Primero bmo conference presentation 2015 final v2

TSX P I NYSE PPP I

BMO 2015 GLOBAL METALS & MINING CONFERENCE February 22-25, 2015

TSX P I NYSE PPP I

This presentation may contain “forward-looking” statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, ”estimates”, ”forecasts”, ”intends”, ”anticipates” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, ”could”, “would”, ”might”, or “will be taken”, “occur” or “be achieved”, or the negative of these words or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Such factors include various risks related to the Company’s operations, including, without limitation, fluctuations in spot and forward markets for gold, silver and other metals, fluctuations in currency markets, changes in national and local governments in Mexico and the speculative nature of mineral exploration and development, risks associated with obtaining necessary exploitation and environmental licenses and permits, and the presence of laws that may impose restrictions on mining. A complete list of risk factors are described in the Company’s annual information form and will be detailed from time to time in the Company’s continuous disclosure, all of which are, or will be available, for review on SEDAR at www.sedar.com. This presentation uses the terms “measured resources”, “indicated resources” and “inferred resources”. The Company advises readers that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), the United States Securities and Exchange Commission does not recognize them. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted in to 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 all or any part of an 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 under NI43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward-looking statements, there may be other factors that cause its performance not to be as anticipated. The Company neither intends nor assumes any obligation to update these forward-looking statements or information to reflect changes in assumptions or circumstances other than required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those currently anticipated. Accordingly, readers should not place undue reliance on forward-looking statements. Unless otherwise indicated, all dollar values herein are in US$.

Cautionary Statement

2

TSX P I NYSE PPP I 3

Investment Opportunity EMERGING MID-TIER GOLD PRODUCER

High-Grade Production with Organic Growth

Top Mining Jurisdictions in the Americas

Strong Financial Position

Disciplined Cost Management

Proven Track Record

Corporate Office (Toronto)

Producing Mine Development Project Exploration Property

Black Fox

Grey Fox

San Dimas

Cerro Del Gallo

Ventanas

TSX P I NYSE PPP I

2014 Achievements and 2015 Objectives

Reduced All Injury Frequency Rate by 36%

Met guidance and increased production by 57% to a record 225,100 AuEq oz

Diversified with acquisition of Black Fox operating mine

Expanded San Dimas to 2,500 TPD and announced further expansion to 3,000 TPD

Reinvested in asset expansion and optimization, resulting in all-in sustaining costs of $1,222/oz

Maintained strong balance sheet

4

INCREASED PRODUCTION BY 57%

Zero fatalities and reduce All Injury Frequency Rate by 15%

Increase production ~20% to 250,000 to 270,000 AuEq oz

Continue to grow gold reserves

Advance 3,000 TPD San Dimas expansion and operate Black Fox underground at 1,000 TPD

Optimize operations to achieve $1,100/oz or below all-in sustaining costs

Maintain strong balance sheet

2014 ACHIEVEMENTS 2015 OBJECTIVES

http://cdn.hubcloud.com.au/wp-content/blogs.dir/10/files/sites/10/2014/03/Green-tick-to-go-on-the-Professionals-Christies-Beach-real-estate-blog1.png






TSX P I NYSE PPP I

111

143 161

180 190

215 64

80

100

100

2012 2013 2014 2015E 2016E 2017E

Black Fox San Dimas

High-Grade Production with Organic Growth HIGHEST RESERVE GRADE AMONGST PEERS

Source: Company disclosure, based on available data.

300-350

250-270

280-300

Targeted Production Growth Profile (AuEq koz) 1,2

225

Average Gold Reserve Grade (g/t)

5

1.61

1.15 1.14 1.13

0.70

0.56 0.54

P AGI BTO AUQ NGD AR TMM

Peer Average

3

*See final slide for footnotes.

TSX P I NYSE PPP I

Top Mining Jurisdictions in the Americas

6

DIVERSIFIED, STABLE, MINING FRIENDLY JURISDICTIONS

Corporate Office TORONTO, ONTARIO

Producing Mine Development Project Exploration Property

Black Fox Mine TIMMINS, ONTARIO

Grey Fox Exploration Property TIMMINS, ONTARIO

San Dimas Mine SINALOA-DURANGO BORDER

Cerro Del Gallo Project GUANAJUATO

Ventanas Exploration Property DURANGO

Operating in attractive mining jurisdictions with: Long mining history Stable Government Established permitting process

Located in areas with: Existing infrastructure Skilled local workforce Suppliers Community support

70% MEXICO

30% CANADA

2015E PRODUCTION

BY REGION

http://upload.wikimedia.org/wikipedia/commons/3/38/Canada_blank_map.svg

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=0CAgQjRw&url=http://en.wikipedia.org/wiki/Flag_of_Canada&ei=sbbkVOiaAc61yASJx4K4Aw&psig=AFQjCNFDwIFT8zoo-uP_OZMzREi-Aafhzg&ust=1424361521151182

TSX P I NYSE PPP I


Exchanges TSX: P NYSE: PPP

Balance Sheet (December 31, 2014 – Pro Forma Convertible Debt Financing)

Cash

Line of Credit5

Total Liquidity

Convertible Debenture (6.5%, due Mar. 2016, US$14 conversion)

Convertible Debenture (5.75%, due Feb. 2020, US$6.55 conversion)

Line of Credit Draw Down5 (Due May 2017)

Total Debt4

$99 million

$35 million

~$134 million

$48 million

$75 million

$40 million

$163 million

Capital Structure

Common Shares Outstanding 6

Fully Diluted 7

Market Cap. At Feb. 19, 2015

162 million

192 million

C$656 million Source: 2015E-2016E Operating Cash Flow – Capital IQ consensus CFPS multiplied by current 162 million shares outstanding.

