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Corporate Presentation February 2013
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Page 1: Pretivm corporate february 2013 jjo

Corporate PresentationFebruary 2013

Page 2: Pretivm corporate february 2013 jjo

CAUTIONARY STATEMENT

Forward Looking InformationThis Presentation contains ‘‘forward-looking information’’ within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information may include, but is not limited to, information with respect to the anticipated production and developments in our operations in future periods, our planned exploration and development activities, the adequacy of our financial resources, the estimation of mineral resources, realization of mineral resource estimates, costs and timing of development of the projects we currently intend to acquire (the “Projects”), costs and timing of future exploration, results of future exploration and drilling, timing and receipt of approvals, consents and permits under applicable legislation, our executive compensation approach and practice, the composition of our board of directors and committees, and adequacy of financial resources. Wherever possible, words such as ‘‘plans’’, ‘‘expects’’ or ‘‘does not expect’’, ‘‘budget’’, ‘‘scheduled’’, ‘‘estimates’’, ‘‘forecasts’’, ‘‘anticipate’’ or ‘‘does not anticipate’’, ‘‘believe’’, ‘‘intend’’ and similar expressions or statements that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved, have been used to identify forward-looking information. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as ‘‘expects’’, ‘‘anticipates’’, ‘‘plans’’, ‘‘projects’’, ‘‘estimates’’, ‘‘assumes’’, ‘‘intends’’, ‘‘strategy’’, ‘‘goals’’, ‘‘objectives’’, ‘‘potential’’ or variations thereof, or stating that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information. Many of these risks are listed and described in our final short-form prospectus dated March 19, 2012 (the “Prospectus”), which is available for review on SEDAR at www.sedar.com under our profile. Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in 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 information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Forward-looking information involves statements about the future and is inherently uncertain, and our actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Prospectus under the heading ‘‘Risk Factors’’. Our forward-looking information is based on the beliefs, expectations and opinions of management on the date the statements are made, and we do not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information.National Instrument 43-101Technical and scientific information contained herein relating to the Projects is derived from National Instrument 43-101 (“NI 43-101”) compliant technical reports (“Reports”) “Technical Report and Updated Preliminary Economic Assessment of the Brucejack Project” dated February 20, 2012 “Mineral Resources Update Technical Report” dated April 3, 2012, “Mineral Resources Update Technical Report” dated September 18, 2012 and “Mineral Resources Update Technical Report” dated November 20, 2012. We have filed the Reports under our profile at www.sedar.com. Technical and scientific information not contained within the Reports for the Projects have been prepared under the supervision of Mr. Kenneth C. McNaughton, an independent “qualified person” under NI 43-101.This presentation uses the terms “measured resources”, “indicated resources” (together “M&I”) and “inferred resources”. Although these terms are recognized and required by Canadian regulations (under NI 43-101), the United States Securities and Exchange Commission does not recognize them. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no guarantee that all or any part of the mineral resource will be converted into mineral 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 NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. CurrencyUnless otherwise indicated, all dollar values herein are in Canadian $.

2

Page 3: Pretivm corporate february 2013 jjo

3

An investment in Gold

High-grade gold resource of significant size:Valley of the Kings8.5 M oz gold Indicated (16.1 Mt @ 16.4 g/t gold)2.9 M oz gold Inferred (5.4 Mt @ 17.0 g/t gold)

Located in British Columbia, Canada

Underground feasibility study Q2 2013

Commercial production target early 2016

Page 4: Pretivm corporate february 2013 jjo

Kirkland Lake Mine(Kirkland Lake)

Kensington Mine(Coeur)

Casa Berardi(Aurizon)

El Penon Mine(Yamana)

Red Lake Mine(Goldcorp)

Pogo Mine(Sumitomo)

Valley of the Kings

F2 Deposit(Rubicon)

Buritica(Continental)

Cerro Negro(Goldcorp)

Eleonore(Goldcorp)

Cerro Moro(Yamana)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0M&I + Inferred Gold Resources (mm oz)

HIGH-GRADE GOLD WITH SIZE

4November 2012 Valley of the Kings High-Grade Gold Mineral Resource based on a cut-off grade of 5.0 grams of gold-equivalent/tonne.Data sources: Intierra Ltd., NRH.

