1. The ‘New’ Americas Gold Play
Mackie Research Capital Gold Conference 2010 TSX:P
October 2010
2. Cautionary Statement TSX:P
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 preliminary prospectus and will be detailed from time to time in the Company’s interim and annual financial statements and
management’s discussion and analysis of those statements, 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 (“NI43-101”)),
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$.
2
4. Strategy of Growth
Acquisition Track Record TSX:P
GROWTH TARGETED GROWTH OBJECTIVE1
2010-2011: Optimization & resource expansion LEADING MID-TIER
GOLD PRODUCER
2011-2012: Potential Latin American acquisitions 400
Leading mid-tier gold producer by 2013
LATIN AMERICAN
ACQUISITIONS
LOW CASH COST
300
Below industry average cash costs
SAN DIMAS
LOW RISK OPTIMIZATION
ACQUISITIONS
Maintain balance sheet strength 200
EXPLORATION
Un-hedged gold OPTIMIZATION
Americas pro-mining jurisdictions only
SAN DIMAS
RESPONSIBILITY 100
(GOLD EQUIVALENT OUNCES)
Sustainable growth
Commitment to leading CSR programs
0
2010 2011 2012 2013
1. Production based on five year average, source NI 43-101 technical report 4
5. Capital Structure TSX:P
Cash ~$50 million Shares outstanding 88 million
Debt $50 million1 Fully diluted 117 million
Convertible note $60 million Warrants outstanding 22 million
(1) 5 year, 6% note repaid $5M/yr with balloon payment at end of year 5
Options outstanding 8 million
Price (C$) Volume (000)
9 1400
Jul 8, 2010 Aug 19, 2010
8 June 2, 2010 Announced revised Commenced 1200
Announced San Dimas Terms of offering and trading on TSX
7
acquisition, San Dimas acquisition
1000
6 Joe Conway
appointed CEO 800
5
Sep 20, 2010
4 Aug 6, 2010 600
Q3 Exploration
Completion of
3 Update
San Dimas acquisition 400
2
200
1
0 0
January February March April May June July August September
5
6. Financial Strength
Sufficient Capital to Fund Growth TSX:P
Cash flow engine to fund growth ~$50 million cash
~$70 million operating cash flow/yr Robust operating margins
After Tax Operating Cash Flow1,2 ($M) After Tax Cumulative Cash Balance1,3 ($M)
$90 $900 Au / $15.00 Ag $1,220 Au / $17.50 Ag $350 Free Cash Flow Opening Cash
$80
$300
$70
$250
$60
$50
$200
$40
$150
$30
$100
$20
$1,220 Au /
$1,220 Au /
$1,220 Au /
$1,220 Au /
$1,220 Au /
$17.50 Ag
$17.50 Ag
$17.50 Ag
$17.50 Ag
$17.50 Ag
$50
$15.00 Ag
$15.00 Ag
$15.00 Ag
$15.00 Ag
$15.00 Ag
$900 Au /
$900 Au /
$900 Au /
$900 Au /
$900 Au /
$10
$-
$-
YEAR1 YEAR2 YEAR3 YEAR4 YEAR5 YEAR1 YEAR2 YEAR3 YEAR4 YEAR5
1. Includes Silver Wheaton contract impact, resulting in an effective tax rate of approximately 55%
2. Includes interest expense on the Goldcorp promissory and convertables notes
3. Free cash flow includes interest expense on the Goldcorp secured promissory and convertible notes and principal repayment on the Goldcorp secured promissory note (principal on convertible note is paid through excess cash 6
from financing and exercise of warrants)
7. Improved Cash Flow
Amended Silver Agreement
Old Agreement
To 25 Years All silver sold at ~$4 for 25 years (19 years remaining)
Amended Agreement
First 3.5 million oz Ag plus 50% of excess sold to SLW at ~$4