$134M

STRONG Liquidity

$163M4

PRUDENT Debt Level

December 31, 2014 – Pro Forma Convertible Debt Financing

Consensus Estimated Operating Cash Flow ($ millions)

7

$72 $74 $96

$128

$0

$50

$100

$150

2013 2014 2015E 2016E


SUFFICIENT LIQUIDITY TO DELIVER ORGANIC GROWTH

TSX P I NYSE PPP I

2014A OperatingEfficiencies

LowerSustaining

Capital

DecreasedG&A

2015E

$1,222

$1,050

$500

$600

$700

$800

$900


8

2015 Cash Costs Guidance Range (US$/oz Au)*

*Cash costs are net of by-product credits. Based on available company disclosure and data from SNL Metals & Mining. See final slide for footnotes.

Corporate: o Rationalizing offices (closing Vancouver and

Mexico City offices) o Focused on reducing G&A San Dimas: o Expansion to 2,500 TPD increased

efficiencies of scale o Increased long-hole mining reduced dilution

by 30% o Expansion to 3,000 TPD expected to

reduce costs by a further ~$50/oz Black Fox: o Ongoing mining optimization program o Contractors reduced o Initiated 24-hour open-pit mining o Increasing long-hole stope inventory o Training to improve productivity and quality

control

Primero 2015 AISC Guidance vs. 2014 Results (US$/oz Au)8

FOCUSED ON INCREASING PRODUCTIVITY TO REDUCE COSTS

TSX P I NYSE PPP I

1.9

1.5

1.1

0.7

2011 2012 2013 2014

505

660

870 870

712 712

538

2011 2012 2013E 2014E*

Black FoxCerro del GalloSan Dimas

102 111

143 161

180

64

80

2011 2012 2013 2014 2015E

Black Fox

San Dimas

Proven Track Record

9

HISTORY OF DELIVERING RESULTS

155% GROWTH 320% GROWTH

*Gold Reserves as of December 31, 2013.

1,582

225

250-270

2,120

Production (AuEq koz)1,2 Gold Reserves (Au koz) Total Reportable Injury Frequency Rate

63% REDUCTION

3


TSX P I NYSE PPP I

Asset Overview PIPELINE OF ORGANIC GROWTH

10

San Dimas Platform

PRODUCTION PRODUCTION

EXPANSION Grey Fox & CDG

DEVELOPMENT

Black Fox Optimization

San Dimas 3,000 TPD

TSX P I NYSE PPP I

World Class Platform Asset

11

SAN DIMAS


Mineral Resources and Mineral Reserves (DECEMBER 31, 2013, MINERAL RESOURCES INCLUDE MINERAL RESERVES)

CLASSIFICATION TONNAGE (M TONNES)

GOLD GRADE (G/T)

CONT. GOLD (K OUNCES)

Mineral Reserves

Proven & Probable 4.9 5.5 870 Mineral Resources (includes Mineral Reserves)

Measured & Indicated 4.3 7.2 997

Inferred 7.3 4.2 998

Location Sinaloa-Durango, Mexico Ownership 100% (silver stream1)

Metals Gold & Silver Mining Underground Capacity 2,500 TPD Production1 175,000-185,000 AuEq oz

Costs8 $590-$640/AuEq oz

TSX P I NYSE PPP I

1,600

1,800

2,000

2,200

2,400

2,600

2,800

3,000

3,200

tonn

es p

er d

ay

ActualForecast

Expansion Plan

12

SAN DIMAS

Mill Expansion

Base Production

Mine Production to 2,150 tpd


Mill Expansion


2011 2012 2013 2014 2015 2016

Current Nameplate Capacity

Target 3,000 TPD Capacity

o Begin expansion to 3,000 TPD9

o Increase access to high-grade Victoria vein

o Implement 7 day, 12-hour shifts to optimize mine throughput

2014 o Increased reserve grade by 23%

o Expanded mill to 2,500 TPD

o Discovered new high-grade veins and extension of top producing veins

o Achieved record production of 161,000 AuEq oz

o Complete expansion to 3,000 TPD

o Increase mined grade to current gold reserve grade of 5.5 g/t

2015 2016

TSX P I NYSE PPP I

Proven History of Reserve & Resource Growth

505

660

870

577

780

997

704

762

998

2011 2012 2013

P&P Reserves ( Au Koz)

M&I Resources (Au Koz)

Inferred Resources (Au Koz)

(M&I Resources Include Mineral Reserves)

See slides 35, 36, 37, & 38

Significant Exploration Upside with Low Finding Costs o Completed 80,000 metres of drilling 2014, 2014 reserves and

resources to be released in Q1 2015 o 1H 2015: $6.4 million, 25,000 metres of drilling

SAN DIMAS

Low Finding Cost Per Ounce

247 311

$53.0

$34.7

2012 2013

P&P Reserves Discovered (Koz Au)P&P Discovery Cost(US$/oz Au)

13

TSX P I NYSE PPP I

Note: Based on public data, average depth of listed mines is 1,633 metres.

