GUY Investor Presentation June 2013

32
Investor Presentation June 2013

Transcript of GUY Investor Presentation June 2013

Page 1: GUY Investor Presentation June 2013

Investor Presentation

June 2013

Page 2: GUY Investor Presentation June 2013

www.guygold.com 2

Forward Looking Statement

TSX : GUY

This presentation of Guyana Goldfields Inc. (the "Company") contains statements that constitute "forward-looking statements." Such forward-looking statements

involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or developments in our industry, to

differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are

statements that are not historical facts and are generally, but not always, identified by the words "expects," "aims," "plans," "anticipates," "believes," "intends,"

"estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred from

the interpretation of drilling results and information concerning mineral resource and mineral reserve estimates may also be deemed to be forward looking statements,

as such information constitutes a prediction of what might be found to be present when and if a project is actually developed. Forward-looking statements this

document includes are statements regarding: the Company's expectations regarding drilling and exploration activities on properties in which the Company has an

interest; and the Company's statements regarding estimates of reserves and resources on properties in which the Company has an interest. There can be no assurance

that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are

cautioned not to place undue reliance on these forward-looking statements that speak only as of their respective dates. Important factors that could cause actual

results to differ materially from the Company's expectations include among others, risks related to fluctuations in mineral prices; uncertainties related to raising

sufficient financing to fund planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other

factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the

estimation of resources and reserves; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating

costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery

rates may not be achieved; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost

overrun or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from the Company's operations; risks associated

with title to mineral properties; and other risks and uncertainties discussed appear elsewhere in the Company's documents filed from time to time with the Toronto

Stock Exchange and Canadian securities regulators. These statements are based on a number of assumptions, including assumptions regarding general market

conditions, the availability of financing for proposed transactions and programs on reasonable terms, and the ability of outside service providers to deliver services in a

satisfactory and timely manner. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the

statements are made. Except as expressly required by applicable securities laws, the Corporation undertakes no obligation to update these forward-looking statements

in the event that management's beliefs, estimates or opinions, or other factors, should change.

This presentation uses the terms "Inferred Resource", "Indicated Resource", “Measured Resource” and "Mineral Resource". The Company advises readers that

although these terms are recognized and required by Canadian securities regulations (under National Instrument 43-101 "Standards of Disclosure for Mineral

Projects"), the US Securities and Exchange Commission does not recognize these terms. Readers are cautioned not to assume that any part or all of the mineral

deposits in these categories will ever be converted into reserves. In addition, "Inferred Resources" have a great amount of uncertainty as to their existence, and

economic and legal feasibility. It cannot be assumed that any part of an Indicated or Inferred Mineral Resource will ever be upgraded to a higher category. Under

Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a Preliminary

Assessment as defined and permitted under National Instrument 43-101. Readers are cautioned not to assume that part or all of an Inferred Resource exists, or is

economically or legally mineable. The Mineral Resources stated in this presentation are not Mineral Reserves and, in the absence of a current feasibility study, do not

demonstrate economic viability. The determination of Mineral Reserves can be affected by various factors including environmental, permitting, legal, title, taxation,

socio-political, and marketing issues.

Page 3: GUY Investor Presentation June 2013

www.guygold.com 3

Corporate Snapshot

Symbol: TSX: GUY

Basic Shares Issued 126,125,149

Options 7,752,558

Warrants 0

Fully-diluted shares 133,877,707

52 week: Hi/Lo C$4.40 / C$1.33

Market Cap (at C$ 1.50) C$189 million

Cash Position (May 31, 2013) C$122 million

Debt $0

TSX : GUY

Top 15 Shareholders Shares %

The Baupost Group 24.9M 20.0%

Franklin Resources (Templeton) 11.9M 9.4%

Van Eck 8.0M 6.3%

IFC (World Bank Group) 6.9M 5.5%

Patrick Sheridan Jr. (Founder) 6.6M 5.2%

Jennison 4.2M 3.3%

First Eagle Investments 4.0M 3.2%

Fidelity Investments 2.9M 2.3%

AMG Analysen 2.7M 2.2%

Raiffeisen Kapitalanlage-Gesellschaft 2.0M 1.6%

Sprott Asset Mgmt 1.5M 1.2%

Altus 1.5M 1.2%

Carmignac 1.2M 0.9%

Gold 2000 1.1M 0.8%

TD Asset Mgmt 0.8M 0.6%

Page 4: GUY Investor Presentation June 2013

www.guygold.com 4

Executive Summary

TSX : GUY

Robust Economics

� Life of mine production of 3.3Moz at average cash costs of $527/oz (royalty included), in lower

