Primero Q3 2014 Presentation

Third Quarter 2014 Results
November 6th, 2014

TSX P I NYSE PPP I 2
Thispresentationmaycontain“forward-looking”statementswithinthemeaningofCanadiansecuritieslegislationandtheUnitedStatesPrivateSecuritiesLitigationReformActof1995.Forward-lookingstatementsrelatetofutureeventsortheanticipatedperformanceoftheCompanyandreflectmanagement’sexpectationsorbeliefsregardingsuchfutureeventsandanticipatedperformance.Incertaincases, forward-lookingstatementscanbeidentifiedbytheuseofwordssuchas“plans”,“expects”,“isexpected”,“budget”,“scheduled”, ”estimates”,”forecasts”,”intends”,”anticipates”or“believes”,orvariationsofsuchwordsandphrasesorstatementsthatcertainactions, eventsorresults“may”,”could”,“would”,”might”,or“willbetaken”,“occur”or“beachieved”,orthenegativeofthesewordsorcomparableterminology.Bytheirverynatureforward-lookingstatementsinvolveknownandunknownrisks,uncertaintiesandotherfactorswhichmaycausetheactualperformanceoftheCompanytobemateriallydifferentfromanyanticipatedperformanceexpressedorimpliedbytheforward-lookingstatements.SuchfactorsincludevariousrisksrelatedtotheCompany’soperations,including,withoutlimitation,fluctuationsinspotandforwardmarketsforgold,silverandothermetals,fluctuationsincurrencymarkets,changesinnationalandlocalgovernmentsinMexicoandthespeculativenatureofmineralexplorationanddevelopment,risksassociatedwithobtainingnecessaryexploitationandenvironmentallicensesandpermits,andthepresenceoflawsthatmayimposerestrictionsonmining.AcompletelistofriskfactorsaredescribedintheCompany’sannualinformationformandwillbedetailedfromtimetotimeintheCompany’scontinuousdisclosure,allofwhichare,orwillbeavailable,forreviewonSEDARatwww.sedar.com.
Thispresentationusestheterms“measuredresources”,“indicatedresources”and“inferredresources”.TheCompanyadvisesreadersthatalthoughthesetermsarerecognizedandrequiredbyCanadianregulations(underNationalInstrument43-101StandardsofDisclosureforMineralProjects(“NI43-101”),theUnitedStatesSecuritiesandExchangeCommissiondoesnotrecognizethem.Readersarecautionednottoassumethatanypartorallofthemineraldepositsinthesecategorieswilleverbeconvertedintoreserves.Inaddition,“inferredresources”haveagreatamountofuncertaintyastotheirexistence,andeconomicandlegalfeasibility.Itcannotbeassumedthatalloranypartofaninferredmineralresourcewilleverbeupgradedtoahighercategory.UnderCanadianrules,estimatesofinferredmineralresourcesmaynotformthebasisoffeasibilityorpre-feasibilitystudies,oreconomicstudies,exceptforaPreliminaryAssessmentasdefinedunderNI43-101.Investorsarecautionednottoassumethatpartorallofaninferredresourceexists,oriseconomicallyorlegallymineable.
AlthoughtheCompanyhasattemptedtoidentifyimportantfactorsthatcouldcauseactualperformancetodiffermateriallyfromthatdescribedinforward-lookingstatements,theremaybeotherfactorsthatcauseitsperformancenottobeasanticipated.TheCompanyneitherintendsnorassumesanyobligationtoupdatetheseforward-lookingstatementsorinformationtoreflectchangesinassumptionsorcircumstancesotherthanrequiredbyapplicablelaw.Therecanbenoassurancethatforward-lookingstatementswillprovetobeaccurate,asactualresultsandfutureeventscoulddiffermateriallyfromthosecurrentlyanticipated.Accordingly,readersshouldnotplaceunduerelianceonforward-lookingstatements.
Unlessotherwiseindicated,alldollarvalueshereinareinUS$.
Cautionary Statement

Management Participants
Tamara Brown | VP, Investor Relations

Former Director Investor Relations for IAMGOLD

Former partner of a Toronto based, boutique investment bank and professional engineer in mining industry
H. Maura Lendon | VP, Chief General Counsel and Corporate Secretary

Former Senior Vice President, Chief Legal Officer and Corporate Secretary of HudBayMinerals Inc.; Chief Counsel Canada, Chief Privacy Officer - Canada of AT&T
David Sandison | VP, Corporate Development

Former VP, Corporate Development of Clarity Capital ; Director, Corporate Development Xstrata Zinc Canada ; Director Business Development, Noranda/Falconbridge; Former EVP, Noranda Chile
Louis Toner | VP, Project Development & Construction