Established Jurisdiction with Proven Depth Potential Over 200 Million Ounces of Historical Production

BLACK FOX

14

TSX P I NYSE PPP I

Turnaround Opportunity to Create Value

15

BLACK FOX


Location Timmins, Ontario Ownership 100% (8% gold stream1)

Metals Gold Mining Open pit & underground Capacity 2,200 TPD Production1 75,000-85,000 oz

Costs8 $820-$870/ oz

Mineral Resources and Mineral Reserves (DECEMBER 31, 2013, MINERAL RESOURCES INCLUDE MINERAL RESERVES)

CLASSIFICATION TONNAGE (M TONNES)

GOLD GRADE (G/T)

CONT. GOLD (K OUNCES)

Mineral Reserves

Proven & Probable 3.8 4.3 538 Mineral Resources (includes Mineral Reserves)

Measured & Indicated 4.0 5.1 653

Inferred 0.7 7.6 168

TSX P I NYSE PPP I

Optimization Program

o Acquisition and integration of Black Fox Complex o Commenced optimization program, focused on cost

reduction o Increased underground exploration and development o Discovered high-grade intercepts at depths up to 800

metres

o Build underground long-hole stope inventory o Finalize mill and tailings optimization o Continue in-fill drilling of lower central and east zones o Goal of identifying resources to depth of 1,000 metres

o Review the concept of sinking a shaft to access deep

mineralization o Complete detailed economic analysis to potentially

include Grey Fox as part of long term development at the Black Fox Complex

16

BLACK FOX

2014

2015

2016

Recent Black Fox Core

TSX P I NYSE PPP I

Focused on Reserve & Resource Development Lateral & Depth Expansion

BLACK FOX


0

Legend

Metal Factor Grade (g/t Au) x width (metres)

> 200

9800

9600

9400

9200

0 100m 200 m

Metal Factor (grade x width) BLACK FOX

TSX P I NYSE PPP I

Grey Fox

Promising Exploration Project GREY FOX

Location Ownership

4 km from Black Fox, Ontario 100% (no stream)

Measured & Indicated Gold Resources (koz) (5.3M tonnes at 3.3 g/t)

558

Inferred Gold Resources (koz) (1.6M tonnes at 4.4 g/t)

219

o Completed 76,000 metres of drilling in 2014.

o Planned another 50,000 metres in 2015.

o Positive exploration results announced to date from underground and open pit targets.

TSX P I NYSE PPP I

Catalysts and News Flow

Q3 2014 San Dimas Operating at 2,500 TPD Increases annual production rate to 165,000AuEq oz

Q1 2015 Reserve and Resource Update Including 226,000 metres of 2014 drilling

Q1 2015 Black Fox Complex Exploration Update Drilling from 520 metre level exploration drift at depth

Q3 2014 San Dimas 3,000 TPD Decision Expansion decision announced

Q4 2015 Grey Fox Scoping Study

Q4 2014 San Dimas Exploration Update Extended top producing veins

20

2014 Q1 2015 2015

REGULAR EXPLORATION UPDATES

TSX P I NYSE PPP I

$650 - 700 /oz

TOTAL CASH COST8


250 – 270 koz

MEXICO & CANADA1,3

Producing in America’s Top Mining Jurisdictions

21

Positioned to Outperform DELIVERING SUPERIOR RETURNS

1.6 g/t

RESERVE GOLD GRADE

Highest Reserve Grade in Peer Group

$134 million

CASH & AVAILABLE CREDIT5


+225 years

INDUSTRY EXPERIENCE

Experienced Board and Management

+35 %

VS. TSX GLOBAL GOLD

Proven Track Record


(100%)

(40%)

20%

80%

140%

Primero Mining Corp. S&P/TSX Global Gold Index

January 2012 to Present

Delivering Superior Returns to Primero Shareholders

APPENDICES


2015 Guidance

2014 Black Fox San Dimas Outlook 2015

Attributable gold equivalent production1 (gold equivalent ounces)

225,100 75,000-85,000 175,000-185,000 250,000-270,000

Gold Production (ounces) 190,000 75,000-85,000 145,000-155,000 220,000-240,000

Silver Production1 (million ounces) 6.15 6.5-7.5 6.5-7.5

Total cash costs8,10 (per gold equivalent ounce) $687 $820-$870 $590-$640 $650-$700

All-in Sustaining Costs8,10 (per gold ounce) $1,222 $1,075-$1,125 $840-$890 $1,000-$1,100

Capital Expenditures ($ millions) $80.5 $22.6 $41.4 $66.7

Exploration ($ millions) $34.3 $12.3 $6.4 $19.1


FURTHER 20% PRODUCTION GROWTH EXPECTED

TSX P I NYSE PPP I

2014 Financial Results

(US$ thousands, except per share amounts) 2014 2013

Revenues 274,612 200,326

Earnings from Mine Operations 52,663 76,004

Net income (loss) (224,384) (4,250)

EPS ($ per share)

(1.48) (0.04)

Adjusted net income11 5,365 38,668

Adjusted EPS11 ($ per share)

0.04 0.36

Operating cash flows12 before changes in working capital

73,658 72,396

CFPS12 ($ per share)

0.48 0.67 -

50

100

150

200

250

300

2013 2014

Revenues ($millions)

