May 2017 A Solid Foundation for a Promising Future
Cautionary Statements Forward-Looking Information This presentation contains statements or information concerning the business, operations and financial performance and condition of Wesdome Gold Mines Ltd. (“Wesdome” or the “Company”) which constitute forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation. Forward-looking statements relate to future events or the anticipated performance the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance as of the date of this presentation. Forward-looking statements include, but are not limited to, statements with respect to the timing and amount of future production, costs of production, targeted cost reductions, capital expenditures, the success of exploration activities, permitting time lines, government regulation of mining operations, the future price of gold and other minerals, and the timing and issuance of permits. Generally, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” and variations of such words and phrases or statements that certain actions, events, or results “may”, “could”, “would”, “might”, or “will”, “occur” or “be achieved” or the negative connotation thereof. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predicted outcomes could differ materially from those contained in such statements. These risks and uncertainties include, but are not limited to, fluctuations in prices of commodities, fluctuations in currency markets, actual results of additional exploration and development activities at the Company’s projects, the timing and amount of estimated future production and the costs thereof, capital expenditures, the availability of any additional capital required to bring future projects into production, the failure of plant, equipment or processes to operate as anticipated, accidents, or labour disputes. Risks and uncertainties about Wesdome’s business are more fully discussed in the disclosure material filed with the securities regulatory authorities in Canada and available on SEDAR under the Company’s profile at www.sedar.com. Readers are urged to read these materials and should not place undue reliance on the forward-looking statements contained in this presentation. Wesdome assumes no obligation to update the forward-looking information relating to beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws. TSX:WDO | 2
Corporate Structure Symbol 52 Week High/Low Analyst Coverage TSX:WDO $4.40/$1.47 (Average daily Clarus Securities volume 500,000 shares) Echelon Wealth Partners Shares Outstanding Eight Capital Partners 132.5 M Market Capitalization Industrial Alliance $415M M Partners Options ($3.12 March 24, 2017) National Bank Financial 5.4 M PI Financial Cash Position Warrants $29.6 M (Mar 31, 2017) 0 Major Shareholders Debt Resolute Funds, Van Eck, Royal Bank Debentures $4.9 M Convertible Investment Management, US Global, Debenture (due May 24, Oppenheimer, Mackenzie Financial, 1.9 M 2017, @ $2.50/share) 1832 Asset Management, Gabelli Fully Diluted Management and Directors 139.2 M 2.2% TSX:WDO | 3
Canadian Gold Company with Three 100% Owned Projects 30 years of continuous gold production • 2016 Cash flow from operations $19.9 M • Eagle River Complex produced 47,737 ozs in 2016 • from 2 high grade mines Executing an aggressive company wide exploration • program on all assets 1 3 2 High grade discovery Aug 2016 at Kiena Complex • Drilling initiated at Moss Lake Dec 2016 • 3 2 1 Kiena, Val d’Or, Quebec Eagle River Complex, Wawa, Ont. Moss Lake, Thunder Bay, Ont. Production Suspended 2013 Operating Mine Complex, two Open Pit Gold Deposit Past Prod.: 1.75 M oz deposits feed central mill @ ~850 Resources: Indicated 1.4M oz, Resources: M&I 450,000 oz, tpd Inferred 1.7M oz Inf. 400,000 oz Past Prod.: 1.1 M oz Fully Permitted Mine/Mill Reserves: P&P 446,000 oz Complex on Standby Resources: M&I 330,000 oz, Inf. 225,000 oz TSX:WDO | 4