quartile range

� After-tax NPV of $800M and IRR of 38% at $1,300/oz gold and 5% DR

� Payback of just over 3 years at $1,300/oz gold

Experienced Management

Team

� New management team focused on advancing project to production

� Project team expanding, EPCM/EPC Contracts in discussion

Staged Approach

Minimizes Capital

� Upfront capex of $205M (50% already raised) to build open pit and a 5,000 tpd mill, with

underground development and mill expansion to 10,000 tpd funded by operating cash flows.

Simple Mine Plan � Infrastructure build is already in progress; On track for initial production by Q1 2015

Mining &

Metallurgy

Open Pit � Compact design and low strip ratio

Underground � Sublevel retreat method offers significantly low opex costs

Simple

Metallurgy� Free milling gold ore with excellent gold recovery of +94%

Mining Friendly Jurisdiction � Aurora is fully licensed and permitted

Growth Potential

� Extensive additional mineralization at depth beyond current mine plan and potential expansion of

open pits

� Unexplored 400,000+ acres land package

Page 5: GUY Investor Presentation June 2013

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Robust Economics

TSX : GUY

Financials @ 5% Discount RateJan 2013

43-101 Feasibility Study

Gold Price Base Case ($/oz) 1,300

Mine Life 17 yrs

Initial Production Start Date Q1 2015

Average Mill Throughput (tpd) 5,000/10,000

Mine Depth (metres) 1,037 (970mbsl)

Strip Ratio (waste:ore) 4.7:1

Average Gold Grade (g/t) 2.74

Gold Recovery (%) 97(sap) 94.4(fresh)

Total Gold Production (Moz) 3.29

Avg Operating Cash Cost w/Royalty LOM ($/oz) 527

Initial Capital Expenditure ($M) 205

Pre-Tax NPV ($M) 1,119

Pre-Tax IRR (%) 44

Pre-Tax Payback (years) 3.1

Page 6: GUY Investor Presentation June 2013

www.guygold.com 6

Robust Economics (Cont’d)

TSX : GUY

Financials @ 5% Discount Rate Units$1,000/oz

gold price*

$1,300/oz

gold price

(base case)

$1,470/oz

gold price**

$2,000/oz

gold price

Average Operating Cash Cost (LOM) $/oz 423 423 423 423

Average Operating Cash Cost w/Royalty (LOM) $/oz 473 527 540 583

Pre-Tax NPV $M 593 1,119 1,453 2,495

After-Tax NPV $M 429 800 1,034 1,764

After-Tax IRR % 25 38 45 65

Payback (After-Tax) Years 4.6 3.4 2.3 1.5

*Royalty decreases from 8% to 5% at gold prices at and below US$1,000/oz

**3 year trailing average at November 30, 2012

After-Tax NPV ($M) After-Tax IRR (%)

Sensitivity

Analysis

Base

Case80% 90% 100% 110% 120%

Gold Price 800 439 620 800 979 1,158

Opex 800 924 862 800 737 675

Capex 800 910 855 800 744 689

Sensitivity

Analysis

Base

Case80% 90% 100% 110% 120%

Gold Price 38% 26% 32% 38% 44% 49%

Opex 38% 42% 40% 38% 36% 34%

Capex 38% 49% 43% 38% 34% 30%

Leverage to

gold price,

but insulated

against

inflation

Page 7: GUY Investor Presentation June 2013

TSX : GUY www.guygold.com 7

The Region

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TSX : GUY www.guygold.com 8

Mining Friendly Jurisdiction & Government

� Aurora is fully licensed and permitted

� Guyana is the only English speaking country in South America

� British common law and secure tenure - part of the Commonwealth

� Democratically elected government under parliamentary system

� Long history of significant gold production:

� Gold was the largest export of the country in 2012 with 438,635 oz

� Mining License Received and Mineral Agreement Signed (Nov.18/11):

� Royalty:

� 5%: Gold price $1,000/oz or less

� 8%: Gold price $1,000/oz +

� Corporate income tax:

� 30% with no withholding tax on interest payments

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TSX : GUY www.guygold.com 9

Logistics & Infrastructure

Road

Access to

Aurora

Page 10: GUY Investor Presentation June 2013

www.guygold.com 10TSX : GUY

Experienced Management Team

Management BACKGROUND

Patrick Sheridan Jr.

