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Equinox Gold Corporate Presentation
Equinox Gold and Leagold have merged to form a leading gold producer in the Americas, aiming for annual production of 1 million ounces by 2021 with significant financial backing and multiple operational assets. The combined company boasts substantial reserves, including 12.7 million ounces in proven and probable reserves, along with a $670 million financing package. Both companies stress the importance of strong liquidity and growth potential while providing caution about risks associated with forward-looking statements and resource estimates.
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Equinox Gold Corporate Presentation
- 1. Equinox Gold andLeagold Combine to Create a Premier Americas Gold Producer BMO Global Metals & Mining Conference February 2020
- 2. 2 Cautionary Statements Forward-looking Statements Thispresentation contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation and may include future-oriented financial information. All statements, other than statements of historical fact, are forward-looking statements. These include statements regarding Equinox Gold and Leagold’s intent, or the beliefs or current expectations of the officers and directors of Equinox Gold and Leagold (the “Companies”) for Equinox Gold post-closing. Forward-looking statements or information in this presentation relate to, among other things: future operational performance, including estimated production of gold; the ability of the Companies to successfully operate their respective assets and achieve the anticipated production and financial metrics for each project prior to closing of the Transaction; the ability of the combined company to successfully operate the assets and achieve the expected operational metrics; development and timing of anticipated production at Castle Mountain and the other growth projects; and the growth potential of the combined company. As well, forward-looking statements may relate to future outlook and anticipated events, such as the consummation and timing of the Transaction; the satisfaction of the conditions precedent to the Transaction; the strengths, characteristics and potential of the combined company; the underwritten term loan, revolving credit facility and the financings by Ross Beaty and Mubadala; and discussion of future plans, projections, objectives, estimates and forecasts and the timing related thereto. Forward-looking statements or information generally identified by the use of the words “expects”, “will”, “underway”, “targeted”, “planned”, “objective”, “expected”, “potential”, “continue”, “estimated”, “would”, “subject to” and similar expressions and phrases or statements that certain actions, events or results “may”, “could”, “should”, “will be taken” or “be achieved”, or the negative connotation of such terms, are intended to identify forward-looking statements and information. Although the Companies believe the expectations reflected in such forward-looking statements and information are reasonable, undue reliance should not be placed on forward-looking statements since the Companies can give no assurance that such expectations will prove to be correct. The Companies have based these forward-looking statements and information on the Companies' current expectations and projections about future events and these assumptions include: tonnage of ore to be mined and processed; ore grades and recoveries; prices for gold remaining as estimated; the assets operating in accordance with current expectations; construction at Castle Mountain being completed and performed in accordance with current expectations; currency exchange rates remaining as estimated; capital, decommissioning and reclamation estimates; the Companies' mineral reserve and resource estimates and the assumptions on which they are based; prices for energy inputs, labour, materials, supplies and services; and the Companies' ability to comply with permit requirements and all environmental, health and safety laws. While the Companies consider these assumptions to be reasonable based on information currently available, they may prove to be incorrect. Accordingly, readers are cautioned not to put undue reliance on the forward-looking statements or information contained in this presentation. The Companies caution that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this presentation and the Companies have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in gold prices; fluctuations in prices for energy inputs, labour, materials, supplies and services; fluctuations in currency markets; operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, usual or unexpected geological or structural formations, cave-ins, flooding and severe weather); inadequate insurance, or inability to obtain insurance to cover these risks and hazards; employee relations; relationships with, and claims by, local communities and indigenous populations; the Companies' ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and government practices, including environmental, export and import laws and regulations; legal restrictions relating to mining; risks relating to expropriation, increased competition in the mining industry; and those factors identified in the Companies’ respective management information circulars and Annual Information Form for 2018, which are available on SEDAR at www.sedar.com. Forward-looking statements and information are designed to help readers understand management's views as of that time with respect to future events and speak only as of the date they are made. Except as required by applicable law, the Companies assume no obligation and do not intend to update or to publicly announce the results of any change to any forward-looking statement or information contained or incorporated by reference to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements and information. If either of the Companies updates any one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements. All forward- looking statements and information contained in this presentation are qualified in their entirety by this cautionary statement. Technical Information. James (Jim) Currie, P.Eng, Equinox Gold’s COO, and Scott Heffernan, MSc, P.Geo, Equinox Gold’s EVP Exploration, are the Qualified Persons under NI 43-101 for Equinox Gold and has reviewed, approved and verified the technical content of for the Equinox Gold properties as discussed in this presentation. All technical information related to Equinox Gold properties is available at www.equinoxgold.com and www.SEDAR.com. Adriaan (Attie) Roux, Pr.Sci.Nat., Leagold’s COO, and Doug Reddy, P.Geo, Leagold’s SVP Technical Services, are the Qualified Persons under NI 43-101 for Leagold and have reviewed, approved and verified the technical content of the Leagold properties as discussed in this presentation. All technical information related to Leagold properties is available at www.leagold.com and www.SEDAR.com. Cautionary Note to U.S. Investors Concerning Estimates of Reserves and Resources. These estimates have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. The terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in NI 43-101 and recognized by Canadian securities laws but are not defined terms under the U.S. Securities and Exchange Commission ("SEC") Guide 7 ("SEC Guide 7") or recognized under U.S. securities laws. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be upgraded to mineral reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever by upgraded to a higher category. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies. U.S. investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. In addition, the definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” under CIM standards differ in certain respects from the standards of the SEC. Accordingly, these mineral reserve and resource estimates and related information may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder, including SEC Guide 7. Numbers may not add due to rounding. All dollar amounts in USD unless otherwise noted.
