DPM CORPORATE PRESENTATION€¦ · This presentation contains “forward looking information”or "forward looking statements" that involve a number of risks and uncertainties. Forward

Chelopech Mine, Bulgaria

DPM CORPORATE PRESENTATION

August 2016

TSX:DPM 2

FORWARD LOOKING STATEMENTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

forward looking statements.

TSX:DPM 3

DPM’S GLOBAL PORTFOLIO OF ASSETS

Avala

Serbia

100%

Tsumeb Smelter

Namibia

100%

2016 Adjusted EBITDA

Generation (3)(5) 2016 Asset Diversification(2)

Smelter

35%Gold

45%

Copper

19%

Ag 1%

Tsumeb

25%

Chelopech

75%

Unique Assets With Commodity & Geographic Diversity

2016 Revenue Diversification (1)

Bulgaria

50%Namibia

45%

Canada

5%

Operating assets

Development asset

Exploration assets

Chelopech Mine

Bulgaria

100%

Sabina

Canada

11%

Krumovgrad Gold Project

Bulgaria

100%

1,2,3,5 See footnotes contained in Appendix on slide 32

TSX:DPM 4

DPM’S VISION AND STRATEGY

Optimize Portfolio Growth Innovation

Grow production and

margins through operational

excellence and high return,

modest capital investments

Maintain / extend life of

mines through near mine

exploration programs

A progressive gold mining company that unlocks and delivers superior value

through innovation and strong partnerships with stakeholders

Build a pipeline of future

growth opportunities

Acquire undervalued

assets and leverage

expertise to unlock value

Wi-Fi enabled UG mine

Real-time operational

management

Big data analytics to

optimize performance and

allow for faster better

decision making

Maintain Financial Strength and Flexibility


TSX:DPM 6

CHELOPECH – A WORLD CLASS, LOW COST MINE

Recent Achievements

• Achieved capacity increase to 2M tpy in 2012

• Underpinned by underground wireless

technology & partnerships with key vendors

• DPM operating practices to take advantage of

near real-time information

• Consistent and reliable performer

Building on that Success

• Increasing Mineral Reserves and Resources,

including recently announced increase in Resources

(15% including Reserves and 25% excluding

Reserves)

• Moving to 2.2M tpy for 2016 after debottlenecking of

mining and milling activities

• Working on Step-Change projects to evaluate mining

at 2.5M tpy

• Assessing the options to release mill bottlenecks to

achieve 2.5M tpy

• Aggressively exploring mine upper levels to bring

resource increases into mine plans and allow an

increase in mined tonnage while maintaining mine life

1.09

1.31

1.812.03 2.05 2.04

2.0-2.25

2010 2011 2012 2013 2014 2015 2016F

Ore Mined (mt)

(4)

2006 2015

Ore Mined / Reserves (mt)

21.5 21.5

14.1

56 55

46

40 4036 32-36

2010 2011 2012 2013 2014 2015 2016F

Cash Cost / tonne of ore processed (US$/t)(3)

2010 2011 2012 2013 2014 2016F(4)2015

Total ore

mined to date

Ore Reserve

3,4 See footnotes contained in Appendix on slide 32

TSX:DPM 7

MINERAL RESOURCES AND RESERVES UPDATE

Comparison of MRE as at December 31, 2015 with MRE as at December 31, 2014

Mineral Resources exclude all blocks already classified as Mineral Reserves

Resource

Category

2015

MTonnes

2014

MTonnes

Grades % Difference

2015 Cu2014

Cu

2015

Au2014 Au

Tonnes %

diff

Cu

% diff

Au

% diff

(%) (%) (g/t) (g/t)

Total M+I 14.2 11.3 1.06 1.13 3.37 3.58 25.34% -6.44% -5.90%

Inferred 2.8 8.3 0.82 0.91 2.44 2.66 -66.41% -10.07% -8.10%

Chelopech Ore Reserves as at December 31, 2015

Grades

Classification MTonnesGold

(g/t)

Silver

(g/t)

Copper

(%)

Proven 11.88 3.06 7.89 1.02

Probable 9.64 3.29 6.08 0.84

Total Proven and Probable 21.51 3.16 7.08 0.94

The Mineral Resource update was dominated by the reclassification of 4.2 Mt of resources above 410 level from

inferred to indicated. This increase was 15% of resources inclusive of reserves and 25% excluding reserves.

