Outlook for the Gold Mining Industry

April 17, 2012

Outline of Presentation
Forward looking statement Who is AuRico? Young Davidson Update Gold Industry Macro Economic Outlook Gold Price, support, volatility and replacement costs Gold vs Gold Stocks Current Playing Field Investors Perspective Miners Perspective Conclusions

FORWARD LOOKING STATEMENTS

Certain statements included herein, including information as to the future financial or operating performance of the Company, its subsidiaries and its projects, constitute forward-looking statements. The words believe, expect, anticipate, target, continue, estimate, may, and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding anticipated future financial and operational performance, the ability of the Company to achieve its guidance for production, cash costs, capex for 2012, 2013 and 2014 and its exploration expenditures for 2012, the ability to continue to fund expansion and exploration operations through cash flows, the ability of the Company to optimize and expand its operations and development projects through capital expenditure, the ability of the Company to complete its expansion studies in a timely manner and to achieve positive results therefrom, the ability to realize the perceived benefits of the acquisition of Capital Gold and Northgate, and the anticipated divestiture of the Australian mines, the ability of Young-Davidson to commence production in early Q2 2012 and to achieve over 200,000 ounces of annual production by 2015 and to meet the timelines for the commencement of mill processing, the ability to accelerate underground production at Young-Davidson, the ability to increase mining rates at Young-Davidson, the ability of the Company to achieve its targets for the continued expansion and development of Ocampo and El Chanate, the ability to improve infrastructure and productivity at El Cubo, the future price of gold and silver and the ratio of their prices, the de-risking of operations, future exploration results of the Companys exploration and development programs and the success of the Companys exploration approaches, the Companys ability to delineate additional resources and reserves as a result of such programs, statements regarding the Companys financial exposure to litigation, targets, estimates and assumptions in respect of gold and silver production and prices, operating costs, results and capital expenditures, mineral reserves and mineral resources and anticipated grades, recovery rates, future financial or operating performance, margins, operating and exploration expenditures, costs and timing of completion of the Ocampo expansion program and improvements to the heap leach pad, costs and timing of the development and commencement of production of new deposits, costs and timing of construction, costs and timing of future exploration and reclamation expenses including, anticipated results for the periods set out within, operating performance projections for the periods set out within, the Companys ability to fully fund its business model internally, gold and silver production for the periods set out within and the cash and operating costs associated therewith, the ability to achieve productivity and operational efficiencies, and the timing of each thereof. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. The operating and financial performance of the Company will be affected by changes in the actual gold equivalency ratio realized for the periods set out within. Many factors could cause the Companys actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among others, known and unknown uncertainties and risks relating to additional funding requirements, reserve and resource estimates, commodity prices, hedging activities, exploration, development and operating risks, illegal miners, political and foreign risk, uninsurable risks, competition, limited mining operations, production risks, environmental regulation and liability, government regulation, currency fluctuations, recent losses and write-downs, restrictions in the Companys loan facility, dependence on key employees, possible variations of ore grade or recovery rates, failure of plant, equipment or process to operate as anticipated, accidents and labour disputes. Investors are cautioned that forwardlooking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources
This presentation uses the terms Measured, Indicated and Inferred Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. Inferred Resources have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into reserves. U.S. investors are also cautioned not to assume that all or any part of an Inferred mineral Resource exists, or is economically or legally mineable.

Capital Markets Profile

Analyst Coverage

Capital

Structure1,2 281.8M 9.4M 1.8M 293.0M $113.1M2 $2.5B3

Company BMO Nesbitt Burns Canaccord Genuity CIBC Credit Suisse Dahlman Rose Desjardins Securities

Analyst David Haughton Rahul Paul Brian Quast Anita Soni Adam P. Graf Brian Christie Ron Stewart Craig West Barry Allan Tony Lesiak Mike Parkin Trevor Turnbull Steven Green Dan Rollins
Buy Average Target Price: $14.00 Hold

Issued and Outstanding shares Options Warrants & DSUs Fully Diluted Current cash position of Market Capitalization of

Dundee Securities GMP Securities Mackie Research Macquarie Securities Merrill Lynch

Credit Facility of up to US$100M NYSE and TSX listings provide liquid shares Avg. ~3.5M shares traded daily

Scotia Capital TD Newcrest UBS

1. 2. 3.

