New Leader in Precious Metals

New Leader in Precious Metals New Leader in Precious Metals CIBC Whistler Institutional Investor Conference January 25, 2017 Forward-Looking Statem...
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New Leader in Precious Metals

New Leader in Precious Metals CIBC Whistler Institutional Investor Conference January 25, 2017

Forward-Looking Statements Disclaimer This presentation contains “forward-looking information” within the meaning of applicable Canadian securities legislation, and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively referred to as “forward-looking statements”). All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intend", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions or statements identify forward-looking statements. Forward-looking statements in this presentation include, but are not limited to, statements and/or information related to: (i) the Company’s 2016 outlook and production guidance, including estimates related to gold and silver mineral reserves and mineral resources, production, total cash cost per ounce, all-in sustaining cost per ounce, capital expenditures, corporate general and administration expenses and exploration expenses, (ii) estimated production over the life of the Escobal, La Arena, Timmins West and Bell Creek mines, (iii) estimates of royalties and taxes paid in Guatemala, Peru and Canada, (iv) the advancement of exploration and development projects in Guatemala, Peru and Canada, (v) estimated mill and leach pad recoveries, smelter payables and doré and silver concentrate details over the first ten years of mine life, and (vi) estimated production rates, grades, recoveries and costs at the Company’s operations in Guatemala, Peru and Canada. Forward-looking statements are based on management’s reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things: the Company’s performance and ability to implement operational improvements at the Escobal, La Arena, Timmins West and Bell Creek mines; the Company’s ability to carry on exploration and development activities, including construction; the timely receipt of required approvals; the price of silver, gold and other metals; prices for key mining supplies, including labor costs and consumables, remaining consistent with the Company’s current expectations; production meeting expectations and being consistent with estimates; plant, equipment and processes operating as anticipated; there being no material variations in the current tax and regulatory environment; the Company’s ability to operate in a safe, efficient and effective manner; the exchange rates among the Canadian dollar, Guatemalan quetzal, Peruvian sol and the United States dollar remaining consistent with current levels; and the Company’s ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. The Company’s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, risks and uncertainties, many of which are beyond the Company’s control. These include, but are not necessarily limited to: the fluctuation of the price of silver, gold and other metals; changes in national and local government legislation, taxation and controls or regulations; social unrest, and political or economic instability in Guatemala and/or Peru; the availability of additional funding as and when required; the speculative nature of mineral exploration and development; the timing and ability to maintain and, where necessary, obtain necessary permits and licenses; the uncertainty in the estimation of mineral resources and mineral reserves; the uncertainty in geologic, hydrological, metallurgical and geotechnical studies and opinions; infrastructure risks, including access to water and power; the impact of inflation; changes in the administration of governmental regulation, policies and practices; environmental risks and hazards; insurance and uninsured risks; land title risks; risks associated with illegal mining activities by unauthorized individuals on the Company’s mining or exploration properties; risks associated with competition; risks associated with currency fluctuations; contractor, labor and employment risks; dependence on key management personnel and executives; the timing and possible outcome of pending or threatened litigation; the risk of unanticipated litigation; risks associated with the repatriation of earnings; risks associated with negative operating cash flow; risks associated with the Company’s hedging policies; risks associated with dilution; and risks associated with effecting service of process and enforcing judgments. For a further discussion of risks relevant to the Company, see the Company’s Annual Information Form available on SEDAR at www.sedar.com under the heading “Description of Our Business – Risk Factors”. For a discussion of risks and uncertainties affecting the Company’s Canadian operations, see Lake Shore Gold’s most recent Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are available on SEDAR under Lake Shore Gold’s issuer profile. There is no assurance that forward-looking statements will prove to be accurate. Actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits may be derived there from. Accordingly, readers should not place undue reliance on this information. Tahoe does not undertake to update publicly or revise any forward-looking statements, except as, and to the extent required by, applicable securities laws. For more information about the risks and challenges of Tahoe’s business, investors should review Tahoe’s current Annual Information Form available at www.sedar.com. All prices in U.S. Dollars unless otherwise stated.