First 4 years
50% of Ag production above 3.5 million oz sold at spot
First 6 million oz Ag plus 50% of excess sold to SLW at ~$4
Year 5 to LOM
50% of Ag production above 6 million oz sold at spot
Increased Gold Equivalent Ounces1
Amended Goldcorp 250
Gold Eq Additional Gold Eq Gold
Five year average annual : Agreement1 2009
200
Production1
Gold (oz) 107,000 113,000 150
Gold Eq (Au Eq oz) 157,000 113,000
Spot Silver Exposure2 (oz) 1,800,000 0 100
Cash Cost1
Co-product (per Au Eq oz) $337 $392 50
By-product (per oz) $60 $287
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1. Average annual production and cash cost for next 5 years, gold equivalent based on $900/oz gold and $15/oz silver
2. Attributable to Primero under amended silver purchase agreement and based on NI 43-101 report
Source: NI 43-101 technical report and Goldcorp public reports
7
8. San Dimas
Solid Platform with expansion & exploration potential TSX:P
World-class gold-silver mine plus 227km2 of
exploration concessions in epithermal district
San Dimas
250 year history with historical production estimated Mazatlan Durango
at 11 million ounces of gold and over 582 million
ounces silver
Ownership 100%
Skilled workforce of 1,080 people Location Mexico
Production1 157,000
SAN DIMAS HISTORICAL GOLD PRODUCTION Estimated 5 year average gold equivalent ounces
180 9.0
Au (LHS) Cash Cost1 $337
160 Au Grade (RHS) 8.0 Estimated 5 year average per gold equivalent ounce
140 7.0
Est. LOM 25 years
Au Production (koz)
120 6.0
Proven & Probable Reserves
Au grade (g/t)
100 5.0 (at Dec 31, 2009)
Tonnes Gold Silver Gold Silver
80 4.0 (millions) (g/t) (g/t) (Moz) (Moz)
60 3.0 5.6 4.8 339 0.9 60.9
40 2.0 Inferred Resources
(at Dec 31, 2009)
20 1.0 Tonnes Gold Silver Gold Silver
(millions) (g/t) (g/t) (Moz) (Moz)
- -
2003 2004 2005 2006 2007 2008 2009 15.2 3.3 317 1.6 154.6
1. Average annual production and cash cost for next 5 years, gold equivalent based on $900/oz gold and $15/oz silver
Source: NI 43-101 technical report
8
9. San Dimas
2010 Guidance TSX:P
Goldcorp Inc. Primero
Reported Unaudited
Estimated Estimated
Jun 30, Jul 1, 2010 to
Aug 6, 2010 to Dec 31, 2010 Full Year 2010
2010 Aug 5, 2010
Gold produced
(ounces)
45,800 7,700 37,000-42,000 90,000-95,000
Silver produced(1)
(ounces)
2,315,500 429,900 1,755,000-1,955,000 4,500,000-4,700,000
Total cash costs(2)
(per gold equivalent ounce)
$529(3) $655 $450 - $480 $500 - $530
Total cash costs(2) - by-product
(per gold ounce)
$411 $555 $330 - $360 $390 - $420
Capital expenditures
(US$ millions)
10 4 12 26
1) Refer to slide 8 for silver purchase agreement details
2) Cash costs are a non-GAAP performance measure
3) Calculated from Goldcorp Inc.’s Second Quarter 2010 Report
Material assumptions used to forecast total cash costs (1) for 2010 include: $1,200 per ounce for gold; by-product silver price of $4.04 per ounce; an oil price of $95 per barrel and foreign exchange rates of 1.03 Canadian dollars and
12.63 Mexican pesos to the US dollar. 9
11. Established Infrastructure
Building for the Future TSX:P
Mill capacity 2,100 tpd - expansion potential
Dry tailings filter plant, capacity 2,100 tpd