- 3. 3 At-market Merger Createsa Premier Gold Producer 1. M&I Resources shown inclusive of reserves. Fully Funded Growth Clear Path To Market Re-rate Top 20 Primary Gold Producer • Organic growth to 1 Moz annual gold production in near term, based on analyst consensus estimates for combined company operations • 6 producing mines, 2 development projects and 2 mine expansion projects • 12.7 Moz P&P Reserves, 23.6 Moz M&I Resources1 • All assets in Americas: USA, Mexico, Brazil • Strong internal cash flows and $670 M financing package - New $40 M at-market equity investment from Ross Beaty - New $130 M convertible note from Mubadala - New $500 M underwritten bank financing • Net debt < $300 M • Dual listing in US and Canada with potential for near-term index inclusion • Increased liquidity and size will attract new institutional investors • Significant scale, diversification, synergies and growth profile
- 4. 4 Creating a PremierAmericas Gold Producer ~700 Koz GOLD PRODUCTION IN 20202 Gold Producing Assets Gold Development Site 4 GROWTH PROJECTS 6 PRODUCING MINES 12.7 Moz P&P GOLD RESERVES 23.6 Moz M&I GOLD RESOURCES1 1. M&I Resources are inclusive of reserves. 2. Analyst consensus estimates for combined company operations. 1 Moz PATH TO GOLD PRODUCTION DURING 20212 Los Filos / Expansion Aurizona RDM Santa Luz Pilar Fazenda Castle Mountain Phase 1 & 2 Mesquite $300 M CASH FLOW FROM OPERATIONS IN 20202 $350 M EBITDA IN 20202
- 5. 5 Peer-leading Gold Reserves,Diversified Asset Base Castle Mountain Mesquite Aurizona RDM Fazenda Pilar Santa Luz Los Filos One third of 12.7 Moz P&P Reserves and 23.6 Moz M&I Resources1 is in each of the USA, Mexico and Brazil 1. M&I Resources are inclusive of Reserves. USA 4.6 Moz Reserves Mexico 4.5 Moz Reserves Brazil 3.6 Moz Reserves Los Filos / Expansion Aurizona RDM Santa Luz Pilar Fazenda Castle Mountain Phase 1 & 2 Mesquite Gold Producing Assets Gold Development Site
- 6. 6 Growing Production inMining Friendly Jurisdictions Source: Street research, Wood Mackenzie. 1. Analyst consensus estimates for combined company production. Growth projects take annualized gold production to 1 Moz by end of 20211 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Current Operations Plus In-Progress Growth Projects (Los Filos Expansion and Castle Mountain Phase 1) Plus Future Growth Projects (Santa Luz and Castle Mountain Phase 2) GoldProduction(oz) Los Filos - Current Pilar Fazenda RDM Aurizona Mesquite Castle Mtn - Phase 1 Los Filos Expansion Castle Mtn - Phase 2 Santa Luz Current Operations 2019 Production + In-progress Growth Projects Los Filos Expansion Castle Mountain Phase 1 + Future Growth Projects Santa Luz Restart Castle Mountain Phase 2
- 7. 7 (25%) -- 25% NewEquinox Pretium Evolution Northern Star Saracen Endeavour Mining OceanaGold Eldorado Sibanye-Stillwater SSR Mining Centerra Regis Alamos IAMGOLD Kirkland Lake Yamana B2Gold Torex St Barbara Alacer 0 10 20 30 Sibanye-Stillwater Kirkland Lake IAMGOLD Eldorado Centerra New Equinox Yamana Alamos Evolution Endeavour Mining Northern Star Saracen Pretium St Barbara B2Gold OceanaGold Regis SSR Mining Alacer Torex 0 600 1,200 1,800 Kirkland Lake Northern Star B2Gold Sibanye-Stillwater Evolution Yamana Centerra New Equinox IAMGOLD Endeavour Mining Saracen Alamos OceanaGold Pretium Eldorado Torex Regis SSR Mining St Barbara Alacer Well Positioned Within New Peer Group Source: Company filings, street research, Wood Mackenzie, analyst consensus. 2019E-2021E Growth (%) P&P Au Reserves (Moz)2021E Au Production (koz) 2021E gold production at higher end of peer set Peer leading gold production growth Significant reserve base is double the peer median Equinox Gold Equinox Gold Equinox Gold