Excluding convertible debentures As of March 31, 2012 As of April 4, 2012

Recent History
First gold pour at Young-Davidson imminent (April 2012) Increased production by 50% and revenues by 89% over 2010 Divesture of Australian Operations (Expected to close by May 1) Began mill commissioning and ore processing at Young-Davidson (March 2012) Increased 2011 reserves and resources
199% increase in Proven and Probable reserves and 350% increase in Measured and Indicated resources over 2010

Pre-production development commences at Young-Davidson (November 2011) Acquisition of Northgate Minerals and the Young-Davidson Asset (October 2011) Acquisition of Capital Gold Corporation (April 2011)
5

Strong Portfolio of Properties

A Leading Producer Focused on Quality Assets in North America
AuRico N.A. Mineral Inventory 2P + M&I: 13.3M gold eq. oz.1 Inferred: 4.4M gold eq. oz.1
Ocampo, Mexico
2012 Production Gold eq. oz.1 2012 Cash Costs per gold eq. oz.1,2 2011 Resource (000s oz Aue)1,4 Grade (Aue g/t)1,5 2011 Inferred Resource Grade (Aue g/t)1,5 180-200k $465-$495 2,906 0.85 1,706 1.71

Young-Davidson, Canada
2012 Production Gold Oz.
Kemess

65-75k $450-$550 4,787 2.43 1,431 2.43

2012 Cash Costs per gold oz.3 2011 Resource (000s oz Au)4

2011 2P Mineral Reserves by Mine

(in thousands of gold equivalent ounces6)

Young-Davidson

Young-Davidson Ocampo El Chanate El Cubo Total Reserves

3,831 2,384 1,285 657 8,157

Grade (Au g/t)5 2011 Inferred Resource Grade (Au g/t)5

El Chanate, Mexico
2012 Production Gold Oz. 2012 Cash Costs per gold oz.3 2011 Resource (000s oz Au)4 Grade (Au g/t)5 2011 Inferred Resource Grade (Au g/t)1,5 78-88k $450-480 1,323 0.64 8 0.46

El Chanate Ocampo
Guadalupe y Calvo Orion

El Cubo

El Cubo, Mexico
2012 Production Gold eq. oz.1 2012 Cash Costs per gold eq. 2011 Resource (000s oz Grade (Aue g/t)1,5 oz.1,2 47-57k $750-$780 1,077 3.48 1,031 4.46

Aue)1,4

2011 Inferred Resource

1. 2. 3. 4. 5. 6. Gold equivalent production and cash costs are based on a gold equivalency ratio of 55:1 unless otherwise indicated. Production and cash costs for the Ocampo mine, El Cubo mine, and on a consolidated basis are calculated on a per gold equivalent ounce basis. Cash costs for the Young-Davidson and El Chanate mines are calculated on a per gold ounce basis, using by-product revenues as a cost credit. Production includes gold ounces only. Resource inclusive of reserves plus measured and indicated resources. Exclusive of inferred resources. Represents gold or gold equivalent grade as per technical reports and company disclosure. Refer to the Appendix for complete reserve and resource information.