The Mineral Reserve update is largely in line with depletion, partially offset by increases in Mineral Reserves

for blocks 19, 103, 151, 149 and 149 South as a result of infill drilling in 2015.

TSX:DPM 8

CHELOPECH – HOW CROWN PILLAR MINING

OPENED FORMERLY UNMINEABLE RESOURCESO

ld M

inin

g M

eth

od

Ne

w M

inin

g M

eth

od

Transition Zone(Crown Pillar)

Cave

zone

Crown Pillar

Backfilled Open Stopes

Ore t Cu, % Au, g/t Cu , t Au, Oz

531 671 2.36 4.44 12 526 75 897

Cave rock

• The 150 orebody crown pillar was successfully first mined in 2013 following extraction

design with risk mitigation

• To date 5 panels have been successfully removed with refinements based on experience

• Mining is set to continue until 2020 on block 150 crown pillar

• Additional opportunity exists at the 103 and 19 blocks and the methodology will be

developed to stabilize old cave zones to extract associated satellite resources

TSX:DPM 9

CHELOPECH – CROWN PILLAR EXTRACTION

CAVE ROCK GROUTING AND REINFORCEMENT LONG HOLE DRILLING

OPEN STOPE BACK FILL

Typical Performance

• Ore 27,810t

• Cu 2.12 %

• Au 3.41 g/t

• Losses 6 %

• Dilution 4.8 %

TSX:DPM 10

CHELOPECH – MOVING CAVE ZONE RESOURCES

INTO MINE PLANS

2015 Drilling

• A total of 11,720m was drilled in 2015 in Blocks 19 and

103

2016 Plans

• A total of 28,000m is planned to be drilled in 2016

Key targets:

• 7,000m in Block 19

• 7,000m in Block 150

• 4,000m adjacent to Block 150

• 5,000m between Blocks 8 and 10

• Target: start to move these resources into mine plans

in early 2017

• The total resource development drilling planned for

2016 is 44,000m

TSX:DPM 11

CHELOPECH – MORE OPPORTUNITIES TO ADD VALUE

Step-Change activity to evaluate increasing mine production to 2.5 mtpy

utilizing debottlenecked existing infrastructure

• Increase mining intensity from 1050t/d/stope, targeting 3,000t/d/stope with revised

stope designs and primary mover tests in 2016

• Release SAG mill critical size to reduce power draw or increase capacity

Further progress being made on cost savings and productivity improvements

(1)

Häggloader 10 HR-B

TSX:DPM 12

CHELOPECH – BROWNFIELDS EXPLORATION UPSIDE

(2)

(3),(4)

HIGHLIGHTS

• New geological model – orebodies are hosted in a diatreme that is part of a multi-phase

intrusive complex

• System is open and untested to the east and southeast

• Exploration focussed on target areas east and southeast of the 10 and 103 orebodies

• Brevene area – licence expected to be granted this year, followed by 3,500m drill program


TSX:DPM 14

TSUMEB: SMELTING PERFORMANCE

198 196

200-220

320-370

120

180

159152

370

312

341

420

479

394409

380-425

380

310

275265

2010 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F

• Completed major capex program to upgrade facility

to global environmental standards and invested to

debottleneck facility to support increased production

of 240K-265K tpy

• Moved from two primary furnaces to one in

Q3 2013, largely to manage occupational

exposure

• Decommissioning of reverb furnace

significantly curbed emissions but

exacerbated in-process inventories

• Construction nearing completion after 4

years where some process interference was

experienced

• Acid plant successfully commissioned and

reached commercial production in October

2015

• Completion of the copper converters is

expected to debottleneck production, reduce

inventories and improve EBITDA

• EBITDA of $8.7M in 2015 came largely from Q4

2015 confirming the smelter potential to be a major

contributor to DPM

• Secured supply of third party feed to fill added

capacity and entered LT sales contracts for all acid

produced

Third Party

con supplied

to smelter

(000s)

Chelopech

concentrate

supplied to

smelter

(000s)

Cash cost per

tonne of

concentrate

smelted (net of by

product credits)(3)

220-

250

265-

320

Anticipated

future capacity


(4) (4) (4)(4)(4)

Key Transformative Achievements

TSX:DPM 15

TSUMEB – POISED TO GENERATE SIGNIFICANT EBITDA

• The two new larger copper converters, together with their associated off-gas system and tie-ins to the acid

plant were commissioned in the first quarter of 2016 and performed as expected during Q2 2016