- 8. 8 Fully Funded forGrowth Strong balance sheet and cash flow funds growth 1. Excludes Transaction costs. 2. Preliminary December 31, 2019 cash balances as reported on January 8, 2020. 3. Existing $149.6M in convertible notes are in the money and treated as equity. 4. At-market pricing pre merger announcement. Cash ~$300M1 Cash on hand2 $130M Mubadala investment $130M Drawn Debt $550M Term loan $100M New Mubadala convertible note3 $130M Corporate revolver $320M drawn $80M available • Ross Beaty to invest US$40M at C$8.15 per share4 • Mubadala to subscribe for US$130M in 5-year, 4.75% convertible debentures convertible to Equinox Gold shares at US$7.80 per share • Fully underwritten bank facility comprising: - US$400M 4-year revolver - US$100M 5-year term loan Financing Package $670M Ross Beaty equity $40M Low net debt of < $300M3
- 9. 9 30.6% 11.3% 1.8% 1.0% 1.0% 0.9% 0.7% 0.7% 0.6% 0.5% 0.4% 0.4% 0.4% 0.4% 0.3% 0.3% 0.2% 0.2% 0.1% 0.0% Endeavour Mining Equinox B2Gold Alacer Evolution Northern Star IAMGOLD OceanaGold Torex Eldorado Alamos Pretium Yamana Saracen Sibanye-Stillwater StBarbara SSR Mining Centerra Regis Kirkland Lake Peer-leading Insider Ownership 9% 2% 14% 19% 20% 36% Ross Beaty Other Insiders Corporate Institutional High Net Worth Retail/other Pro Forma Shareholders * Mubadala Investment Company would hold ~16% if it fully converted both of its convertible notes. NEW EQX Insiders have personally invested to hold ~11% of the Company Insider Ownership1 Equinox Gold 1. Executives and Directors who have personally invested to hold shares in the company. Does not include corporate shareholders or seed shares granted to insiders. 2. Source: Company filings, FactSet, street research, Wood Mackenzie.
- 10. 10 EQX $0.9 B LMC $0.8 B $0.6B Merger bump Market Cap C$ EQX $2.5 M LMC $1.8 M $5.7 M Merger bump Daily Volume US$ Increased Scale and Liquidity 1. At February 12, 2020. 2. At September 30, 2019. 3. Includes Equinox Gold convertible notes with a U$5.25 conversion rate. 4. At December 31, 2019 using preliminary year-end unaudited numbers as disclosed on January 8, 2020, excluding transaction costs. Potential for multiple index inclusions in H1-2020 30% share price appreciation since December 16 merger announcement C$2.3 B Proforma1 +US$10 M Since Dec 16 ~US$300 M Cash on hand3 214 M Shares outstanding2 310 M Fully diluted3
- 11. 11 Median: 1.1x Significant Re-rateOpportunity Potential immediate re-rate with enhanced production profile and capital markets scale Source: Company filings, FactSet, street research, Wood Mackenzie.
- 12. 12 Committed to ContinuousImprovement and Responsible Mining Environment Social Governance Equinox Gold is a signatory to the International Cyanide Management Code; Mesquite and Los Filos are certified Aurizona received Excellence in Mining & Metallurgy Industry award in 2018 and 2019 Insiders have personally invested to own ~11% of combined company shares Independent oversight of tailings management at all sites Majority of workforce at all sites from local regions At-market merger aligned with prevailing market sentiment Site environmental management systems based on ISO:4001 Combined TRIFR1 for 2019 of 1.07 per 200,000 hours worked Performance-based incentive compensation program Implementing SASB/TCFD based ESG reporting in 2020 Programs to increase skills capacity in local communities Strong corporate governance using industry best practices 1. Combined Total Recordable Injury Frequency Rate for both Equinox Gold and Leagold sites during 2019.
