TSX:NMI August 2015 Exceptional Team, Solid Production Low Relative Valuation
Aug 18, 2015
2TSX:NMI
Cautionary StatementsThis presentation contains forward-looking information, including, but not limited to, guidance on estimated annual production and cash costs and information and expectations about the completion of the combination of Newmarket Gold Inc. (“Newmarket” or the “Company”)and Crocodile Gold Corp. (“Crocodile Gold”) and the offering and the intended participation of management and directors of Newmarket in the offering, the composition of the board of directors of resulting issuer and its senior executive team, future performance based oncurrent results and past production, expected cash costs and mineral resource estimates. This forward-looking information is not based on historical facts, but rather on current expectations and projections about future events and is subject to risks and uncertainties. These risksand uncertainties could cause Newmarket, Crocodile or the resulting issuer’s actual results to differ materially from the future results expressed or implied in this presentation. Such risks may include, without limitation: risks and uncertainties relating to the completion of thetransactions as described herein, the ability to successfully integrate operations and realize the anticipated benefits of the Crocodile Gold acquisition; risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards,unusual or unexpected geological formations, ground control problems and flooding; liabilities inherent in mine development and production; geological, mining and processing technical problems; risks associated with the estimation of mineral resources and reserves and thegeology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with Newmarket’s expectations; ability to obtain required mine licenses, mine permits and regulatory approvals required in connectionwith mining and mineral processing operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and exchange rates; various eventsthat could disrupt operations and/or the transportation of mineral products, including labour disputes, shortages or stoppages and severe weather conditions; the demand for and availability of rail, port and other transportation services; the ability to secure adequate financing,the risk that management and directors of Newmarket may not ultimately participate in the offering to the extent anticipated, and management's ability to anticipate and manage the foregoing factors and risks. The forward looking information contained in this document isbased on a number of assumptions including, but not limited to, the successful completion of the transaction on the terms as described herein; foreign currency rates; metal prices; estimation of mineral resources and reserves and the geology; grade, tonnage, dilution andmetallurgical and other characteristics of ore; production capabilities and cost estimates. Newmarket uses certain non-GAAP performance measures in this presentation. These performance measures have no meaning under IFRS and, therefore, amounts presented may not becomparable to similar data presented by other mining companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Operating cash costs per ounceof gold and all-in sustaining costs per ounce of gold (“AISC”) are non-GAAP measures that Newmarket uses as key performance measures to monitor performance and ability to generate cash flow. Management uses these statistics to assess how well Newmarket’s producingmines are performing compared to plan and to assess overall efficiency and effectiveness of the mining operations. Newmarket provides operating cash cost and AISC information as it is a key performance indicator required by users of its financial information in order to assessits profit potential and performance relative to its peers. The operating cash cost figure is calculated by deducting silver sales revenue as a by-product from operating expenses per the consolidated statement of operations, then dividing by the gold ounces sold during theapplicable period. Operating expenses include mine site operating costs such as mining, processing and administration as well as royalties, however excludes depletion and depreciation, share-based payments and rehabilitation costs. AISC reflects all of the expenditures that arerequired to produce an ounce of gold from current operations. While there is no standardized meaning of the measure across the industry, Newmarket’s definition conforms to the AISC definition as set out by the World Gold Council in its guidance dated June 27, 2013. TheWorld Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies. Newmarket believes that this measure will be useful to external users in assessing operating performance and the ability to generatefree cash flow from current operations. Newmarket defines AISC as the sum of operating cash costs (per above), sustaining capital (capital required to maintain current operations at existing levels), capital lease repayments, corporate general and administrative expenses, in-mine exploration expenses and rehabilitation accretion and amortization related to current operations. AISC excludes capital expenditures for significant improvements at existing operations deemed to be expansionary in nature, exploration and evaluation related to growthprojects, rehabilitation accretion and amortization not related to current operations, financing costs, debt repayments, share-based compensation not related to operations, and taxes. The information presented herein was approved by management of Newmarket on May 11,2015. For further details of other risks and uncertainties see “Risk Factors” and “Cautionary Statements” in each of Newmarket’s Management’s Discussion and Analysis and Crocodile Gold’s Annual Information Form.