• The acid plant operated as planned in the first six months of 2016

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

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

Converter installation

Near Term Priorities

3

18.5

8.6

2011 2014 2015

26

63

140130

44

24-28

2011 2012 2013 2014 2015 2016F

Total Capital Expenditures (US$M)

20122013(4)

Smelter Adjusted EBITDA (US$M)(5)


Copper Converter Offgas Scrubbing Systems

(2.5) (7)

TSX:DPM 16

OUTLOOK FOR COMPLEX CONCENTRATES

Mines In Operation Annual Tonnage As (%)

Chelopech 100,000 5.5%

South America(6) 150,000 – 250,000 4.0% - 8.0%

Blend 30,000 – 50,000 5.5% - 7.0%

TOTAL 280,000-400,000

Not in Production Annual Tonnage As (%)

South America(6) 80,000 6.0+%

Rest of the world 100,000 – 150,000 5.0% - 10%

TOTAL 180,000-230,000

6 See footnotes contained in Appendix on slide 32


TSX:DPM 18

BUSINESS OUTLOOK - KRUMOVGRAD


Production and Operating Costs

Annual gold production (7) 85,700 oz

Annual silver production (7) 38,700 oz

First concentrate production H2 2018

LOM (7) 8 years

Total Annual Operating Costs / T ore processed (7)

Mining costs

Processing costs

Tailings treatment & IMWF costs

General & administration

Royalty

$45.41

$15.03

$19.39

$1.88

$5.33

$3.78

Capital Costs

Construction capital to complete (7)

Direct Costs

Indirect Costs

Contingency P50 (7.5% of direct + indirect costs)

$178.2 million

$117.1 million

$48.7 million

$12.4 million

Sustaining Capital $6.2 million

Closure and Rehabilitation Costs $6.0 million

Total cash cost per oz AuEq (7) $403

Average Annual EBITDA (5,7) $66 million

Project Economics Remain Robust with a 25% after-tax IRR

TSX:DPM 19

FINAL CONSTRUCTION PERMIT RECEIVED

(2)

(3),(4)

• Main Detailed Development Plan (DDP) & Land Use

• Final DDP approved and in force - November

• Land redesignation approved and in force

• Land purchased

• Other DDPs / Approvals

• New Access Road – Draft DDP announced, KMC approved routing

• Water Well – DDP approved and in force, construction permit issued

• Off site offices and admin complex – DDP approved and in force

• Discharge water pipeline – municipal and Federal land use approvals received

• Powerline – approvals by power distribution company

• Existing Road Upgrade

• Scope defined, KMC to tender and award

• Social Benefit Negotiation

• Executed 2015 donation contract

• Main road upgrade; Medical centre study; Water supply study

• Archaeological Work

• All field work completed in 2015

• Final archaeology report approved by the expert committee

• Final archaeological protocols signed by the Ministry of Culture in 2015

• Construction Permit – expected mid-2016

TSX:DPM 20

Milestone Actual / Expected Completion (4)

Completion of the detailed project execution plan Q1 2016 (complete)

Complete detailed engineering Q1 2016 (complete)

Updated capital cost estimate and baseline project schedule Q1 2016 (complete)

Land re-designation and purchase Q1/2 2016 (both complete)

Approval of technical packages Q2 2016 (complete)

Construction permit RECEIVED AUGUST 9, 2016

DPM board approval for full release Q3 2016

Mobilize earthworks contractor to site Q3 2016

Commence construction on site Q3 2016

Commence main civil/mechanical/electrical construction Q2 2017

Commissioning and start up Q2/Q3 2018

First concentrate production H2 2018

KRUMOVGRAD – PROJECT MILESTONES

4 See footnotes contained in Appendix on slide 32

TSX:DPM 21

KRUMOVGRAD – REGIONAL EXPLORATION UPSIDE

(2)

(3),(4)