+37%


24

TSX P I NYSE PPP I

2014 Consolidated Production

Operating Results 2014 2013

Gold equivalent production1

(gold equivalent ounces) 225,054 143,114

Gold production (ounces)

189,943 111,983

Silver production1 (million ounces)

6.15 6.05

All-in Sustaining Costs8 ($ per gold ounce)

$1,222 $1,077

Cash cost8 ($ per AuEq ounce)

$687 $599

Cash cost8– by-product ($ per gold ounce)

$579 $389


-

50,000

100,000

150,000

200,000

250,000

2013 2014

+57%

Production (AuEq ounces)

25

TSX P I NYSE PPP I

2014 San Dimas Operating Results

2014 2013

Mill Throughput13

(tonnes per day) 2,463 2,101

Gold equivalent production1

(gold equivalent ounces) 161,170 143,114

Gold production (ounces)

126,059 111,983

Silver production1 (million ounces)

6.15 6.05

Gold grade (grams per tonne)

4.63 4.67

Silver grade (grams per tonne)

232 258


$826 $858

Cash cost8 ($ per AuEq ounce)

$628 $599

Cash cost8– by-product ($ per gold ounce)

$448 $389

San Dimas Production (AuEq ounces)


10,000

30,000

50,000

70,000

90,000

110,000

130,000

150,000

170,000

2013 2014

+13%

26

TSX P I NYSE PPP I

Q4 2014

2014 (March 5 –

December 31)

Mill Throughput13

(tonnes per day) 2,403 2,306

Gold Production (gold ounces) 20,334 63,884

Gold Grade (grams per tonne )

3.00 3.00


$1,374 $1,428

Cash cost8 ($ per gold ounce)

$799 $837

Black Fox Production (Au ounces)

*Prior to Primero’s acquisition. See final slide for footnotes.

2014 Black Fox Operating Results

-

5,000

10,000

15,000

20,000

25,000

Q12014*

Q22014

Q32014

Q42014

27

TSX P I NYSE PPP I

Lower 2015 Capital Expenditures 2015 GUIDANCE

28

Capital Expenditures Estimated 2015 Costs

San Dimas Underground Development $15.2 million

San Dimas Sustaining Capital $10.8 million

San Dimas Projects $15.4 million

San Dimas Sub Total $41.4 million

Black Fox Underground Development $13.4 million

Black Fox Sustaining Capital $4.5 million

Black Fox Projects $3.4 million

Grey Fox Development Studies $1.3 million

Black Fox Sub Total $22.6 million

Cerro del Gallo Development $2.7 million

Total $66.7 million

2014 Capital Expenditure $80.5million Note: Figures may not add due to rounding.

TSX P I NYSE PPP I

Exploration Expenditures Estimated 2015 Costs

San Dimas Diamond Drilling $3.1 million

San Dimas Drifting $1.9 million

San Dimas Regional Diamond Drilling $0.9 million

Ventanas Regional Diamond Drilling *$0.5 million

San Dimas Sub Total $6.4 million

Black Fox Diamond Drilling $5.0 million

Grey Fox & Regional Exploration $7.3 million

Black Fox Complex Sub Total $12.3 million

Cerro del Gallo Geology Mapping $0.4 million

Total $19.1 million

2014 Exploration $34.3 million

Continuing to Invest in Exploration 2015 GUIDANCE

29

Note: Ventanas Regional Drilling is expected to be treated as an exploration expense. Figures may not add due to rounding.

TSX P I NYSE PPP I

Stock Performance & Significant Events

30

0

10

20

30

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

8/13/2010 2/13/2011 8/13/2011 2/13/2012 8/13/2012 2/13/2013 8/13/2013 2/13/2014 8/13/2014 2/13/2015

Vol

ume

(Mill

ions

)

P-T Volume

Primero Mining Corp.

S&P/TSX Global Gold Index

Primero IPO, Begins Trading on the TSX, and Finalizes San Dimas Acquisition

Primero Announces Brigus Gold Acquisition

Primero Added to S&P/TSX Composite Index Primero

Announces San Dimas Expansion Plan Phase 1

Primero Begins Trading on the NYSE Primero Announces

Acquisition of Cerro Del Gallo

Primero Announces APA Ruling

Spot Gold Hits 4-Year Low


Summary of Debt & Tradable Securities

Primero Warrants TSX: P.WT

Convertible Debentures TSX: P.DB.U

Revolving Line of Credit Facility

Convertible Debentures TSX:P.DB.V

Face Value n/a $48.1 million Drawn at Dec. 31, 2014: $40.0 million $75.0 million

Maturity / Expiry July 20, 2015 March 31, 2016 May 23, 2017 February 28, 2020

Interest Rate n/a 6.5% Floating Rate (see below) 5.75%

Payable n/a Semi-Annually Monthly Semi-Annually

Conversion / Strike C$8.00 US$14.00 n/a US$6.55

Additional Notes CUSIP: 74164W114 Provision for forced conversion if the market price of the Primero’s shares is at least 125% of the conversion price

CUSIP: 74164WAA4

The floating interest rate was approximately 4.75% per annum during the year ended December 31, 2014

Not redeemable prior to Feb. 2018

Provision for early redemption if the market price of the Primero’s shares is at least 125% of the conversion price