Indicated Gold: 8.5 mm oz @ 16.4 g/t AuInferred Gold:2.9 mm oz @ 17.0 g/t Au

Page 5: Pretivm corporate february 2013 jjo

BRUCEJACK PROJECT LOCATION

5

Page 6: Pretivm corporate february 2013 jjo

BRUCEJACK HIGH-GRADE RESOURCE

6

(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral Resources in this news release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.(2) The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.(3) Contained metal may differ due to rounding.(4) The Mineral Resource estimate is defined using 5 m by 5 by 5 m blocks in the well drilled portion of West Zone (5 m by 10 m drilling or better) and 10 m by 10 m by 10 m blocks in the remainder of West Zone and in Valley of the Kings.(5) The gold equivalent value is defined as AuEq=Au + Ag/53

Valley of the Kings Mineral Resource Estimate –November 2012(1,4,5)

(Based on a cut-off grade of 5.0 grams of gold-equivalent/tonne)

Category Tonnes(mil)

Gold(g/t)

Silver(g/t)

Contained(3)

Gold(mil oz)

Silver(mil oz)

Indicated 16.1 16.4 14.2 8.5 7.3Inferred(2) 5.4 17.0 15.7 2.9 2.7

Gossan Hill Shore Zone

West Zone

Valley of the Kings

Bridge Zone

500 m

N0.5-5.0 g/t AuEq

5.0-15.0 g/t AuEq

>15.0 g/t AuEq

Key

M&I gold: 0.9 mil oz @5.85 g/tInferred gold: 0.8 mil oz @6.44 g/t

Page 7: Pretivm corporate february 2013 jjo

7

VALLEY OF THE KINGS

7

BrucejackFault

200 m

Valley of the Kings – Isometric view of main mineralization corridor

Page 8: Pretivm corporate february 2013 jjo

8

HIGH-GRADE CORRIDORSValley of the Kings Drill Hole Trace Bar Graphs – 426630E Section View

Mineralization Corridor

Bulk sample and ramp

Page 9: Pretivm corporate february 2013 jjo

VALLEY OF THE KINGS INDICATED RESOURCE

9

Valley of the Kings Indicated Gold Resource:

8.5 million oz(16.1 Mt @ 16.4 g/t gold)

Page 10: Pretivm corporate february 2013 jjo

INDICATED GOLD RESOURCE CONTINUITY

AuEq (g/t)

5-10

10-20

20-60

>60

W EValley of the Kings indicated resource blocks - 100 m thick slice along 6257950 N

Bench (m)Indicated Gold

(Oz)

1540-1570 116,300 1510-1540 499,700 1480-1510 734,800 1450-1480 510,400 1420-1450 365,450 1390-1420 566,700 1360-1390 631,700 1330-1360 364,800 1300-1330 527,400 1270-1300 992,000 1240-1270 998,200 1210-1240 521,950 1180-1210 213,050 1150-1180 246,800 1120-1150 294,600 1090-1120 393,900 1060-1090 317,600

Page 11: Pretivm corporate february 2013 jjo

1111

100 m

CONTINUITY: HIGH GRADE BLOCKS

Valley of the Kings block model plan view - 1300m level (+/- 25m)

Page 12: Pretivm corporate february 2013 jjo

1212

100 m

CONTINUITY: HIGH GRADE BLOCKS

Valley of the Kings block model plan view - 1275m level (+/- 25m)

Page 13: Pretivm corporate february 2013 jjo

1313

100 m

CONTINUITY: HIGH GRADE BLOCKS

Valley of the Kings block model plan view - 1250m level (+/- 25m)

Page 14: Pretivm corporate february 2013 jjo

CONTINUITY: HIGH GRADE BLOCKS

14Indicated and Inferred blocks greater than 5 g/t AuEq

Valley of the Kings block model – 426500E section view West (+/- 50m)

Page 15: Pretivm corporate february 2013 jjo

CONTINUITY: HIGH GRADE BLOCKS

15Indicated and Inferred blocks greater than 5 g/t AuEq

Valley of the Kings block model – 426550E section view West (+/- 50m)

Page 16: Pretivm corporate february 2013 jjo

CONTINUITY: HIGH GRADE BLOCKS

16Indicated and Inferred blocks greater than 5 g/t AuEq

Valley of the Kings block model – 426600E section view West (+/- 50m)

Page 17: Pretivm corporate february 2013 jjo

BULK SAMPLE

10,000-tonne bulk sample from Valley of the Kings planned (Q2/Q3)

5 X 5 meter slashing of existing West Zone workings completed

Turned towards Valley of the Kings, with over 150 meters completed as of January

Total ramp planned is 541 meters in length

Junction of 1314 re-muck (l) and Valley of the Kings ramp (r)