• 2015 drilling – 3,500m

• Hole KPDD-009

intersected 8m at

12.81 g/t Au, 4.95

g/t Ag from 277m

• Follow up drilling on 3

holes completed at

Kupel North prospect

• Two other high priority

targets are nearby

HIGHLIGHTS

TSX:DPM 22

KEY MILESTONES

2016 2017 2018Q4 Expansion study to

370,000 tpy concentrate

smelted

Smelter

Krumovgrad

Q3 Project start

H2 First concentrate production

Chelopech Expansion study to 2.5 mtpy

ore production

Q3 BOD approval

Q3 Financing plan

Q2 Expansion study Detailed

Engineering

Q3 Ausmelt Cooling Upgrade

Expansion Implementation

Construction

Production Ramp to 2.2 mtpy

Evaluation of Mining and

Milling intensity constraints

Resource Development above

390 level targeted at

increasing reserves

Expansion Implementation


TSX:DPM 24

COMMITTED TO MAINTAINING A STRONG BALANCE SHEET

0.94 1.12

1.67

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2013 2014 2015

180 201187

0

50

100

150

200

250

300

2013 2014 2015

Net Debt / EBITDA (x)

Net Debt / Capitalization (% at end of period) Total Available Liquidity (US$M at end of period)(9)

Net Debt (US$M)(8)

35

121 120

0

50

100

150

2013 2014 2015

4

15 16

0.0

5.0

10.0

15.0

20.0

2013 2014 2015

(8)


TSX:DPM 25

FINANCING OF EXISTING GROWTH PROJECTS

At current commodity price levels, existing cash flows and undrawn revolver capable of fully

funding growth projects

Moving forward with both projects requires taking additional steps to mitigate the risk of

future price declines or operating shortfalls

July 11, 2016 completion of C$54.65 million bought deal financing

Additional by-product commodity price hedging

Alternatives being considered include:

• Prepaid forward sales arrangement or stream

• Sale of partial interest in Tsumeb or other non-core assets

TSX:DPM 26

CLOSURE OF BOUGHT DEAL FINANCING

Closed July 11, 2016

Aggregate gross proceeds of C$54.65 million

Issued 18,216,000 common shares at C$3.00 per share

Initial agreement to acquire 15,840,000 shares and an over-allotment option for

an additional 2,376,000 shares

In addition, a non-brokered private placement of 840,000 shares at C$3.00

for additional gross proceeds of C$2.5 million sold to Dundee Corporation

Use of proceeds:

Reduce drawdowns under its revolver credit facility

Support advancing growth initiatives

General corporate purposes

TSX:DPM 27

RARE DEEP-VALUE INVESTMENT OPPORTUNITY

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

20132012 2014

Hard Hit Sector Valuations Creating

A Rare Investment Opportunity

DPM share priceGDXJ performance

2015

Attractive Valuation Metrics

EV/2016F EBITDA (Cons. Est.) (4)(12)

P/NAV (Cons. Est.)(12)

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$0

$500

$1,000

$1,500

$2,000

2013 2014 2015

Cu price

2012

Au price

2016

2016

$500

$800

$1,100

Dundee Alacer New Gold Alamos Primero

Average = $890/oz

$750-850/oz

Below Average 2016F All-In-Sustaining Mine Cost (3)(4)(10)(11)(12)(14)

3,4,10,11,12,14 See footnotes contained in Appendix on slide 32

New Gold Argonaut Alamos Alacer DPM Primero

0.7x

1.4x

1.0x 1.0x0.8x

0.5x

Average 0.9x

18.5x

10.8x 8.7x

6.7x 6.5x 5.2x

Alamos New Gold Argonaut Alacer DPM Primero

Average: 9.4x

TSX:DPM 28

CONSOLIDATED RESULTS AND OUTLOOK

626690

890

725

640

510

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

687

750-

850

153 161 169132-155 143

166

217

270

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

198

200-220

220-250

265-320

370

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

196

46 4340

35.7-39.7

34 36 36 37

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

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

All-in Sustaining Cost (US$/oz)Capital Expenditures (US$M) Smelter Cash cost (US$/t)

152

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

216 Sustaining CAPEX

Non-discretionary Growth CAPEX

Discretionary Growth CAPEX

184

87

49-59

121

24

380

310275 265

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

27

173

(4) (4) (4)

(3)(4) (3)(4)

(13)(13)

380-

425

409394

479

320-

370

3,4,13,15 See footnotes contained in Appendix on slide 32

(3) (4)

(15) (15)


Corporate Head Office:

One Adelaide Street East, Suite 500

Toronto, Ontario

M5C 2V9

T: 416 365-5191

Investor Relations

T: 416 365-2549

[email protected]

