1. Focused on Production
Focused on Growth
Corporate Update
June 2012
NYSE:PPP
TSX:P | NYSE:PPP TSX:P
2. Cautionary Statement
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 annual information form and will be detailed from time to time in the Company’s continuous disclosure, 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$.
TSX:P | NYSE:PPP 2
3. Primero Profile
AMERICAS FOCUSED
Gold-silver producer GOLD-SILVER PRODUCER
Long-life, high-grade asset
Generates significant cash flow
Vancouver
Strong balance sheet Office
Toronto
Exploration upside & expansion potential Office
Experienced management & board
San Dimas
Attractive valuation Gold-Silver Mine
DURANGO MEXICO
Corporate August 2010 June 2012
Acquired San Dimas • Strengthened Balance Sheet • Increased throughput
History from Goldcorp • Listed on TSX:P, NYSE:PPP • Exploration success
TSX:P | NYSE:PPP 3
4. Focused Strategy
Become a Leading Intermediate Gold Producer
Deliver
operational and Optimize and
financial results expand
existing mine/s
Diversify
through
opportunistic, Increase
accretive Reserves
acquisitions through
exploration
TSX:P | NYSE:PPP 4
5. Strong Balance Sheet
TSX:P
Exchanges NYSE:PPP
$86M Balance Sheet at March 31, 2012
Cash2
Promissory note3
$86 million
$45 million
Strong Cash Balance Convertible note4 $30 million
Ownership
Goldcorp 36%
$90M 1 Management & insiders
Institutional & float
~3%
~61%
Significant Operating Cash Flow Capital Structure
Shares outstanding 88 million
Fully Diluted 118 million
$5M Repayment
per year3
Market Cap. At June 22, 2012
1.
C$220 million
Estimated five-year average after-tax operating cash flow based on a 2012 gold
price of $1,600/oz and spot silver $30/oz, see Jan 17, 2012 Press Release.
Conservative Level of Debt 2. Reflects positive advance tax ruling, see First Quarter 2012 Report for details of off
balance sheet net contingent liability of $20.3 million.
3. Goldcorp: 5 year, 6% note repaid $5M/yr with balloon payment at end of 2015.
4. Goldcorp: 1 year, 3% note maturing August 6, 2012, convertible at any time at C$6
or on maturity at the greater of C$3.74 or 90% of the 5 day VWAP before the
maturity date.
TSX:P | NYSE:PPP 5
6. Delivering Financial Results
Increasing Earnings
Adjusted EPS ($ per share)
(US$ thousands, except per share amounts) Q1 2012 Q1 2011
950%
$0.20
Revenues 44,044 33,988
Earnings from Mine Operations 18,662 10,912 $0.10
Net income (loss) 18,578 (7,895)
$-
Q1 2011 Q1 2012
EPS ($ per share) 0.21 (0.09)
Increasing Cash Flow
Op CF before changes in working capital ($ per share)
1
Adjusted net income 18,780 1,621
$0.30
+$0.25
$0.25
Adjusted EPS ($ per share) 0.21 0.02 $0.20
$0.15
Operating cash flows before changes in $0.10
21,257 (1,182)
working capital $0.05
$-
CFPS ($ per share) 0.24 (0.01) $(0.05)
Q1 2011 Q1 2012
1 . Please refer to first quarter 2012 MD&A for adjustments.
TSX:P | NYSE:PPP 6
7. Delivering Operational Results
Increasing Throughput
2012E Q1 2012 Q1 2011 (tonnes per day)
8%
Mill Throughput 2,050 2,076 1,870
(tonnes per day) 2,000 8%
Gold equivalent 100,000-
1
production 25,790 24,080
110,000
(gold equivalent ounces)
Gold production 80,000-
22,590 20,500
(ounces) 90,000
1,500
Silver production 4.5-5.0 1.32 1.23 2010 2011 2012E
(million ounces)
Gold grade 3.7 4.05 4.03
(grams per tonne) Increasing Grade
(grams of gold per tonne)
Silver grade 225 242 250
(grams per tonne) 5.0
Cash cost
2 9%
4.0 10%
($ per gold equivalent $630-660 $674 $624
ounce) 3.0
2
Cash cost – by-product $310-340 $532 $491 2.0
($ per gold ounce)
1.0
Capital Expenditures $30 $7.9 $5.2
($ million) -
1 . “Gold equivalent ounces” include revenue from silver converted to a gold equivalent based on 2012 estimated Q3 2011 Q4 2011 Q1 2012
average realized commodity prices ($1,600 per ounce of gold and $9.41 per ounce of silver in full year 2012).
