Exceptional Team, Solid Production, Significant Valuation Upside - PowerPoint PPT Presentation

TSX:NMI OTCQX:NMKTF June 2016 Exceptional Team, Solid Production, Significant Valuation Upside

Forward-looking Statements Certain information set forth in this presentation contains “forward -looking statements”, and “forward -looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company’s expectations about its business and operations, and are based on the Company’s current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as “will”, “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These statements are not guarantees of future performance or outcomes and undue reliance should not be placed on them. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are included in this presentation or incorporated by reference herein, except in accordance with applicable securities laws. All amounts are presented in United States dollars ("$") unless otherwise stated. References in this document to “C $ ” are to Canadian dollars and references to "A$" are to Australian dollars. Certain non-IFRS measures are included in this presentation, including operating cash cost per ounce, all-in sustaining costs (“AISC”) per ounce, and operating cash cost per tonne milled in Australian dollars. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers. Newmarket Gold believes that these measures, in addition to that information prepared in accordance with IFRS, provides investors with useful information to evaluate the Company’s performance and ability to generate cash flow from its operations. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a subtitute for measures of performance prepared in accordance with IFRS. For further information, refer to the “Non -IFRS Measures” section of the latest quarterly MD&A. Qualified Person Mark Edwards, MAusIMM (CP), MAIG, General Manager, Exploration, Newmarket Gold, is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this presentation 2 TSX:NMI

Newmarket Gold Highlights Excellent balance sheet US$52.1 million cash (A$72.0 million equivalent) and US$1.6 million long-term debt  Experienced capital markets and operational team with a proven track record of execution and significant value  creation Three 100% owned operating gold mines in Australia with sustainable production of over 200,000 ounces  annually with strong cash flow (all production unhedged) Record Q1, 2016 Fosterville Gold Mine Production of 33,138 ounces on record grade of 7.34g/t gold  Q1 2016 generated US$8.9 million free cash flow  New mine site discoveries leading to organic production growth  Disciplined gold asset consolidation strategy  Highly leveraged to the AUD$ gold price (A$1684, May 27, 2016)  NEWMARKET OPPORTUNITY 7.0x $3,385 4.7x $1,925 Peer Group 1 Peer Group 1 EV/oz Production EV/oz Production Price/2016E CFPS (ratio) Price/2016E CFPS (ratio) Newmarket Valuation Newmarket Valuation 1. Peer group details slide 8. Source: FactSet, Bloomberg, company disclosure, available equity research. Averages exclude Newmarket, details as at May 27, 2016. 3 TSX:NMI

STRONG FINANCIAL POSITION Balance Sheet CASH Cash Balance(million) US$52.1 Working Capital (million) US$38.0 $52.1 Million Debt (million) US$1.6 Capital Structure & Ownership TSX:NMI OTCQX: NMKTF Debt $1.6 Million Market Capitalization (million) ( as at May 27, 2016) US$460 Consensus Estimated Operating Cash Flow Issued and Outstanding (million) 175.6 $132.7 (US$ Millions) Options (million) 10.7 $111.7 Performance Share Units (million) 3.7 Warrants (million) 0.5 $76.5 Fully Diluted (million) 190.5 $74.2 $67.5 Luxor Capital Group LP 19.3% Eric Sprott 17.3% Management/Board (basic) 7.4% Average Daily Volume 2013A 2014A 2015A 2016E 2017E Source: 2013-2014 Actuals, 2016E-2017E – Factset Consensus 30 day 1,400,000 4 TSX:NMI

EXPERIENCED VALUE CREATION TEAM Raymond Threlkeld Chairman ALIGNED WITH Douglas Forster President, CEO & Director SHAREHOLDERS Blayne Johnson Executive VP, Director Lukas Lundin Director  Strong Founders share Randall Oliphant Director ownership: C$12 million currently Darren Hall Chief Operating Officer invested ( 7.4% issued and outstanding ) Doug Hurst VP Corporate Development Robert Dufour Chief Financial Officer  Aligned PSU Vesting Plan Ryan King VP Investor Relations based on share price Edward Farrauto Director performance Michael Vint Director  Focused on executing and creating significant Advisors shareholder value Ian Telfer Capital Markets Michael Vitton Capital Markets The founders have created over $30 billion in market cap value 5 TSX:NMI