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Tahoe: Responsible, Low-Cost Precious Metal Production  Solid track record of performance

 Attractive near-term growth  Increasing gold production to 550 koz/year(4)  Value potential from longer-term projects

 Strong financial position  Attractive monthly dividend (1) (2) (3) (4)

Non-GAAP measures, see disclosures related to Non-GAAP measures in Tahoe presentation flipbook Based on ounces produced net of byproduct credits Refers to all-in sustaining costs Example of forward-looking information

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Strong Financial Performance & Position ~$150M(1)

~$50M(1)

~$100M(1)

Cash & equivalents

Debt & Leases

Net cash

Returning capital to shareholders - $0.02/month dividend Dividend Reinvestment Plan introduced October 2016  Record adjusted earnings and cash flow per share in 9M/16  Record revenue $595M ($235M in Q3)  Record cash flow $311M or $1.10/share ($126M or $0.40/share in Q3)  Record adjusted earnings $162M or $0.57/share ($66M or $0.21/share in Q3)  Earnings $118M or $0.42/share ($63M or $0.20/share in Q3 (1) Approximate unaudited numbers presented. Year-end 2016 financial statements to be released in March 2017.

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Tahoe in 2020(1)  Gold production of ~550 koz  Silver production at Escobal of 18 to 21 moz  Increased mine life at all operations  >20 years in both Guatemala and Peru  Reserve/Resource in Timmins increased 2.0 to 4.0 moz Projected Gold Production(2)(3) (000's of Ounces) Actual

Target

550

375 – 425

385 230 2015

2016

2017

2020

(1) Contains Forward-looking Information (2) 2015 gold production pro forma to include full year of results from Rio Alto (3) 2016 results include nine months of production from Canadian operations and pre-commercial production ounces at Shahuindo

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2017 Guidance – Investing for Growth in 2018, 2019 & Beyond

Footnotes: (1) See Forward-Looking Statements Disclaimer,” “Non-GAAP Financial Measures” and “Non-GAAP Measures – Calculations” slides. (2) Assumes the following metals prices: $1,250/oz gold; $0.90/lb lead; $0.90/lb zinc. (3) Assumes by-product metal production: 10,190 oz gold; 16,332,000 lbs lead; 23,109,000 lbs zinc. (4) By-product credits per ounce of silver: gold $0.63; lead $0.67; zinc $0.84; total $2.14. (5) All per ounce costs are based on silver ounces contained in concentrates (silver) and gold ounces in doré (gold). (6) Corporate G&A includes non-cash, stock-based compensation. (7) Sustaining capital includes capitalized drilling.

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Escobal: Long-Life, World-Class Silver Mine

 Low-cost production  

Record 21.2 moz in 2016 Total cash costs: $5.66/oz 9M/16; AISC: $7.55/oz 9M/16

 Strong profitability and cash flow 

Mine operating earnings: $137.3M in 9M/16

 Long reserve life with potential for growth  

P&P reserves: 29.1M tonnes @ 332 gpt for 310.4 moz Current reserve life: 15 years 1

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La Arena: Late-Life Operation with Large-Scale Growth Project

 Record year in 2016    

Production of 204.4 koz gold Total cash costs: $626/oz 9M/16, AISC: $859/oz 9M/16 Operating earnings: $74.9M 9M/16 Production of ~150 koz expected in 2017 (lower grades in mine plan)(1)

 Significant growth potential from Au/Cu Sulfide project 

Targeting PEA in 2017

(1) Example of forward-looking information

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Shahuindo: Ramping Up to 36,000 TPD  Shallow open-pit heap leach project  Commercial production May 1, 2016 (10k tpd)  Produced 48.5 koz(1) in 2016  Total cash costs: $638/oz; AISC: $1,258/oz  Operating earnings: $14.9M(3)

 Targeting 36,000 tpd by mid-2018(2)  Average production ~170 koz/year  ~200 koz/year in initial years

 Significant potential for growth  Near-pit exploration success in 2016  Large district targets identified (1) Includes 13.4 koz of non-commercial production (2) Example of forward-looking information (3) From May 1, 2016 to December 31, 2016