2. Cash cost is a non-GAAP measure. Refer to the first quarter 2012 MD&A for a reconciliation of cash costs.
TSX:P | NYSE:PPP 7
8. Strong Growth Profile
Two Expansion Scenario Production Profiles
(000 AuEq ounces)
200
3,000 tpd
3,000 tpd
2,500 tpd
100 GOLD EQUIVALENT1 Ramping to:
2,500 tpd
GOLD
0
2012E 2013E 2014E 2015E
1 . “Gold equivalent ounces” include silver production converted to a gold equivalent based on flat estimated average realized commodity
prices of $1,600 per ounce of gold and $9.41 per ounce of silver ($30 per ounce for ounces sold at spot and ~$4 per ounce for contract
ounces).
TSX:P | NYSE:PPP 8
9. Silver Purchase Agreement and Taxation
Currently Selling 50% of Silver at Spot Prices
Primero sells 50% of annual production above 3.5 million ounces at spot
Remainder sold at ~$4 per ounce under silver purchase agreement
Threshold increases to 6.0 million ounces in August 2014
Primero selling 50% of silver production at spot prices from May 1st to August 5th 2012
Focused on reducing tax impact through tax structuring
Advance tax ruling (“APA”) filed in Mexico, seeking taxes to be based on realized revenue
• APA ruling expected by end of 2012
Financial Statements reflect benefit of paying tax on realized revenue retroactive to
acquisition
APA supported by transfer pricing study and 3 “should level” opinions (70% or greater
confidence of a positive ruling)
TSX:P | NYSE:PPP 9
10. Focused Strategy
Become a Leading Intermediate Gold Producer
Deliver Optimize and
operational and expand
financial results existing mine/s
Diversify
through
opportunistic, Increase
accretive Reserves
acquisitions through
exploration
TSX:P | NYSE:PPP 10
11. San Dimas: Solid Platform for Growth
One of Mexico’s Most Significant Precious Metals Deposits
MEXICO
QUICK FACTS
LOCATION Durango-Sinaloa State Border, Mexico
OWNERSHIP 100%
METALS Gold & Silver
MINING Underground, cut and fill
2011 PRODUCTION
GOLD EQ. 102,200 gold equivalent ounces
GOLD 79,600 ounces
SILVER 4.6 million ounces
CASH COST $640 per ounce (co-product)
RESERVES & RESOURCES1 (at December 31, 2011)
Classification Tonnage Gold Grade Silver Grade Gold Silver
(Resources include Reserves) (M) (g/t) (g/ t) (koz) (Moz)
Mineral Reserves San Dimas
Gold-Silver Mine
Probable 3.5 4.5 280 505 31.8
Ventanas
Mineral Resources Exploration Property
Indicated 2.9 6.2 390 577 36.5
Inferred 5.8 3.8 320 704 60.8
1 . See Slide 28 for Reserve & Resource notes & details and Slide 9 for silver purchase agreement details . TSX:P | NYSE:PPP 11
12. Long-Life Mining District Produced 11M oz To Date
Large 22,500 hectare land package; Over 120 known veins
ARANA
HANGING
TAYOLTITA WALL
BLOCK
CENTRAL
BLOCK TAYOLTITA MINE
SINALOA Mined 1975 - 2002
2012
GRABEN
Target
BLOCK
WEST
BLOCK CENTRAL MINE
2012 Mined 2002 - Present
Target
SAN ANTONIO MINE
Mined 1987 - 2002
TSX:P | NYSE:PPP 12
13. Optimize San Dimas
Increasing Throughput
Maximize Throughput (tonnes per day)
8%
Ensure daily throughput at capacity (2,100 tpd)
2,000 8%
Examine mill expansion opportunity
Control Costs
Reduce costs per tonne
1,500
Improve productivity per man shift 2010 2011 2012E
Optimize Grade Reducing Costs
($ per ounce by-product)
Implementing 3D Planning $500 $87 $44-
Control mining dilution $450 $74
$400
Accelerate Mine Development $350
$300
Increase number of mining faces $250
Complete lateral haulage connections between $200
2010 2011 2012E
current mining and exploration areas
TSX:P | NYSE:PPP 13
14. Expand San Dimas
Two Potential Mill Expansion Scenarios: 2,500tpd or 3,000tpd
Current operating capacity of 2,100 tpd
Current capacity is mainly limited by crushing
Examining two expansion scenarios: 2,500 tpd
and 3,000 tpd
Basic engineering completed for both scenarios
Detailed engineering ongoing
Targeting expansion decision by Q3 2012
Third Ball Mill On-Site expands crushing to 3,000 tpd
Mill Leaching Capacity currently 2,500 tpd Assessing Mill Expansion:
Tailings Filter Expansion Completed
2,500 tpd or 3,000 tpd
CAPACITY
Capacity 3,300 tpd
TSX:P | NYSE:PPP 14
15. Focused Strategy
Become a Leading Intermediate Gold Producer