Founder and Executive

Chairman

� Over 20 years of experience in the mining industry

� Has actively explored in Guyana since 1996 and is the

founder of Guyana Goldfields and lead the discovery

of the Aurora and Sulphur Rose deposits

Scott A. Caldwell

President & CEO

� Mining engineer with 30+ years experience building

and operating gold and base metal mines worldwide

� Former President, CEO and Director of Allied Nevada

Gold Corp. from 2006 - 2013

Peter Lello Galassi

(“Lello”)

COO

� 15+ years of international project development and 20

years as a senior officer in the United States Air Force.

� Formerly Senior Project Manager for Rio Tinto Iron

Ore Simandou Project in Guinea, West Africa.

� He is based in Guyana and is responsible for daily

operations at the Aurora Gold Project.

Paul J. Murphy

Executive VP, Finance

and CFO

� Over 40 years of financial experience and former Head

of PricewaterhouseCoopers LLP Western’s World

Mining Practice

Management BACKGROUND

Dan Noone

VP, Exploration

� Over 20 years of experience of international

mineral exploration and development

� Former VP of Peru for Aquiline Resources

St. John Lees

VP, Projects

� Formerly responsible for overseeing the

engineering, procurement and construction

management for the infrastructure component of

Rio Tinto Iron Ore Atlantic’s Simandou Project

Violet Smith

Country Manager

� Over 20 years of experience in operations

management and has been involved with Guyana

Goldfields since its inception

Alexander Po

Exploration Manager

� Mining engineer and exploration geologist with

strong management experience with projects in a

numbers of different countries

Jacqueline Wagenaar

VP, IR & Corp. Comm

� Significant experience with investor relations

programs for several Canadian mining companies

with international assets

Page 11: GUY Investor Presentation June 2013

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Staged Approach Minimizes Capital

TSX : GUY

Capital Expenditures (US$M)Initial Capital

(2013 – 2014)

Expansion Capital

(2015 – 2017)

Sustaining Capital

(2018 – 2031)

Mine Equipment Fleet $13 $11 $10

General Mobile Equipment $2 - -

Ore Crushing and Handling $18 $2 -

Process Facility $49 $19 $18

On-Site Infrastructure $25 $12 -

Ancillary Buildings $8 $1 -

Tailings & Reclamation $5 $3 $3

Off-Site Infrastructure $12 - -

Indirect Costs (inclusive of EPCM) $36 $7 -

Owner's Cost $18 $1 -

Underground Development - $82 $275

Contingency $19 $15 $41

Closure Costs - - $9

Total Capital $205 $153 $356

Capital required up to

Commercial ProductionFunded from Cash Flow

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www.guygold.com 12TSX : GUY

0

50

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350

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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Pro

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n O

un

ces

(00

0)

Production Year

Contained GoldUnderground

Open Pit

Saprolite

Stockpile Reclaim (Sap & Fresh)

Evaluation of including known resources outside

current mine plan to offset excess milling capacity

3.3 Moz Total Gold Recovered with Average Annual Gold Production (LOM) of 194 Kozs

Simple Mine PlanAverage of 231kozs/yr

Peak at 350koz

Page 13: GUY Investor Presentation June 2013

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Cash Flow Profile

Units Years 1-5 Years 6-10 Life Of Mine

Operating costs¹ $/oz 306 380 423

Royalty² $/oz 104 104 104

Corporate Taxes $/oz 84 199 154

Development Capital $/oz 142 - 39

Corporate G&A $/oz 26 17 24

Exploration³ $/oz 17 11 16

Sustaining $/oz 104 103 113

All-In Cash Costs $/oz 783 814 873

Ounces Produced oz 903,000 1,405,000 3,288,000

Free Cash Flow $M 466.9 682.8 1,404.0

¹ Operating costs include mining and processing costs

² Assumes US$1,300/oz gold price

³ Assumes expense of $3M/yr

Page 14: GUY Investor Presentation June 2013

TSX : GUY www.guygold.com 14

All-In Cost Developer Peer Comparison

$1,325 $1,246 $1,238

$1,148 $1,125 $1,121 $1,107 $1,105 $1,086 $1,041 $1,041 $1,000 $989 $978 $947 $927 $857 $835