Over 30 Years of Engineering and Construction experience, formerly held Senior Project Management roles with BBA Inc. and Lafarge Canada Inc.
James Mallory | VP, Corporate Responsibility

Over 35 Years of mining experience

Former VP, Vice-President, Operations & Social Responsibility at South American Silver

13 Years of experience in Latin America
Gabriel Voicu | VP, Geology and Exploration

25 Years of mining experience, formerly held senior technical and exploration positions with Cambior and IAMGOLD
Wendy Kaufman| Chief Financial Officer

20 Years of experience

Appointed CFO in September 2014

Former VP, Finance and Treasure of InmetMining Corporation
Joseph Conway | President & CEO


Appointed President and CEO in June 2010

Former CEO, President & Director of IAMGOLD and RepadreCapital

Q3 2014 Highlights
o
Production and costs in-line with guidance
o
San Dimas mine production was strong, with heavy rainfall in July impacting mill throughput slightly
o
Black Fox showing improvement with 30% higher production
o
Strong third quarter operating cash flow before changes in working capital of $21.7 million ($0.14 per share)
o
Earnings impacted by one-time items including impairment associated with Brigusacquisition
o
Announced San Dimas expansion to 3,000 TPD
o
Appointed Wendy Kaufman as Chief Financial Officer

$67M
STRONG Liquidity
Financial Position
Source: 2014E-2016E Operating Cash Flow -Thomson Reuters consensus CFPS multiplied by current 160 million shares outstanding.
$78M7
PRUDENT Debt Level
September 30, 2014
$72
$78
$120
$160
$0
$50
$100
$150
$200
2013
2014E
2015E
2016E
Consensus Estimated Operating Cash Flow ($ millions)
Exchanges
TSX:P
NYSE:PPP
Balance Sheet (September 30, 2014)
Cash
Line of Credit8
TotalLiquidity
Convertible Debenture(6.5%, due March 2016, $14 conversion)
Line of Credit Draw Down8(Due May 2017)
Total Debt7
$22 million
$45 million
~$67 million
$48 million
$30 million
$78 million
Capital Structure
CommonSharesOutstanding 9
Fully Diluted 10
Market Cap. At Oct. 30, 2014
160 million
190 million
C$650 million

Combined Operating Results
*See final slide for footnotes.
Q3 2014
Q3 2013
Gold equivalent production1
(gold equivalent ounces)
59,673
41,998
Gold production
(ounces)
51,464
31,791
Silver production2
(million ounces)
1.41
1.62
All-in Sustaining Costs3($ per gold ounce)
$1,154
$974
Cash cost3
($ per AuEqounce)
$689
$516
Cash cost3–by-product
($ per gold ounce)
$596
$252
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Q3 2013
Q3 2014
+42%
Production
(AuEqounces)

San Dimas Operating Results
Q3 2014
Q3 2013
Mill Throughput4
(tonnes per day)
2,388
2,172
Gold equivalent production1
(gold equivalent ounces)
37,385
41,998
Gold production
(ounces)
29,176
31,791
Silver production2
(million ounces)
1.41
1.62
Gold grade
(grams per tonne)
4.34
5.08
Silver grade
(grams per tonne)
216
265
$919
$751
Cash cost3
($ per AuEqounce)
$690
$516
Cash cost3–by-product
($ per gold ounce)
$526
$252
10,000
30,000
50,000
70,000
90,000
110,000
130,000
YTD 2013
YTD 2014
YTD San Dimas Production
(AuEqounces)
+10%

Black Fox Operating Results
Q3 2014
Q3 2013*
Mill Throughput4
(tonnes per day)
2,425
2,256
Gold Production
(gold ounces)
22,288
27,174
Gold Grade
(grams per tonne)
3.24
4.34
$1,202
$905
Cash cost3
($ per gold ounce)
$688
$615
Black Fox Production
(Au ounces)
-
5,000
10,000
15,000
20,000
25,000
Q1 2014
Q2 2014
Q3 2014
+30%
+29%
*Prior to Primero’s acquisition

Financial Results
(US$ thousands, except per share amounts)
Q3 2014
Q3 2013
Revenues
75,503
53,793
Earnings from Mine Operations
6,184
22,960
Net income (loss)
(105,904)
10,080
EPS ($ per share)
(0.66)
0.09
Adjusted net income5
259
10,959
Adjusted EPS5($ per share)
0.00
0.09
Operating cash flows6
before changes in working capital
21,704
20,926
CFPS6($ per share)
0.14
0.18
+40%
See final slide for footnotes.
-
10
20
30
40
50
60
70
80
Q3 2013
Q3 2014
Revenues
($millions)

