Economics

Casino Project

Based on Feasibility Study - January 2013

PROJECT ECONOMICS	SPOT Dec 2012	LONG TERM
Copper (US$/lb)	3.57	3.00
Gold (US$/oz)	1,658	1,400
Molybdenum (US$/lb)	11.80	14.00
Silver (US$/oz)	29.95	25.00
Foreign Exchange (US$:C$)	1.00	0.95
Mine Capital (C$ M)	2,123
Power Plant (C$ M)	209
Road, Port, Etc. (C$ M)	123
Total Capital Costs (C$ M)	2,456
Pre-Tax NPV @ 5% (C$ M)	5,300	4,430
Pre-Tax NPV @ 8% (C$ M)	3,460	2,820
Pre-Tax IRR (100% equity)(%)	27.1	24.0
After-Tax NPV @ 5% (C$ M)	3,600	2,990
After-Tax NPV @ 8% (C$ M)	2,280	1,830
After-Tax IRR (100% equity)(%)	22.7	20.1
After-Tax Cash Flow (Y1-Y4)(C$ M/y)	757	682
After-Tax Cash Flow (Life of Mine)(C$ M/y)	449	400
Payback (y)	2.6	3.0
Cu Cash Csot (US$/lb)	(0.90)	(0.81)

OPERATING INDICATORS	Y1 to Y4	LOM
Gold Production (k oz/y)	399	266
Copper Production (M lb/y)	245	171
Moly Production (M lb/y)	15.3	15.5
Silver Production (k oz/y)	1,777	1,425
Strip Ratio	0.49	0.59
% of Revenue - Copper (%)	48%	46%
% of Revenue - Gold (%)	37%	34%
% of Revenue - Moly (%)	12%	17%
% of Revenue - Silver (%)	3%	3%
NSR ($/t ore milled)	31.59	22.59
Average Mill Grade CuEq (%)	0.70%	0.50%
Mill Operating Costs (C$/t)	8.52

Notes:

Feasibility Study: M3 Engineering & Technology Corporation. See Technical Report dated 25 January 2013. Qualified Person: Conrad Huss, P.E. of M3 is the qualified person responsible for the scientific and technical information in accordance with NI 43-101.

Metal Prices: Long term metal prices were based on typical analyst projections of long metal prices and $CAN:$US exchange rates.

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