Grade (Aue g/t)1,5

Increased Reserve Base at N.A. Assets

AuRico Gold North America
Proven and Probable Mineral Reserves by Mine (in thousands of gold equivalent ounces)
December 31

2011 3,831 2,384 1,284 657 8,157 2011 $1,250 $23.00 54.35 2010 $1,025 $16.60 61.75

2010 2,819 2,106 1,371 620 6,916

Change (%) 36% 13% (6%) 6% 18%

Young-Davidson Ocampo El Chanate El Cubo Total AuRico North America Reserve Assumptions Gold (US$/oz) Silver (US$/oz) Gold Equivalency Ratio

217%, 5.9M gold eq. ounce increase in reserves through acquisition and exploration programs Average reserve grade increase of 7% Drilling discovery cost of <$8.00 per gold eq. ounce for key assets Increased reserve ounces per 1,000 shares from 19.1 to 28.9 758%, 6.36M gold eq. ounce increase in Measured & Indicated 9%, 5.1M gold eq. ounce increase in Inferred
7

Three Year Production Profile

2012E Production (000s)1 Ocampo Chanate El Cubo Young Davidson Total Gold eq. Oz. 180-200 78-88 47-57 65-75 323-363 2012E Cash Costs2 Ocampo Chanate El Cubo Young Davidson Total per gold eq. oz. $465-$495 $450-$480 $750-$780 $450-$550 $465-$490 2012E Capex* Ocampo Chanate El Cubo Young Davidson Total US$ (millions) $36-$50 $45-$49 $17-$21 $173-$187 $254-$286 2013E Gold eq. Oz. 180-205 75-85 50-70 135-155 390-445 2013E per gold eq. oz. $550-$600 $455-$485 $600-$700 $500-$550 $515-$565 2013E US$ (millions) $60-$70 $30-$40 $10-$20 $100-$130 $190-$240 2014E Gold eq. Oz. 210-245 75-95 50-70 165-190 450-530 2014E per gold eq. oz. $500-$550 $480-$510 $600-$700 $460-$510 $480-$530 2014E US$ (millions) $45-60 $35-$45 $10-$20 $50-$65 $130-$170 Production per 1,000 Shares Gold eq. (realized) 2010 2011 2012 2013 2014 Peer-leading Growth Profile

YoungDavidson El Cubo El Chanate

Ocampo

2.1

1.8 1.4 0.9 1.5

(1) Gold equivalent ounces include silver ounces produced and sold converted to a gold equivalent based on a ratio of 55:1. (2) Production and Cash costs for the Ocampo mine, the El Cubo mine and on a consolidated basis are calculated on a per gold equivalent ounce basis. Cash costs for the El Chanate mine are calculated on a per gold ounce basis, using by-product revenues as a cost credit.

2010

2011

2012

2013

2014

*Excludes exploration

Young-Davidson Historic Perspective

20

Historic Production from underground gold mines in Timmins and Kirkland Lake (~108 M Oz.) Five mines with greater than 5 million ounces production, Young-Davidson is likely to be the sixth

15

M Oz.

10

Macassa

Hollinger

Young-Davidson

Preston

Wright Hargreaves

Upper Canada

Hisotrical Production

YD P&P

Teck Hughes

Kerr Addison

YD M&I

Hoyle Pond

YD Inferred

Paymaster

Lakeshore

Coniarium

Dome

Pamour

Aunor

Hallnor

Sylvanite

McIntyre

Rich Tradition - History

Site of two former producers 20+ years in operation +1,200 tpd avg. production rate Mined ~9 million tonnes and produced 970,000 ounces Average realized grade of 3.37 g/tonne

Early pioneers of bulk mining +1 million tonne stopes underground

Period 1934 to 1957 1934 to 1954 1981 to 1982 Total YD MCM MCM

Mine

Tonnes 5,653,000 3,205,000 96,400 8,954,400

Grade (g/tonne) 3.21 3.66 2.36 3.37

Produced Oz 585,000 378,000 7,300 970,300

Young-Davidson Mine (YD)

Matachewan Consolidated Mine (MCM)

10

YD Proven & Probable Reserves

End of Year

36% Reserve Increase of +1 Million Gold Ounces

4,000 642 3,831

Additions Reductions

3,500 370 3,000 Au Koz 2,819

2,500

2,000

1,500 Feasibility YD West Mining Method EOY 2011

YD West converted to reserves, some indicated re-classified as inferred Paste backfill allows for conversion of mining methods Conversion to long-hole mining - transverse & longitudinal stoping Mining recoveries improvement from ~72% to 92% Dilution improves from 15% to <10% 11

