The Weekly Dig January 8, 2016

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Global Markets Stabilize After China Cancels Circuit Breaker

2016 could not have gotten off to a worse start as more turbulence hit Chinese markets through the week. Both the Shanghai and Shenzhen Composite Indices fell heavily, down (↓10%) and (↓14%) respectively, on the back of more disappointing manufacturing data; the Caixin China Purchasing Manager’s Index for December came in at 48.2, representing the 10^th straight month of deterioration in the Country’s manufacturing sector. It all started with the Shanghai Composite index falling 7% on Monday morning, triggering a “circuit breaker” mechanism for the first time; it was the Shanghai Composite’s worst performance in four months. Chinese markets shut down for a second time on Thursday after another 7% fall, following a cut in the value of the Chinese yuan. Global markets followed suit, with the Dow Jones Industrial Average falling 7% this week, while the S&P/TSX Composite fell 4.5%, hitting a 52-week low. Most commodities suffered losses, especially the base metals, with copper hitting a 52-week low to finish just above the $2.00 per pound level, while nickel rose (↑0.7%), and zinc (↓3.14%) and lead (↓7.8%) fell to finish at $3.87, $0.73 and $0.68 per pound respectively. Gold (↑3.8%) regained its safe-haven status, rising to $1,103 on Friday on the back of the market turmoil, growing tensions between Saudi Arabia and Iran, and a fourth nuclear test by North Korea. Oil prices fell sharply, with WTI crude prices touching the $32.13 per barrel level before finishing at $32.92 per barrel. Finally, the UxC Broker Average Price (BAP) of uranium was mostly flat, finishing at $34.50 per pound.

DIGGING IN…

Metals Sector Macro: Global markets stabilize after China cancels circuit breaker.2 Junior Explorer – Weekly Vantage Point: News from the Junior sector this week included drill assay results from Rye Patch Gold’s (RPM-V) Gold Ridge project in Nevada and early stage exploration results from TerraX Mineral’s (TXR-V) Yellowknife City gold project in the Northwest Territories….. ………...3 Haywood Research – The Week in Review: Publications from the Haywood Research team this week included Q4/15 production results from LSG-T, an amended agreement and debt-settlement agreement for TLO-T and an amended senior secured debt facility for TV-T ……….………..6 Market Essentials: 2016 production outlook from Cameco Corp. (CCO-T) for its Cigar Lake Mine in Saskatchewan………..………. ………..…………8 Equity Financings: This Week: 10 equity raises for C$3 million……….10 Weekly Commodities / Indices / Exchange Rates: The S&P/TSX Comp fell during the week, finishing at 12,445, while the S&P/TSX Venture Comp also fell, finishing at 515 this week. ……..……….……...11 Commodities and ETFs: A Week in Action: Gold bucks the trend relative to other metals, rising 3.4% for the week……….. ………..……12 Equities: Weekly Performances: SEMAFO Inc. (SMF-T) up 19% for the …………....14 Comparables Tables: Consensus and Haywood forecasts and multiples, plus market valuations for in situ resources………..17 Important Notice & Disclaimer – Please Read

The Dig is intended to provide general information only and it is written for an institutional audience. It is not a solicitation for the purchase of securities, an offer of securities, or intended as investment research or advice. The information presented, while obtained from sources we believe reliable is not guaranteed against errors or omissions. For Canadian residents: Haywood Securities Inc. is a Canadian registered broker-dealer and a member of the Investment Industry Regulatory Organization of Canada, the Toronto Stock Exchange, the

$1,060

$1,110

1/4 1/8

Gold (US$/oz) Last: $1,103

$14

$15

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Silver (US$/oz) Last: $13.93

$2.00

$2.10

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Copper (US$/lb) Last: $2.02

$36

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WTI Crude (US$/bbl) Last: $32.92

