A first choice May 2016 Forward Looking Information Statements - PowerPoint PPT Presentation

Goose Gold Project, Back River, Nunavut, Canada A Gold Miner in the Making A first choice May 2016

Forward Looking Information Statements relating to our belief as to the timing of completion of the environmental assessment, the results of the final public hearings, the timing of receipt of a project certificate and permits and the timing of the start of construction and the first gold pour, and the results of further optimization studies to the feasibility study, the potential tonnage and grades and contents of deposits and the potential production from and viability of Sabina’s properties are forward looking information within the meaning of securities legislation of certain Provinces in Canada. Forward looking information are statements that are not historical facts and are generally, but not always identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential,” “opportunities,” and similar expressions, or that events or conditions “will,” “would . ” “may,” “could,” or should occur. The forward looking information is made of the date of this presentation. This forward looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward looking information, including, without limitation: the effects of general economic conditions; changing foreign exchange rates; risks associated with exploration and project development; the calculation of mineral resources and reserves; risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work arising from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company’s properties; risk of accidents, equipment breakdowns and labour disputes; access to project funding or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; title matters; government regulation; obtaining and receiving necessary licences and permits; the risk of environmental contamination or damage resulting from Sabina’s operations and other risks and uncertainties including those described in Sabina’s annual information form for the year ended December 31, 2015 available at www.sedar.com Forward looking information is based on the beliefs, estimates and opinions of Sabina’s management on the date the statements are made. Sabina undertakes no obligation to update the forward looking information should management’s beliefs, estimates or opinions, or other factors, change, except as required by applicable law 2

Key Investment Highlights A scarcity of gold and de-risked gold projects make Sabina one of the few highly leveraged undervalued opportunities  Regional scale (80km belt)  Final stage of environmental  Large high grade assessment  Attractive to producers resource/reserve  Excellent jurisdiction looking to replenish supply  Feasibility complete  Exceptional team  Robust at US$1150 gold  ~C$45 million in cash and C$0.80 3

Deposits are Well Drilled and Well Understood Mineral Resource Metal (koz 80% of open Tonnes (kt) Au (g/t) Estimate Oct/14 Au) pit reserve is 8.0 Measured 10,273 5.27 1,740 in Proven Indicated 17,969 6.22 3,593 Measured and Indicated 28,242 5.87 5,333 Category Inferred Inferred 7,750 7.43 1,851 6.0 Mineral Reserve Tonnes Gold Resource in Millions of oz. Classification Au (g/t) Au (koz) Estimate Aug/15 (kt) Proven 6,983 5.97 1,340 Total Open Pit Probable 1,885 5.52 335 4.0 Proven 20 9.52 6 Total Underground Measured & Indicated Probable 3,471 7.37 822 Total Back River Proven 7,003 5.98 1,346 Property Probable 5,356 6.72 1,157 2.0 - 1998 2002 2007 2009 2010 2012 2015 1980’s & 90s 1997-2009 June 2009 2010-2014 George & Goose deposit Project Project owned by Arauco, +325% resource discoveries Kinross, Miramar & DPM acquired by growth under Sabina Sabina *See mineral reserves and resources estimate slides 26 & 27 for details 4

Back River – Initial Project Feasibility Study Sept 2015 Results Summary Results @US$1,150/oz Gold/ C$0.80 Exchange Pre-Tax NPV(5%) & IRR C$M / % $699 / 28.2% After-Tax NPV(5%) & IRR C$M / % $480 / 24.2% Payback Years 2.9 Mill Throughput tpd 3,000 Avg. Grade Processed diluted g/t Au 6.30g/t Gold Recovery % 93.0% Mine Life Years 11.8 Avg. Production (Y1-8) oz/year 250,000 Avg. LOM Production oz/year 198,000 On-Site Op. Costs C$/t milled $114.58 Total Cash Cost $US/oz $534 All-In Sustaining Cost $US/oz $620 LOM All-In Cash Cost* $US/oz $763 Pre-Production Capital C$M $415 Sustaining Capital C$M $185 Closure Capital C$M $64 *LOM All-In Cash Cost includes initial, sustaining and closure capital QA/QP (see slide 25)) 6