EXISTING DEVELOPMENTWEST ZONE

Page 18: Pretivm corporate february 2013 jjo

BULK SAMPLE LOCATION

18

Only Indicated and Inferred blocks greater than 5 g/t AuEq shown

NN

Polylithic Conglomerate

Siltstone, litharenite, pebble conglomerate

Fragmental Volcanic Rocks

Intensely Silicified

Conglomerate

Hbl-phyricLatite Flow

60°

5-10

10-20

20-60

>60

Key (g/t AuEq)

Page 19: Pretivm corporate february 2013 jjo

Source: Strathcona Mineral Services Limited, Meladine Project

BULK SAMPLE: SAMPLING & PROCESSING

Strathcona Mineral Services to oversee sampling

Sample tower located on site (Q2)

Remainder of sample to be processed to produce gold (H2)

19

Page 20: Pretivm corporate february 2013 jjo

2013 PLANS

20

H1 2013

Channel sample the ramp from West Zone to Valley of the Kings

Complete ramp from West Zone to Valley of the Kings

Underground sampling/drilling Valley of the Kings

Drill results

10,000-tonne underground bulk sample from Valley of the Kings

Sample Tower

H2 2013 (post bulk sample)

Process bulk sample

Valley of the Kings expansion drilling

Page 21: Pretivm corporate february 2013 jjo

PROPOSED MINE DEVELOPMENT

21

Oblique View of Mining Stopes, Valley of the Kings

S

N

100 m

Page 22: Pretivm corporate february 2013 jjo

2222

High-grade visible gold stringers within a lower grade (5g/t to 20g/t) gold quartz stockwork

Steeply dipping ore body

Competent ground conditions

Stope widths (15m wide X 30m high) appropriate both for transverse and longitudinal layouts

Cost effective

First 50 meters of Valley of the Kings ramp

Long hole stoping mining method:

MINING METHOD

Page 23: Pretivm corporate february 2013 jjo

MINE AND MILL SITE LAYOUT

23

Crushing

Grinding

Gravity Concentrate Circuit

Doré (50%-60%)

Flotation Concentrate Circuit

Off-take (40%-50%)

Flowsheet Summary:

Page 24: Pretivm corporate february 2013 jjo

BRUCEJACK PROJECT ECONOMICS

24

(1) Source: Technical Report and Updated Preliminary Economic Assessment of the Brucejack Project, effective date February 20, 2012

(2) Base case metals prices of US$1,100 /oz gold and US$21/oz silver

PEA is based on Mineral Resource estimates for the Valley of the Kings and West Zone effective November 28, 2011 which are now out-of-date.

February 2012 Preliminary Economic Assessment Results(1,2) :Processing rate 1,500 tpd

Mine life 24 years

Total gold production 6.9 million oz

Average annual gold production (Yrs 1-12)

325,000 ounces

Capex US$436.3 million

Total operating costs C$170.90/t milled

Internal Rate of Return

29.8%

Net Present Value (5% discount)

US$2.262 billion

Processing rate increased 2,700 tonnes per day

Mill facilities streamlinedFlotation concentrate to be sold to 3rd parties rather than refined on siteCapex and Opex savings, reduced project footprint

Metallurgy continues to be positiveFeasibility metallurgical studies confirm gold recoveries over 95%

Feasibility Study (expected Q2):

Page 25: Pretivm corporate february 2013 jjo

BRUCEJACK PERMITTING

25

1986

1989

1993

1998

1999

2006

2011-2012

2013

Reclamation Permit(MX-1-86)

Mine Development Certificate issued

April 15, 1993(MDC 92-06)

Project Assessment Certificate

(PAC 98-03)

Permitted for exploration and exploration road

(Pretivm) (MX-1-832), (MX-1-842)

Project Assessment Certificate allowed to

expire (Silver Standard)(PAC M98-03)

Approval in principle for

development of a mine at West Zone

Reclamation Completion(Silver Standard)

(MEND 9.1c)

Project Description under review for underground

mine at Brucejack’s Valley of the Kings

Brucejack Lake is not fish habitatWaste rock from 1980’s/1990’s underground development was deposited in Brucejack Lake as part of 1999 reclamation

More than 50% of tailings (targeting 60%) to be used for paste backfill and deposited underground, with remainder of tailings to be deposited in bottom 30 meters of Brucejack Lake

Page 26: Pretivm corporate february 2013 jjo

COMMUNITY ENGAGEMENT

26

Pretivm’s management team has been cooperatively engaging with First Nations and local community leaders in the Stewart, BC region for over 10 years

We work to ensure that our communication about the progress of the Brucejack Project is open and continuous

Commercial relationships with local First Nations developed during the exploration phase at Brucejack have been mutually successful

We will continue to extend both commercial contract and employment opportunities to locals whenever possible