Note: All dollar amounts are in USD dollars unless otherwise denoted. The disclosure in this presentation uses mineral reserve and mineral resource classification terms that comply with reporting standards in Canada, and certain mineral resource estimates are made inaccordance with Canadian National Instrument 43-101—Standards of Disclosure for Mineral Projects (“NI 43-101”). NI 43-101 establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differsignificantly from the mineral reserve disclosure requirements of the United States Securities Exchange Commission (the “SEC”) set forth in Industry Guide 7. Consequently, information regarding mineralization contained in this presentation is not comparable to similarinformation that would generally be disclosed by U.S. companies in accordance with the rules of the SEC. In particular, the SEC’s Industry Guide 7 applies different standards in order to classify mineralization as a reserve. As a result, the definitions of proven and probablereserves used in NI 43-101 differ from the definitions used by the SEC in Industry Guide 7. Under SEC standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced orextracted at the time the reserve determination is made. Among other things, all necessary permits would be required to be in hand or issuance imminent in order to classify mineralized material as reserves under the SEC standards. Accordingly, mineral reserve estimatescontained in this presentation may not qualify as “reserves” under SEC standards. In addition, this presentation uses the terms “measured mineral resources,” “indicated mineral resources” and “inferred mineral resources” to comply with the reporting standards in Canada. TheSEC does not recognize mineral resources and U.S. companies are generally not permitted to disclose mineral resources of any category in documents they file with the SEC. Investors are specifically cautioned not to assume that any part or all of the mineral deposits in thesecategories will ever be converted into mineral reserves as defined in NI 43-101 or Industry Guide 7. Further, “inferred mineral resources” have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, investorsare also cautioned not to assume that all or any part of an inferred resource exists. It cannot be assumed that all or any part of “measured mineral resources,” “indicated mineral resources,” or “inferred mineral resources” will ever be upgraded to a higher category. Investors arecautioned not to assume that any part of the reported “measured mineral resources,” “indicated mineral resources,” or “inferred mineral resources” in this presentation is economically or legally mineable. For the above reasons, information contained in this presentationcontaining descriptions of our mineral reserve and mineral resource estimates is not comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC.
All scientific and technical information relating to the Cosmo Gold Mine is based on and derived from the NI 43-101 report prepared for Crocodile Gold entitled “Report on the Mineral Resources and Mineral Reserves of the Cosmo Gold Project”, dated effective December 31,2014. All scientific and technical information relating to the Fosterville Gold Mine is based on and derived from the NI 43-101 report prepared for Crocodile Gold entitled Report on the Mineral Resources and Mineral Reserves of the Fosterville Gold Mine Victoria, Australia”,dated effective December 31, 2014. All scientific and technical information relating to the Stawell Gold Mine is based on and derived from the NI 43-101 report prepared for Crocodile Gold entitled “Report on the Mineral Resources and Mineral Reserves of the Stawell Gold Minein Victoria, Australia”, dated effective December 31, 2014. All scientific and technical information relating to the Big Hill Enhanced Development Project is based on and derived from the NI 43-101 report prepared for Crocodile Gold entitled “Big Hill Development Project atStawell Gold Mine – Mineral Resources & Reserves”, dated effective March 31, 2014. All of the above mentioned technical reports were prepared by “qualified persons” within the meaning of NI 43-101. The information contained herein is subject to all of the assumptions,qualifications and procedures set out in each of the technical reports and reference should be made to the full details of the technical reports which have been filed with the applicable regulatory authorities and is available on Crocodile Gold’s profile at www.sedar.com. MarkEdwards, MAusIMM (CP), MAIG, General Manager Exploration and Business Development for Crocodile, is a "qualified person" as such term is defined in NI 43-101 and has reviewed and approved the technical information and data included in this presentation and has verifiedthat no limitations were imposed on his verification process. See Crocodile Gold’s March 31, 2015 news release for further details with respect to the mineral resource information contained in this presentation.