Deliver
Optimize and
operational and
expand
financial results
existing mine/s
Diversify
through
opportunistic, Increase
accretive Reserves
acquisitions through
exploration
TSX:P | NYSE:PPP 15
16. District Wide Exploration Potential
West Block
2012 EXPLORATION
Sinaloa Graben Central Block Tayoltita Block Arana
San Antonio
Mined 1987-2002 2012 EXPLORATION Mined 2002-Current Mined 1975-2002 Hanging Wall
SW NE
3,000 m. 3,000 m.
2,000 m. 2012 EXPLORATION PROGRAM 2,000 m.
DRILLING BETWEEN EXISTING MINES
1,000 m. 1,000 m.
Source: San Dimas Geology Office
0 1 2
Mineralization – Ore Bodies Extension of the Favorable Horizon Faults
Favorable Horizon Potential Intrusive K I L O M E T E R S
TSX:P | NYSE:PPP 16
17. 2012 Exploration Program
$12 million 2012 Program Targets Vein Extensions from Existing Mines
Development Delineation Drilling
22,000 metres drifting and raise boring 35,000 metres delineation drilling
Tunnels approaching Sinaloa Graben from the Exploration Drilling
east and from the south
30,000 metres diamond drilling
ROBERTITA CROSS SECTION
Sinaloa Graben Central Block
2012 EXPLORATION Mined 2002-Current
Sinaloa
Graben
Tunnel
DELINEATION
TSX:P | NYSE:PPP 17
18. Two New Veins Discovered to date in 2012
Alexa and Victoria Vein Discoveries Support Exploration Potential
Located in Prolific Central Corridor Strategic Underground Drill Locations
Alexa located 125m north of Victoria Drilling from old El Pilar workings, Sinaloa
Mining access expected by end of 2012 Graben tunnel and a drift from Robertita
TSX:P | NYSE:PPP 18
20. Testing for Second Mineralized Horizon
“Blue-Sky” Opportunity
Historical Geological Model Recognized One Mineralized Horizon
300-600 metres of vertical extent
Geologic Concept of Second Mineralized Horizon
Running parallel and 150-200 metres below first horizon
If proven, would significantly increase exploration potential
TSX:P | NYSE:PPP 20
21. Focused Strategy
Become a Leading Intermediate Gold Producer
Deliver
operational and Optimize and
financial results expand
existing mine/s
Diversify
through
Increase
opportunistic,
Reserves
accretive
through
acquisitions
exploration
TSX:P | NYSE:PPP 21
22. Growth through Acquisition
Selective Acquisition Criteria
Growth Strategy
Diversify asset base
LEADING MID-TIER
GOLD PRODUCER
Create a portfolio of early and advanced
stage projects AMERICAS
ACQUISITIONS
ACQUISITION/S
Remain focused on mining friendly ACQUISITION/S
jurisdictions in the Americas
SAN DIMAS ACQUISITION/S
OPTIMIZATION
Focus on similar scale to San Dimas OPTIMIZATION
EXPLORATION
Remain opportunistic by leveraging strong
balance sheet and cash flow
SAN DIMAS PLATFORM
TSX:P | NYSE:PPP 22
23. 2012 Objectives & Catalysts
Produce or exceed 100,000-110,000 AuEq oz Upcoming Catalysts
Improve productivity per man shift 2012
Q1 Q2 Q3 Q4
Commence mill expansion construction
Exploration
Replace reserves with 150% of production Results
Reserve and
Resource Update
Develop access across Sinaloa Graben
Mill Expansion
Decision
Evaluate high quality strategic growth
alternatives in mining friendly jurisdictions in Exploration
Results
the Americas
Advance Tax
Ruling
Maintain industry leading Corporate
Responsibility standards
TSX:P | NYSE:PPP 23
24. The Primero Opportunity
Compelling Investment Argument
MEXICO
Sierra Madre Trend
Long-Life, High-Grade Asset
Cash Flow and Capital to Fund Growth
Significant Exploration Potential
Proven Management & Board
Attractive Valuation
San Dimas
Gold-Silver Mine
Ventanas
Exploration Property
TSX:P | NYSE:PPP 24
26. Executive Management
Joseph F. Conway | President & C.E.O. 1 Tamara Brown | VP Investor Relations
Former CEO, President and Director of IAMGOLD Former Director Investor Relations for IAMGOLD
from 2003 to 2010 Former Partner of a Toronto based, boutique
Former President, CEO and Director of Repadre investment bank; Professional engineer in mining
Capital from 1995 to 2003 industry
H. Maura Lendon | VP, Chief General Counsel and
Corporate Secretary
Former Senior Vice President, Chief Legal Officer
Renaud Adams | C.O.O. and Corporate Secretary of HudBay Minerals Inc.