CUSIP: 74164WAB2

TSX P I NYSE PPP I

Silver Purchase Agreement

Primero sells 50% of annual silver production above 6.0 million ounces at spot o Remainder sold at ~$4.20 per ounce under silver

purchase agreement o Threshold commences August 6 to following

August 5 o Expansion anticipated to generate meaningful

silver spot sales post expansion to 3,000 TPD

Primero sells 8% of annual gold production at Black Fox at ~$509 per ounce o Primero streams 6.3% from the Black Fox

Extension which includes the Pike River Property o Gold is sold at $500 per ounce subject to

inflationary adjustment beginning in 2013, not to exceed 2% per annum

o The Grey Fox exploration property is not subject to any gold streaming agreements

SAN DIMAS BLACK FOX

Gold Streaming Agreement

16%

84%

Silver Gold

Silver as Percentage of 2014 Revenue

32

TSX P I NYSE PPP I

Focus on Responsible Mining

HEALTH AND SAFETY o We understand that our most important assets are

our people and their safety is our number one priority

o We maintain world-class health and safety policies

ENVIRONMENT o San Dimas is certified as “Clean Industry” by

PROFEPA (Mexican EPA)

o We utilize sustainable green technologies where possible - Primero’s own hydroelectric dam supplies the majority of San Dimas Mine’s power

COMMUNITY o We treat our local communities as our partners

o We focus on understanding our local communities goals and providing local opportunities

o We promote local education with awards for the local technical college in San Dimas

33

TSX P I NYSE PPP I

District-Wide Exploration Potential SAN DIMAS

SW NE 3,000 m.

2,000 m.

1,000 m.

Source: San Dimas Geology Office

WEST BLOCK 2015 Exploration

SAN ANTONIO Mined 1987-2002

CENTRAL BLOCK Mined 2002-Current

TAYOLTITA BLOCK Mined 1975-Current

ARANA HANGING WALL

SINALOA GRABEN

Mined 2012-Current

2015 EXPLORATION PROGRAM Drilling for Extensions of Known Veins

Longitudinal Cross Section

3,000 m.

2,000 m.

1,000 m.

Mineralization – Ore Bodies

Extension of the Favorable Horizon

Potential

Intrusive

Faults

LEGEND Kilometers

0 1 2

34

TSX P I NYSE PPP I

Project Summary

Location Guanajuato State, Mexico Ownership 100% Metals Gold, silver, & copper Mining Open pit, heap leach and/or conventional mill Stage Feasibility Study published May 2012 on Heap Leach scenario

Established Infrastructure: Active mining district, skilled local workforce, grid power, water, sealed roads, equipment suppliers and established transport routes.

Supportive Community: District has produced 1.14 billion oz of silver and 6.5 million oz of gold over its 450 year mining history.

Construction Decision: Contingent on the project achieving a 15% IRR at $1,100/oz gold

Potential for an Additional 95,000 AuEq oz

CERRO DEL GALLO

First Stage Heap Leach DFS – Operational Data (May 2012)1

Avg LOM Gold Grade 0.69 g/t

Avg LOM Annual Throughput 4.5 Mt

Gold Equivalent Production 95 koz /yr

Gold Production 68 koz /yr

Silver Production 1,072 koz /yr

Copper Production 1,113 t/year

Estimated Cash Costs2 ~$700/oz

Proven & Probable Gold Reserves (3.2M tonnes at 0.69 g/t)

710koz

Measured & Indicated Gold Resources (Exclusive of Reserves) (47.9M tonnes at 0.60 g/t)

920koz

Inferred Gold Resources (20M tonnes at 0.3 g/t)

190koz

Mine Life (Stage 1) 7.2 years

(1) “Technical Report First Stage Heap Leach Feasibility Study, Cerro del Gallo Gold

Silver Project, Guanajuato, Mexico” June 2012 . Effective date May 11th 2012 (2) Cash cost is a non-IFRS measurement.

Large Gold Domain

Feasibility Study Results

35

TSX P I NYSE PPP I

Classification Tonnage (Million Tonnes) Gold Grade (G/T) Silver Grade

(G/T) Contained Gold (000 Ounces)

Contained Silver (000 Ounces)

Mineral Reserves Proven & Probable 4.893 5.5 315 870 49,479

Mineral Resources Measured & Indicated 4.282 7.2 419 997 57,713

Inferred 7,333 4.2 310 998 72,647 Notes to Mineral Reserve Statement: Cutoff grade of 2.7 grams per tonne (”g/t”) gold equivalent (“AuEq”) based on total operating cost of US$104.97/t. Metal prices assumed are gold US$1,250 per troy ounce and silver US$20 per troy ounce. Silver supply contract obligations have been referenced in determining overall vein reserve estimate viability. Processing recovery factors for gold and silver of 97% and 94% assumed. Exchange rate assumed is 13 pesos/US$1.00. The Mineral Reserve estimates were prepared under the supervision of Mr. Gabriel Voicu P.Geo., Vice President, Geology and Exploration, Primero and a QP for the purposes of National Instrument 43-101 (“NI 43-101”). Notes to Mineral Resource Statement: Mineral Resources are total and include those resources converted to Mineral Reserves. A 2.0g/t AuEq cutoff grade is applied and the gold equivalent is calculated at a gold price of US$1,300 per troy ounce and a silver price of US$20 per troy ounce. A constant bulk density of 2.7 tonnes/m3 has been used. The Mineral Resource estimates were prepared by Mr. Rodney Webster MAusIMM, MAIG and Mr. J. Morton Shannon P.Geo., both of AMC Mining Consultants (Canada) Ltd. and a QP for the purposes of NI 43-101.