$773

$574 $673

$742 $812

$612

$826 $707

$564 $562 $576 $604 $496 $530 $588 $568

$483 $391 $419 $383

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All-In Cash Costs Cash Costs (Incl. Royalties)

$967 $927 $881 $856 $852 $851 $828 $796 $782 $766 $766 $764 $760 $758 $718 $698 $649 $612

$448 $747 $624 $604 $583 $584 $559 $570

$727 $623

$516 $504 $531 $471 $453

$391 $390 $398 $531

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All-In Cash Costs Cash Costs (Incl. Royalties)

Life of Mine Cash Costs (US$/oz Au)

Years 1-5 (US$/oz Au)

Source: BMO Research. Note: Cash costs are net of by-product credits; all-in cash costs calculated as: (operating costs less by-product credits, plus: royalties, corporate G&A, exploration, corporate taxes, and total

capital expenditures (sustaining and development)); development capex excluded in Years 1-5

Page 15: GUY Investor Presentation June 2013

$3,903

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

$2,600

$2,800

AN

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All-in Cost (Fully Loaded) (2013) All-in Cost (Fully Loaded) (2014) All-in Cost (Fully Loaded) (2015)

Total Cash Costs + Exploration + Capital (Development and Sustaining) + Corporate G&A + Corporate Taxes

2013 Average = $1,690/oz

2014 Average = $1,571/oz

2015 Average = $1,485/oz

TSX : GUY www.guygold.com 15

All-In Cost Producer Comparison

*Source: Scotia Capital Equity Research Aril 2, 2013

Page 16: GUY Investor Presentation June 2013

www.guygold.com 16

Operating Costs (LOM)

TSX : GUY

Operating ExpensesJan 2013

43-101

Feasibility Study

Open Pit cost per tonne $2.42

Open Pit strip ratio (waste:ore) 4.7:1

Mining cost per tonne to the mill $13.68

Underground cost per tonne $19.28

Processing cost per tonne $13.78

G&A cost per tonne $3.83

Page 17: GUY Investor Presentation June 2013

www.guygold.com 17

Simple Mine Plan

TSX : GUY

Measured

Indicated

Inferred

Open pit mining begins at

~5,000 tpd in Rory’s Knoll

and is completed in two

years

Rory’s Knoll underground

follows at ~5,000 tpd

while the satellite pits are

mined concurrently also

at ~5,000 tpd

Once satellite pits are

exhausted, Rory’s Knoll

underground continues

for an additional 8 years

[2018-2023] [2018-2023]

[O/P: 2015-2017]

[U/G: 2018-2031]

[2018-2022]

[2023]

Rory’s

Knoll

Walcott HillAleck Hill

North

Aleck HillMad Kiss

Page 18: GUY Investor Presentation June 2013

www.guygold.com 18

Site Plan

TSX : GUY

Tailings Pond

Waste Rock

Stockpile

Access Road

Pits

Page 19: GUY Investor Presentation June 2013

www.guygold.com 19

Proven Underground Mining Method

TSX : GUY

2 years of development (2016-2017)

Good ore recovery since no crown pillar is required

Simple extraction sequence

Detailed hydrogeological and geotechnical studies show minimal

surface subsidence and manageable water inflows

Sublevel Retreat Mining

-970m (bsl)

-970m

Page 20: GUY Investor Presentation June 2013

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Proven Underground Mining Method

TSX : GUY

Open Benching and SLR Mines

• Finch Mine, South Africa

• Koffiefontain, South Africa

• Ekati Mine, NWT

• Diavik Mine, NWT

SLC Mines

• Stobie Mine, Ontario

• Granduc Mine, B.C.

• Craigmont Mine, B.C.

• Ekati Mine, NWT

• Kiruna Mine, Finland

• Ridgeway Mine, Australia

• Telfer Mine, Australia

• Perseverance Mine, Australia

• Big Bell Mine, Australia

• Harmony Mine, Australia

• Mt Lyall, Australia

• Numerous mines in China and RussiaDiavik Diamond Mine, NW Territories

Ekati Diamond Mine, NW Territories

Finch Mine, South Africa

Page 21: GUY Investor Presentation June 2013

TSX : GUY www.guygold.com 21

Simple Metallurgy

Page 22: GUY Investor Presentation June 2013

TSX : GUY www.guygold.com 22

Effective Water Management – River Dike

2 river dikes, 1.5 km length in total

60 metres wide and 9 metres high

Dike is engineered to 10,000 year flood event

River is 225 metres away from the pit

Page 23: GUY Investor Presentation June 2013

TSX : GUY www.guygold.com 23

Ongoing Construction Work

� Detailed engineering contract for early works awarded to Tetra Tech

� Includes construction drawings for the tailings storage facility,

river dike, and water diversion dams.