Former Chief Counsel Canada, Chief Privacy Officer
Former SVP, American Operations for IAMGOLD - Canada of AT&T
Former General Manager of Rosebel Gold Mine
2007 to 2010
Former General Manager El Toqui Mine in Chile Joaquin Merino | VP Exploration
and then the El Mochito Mine in Honduras
Former VP, Exploration of Apogee Minerals
Former Exploration Manager for Placer Dome
at Porgera Mine
David Blaiklock | C.F.O.
David Sandison | VP Corporate Development
Former Controller IntraWest
Previously controller for a number of public and Former Director, Corporate Development
private companies in real estate development Xstrata Zinc Canada
Former Director Business Development,
Noranda/Falconbridge
Board Committees: 1.Health, Safety and Environment Former EVP Noranda, Chile
TSX:P | NYSE:PPP 26
27. Board of Directors
Wade Nesmith | Chairman Rohan Hazelton | Director 1,5 Robert Quartermain | Director 2,3
Founder of Primero VP, Finance, Goldcorp Founder and President & CEO,
Founding and current director Formerly with Wheaton River Pretivm Resources
of Silver Wheaton, Chairman of and Deloitte & Touche LLP Former President, Silver Standard
Selwyn Resources Director of Vista Gold Corp.
and Canplats Resources
David Demers | Director2,3,4 Timo Jauristo | Director 2 Michael Riley | Director 5
Founder, CEO and Director EVP, Corporate Development, Chartered accountant with more
Westport Innovations Goldcorp than 26 years of accounting
Director of Cummins Westport Former CEO of Zincore Metals experience
and Juniper Engines Inc. and Southwestern Chair of Primero Audit Committee,
Resources Corp. Chair of Audit Committee of B.C.
Lottery Corporation and member of
the Audit Committee of Canalaska
Uranium Ltd.
Grant Edey | Director 3,5 Eduardo Luna | Director 1 Joseph Conway | Director1
see Executive Management
Former Director of Breakwater Former EVP & President,
Resources, former director of Mexico. Former Chairman and
Queenstake Resources, Santa CEO of Silver Wheaton,
Board Committees:
Cruz Gold Executive VP of Goldcorp and 1.Health, Safety and Environment
Former CFO, IAMGOLD Luismin S.A. de C.V. (San Dimas) 2. Human Resources and Compensation
and President of Mexican 3. Governance and Nominating
Mining Chamber and the Silver 4. Lead Director 5. Audit
Institute
TSX:P | NYSE:PPP 27
28. 2011 Mineral Resources and Mineral Reserves
Classification Tonnage Gold Grade (g/t) Silver Grade Contained Gold Contained Silver
(million tonnes) (g/ t) (000 ounces) (000 ounces)
Mineral Resources
Indicated 2.877 6.2 390 577 36,470
Inferred 5.833 3.8 320 704 60,770
Mineral Reserves
Probable 3.514 4.5 280 505 31,800
Notes to Resource Statement:
1. Indicated Mineral Resources include Mineral Reserves.
2. Cutoff grade of 2 g/t AuEq is applied and the AuEq is calculated at a gold price of US$1,400 per troy ounce and silver price of US$25 per troy ounce.