This presentation does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have notbeen and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act andapplicable state securities laws or an exemption from such registration is available. Certain information contained on this presentation with respect to other companies and their business and operation has been obtained or quoted from publicly available sources, such ascontinuous disclosure documents, independent publications, media articles, third party websites (collectively, the “Publications”). In certain cases, these sources make no representations as to the reliability of the information they publish. Further, the analyses and opinionsreflected in these Publications are subject to a series of assumptions about future events. There are a number of factors that can cause the results to differ materially from those described in these publications. None of the Company or its representatives independently verifiedthe accuracy or completeness of the information contained in the Publications or assume any responsibility for the completeness or accuracy of the information derived from these Publications.
3TSX:NMI
Newmarket Gold Advantage
Experienced Management Team Experienced team with track record of superior value creation
Proven capital markets expertise
Demonstrated operations excellence
Board and Management aligned with shareholders ($C12 Million Invested, 10%
issued and outstanding)
Strong Operating Assets (Recent Discovery Success)
Free cash flow generating for the past 8 quarters
Cash costs and AISC decreasing, gold grade increasing
Large mineral resource with exploration upside
Three new mine site discoveries (Cosmo, Stawell & Fosterville)
Robust AUD$ Denominated Gold Price Gold now trading between $AUD $1,450/oz – $1,500/oz
Execution of a Gold Focused Consolidation Strategy Growth through accretive transactions
Companies trading at low valuation multiples
Newmarket’s vision is to become the next
intermediate gold producer with
annual production of 400-500kozs
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Newmarket - Key Investment Metrics
1. (All figures are in United States (“U.S.”) dollars, unless stated otherwise) 2. Ev/oz Production (2015E) for Newmarket calculated using high end of guidance 220,000 ounces
3. Source: FactSet, Bloomberg, company disclosure, available equity research, Newmarket based on trailing twelve months cash flow
First Half 2015 – Ending June 30, 20151
Record production 115,674
Cash costs $682/oz
All-In Sustaining costs $985/oz
Revenue $138.9 Million
Operating cash flow $54.6 Million
Net income $27.8 Million
Earnings per share $0.24
Cash and gold bullion balance (at Fair Market Value) $38.8 Million
Ev/oz production (2015E) C$454/oz2
Ev/oz production (2015E) peer group C$1,990/oz2
Price / Consensus 2015E CFPS (ratio) 1.0x3
Price / Consensus 2015E CFPS (ratio) peer group 6.0x3
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Capitalization and Ownership
Cash Balance ($M) US$39
Working Capital (incl. Cash)($M) US$25
Convertible Debt ($M) C$34.5
1. C$34.5M of 8% convertible unsecured debentures due April 30, 2018 and convertible at ~C$1.02/share for up to 33.9 million shares of Newmarket2. Excludes 11,438,820 warrants which have a strike price of $9.16
Raymond Threlkeld Chairman
Douglas Forster President, CEO & Director
Blayne Johnson Executive VP, Director
Lukas Lundin Director
Randall Oliphant Director
Rodney Lamond Chief Operating Officer
Robert Dufour Chief Financial Officer
Robert Getz Director
Kevin Conboy Director
Balance SheetFounders, Board & Senior Management
Advisors
Ian Telfer Capital Markets
Michael Vitton Capital Markets
Mike Vint Technical Advisor
Issued and Outstanding (M) 134.2
Options (M) 13.1