RECENT INVESTMENTS
New tailings pumping system
Tunnels connecting Central Block to Sinaloa Graben
Las Truchas Hydro Plant
CURRENT PROJECTS
Tailings Filter 3
Waste Rock Impoundment
New Sub Station
1. Source NI 43-101 technical report 11
13. Infrastructure Projects
New Waste Rock Impoundment TSX:P
3 million m3 Capacity
Proper disposal for waste rock
San Luis bridge: safer, all seasons access
Access
road
Cementery
Cut Slope Wall protection
(250 m)
Slope
Slope
Slope
13
14. Infrastructure Projects
Las Truchas Hydro Plant TSX:P
Clean, low cost energy
7.3MW of installed capacity
Truchas avg cost: $0.015 per kw/hr
CFE general Grid avg cost: $0.11 per kw/hr
Provides 76% of San Dimas energy demand
Savings of ~$4.8M per year
Saves 23,500 tonnes of CO2 greenhouse gas
Power line prepared for 14 MW
2011: Stage 2 - additional 7MW
14
15. Optimization Review
Expansion Opportunity TSX:P
Mine planning:
• Ensure sufficient production headings
• Strategic tunnel planning
Operate mill at design capacity
• Current:~1,900 tpd, Design: 2,100 tpd
Match milling to leaching capacity
• Mill: 2,100 tpd, Leach: 2,500 tpd
Complete technical review in 2010
15
17. Long History of Reserve Growth TSX:P
San Dimas Historical Reserve Growth and Cumulative Production1
7
5
3
AuEq (Moz)
1
1
3
5
Reserve (Beg. of Year) Add'l Resource (Beg. of Year) Cumulative Production
1 Shows San Dimas total gold equivalent ounces based on a 60:1 ratio, part of which is under a silver purchase agreement as detailed in slide 8 17
18. Proven 90% Resource Conversion
Opportunity for Long Term Strategic Planning TSX:P
San Dimas Reserve Replacement based on Au ounces (2003-2009)1
1,000,000
Reserve Additions Production
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Initial 2003 2004 2005 2006 2007 2008 2009 End
Proven & Probable Reserves (as at Dec. 31, 2009) Inferred Resources (as at Dec. 31, 2009)
(exclusive of reserves)
million Gold Silver Gold Silver million Gold Silver Gold Silver
tonnes (g/t) (g/t) (Moz) (Moz) tonnes (g/t) (g/t) (Moz) (Moz)
5.6 4.8 339 0.9 60.9 15.2 3.3 317 1.6 154.6
1. NI 43-101 technical report 18
19. Significant Exploration Upside
A Key Focus TSX:P
More than 100 known veins in district
Significant new high-grade veins in the Sinaloa Graben
Sinaloa Graben million ounce resource potential (only 27koz at Dec. 31, 2009)
Additional discoveries likely and will add to current reserves
Likely lead to increased 2011 exploration budget
19
20. 2010 Exploration Success
Already Replaced 2010 Production TSX:P
2010 exploration budget of $13.5 million
Total 2010 exploration drilling - 38,000 metres
28,000 metres completed to date
Already nearly replaced estimated 2010 production:
additional 83,000 ounces of gold & 5.3 ounces of silver
Intercepts well above reserve grade
Estimated Proven & Grade (g/t) Gold Silver
Tonnes
Probable Reserves Gold Silver (ounces) (million ounces)
Exploration Drilling 219,302 5.1 348 36,000 2.5
Exploration Drifting 199,948 7.2 439 47,000 2.8
Total New Reserves 419,250 6.1 391 83,000 5.3
20
21. Exploration Success Throughout
Higher Grade and New Reserves TSX:P
DDH Ag g/t Au g/t m
RO-16-02 132
RO-20-05 514
3.27
4.23
1.43
1.27
SAN FRANCISCO N