* Includes Cerro del Gallo. See final slide for footnotes.
Strong Outlook for 2014
BlackFox
San Dimas
Outlook 2014
Gold equivalent production1(gold equivalent ounces)
65,000-75,000
155,000-165,000
220,000-240,000
Gold production (ounces)
65,000-75,000
120,000-130,000
185,000-205,000
Silver production2(million ounces)
-
6.1-6.3
6.1-6.3
$1,400-$1,450
$750-$800
$1,175-$1,225
Cash cost3($ per gold equivalent ounce)
$850-$900
$600-$650
$675-$725
Capital Expenditures($ millions)
$36.0
$38.3
$85.3*
Exploration($ millions)
$18.5
$15.7
$36.2*

Corporate Office
(Toronto)
Producing in America’s Top Mining Jurisdictions
#5*
Mexico
Producing Mine
Development Project
Exploration Property
71%
29%
Mexico
Canada
75%
25%
Production & Reserves by Region
2014E Production1
Gold Reserves
* Based on 2014 BehreDolbearReport “2014 Ranking of Countries for Mining Investment”.
#1*
Canada
o
Operating in two of the most attractive mining jurisdictions* globally with:
Long mining history
Government stability
Established permitting process
oLocated in areas with:
Existing infrastructure
Skilled local workforce
Suppliers
Community support
Black Fox Mine
Grey Fox Property
San Dimas Mine
Cerro Del Gallo Project
VentanasProperty
LOW RISK PROFILE

SAN DIMASA Flagship Asset
oExpansion to 2,500 TPD completed Q1 2014
oOn track to meet 2014 guidance
oExpansion to 3,000 TPD announced
oTrialing 7 day, 12-hour shifts to optimize mine throughput
oTunnels connecting Central Block to Grabenwill increase efficiency and reduce costs
Location
Mine Type
Ownership
Durango, Mexico
Underground, Gold & Silver
100% (silver stream)2
Proven & Probable Gold Reserves (koz) (4.9M tonnesat 5.5 g/t)
870
Measured & Indicated Gold Resources (koz)
(Inclusive of Reserves) (4.3M tonnesat 7.2 g/t)
997
Inferred Gold Resources (koz) (7.3M tonnesat 4.2 g/t)
998
2014E Production1(AuEqkoz)
155-165
2014E Cash Costs3($/AuEqoz)
$600-$650
540
560
580
600
620
640
660
680
700
-
50,000
100,000
150,000
200,000
2011
2012
2013
2014E
Production (AuEq oz)
Cash Costs ($/AuEq oz)
San Dimas Annual Production
57% GROWTH

-
500
1,000
1,500
2,000
2,500
3,000
3,500
Q3 2010
Q3 2012
Q3 2014
Q3 2016E
San Dimas Mill Throughput (TPD)
ConstructionMill expansion to 3,000 TPD will begin Q1 2015 and is expected to be completed by Q2 2016
Capital CostCurrently estimated at $26.4 million, including a 30% contingency After-tax IRR13is expected to be 78% with a 12 month payback period14
ProductionAn estimated increase by more than 30% over 2014 to approximately 215,000 gold equivalent ounces
Cash CostExpected to drop by ~$50 per ounce from current levels
SAN DIMASExpansion to 3,000 TPD
89% GROWTH

Proven History of Reserve & Resource Growth
SAN DIMASSignificant Exploration Upside with Low Finding Costs
o2014: $15.7 million, 80,000 metres of drilling
oVictoria vein Gold Reserves increased to 195,000 ozat 11.5 g/t
505
660
870
577
780
997
704
762
998
2011
2012
2013
P&P Reserves ( Au Koz)
M&I Resources (Au Koz)
Inferred Resources (Au Koz)
Low Finding Cost Per Ounce
247
311
$53.0
$34.7
2012
2013
P&P Reserves Discovered (Koz Au)
P&P Discovery Cost(US$/oz Au)
(M&I Resources Include Mineral Reserves)
See slides 26

BLACK FOXEstablished Jurisdiction with Proven Depth Potential
Over 200 Million Ounces of Historical Production
Note: Based on public data, average depth of listed mines is 1,633 metres.