� Ongoing Discussions with various potential consultants and

contractors for EPCM or EPC contracts

� Contract(s) to be awarded Q2 2013

� On and off-site early works construction activities remain on

schedule on such items as road works, camp construction, Buckhall

port development, etc

Page 24: GUY Investor Presentation June 2013

Activity2013 2014

2015 2016 2017 2018 2019 2020 2021 2022 2023Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Debt Financing

Early works engineering & construction

Final Design & Construction

Open Pit Production

Underground Development

Underground Production

Exploration

www.guygold.com 24

Accelerated Timeline to Production

TSX : GUY

Page 25: GUY Investor Presentation June 2013

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Growth Potential – Resource Upside

TSX : GUY

� Room to grow outside current mine plan:

� Below Satellite pits (Aleck Hill, Mad Kiss

and Walcott Hill):� Indicated: 570,000 oz Au at 3.93 g/t

� Inferred: 290,000 oz Au at 4.11 g/t

� Below -970m at Rory’s Knoll:� Indicated: 1,120,000 oz Au at 3.87 g/t

� Inferred: 1,280,000 oz Au at 4.25 g/t

� Excess mill and equipment capacity later in

the mine life (year 2024 and beyond) allows

for throughput flexibility

Page 26: GUY Investor Presentation June 2013

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� N-1 Trench: 1.41 g/t Au over 52 m,

incl 1.80 g/t over 32 m and 4.34 g/t

Au over 12 m

� N-1 Hole: 4.35 g/t Au over 20 m

incl 6.42 g/t Au over 13 m

� S-3 Trench: 11 g/t Au over 22 m

TSX : GUY

Exploration

� Initial $2.8M Exploration

Budget composed of soil,

stream sediment

sampling and trenching

� Material results followed

up with drilling and

increased resources

Results to date:

277, 780 oz Au Inferred

289,250 Au Indicated

Page 27: GUY Investor Presentation June 2013

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n.a. 32% n.a. 24% 38% 16% 50% 23% n.a. 18% 47% 30%

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LOM Average Production (Kozs) LOM Cash Cost ($/oz)

Development Capital (US$M) US$1,300 Flat Gold Project 5% After Tax NPV (US$B)

Project IRR (%)

$3

18

$4

19

$4

58

$4

87

$4

94

$5

27

$5

49

$5

67

$5

75

$6

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$6

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$7

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5

$1

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$1

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$1

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$2

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$3

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$3

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$3

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$5

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$7

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Source: Guyana Goldfields NI 43-101 Feasibility Study, BMO CM Equity Research and select Street Research for peers Source: Guyana Goldfields NI 43-101 Feasibility Study, BMO CM Equity Research and select Street Research for peers

Note: Cash costs based on a US$1,300 flat gold price (except CNL, CSI and SUE)

Source: Guyana Goldfields NI 43-101 Feasibility Study, BMO CM Equity Research and select Street Research for peers Source: Guyana Goldfields NI 43-101 Feasibility Study, BMO CM Equity Research and select Street Research for peers

Note: Project after tax NPVs and IRRs based on a US$1,300 flat gold price and 5% discount rate (except CNL, CSI and SUE)

27

Attractive Positioning vs. Comparables

www.guygold.comTSX : GUY

Page 28: GUY Investor Presentation June 2013

Guyana Goldfields

Belo Sun

Aureus

Lydian

Gryphon

Romarco

RubiconTorex

ContinentalSulliden

5.0 10.0

--

50%

100%

150%

200%

250%

300%

350%

400%

-- 1.0 2.0 3.0 4.0 5.0 6.0

Un

fun

de

d D

ev

elo

pm

en

t C

ap

ex

/ M

ark

et

Ca

p (

%)

Resource Grade (g/t Au)