TSX:

DPM – Common Shares

www.dundeeprecious.com

Thank You

TSX:DPM

APPENDICES

TSX:DPM 31

APPENDIX CONTENTS

Footnotes and Disclaimers…………………………………………………………………. 32

Market Cap., Major Shareholders, Analyst Coverage…………………………………… 33

2016 Guidance………………………………………………………………………………. 34

Hedge Positions at June 30, 2016….……………………………………………………. 35

Exploration – Avala Properties in Serbia….………………………………………………. 36

Exploration – Partially Owned Exploration Assets……………………………………….. 37

Details Regarding Sale of Kapan Mine……………………………………………………. 38

Chelopech Mine – Updated Mineral Reserves and Resources………………………… 39

Krumovgrad Project – Mine, Plant and IMWF details……………………………………. 40

TSX:DPM 32

FOOTNOTES AND DISCLAIMERS

1. From continuing operations

2. Estimated to end of 2016

3. A non-GAAP measure. Refer to the “non-GAAP Financial Measures” section of the Full Year 2015 MD&A for reconciliations to IFRS

4. Forecast/guidance information is subject to a number of risks. 2016F is based on guidance issued February 9, 2016 and 2017 to 2020 forecast data is based on the completion of several growth

projects within currently contemplated time frames. See “Forward Looking Statements” on slide 2

5. Adjusted EBITDA represents earnings before income tax plus depreciation and amortization, finance costs, losses/gains on impairment provisions and reversals, unrealized losses/gains on

derivative contracts and investments at fair value, realized and unrealized losses/gains on equity settled warrants, minus interest income

6. Additional penalty income available from other deleterious elements

7. Based on 2014 Krumovgrad Technical Report; Project economics based on June 6, 2016 Krumovgrad Update; All costs expressed as Q4 2015 US$ based on a US4 / Euro exchange rate of 1.14

8. Net Debt represents term debt and amount drawn under revolving credit facility, less cash

9. Undrawn portion of RCF and cash

10. Source: company midpoints of AISC per ounce of gold guidance provided in Q4 2015

11. AISC per ounce of gold represents cost of sales at Chelopech less depreciation, amortization and other non-cash items plus treatment charges, penalties, transportation and other selling costs,

sustaining capital expenditures, rehabilitation related to accretion expenses and an allocated portion of the Company’s G&A expenses less by-product revenues in respect of copper and silver

including realized gains on copper derivative contracts divided by the payable gold in copper concentrate sold

12. Source: RBC as at August 18, 2016

13. Reflects payable production and, in the case of gold, includes estimated payable gold in pyrite concentrate sold

14. Excludes metals in pyrite concentrate and where applicable, the treatment charges, transportation and other selling costs related to the sale of pyrite concentrate which is reported separately

15. Excludes Kapan

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

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

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

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

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

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

of and estimated costs, including foreign exchange impacts.

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

expectations and construction start-up of Krumovgrad project and decision to proceed with projects and/or any components there of; and ore mined/milled is consistent with planned levels. Subject to a number of

risks, the more significant of which are: lower than anticipated ore grades, recovery rates and ore mined/milled.

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

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

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

Technical Information related to slide 18 – Krumovgrad Project Economics

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

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

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

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

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

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

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

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

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

terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in NI 43-101 and recognized by Canadian securities laws but are not defined terms under the U.S. Securities and

Exchange Commission (“SEC”) Guide 7 (“SEC Guide 7”) or recognized under U.S. securities laws. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be upgraded to mineral reserves.

“Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever by upgraded

to a higher category. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies. U.S. investors are cautioned not to assume that all or any part of an inferred mineral

resource exists or is economically or legally mineable. Accordingly, these mineral resource estimates and related information may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure

requirements under the U.S. federal securities laws and the rules and regulations thereunder, including SEC Guide 7.

