1. The Outlook for Precious Metals Mining On Top Intierra/Raw Material Group Stockholm 27 November 2013Jeffrey M. Christian Managing Partner jchristian@cpmgroup.com30 Broad Street, 37th Floor New York, NY 10004 www.cpmgroup.com

2. Slower Real Economic Growth Globally Long Term Real Gross Domestic Product Annual, Projected Through 2022 Percent Change 10 8Percent Change 10ActualProjected866442200 World-2-2Emerging and Developing Economies-4-4Advanced Economies -6-6 19801985199019952000200520102015p2020pSource: IMF, CPM Group Note: Historical data are IMF statistics. Projections are made by CPM Group. Projections for "Emerging and Developing Economies are only for BRIC countries, which account for approximately 52.8% of this category. Projections for "Advanced Economies" are only for the U.S., U.K., Eurozone, and Japan. These countries accounted for 82.2% of this category.2 3. The Outlook For Gold3 4. Gold Prices Nearby Active Comex Gold Futures High, Low, and Settlement Prices Daily, Through 19 November 2013 $/Ounce 2,000$/Ounce 2,000 1,9001,9001,8001,8001,7001,7001,6001,6001,5001,5001,4001,4001,3001,3001,2001,2001,1001,1001,000 Jan-101,000 May-10Sep-10Jan-11May-11Sep-11Jan-12May-12Sep-12Jan-13May-13Sep-134 5. Large Comex Gold Trading Volumes In October Contrary to market commentary: 1. More than of the trades have been heavy buying pushing prices higher; obviously not smack-downs. 2. No single entity but hundreds of algorithmic traders using similar systems generating the same sell points. Recent Major Intraday Price and Volume Changes Volume During Time IntervalTroy Ouncesas % of Total Daily December Contract Volumeas % of Total Daily Aggregate Futures VolumePrice Action during Daily Change in Time Interval S ettlement PricesDateTime IntervalS top Logic22-Oct8:20 - 8:30NA2,219,60013.9%12.6%$19.50$26.8017-Oct4:00 - 4:10No1,780,0008.2%8.1%$33.00$40.7015-Oct9:50 - 10:00No1,320,0006.5%6.1%$11.00-$3.4011-Oct8:50 - 9:0020 S econds2,810,00015.1%14.3%-$27.00-$28.709-Oct10:10 - 10:20No1,280,0008.1%7.8%-$10.00-$17.407-Oct9:50 - 10:00No1,140,00011.9%11.4%$11.00$15.201-Oct8:40 - 8:5010 S econds2,410,00011.3%10.9%-$24.00-$40.402,166,667 1,614,900 1.3411.5% 10.1% 1.1411.0% 9.6% 1.15-$20.33 $18.63 -1.09-$28.83 $19.83 -1.45Averages on Declines Averages on Increases Ratio of Declines to Increases Note: Time is military time, EDT. S ources: Reuters data, CPM Group5 6. The Outlook for Gold Gold prices have fallen to what CPM Group sees as a base. Prices may consolidate for a couple of years around $1,300 - $1,400 on an annual average basis, and may not fall much further. For prices to fall further economic conditions would have to improve dramatically more, which we do not see happening. For prices to rise more forcefully than we envision, economic conditions would have to deteriorate very sharply. This seems more possible than stronger than expected growth. Mine production continues to rise, but the growth expectations have been cut in half by lower gold prices and investor disenchantment with gold mining companies. Secondary supply has fallen sharply as prices declined 17% in 2013 alone. Investors have sharply reduced their gold buying. Still high, net purchases are off 25% in 2013. Those few central banks that were buying gold have pulled back on purchases, waiting to see how low prices will fall. Fabrication demand is rising modestly in line with lower gold prices and slow economic recovery. 6 7. Gold Investment Demand7 8. Investors Physical Gold Purchases Are Sharply Lower Investment Demand's Effect on Gold Prices Price Change Through 19 November 2013 Percent ChangeMillion Ounces110609050 Price ChangeNet Investment Demand (Right)7040503030201010-100-30-10 6669727578818487909396990205081113p 9. Gold Demand Is Up In China and Weak In India Total Indian Demand Million Ounces 40 Investment DemandTotal Chinese Demand Million Ounces 40Million Ounces 40Fabrication DemandNet Investment DemandMillion Ounces 40 Fabrication Demand3535353530303030252525252020202015151515101010105555000001 02 03 04 05 06 07 08 09 10 11 12 13p01 02 03 04 05 06 07 08 09 10 11 12 13p9 10. Spread Between Shanghai and London Gold Prices Spread Between Shanghai and London Gold Prices Monthly Average, Through October 30, 2013Spread Between Shanghai and London Gold Prices Daily, through 7 November 2013$/oz$/oz4040$/Oz$/Oz100100 Premium3535 8060604040203080200030 Premium2525 $18.9020 Annual Average Premiums152015 $8.8610$6.1010$5.24 55$2.2700 -20Discount -5-20-5-10-10 0304050607080910111213Discount -40-40 J-13F-13M-13A-13M-13J-13J-13A-13S-13O-13N-1310 11. Gold ETFs: Easy To Buy, Easy To Sell ETF Gold Holdings Through 30 October 2013 Million Ounces 90Million Ounces 90Annual