Location
Mine Type
Ownership
Timmins, Ontario
Open-Pit & Underground, Gold
100% (8% gold stream)15
Proven & Probable Gold Reserves (koz) (3.8M tonnesat 4.3 g/t)
538
Measured & Indicated Gold Resources (koz) (Inclusive of Reserves) (4.0M tonnesat 5.1 g/t)
653
168
2014E Production (k AuEqoz)
65-75
2014E Cash Costs3($/AuEqoz)
$850-$900
-
200
400
600
800
1,000
1,200
1,400
1,600
-
5,000
10,000
15,000
20,000
25,000
30,000
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Production (oz)
Cash Costs ($/oz)
Black Fox Quarterly Production
Primero Acquisition
o
2014 total Capex and Exploration budget of $54.5 million
o
Positive exploration drilling results to date
o
Short term focus on underground development, definition and delineation drilling to increase underground throughput
o
Optimization plan in place to improve operational processes and reduce costs
BLACK FOXTurnaround Opportunity to Create Value

BLACK FOXFocused on Reserve & Resource Development
Lateral & Depth Expansion

o2014:
$10.0 million program, 76,400 metres of definition and delineation drilling
45,000 metres of exploration drilled to date
Complete Phase 3 metallurgical study
Explore between Black Fox and Grey Fox
oPositive Exploration Results to date from underground and open pit targets
Location
Ownership
4 km from Black Fox, Ontario
100%(nostream)
Measured & Indicated Gold Resources (koz) (5.3M tonnesat 3.3 g/t)
558
219
GREY FOXPromising Exploration Project
Grey Fox Exploration Results
Grey Fox

LocationGuanajuato, Mexico
Ownership100%
Proven & Probable Gold Reserves (koz) (32M tonnesat 0.69 g/t)
710
Measured & Indicated Gold Resources (koz) (Exclusive of Reserves) (47.9M tonnesat 0.60 g/t)
920
Inferred Gold Resources (koz) (20M tonnesat 0.3 g/t)
190
Estimated Production11(k AuEqoz)
~95
Estimated Cash Costs3($/AuEqoz)
~$700
Promising Exploration Results
o
2014 Program:

$11 million budget includes drilling, land purchases and metallurgical testing
o
Focused on:

Completing 2014 exploration drilling (2,500 m)

Optimizing metallurgical results

Revising feasibility study
o
Potential construction decision in Q1 2015 based on achieving a 15% IRR at $1,100/ozgold
CERRO DEL GALLOPotential Medium-Term Production
Large Gold Domain

Investment Highlights
Producing in America’s Top Mining Jurisdictions
Experienced Board and Management
Strong Financial Position
Established Growth Profile from Assets in Production
Track Record of Delivering on Stakeholder Commitments
GROWTHIN 3 YEARS12
145 %
DEBT/TOTAL CAP.7
12 %
220koz–240koz
CANADA & MEXICO
+200 years
INDUSTRY EXPERIENCE
46 %
3 YR RETURN

Primero sells 50% of annual silver production above 6.0 million ounces at spot
oRemainder sold at ~$4 per ounce under silver purchase agreement
oThreshold commences August 6 to following August 5
oExpansion anticipated to generate meaningful silver spot sales post August 6, 2014
25%
75%
Silver
Gold
SAN DIMAS
Silver Purchase Agreement
BLACK FOX
Gold Streaming Agreement
Primero sells 8% of annual gold production at Black Fox at ~$509 per ounce
o
Primero streams 6.3% from the Black Fox Extension which includes the Pike River Property
oGold is sold at $500 per ounce subject to inflationary adjustment beginning in 2013, not to exceed 2% per annum
oThe Grey Fox exploration property is not subject to any gold streaming agreements
Silver as Percentage of 2013E Revenue

SAN DIMASDistrict-Wide Exploration Potential
SW
NE
3,000 m.
2,000 m.
1,000 m.
Source: San Dimas Geology Office
WEST BLOCK
2014 Exploration
SAN ANTONIO Mined 1987-2002
CENTRAL BLOCK
Mined 2002-Current
TAYOLTITA BLOCK
Mined 1975-Current
ARANA
HANGING WALL
SINALOA GRABEN
Mined 2012-Current
2014 EXPLORATION PROGRAM
Drilling for Extensions of Known Veins
Longitudinal Cross Section
3,000 m.
2,000 m.
1,000 m.
Mineralization –Ore Bodies
Extension of the Favorable Horizon
Potential
Intrusive
Faults
LEGEND
Kilometers
0
1
2

Focus on Responsible Mining
HEALTH AND SAFETY
o
We understand that our most important assets are our people and their safety is our number one priority
o
We maintain world-class health and safety policies
ENVIRONMENT
o
San Dimas is certified as “Clean Industry” by PROFEPA (Mexican EPA)
o
We utilize sustainable green technologies where possible -Primero’sown hydroelectric dam supplies the majority of San Dimas Mine’s power
COMMUNITY
o
We treat our local communities as our partners
o
We focus on understanding our local communities goals and providing local opportunities
o
We promote local education with awards for the local technical college in San Dimas