Preferred Share Units (M) 4.0
Warrants2 9.9
Fully Diluted (Excluding Debenture) (M)
161.2
Recent Share Price (Jul 30/15 Price Close $1.00)
C$1.00
Market Capitalization (M) C$134
Luxor Capital Group LP 42%
Management/Board (basic) 10%
Capital Structure & Ownership
The founders have created over $30 billion in market cap value
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Australia: World’s 2nd Largest Gold Producer
Australia recognized as a stable and low risk jurisdiction with access to infrastructure and skills
3 low cost underground gold mines operated by Newmarket
4,000km2 of prospective and undeveloped
landholdings
Production guidance 220kozs at cash costs of US$780/oz and AISC of US$1,020 for 2015
Currently no analyst coverage and limited institutional ownership
The beginning of a new chapter, (July 10, 2015 merger closed)
S
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Australian Gold Producers -A “Safe Haven” Amongst the Chaos
* July 8, 2015 RBC Capital Markets Report
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1000
1250
1500
1750
2000
Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15
GOLD US$ (LHS) Gold A$ (LHS) AUD vs. USD
Go
ld P
rice
AU
D$
vs. USD
$
USD Gold Price vs. AUD Gold Price and FX
Source: RBC July 8, 2015
AUD$ FX has declined 16.6% from 2014 to 2015
H1 2015 average realized AUD$ Gold Price $1,522
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$400
$800
$1,200
$1,600
$2,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Go
ld S
po
t (i
n A
UD
$)
Historical Gold Price (in AUD$)
Gold Has Remained Strong in AUD Terms
Source: FactSet, Bloomberg, company disclosure, available equity research
Gold currently trading above AUD$1,500/oz
Current Spot Gold:AUD$1,495/oz
(Aug 10, 2015)
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$1,680
$1,386
$1,236
AISCGuidance$1,020 –$1,100
$985
$1,167
$1,027
$905
OCCGuidance
$780 –$860
$682
2012 2013 2014 2015 Cost Guidance 2015 YTD
Demonstrated Ability to Decrease Costs
Operating cash costs have decreased 41% since 2012
All-in sustaining costs have decreased 44% since 2012
Ore grade and gold recoveries increasing
Further cost reductions expected in 2015 and beyond
H1 cash costs of US$682/oz and AISC of US$985/oz, significantly below guidance
Management expects continued optimization efforts to lead to further declines in operating costs and AISC
All-in sustaining cash costs per oz*
Operating cash costs per oz**
*See Non-IFRS Disclosures on page 30 of this presentation. **All-In Sustaining cash costs per ounce (“AISC”) includes Corporate General and Administrative Expenses.
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12,459
18,184 18,232
25,281
27,486 27,100
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15
Strong Operating Cash Flows
Newmarket generated operating cash flow of $98M in the last 4 quarters including $27.1M in the last quarter
Australian dollar cost centres are benefiting
AUD:USD averaged $0.90 in 2014 and is approximately $0.74
Ongoing optimization to also lead to improved cash flows
Near-term opportunities identified to enhance cash flow generation
Terminated net free cash flow sharing agreement with AuRico earlier in Q1/15
Strong Cash Flow Generation
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Opportunity Comparison
Underground Mines Young Old
Production (2015 Guidance)2 220,000/oz 87,000-180,000/oz
All in Sustaining Costs (“AISC”)3 US$985/oz US$1,120/oz
Cash Costs2 US$682/oz US$770/oz
G&A Costs US$27/oz US$85/oz
Tax Rates 0% due to existing tax shields 26.5% - 30% + mining tax
Foreign Exchange 0.74 0.79
Reserve Life Index 4.3 years 4.7 years
P/CF (LTM) 1.0x 6.0x
EV/2015E Production $454/oz $1,990/oz
Newmarket Gold Canada, Abitibi(Kirkland, Lake Shore,
Richmont and Black Fox1)