Back River FS – Sensitivities & Optimizations Sensitivity to Capex & Opex Sensitivity to Gold Price and Exchange Rate Operating Costs NPV5% Exchange Rate: US$:C$ (C$M) NPV5% Base IRR % (C$M) -20% -10% +10% +20% 0.70 0.725 0.75 0.80 0.85 0.90 Post-Tax IRR % Case Gold price (US$/oz) $ 1,000 472 421 375 289 210 140 Post-Tax 715 653 592 529 468 23.9 22.2 20.5 17.4 14.3 11.3 -20% 36.2 34.1 32.0 29.7 27.3 $ 1,150 687 630 577 480 394 317 659 591 536 474 415 30.9 29.1 27.4 24.2 21.2 18.4 Capital Costs -10% 31.8 29.9 27.8 25.6 23.4 $ 1,250 832 769 711 606 513 430 Base 603 542 480 418 356 35.1 33.3 31.6 28.3 25.3 22.5 Case 28.1 26.2 24.2 22.1 20.0 $ 1,350 977 910 846 732 631 542 547 486 425 362 300 +10% 39.1 37.3 35.5 32.2 29.1 26.3 24.8 23.3 21.1 19.1 17.0 $ 1,500 1,191 1,117 1,048 923 809 710 492 430 369 306 245 +20% 21.9 20.2 18.3 16.4 14.4 44.5 42.7 41.0 37.6 34.5 31.6 7

Project Optimizations  Flotation vs whole ore leach  Increased Recoveries  Positive impact on CAPEX and OPEX  Opportunities for satellite deposits (eg: George)  Increased Gold Price  US$1,200 gold price Echo, Llama UG & George are accretive to the project – increased mine life with existing resources  Imbedded growth – all existing deposits remain open, numerous exploration opportunities  Personnel and expertise availability (both for construction and operations)  Access to used equipment (mining, process and infrastructure)  Exploration opportunities for many years to come 8

Back River – Large, Robust, Good Jurisdiction Few projects with after tax IRR >30% with production in excess of 200,000 oz per year After-Tax IRR and LOM Annual LOM Production Matrix 450 PVG 400 350 MAX LOM Annual Production (Koz/yr) 300 CNL 250 SBB BSX VIT 200 KAM DNA 150 TMR GQC NCA AMM ICG AGB 100 PRO 50 0 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% After-Tax IRR (%) at $1,200/oz Source: public information and Cormark Securities based on internal modelling of these projects at US$1200 gold and $0.75 US$:C$ Exchange 9

Economics – Credible Comparisons Back Parameter Meliadine 1 Hope Bay 2 Meadowbank 3 Torex 4 River Units 2015 FS 2015 FS 2015 PFS Producing 2012 FS  Comparisons to Avg Au Price US$/oz 1,150 1,300 1,250 400 (2005 FS) other projects $1,386 provide validity 12.8% (2005 FS) Post Tax IRR % 24.2 10.3 40.0 24.2% to quality of 155.2 (2005 FS) Post Tax NPV 5% $M 480 307 626 $900 Back River FS Payback years 2.9 5.0 1.7 N/A 3.6 135.27 73.00 (2015) 30.00  Comparable 114.58 143.00 OPEX $/t (OP/UG) (UG ) (UG) (OP) (OP ) costs using a LOM Cash Costs US$/oz 534 531 638 613 (2015) 504 more 710 (2007) Pre-Production $M 415 1,047 206 663 conservative CAPEX 1.5 B (2012) gold price Sustaining CAPEX $M 185 411 334 N/A 15 koz 2,503 3,350 3,507 1,165 4,090 48,800 Total Reserve ktonnes 12,359 14,012 14,194 11,795 g/t 6.30 7.44 7.70 3.08 2.61 LOM Payable Au koz 2,319 3,214 3,200 4,273* 4,090 Annual koz 198 350 160 381 (2015) 337 Production 1. Information retrieved from “ Agnico Eagle Updated Technical Report on the Meliadine Gold Project, Nunavut, Canada, February, 11, 2015” from www.sedar.com 2. Information retrieved from News Release “TMAC Resources Completes Robust Pre - feasibility Study on the Hope Bay Project”, April 2 4, 2015 retrieved from www.tmacresources.com 3. Information retrieved from financial results of website www.agnicoeagle.com. Various dates. *Cumulative production plus 2013 reserves and resources Information retrieved from “Morelos Gold Project – 43- 101 Technical Report Feasibility Study, Guerrero, Mexico October 1, 2012” from 4. 10 www.sedar.com

Nunavut – Active Mining Region 11  33,000 people live in coastal and inland communities in Nunavut  Mining has been ongoing for decades  Established routes and logistics for fuel delivery, construction equipment and resupply Nunavut offers certainty of tenure and is pro responsible resource development

Logistics and Transportation – Marine Routes Equipment and material originating in western North America or in China will be consolidated at Vancouver, BC. Equipment and material originating in eastern North America or Europe will be consolidated at Becancour, QC. 12 Arctic Class Barge Arctic Class Transport Ship