- 13. 13 Operating open-pit andunderground mine complex in Mexico 200,000 oz annual production increasing to ~ 400,000 oz Los Filos Mine Complex 13
- 14. 14 Los Filos: ExpansionProject Underway • Los Filos open-pit mine • Los Filos underground mine • Bermejal open-pit mine • Heap leach processing Current Expansion Up to 400,000 oz/yr production 3.2 Moz LOM production1 • Additional mines and infrastructure: - Bermejal underground mine - Guadalupe open-pit - 4,000 t/d CIL plant - Enlarged Los Filos open-pit 1. Refer to the Leagold news release dated May 1, 2019, available on Leagold’s website at www.leagold.com. ~200,000 oz 2019 production
- 15. 15 Los Filos: ExpansionTargeted for Completion End 2021 LOS FILOS OPEN PIT 7 years 26.9 Mt at 0.65 g/t; 0.558 Moz1 BERMEJAL OPEN PIT 5 years 34.6 Mt at 0.57 g/t; 0.631 Moz1 Crusher Uncrushed Leach Pad #1 Crush Leach Pad #2 Offices & Workshops Sur Underground MineNorte Underground Mine ADR Plant LOS FILOS UNDERGROUND 3 years 1.9 Mt at 5.50 g/t; 0.338 Moz1 GUADALUPE OPEN PIT 9 years 34.5 Mt at 1.37 g/t; 1.520 Moz1 BERMEJAL UNDERGROUND 9 years 6.4 Mt at 6.57 g/t; 1.348 Moz1 1. Proven and Probable Reserves based on an effective date of October 31, 2018. See Technical Disclosure. 10 Year Mine life 4.5 Moz P&P Reserves $213 M Capex
- 16. 16 Aurizona Gold Mine 16 Operatingopen-pit mine in Brazil ~130,000 oz annual production with expansion potential
- 17. 17 Aurizona: Potential forExpansion and Mine Life Extension • 6.5-year mine life with existing 1 Moz P&P Reserves @ 1.52 g/t Au • 1.7 Moz M&I Resources @ 1.58 g/t Au1 • Significant underground resource Current ~130,000 oz Avg. annual production Expansion Upside Potential Mine life, production • Near-mine extension to west of reserves • Higher-grade discoveries to east • Potential for underground mine 1. M&I Resources are inclusive of reserves.
- 18. 18 1. Exploration compositesare calculated on uncapped assay values. The samples are from the saprolite zone where surficial processes can significantly enrich gold content. Applying the 40 g/t Au cap that was used for saprolitic material in the Piaba resource estimate would change the interval to 5.29 g/t Au over 21.0 m. High-grade near-surface discoveries east of Piaba: • 1.18 g/t Au/ 60 m • 1.89 g/t Au/ 13 m • 3.28 g/t Au/ 9 m • 84.3 g/t Au/ 21 m1 Tatajuba strike similar to Piaba, grades similar or higher: • 13.74 g/t Au/ 35 m • 2.71 g/t Au/ 56 m • 1.42 g/t Au/ 34 m PIABA OPEN PIT TATAJUBA TARGET PIABA NORTH TREND GENIPAPO MESTRE CHICO MICOTE 0 1 km Near-mine targets within ~1,400 km2 land package PIABA EXTENSION MINING PERMIT EXPLORATION PERMIT Aurizona: Mine Life Extension Along Strike
- 19. 19 Past-producing open-pit minein California Construction underway, first gold pour Q3-2020 Castle Mountain Gold Mine 19
- 20. 20 Castle Mountain: Two-phaseExpansion Project 1. As per the July 2018 pre-feasibility study. Phase 2 200,000 oz / year ~$175 M Capex + Fleet Phase 1 45,000 oz / year $58 M Capex 3.6 Moz Gold Reserves 16 Year Initial Mine Life $763/oz Avg. LOM AISC1 Long-life Low-cost Mine SYNERGIES With Mesquite Mine
- 21. 21 Castle Mountain: Phase1 Construction Progress Leach pad liner installation underway Haul road Access road Historical heap leach pad graded and prepped for liner Water tank CIL TanksPumps Event PondLeach pad will be double lined with a drainage layer between Drainage layer Castle Mountain: Jan 31, 2020
- 22. 22 Santa Luz Project Past-producingopen-pit mine with restart strategy Potential for ~100,000 oz annual production 22
- 23. 23 Santa Luz: Re-startPlan1 1. As per Leagold’s October 2018 feasibility study. LOM Larger Open Pit Additional potential underground mine Phase 1 Lower Strip ~700,000 oz produced 1.3 Moz Gold Reserves ~100,000 oz Avg. Annual Production $856/oz Avg. LOM AISC 11-yr Mine Life $82 M Capex KEY PERMITS In Place for Construction and Operations
- 24. 24 Other Assets inthe Americas RDM (Brazil) • Open-pit mine with 3.0 Mtpa CIL plant • M&I Resources of 1.3 Moz1, including P&P Reserves of 0.8 Moz1 • Produced 62,634 oz gold in 2019 Mesquite (California) • Open-pit heap leach mine in operation since 1985 • M&I Resources of 2.9 Moz1, including P&P Reserves of 1.0 Moz1 • Produced 125,700 oz gold in 2019 Fazenda (Brazil) • Primarily underground mining with 1.3 Mtpa CIL plant • M&I Resources of 558 Koz1, including P&P Reserves of 319 Koz1 • Produced 73,228 oz gold in 2019 Pilar (Brazil) • Underground mine with 1.0 Mtpa CIP plant • M&I Resources of 1,191 Koz1, including P&P Reserves of 266 Koz1 • Produced 37,739 oz gold in 2019 1. Refer to Appendix for details.