Classification
Tonnage
(MillionTonnes)
Gold Grade (G/T)
Silver Grade (G/T)
Contained Gold
(000 Ounces)
Contained Silver
(000 Ounces)
Mineral Reserves
Proven & Probable
4.893
5.5
315
870
49,479
Mineral Resources
Measured & Indicated
4.282
7.2
419
997
57,713
Inferred
7,333
4.2
310
998
72,647
Notes to Mineral Reserve Statement:
Cutoff grade of 2.7 grams per tonne (”g/t”) gold equivalent (“AuEq”) based on total operating cost of US$104.97/t. Metal pricesassumed are gold US$1,250 per troy ounce and silver US$20 per troy ounce. Silver supply contract obligations have been referenced in determining overall vein reserve estimate viability.
Processing recovery factors for gold and silver of 97% and 94% assumed.
Exchange rate assumed is 13 pesos/US$1.00.
The Mineral Reserve estimates were prepared under the supervision of Mr. Gabriel Voicu P.Geo., Vice President, Geology and Exploration, Primero and a QP for the purposes of National Instrument 43-101 (“NI 43-101”).
Notes to Mineral Resource Statement:
Mineral Resources are total and include those resources converted to Mineral Reserves.
A 2.0g/t AuEq cutoff grade is applied and the gold equivalent is calculated at a gold price of US$1,300 per troy ounce and a silver price of US$20 per troy ounce.
A constant bulk density of 2.7 tonnes/m3has been used.
The Mineral Resource estimates were prepared by Mr. Rodney Webster MAusIMM, MAIG and Mr. J. Morton Shannon P.Geo., both of AMC Mining Consultants (Canada) Ltd. and a QP for the purposes of NI 43-101.
Additional exploration potential was estimated at 6-10 million tonnesat grade ranges of 3-5 grams per tonne of gold and 200-400 grams per tonne of silver as of December 31, 2011. It should be noted that these targets are conceptual in nature. There has been insufficient exploration to define an associated Mineral Resource and it is uncertain if further exploration will result in the target being delineated as a Mineral Resource.
SAN DIMAS
Mineral Resources and Mineral Reserves
(December 31, 2013, Mineral Resources include Mineral Reserves)

Category
M Tonnes
Au
(g/t)
Au
(M ozs)
Ag
(g/t)
Ag
(M ozs)
Cu
(%)
Cu
(M lbs)
Au Eq
(g/t)
AuEq
(M oz)
Proven
28.2
0.71
0.64
15.1
13.7
0.08
50.2
1.15
1.05
Probable
4.0
0.54
0.07
13.2
1.7
0.07
6.2
0.93
0.12
Proven & Probable
32.2
0.69
0.71
14.8
15.3
0.08
56.4
1.14
1.18
Category
M Tonnes
Au
(g/t)
Au
(M ozs)
Ag
(g/t)
Ag
(M ozs)
Cu
(%)
Cu
(M lbs)
Au Eq
(g/t)
AuEq
(M oz)
Measured
39.9
0.61
0.78
13.8
17.71
0.10
88.8
1.07
1.37
Indicated
8.0
0.55
0.14
11.0
2.83
0.08
14.6
0.92
0.24
47.9
0.60
0.92
13.3
20.55
0.1
103.4
1.06
1.64
Total Resources Within the Gold Domain2
Phase I Heap Leach In-Pit Proven and Probable Reserves3
In-Pit Resources (excluding Proven and Probable Reserves)4,5
Category
M Tonnes
Au
(g/t)
Au
(M ozs)
Ag
(g/t)
Ag
(M ozs)
Cu
(%)
Cu
(M lbs)
Au Eq
(g/t)
AuEq
(M oz)
Measured
129
0.54
2.24
12.0
49.8
0.09
256.0
0.94
3.91
Indicated
80
0.38
0.98
8.0
20.6
0.08
141.1
0.69
1.77
209
0.48
3.22
11.0
70.3
0.08
396.9
0.83
5.58
Inferred
20
0.3
0.19
7.0
4.5
0.09
39.7
0.59
0.38
1. “Technical Report First Stage Heap Leach Feasibility Study, Cerro del Gallo Gold Silver Project, Guanajuato, Mexico” June 2012 (“Feasibility Study”). Gold equivalent ounces calculated by Cerro Resources using gold, silver and copper prices of US$1,341/oz, US$25.58/oz and US$7,582/t respectively.
2. These resources are reported using internal cut-off grade of 0.2 g/tAu as per Feasibility Study, 2012 and Golder Associates Technical Report, 2008.
3. These reserves are reported using internal cut-off grades of 0.24 and 0.29 gAuEq/t for weathered and partially oxidized, respectively.
4. These resources are reported using internal cut-off grades of 0.24, 0.29, and 0.34 gAuEq/t for weathered, partially oxidized, and fresh material resp.
5. See note 7 in January 23, 2013 News Release “Primero achieves 2012 Guidance and Provides 2013 Outlook”.
CERRO DEL GALLOReserves and In-Pit Resources1