YD West Zone
Significant increase in resources (Sept 2011) Addition of + 1 million ounces to Proven and Probable reserves (Dec 31, 2011)

Drilling in 2012 will focus on extending the YD West Zone

Thickest resource on property (30 m avg); potential lowest cost per ounce mining zone

Unexplored

Open at depth

12

Young-Davidson Construction Update

Mill Building 115 kV Substation

Northgate Shaft

Ore Bins

13

Young-Davidson Construction Update

As of April 2012 the following major project milestones have been achieved:
Mill process systems required for gold pour are virtually complete Wet commissioning is complete and ore processing of law-grade stockpiles began March 22 Leach tanks have been filled, carbon and cyanide have been added S02 plant for cyanide destruction is in the final commissioning stage Concrete ore bins are constructed to final height Construction of the ore and waste bins at the Northgate shaft is progressing well Ground support for the first leg of the Northgate shaft has commenced and reached a depth of 50 metres Open pit mining rates during March averaged 22,870 tonnes per day of ore and waste with a target of 35,000 tonnes per day by the end of Q2 700,000 ore tonnes (almost 4 months mill feed) has already been stockpiled
14

Northgate Headframe

Temporary Ore Feed Facility

Mill Building Interior

Water Tanks and Carbon in Leach Circuit

Macro-Economic Snapshot
2012 A year of modest global growth and recovery
Key macro-economic themes: 2012 average global growth of 3.5% 2013 average global growth of 4.2% 2012 average global inflation of 3.7% Moderate US growth
4 2 0 -2 -4 -6 -8 -10 -12 1Q07 1Q08 1Q09 1Q10 Forecast 12 Forecast QoQ% ann. rate YoY%

Continued moderate US growth Only a mild recession in Europe Slower growth in China (~8% in 12 and 13) Soft landing in China
15

12: 2.2% 13: 2.0%

9 6 3

YoY% 1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 (E)

12: 8.0% 13: 8.2%

1Q11

1Q12 (E)

Source: US Bureau of Economic Analysis, CS GDP growth forecast

Source: National Bureau of Statistics of China, CS GDP growth forecast

Euro zone contraction

4 2 0 -2 -4 -6 -8 -10 -12 Forecast

Muted global growth driven by emerging markets

6 5 4 3 2 1 0 -1 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 %

QoQ% ann. rate YoY% 1Q07 1Q08 1Q09 1Q10 1Q11

12: 0.0% 13: 1.7%

1Q12 (E)

Source: Thomson Reuters DataStream, CS GDP growth forecast

Source: IMF, Credit Suisse

1985-2010 average growth rate @ 3.5% 2003-07 average growth rate @ 4.8%

12: 3.5% 13: 4.2%

16

Gold Price Support

Key gold themes: 2012 & 2013 analyst consensus: US$1,820/oz Significant cash cost inflation over the past 5 years Focus on capital preservation driving physical gold demand Increased industry cost pressures
1,600 1,400 1,200 1,000 800 600 400 200 0 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
US$ 298/oz(2) US$ 564/oz(2)

US dollar and Euro losing reserve currency status Ongoing European debt crisis Central Banks diversifying away from USD into gold
1054 874
Gold holdings (Tonnes)
USD/CAD USD/EUR 2007 Avg Current 1.07 0.73 1.20 0.50 7.80 117.76 1.00 0.75 Chg (7.1% ) 2.8%

2006 C1 cash costs 2011E C1 cash costs

LT gold price: US$ 1,194/oz

600 358

558

457

USD/CHF USD/GBP USD/HKD

0.91 (24.5% ) 0.64 7.76 27.5% (0.6% )

China 2008

India

Russia Current

USD/JPY

80.20 (31.9% )