- 25. 25 2020 Value Creation Createpremier Americas gold producer Complete at-market merger with Leagold Mining Achieve corporate and site integration benefits Operations Accelerate Los Filos expansion Complete Castle Mountain Phase 1 for 45,000 oz/yr gold1 Review Castle Mountain Phase 2 for 200,000 oz/yr gold1 Expedite Santa Luz restart Optimize Mesquite operations Complete PEA for Aurizona underground mine Exploration Extend mine life at Aurizona, Fazenda, Los Filos and Mesquite Corporate Qualify for multiple index inclusions in H1-2020 Formalize external ESG reporting 1. Average annual run rate as estimated in July 2018 prefeasibility study. Fully funded to achieve development objectives
- 26.
- 27. 27 Transaction Summary Transaction Structure • EquinoxGold and Leagold to merge via a Plan of Arrangement • Unanimously recommended by the Board of Directors of both Equinox Gold and Leagold • Voting support agreements representing 21% of Equinox Gold shares and 42% of Leagold shares All Share Consideration • Leagold shareholders receive 0.331 of an Equinox Gold share for each Leagold share held • At-market merger: C$2.70 per Leagold share using December 13, 2019 TSX closing prices • Pro forma ownership: 55% Equinox Gold and 45% Leagold on an issued shares basis Concurrent Financing • Ross Beaty to invest US$40 M in at-market private placement at C$8.15 per share • Mubadala Investment Company to subscribe for US$130 M in a 5-year, 4.75% convertible debenture with a conversion price of US$7.80 per share • US$500 M underwritten bank financing: US$100 M term loan and US$400 M revolver Leadership & Governance • Ross Beaty as Chairman and Neil Woodyer as CEO • Continuing company named Equinox Gold trading as EQX on both TSX and NYSE American • Head office in Vancouver, Canada • Board with 8 directors: 4 appointed by Equinox Gold and 4 appointed by Leagold Key Approvals & Conditions • Approval from the shareholders of Equinox Gold and securityholders of Leagold • Customary regulatory and court approvals • COFECE (Mexican Federal Anti-Trust Commission) approval
- 28. 28 Board of Directors PeterMarrone, Director • Founder, Chairman and CEO of Yamana Gold • 30 years of mining, business, and capital markets experience • Prior to Yamana, was head of investment banking at a major Canadian investment bank • Also practiced law with a strong focus on corporate law, securities law and international transactions General Wesley K. Clark , Director • Retired 4-star U.S. Army General • Held several Commands including Supreme Allied Commander Europe of NATO and Commander, U.S. Southern Command responsible for Latin America and the Caribbean • Currently heads a strategic advisory and consulting firm Gordon Campbell, Director • Former Canadian High Commissioner to the United Kingdom from 2011 to 2016, 34th Premier of British Columbia from 2001 to 2011 and leader of the Official Opposition in British Columbia from 1994 to 2001 • From 1986 to 1993, he was Mayor of Vancouver, BC Neil Woodyer, Non-independent Director, CEO • Founder of Leagold in August 2016 • Founder and former CEO of Endeavour Mining until June 2016 • Previously Managing Director of Endeavour Financial, a merchant bank focused on the natural resource sector founded in 1988 Ross Beaty, Chairman, Non-independent Director • Founder and Chairman of Pan American Silver • Geologist and resource company entrepreneur with more than 40 years of industry experience • Has successfully founded and divested a number of public mineral resource and clean energy companies Len Boggio, Director • Formerly a partner of PricewaterhouseCoopers where he served for more than 20 years until his retirement in 2012 • Fellow of the Chartered Professional Accountants of Canada • Served as president of the BC Institute of Chartered Accountants and chairman of the Canadian Institute of Chartered Accountants Tim Breen, Director • Long-standing member of Mubadala Investment Company’s senior leadership team • Currently serving as Executive Director in Mubadala’s Technology, Manufacturing and Mining platform Marshall Koval, Director • Geologist with 38 years of corporate management, M&A, finance, mineral exploration, mine development and operations experience • Has held CEO and senior management positions with numerous mineral resource companies