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Timmins Mines: Low-Cost Production with Near-Term Growth  Two operating mines with growth

Expanding Zones at Bell Creek – 2016 Exploration

 Timmins West & Bell Creek

 Acquired April 1, 2016  Produced 121.6 koz (Apr. 1 – Dec. 31 ’16)  Total cash costs: $640/oz; AISC: $1,131/oz(1)  Operating earnings: $29.2M(1)

 Bell Creek shaft to add 40 koz/year(2)  Extend mine life at least 5 years  Support exploration at depth

 Significant exploration success  Extended mineralization at Timmins Deposit Deep & Bell Creek along strike  Positive results at 144, Gold River, Whitney (1) From April 1, 2016 to September 30, 2016 (2) Example of forward-looking information

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Tahoe: New Leader in Precious Metals  Solid track record of performance

 Attractive near-term growth  Increasing gold production to 550 koz/year(1)  Value potential from longer-term projects

 Strong financial position  Attractive monthly dividend (1) Example of forward-looking information

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New Leader in Precious Metals

CIBC Whistler Institutional Investor Conference New Leader in Precious Metals

January 25, 2017

Non-GAAP Financial Measures The Company has included certain non-GAAP financial measures throughout this presentation which include total cash costs and all-in sustaining costs per silver and per gold ounce (“all-in sustaining costs”). These measures are not defined under IFRS and may be calculated differently by other companies depending on the underlying accounting principles and policies applied. As such, these Non-GAAP financial measures should not be considered in isolation. The Company’s Escobal mine produces primarily silver in concentrates with other metals (gold, lead and zinc) produced simultaneously in the mining process, the value of which represents a small percentage of the Company’s revenue and is therefore considered “byproduct”. The Company’s La Arena, Shahuindo, Timmins mines produce primarily gold with other metals (primarily silver) produced simultaneously in the mining process, the value of which represents a small percentage of the Company’s revenue and is therefore considered “byproduct”. The Company believes these measures will provide investors and analysts with useful information about the Company’s underlying earnings, cash costs of operations, the impact of byproduct credits on the Company’s cost structure and its ability to generate cash flow, as well as providing a meaningful comparison to other mining companies. These measures are intended to provide additional information and should not be substituted for GAAP measures. The Company reports total cash costs and total production costs on a silver ounce and a gold ounce produced basis. The Company follows the recommendation of the cost standard as endorsed by the Silver Institute (“the Institute”) for the reporting of cash costs (silver) and the generally accepted standard of reporting cash costs (gold) by precious metal mining companies. The Institute is a nonprofit international association with membership from across the silver industry. The Institute serves as the industry’s voice in increasing public understanding of the many uses and values of silver. This remains the generally accepted standard for reporting cash costs of production by precious metal mining companies. Total cash costs and total production costs are divided by the number of silver ounces contained in concentrate or gold ounces recovered in doré to calculate per ounce figures. When deriving the production costs associated with an ounce of silver or gold, the Company deducts byproduct credits from sales which are incidental to producing silver and gold. The Company has adopted the reporting of all-in sustaining costs as a non-GAAP measure of a precious metals mining company’s operating performance and the ability to generate cash flow from operations. This measure has no standardized meaning and the Company has utilized an adapted version of the guidance released by the World Gold Council, the market development organization for the gold industry. The World Gold Council is not a regulatory industry organization and does not have the authority to develop accounting standards or disclosure requirements. All-in sustaining costs include total cash costs incurred at the Company’s mining operation, sustaining capital expenditures, corporate administrative expense, certain exploration and evaluations costs, and reclamation and closure accretion. The Company believes that this non-GAAP measure represents the total costs of producing silver and gold from its operation, and provides additional information of the Company’s operational performance and ability to generate cash flows to support future capital investments and to sustain future production. For additional information regarding these non-GAAP measures (including reconciliations to IFRS measures and by-product credit calculations, as applicable), see Tahoe’s management’s discussion and analysis for the three and nine months ended September 30, 2016 and its press release dated November 3, 2016, both available at www.tahoeresources.com and on SEDAR at www.sedar.com. For information on how Lake Shore Gold has historically disclosed these non-GAAP measures (including reconciliations to IFRS measures, as applicable), see Lake Shore Gold’s management’s discussion and analysis for the year ended December 31, 2015, also available on SEDAR.