NotestoBlackFoxMineralReserveestimate:
1.
MineralReservesstatedasatDecember31,2013.
2.
Openpitcut-offgradeof1.0g/tAuandundergroundcut-offgradeof3.4g/t.
3.
GoldpriceassumedisUS$1,250pertroyounce.
4.
Processinggoldrecoveryfactor94%assumed.
5.
HaroldBrisson,PhD,Eng.istheQualifiedPersonfortheBlackFoxComplexMineralResourceestimates.
Notes to Black Fox Mineral Resource estimate:
1.
Mineral Reserves stated as at December 31, 2013.
2.
Open pit cut-off grade of 0.9 g/t Au and underground cut-off grade of 3.0 g/t.
3.
Gold price assumed is US$1,300 per troy ounce and exchange rate of US$1.00=C$1.10 was used in the gold cut-off grade calculations.
4.
Detailed footnotes can be found in the NI 43-101 Technical Report titled “TECHNICAL REPORT ON THE MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES FOR THE BLACK FOX COMPLEX”, dated June 30, 2014 and filed on www.sedar.com.
BLACK FOX
Mineral Resources and Mineral Reserves
(December 31, 2013, Mineral Resources include Mineral Reserves)
Classification
Tonnage
(Tonnes)
Gold Grade
(G/T)
Cont. Gold
(Ounces)
Proven & Probable Reserves
Open Pit
1,468,500
3.7
173,900
Underground
1,663,900
6.3
339,100
Stockpile
716,200
1.1
24,700
Total
3,848,700
4.3
537,700
Measured & Indicated Resources, Including Reserves
Open Pit
1,423,900
4.0
182,518
Underground
1,852,800
7.5
445,336
Stockpile
716,200
1.1
24,706
Total
3,992,800
5.1
652,560
Inferred Resources
Open Pit
364,100
5.8
67,897
Underground
326,300
9.5
99,889
Total
690,400
7.6
167,786

Classification
Cut-off Grade
(G/T Au)
Potential Material
Tonnes
(MillionTonnes)
CAPPED Au (G/T)
Contained Gold
(000 Ounces)
Indicated Resources
>3.0
Underground
1.394
5.4
243,041
>0.9
Open Pit
3.882
2.5
314,615
Total Indicated Resources
5.276
3.3
557,655
Inferred Resources
>3.0
Underground
1.065
5.1
175,511
>0.9
Open Pit
0.486
2.8
43,309
Total Inferred Resources
1.552
4.4
218,820
Notes to Grey Fox Mineral Resource estimate:
1.
Mineral Reserves stated as at 31 December 2013.
2.
Open pit cut-off grade of 0.9 g/t Au and underground cut-off grade of 3.0 g/t
3.
Gold price assumed is US$1,300 per troy ounce and exchange rate of US$1.00=C$1.10 was used in the gold cut-off grade calculations.
4.
Detailed footnotes can be found in the NI 43-101 Technical Report titled “TECHNICAL REPORT ON THE MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES FOR THE BLACK FOX COMPLEX”, dated June 30, 2014 and filed on www.sedar.com.
5.
HaroldBrisson,PhD,Eng.istheQualifiedPersonfortheBlackFoxComplexMineralResourceestimates.
GREY FOX
Mineral Resources
December 31, 2013

Executive Management
Tamara Brown | VP, Investor Relations

Former Director Investor Relations for IAMGOLD

Former partner of a Toronto based, boutique investment bank and professional engineer in mining industry
H. Maura Lendon | VP, Chief General Counsel and Corporate Secretary

Former Senior Vice President, Chief Legal Officer and Corporate Secretary of HudBayMinerals Inc.; Chief Counsel Canada, Chief Privacy Officer - Canada of AT&T
David Sandison | VP, Corporate Development

Former VP, Corporate Development of Clarity Capital ; Director, Corporate Development Xstrata Zinc Canada ; Director Business Development, Noranda/Falconbridge; Former EVP, Noranda Chile
Louis Toner | VP, Project Development and Construction

Over 30 Years of Engineering and Construction experience, formerly held Senior Project Management roles with BBA Inc. and Lafarge Canada Inc.
James Mallory | VP, Corporate Responsibility

Over 35 Years of mining experience

Former VP, Vice-President, Operations & Social Responsibility at South American Silver

13 Years of experience in Latin America
Gabriel Voicu | VP, Geology and Exploration

25 Years of mining experience, formerly held senior technical and exploration positions with Cambior and IAMGOLD
Wendy Kaufman| Chief Financial Officer


Appointed CFO in September 2014

Former VP, Finance and Treasure of InmetMining Corporation
Joseph Conway | President and CEO