- 29. 29 Management Christian Milau, EVPCorporate • CEO of Equinox Gold since August 2016, leading the team through two mergers, an asset acquisition and this potential Transaction • CEO of True Gold until it was acquired by Endeavour Mining in April 2016 • Prior to True Gold, held senior positions with Endeavour Mining, New Gold, BNP Paribas and Deloitte Neil Woodyer, CEO • Founder of Leagold in August 2016 • Founder and former CEO of Endeavour Mining until June 2016 • Previously Managing Director of Endeavour Financial, a merchant bank focused on the natural resource sector founded in 1988 Peter Hardie, CFO • CFO of Equinox Gold since August 2016 • CFO of True Gold until it was acquired by Endeavour Mining in April 2016 • Prior to True Gold, spent 10 years at Nevsun Resources including as VP Finance and CFO • Chartered Professional Accountant Attie Roux, COO • Metallurgical Engineer and Registered Professional with the South African Council for Natural Scientific Professions • Former COO of Endeavour Mining with over 40 years of operational, technical and management experience in the mining industry, including 30 years with AngloGold Ashanti Doug Bowlby, EVP Corporate Development • CFA with +20 years of experience in finance, M&A, and debt and equity capital markets financings • Former EVP Corporate Development of Endeavour Mining • Former Managing Director, Research and Analysis of Endeavour Financial Doug Reddy, EVP Technical Services • P.Eng. with +30 years of experience in project evaluations, exploration, mine geology, resource development and consulting in base and precious metals • Former executive at Endeavour Mining focused on technical services, business development and investor relations
- 30. 30 Proven and ProbableMineral Reserves Mine/Project Proven Probable Proven and Probable Tonnes (kt) Grade (g/t) Contained gold (koz) Tonnes (kt) Grade (g/t) Contained gold (koz) Tonnes (kt) Grade (g/t) Contained gold (koz) Aurizona 8,438 1.44 392 11,398 1.58 579 19,836 1.52 971 Castle Mountain 136,611 0.58 2,559 60,977 0.51 1,004 197,589 0.56 3,563 Mesquite 1,167 0.62 23 53,468 0.57 981 54,635 0.57 1,004 Los Filos 26,168 0.91 768 78,052 1.44 3,626 104,220 1.31 4,395 Leach pad inventory 114 114 RDM 5,647 0.73 133 19,079 1.08 656 24,726 0.99 789 Fazenda 2,632 1.77 150 2,756 1.91 169 5,387 1.84 319 Pilar 961 1.51 47 6,044 1.13 219 7,005 1.18 266 Santa Luz 25,000 1.43 1,153 3,200 1.03 106 28,200 1.39 1,259 Total Proven and Probable 5,225 7,454 12,680
- 31. 31 Measured and IndicatedMineral Resources Mine Measured Indicated Measured and Indicated Tonnes (kt) Grade (g/t) Contained gold (koz) Tonnes (kt) Grade (g/t) Contained gold (koz) Tonnes (kt) Grade (g/t) Contained gold (koz) Aurizona 8,957 1.43 414 23,670 1.64 1,249 32,627 1.58 1,663 Castle Mountain 160,711 0.58 2,989 81,377 0.51 1,344 242,089 0.56 4,333 Mesquite 6,567 0.46 96 175,968 0.49 2,793 182,535 0.49 2,902 Los Filos 114,631 0.77 2,851 211,678 1.02 6,922 326,309 0.93 9,773 RDM 3,195 0.77 79 36,107 1.02 1,181 39,303 1.00 1,259 Fazenda 4,870 2.17 339 2,670 2.55 219 7,540 2.30 558 Pilar 2,389 3.50 269 13,479 2.13 922 15,868 2.33 1,191 Santa Luz 31,200 1.36 1,364 9,700 1.96 612 40,900 1.50 1,976 Total Measured and Indicated 332,520 8,401 554,649 15,242 887,171 23,655 Note: Resources shown inclusive of reserves.
