The 100%-controlled Phoenix Gold Project is an advanced stage, high-grade gold project located in Red Lake, Ontario, Canada, a low-political risk jurisdiction. The Phoenix Gold Project is fully permitted and well-funded to develop the project compared to peers. The Company anticipates construction completion and potential gold production in the second half of 2014.

Phoenix Gold Project Timeline

High-Grade Deposit

• High-grade resource 0.5MM oz @ 14.5 g/t Indicated, 2.3MM oz @ 17 g/t Inferred
• Intersections at depth, below the 1200m elevation are in the order of 32 g/t gold
• In the 95th percentile of high-grade deposits**… higher grade than most of our peers

**Source:  Natural Resource Holdings,  Global Gold Mining & Deposits 2012 Ranking (over 1 MM oz.)

Robust High-Grade Gold Mineralization

Capped using 270 g/t gold block model ID3 method and prepared by AMC Mining Consultants (Canada) Ltd. See news release dated June 29, 2011 for further information and also the forward looking statements section in this presentation.  Inferred resources are too speculative to have economic consideration applied to them and there is no certainty that inferred resources will be converted to measured and indicated resources. 

Positive Preliminary Economics

• PEA 48% IRR @ $1500/oz gold
• Initial capex $214 million
• Low opex $519/oz
• Sustaining capital $126 million
• Estimated $400 million tax pool loss on start up

Project Optimization

• 100,000 metres of additional drill data collected over the past 12 months
• Introduction of more productive/lower cost longhole mining method
• Introduction of more productive mechanized equipment
• Improvement of development and infrastructure layout for more efficient material handling (ramp and haulage system)
• Evaluating increased throughput in order to optimize ounces produced
• Extension of shaft deeper than 610m elevation would allow access to more mining areas and delay requirement to set up for a second phase of sinking
• Develop deep exploration platform to follow up on higher grade intercepts at depth 

Low Risk

• Safe jurisdiction in Red Lake, Ontario, Canada
• Tax environment in Ontario (29.7%) is the most favourable in Canada
• Good relations with Lac Seul First Nation and good history of consultation with other Aboriginal communities
• Fully permitted to production
• Substantial infrastructure, including grid power
• Project well funded for existing PEA
• Experienced management team
• Project well advanced
• $201 million financing completed
• By end of December, 2012, approximately $85 million of capex will have been incurred

Drilling

• Infill drilling results positive to date
• Modeling of gold zones ongoing

Example High-Grade Gold Intercepts from F2 Discovery

Preliminary Economic Assessment Report

On June 29, 2011, the Company issued a press release to announce positive results of a PEA for its 100%-owned F2 Gold System, part of its Phoenix Gold Project. A copy of the full report is available on SEDAR. The PEA was prepared by AMC Mining Consultants (Canada) Ltd. ("AMC") with metallurgical sections prepared by Soutex Inc. ("Soutex") both of which are independent of the Company. The highlights of the PEA are included below.

PEA Highlights

The PEA was prepared by AMC Mining Consultants Ltd. (“AMC”) with metallurgical sections prepared by Soutex Inc. (“Soutex”) both of whom are independent of the Company as defined by NI 43-101. Please refer to the forward Looking Statements and Cautionary note in the News Release dated June 29, 2011.

Resources*

* - Based on 245,142 metres drilling to end February, 2011
- Capped block model prepared by AMC Consulting (Canada) Ltd.

Capped using 270 g/t gold. Block model ID3 method. Refer to the Forward Looking Statements and Cautionary note in the News Release dated June 29, 2011. Inferred resources are too speculative to have economic consideration applied to them and there is no certainty that inferred resources will be converted to measured and indicated resources.

Permitting

The Company’s Production Closure Plan was approved by the Ontario Ministry of Northern Development and Mines (“MNDM”) on December 2, 2011.  The remaining permits required for the projected production phase of the Phoenix Gold Project, as contemplated in the Preliminary Economic Assessment contained in the technical report filed on SEDAR on August 11, 2011 (the “PEA”), were received during the three months ended March 31, 2012.

Aboriginal Consultations

Consultations are ongoing with the local First Nations and Métis communities.

Infrastructure

• Connected to Ontario hydro grid 44KV
• Shaft access with modern hoisting plant
• Shaft deepening in progress, currently at >500m depth
• All weather road connecting to Red Lake
• New headframe
• Modern hoisting facility, 2500HP, 14’ diameter hoist
• Mill processing facility and tailings impoundment under construction
• Lateral development to date: 2,750m
• Raising to date: 625m

Date of Issue: March, 2013