Majority of new gold investment in gold ETFs / bullion

2,000 1,600 1,200 800 400 0 Feb-05 GLD ETF holdings (million units) Gold price (US$/oz) 50 40 30

Continued Eurozone instability & contraction

1.1% -2.0% 1.3% -2.2% -0.5% 1.6% -1.8% -1.7%

158%

20 10 0 Feb-12
Greece

120% 102% 68%

Feb-06

Feb-07

Feb-08

Feb-09

Feb-10

Feb-11

Italy Debt as a % of GDP

Portugal

Spain

IMF revisions to 2012E GDP growth

Note: (1) (2)

C1 cash cost represents the costs for mining, processing and handling ore and mined products; as well as administration and accounting overhead. It does not include capital costs for exploration, mine development or processing mill capital works. It includes net proceeds from by-product credits. It does not include the cost of royalties. 2012E real GDP growth forecasts as of April 2011 & January 2012 for Italy and Spain; forecasts as of April & September 2011 for Greece and Portugal (IMF World Economic Outlook). Represents Brook Hunt average C1 cash costs for 2006 & 2011E.

17

Gold Price Volatility

What happened in September 2011? Federal Open Markets Committee meeting sparked USD rally Sentiment-driven collapse in risk appetite EU default fears Rebalancing of positions and short-covering Gold returns used to cover losses Gold volatility is overstated Golds volatility rose less than S&P 500 volatility in H211 Period of rebalancing portfolios results in increased volatility Long term low correlation to equities Underpins status as a portfolio diversifier

Volatility ratio between S&P 500 and Gold (US$/oz)

Rebalancing portfolios in times of panic results in gold volatility

S&P more volatile

Gold more volatile

S&P 500 vs. gold volatility ratio

September 2011

Source: Bloomberg, World Gold Counsel. Computed using 63-day rolling volatilities on each of the assets.

18

Equities failing to keep pace with the gold price as investors focus on preservation of capital
Commentary: Dislocation between the valuation of gold equities and gold price performance Declining equity valuation multiples despite gold price strength

Historical EV / EBITDA (next twelve months) summary (1)

35.0x
AuRico Senior producers Intermediate producers Junior producers / developers Royalties 2 yr 5.4x 8.1x 9.4x 6.4x 14.2x Average (NTM EBITDA) (1) 1 yr 6-mo Current 5.1x 4.5x 4.9x 7.4x 6.8x 7.1x 8.1x 7.1x 7.2x 5.4x 4.8x 5.1x 14.0x 14.0x 14.0x

$2,500

30.0x

$2,000
Gold price (US$/oz)

25.0x
Declining gold equity multiples amidst gold price strength

20.0x

$1,500

EV / NTM EBITDA multiple

15.0x

$1,000

10.0x

$500
5.0x

Feb-07
Source: Factset.

Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12

AuRico Junior producers / developers

Senior producers Royalties

Intermediate producers Gold Price

(1) Next Twelve Months (NTM) EBITDA represents monthly time-weighted annual EBITDA estimates. Senior producers: Barrick, Newmont, Kinross, Newcrest, Goldcorp, AngloGold, Yamana. Intermediate producers: Gold Fields, Zijin, Eldorado, Randgold, Buenaventura, AEM, IAMGOLD, Harmony, Centerra, New Gold, Osisko, Alacer, African Barrick, Allied Nevada, Semafo, Alamos, European Goldfields, Perseus, Kirkland Lake, B2Gold, Medusa, Dundee Precious, High River, Aurizon. Junior producers / developers: Detour, Nevsun, Kingsgate, Colossus, Guyana, Rainy River, Argonaut, Archipelago, Jaguar, Torex, Lake Shore, Romarco, Golden Star, Chesapeake, Great Basin, Gryphon, ITH, Ampella, Timmins, Yukon-Nevada, Cluff, Kula, Victoria. Royalties: Franco-Nevada, Royal Gold.

