Corp rporat rat e Pre resent at at ion De Denve nver Gold Sho how Sep ept em em ber er 2014
Cautionary Statement Cautionary Note Regarding Forward-Looking I nformation This document contains certain forward-looking statements relating but not limited to the Company’s expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “intent”, “estimate”, “may” and “will” or similar words suggesting future outcomes or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects and timing of commencement of operations, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of mined ore varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Potential shareholders and prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Shareholders are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Claude Resources undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law. Cautionary Note to U.S. I nvestors Concerning Resource Estimate The resource estimates in this document were prepared in accordance with National Instrument 43-101, adopted by the Canadian Securities Administrators. The requirements of National Instrument 43-101 differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”). In this document, we use the terms “measured”, “indicated” and “inferred” resources. Although these terms are recognized and required in Canada, the SEC does not recognize them. The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that constitute “reserves”. Under United States standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally extracted at the time the determination is made. United States investors should not assume that all or any portion of a measured or indicated resource will ever be converted into “reserves”. Further, “inferred resources” have a great amount of uncertainty as to their existence and whether they can be mined economically or legally, and United States investors should not assume that “inferred resources” exist or can be legally or economically mined, or that they will ever be upgraded to a higher category. 2
Corporate Summary • 2 Canadian gold assets: – Each hosting over 1 million ounces of gold – Low risk jurisdictions – Located in proven mining regions – Significant resource growth potential • 20+ years of operating experience • Continuing production and margin growth potential at Seabee Gold Operation • Aggressive focus on cash flow optimization in place 3
The New Story We recognized the areas that we needed to improve on… • Cash flow and earnings • Operating/Mine Execution • Balance Sheet Strength … and understand that we need to rebuild investor confidence. 4
Building Value What we have done to improve: 1. Cash Flow Optimization Plan: � Reduced 2014 overall expenditures by over 13% (2013 vs. 2012: � 22%) � Reduced unit cash costs – Q2 2014 $753 (U.S. $691) vs. Q2 2013 $875 (U.S. $855) � Q2 net earnings of $3.3 Million (Q2 2013: -$9.9 million) 2. Operating Execution: � Produced over 30,000 ozs YTD 2014 (YTD 2013 – 20,520 ozs) � Increased 2014 production guidance - 50,000 to 54,000 ozs (prev. 47,000 to 51,000) � Santoy Gap development ahead of schedule with long hole production initiated in Q3 2014 � New Alimak mining method results positive � Improved safety and environmental performance 3. Strengthened Balance Sheet: � Raised over $24 million in Q1 of 2014 (Sale of Madsen and NSR at Seabee Gold Operation) � Debt reduction of $7.1 million in 1H of 2014 with additional $3.0 million in 2H 3 strategies to rebuild confidence and that work at these gold prices 5
Operations and Projects (1) See footnotes located on page 17 6
Prospective Gold Belt • Large land position – 17,200 Hectares Seabee Property: • Control the entire greenstone belt 17,200 Hectares • Underexplored gold camp • Well established infrastructure 7
Delivering Higher Grades Shaft Extension: Driving reduced costs in labour, consumables and ore handling time L62: The source of higher grade ore Seabee Total MRMR P & P Reserve – 221,300 Oz @ 7.13 g/t Resource – 104,800 Oz @ 8.13 g/t 8
Key Drivers For Change New Mining Method: Alimak Mining Illustration of Alimak M ining process • Proven mining method used in similar operations • Increased production rates: • Ability to mine 100 metre high zone in 9 months vs 16-18 months • Significant reduction in underground waste development and increase on-ore development • Reduction in labour and maintenance costs • Positive reconciliation on grade, ounces and tonnes versus budget Faster, Cheaper � More Productive…….. 9
The Game Changer: Santoy Gap What makes Santoy Gap so special? • 2,000 ounces per vertical metre • Higher reserve grade with opportunity to increase • Average mining width of 6.3 metres • Decreased production risk with the addition of multiple mining fronts • Opportunity to displace low margin ounces with high margin ounces and optimize mine plan for cash flow • System remains open at depth • Time of production from discovery = 2.5 years Higher Grade + Wider Vein Widths = More Ounces Per Vertical Metre 10
The Game Changer: Santoy Gap � Santoy Gap Reserves of 266,100 ounces at 5.68 g/t � YTD production > 7.0 g/t � Santoy region (Santoy Gap and Santoy 8) reserves & resources currently at 807,800 ounces � Significant development capital already invested and no permitting required Santoy 8 MRMR P&P Reserve – 51,800 Oz @ 4.45 g/t M&I Resource – 9,900 Oz @ 4.55 g/t Inf Resource – 125,300 @ 6.09 g/t Santoy Gap MRMR P&P Reserve – 266,100 Oz @ 5.68 g/t M&I Resource – 79,000 Oz @ 8.46 g/t Inf Resource – 271,000 Oz @ 6.96 g/t 11
The Game Changer: Santoy Gap Production (May – August) – 15,000 tonnes @ 7.1 g/t • • Long-Hole production began end of August • Production ramp up to 300-400 tonnes per day by year end • Multiple long-hole mining fronts in 2015 Infrastructure upgrades ongoing to ramp up to 500-700 tonnes per day • 2015 Production 2014 Production 12
Resource Upside � Exploration targeted widely spaced 150-250 m centres evaluating conceptual continuity of Gap and Santoy 8 � Major step-out holes among the highest gram-metre product to date in the camp � JOY-13-690 – 330.35 g/ t over 1.6 m JOY-13-692 – 30.08 g/ t over 7.9 m � JOY 13-692 indicates excellent resource tonnage and grade potential at depth for Santoy 8 � Resource upside (Santoy Complex 1.5 – 2 M ozs) and grade change potential for Santoy 8 JOY-13-690 31.21 g/ t over 1.2m JOY-13-692 (330.35 g/ t over 1.6m) 19.71 g/ t over 5.1m (30.08 g/ t over 7.9m) SYSTEM REM AINS OPEN AT DEPTH 13
Key Drivers For Change Key Project M ilestones Goal Status Development Ore Production Q2 Ongoing - M ay to Aug: 15,000 tonnes at 7.1 g/ t Ventilation Raise Q2 Completed ahead of schedule in June UG Drilling 27,000 m Ongoing – results to date have been excellent Long Hole Production (200 to Q4 2014 Achieved ahead of schedule – Q3 300 tpd) 400 + tpd 2015 Production On schedule 14
2014 Outlook Our new strategies are delivering results • Production of 50,000 to 54,000 ounces (previously 47,000 to 51,000). • Decreasing unit costs by approximately 10% from 2013. • Lowering capital expenditures by 28% from 2013. • Increasing production and margins by prioritizing Santoy Gap development and L62 production. • Forecast cash flow and earnings to drive further debt reduction and a stronger balance sheet. 15
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