Net Changes to Gold ETP Holdings Through October 2013 Million Ounces 25802020151510708025 Million Ounces10556000-5-550-10-10-15-15-20-20-2570-2540-3050 40-30 033060040506070809101112 13YTD302013201220112010200920082007200610200510200420200320 12. Record Investor Short Positions on Comex Earlier in 2013 Non-Commerical Positions in Comex Gold Futures & Options. Weekly Data, through 12 November2013 Million Ounces 35Million Ounces 35 3030 Net Fund Position in Comex2525 Long2020151510105500-5-5 Short-10-10-15 A-95-15 J-97S-98J-00M-02D-03A-05M-07F-09O-10J-12 13. Gold Supply, Fabrication Demand, and Official Transactions13 14. Total Supply Declining, But Mine Production Is Rising Total Gold Supply Annual, Projected Through 2013 Mln Oz 140Mln Oz 140 Secondary Supply120120 Transitional Economies Exports to Market Economies100100Market Economy Mine Production808060604040202000 737577798183858789919395979901030507091113p 15. Gold Mine Supply In Fact Was Flat Between 2000 and 2012 Total Gold Mine Supply Annual, Projected Through 2013Transitional Economies Exports to Market Economies Market Economy Mine ProductionMln Oz3.3%90 80 70 60 50 40 30 20 10 0 0001020304050607080910111213p15 16. It Has Risen More Than 11 Million Ounces Since 2008 Total Gold Mine Supply Annual, Projected Through 2013 Transitional Economies Exports to Market Economies Market Economy Mine ProductionMln Oz 908515.8% 8075706560 080910111213p16 17. Mine Supply Is Forecast To Be The Second Highest On Record in 2013 Total Gold Supply Annual, Projected Through 2013 Mln Oz 90 Transitional Economies Exports to Market Economies 80 Market Economy Mine Production 70 60 50 40 30 20 10 0 737577798183858789919395979901030507091113p17 18. Lower Gold Prices Have Slashed Estimated Gross Additions to Gold Mine Production Capacity Almost By Half September 2013January 2013 Mln. Oz. 40Mln. Oz. 40 Post 2016 35Mln. Oz. 40Mln. Oz. 40 Post 20163520163535 2016302015303030 20152014 25252525 20142013 2020201515151510101010555500002013201420152016Post 2016202013201320142015Note: Post 2016 data refers to 2017 through 2022.2016Post 2016Note: Post 2016 data refers to 2017 through 2022.18 19. Effective Hedging Is Needed, But Faces The Same Old Obstacles Producers this month could lock in a guaranteed floor of $1,110 per ounce and given up only $60 of any upside. Gold HedgeFor Dec 2014Obstacles To Effective HedgingIndicatively priced on 10 October 2013 Mining companies often lackUS$ / Ounce - Sales Price 2,000financial expertise to evaluate, counter-bid, and effectively manage hedging programs.1,800 1,600 Banks offer less than ideal hedges to mining companies, which lack the internal capacity to evaluate proposed hedges and counter-bid.1,400 1,200$1,100 Floor1,000 800Spot Sales600 6008001,0001,2001,400Market Price1,6001,8002,000 Conflicts of interest and obstacles from the 1990s still exist in the market.19 20. Gold Fabrication Demand Gold Fabrication Demand Projected Through 2013 Million Ounces 120Million Ounces 120 Jewelry Developed CountriesOther Uses 100100 Dental/ Medical8080 Electronics60604040Jewelry - Developing Countries202000 77808386899295980104071013p 21. Official Transactions, Adjusted for Turkish Central Bank Additions Official Transactions Annual Data, Projected through 2013 Million Ounces 20 Net Additions 15Million Ounces 20Adjusted for Turkish Central Bank's ROM Gold1510105500-5-5-10-10-15-15-20-20-25-25Net Reductions-30-30-35-35 808386899295980104071013pNote: Turkey introduced a policy in 2011 that allowed commercial banks to use gold to meet a portion of their reserve requirements. The bank included this gold in its monetary reserves. Because these additions were not outright central bank purchases and no ownership has been transferred from the actual owner to the central bank, annual official transactions have been adjusted to exclude Turkish central bank gold additions since 2011. 22. Why are Central Banks Adding Gold to their Monetary Reserves? Currency Composition of Official Foreign Exchange Reserves 100% 90%Yen, 6.8%80% 70%Euro 27.3%Other, 4.8% Pound, 2.1%Yen, 6.1%Other, 1.8% Pound, 2.8%Other, 5.9% Pound, 4.1% Yen, 4.1%Euro 18.3%Euro 24.1%60%50% 40% 30%U.S. Dollar 59.0%U.S. Dollar 71.1%U.S. Dollar 61.8%20% 10% 0% 199520002012Note: 1995 Claims in Euros refers to the sum of claims in Deutschemarks, French francs, Netherland guilders, and the European Currency Unit. 2012 data is end-September. Other years is year-end data. Source: IMF Statistics Department COFER database and International Financial Statistics. 