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

TSX:NMI OTCQX:NMKTF May 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. 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$1725, May 9, 2016)  NEWMARKET OPPORTUNITY 8.1x $3,774 $2,225 5.5x 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 9. Source: FactSet, Bloomberg, company disclosure, available equity research. Averages exclude Newmarket, details as at May 13, 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 09, 2016) US$470 Consensus Estimated Operating Cash Flow Issued and Outstanding (million) 175.6 (US$ Millions) $117.7 $112.1 Options (million) 10.7 Performance Share Units (million) 3.7 Warrants (million) 0.5 $76.5 $74.2 $67.5 Fully Diluted (million) 190.5 Luxor Capital Group LP 19.3% Eric Sprott 17.9% Management/Board (basic) 7.4% 2013A 2014A 2015A 2016E 2017E Average Daily Volume Source: 2013-2014 Actuals, 2016E-2017E – Factset Consensus 30 day 1,700,000 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 Robert Getz Director based on share price Kevin Conboy Director performance Edward Farrauto Director 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 HIGHLIGHTS US$ Million (As at Mar 31, 2016) Fosterville Record: 33,138 ounces on record mill grade of 7.34 g/t Au  Revenue $66.1 Fosterville achieves low operating cash costs of US$473 1 and AISC of  US$723 1 Operating cash flow $18.3 Consolidated Q1, 2016 production of 58,057 ounces  Consolidated Operating Cash Costs of US$701 1 and All-in Sustaining  Net Income $6.5 Costs of US$908 1 US$8.9 2 million generated in free cash flow  Net Income per share (basic and diluted) $0.04  27% improvement in Cosmo production to 16,340 ounces over Q4, 2015 including a record month in March of 8,022 ounces Cash $52.1 Continued high grade, visible gold-bearing drill intercepts from the  Lower Phoenix gold system; Eagle and East Dipping structures Sustaining Capital $9.4 including: 500.7 g/t (17.6 opt) Au over 12.5 m (ETW: 4.5 m)  Fosterville’s new gravity gold circuit is operational and being Growth Expenditure $3.8 commissioned with free gold currently being recovered As at March 31, 2016 Operating Cash Costs and All- in Sustaining Costs (“AISC”) refer to Non -IFRS Measures on Slide 32 1. 2. Free Cash flow based on operating cash flow of US$18.3 million less CAPEX of $9.4 million after investing US$3.8 million into growth. 7 TSX:NMI

Newmarket Gold/Lake Shore Gold Value Comp  February 8, 2016: Tahoe Resources announces acquisition of Lake Shore Gold for C$945 million NMI 2015 FY LSG Takeout Trading Multiples May 6/16 Feb 8/16 Share / Offer price C$/sh $3.74 $1.71 FDITM Mkt Cap / Equity Purchase Price US$ million $540 $682 FDITM EV 1 US$ million $472 $617 2015 Production koz Au 223 179 2015 Cash Costs US$/oz $704 $580 2015 AISC US$/oz $987 $870 Reserves million oz Au 0.8 0.8 Resources (inclusive) million oz Au 6.4 11.2 EV/ 2015 Production US$/oz $2,120 $3,446 EV/ Reserves US$/oz $615 $798 EV/ Resources US$/oz $73 $55 P / CF 4.23x 6.90x Tahoe Resources share price has increased ~50% since the acquisition of Lake Shore Gold (LSG Adj EV/oz  2015 Production would be $5,425) 1 EV reflects proceeds from option and warrant exercises to date. Source: GMP Securities 8 TSX:NMI

Share Price Performance Share Price Performance Since IPO NMI Share Price News 16-May-16 Announces results of a $4.00 strong PEA at Maud Creek – Pre-Tax NPV of A$201M, IRR of 116% 12-Apr-16 Announces strong Q1 Results; record quarterly $3.00 29-Oct-15 production at Fosterville Additional HG 26-Apr-16 exploration results at Eric Sprott increases Fosterville with Eagle 29-Feb-16 ownership to 17.9% by Share Price (CAD) Zone extended Near-mine HG gold purchasing additional mineralization 16.2M shares at C$2.80 discovered at Lower Phoenix $2.00 4-April-16 Eric Sprott purchases 10M shares at C$2.25 $1.00 12-Feb-16 Becomes debt-free – 18-Jan-16 Announces intention to 09-Sept-15 Announces 2015FY redeem convertible Strong exploration results; 223koz at debentures results at US$987/oz AISC within Fosterville guidance $0.00 16-Jul-15 16-Sep-15 16-Nov-15 16-Jan-16 16-Mar-16 16-May-16 Source: FactSet, Bloomberg, company disclosure 9 TSX:NMI

Peer Group Comparison Price / Consensus 2016E CFPS (ratio) EV / Consensus 2016E EBITDA (ratio) 13.1x 10.3x 8.3x 9.9x Avera rage ge: 7.4x 9.2x 7.3x Average: 8.6x 6.9x 6.6x 6.5x 6.2x 8.1x 7.5x 5.9x 6.6x 5.5x 6.7x 6.2x 4.4x 5.5x 5.1x EV / 2016E Prod. (US$/oz)  All comparison metrics present an $4,700 $4,998 opportunity for a continued significant Average: $3,774 $3,435 $3,465 $3,670 $3,683 $3,769 $3,863 valuation opportunity with Newmarket Gold $2,225 $2,386 Source: FactSet, Bloomberg, company disclosure, available equity research. Averages exclude Newmarket as at May 13, 2016. 10 TSX:NMI