- 32. 32 Inferred Resources Mine Tonnes(kt) Grade (g/t) Contained Gold (koz) Aurizona 16,960 1.98 1,080 Castle Mountain 171,395 0.40 2,210 Mesquite 15,000 0.38 184 Los Filos 98,204 0.83 2,633 RDM 8,305 1.50 401 Fazenda 6,040 2.45 476 Pilar 20,399 3.21 2,108 Santa Luz 7,700 2.02 501 Total Inferred 344,003 9,593
- 33. 33 Technical Disclosure Notes toMineral Reserves and Mineral Resources (Leagold) • CIM (2014) Definition Standards were followed for Mineral Reserves. • Mineral Reserves used a gold price of US$1,200/oz; exchange rate of R$3.70:US$1 or Mex$19:US$1. • Mineral Resources are inclusive of Mineral Reserves. • Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. • Mineral Resources used a gold price of US$1,500/oz and exchange rate of R$3.70:US$1 for Brazil Mines; gold price of US$1,400/oz, silver price of US$4.39/oz and exchange rate of Mex$19:US$1 for Los Filos. • Tonnage and grade measurements are in metric units. Contained gold is reported as troy ounces. • Summation errors may be present due to rounding. • Mineral resources do not include factors such as mining dilution or mining recovery. • Details of cut-off grades, bulk densities, mining widths, dilution, mining factors and process recovery assumptions applied to Mineral Reserves and Mineral Resources are provided in the Technical Reports for each mine/project. • "Independent Technical Report for the Los Filos Mine Complex, Mexico" by SRK Consulting (Canada) Inc., and dated March 11, 2019 with an effective date of October 31, 2018. Dr. G. Arseneau, P.Geo., E. Olin, RM-SME, T. Olson, FAusIMM, N. Winkelmann, FAusIMM, N. Lincoln, P.Eng., M. Rykaart, P.Eng., D. Nicholas, P.E. are the Qualified Persons that prepared or supervised preparation of the information contained in the Technical Report. • “Technical Report on the Riacho dos Machados Gold Mine, Minas Gerais, Brazil” by Roscoe Postle Associates Inc., and dated November 20, 2018 with an effective date of May 31, 2018. H.M. Miranda, MBA, ChMc (RM), M.B. Mathisen, C.P.G. and K.A. Altman, Ph.D., P.E., are the Qualified Persons that prepared or supervised preparation of the information contained in the Technical Report. • “Technical Report on the Fazenda Brasileiro Mine, Bahia State, Brazil” by Roscoe Postle Associates Inc., and dated November 26, 2018 with an effective date as of May 31, 2018. Mark B. Mathisen, C.P.G., H.M. Miranda, MBA, ChMC (RM), R.L. Michaud, P.Eng. and A.P. Hampton, P.Eng. are the Qualified Persons that prepared or supervised preparation of the information in the Technical Report. • “Technical Report on the Pilar Operations, Goiás State, Brazil” by Roscoe Postle Associates Inc., and dated December 20, 2018 with an effective date of May 31, 2018. M.B. Mathisen, C.P.G., P.A. Geusebroek, P.Geo., H.M. Miranda, MBA, ChMC (RM), R.L. Michaud, P.Eng., and A.P. Hampton, P.Eng. are the Qualified Persons that prepared or supervised preparation of the information contained in the Technical Report. • “Technical Report on the Santa Luz Project, Bahia State, Brazil” by Roscoe Postle Associates Inc., and dated November 14, 2018 with an effective date of October 22, 2018. M.B. Mathisen, C.P.G., H.M. Miranda, MBA, ChMC (RM), R.L. Michaud, P.Eng. and R. Addison, P.E., are the Qualified Persons who prepared or supervised preparation of the information contained in the Technical Report. • Adriaan (Attie) Roux, Pr.Sci.Nat., Leagold’s COO, and Doug Reddy, P.Geo, Leagold’s Senior Vice President Technical Services, are the Qualified Persons under NI 43-101 for Leagold and have reviewed, approved and verified the technical content of this presentation as it relates to Leagold’s properties. Notes to Mineral Reserves and Mineral Resources (Equinox Gold) • The Mesquite reserve and resource estimates were disclosed in the technical report entitled “Technical Report on the Mesquite Gold Mine, Imperial County, California, U.S.A.” prepared by AGP with an effective date of December 31, 2018, which is available for download on SEDAR at www.sedar.com. The Mesquite resource estimate was prepared by Robert Sim P.Geo, SIM Geological Inc. and Bruce Davis, FAusIMM, BD Resource Consulting, Inc. The Mesquite reserve estimate was based on the Mesquite mineral resource estimate prepared by SIM Geological Inc. The mineral reserve calculation was completed under the supervision of Gordon Zurowski, P.Eng of AGP, who is a Qualified Person as defined under NI 43-101.The