: BMO Capital Markets Fig.5. NAV Premiums Senior & Intermediate Producers (N.A.) Source: BMO Capital Markets Fig.51. P/CF Universe of Coverage Average Fig.52. Adjusted Market Cap per Oz of Resource Divided by Price Source: Scotiabank Source: Scotiabank 11

The Re-Emergence of a Bull Market:

July 2016 The Re-Emergence of a Bull Market: Finding Value in Gold Webinar Important Disclosures This material does not constitute marketing material for financial products but general research. This material