R&R (mm oz Au) Bubble Size

Open Pit

Underground / Open Pit

Underground

Orezone

Source: BMO CM Equity Research, company filings and select Street Research for peers

1. Gold only resource grade shown.

2. Size of bubble indicates total reserves and resources (Au only).

Lower Financing

Risk

HigherFinancing

Risk

(2)

(1)

(9.8 g/t)

(16.5 g/t)

28

Attractive Positioning – Highly Financeable

www.guygold.comTSX : GUY

Page 29: GUY Investor Presentation June 2013

TSX : GUY www.guygold.com 29

After tax NPV $800M, IRR of 38%, 3 yr payback

Staged approach minimizing capital

6.5M oz M&I and 1.82M oz Inferred @ +3g/t Au

Fully functional road access in place

Fully licensed and permitted

Already progressing

Extensive mineralization beyond current plan

Management

Region

Country (government and community)

Sustainability

Exploration Upside

Focused on advancing project to production

Guiana Shield – known gold region

Pro-mining, excellent relations

International standards with IFC

Unexplored land package of 400,000 acres

Aurora Gold Project

� Robust Economics

� Open Pit & Underground Mining

� Resource and Grade

� Key Infrastructure

� Permitting

� Development

� Growth Potential

Summary

Page 30: GUY Investor Presentation June 2013

Appendix A: Guyana Goldfields

Mineral Reserves & Resources

Page 31: GUY Investor Presentation June 2013

www.guygold.com 31

Mineral Reserves & Resources

TSX : GUY

Gold Price $1,300/oz Quantity (Mt) Grade (g/t) Contained Gold (Moz)

Proven ReservesO/P Saprolite 0.168 2.64 0.014

O/P Fresh 2.207 3.07 0.218

Total Proven 2.375 3.04 0.232

Probable ReservesO/P Saprolite 4.955 1.70 0.270

O/P Fresh 6.343 3.03 0.618

U/G 25.851 2.84 2.357

Total Probable 37.219 2.72 3.245

Total P & P Reserves¹ 39.524 2.74 3.477

¹ Mineral reserves included in mineral resources.Underground in-situ cut-off grade of 1.2 g/t for Rory's Knoll. Open pit fresh ore in-situ cut-off grade of 0.5 g/t for all deposits. Open pit saprolite ore in-situ cut-off of 0.3 g/t for all deposits.

Measured & Indicated Resources

O/P 32.77 2.62 2.76

U/G 30.06 3.91 3.78

Total M&I Resources 62.83 3.24 6.54Inferred Resource

O/P 5.12 1.54 0.25

U/G 11.81 4.12 1.56

Total Inferred Resource 16.93 3.34 1.82

Page 32: GUY Investor Presentation June 2013

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Scientific, Technical and Securities Information

TSX : GUY

Scientific and Technical Information

The qualified person for the mineral resource and reserve estimates and other scientific and technical information herein are as follows: Glen

Cole, P.Geo. Jarek Jakubek, C.Eng., John Lambert, P.Geo., D Erik Spiller, MMSA and Richard Tocher, P.E, (the “QPs”) who are independent of the

Company and have approved the contents of this presentation. The qualified person for the other scientific and technical information in this

presentation, is Daniel Noone, BApSci (Geo), MBA, and has approved the contents of this presentation.

Technical and scientific information contained herein, including the mineral resource and reserve estimates relating to the Aurora Gold Project

is derived from the “Updated Feasibility Study, Aurora Gold Project, Guyana, South America” dated January 29, 2013 (the “Technical Report”).

We have filed the Technical Report under our profile at www.sedar.com. For details of the data verification procedures employed by the QPs

and the key assumptions, parameters and methods used to estimate the mineral resource and mineral reserve estimates, please see the

Technical Report. For information about known legal, political, environmental, or other risks that could materially affect the potential

development of the mineral resources or mineral reserves, please see the Technical Report.

Securities Laws

This presentation does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would

be prohibited. This presentation is not an offer to sell, or a solicitation of an offer to purchase, any securities in the United States. The securities

referred to in this presentation will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States

except pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933 and applicable state securities laws.

The information contained in this presentation does not and is not intended to constitute a "valuation," "formal valuation," "appraisal," "prior

valuation," or a "report, statement or opinion of an expert" for purposes of any securities legislation in Canada or otherwise.

Currency

Unless otherwise indicated, all dollar values herein are in United States dollars.