http://www.sedar.com/

TSX:DPM 33

MKT CAP, MAJOR SHAREHOLDERS, ANALYST COVERAGE

Share Price (C$ per share) $3.77

Shares Outstanding – Current 161M

Market Capitalization – Current C$532 M

52 week low – high (C$ per share) $0.84 – $4.14

Share Capital @ August 18, 2016 Analyst Coverage

Firm Analyst

BMO **In transition**

CIBC Capital Markets Jeff Killeen

Dundee Securities Josh Wolfson

GMP Securities Oliver Turner

Paradigm Capital Don MacLean

Raymond James **In transition**

RBC Capital Markets Sam Crittenden

Scotia Capital Trevor Turnbull

Dundee Corporation 22.66%

GMT Capital 11.97%

Van Eck Associates 8.00%

USAA Asset Mgmt. 3.54%

J.P. Morgan Asset Mgmt. (UK) 3.39%

Major Shareholders

TSX:DPM 34

2016 GUIDANCE @ JUNE 30, 2016

US millions, unless otherwise indicated Chelopech Kapan (5) Tsumeb Consolidated (6)

Ore mined/milled (‘000s tonnes) 2,030-2,250 131 - 2,161-2,381

Complex concentrate smelted (‘000s tonnes) - - 200-220 200-220

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

Gold (‘000s ounces) 108-118 6 - 114-124

Copper (million pounds) 35.0-39.0 0.7 - 35.7-39.7

Zinc (million pounds) - 2.8 - 2.8

Silver (‘000s ounces) 204-234 111 - 315-345

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

Cash cost per tonne of ore processed ($) (3)(4) 32-36 81 - 32-36

Cash cost per ounce of gold sold, net of by-product credits ($) (1)(3)(4) 550-650 1,136 - 550-650

All-in sustaining cost per ounce of gold ($) (1)(3)(4) - - - 750-850

Cash cost per tonne of complex concentrate smelted, net of by-product credits ($) (3)(4) - - 380-425 380-425

Cash cost per ounce of gold sold in pyrite concentrate ($) (4) 750-850 - - 750-850

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

Exploration expenses (3) - - - 5-6

Sustaining capital expenditures (3) 10-12 3 12-16 22-28

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

pyrite concentrate, which is reported separately.

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

3) Based on foreign exchange rates and metal prices that approximate current rates and prices. The assumed copper price reflects the impact of 67%

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

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

per tonne of complex concentrate smelted, net of by-product credits and cash cost per ounce of gold sold in pyrite concentrate have no standardized meaning under GAAP. Refer to the “Non-

GAAP Financial Measures” section of the Q2 2016 MD&A for reconciliations to IFRS.

5) As a result of the Kapan Disposition, which closed on April 28, 2016, Kapan’s operating results have been treated as a discontinued operation and its production and cost guidance reflects

actual performance for the period January 1 – April 28, 2016.

6) Consolidated guidance for ore mined/milled and metals production includes results from the discontinued Kapan operation. Consolidated guidance for cash cost per tonne of ore processed,

cash cost per oucne of gold sold, net of by-product credits, all-in sustaining cost per ounce of gold and capital expenditures pertains to continuing operations.

TSX:DPM 35

HEDGE POSITIONS AT JUNE 30, 2016

Year of projected payable copper production Volume Hedged (lbs) % Hedged Average fixed price ($/lb)

Balance of 2016 12,632,473 73% $2.32

2017 14,550,492 38% $2.17

QP Commodity Hedged Volume Hedged % Hedged Average fixed price

Payable gold 34,525 oz 100% $1,254/oz

Payable copper 15,101,647 lbs 100% $2.17/lb

Payable silver 67,480 oz 100% $15.91/oz

Year of projected payable

gold in pyrite con productionVolume Hedged (oz)

% Hedged(payable gold in pyrite

con production)

Average fixed price of Pyrite Production

Hedges ($/oz)

Balance of 2016 4,020 27% 1,150.00

Year of projected operating

expensesForeign currency hedged

Amount hedged in

foreign currency% Hedged

Average exchange rate

Foreign currency/US$

Balance of 2016Euro

South African rand

5,850,000

378,000,000

22%

65%

1.1146

13.2279

2017Euro

South African rand

10,800,000

720,000,000

21%

62%

1.1287

13.8699

TotalEuro

South African rand

16,650,000

1,098,000,000

1.1237

13.6420

Year of projected payable gold production Volume Hedged (oz) Average ceiling

price ($/oz)Floor Price ($/oz)

Balance of 2016 6,600 1,484 1,200

2017 45,000 1,497 1,200

TSX:DPM 36

EXPLORATION – AVALA PROPERTIES IN SERBIA

(2)

(3),(4)