Appointed President and CEO in June 2010

Former CEO, President & Director of IAMGOLD and RepadreCapital

Board of Directors
Board Committees:
1. Corporate Responsibility 2. Human Resources 3. Governance and Nominating 4. Lead Director 5. Audit
David Demers | Director 2, 3, 4, 5
o
Founder, CEO and Director Westport Innovations
o
Director of Cummins Westport and Juniper Engines
Grant Edey | Director 3, 5
o
President & CEO, Khan Resources Inc.
o
Former Director of Breakwater Resources, former director of Queenstake Resources, Santa Cruz Gold
o
Former CFO, IAMGOLD
Michael Riley | Director 2, 5
o
Chartered accountant with more than 26 years of accounting experience
o
Chair of Primero Audit Committee
Brad Marchant | Director 1
o
Co-founder of Triton Mining Corporation
o
Founder of BioteQ Environmental Technologies Inc.
o
CEO, EnterraFeed Corporation
Rohan Hazelton | Director 1
o
VP, Strategy, Goldcorp
o
Formerly with Wheaton River and Deloitte & Touche LLP
Robert Quartermain | Director 2, 3
o
Founder and President & CEO, Pretivm Resources
o
Former President and CEO of Silver Standard
Wade Nesmith |Chairman
o
Founder of Primero
o
Founding and current director of Silver Wheaton
Eduardo Luna | Director 1
o
Former EVP & 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
Joseph Conway | Director
see Executive Management

ThispresentationhasbeenpreparedinaccordancewiththerequirementsofCanadianprovincialsecuritieslawswhichdifferfromtherequirementsofU.S.securitieslaws.Unlessotherwiseindicated,allmineralreserveandresourceestimatesincludedinthispresentationhavebeenpreparedinaccordancewithCanadianNationalInstrument43-101StandardsofDisclosureforMineralProjects(“NI43-101”)andtheCanadianInstituteofMining, MetallurgyandPetroleumclassificationsystems.NI43-101isaruledevelopedbytheCanadianSecuritiesAdministratorsthatestablishesstandardsforallpublicdisclosureanissuermakesofscientificandtechnicalinformationconcerningmineralprojects.ThesestandardsdiffersignificantlyfromtherequirementsoftheUnitedStatesSecuritiesandExchangeCommission(the“SEC”),andreserveandresourceestimatesdisclosedinthispresentationmaynotbecomparabletosimilarinformationdisclosedbyU.S.companies.
ThemineralreserveestimatesinthispresentationhavebeencalculatedinaccordancewithNI43-101,asrequiredbyCanadiansecuritiesregulatoryauthorities.ForUnitedStatesreportingpurposes,SECIndustryGuide7undertheUnitedStatesSecuritiesExchangeActof1934,asamended,asinterpretedbyStaffoftheSEC,appliesdifferentstandardsinordertoclassifymineralizationasareserve.Asaresult,thedefinitionof“probablereserves”usedinNI43-101differsfromthedefinitionintheSECIndustryGuide7.UnderSECstandards,mineralizationmaynotbeclassifiedasa“reserve”unlessthedeterminationhasbeenmadethatthemineralizationcouldbeeconomicallyandlegallyproducedorextractedatthetimethereservedeterminationismade.Amongotherthings,allnecessarypermitswouldberequiredtobeinhandorissuanceimminentinordertoclassifymineralizedmaterialasreservesundertheSECstandards.Accordingly,mineralreserveestimatescontainedinthispresentationmaynotqualifyas“reserves”underSECstandards.
Inaddition,thispresentationusestheterms“indicatedresources”and“inferredresources”tocomplywiththereportingstandardsinCanada.TheCompanyadvisesUnitedStatesinvestorsthatwhilethosetermsarerecognizedandrequiredbyCanadianregulations,theSECdoesnotrecognizethem. UnitedStatesinvestorsarecautionednottoassumethatanypartorallofthemineraldepositsinthesecategorieswilleverbeconvertedintomineral reserves.Further,“inferredresources”haveagreatamountofuncertaintyastotheirexistenceandastowhethertheycanbeminedlegallyoreconomically.Therefore,UnitedStatesinvestorsarealsocautionednottoassumethatalloranypartofthe“inferredresources”exist.InaccordancewithCanadiansecuritieslaws,estimatesof“inferredresources”cannotformthebasisoffeasibilityorothereconomicstudies.Itcannotbeassumedthatalloranypartof“indicatedresources”or“inferredresources”willeverbeupgradedtoahighercategoryorareeconomicallyorlegallymineable.Inaddition,disclosureof“containedounces”ispermitteddisclosureunderCanadiansecuritieslaws;however,theSEConlypermitsissuerstoreportmineralizationasinplacetonnageandgradewithoutreferencetounitmeasures.
NI43-101alsopermitstheinclusionofdisclosureregardingthepotentialquantityandgrade,expressedasranges,ofatargetforfurtherexplorationprovidedthatthedisclosure(i)stateswithequalprominencethatthepotentialquantityandgradeisconceptualinnature,thattherehasbeeninsufficientexplorationtodefineamineralresourceandthatitisuncertainiffurtherexplorationwillresultinthetargetbeingdelineatedasamineralresources,and(ii)statesthebasisonwhichthedisclosedpotentialquantityandgradehasbeendetermined.Disclosureregardingexplorationpotentialhasbeenincludedinthispresentation.UnitedStatesinvestorsarecautionedthatdisclosureofsuchexplorationpotentialisconceptualinnaturebydefinitionandthereisnoassurancethatexplorationwillresultinanycategoryofNI43-101mineralresourcesbeingidentified.
Notes to Investors Regarding the Use of Resources