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Non-GAAP Measures – 2017 Guidance Calculations Total cash costs and total production costs ($000's) Production costs (including royalties) Treatment and refining charges Total cash costs before by-product credits Less gold credit1 Less zinc credit2 Less lead credit3 Total cash costs net of by-product credits

Ag $164,000 28,750 $192,750 (12,750) (16,750) (13,300) $149,950

Au $290,000 $290,000 $290,000

Silver ounces produced in concentrate (000's) Gold ounces produced in dore (000's)

20,000 -

400

Total cash costs per ounce before by-product credits Total cash costs per ounce net of by-product credits

$9.64 $ 7.50

$725 $725

$149,950 32,500 1,500 200 15,750 $199,900

$290,000 135,000 20,000 2,000 33,000 $480,000

Silver ounces produced in concentrate (000's) Gold ounces produced in dore (000's)

20,000 -

400

All-in sustaining cost per ounce produced net of by-product credits

$10.00

$1,200

All-in sustaining costs ($000's) Total cash costs net of by-product credits Sustaining capital Exploration Reclamation cost accretion General and administrative expenses All-in sustaining costs

1 2 3

Metal Au (oz) Zn (lb) Pb (lb)

Quantity 10,190 23,109,000 16,332,000

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Price $ 1,250 $ 0.90 $ 0.90

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Reserves and Resources; QP Statement Reserves and Resource Disclosure Escobal Mineral Reserves at January 1, 2016 as calculated by subtracting mine depletion volumes from the Mineral Reserve estimate as reported in Escobal Mine Guatemala NI 43-101 Feasibility Study, dated November 5, 2014. The basis of the La Arena Mineral Resources and Mineral Reserves is from La Arena Project, Peru Technical Report (NI 43-101), dated February 27, 2015. La Arena oxide Mineral Reserves at January 1, 2016 as calculated by subtracting mine depletion volumes from the Mineral Reserve estimate as reported in the aforementioned technical report. Shahuindo oxide Mineral Reserves at November 1, 2015 as reported in Technical Report on the Shahuindo Mine, Cajabamba, Peru, dated January 25, 2016. Timmins West Mine and 144 Gap Mineral Resources and Mineral Reserves at December 31, 2015 as reported in 43-101 Technical Report, Updated Mineral Reserve Estimate For Timmins West Mine and Initial Resource Estimate For The 144 Gap Deposit, Timmins, Ontario, Canada, dated February 29, 2016. Bell Creek Mine Mineral Resources and Mineral Reserves at December 31, 2015 as reported in news release Lake Shore Gold Announces Updated Resources and Reserves, dated March 10, 2016. Whitney Mineral Resources at January 14, 2014 as reported in Technical Report and Resource Estimate on the Upper Hallnor, C-Zone, and Broulan Reef Deposits, Whitney Gold Property, Timmins Area, Ontario, Canada, dated February 26, 2014. Gold River Mineral Resources at January 17, 2012 as reported in Technical Report on the Update of Mineral Resource Estimate for the Gold River Property, Thorneloe Township, Timmins, Ontario, Canada, dated April 5, 2012. Juby Mineral Resources at February 24, 2014 as reported in Technical Report on the Updated Mineral Resource Estimate for the Juby Gold Project, Tyrrell Township, Shining Tree Area, Ontario, dated February 24, 2014. Fenn-Gib Mineral Resources at November 17, 2011 as reported in Fenn-Gib Resource Estimate Technical Report, Timmins Canada, dated November 17, 2011.

Qualified Person Statement Technical information in this presentation has been approved by Tahoe’s Vice President Technical Services, Charles Muerhoff, a Qualified Person as defined by NI 43-101.

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