estimated mineral resources represent the material located between the surveyed topographic surface at December 31, 2018 and the ultimate resource limiting pit shell generated at year-end 2018, excluding any surface stockpiles. Cut-off grade for oxide material is 0.134 g/t Au and 0.288 g/t Au for transition and non-oxide material. The reserves for Mesquite are based on the conversion of the Measured and Indicated resources within the current mine plan. Measured Resources are converted to Proven Reserves and Indicated Resources are converted directly to Probable Reserves. Mineral reserves are stated within the final design pit based on a $1,250/oz gold price. The cutoff grade for oxide material is 0.15 g/t and 0.31 g/t for transition and non-oxide material. The mining cost averaged $1.45/t mined, processing costs are $1.81/t ore and G&A was $0.75/t ore placed. The ore recoveries were 75% for oxide, and 35% for transition and non-oxide material. • The Aurizona reserve estimate was disclosed in the “Feasibility Study on the Aurizona Gold Mine Project” prepared by Lycopodium Minerals Canada Ltd. with an effective date of July 10, 2017, which is available for download on SEDAR at www.sedar.com. The Mineral Reserve estimate has an effective date of May 29, 2017 and is based on the Mineral Resource estimate dated January 5, 2017 and prepared by SRK Consulting (Canada) Inc. The Mineral reserve calculation was completed under the supervision of Gordon Zurowski, P.Eng of AGP, who is a Qualified Person as defined under NI 43-101. Mineral Reserves are stated within the final design pit based on a $1,056 per ounce gold price pit shell with a $1,200 per ounce gold price for revenue. The cutoff grade was 0.60 g/t Au for the Piaba pit area and 0.41 g/t Au for the Boa Esperança area. The mining cost averaged $2.32/tonne mined, processing averages $11.30/tonne milled and G&A was $2.88/tonne milled. The process recovery averaged 90.3%. The exchange rate assumption applied was R$3.30 equal to US$1.00. The 2018 Piaba open-pit, Piaba underground and Boa Esperança open-pit resource estimates, with an effective date of October 22, 2018, were prepared by Trevor Rabb, P.Geo (EGBC #39599), B.Sc., who is a “qualified person” within the meaning of NI 43-101. Mr. Rabb is an employee of Equity Exploration Consultants Ltd. and is considered to be “independent” for the purposes of Section 1.5 of NI 43-101. Numbers may not sum due to rounding. • The Castle Mountain Mineral Reserve and Mineral Resource Estimates were disclosed in the "NI 43- 101 Technical Report on the Preliminary Feasibility Study for the Castle Mountain Project" prepared by Kappes, Cassiday and Associates with an effective date of July 16, 2018, which is available for download on SEDAR at www.sedar.com. The Mineral Reserve estimate with an effective date of June 29, 2018 is based on the Mineral Resource estimate with an effective date of March 29, 2018 that was prepared by Don Tschabrun, SME RM of Mine Technical Services. The Mineral Reserve was estimated by Global Resource Engineering, LLC with supervision by Terre Lane, MMSA, SME RM. Mineral Reserves are estimated within the final designed pit which is based on the $850/oz pit shell with a gold price of $1,250/oz. The minimum cut-off grade was 0.14 g/t gold and 0.17 g/t gold for Phases 1 and 2, respectively. Average life of mine costs are $1.39/tonne mining, $2.11/tonne processing, and $0.80/tonne processed G&A. The average process recovery was 72.4% for ROM and 94% for Mill/CIL. The Mineral Resource is based on a gold cut-off grade of 0.17 g/t. The Mineral Resource is contained within an LG shell limit using a $1,400 gold price as well as cost and recovery parameters presented in the technical report. Numbers may not sum due to rounding. • James (Jim) Currie, P.Eng, Equinox Gold’s COO, and Scott Heffernan, MSc, P.Geo, Equinox Gold’s EVP Exploration, are the Qualified Persons under NI 43-101 for Equinox Gold and have reviewed, approved and verified the technical content of this presentation as it relates to Equinox Gold’s properties.
- 34. Merger of EqualsCreates a Premier Americas Gold Producer TSX: EQX, NYSE-A: EQX Christian Milau, CEO Rhylin Bailie, VP Investor Relations Tel: +1 604-558-0560 Email: [email protected] www.equinoxgold.com TSX: LMC, OTC: LMCNF Neil Woodyer, CEO Meghan Brown, VP Investor Relations Tel: +1 604-398-4505 Email: [email protected] www.leagold.com