PRODUCING GOLD IN CALIFORNIA PRODUCING GOLD IN CALIFORNIA TSX: GQM | OTCQX: GQMNF | June 2, 2016 TSX: GQM | OTCQX: GQMNF | June 2, 2016 2016 Annual General Meet 2016 Annual General Meeting of Shar ing of Shareholders eholders
Pr Presenters esenters ¡ ¡ ¡ Thomas M. Clay – Chairman & Interim CEO Official Business of the Meeting Andrée St-Germain – VP Finance & CFO Corporate Overview
Cautionary Statements Cautionary Statements The information in this presentation includes certain “forward-looking information” and “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933 (as amended), section 21E of the Securities Exchange Act of 1934 (as amended), the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation . All statements, other than statements of historical fact, included herein including, without limitation, plans for and intentions with respect to our properties, statements regarding intentions with respect to the Soledad Mountain project’s (the “Project”) current and future operating or financial performance including production, rates of return, recoveries, and operating costs are forward-looking statements. Statements concerning Mineral Reserve Estimates and Mineral Resource Estimates are also forward-looking statements in that they reflect an assessment, based on certain assumptions, of the mineralization that would be encountered and mining results if the Project was mined in the manner described. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from statements in this presentation regarding our intentions include, without limitation, risks and uncertainties regarding: the operation of the Project, including additional capital requirements for the Project or future acquisitions; unexpected liabilities of changes in the cost of operations, including costs of extracting gold and silver; refining costs; operating hazards and risks inherent in mining operations; changes to the political environment, laws or regulation, or more stringent enforcement of current laws or regulations in the United States or California; the ability of Golden Queen Mining Company, LCC to obtain and maintain licenses, access rights or permits, required for current and future planned operations; unexpected uninsurable risks that may arise; risks associated with any future hedging activities; equipment breakdowns and non-compliance with environmental and permit requirements. Other risks and uncertainties include risks related to volatility in global equities, commodities, foreign exchange, market price of gold and silver and a lack of market liquidity; changes in planned work resulting from logistical, technical or other factors; that results of operations on the Project will not meet projected expectations due to any combination of technical, operational or market factors; uncertainties involved in the interpretation of technical data and the estimation of gold and silver resources and reserves; and other risks and uncertainties disclosed in the section entitled "Risk Factors“ contained in our Annual Report on Form 10-K for the year ended December 31, 2015. Forward looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in our business, including risks inherent in mining. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, should not to put undue reliance on forward-looking statements. Any forward-looking statement made by us in this presentation is based only on information currently available. Technical information in this presentation was reviewed and approved Sean Ennis, P . Eng., P .E., an independent consultant of the Company and a Qualified Person as defined by National Instrument 43-101. 3
¡ 2015 Achievements 2015 Achievements ¡ ¡ Tertiary Section ertiary Section ü Project construction completed in Q4 2015 on-line with budget High Pr High Pressur essure Grinding Roll (HPGR) e Grinding Roll (HPGR) ü Ore stockpiling commenced ü Full power was provided to the project ü Commissioning of the Crushing-Screening plant and the Conveying-Stacking system commenced ü Pad loading of agglomerated ore was initiated ¡ ¡ ¡ 4
2015 Financial Highlights 2015 Financial Highlights • The Company made a Item (1) December 31, 2015 contribution of $12.5mm to the 37,587,311 Cash joint venture in June 2015 to maintain its 50% interest in the Property, plant, equipment and mineral 128,562,572 Project. interests • The Company re-financed its Total assets 169,444,179 existing loan and repaid its convertible debentures in June Working capital / (deficit) (7,743,109) 2015 Current liabilities 47,722,334 Long term liabilities 27,330,560 Net income (loss) and comprehensive (5,461,205) ¡ income (loss) (2) Basic income (loss) per share (2) (0.05) Diluted income (loss) per share (2) (0.05) (1) These consolidated results include the accounts of Golden Queen, Golden Queen Mining Holdings Inc. and GQM LLC. GQM LLC meets the definition of a Variable Interest Entity. Golden Queen has determined that it is the member of the related party group that is most closely associated with GQM LLC and, as a result, is the primary beneficiary who consolidates GQM LLC. Golden Queen's economic interest in GQM LLC is 50%. (2) Attributable to GQM LTD. 5
¡ 2016 Achievements & Milestones 2016 Achievements & Milestones ¡ ¡ Tertiary Section ertiary Section High Pr High Pressur essure Grinding Roll (HPGR) e Grinding Roll (HPGR) Leaching commenced and Merrill-Crowe plant commissioned in early Q1 • Inaugural gold pour on March 1 st • 7 day per week operations in mining and processing • Production to date is 2,370 ounces of gold and 26,000 ounces of silver • Maintain a safe workplace for our 140 employees; stellar safety record • Conduct mine optimization studies to ensure shareholder value is maximized • Commercial production anticipated in the second half of 2016 • 6
¡ Relative Shar Relative Share Perfor e Performance mance ¡ ¡ Heap Leach Pad & Heap Leach Pad & Merrill-Cr Merrill-Crowe Plant owe Plant Last ¡6 ¡ months ¡ performance ¡ = ¡100% ¡ Crushing-Scr Crushing-Screening Plant & eening Plant & Assay Laboratory Assay Laboratory Mining Mining North-W North-West Pit est Pit Last ¡12 ¡ months ¡ performance ¡ = ¡50% ¡ Source: TSX Infosuite 7
¡ Market Envir Market Environment onment ¡ ¡ Heap Leach Pad & Heap Leach Pad & Merrill-Crowe Plant Merrill-Cr owe Plant Crushing-Screening Plant & Crushing-Scr eening Plant & Assay Laboratory Assay Laboratory Mining Mining Source: goldprice.org Source: Bloomberg A glittering start to 2016 A glittering start to 2016 The long-term outlook for gold is str The long-ter m outlook for gold is strong ong ¡ North-West Pit North-W est Pit The gold price staged a spectacular rally in the first quarter of this year, rising Demand for gold continues to outstrip supply. Jewellery and by 17% in US dollar terms. This was its best performance in almost three technology applications make up more than 65% of demand, decades, significantly outperforming other major stock, bond and commodity and most gold is bought in the world’s fastest-growing emerging indices. The rally, in our view, was supported by five key factors: markets. China and India account for more than half of total Ongoing concerns about economic growth and financial stability in consumer demand, annually. • emerging markets A hiatus in the rise of the US dollar Mine production, however, accounted for only 74% of gold demand • The implementation of negative interest rate policies by leading global in 2014. • central banks The return of pent up investment demand for gold In addition, central banks are no longer net sellers of gold, so the • Price momentum (i.e. investors following gold’s upward trend). rest of the demand is currently fulfilled with recycled gold. • We believe that these factors will continue to support both investment and With demographic and economic trends predicting increasing central bank demand in the coming quarters. Combined with an analysis from wealth and expanded populations in the world’s two past bull-bear cycles, this suggests that we may be entering a new bull market largest gold markets, gold demand has the potential to continue rising. for gold. 10 Source: World Gold Council Source: World Gold Council
¡ The Golden Queen Opportunity The Golden Queen Opportunity ¡ ¡ P Gold and silver producer P US-based project, fully funded to positive cash flows P Located in a mining- friendly jurisdiction with existing infrastructure and supportive stakeholders P Robust project economics; low cost structure P Construction 100% complete, in- line with budget P Accomplished leadership team & Excellent joint venture partners Inaugural gold pour on Mar Inaugural gold pour on March 1, 2016 ch 1, 2016 9
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