1.
“Gold equivalent ounces” include silver production converted to a gold equivalent based on consensus estimated commodity prices; accounts for the San Dimas silver purchase agreement.
2.
Silver production is subject to a silver purchase agreement. The silver purchase agreement dictates that until August 6, 2014 Primero will deliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of silver produced at San Dimas and 50% of any excess at $4.16 per ounce (increasing by 1% per year). Thereafter Primero will deliver to Silver Wheaton a per annum amount equal to the first 6.0 million ounces of silver producedatSan Dimas and 50% of any excess at $4.20 per ounce (increasing by 1% per year). The Company will receive silver spot prices only after the annual threshold amounthas been delivered.
3.
Cash costs and All-in Sustaining Costs are non-GAAP measures. Refer to the Company’s third quarter 2014 MD&A for a reconciliation to operating expenses. Note the calculation of all-in sustaining costs at San Dimas changed with the acquisition of a second producing asset and subsequently donot include corporate G&A.
4.
Based on 365 days per year.
5.
Adjusted net income/earnings and adjusted net income/earnings per share are non-GAAP measures. Neither of these non-GAAP performance measures has any standardized meaning and is therefore unlikely to be comparable to other measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company’s performance. Accordingly,it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance withGAAP. Refer to the Company’s third quarter 2014 MD&A for a reconciliation of adjusted net income/earnings to reported net income.
6.
“Operating cash flow” is operating cash flow before working capital changes. This and operating cash flows before working capital changes per share (CFPS) are non-GAAP measures which the Company believes provides a better indicator of the Company’s ability to generate cash flow from its mining operations. See the Company’s third quarter 2014 MD&A for a reconciliation of operating cash flows to GAAP.
7.
$48.1 million senior unsecured convertible debenture (acquired from Brigus, with a 6.5% coupon an effective conversion price of $14.00 and an expiry of March 2016); and $30 million draw down from line of credit. Excludes capital leases.
8.
The Company closed a $75 million line of credit on May 23, 2014 and has drawn down $30 million as of September 30, 2014.
9.
During the nine months ended September 30 2014, the Company issued 41,340,347 common shares as consideration for the acquisitionof Brigus, 1,919,744 common shares upon the exercise of stock options; and 1,000,000 common shares pursuant to a flow through agreement.
10.
Fully diluted shares include 20.8 million warrants with an exercise price of Cdn$8.00 per share, expiring on July 20, 2015; and 9.5 million options with an average exercise price of Cdn$6.26.
11.
Assumes that Cerro Del Gallo begins production mid-2016, with half a year of production in 2016 of 50,000 AuEq. Oz and a full year production estimated at 95,000AuEq. ozin 2017.
12.
Based on 2013 actual production, 2014 guidance and projected 2015 estimated production.
13.
Major assumptions include a flat gold price per ounce of $1,300, a flat silver price per ounce of $22.
14.
The Company currently estimates that expanding the San Dimas mill to 3,000 TPD will require approximately $26.4 million of capital investment, with approximately $6 million expenditure expected in 2014 and the remainder spread over the following eighteen months. As a result of the preliminary nature of the capital assessment a contingency factor of 30% has been included in the capital estimate.
15.
Black Fox is subject to a gold purchase agreement under which Sandstorm is entitled to 8% of production at the Black Fox mine and 6.3% at the Black Fox Extension.
Footnotes

Trading Symbols: TSX:P, NYSE:PPP
PRIMERO MINING CORP.
79 Wellington St. West, Suite 2100
Toronto, ON M5K 1H1
T 416 814 3160 TF 877 619 3160
www.primeromining.com
Tamara Brown
Vice President, Investor Relations
T 416 814 3168
info@primeromining.com

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