• Closing occurred April 8, 2016

• Timok Gold Project

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

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

• DPM plans to explore for additional mineable ounces

• DPM received approval for the renewal of its exploration

tenure over the southern extent of the Timok area and

expanded coverage to include additional ground east of the

sediment packages in an area recently made available

within the Timok magmatic complex

HIGHLIGHTS

Lenovac

Timok Gold Project

Kiseljak Cu Au Porphry

• Kiseljak Copper Gold Porphyry Project

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

• Assess potential for higher grades close to surface

• Lenovac option agreement with Rio Tinto

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

• If Rio Tinto incurs expenditures of US$3 million by December 31, 2017, it will earn a 51% interest

project (C$1 million first year commitment)

• Rio Tinto can incur additional expenditures of US$5 million by end of 2019, for 65% interest in the

project and US$32 million by end of 2023 for 75% interest in the project

TSX:DPM 37

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

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

• DPM holds 11.8%

• Assets include:

• High Grade Back River Gold Project:

• September 2015 updated feasibility study*:

o Mill throughput of 3,000 tpd

o Avg. annual gold production of 198,100 oz @ $US534/oz cash cost

o LOM 11.8 years

o Pre-production capital C$415M; Sustaining capital C$185M; Closure capital C$64M

o Post-tax IRR of 24.2% and NPV of C$480.3M

• Hackett River payable silver royalty from Glencore Zinc:

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

PARTIALLY OWNED EXPLORATION / DEVELOPMENT ASSETS

*Calculated using US$1,150/oz Au price

TSX:DPM 38

Transaction Highlights

Announced March 1, 2016

Proceeds: US$25 million - US$10 million in

cash + US$15 million in Polymetal common

shares - Subject to normal course working

capital adjustments; 2% net smelter return

royalty on future production

Completed on April 28, 2016

Exclusions - Certain joint venture

arrangements and related exploration assets

and licenses in the central part of the country

Implications - Strengthens balance sheet and

reduces future capital requirements;

Increases focus on core portfolio of assets

2016 YTD ACCOMPLISHMENTS

SALE OF KAPAN MINE

TSX:DPM 39

CHELOPECH MINE: UPDATED MINERAL RESERVES AND RESOURCES

Chelopech Mineral Reserves – December 31, 2015

Category

Tonnes

(M)

Gold Copper Silver

Grade

(g/t)

Grade

(%)

Grade

(g/t)

Proven 11.88 3.06 1.02 7.89

Probable 9.64 3.29 0.84 6.08

Total 21.51 3.16 0.94 7.08

Chelopech Mineral Resources – December 31, 2015

Category

Tonnes

(M)

Gold Copper Silver

Grade (g/t)

Ounces

(M)

Grade

(%)

Pounds

(M)

Grade

(g/t) Ounces (M)

Measured 8.4 3.51 0.942 1.15 211 9.91 2.66.

Indicated 5.8 3.17 0.591 0.93 118 9.78 1.823

M&I 14.2 3.37 1.533 1.06 329 9.86 4.486

Inferred 2.8 2.48 0.220 0.82 51 9.08 0.817

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

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

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

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

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

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

6. Mineral Reserves and Resources estimates are based on long term metals prices of USD 1,250/oz Au, USD 23/oz Ag, and USD 2.75/lb Cu and USD 0.85/lb Zn, and as of December 31, 2015;

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

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

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

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

Resources.

http://www.sedar.com/

TSX:DPM 40

KRUMOVGRAD OPEN PIT DESIGN AND PHASES

TSX:DPM 41

KRUMOVGRAD MINE PLAN SUMMARY

TSX:DPM 42

KRUMOVGRAD PROCESS PLANT AND SCOPE OF WORK

TSX:DPM 43

KRUMOVGRAD IMWF GENERAL OVERVIEW

TSX:DPM 44

KRUMOVGRAD IMWF CONSTRUCTION

TSX:DPM 45

KRUMOVGRAD IMWF CONSTRUCTION

TSX:DPM 46

KRUMOVGRAD HIGH LEVEL SCHEDULE


Corporate Head Office:

One Adelaide Street East, Suite 500

Toronto, Ontario

M5C 2V9

T: 416 365-5191

Investor Relations

T: 416 365-2549

[email protected]

TSX:

DPM – Common Shares

www.dundeeprecious.com

DPM CORPORATE PRESENTATION€¦ · This presentation contains “forward looking information”or "forward looking statements" that involve a number of risks and uncertainties. Forward

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