(Fosterville, Cosmo, Stawell)
1. G&A costs and trading multiples for Primero2. Newmarket high end of 2015 guidance and (RIC 87-95) (KGI 153-157) (LSG 180) (B fox 80) from corporate disclosure 3. As of most recent reported quarter (H1/15 for Newmarket)
Newmarket GoldCurrent Market Capitalization
Peer Group AvgCurrent Market Capitalization
C$134 million
C$415 millionNewmarket Value Gap
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935
3,819
2,024
2P M&I (excl.) Inferred
Fosterville Cosmo Stawell Maud Creek Other NT
Mineral reserves underpinned by large 4.8 Mozs M&I resource base with successful track record of conversion
Fosterville operation supported by a large M&I resource containing in excess of 2.1Mozs
Significant exploration potential at the Cosmo Gold mine
Established costs to convert resources into reserves
AUD$45/oz to convert from inferred to M&I resources
AUD$35/oz to convert from M&I resources to Proven & Probable reserves
Exploration budget will be a function of gold price and costs required to expand life of assets
Large Mineral Resource Inventory
AUD$45/ozAUD$35/oz
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25,359 26,039 25,786
22,198
28,313 29,045 29,135 29,648
Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15
Grades have been increasing at depth at Phoenix
Significant resource base of 2.1mozs gold
New high grade Eagle Fault discovery
9.15m @ 386 g/t Au & 7.85 m @ 268 g/t Au.
Newmarket’s Flagship Mine with Substantial Upside Potential
Operation Profile 2014A 2015E H1/15A
Gold Production (kozs) 105.3 100-105 58,783
Gold grade (g/t) 4.56 n/a 5.84
Recovery (%) 86.4% n/a 89.1%
Cash Costs (US$/oz) $737 $670-$750 $537/oz
AISC (US$/oz) $1,186 n/a1 $895/oz
Increasing Production Profile
1. Corporate guidance is US$1,020 – US$1,100/oz for the year 2015 2. Inclusive of reserves
Fosterville Mine (100-105kozs production)
Go
ld P
rod
uct
ion
oz
(30ft @ 13.5 oz per ton & 25ft @ 9.5 oz per ton)
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Fosterville Mine - Significant Opportunity at DepthDrill results at the Phoenix system returned record high grade gold intercepts
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21,316 21,915
17,841
21,845
17,94220,112 20,612
17,073
Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15
Optimization ongoing (grade, recovery, costs)
Strong mineral potential at depth
New discovery - Western lode gold zone
Newmarket’s Newest Producing Mine
Operation Profile 2014A 2015E H1/15A
Gold Production (kozs) 77.7 75-85 37,685
Gold grade (g/t) 3.14 n/a 3.33
Recovery (%) 88.9% n/a 91.9%
Cash Costs (US$/oz) $1,000 $850-$930 $814/oz
AISC (US$/oz) $1,263 n/a1 $1,037/oz
Steady Production Profile
1. Corporate guidance is US$1,020 – US$1,100/oz for the year 2015 2. Inclusive of reserves
Cosmo Mine (75-85kozs production)
Cosmo Gold Mine
Gold
Pro
duction o
z
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Cosmo Mine Exploration (Expansion Opportunity)
Cosmo’s Underground Gold Mine drill intercepts and New Western Lodes Highlight intercepts include:
Western Lodes 7.42 g/t gold over 4.3m, 6.59 g/t gold over 6.4m (potential for identifying grades and widths amenable for underground mining and in close proximity to existing infrastructure)
Cosmos Inner Dolerite 5.33 g/t gold over 7.54m
Cosmos central internal metasediments6.79 g/t gold over 6.15m
Located only 160m away from current development/infrastructure
Drill results at Cosmo have identified resource expansion potential
Discovery
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8,531
10,322 9,956 9,981 9,654 9,639 9,9299,277
Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15
Near surface, open pit projects: Big Hill, Brummigans
Underground potential: Wonga target
