April 2018 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
Wesdome Gold Mines Ltd. Proven building blocks to New high-grade gold increase shareholder value discovery in permitted, de-watered former producing mine Low risk expansion of existing mines in proven mining camps Assets in top rated jurisdictions – Ontario and Quebec TSX:WDO | 3
Corporate Structure Symbol 52 Week High/Low Analyst Coverage TSX:WDO $3.93/$1.64 (Average daily BMO Capital Markets volume 650,000 shares) Clarus Securities Shares Outstanding Desjardins Capital Markets 133.9 M Market Capitalization Echelon Wealth Partners $250M Eight Capital Partners Options and RSU’s ($2.00 April 12, 2018) Industrial Alliance 7.2 M Laurentian Bank Cash Position Warrants M Partners $22.1 M (March 21, 2018) 0 Mackie Research No Debt National Bank Financial Fully Diluted PI Financial 141.1 M Major Shareholders Management and Directors 2.2% 1832 Asset Management, Van Eck, Oppenheimer, Royal Bank Investment Management, Mackenzie Financial, US Global, Gabelli TSX:WDO | 4
Two Year Share Price Performance GDXJ methodology change WDO added to GDXJ (18 M shares) announced, rebalance results in 12 M shares liquidated from index Resolute Funds reduces position from 20% to Eagle River 303 E Lens discovery announced; 9.97% Kiena Deep potential expands 550 m laterally announced 2017 gold Kiena Deep discovery production announced Resolute Funds exceeded continues to sell; no longer top 10 Resolute Funds beings shareholder to reduce position TSX:WDO | 5
Canadian Gold Company with Three 100% Owned Projects Over 30 years of continuous gold production • 2017 earned mine profit $31.5 M (41% increase over 2016) • 2017 operating cash flow $27.2 M or $0.20/share (21% • increase over 2016) 3 2017 Eagle River Complex production: 58,980 ozs from 2 high • 2 grade mines (24% increase over 2016) 1 2017 Eagle River head grades 10.6 g/t (2016: 7.8 g/t) • 2018 Guidance: 62,000 – 68,000 ozs (Q1 2018: 17,949 ozs) • Drilling High grade discovery at Kiena Complex • 3 2 1 Eagle River Complex, Wawa, Kiena, Val d’Or, Quebec Moss Lake, Thunder Bay, Ont. Ont. Production Suspended 2013 Open Pit Gold Deposit Operating Mine Complex, two Past Prod.: 1.75 M oz Resources: Indicated 1.4M oz, deposits feed central mill @ Resources: M&I 450,000 oz, Inferred 1.7M oz ~850 tpd Inf. 400,000 oz Past Prod.: 1.1 M oz Fully Permitted Mine/Mill Reserves: P&P 518,000 oz Complex on Standby Resources: M&I 342,000 oz, Inf. 225,000 oz TSX:WDO | 6
Corporate Strategy Long Term: Objective: Near Term: EXPLORE DEVELOP STRENGTHEN Eagle River 7 and 300 zones Become a • remain open diversified Near mine • producer with exploration ongoing Eagle River exciting organic Kiena Development of Kiena deep discovery production growth • • high grade zones August 2016 Continued Development of • • Continue to exploration ramp operational increase nearing completion improvements production, Moss Lake Fewer limitations decrease costs and • with consolidated increase cash flow land package TSX:WDO | 7
2017 Gold Production Guidance Exceeded Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 Guidance Gold Produced 15,162 12,529 15,493 15,797 58,980 52,000 – (ounces) 58,000 Cash cost per ounce 1,134 1,264 1,013 1,019 1,097 1,030 – 1,130 sold (CAD$/ounce) AISC per ounce 1,613 1,718 1,446 1,284 1,489 1,450 – 1,550 (CAD$/ounce) Gold Sold (ounces) 12,320 13,030 13,069 19,351 57,770 Average realized gold 1,631 1,715 1,619 1,618 1,643 price (CAD$/ounce) Gross Revenue (CAD$ 20.1 22.3 21.2 31.3 94.9 millions) TSX:WDO | 8
2017 Financial Results Year s ended December 31 (in $000, except per share 2017 2016 Increase/(decrease) amounts) Revenues 96,057 84,031 13% Mine profit 1 31,537 22,293 29% Net income 1,287 7,786 (505%) Net income adjusted 1 6,798 6,789 0% Operating cash flow 27,225 22,424 18% Free cash flow 1 (9,344) (4,211) 55% Per share data: Net earnings 0.01 0.06 (500%) Adjusted net earnings 0.05 0.05 0% 1 Operating cash flow 0.20 0.18 10% Free cash flow 1 (0.07) (0.03) 57% Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non- 1 IFRS measurements to the financial statements. TSX:WDO | 9
Eagle River Complex Production Profile Eagle River Complex Quarterly Production Profile 20,000 Gold ounces produced 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Eagle River Production Mishi Production TSX:WDO | 10
2018 Guidance: Production to Increase by 10%, Costs to Reduce by 10% Amounts are denominated in Canadian Guidance dollars Gold production Eagle River 55,000 – 59,000 ounces Mishi 7,000 - 9,000 ounces 62,000 – 68,000 ounces Head grade (g/t) Eagle River 10.1 – 10.5 Mishi 2.4 – 2.8 Operating cost per ounce 1 $950 - $1,025 US$750-US$800 All-in sustaining cost per ounce 1 $1,400 - $1,475 US$1,100 – US$1,160 1 Operating cost per ounce and All-in sustaining cost per ounce are non-GAAP measures, please reference the Company’s management discussion and analysis for the period ended September 30, 2017 filed on SEDAR for their calculations. TSX:WDO | 11
Mineral Reserves (2017 Year End) 21% increase in Eagle River ounces; grade increased by 32% Reserves and Resources as at December 31, 2017. • Mineral Resources exclusive of Mineral Reserves. • The contents of this slide have been verified and approved by Michael Michaud, P. Geo, VP Exploration for the Company and a Qualified Person • within the meaning of NI 43-101 For details, please refer to the Company’s press release dated February 26, 2018 and AIF dated February 22, 2017 available on the Company’s • website and sedar.com TSX:WDO | 12
Exploration: Two Properties Attain Highest Grade Hits in 2017 Source: Mining Intelligence/Mining.com TSX:WDO | 13
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 • 2017 Production: 50,996 ounces (152,591 t @ 10.6 g/t) • 7 Zone Surface TSX:WDO | 14
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