23. Silver 24. Silver Prices: Waning Investor Interest Comex Silver Prices Daily, Through 19 November2013 $ / Oz$ / Oz55555050454540403535303025252020151510 Jan-1010 May-10Sep-10Jan-11May-11Sep-11Jan-12May-12Sep-12Jan-13May-13Sep-13 25. Key Silver Market Trends Investment Demand is projected to decline 43% to 97.5 million ounces in 2013, despite an expected 30 million ounce increase in coin demand. Large institutional and high net worth individuals with short to medium term investment horizons appear to be selling their bullion due to cyclical weakness.Silver Supply and Demand Balance Projected Through 2013 Million Ounces110010001000900900800Total Newly Refined Supply may decline 5% in 2013, mostly due to the 19% drop in old scrap, a highly pricesensitive source of supply.Million Ounces1100Fabrication Demand800700700600600Supply 500Fabrication Demand is expected to rise to 838.7 million ounces this year, up 3% from a year ago. This increase is almost entirely driven by the 17.6 million ounces increase in jewelry and silverware demand, which has benefitted from lower silver prices.500400400300300200200 60 63 66 68 72 75 78 81 84 87 90 93 96 99 02 05 08 11 26. Silver Investment Demand to Drop 43% This Year Silver Market Balance Projected Through 2013, Prices through 2012 Million Ounces$/Ounce 50250Net AdditionsNet Changes in Inventories452004015035100305025020-50Price (LHS) 15-10010-1505-200Net Withdrawals 0-250 6064687276808488929600040812e 27. Investment Demand Trends by Source Investment Demand by Region Mln OzInvestment Demand by Major Investment Vehicle Mln Oz250250Mln OzOther 200200China India250Net Investment Demand200150Mln Oz250200Other Net Investment Demand150150150ETPs 1001001005010050Coins 500 05000 -50-100-50-100-150-150-200-200-50-100-100-150-1502003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Note: Bars represent gross investment demand.-502002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Note: Bars represent gross investment demand. 28. Silver ETFs And Ample Silver Inventories Silver ETP Holdings Through October 2013 Mln Oz700600500 ZKB400300 SLV200100 CEF0 2000200320052007200920112013 29. Major Short Building in 2012 and 2013 Gross Long and Short Positions of Non-Commercial Positions Comex Silver Futures and Options. Weekly Data, Through 12 November 2013 Mln OzsMln Ozs400400 Net Fund Position in Comex350350300 250300 Long250200200150150100100505000-50-50-100-100 Short-150-150-200 A-95-200 M-97J-99A-01S-03N-05D-07J-10F-12 30. Total Supply is Expected to Decline 5% in 2013 Annual Total Supply Projected Through 2013 Million OuncesMillion Ounces 1,1001,1001,0001,000Net Exports from Tran. Econ. 900900800800Secondary700700 Government Disposals600600500500400400300300 Mine Production20020010010000 788082848688909294969800020406081012e 31. Secondary Supply Rose in 2012, but is Projected to Decline 19% in 2013 Annual Secondary Supply Projected Through 2013 Million OuncesMillion Ounces 350350South Asian Exports 300300Indian Scrap 250250Demonetized Coins 200200Old Scrap 150150100100505000 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12e13p 32. Fabrication Demand Expected to Rise 3% in 2013 Annual Total Fabrication Demand Projected Through 2013 Million OuncesMillion Ounces 1,0001,000 Biocides900900 Super Conductors800800 Net Imports into Transitional EconomiesOther Uses700700Jewelry and Silverware 600600 Photography Electronics500500400400 Jewelry and Silverware300300200200100100Photography00 77798183858789919395979901030507091113p 33. Electronics Demand Growth is Slowing Silver Fabrication Demand for Electronics and Batteries Annual, Projected Through 2013 Million Ounces 260Million Ounces 260240240220220200200 Other Countries180180160160China140140120120 JapanEurope100100808060604040 U.S.202000 7779818385878991Note: Prior to 2000, China was excluded from market economy demand statistics.9395979901030507091113p 34. First Drop in Silver Demand from Photovoltaics in 2012, Recovered in 2013 Solar Panel Silver Demand, Installations, and Production Projected Through 2013 Million OuncesGigawatts6060PV Silver Demand (Left Scale) 5050Solar Panel Installations 404030302020101000 0001020304050607080910111213p 35. Chinese Silver Imports are Down 40% This Year Through September Chinese Silver Imports and Exports Monthly, Through September 2013 MozMoz25252020151510105500-5-5-10-10 Gross Imports-15 -20Gross Exports-15 -20Net Trade-25-25 J-05S-05M-06J-07S-07M-08J-09S-09M-10J-11S-11M-12J-13 36. Indian Silver Imports Have Doubled from Last Year So Far Reported Net Silver Imports to India Annual, through June 2013 Million Ounces 200 180 160 140 120 100 80 60 40 20 0199920012003Note: Light blue bars are January through June only. Source: GTIS - HS Code 710620052007200920112013 YTD 37. CPM Group Precious Metals Yearbooks & Other ReportsFor general inquiries, email info@cpmgroup.com 37