New discovery at Aurora B target
A Mature Operation with Potential to Extend Mine Life
Operation Profile 2014A 2015E H1/15A
Gold Production (kozs) 39.1 ~30 19,207
Gold grade (g/t) 1.67 n/a 1.66
Recovery (%) 78.8% n/a 81.7%
Cash Costs (US$/oz) $1,151 $945-$1,025 $884/oz
AISC (US$/oz) $1,193 n/a1 $988/oz
Upside Potential from Near-mine Targets
1. Corporate guidance is US$1,020 – US$1,100/oz for the year 2015 2. Inclusive of reserves
Stawell Mine (~30kozs production)
Gold
Pro
duction o
z
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Stawell Mine Exploration (Expansion Opportunity)
Past Production of 2.3
Million ounces Gold
* Announced drill results July 22, 2015 from initial two drill holes into East Flank (located less than 500 from West Flank and existing under ground infrastructure
Aurora A – Significant historic drill intercept includes: 13.7 g/t gold over 5.45 metres
Aurora B – Significant new discovery: 7.06 g/t gold over 17.80 metres, drilling on-going
East Flank (Aurora B) DISCOVERY* drill hole 7.06 g/t Gold over 17.80 metres
Brummigans
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Organic Growth Opportunities
• Eastern Lodes down plunge
• Western Lodes Discovery• Maud Creek (800kozs)• Large land package• Under-utilized mill
• Big Hill (130kozs)• Brummigans• Aurora A & B Discovery• 7.06 g/t gold over 17.80m
(MD6339)
Fosterville Mine
• 3 new fault systems with visible gold
• Increasing grade at depth• Eagle Fault Discovery • 386g/t over 9.15m (UDH
1238)
100-105kozs 75-85kozs ~30kozs
Current operations support 200-220kozs of annual production
Cosmo & Northern Territory
Stawell Mine
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Now is the right time for gold consolidation
Companies are currently trading at or near 5-10 year lows
Goals: to grow to 400,000 ozs of production first to reach “institutional critical mass” by consolidating a number of 100,000 – 200,000 ozs producers
Look for assets with a short reserve life index with large mineral resources and exploration potential
Acquire high quality “stranded” development ounces that will upgrade the overall quality of our portfolio
$10-20 development oz versus $2,000 production oz
Target jurisdictions: Australia, Canada, United States and mining friendly Central and South America
Leverage cash flow, capital & operational expertise to build out acquisitions and unlock value
Result: lower AISC, lower cash costs, higher average mine life of our entire portfolio
To build a profitable gold company within the context of the current gold price environment
Accretive Transactions with result in superior share price performance for Newmarket
M&A: A Disciplined Strategy For Growth
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$20
$34
$47
$101
$124 $137
Newmarket Alamos Richmont Kirkland Lake Primero Lake Shore
Average:
$89
$454
$1,132
$1,987 $2,117
$2,265 $2,310
Newmarket Richmont Alamos Primero Lake Shore Kirkland Lake
Average:
$1,962
Significantly undervaluedrelative to peers
Opportunity for investors torealize meaningful returns oninvestment
Undervalued vs. Peer Group
Price / Consensus 2015E CFPS (ratio)1
EV / M&I Au (ratio)EV / 2015E Prod. (ratio)
Source: FactSet, Bloomberg, company disclosure, available equity research
1. Newmarket based on trailing twelve months cash flow
8.1x
5.4x 4.9x 4.8x
3.6x
1.0x
Richmont Alamos Lake Shore Primero Kirkland Lake Newmarket
Average:
5.4x
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Aligned with shareholders
Maintain low G&A on a per oz basis: currently US$27/oz vs peers at US$85/oz
Strong share ownership:
C$12 million currently invested
10% basic I/O
C$14 million, 12.5% FDIM (July 31, 2015)
Industry Accepted PSU Vesting Plan:
Can acquire up to 3% of the issued and outstanding shares