2015 RECORD YEAR SUSTAINABLE PRODUCER WITH A STRATEGY FOR LONG-TERM GROWTH 3 Australian RECORD 222,671 oz Gold Mines CONSOLIDATED GOLD PRODUCTION THREE NEW MINE SITE DISCOVERIES FLAGSHIP FOSTERVILLE GOLD CONSOLIDATED COSTS MINE OPERATING CASH COSTS $US 704/oz RECORD PRODUCTION 123,095 ALL-IN SUSTAINING COSTS $US 987/oz RECORD GRADE 6.11 g/t Au RECORD RECOVERY 88.5% RECORD DRILL INTERCEPT 645g/t Au over 3.5m ROBUST AUD$ GOLD PRICE 6 TSX:NMI

Q1 2016 Highlights 57% PRODUCTION FROM FOSTERVILLE GOLD PRODUCTION RECORD PRODUCTION 33,138 FOSTERVILLE 58,057 oz RECORD GRADE 7.34 g/t Au RECORD PRODUCTION 33,138 ozs LOW OPERATING CASH COSTS US$473 per oz CONSOLIDATED GOLD PRODUCTION RECORD GRADE 7.34 g/t Au LOW All-In Sustaining Costs US$723 per oz LOW OPERATING CASH COSTS US$473 per oz LOW ALL-IN SUSTAINING COSTS US$723 per oz 1 CONSOLIDATED COSTS OPERATING CASH COSTS $US 701/oz COSMO PRODUCTION UP 27% ALL-IN SUSTAINING COSTS FROM Q4 2015 to 16,340 ozs $US 908/oz US$ CASH (million) $52.1 Strong Balance Sheet US$ DEBT (million) $1.6 (Mar 31, 2016) 1. (see Non-IFRS Disclosure p.2). 7 TSX:NMI

Peer Group Comparison Price / Consensus 2016E CFPS (ratio) EV / Consensus 2016E EBITDA (ratio) 9.2x 10.4x 7.3x 8.8x 8.2x 8.1x Avera rage ge: 6.5x Average: 6.2x 6.3x 5.9x 6.1x 5.5x 6.4x 5.4x 7.0x 6.5x 6.5x 4.6x 5.1x 4.7x 3.0x 2.6x EV / 2016E Prod. (US$/oz)  All comparison metrics present an opportunity for a continued significant $4,511 $4,115 Average: valuation opportunity with Newmarket $3,172 $3,207 $3,239 $3,274 $3,413 $3,427 $3,385 Gold $1,925 $2,110 Source: FactSet, Bloomberg, company disclosure, available equity research. Averages exclude Newmarket as at May 13, 2016. 8 TSX:NMI

Producing in a Top Mining Jurisdiction COSMO/UNION REEF MAUD CREEK GOLD PROJECT Location Northern Territory Location Northern Territory Ownership 100% Ownership 100% Metals Gold Metals Gold Mining Underground Mining Open Pit + Underground Capacity 2.0Mtpa Stage PEA Yrs in Production 2.5 M&I Resources 724,000 ozs @ 3.46 g/t 1 Prod. Guidance 60k – 65k ounces Discovery Western Lodes Discovery AUSTRALIA Producing Mine Development Project FOSTERVILLE GOLD MINE 2016E CONSOLIDATED GUIDANCE Mine site Discovery Location Bendigo, Victoria Production: 205,000 - 220,000 ounces Ownership 100% (2% Royalty) Operating Cash Cost 2 : US$650 - US$725 per ounce Metals Gold All-in sustaining costs 2 : US$950 - US$1,025 per ounce Mining Underground Capacity 850Ktpa Yrs in Production +10 Prod. Guidance 110k – 120k ounces Discovery Eagle Fault Zone STAWELL GOLD MINE BIG HILL GOLD PROJECT Location Stawell, Victoria Location Victoria Ownership 100% (1% Royalty) Ownership 100% Metals Gold Metals Gold Mining Underground Mining Open Pit Capacity 1.0Mtpa Stage Permitting Yrs in Production +30 M&I Resources 166,000 ozs @ 1.52 g/t 1 Prod. Guidance ~35k ounces Discovery Aurora B Gold Zone 1. See slide 24-26 for details on Mineral Resource and Reserve details 2. see Non-IFRS Disclosure slide 2 9 TSX:NMI