Additional exploration potential was estimated at 6-10 million tonnes at grade ranges of 3-5 grams per tonne of gold and 200-400 grams per tonne of silver as of December 31, 2011. It should be noted that these targets are conceptual in nature. There has been insufficient exploration to define an associated Mineral Resource and it is uncertain if further exploration will result in the target being delineated as a Mineral Resource.

Mineral Resources and Mineral Reserves (December 31, 2013, Mineral Resources include Mineral Reserves)

SAN DIMAS

36

TSX P I NYSE PPP I

Notes to Black Fox Mineral Reserve estimate: 1. Mineral Reserves stated as at December 31, 2013. 2. Open pit cut-off grade of 1.0 g/t Au and underground cut-off grade of 3.4 g/t. 3. Gold price assumed is US$1,250 per troy ounce. 4. Processing gold recovery factor 94% assumed. 5. Harold Brisson, PhD, Eng. is the Qualified Person for the Black Fox Complex Mineral Resource estimates. Notes to Black Fox Mineral Resource estimate: 1. Mineral Reserves stated as at December 31, 2013. 2. Open pit cut-off grade of 0.9 g/t Au and underground cut-off grade of 3.0 g/t. 3. Gold price assumed is US$1,300 per troy ounce and exchange rate of US$1.00=C$1.10 was used in the gold cut-off grade calculations. 4. Detailed footnotes can be found in the NI 43-101 Technical Report titled “TECHNICAL REPORT ON THE MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES FOR

THE BLACK FOX COMPLEX”, dated June 30, 2014 and filed on www.sedar.com.

Classification Tonnage (Tonnes)

Gold Grade (G/T)

Cont. Gold (Ounces)

Proven & Probable Reserves Open Pit 1,468,500 3.7 173,900 Underground 1,663,900 6.3 339,100 Stockpile 716,200 1.1 24,700 Total 3,848,700 4.3 537,700 Measured & Indicated Resources, Including Reserves Open Pit 1,423,900 4.0 182,518 Underground 1,852,800 7.5 445,336 Stockpile 716,200 1.1 24,706 Total 3,992,800 5.1 652,560 Inferred Resources Open Pit 364,100 5.8 67,897 Underground 326,300 9.5 99,889 Total 690,400 7.6 167,786

Mineral Resources and Mineral Reserves (December 31, 2013, Mineral Resources include Mineral Reserves)

BLACK FOX

37

http://www.sedar.com/

TSX P I NYSE PPP I

Classification Cut-off Grade

(G/T Au) Potential Material

Tonnes (Million Tonnes)

CAPPED Au (G/T)

Contained Gold (Ounces)

Indicated Resources >3.0 Underground 1.394 5.4 243,041

>0.9 Open Pit 3.882 2.5 314,615

Total Indicated Resources 5.276 3.3 557,655

Inferred Resources

>3.0 Underground 1.065 5.1 175,511

>0.9 Open Pit 0.486 2.8 43,309

Total Inferred Resources 1.552 4.4 218,820

Notes to Grey Fox Mineral Resource estimate: 1. Mineral Reserves stated as at 31 December 2013. 2. Open pit cut-off grade of 0.9 g/t Au and underground cut-off grade of 3.0 g/t 3. Gold price assumed is US$1,300 per troy ounce and exchange rate of US$1.00=C$1.10 was used in the gold cut-off grade calculations. 4. Detailed footnotes can be found in the NI 43-101 Technical Report titled “TECHNICAL REPORT ON THE MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES FOR

THE BLACK FOX COMPLEX”, dated June 30, 2014 and filed on www.sedar.com. 5. Harold Brisson, PhD, Eng. is the Qualified Person for the Black Fox Complex Mineral Resource estimates.

Mineral Resources (December 31, 2013)

GREY FOX

38

http://www.sedar.com/

TSX P I NYSE PPP I

Category M Tonnes Au (g/t)

Au (M ozs)

Ag (g/t)

Ag (M ozs)

Cu (%)

Cu (M lbs)

AuEq (g/t)

AuEq (M oz)

Proven 28.2 0.71 0.64 15.1 13.7 0.08 50.2 1.15 1.05 Probable 4.0 0.54 0.07 13.2 1.7 0.07 6.2 0.93 0.12 Proven & Probable 32.2 0.69 0.71 14.8 15.3 0.08 56.4 1.14 1.18


Au (M ozs)

Ag (g/t)

Ag (M ozs)

Cu (%)

Cu (M lbs)

AuEq (g/t)

AuEq (M oz)

Measured 39.9 0.61 0.78 13.8 17.71 0.10 88.8 1.07 1.37 Indicated 8.0 0.55 0.14 11.0 2.83 0.08 14.6 0.92 0.24 Measured & Indicated 47.9 0.60 0.92 13.3 20.55 0.1 103.4 1.06 1.64

Total Resources Within the Gold Domain2

Phase I Heap Leach In-Pit Proven and Probable Reserves3

In-Pit Resources (excluding Proven and Probable Reserves)4,5


Au (M ozs)

Ag (g/t)

Ag (M ozs)

Cu (%)

Cu (M lbs)

AuEq (g/t)

AuEq (M oz)