○ 1/3 vest when the price of Newmarket is C$2.25 or greater
○ 1/3 vest when the price is C$3.00 or greater
○ 1/3 vest when the price is C$3.75 or greater
Newmarket Team Aligned With Shareholders
If share price thresholds not met, PSUs expire worthless after 3 years
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PeopleProven management team $30 billion of value creationDemonstrated operational excellence
Assets
Significantly undervalued portfolio of well-established producing mines with a strong track record of free cash flow generation
Increasing grade & gold recoveries
Declining unit costs, cash costs and AISC
Gold Focused Growth Strategy
Newmarket’s vision is to become the next intermediate gold producer with annual production of 400-500kozs
Insiders Aligned with
Shareholders
Newmarket Gold Advantage
C$14 million, 12.5% ownership on a FDIM (July 31, 2015)
PSU’s fully vest @ $3.75 (within 3 years or expire worthless)
DiscoveriesThree Significant discoveries in Q2, 2015Fosterville 9.15m @ 386 g/t Au & 7.85 m @ 268 g/t Au.(30ft grading 13.5 oz per ton and 25ft grading 9.5 oz per ton)
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Proven Track Record of Success
“Newmarket Gold Inc.’s mission is to deliver exceptional shareholder value through a disciplined approach to acquiring quality, gold production assets and outstanding development
opportunities in politically stable jurisdictions worldwide”
Public Sold
Principals have founded, managed and sold mining companies with a combined market value of approximately $30 billion
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Appendix: Mineral Reserves and Resources
Inferred Resources Tonnes (Mt) Grade Au (g/t) Au (kozs)
Fosterville 5.8 3.72 699
Cosmo 1.0 2.72 84
Stawell 0.8 3.07 77
Burnside 6.9 1.47 323
Maud Creek 4.2 2.55 344
Union Reefs 4.3 2.23 305
Pine Creek 2.5 2.34 191
Inferred Resources 31.3 2.48 2,024
M&I Resources (incl.) Tonnes (Mt) Grade Au (g/t) Au (kozs)
Fosterville 16.6 4.03 2,151
Cosmo 5.0 3.35 539
Stawell 4.2 1.80 243
Burnside 7.5 1.38 335
Maud Creek 7.7 3.50 871
Union Reefs 3.0 2.43 236
Pine Creek 8.4 1.41 379
M&I Resources (incl.) 52.5 2.82 4,754
Source: Crocodile Gold March 31, 2015 press release announcing 2014 year-end mineral reserves and mineral resources
2P Reserves Tonnes (Mt) Grade Au (g/t) Au (kozs)
Fosterville 1.5 6.55 308
Cosmo 4.2 3.57 148
Stawell 0.8 1.50 181
Burnside 0.2 1.93 10
Maud Creek 1.1 5.40 184
Union Reefs 0.3 4.40 42
Pine Creek 1.3 1.55 62
2P Reserves 9.2 3.15 935
Significant M&I resources of
4.8 Mozs with 60% of resources in “footprint”of our three operating mines.
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Appendix: Cosmo Mine Western Lodes
A number of drill holes have now penetrated the Western Lodes Target.
Drill results for the Cosmo Western Lodes which are outside of the current mine plan include 7.42 g/t gold over 4.3 m (estimated true width 2.85 m) and 6.59 g/t gold over 6.4 m (estimate true width 1.65 m).
Work continues to fully define the potential of the Western Lodes
Target is located only 160 m from current development and has the potential to increase resources at Cosmo and expand the current mine plan to alternative mining areas.
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Appendix: Stawell Aurora B East Flank New discovery of Aurora B East Flank
mineralization is a significant event in the long history of the Stawell mine.
West Flank at Stawell has produced 2.3 million oz gold whereas the East Flank, where the Aurora B discovery has been made has no recorded production.
Drilling on the Aurora B discovery returned high-grade intercepts containing visible gold including: 7.06 g/t gold over 17.80 m (estimate true width 8.3 m).
Additional drilling on this new discovery is on-going.