Stewart warehouse constructed by development corporation of Skii km Lax Ha First Nation

Page 27: Pretivm corporate february 2013 jjo

PLANS FORWARD TO PRODUCTION

27

Key milestones

H2 2010

2011

2012

2013

2014

2015

2016

• Property acquired by Pretivm

• Completed additional drilling in Valley of the Kings

• Initiated feasibility study• Initiated exploration decline from

West Zone historic workings to Valley of the Kings

• Filed Project Description• Completed exploration access road

to Highway 37

• Complete feasibility study• Complete exploration decline for

underground test sample from Valley of the Kings

• Extract test sample from Valley of the Kings (10,000 tonnes)

• Basic and detailed engineering• Submit Environmental

Assessment Certificate (EAC) application

• Anticipate EAC issue

• Underground development

• Begin construction

• Construction• Begin commissioning• Ramp-up

• First resource estimate• Aggressive drill

program in Valley of the Kings

• Commercial production target

Page 28: Pretivm corporate february 2013 jjo

PRETIVM MANAGEMENT

28

Robert Quartermain, B.Sc., M.Sc., P.Geo, D.Sc. President & Chief Executive Officer, Director

Peter de Visser, CAChief Financial Officer

Joseph Ovsenek, B.A. Sc., P.Eng., LLBVice President & Chief Development Officer, Director

Ken McNaughton, M.A. Sc., P.Eng.Vice President & Chief Exploration Officer

Ian I Chang, M.A. Sc., P.Eng.Vice President, Project Development

Michelle Romero, B.A., M.L.S.Director, Corporate Relations

Kevin Torpy, B.Sc.Director, Mine Engineering

Warwick Board, Ph.D., P.Geo. Chief Geologist

Max Holtby, B.Sc., P. Geo.Director, Permitting

Andrew Saltis, I.Eng.Site Project Manager, Mine Manager

Page 29: Pretivm corporate february 2013 jjo

SHAREHOLDING & ANALYST COVERAGE

29

Institutions, 50%

Retail, 23%

Management, 5%

Silver Standard,

20%

Capital Structure(1)

Public Float 75.8Silver Standard Shares 19.0 Total Issued & Outstanding Shares 94.8 Incentive Options 8.5Total Fully Diluted Shares 103.3

Market Capitalization C$1.3 billion

Working Capital (at Sept. 30, 2012) C$59.8 million

Top Shareholders(2) (shares in millions)

Silver Standard Resources 18.986Royce & Associates 10.689Passport Capital 3.966 Fidelity Management 3.739Connor, Clark & Lunn 2.996Robert Quartermain 2.853 Norges Bank Investment 2.410Carmignac Gestion 1.898Sprott Asset Management 1.581

Analyst CoverageCIBC Jeff KilleenCitibank Alex HackingCormark Securities Richard GrayDahlman Rose Adam GrafGMP Securities Craig WestRBC Dan RollinsSalman Partners Ash GuglaniScotiabank Ovais HabibUBS TBDVery Independent Research John Tumazos

(1)As of January 22, 2013; ownership calculated on an undiluted basis.(2)As of January 22, 2013. Source: IPREO, SEDI

(shares in millions)

Page 30: Pretivm corporate february 2013 jjo

Kirkland Lake Mine(Kirkland Lake)

Kensington Mine(Coeur)

Casa Berardi(Aurizon)

El Penon Mine(Yamana)

Red Lake Mine(Goldcorp)

Pogo Mine(Sumitomo)

Valley of the Kings

F2 Deposit(Rubicon)

Buritica(Continental)

Cerro Negro(Goldcorp)

Eleonore(Goldcorp)

Cerro Moro(Yamana)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0M&I + Inferred Gold Resources (mm oz)

HIGH-GRADE GOLD WITH SIZE

30November 2012 Valley of the Kings High-Grade Gold Mineral Resource based on a cut-off grade of 5.0 grams of gold-equivalent/tonne.Data sources: Intierra Ltd., NRH.

Indicated Gold: 8.5 mm oz @ 16.4 g/t AuInferred Gold:2.9 mm oz @ 17.0 g/t Au

Page 31: Pretivm corporate february 2013 jjo

CONTACTPhone: 604-558-1784Fax: 604-558-4784Toll-free: [email protected]

HEAD OFFICEPretium Resources Inc.570 Granville St.Suite 1600Vancouver, BCCanada V6C 3P1

COMMON SHARESTSX/NYSE:PVGIssued: 94.8 millionFully diluted: 103.3 million52-week hi/low: $18.15/$10.94Market cap: $1.2 billion

Advancing a major high-grade gold resource in Canada


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