3. A constant bulk density of 2.7 tonnes/m3 has been used.
4. 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 Qualified Persons (“QP’s”) for the purposes of National Instrument 43-101 (“NI 43-101”).
Notes to Reserve Statement:
1. Cutoff grade of 2.52g/t AuEq based on total operating cost of US$98.51/t. Metal prices assumed are a gold price of US$1,250 per troy ounce and silver price of
US$20 per troy ounce. Silver supply contract obligations have been referenced in determining overall vein reserve estimate viability.
2. Processing recovery factors for gold and silver of 97% and 94% assumed.
3. Exchange rate assumed is 13.00 pesos/US$1.00.
4. The Mineral Reserve estimates were prepared by Mr. Herbert A. Smith P.Eng. of AMC Mining Consultants (Canada) Ltd. and a Qualified Person (“QP”) for the
purposes of NI 43-101.
Additional exploration potential estimated at 6-10 million tonnes at grade ranges of 3-5 grams per
1
tonne of gold and 200-400 grams per tonne of silver.
1. 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.
TSX:P | NYSE:PPP 28
29. Notes to Investors Regarding the Use of Resources
This presentation has been prepared in accordance with the requirements of Canadian provincial securities laws which differ from the requirements of U.S.
securities laws. Unless otherwise indicated, all mineral reserve and resource estimates included in this presentation have been prepared in accordance
with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and
Petroleum classification systems. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning mineral projects. These standards differ significantly from the requirements of the United
States Securities and Exchange Commission (the “SEC”), and reserve and resource estimates disclosed in this presentation may not be comparable to similar
information disclosed by U.S. companies.
The mineral reserve estimates in this presentation have been calculated in accordance with NI 43-101, as required by Canadian securities regulatory
authorities. For United States reporting purposes, SEC Industry Guide 7 under the United States Securities Exchange Act of 1934, as amended, as
interpreted by Staff of the SEC, applies different standards in order to classify mineralization as a reserve. As a result, the definition of “probable reserves”
used in NI 43-101 differs from the definition in the SEC Industry Guide 7. Under SEC standards, mineralization may not be classified as a “reserve” unless
the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is
made. Among other things, all necessary permits would be required to be in hand or issuance imminent in order to classify mineralized material as reserves
under the SEC standards. Accordingly, mineral reserve estimates contained in this presentation may not qualify as “reserves” under SEC standards.
In addition, this presentation uses the terms “indicated resources” and “inferred resources” to comply with the reporting standards in Canada. The
Company advises United States investors that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them.
United States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral
reserves. Further, “inferred resources” have a great amount of uncertainty as to their existence and as to whether they can be mined legally or
economically. Therefore, United States investors are also cautioned not to assume that all or any part of the “inferred resources” exist. In accordance with
Canadian securities laws, estimates of “inferred resources” cannot form the basis of feasibility or other economic studies. It cannot be assumed that all or
any part of “indicated resources” or “inferred resources” will ever be upgraded to a higher category or are economically or legally mineable. In addition,
disclosure of “contained ounces” is permitted disclosure under Canadian securities laws; however, the SEC only permits issuers to report mineralization as
in place tonnage and grade without reference to unit measures.
NI 43-101 also permits the inclusion of disclosure regarding the potential quantity and grade, expressed as ranges, of a target for further exploration
provided that the disclosure (i) states with equal prominence that the potential quantity and grade is conceptual in nature, that there has been insufficient
exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resources, and
(ii) states the basis on which the disclosed potential quantity and grade has been determined. Disclosure regarding exploration potential has been included
in this presentation. United States investors are cautioned that disclosure of such exploration potential is conceptual in nature by definition and there is no
assurance that exploration will result in any category of NI 43-101 mineral resources being identified.
TSX:P | NYSE:PPP 29
30. PRIMERO MINING CORP. Joseph Conway
Richmond Adelaide Centre President & C.E.O.
120 Adelaide Street West, Suite 1202
Toronto, ON M5H 1T1 Investor Relations
T 416 814 3160 F 416 814 3170 T 416 814 3168
TF 877 619 3160 info@primeromining.com
www.primeromining.com
Trading Symbols
Common Shares TSX:P NYSE:PPP
Warrants TSX:P.WT
NYSE:PPP
TSX:P | NYSE:PPP TSX:P