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Non-IFRS and Additional InformationNon-IFRS MeasuresCrocodile Gold believes that investors use certain indicators to assess gold mining companies. The indicators are intended to provide additional information and should not beconsidered in isolation or as a substitute for measures of performance in accordance with the International Financial Reporting Standards.“Operational Cash Costs per Ounce” is a non-IFRS performance measure which could provide an indication of the mining and processing efficiency at the operations.The Company calculates operating cash costs per ounce by deducting silver sales revenue as a by-product from operating expenses per the consolidated statement ofoperations, then dividing by the gold ounces sold during the applicable period. Operating expenses include mine site operating costs such as mining, processing andadministration as well as royalties, however excludes depletion and depreciation, share-based payments and rehabilitation costs. There are variations in the method ofcomputation of “operational cash costs per ounce” as determined by the Company compared with other mining companies. For more detail on the operational cash costs perounce determination for Crocodile Gold, please visit www.sedar.com or www.newmarketgoldinc.com and review the latest Annual Financial Statements issued on March 19,2014.
“All-In Sustaining Costs per Ounce of Gold (“AISC”) Effective December 31, 2013, the Company has adopted an all-in sustaining cost (“AISC”) performance measure that reflectsall of the expenditures that are required to produce an ounce of gold from current operations. While there is no standardized meaning of the measure across the industry, theCompany’s definition conforms to the AISC definition as set out by the World Gold Council in its guidance dated June 27, 2013. The World Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies. The Company believes that this measure will be useful to external users inassessing operating performance and the ability to generate free cash flow from current operations. The Company defines AISC as the sum of operating cash costs (per above),sustaining capital (capital required to maintain current operations at existing levels), capital lease repayments, corporate general and administrative expenses, mine explorationwithin the known resources and rehabilitation accretion and amortization related to current operations. AISC excludes capital expenditures for significant improvements atexisting operations deemed to be expansionary in nature, exploration and evaluation related to growth projects, rehabilitation accretion and amortization not related to currentoperations, financing costs, debt repayments, share-based compensation not related to operations, and taxes.
Additional InformationNotes for Page 25: For information regarding mineral resource and reserve estimates, including parameters used to generate the estimates and depletion, please see the technical reports titled: NI43-101 TECHNICAL REPORT FOSTERVILLE GOLD MINE, VICTORIA, AUSTRALIA PREPARED FOR CROCODILE GOLD CORP dated March 31, 2015 and; NI43-101 TECHNICAL REPORT – BIG HILL ENHANCED DEVELOPMENT PROJECT AT STAWELL GOLD MINE MINERAL RESOURCES & RESERVES PREPARED FOR CROCODILE GOLD CORP dated June 6, 2014. For the Northern Territory Mineral Reserve Estimates please refer to the technical reports titled: REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE COSMO DEEPS GOLD PROJECT dated March 31, 2015; NI43-101 TECHNICAL REPORT STAWELL GOLD MINE, VICTORIA, AUSTRALIA PREPARED FOR CROCODILE GOLD CORP dated March 31, 2015; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE UNION REEFS GOLD PROJECT dated December 31, 2012; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE PINE CREEK GOLD PROJECT dated December 31, 2012; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE MAUD CREEK GOLD PROJECT dated December 31, 2012 and; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE BURNSIDE GOLD AND BASE METAL PROJECT dated December 12, 2013. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Qualified PersonMark Edwards, MAusIMM (CP), MAIG, General Manager, Exploration, Newmarket Gold, is a "qualified person" as such term is defined in National Instrument 43-101 and hasreviewed and approved the technical information and data included in this presentation.
Douglas ForsterPresident & CEO, Director
T: 604-559-8040E: [email protected]
www.newmarketgoldinc.com
Contact Us
Ryan KingVice President, Corporate Communications
T: 778-998-3700E: [email protected]
Laura LeporeDirector, Investor Relations
T: 416-728-3707E: [email protected]
TSX:NMI