19

Current Gold Playing Field

Market capitalization of gold companies
(US$MM)
What percentage of a stock's movement is explained by movements in the gold price? (R-squared) (1) AuRico 2011 2010
$50

Average Market Value: ~$28 billion $60

Barrick 0.11 0.91 0.23 0.77 0.71

Goldcorp 0.50 0.66 0.63 0.78 0.33

Newmont 0.51 0.71 0.75 0.68 0.69

Kinross 0.01 0.00 0.02 0.73 0.58

Yamana 0.74 0.28 0.81 0.74 0.09

Minefinders 0.53 0.00 0.60 0.67 0.02

Agnico 0.18 0.87 0.12 0.78 0.47

New Gold 0.69 0.89 0.65 0.57 0.43

Alamos 0.20 0.84 0.71 0.38 0.25

Franco-NV Royal Gold 0.90 0.74 0.32 0.56 NA 0.90 0.54 0.58 0.00 0.04

0.51 0.23 0.75 0.41 0.47

2009 2008 2007

$40

$30

$20

Average Market Value: ~$4 billion

$10

Average Market Value: ~$600 million

Average Market Value: ~$5Bn

Gold Fields Randgold Buenaventura (2) Eldorado IAMGOLD AEM Polymetal Harmony New Gold Centerra Osisko Allied NV Af. Barrick Detour Alacer AuRico Alamos (2) Euro. Gfds Gabriel Semafo Centamin B2Gold Minefinders Dundee Medusa Kirkland Lake Aurizon Barrick Goldcorp Newmont Newcrest AngloGold Yamana Kinross Kingsgate Torex Independ' ce Argonaut Nevsun Colossus Guyana Lake Shore Rainy River Romarco Archipelago Jaguar Golden Star ITH Gryphon Great Basin Chesapeake Timmins Allied Gold Yukon-NV Ampella Cluff Victoria Kula Franco-NV Royal Gold

The lack of quality gold discoveries of scale will likely lead to gold seniors looking to the intermediate sector to create a growth profile
Source: Note: (1) (2) FactSet. R2 explains how much percentage wise a stocks movement is determined by movements in the gold price. Based on share prices of primary listings. Not pro-forma for European Goldfields transaction.

20

Source: Note:

Goldcorp 13.4x 13.1x 10.5x

Senior

Commentary:

Newcrest Yamana Avg: 9.2x

Avg: 7.6x

EV / FY2012E EBITDA

Price / FY2012E Cash flow

Senior

Newmont Kinross 7.6x 7.3x 7.2x 5.5x 17.6x 15.1x 14.3x 13.5x 12.9x 12.5x 12.1x 10.4x 9.3x
Intermediate

Newcrest Goldcorp Yamana 11.0x 11.0x 8.3x

Barrick AngloGold Allied NV Medusa New Gold Randgold B2Gold Eldorado Alamos Semafo IAMGOLD
Intermediate

Barrick Newmont Kinross AngloGold 6.4x 6.3x 5.8x 4.6x 13.6x 12.9x 11.8x 10.9x 10.4x 9.6x 8.9x 8.7x 8.0x 7.8x 7.4x 7.3x 7.0x 6.9x 6.6x Medusa Allied NV New Gold Randgold Buenaventura B2Gold Eldorado Alamos Dundee Kirkland Semafo Alacer AEM Osisko Centerra

Relative Valuation of Gold and Silver Producers

FactSet. I/B/E/S estimates based on fiscal year end. *Tables provided by Credit Suisse.