Measured 129 0.54 2.24 12.0 49.8 0.09 256.0 0.94 3.91 Indicated 80 0.38 0.98 8.0 20.6 0.08 141.1 0.69 1.77 Measured & Indicated 209 0.48 3.22 11.0 70.3 0.08 396.9 0.83 5.58 Inferred 20 0.3 0.19 7.0 4.5 0.09 39.7 0.59 0.38

1. “Technical Report First Stage Heap Leach Feasibility Study, Cerro del Gallo Gold Silver Project, Guanajuato, Mexico” June 2012 (“Feasibility Study”). Gold equivalent ounces calculated by Cerro Resources using gold, silver and copper prices of US$1,341/oz, US$25.58/oz and US$7,582/t respectively. 2. These resources are reported using internal cut-off grade of 0.2 g/tAu as per Feasibility Study, 2012 and Golder Associates Technical Report, 2008.

3. These reserves are reported using internal cut-off grades of 0.24 and 0.29 gAuEq/t for weathered and partially oxidized, respectively.

4. These resources are reported using internal cut-off grades of 0.24, 0.29, and 0.34 gAuEq/t for weathered, partially oxidized, and fresh material resp. 5. See note 7 in January 23, 2013 News Release “Primero achieves 2012 Guidance and Provides 2013 Outlook”.

CERRO DEL GALLO

Reserves and In-Pit Resources1

39

TSX P I NYSE PPP I

Tamara Brown | VP, Investor Relations Former Director Investor Relations for IAMGOLD Former partner of a Toronto based, boutique investment bank and

professional engineer in mining industry

H. Maura Lendon | VP, Chief General Counsel and Corporate Secretary Former Senior Vice President, Chief Legal Officer and Corporate

Secretary of HudBay Minerals Inc.; Chief Counsel Canada, Chief Privacy Officer - Canada of AT&T

David Sandison | VP, Corporate Development Former VP, Corporate Development of

Clarity Capital ; Director, Corporate Development Xstrata Zinc Canada ; Director Business Development, Noranda/Falconbridge; Former EVP, Noranda Chile

Louis Toner | VP, Project Development & Construction Over 30 Years of Engineering and Construction experience,

formerly held Senior Project Management roles with BBA Inc. and Lafarge Canada Inc.

Gabriel Voicu | VP, Geology and Exploration 25 Years of mining experience, formerly held senior technical and

exploration positions with Cambior and IAMGOLD

James Mallory | VP, Corporate Responsibility Over 35 Years of mining experience Former VP, Vice-President, Operations & Social Responsibility at

South American Silver 13 Years of experience in Latin America

Joseph Conway | Chief Executive Officer 30 Years of experience Appointed President and CEO in June 2010 Former CEO, President & Director of IAMGOLD and Repadre

Capital

Wendy Kaufman | Chief Financial Officer 20 Years of experience Appointed CFO in September 2014 Former VP, Finance and Treasurer of Inmet Mining Corporation

Executive Management

40

Ernest Mast | President & COO 25 Years of experience Appointed President & COO in Feb. 2015 Former President & CEO – Minera Panama (Inmet), VP Ops. –

New Gold.

Maria-Luisa Sinclair | VP, Human Resources 25 Years of international Human Resources experience in the

mining sector with particular expertise in Latin America. Held key human resources positions with Placer Dome, Pan

American Silver, Baja Mining, and Skye Resources.

TSX P I NYSE PPP I

Robert Quartermain | Director 2,3

Founder and President & CEO, Pretivm Resources Former President and CEO of Silver Standard

Brad Marchant | Director 1

Co-founder of Triton Mining Corporation Founder of BioteQ Environmental Technologies Inc.

Michael Riley | Director 2,5

Chartered accountant with more than 26 years of accounting experience

Chair of Primero Audit Committee

Eduardo Luna | Director 1

Former EVP & President, Mexico. Former Chairman and CEO of Silver Wheaton, Executive VP of Goldcorp and Luismin S.A. de C.V. (San Dimas) and President of Mexican Mining Chamber and the Silver Institute

Rohan Hazelton | Director 1

VP, Strategy, Goldcorp Formerly with Wheaton River and Deloitte & Touche

LLP

Grant Edey | Director 3,4,5

President & CEO, Khan Resources Inc. Former Director of Breakwater Resources, former

director of Queenstake Resources, Santa Cruz Gold Former CFO, IAMGOLD

David Demers | Director 2,3,4,5

Founder, CEO and Director Westport Innovations Director of Cummins Westport and

Juniper Engines

Wade Nesmith | Chairman Founder of Primero Founding and current director of Silver Wheaton

Board of Directors

41 Board Committees: 1. Health, Safety and Environment 2. Human Resources 3. Governance and Nominating 4. Lead Director 5. Audit