Tayoltita
Central Block Block CULEBRA Arana
CANDELARIA
Hanging Wall
San Vicente Tayoltita
DDH Ag g/t Au g/t m
Area mine
A-25-217(1) 778 7.9 0.80
Central
HW-4G-01B 302 8.7 0.60
Block mine
BLENDITA
CORONADO PATRICIA
DDH Ag g/t Au g/t m
Santa Rita
MAR-9-17 514 8.86 2.45 Pilar
mine
mine
5 HERMANOS LEGEND
DDH Ag g/t Au g/t m S. ANTONIO
EL SOL
SOL-9-02 549 10.67 1.81 Mill
Ag-Au High
West Block GUADALUPE Grade Trend
TAYOLTITA Proposed Tunnel
San Antonio Tunnel Budget 2010
mine Tunnel done
EL CRISTO
TUNNEL
ROSARIO
Vein
SINALOA
GRABEN TUNNEL
DDH Ag g/t Au g/t m Fault
TGS-S-22 958 6.81 8.56
EL ABRA
Town
TGS-S-15 403 8.08 7.52 LA VERDOSA
RAMP
Mill
DDH Ag g/t Au g/t m
VERDOSA 0 1 2 km
RAMP7-129W 1,115 10.30 2.75
Piaxtla River
(Source: San Dimas Geological Office) 21
23. Unlocking Value TSX:P
2010E Gold Eq Production (000 oz)1 2010E Cash Cost ($/Au Eq oz)1,2 Market Capitalization ($B)1
450 $800 $3.0
400 $700
$2.5
350
2010 Gold Eq Production (000 oz)
$600
Market Capitalization (US$B)
300 $2.0
US$/Au Eq oz $500
250
$351
$400 $1.5
200
149
$300
150 $1.0
$200
100
$0.4
$0.5
50 $100
0 $0 $0.0
Primero
Primero
Lake Shore
Lake Shore
New Gold
Alamos
Alamos
Golden Star
New Gold
Aurizon*
Golden Star
Aurizon*
Northgate
Minefinders
Northgate
Minefinders
Gammon
Gammon
Kirkland*
Kirkland*
B2Gold
B2Gold
Jaguar*
Jaguar*
Aurizon*
Primero
Alamos
Golden Star
New Gold
Lake Shore
Northgate
Minefinders
Gammon
Kirkland*
B2Gold
Jaguar*
1. Estimates based on Canaccord Genuity research (except for names noted with “*” which are based on company reports and street estimates); Canaccord Genuity prices: Gold Price: 2010: $1,215, 2011: $1,200, 2012:
$1,100, 2013: $1,000, 2014: $900, LT: $900; Silver Price: 2010: $18.80, 2011: $19.00, 2012: $18.00, 2013: $17.00, 2014: $16.00, LT: $16.00; Primero 2010E gold equivalent production is annualized.
2. Cash cost based on total cash cost per gold equivalent ounce
Note: As of Sept. 2, 2010
23
24. P/NAV Multiples TSX:P
P/NAV Multiples (5% $900 Au/ $16 Ag)1,2
3.0x
2.5x
Inter. Average: 2.11x
2.0x
1.5x Jr. Average: 1.40x
1.0x
1.14x
0.5x
-
Eldorado
Gammon
Primero
B2Gold
Jaguar*
Alamos
Yamana
Randgold
Northgate
Agnico
New Gold
Lake Shore
Minefinders
Aurizon*
Golden Star
IAMGOLD
Red Back
Kinross
Barrick
Kirkland*
Silver Wheaton
Goldcorp
Junior Intermediate Senior
1. Estimates based on Canaccord Genuity research (except for names noted with “*” which are based on company reports and street estimates); Canaccord Genuity prices: Gold Price: 2010: $1,215, 2011: $1,200, 2012: $1,100,
2013: $1,000, 2014: $900, LT: $900; Silver Price: 2010: $18.80, 2011: $19.00, 2012: $18.00, 2013: $17.00, 2014: $16.00, LT: $16.00
2. Primero NAV calculation assumes non-NI 43-101 resources upside
Note: As of Sept. 2, 2010
24
25. Cash Flow Multiples TSX:P
Cash Flow Multiples (2010)1,2
35x
30x
25x
Inter. Average: 18.8x
20x
Jr. Average: 15.9x
15x
10x
5x
6.4x
-
Minefinders
Jaguar*
Primero
Alamos
Randgold
B2Gold
New Gold
Yamana
Northgate
Agnico
Kinross
Aurizon*
Eldorado
IAMGOLD
Golden Star
Kirkland*
Red Back
Silver Wheaton
Gammon
Barrick
Goldcorp
Junior Intermediate Senior