Alacer AEM 9.2x 9.1x Avg: 9.7x 8.6x 8.5x 8.3x 8.1x 7.5x 7.3x 6.9x 6.1x 5.3x 4.9x 4.8x 15.5x 12.5x 10.4x 6.2x Kingsgate Nevsun Great Basin Allied Gold Golden Star Timmins S. Stand. 5.8x 5.3x 4.7x 4.5x 4.3x 4.2x 10.7x Avg: 7.3x
Junior

Avg: 7.9x

Dundee Buenaventura Centerra Osisko Harmony Aurizon Kirkland AuRico Af. Barrick Centamin Gold Fields Argonaut Lake Shore Cluff Jaguar

Harmony IAMGOLD AuRico Centamin Aurizon Af. Barrick Gold Fields Lake Shore Argonaut Jaguar Kingsgate Cluff Yukon-NV Great Basin Golden Star Timmins Allied Gold Nevsun
Silver

6.2x 5.9x 5.2x 4.6x 4.4x 4.1x 3.6x 14.0x 10.4x 5.8x

Seniors are not being afforded premium multiples relative to intermediates Royalties trade at a premium

Junior Silver Royalties

Avg: 5.6x

5.4x 4.9x 4.7x 4.5x 3.5x 3.1x 3.1x 2.2x

Avg: 5.8x

Avg: 8.1x

Hecla Hochshild Pan Am. Coeur Royal Gold Franco-NV

9.8x 7.9x 7.0x 5.1x 22.4x 18.1x

S. Stand. Hecla Hochshild Coeur Pan Am.

8.9x 7.5x 5.1x 4.4x 3.3x

Avg: 20.2x

Avg: 15.0x

Royalties

Royal Gold Franco-NV

16.9x 13.2x

21

Investors current views on gold equities

No more premiummore dividends
1

No more premium 1.0x NAV the new reality

2

Companies need to demonstrate a reason to hold equities over physical gold to regain premium. A desire to hold physical gold or ETF has led to compressed multiples With reduced multiples, investors preference for a dividend over reinvesting cash In the past, preference to reinvest at a premium to NAV Nominal dividends are attractive for investors

Returning cash to shareholders is a prevailing theme

Demand for disciplined M&A transactions in the gold sector

4

Majority of recent M&A transactions in the gold sector have not been well received Highlights challenge for value creation in the sector Growth through M&A alone is not attractive to investors Organic growth at competitive cash costs is key focus P/CF becoming a more relevant valuation metric (P/NAV remains predominant) i.e. shift to backward looking or near term future rather than Life of Mine valuations

Organic reserve growth at competitive cash costs

Gradual price to cash flow valuation shift

Preservation of capital is top of mind

Large established producers with a disciplined M&A track-record and dividends Physical bullion and ETFs

22

Investors Complaints about Gold Equities

1

Tired of Capex Blowouts

No longer willing to accept Companies forecasts on Capital Cost Estimates Prove it before you brag about it

Tired of Project Delays

Project delays are punished with share sell offs

Geographic risk is now evaluated more carefully

4

Financing for remote projects will be much more difficult

Country Risk evaluation is now much more critical

Equity issues may face buyer resistance compared to a few months ago

Reserve and Resource Estimation Risk

Enhanced regulatory scrutiny of Technical Reports, in some cases technical issues remain unresolved

Failure to meet guidance on Production and Cash Costs

Perhaps the biggest complaint is the Over Promise and Under Deliver

23

Miners Perspective for the future

Social Licence to Operate United Nations Declaration of Rights of Indigenous Peoples Free willing and informed consent Peru, Ecuador Nationalization and creeping nationalization Increased NSRs and golden shares Venezuela, Guyana, Ghana Canada First Nations Changing legislation Bill C 300
Capital Cost Blow outs and Schedule Management Financing Issues

Human Resource Challenges

An ageing work force
24

Conclusions Interesting times

Price of Gold likely to remain at current levels or higher for the next few years Global economic conditions are not likely to change dramatically for the better Gold will have a growing importance in its historic role as a Store of Value Gold companies that consistently deliver what they promise will be rewarded and those that dont will be punished Dividends are becoming increasingly important Social Licence to Operate is more critical than ever New Projects in Historic Districts are more attractive than Greenfields Kirkland Lake is well positioned for the future as it has Reserves and Resources Exploration Potential Stable Social, Political tradition Excellent infrastructure People and Businesses that are committed to gold mining
25

Outlook for the Gold Mining Industry

April 17, 2012