Joseph Conway | Director see Executive Management

TSX P I NYSE PPP I

This presentation has been prepared in accordance with the requirements of Canadian provincial securities laws which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all mineral reserve and resource estimates included in this presentation have been prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum classification systems. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”), and reserve and resource estimates disclosed in this presentation may not be comparable to similar information disclosed by U.S. companies. The mineral reserve estimates in this presentation have been calculated in accordance with NI 43-101, as required by Canadian securities regulatory authorities. For United States reporting purposes, SEC Industry Guide 7 under the United States Securities Exchange Act of 1934, as amended, as interpreted by Staff of the SEC, applies different standards in order to classify mineralization as a reserve. As a result, the definition of “probable reserves” used in NI 43-101 differs from the definition in the SEC Industry Guide 7. Under SEC standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Among other things, all necessary permits would be required to be in hand or issuance imminent in order to classify mineralized material as reserves under the SEC standards. Accordingly, mineral reserve estimates contained in this presentation may not qualify as “reserves” under SEC standards. In addition, this presentation uses the terms “indicated resources” and “inferred resources” to comply with the reporting standards in Canada. The Company advises United States investors that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them. United States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. Further, “inferred resources” have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, United States investors are also cautioned not to assume that all or any part of the “inferred resources” exist. In accordance with Canadian securities laws, estimates of “inferred resources” cannot form the basis of feasibility or other economic studies. It cannot be assumed that all or any part of “indicated resources” or “inferred resources” will ever be upgraded to a higher category or are economically or legally mineable. In addition, disclosure of “contained ounces” is permitted disclosure under Canadian securities laws; however, the SEC only permits issuers to report mineralization as in place tonnage and grade without reference to unit measures. NI 43-101 also permits the inclusion of disclosure regarding the potential quantity and grade, expressed as ranges, of a target for further exploration provided that the disclosure (i) states with equal prominence that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resources, and (ii) states the basis on which the disclosed potential quantity and grade has been determined. Disclosure regarding exploration potential has been included in this presentation. United States investors are cautioned that disclosure of such exploration potential is conceptual in nature by definition and there is no assurance that exploration will result in any category of NI 43-101 mineral resources being identified.

Notes to Investors Regarding the Use of Resources

42

TSX P I NYSE PPP I

Footnotes

43

1. “Gold equivalent ounces” include silver ounces produced at San Dimas, and converted to a gold equivalent based on a ratio of the average commodity prices realized for each period. Silver production is subject to a silver purchase agreement. The silver purchase agreement dictates that until August 6, 2014 Primero will deliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of silver produced at San Dimas and 50% of any excess at $4.16 per ounce (increasing by 1% per year). Thereafter Primero will deliver to Silver Wheaton a per annum amount equal to the first 6.0 million ounces of silver produced at San Dimas and 50% of any excess at $4.20 per ounce (increasing by 1% per year). The Company will receive silver spot prices only after the annual threshold amount has been delivered. Black Fox is subject to a gold purchase agreement under which Sandstorm is entitled to 8% of production at the Black Fox mine and 6.3% at the Black Fox Extension.

2. Assumes San Dimas operates at least at 3,000 TPD from end of Q2 2016; and Primero management estimates for Black Fox production, based on 2,200-2,300 TPD operation and underground throughput increasing to 1,000 TPD by the end of 2015.

3. Based on 2015 Guidance. 4. $48.1 million senior unsecured convertible debenture (acquired from Brigus, with a 6.5% coupon an effective conversion price of US$14.00 and an

expiry of March 2016); US$75 million convertible, unsecured, subordinated debentures; and $40 million draw down from line of credit. Excludes capital leases.

5. The Company closed a $75 million line of credit on May 23, 2014 and has drawn down $40 million as of December 31, 2014. 6. During the year ended December 31, 2014, the Company issued 41,340,347 common shares as consideration for the acquisition of Brigus, 1,921,744

common shares upon the exercise of stock options; and 2,481,482 common shares pursuant to two flow through agreements. 7. Fully diluted shares include 20.8 million warrants with an exercise price of C$8.00 per share, expiring on July 20, 2015; and 9.3 million options with

an average exercise price of C$6.17. 8. Cash costs and All-in Sustaining Costs are non-GAAP measures. Refer to the Company’s 2014 MD&A for a reconciliation to operating expenses.

Note the calculation of all-in sustaining costs at San Dimas changed with the acquisition of a second producing asset and subsequently do not include corporate G&A.

9. The Company currently estimates that expanding the San Dimas mill to 3,000 TPD will require approximately $26.4 million of capital investment, with approximately $6 million expenditure expected in 2014 and the remainder spread over the following eighteen months. As a result of the preliminary nature of the capital assessment a contingency factor of 30% has been included in the capital estimate.

10. Major assumptions include a flat gold price per ounce of $1,300, a flat silver price per ounce of $22. 11. Adjusted net income/earnings and adjusted net income/earnings per share are non-GAAP measures. Neither of these non-GAAP performance

measures has any standardized meaning and is therefore unlikely to be comparable to other measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company’s performance. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to the Company’s 2014 MD&A for a reconciliation of adjusted net income/earnings to reported net income.

12. “Operating cash flow” is operating cash flow before working capital changes. This and operating cash flows before working capital changes per share (CFPS) are non-GAAP measures which the Company believes provides a better indicator of the Company’s ability to generate cash flow from its mining operations. See the Company’s 2014 MD&A for a reconciliation of operating cash flows to GAAP.

13. Based on 365 days per year.

TSX P I NYSE PPP I

PRIMERO MINING CORP. 79 Wellington St. West, Suite 2100 Toronto, ON M5K 1H1 T 416 814 3160 TF 877 619 3160 www.primeromining.com

Tamara Brown Vice President, Investor Relations T 416 814 3168 [email protected]

BMO 2015 GLOBAL METALS & MINING CONFERENCE February 22-25, 2015

Primero bmo conference presentation 2015 final v2

Investor Relations

Transcript of Primero bmo conference presentation 2015 final v2