Corporate Strategy EXPLORE DEVELOP STRENGTHEN Longer Term - Stabilize and improve -Pipeline of - Potential for Near Term Objective Wawa operations development projects: diversified production through mine from three mines in - Early success at development of two provinces, Ontario brownfields additional high grade and Quebec exploration at Kiena zones, providing Complex (shaft and - Increased output and greater production permitted mill) lowered costs flexibility - Commenced drill -Maximizing the - Operational program at newly potential of all the improvements such as consolidated Moss assets ventilation, power, and Lake property equipment - Near-mine - Ongoing mine exploration on surface exploration to diversify at Eagle River and step production locations out at Mishi Open Pit TSX:WDO | 5
Operating Two of Canada’s High Grade Gold Mines Eagle River Underground Ranks 2nd Mishi Open Pit Ranks 3rd 6 5 Reserve Grade (g/t) Reserve Grade (g/t) 4 3 2.0 2 1 0 Meliadine Meadowbank Mishi Canadian Malartic Detour Lake Rainy River Young-Davidson Source: National Bank Financial TSX:WDO | 6
2017 Production and Cost Guidance 2017 G Guida danc nce: Combine bined g d gold p ld produ ductio ion Eagle R River U Unde derground M und Mine ne 4 45,000 – 49, 49,000 o ounces @ 8. 8.8 8 – 9. 9.2 g 2 g/t 52,000 a 000 and 5 58,000 000 ounces Mi Mishi O Open Pi Pit Mi Mine 7 7,000 – 9, 9,000 ounces @ @ 1. 1.8 8 - 2. 2.2 g 2 g/t Q1 2 2017 P Produc duction n Resul ults: Q1 1 2017 2017 P Production o on t track: Eagle R River U Unde derground M und Mine ne 1 13,588 o ounc nces @ @ 11.5 g g/t 15,162 o 162 ounces s Mishi O Ope pen P Pit Mine ne 1 1,574 o ounc nces @ @ 1 1.7 g/t Combine bined O d Oper erating ing C Cost p per ounc nce: CAD$1, $1,030 030 - $1, $1,13 130 p per o r ounce (USD$765 $765 – $835 p $835 per r ounce) Combine bined A d All-In S Sustaining ining C Costs p per o ounc unce sold: d: CAD$1, $1,450 450 - $1, $1,55 550 p per o r ounce (USD$1, $1,075 75 - $1,150 p 150 per o ounce) Eagle R e River ver r reser erve ve grade: e: 9.2 g g/t Sustaining ining Cape pex ~ ~CAD$13 – $17 M $17 M per y r year r Growt wth/Project ct C Capex of ~CAD$3 M M Poten ential t l to i increa ease e tonna nnage f e from t the E e Eagle gle River er U Under derground nd Mi Mine ne Scopin ping S Stud udy a at Mi Mishi O hi Open en P Pit Mi Mine t ne to det eter ermin ine a e appr propr pria iate e open p en pit s scena enario io Mishi reser erve g ve grade: e: 2 2.0 g/t TSX:WDO | 7
Q1 2017 Operating Results st Quarter 2017 ts – 1 st Operati tional R Results 2017 a and 2016 2016 Quarter ended March 31 2017 2016 Ea Eagle tonnes mi mille lled 38,578 39,839 Mishi tonnes mi mille lled 36,641 36,287 To Total tonnes mi mille lled 75,219 76,126 Eagle gra Ea rade (g/t) t) 11.5 5.6 Mishi gra rade (g/t /t) 1.7 1.8 Ea Eagle Rive ver Mine mi mill ll re recovery ry (%) 95.3 88.0 Mishi Mine mill mill re recovery ry (%) 80.9 85.0 Ea Eagle reco covere red gra rade (g/t) t) 11.0 4.9 Mishi recover ered ed gra rade (g/t) t) 1.3 1.5 Ea Eagle ounces produced 13,588 6,254 Mishi ounces produced 1,574 1,782 To Total ounces produced 15,162 8,036 Ounces sold old 12,320 8,100 Avera rage rea ealized ed price ce (CAD AD$/oz oz) 1,631 1,640 Producti tion cash sh cost sts (CAD AD$/oz oz) 1,056 1,766 Al All-in in-sustaining cost sts (CAD AD$/oz oz) 1,474 2,428 Revenue 20 M 13M Cash sh Flow low fro rom Operati tions (los loss) $5M ($2.8M) Net et Income me (los loss) $695,000 ($3.3M) EP EPS $0.01 ($0.03) Fre ree Cash sh Flow ow ($4.1M) ($7.1M) TSX:WDO | 8
Operations Optimization 2017 • Cost cutting program underway • Upgrading equipment Production • Completion of ventilation raise system (surface to 960m) • Development into higher grade reserve blocks accelerated and • Road construction at Mishi to lower trucking costs • Filtration system at mill improved with new velvet backing on Development drum filters • Added capacity with the recommissioning of belt filter • Drifting on 7 Zone at the 890 metre level (42 m @ 11.26 g/t cut • Drifting on 7 Zone at the 945 metre level (63 m @ 12.63 g/t cut) • 7 Zone commenced production late 2016, well ahead of Grade schedule • Additional definition drilling • New 303 East lens - unprecedented widths at high grades close to mine infrastructure • Tighter dilution controls in place TSX:WDO | 9
Eagle River Mine: 1.1 M oz of Production • Quartz diorite stock (2 km x 0.5 km) hosts 1.1 M oz of past production at Eagle River from 8, 6 and 2 Zone structures (1995 to 2017) Parallel 7 and 300 Zones to north offer new potential throughout the mine • • 2016 Production: 40,252 oz. (170,369 t @ 7.9g/t) 7 Zone Surface TSX:WDO | 10
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