1. Estimates based on Canaccord Genuity research (except for names noted with “*” which are based on company reports and street estimates); Canaccord Genuity prices: Gold Price: 2010: $1,215, 2011: $1,200, 2012: $1,100,
2013: $1,000, 2014: $900, LT: $900; Silver Price: 2010: $18.80, 2011: $19.00, 2012: $18.00, 2013: $17.00, 2014: $16.00, LT: $16.00
2. Operating cash flow includes interest payments on Goldcorp note
Note: As of Sept. 2, 2010 25
26. Why Primero Mining? TSX:P
Established Mexican operations
157,000 gold equivalent ounces (2010-2014 average)
Significant cash flow
Market preferred geography
Proven management & board
Acquisition & operations track record
Long life, low cost production
P&P reserves of 860,000 oz Au and 61 M oz Ag
Total resources of 2.5 M oz Au and 216 M oz Ag
Industry low cash cost profile
Ideal growth platform
Well positioned to quickly become a leading mid-tier gold producer
Attractive valuation – re-rating opportunity
Potential re-rating as Primero trades at a discount to peers on all significant value metrics
Source: Production, cash cost and resource numbers from NI 43-101 technical report 26
28. Experienced Management TSX:P
Wade Nesmith | Executive Chairman
Founder of Mala Noche and CEO since incorporation
Former President of Westport Innovations (Europe)
Founding and current director of Silver Wheaton, Chairman of each of
Geovic Mining and Selwyn Resources
Joseph F. Conway | President and C.E.O.
Former CEO, President and Director of IAMGOLD from 2003 to 2010
Grew IAMGOLD from a $50 million royalty company to a $6 billion
intermediate gold producer with a sector leading growth profile
Eduardo Luna | 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
Chairman of the Advisory Board of the Faculty of Mines at the University of
Guanajuato and of the Mineral Resources Council in Mexico
28
29. Board of Directors TSX:P
Wade Nesmith | Chairman Michael Riley
Chartered accountant with more than
Joseph F. Conway 26 years of accounting experience
Chair of the audit committee of B.C.
Eduardo Luna Lottery Corporation and Seacliff
Construction
Timo Jauristo
Robert A. Quartermain
EVP, Corporate Development, Goldcorp
Former President, Silver Standard
Director of Vista Gold Corp. and
Rohan Hazelton Canplats Resources
• VP, Finance, Goldcorp
Grant Edey
David Demers Director of Breakwater Resources and
Founder, CEO and Director Westport former director of Queenstake
Innovations Resources and Santa Cruz Gold
Director of Cummins Westport and Former CFO, IAMGOLD
Juniper Engines
29
30. District Wide Upside – Long Section TSX:P
2010 2010
Priority Priority
SW NE
San Antonio Sinaloa Graben Central Block Tayoltita Block Arana
West Block Castellana and
3,000 m.
Block Robertas Hanging Wall 3,000 m.
2,000 m. 2,000 m.
1,000 m. 1,000 m.
Source: San Dimas Geology Office
Mineralization – Ore Bodies Extension of the Favorable Horizon 0 1 2
Favorable Horizon Potential K I L O M E T E R S
30
31. PRIMERO MINING CORP.
Richmond Adelaide Centre
120 Adelaide Street West, Suite 1202
Toronto, ON M5H 1T1
T 416 814 3160 F 416 814 3170
TF 877 619 3160
Email: info@primeromining.com
INVESTOR RELATIONS
Tamara Brown
Vice President, Investor Relations
T 416 814 3168
tbrown@primeromining.com
The ‘New’ Americas Gold Play