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Metals Sector Macro

Macroeconomic News

United States: The turmoil in global markets (see page 1) this week coincided with the ongoing contraction of the U.S. manufacturing sector, as the U.S. dollar continues to appreciate relative to other currencies. Purchasing Manufacturing Index figures from both the Institute of Supply Management (ISM) and Markit were down in December compared with the month prior, with ISM’s manufacturing index slipping to 48.2 in December from 48.6 in November, indicating the sector is continuing to contract. While Markit’s figures remained above the 50 mark, December’s 51.2 result was well short of the 52.8 recorded in November. This shortfall followed a decline in factory orders in November, which fell 0.2% in November as expected, after the 1.3% increase in October, according to the Department of Commerce. Meanwhile, mortgage applications tumbled this week compared with 2 weeks prior, with the Mortgage Bankers Association indicating a 27% fall during the period. At the same time, the refinance index dropped 37%

from 2 weeks ago, compared with the seasonally adjusted purchase index, which decreased 15% from 2 weeks earlier. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) moved to its highest level since July 2015 and came in at 4.20%. This rate is up from 4.19% last week. On the jobs front this week, private sector employment increased by 257,000 jobs from November to December according to the ADP National Employment Report, well ahead of the expected 194,000, suggesting the jobs market remains robust. The increase coincided with a decrease in the number of jobless claims for the week ending January 2, which fell by 10,000 to 277,000, slightly higher than the expected 275,000, but lower than the previous week’s 287,000 figure. The positive news from the U.S. jobs market continued on Friday, with nonfarm payrolls increasing by 292,000, exceeding forecasts, and followed the 252,000 increase recorded in November while the unemployment rate stayed at 5% in December. Finally, the U.S. trade balance finished lower in November at US$42.4 billion, down 5% from the US$44.6 billion in October; the drop was seen as temporary, however, given the strength of the U.S. dollar.

Canada: Canada’s manufacturing sector continued to contract for the fifth straight month, according to the Royal Bank of Canada (RBC). The bank’s Purchasing Managers’ Index fell to a seasonally adjusted 47.5 in December from 48.6 in November. Canada’s unemployment rate remained unchanged at 7.1% for December, while the net change in employment increased by 22,800 jobs, exceeding the 8,000 jobs expected.

Europe: Consumer prices in the eurozone rose slower than expected in December, further signs that the European Central Bank is still finding it difficult to boost inflation. The European Union’s statistics agency said on Tuesday that consumer prices in December were 0.2% higher than a year earlier, in line with November’s inflation rate, but weaker than the 0.3% rate expected. In more positive news, economic activity in the eurozone accelerated in December, despite the terrorist attacks in Paris that led to security concerns in the region. Markit provided its Purchasing Managers’ Index for the eurozone, which rose to 54.3 in December from 54.2 in November.

Australia: Australia’s trade balance improved from a deficit of $3.25 billion in October to $2.9 billion in November on the back of a rise in exports of fruit and vegetables, up 146%, while oil seeds and oleaginous fruit jumped 103%. Gold exports declined 15% during the month.

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Junior Explorer: Weekly Vantage Point

News from the Junior sector this week included drill assay results from Rye Patch Gold’s (RPM-V) Gold Ridge project in Nevada and early stage exploration results from TerraX Mineral’s (TXR-V) Yellowknife City gold project in the Northwest Territories

Mining Flashes Other News

 No Mining Flashes this week  Rye Patch Gold Corp. (RPM-V)

 TerraX Minerals Inc. (TXR-V)

Other News

Rye Patch Gold Corp. (RPM-V, $0.15)

Share Price: (52-week high/low: $0.195/$0.11) Daily Average Volume for the Week: 728,973 Market Capitalization: $20.9 million

Shares Outstanding: 144 million Cash: ~$4 million (January 2016) Date of Release: January 6, 2016

Event: Rye Patch Gold released drill assay results from its Gold Ridge project, located along the Oreana trend in Pershing County, Nevada. Gold Ridge is located approximately 2 kilometres west of the Company’s Lincoln Hill oxide-gold project, which has a measured and indicated resource of 29.3 million tonnes grading 0.39 grams per tonne (g/t) gold and 10.88 g/t silver, and an inferred resource of 20.8 million tonnes grading 0.38 g/t gold and 15.36 g/t silver.

Results: The 2,420-metre drill program focused on the northern extension of the north-south-trending structural zone at Gold Ridge, with most holes hitting significant gold-silver mineralization associated with quartz and jasperoid. Highlight intersections include:

 GR-027 that intersected 42.7 metres grading 1.16 g/t gold equivalent (AuEq; 0.92 g/t gold and 14.6 g/t silver) from a downhole depth of 9.1 metres

 GR-032 that intersected 18.3 metres grading 0.91 g/t AuEq (0.62 g/t gold and 17.3 g/t silver) from a downhole depth of 53.3 metres.

Implications: The latest drill results have successfully extended gold-silver mineralization to the north along the north-south-trending ridge. This northern zone now has a strike length of 800 metres, and an apparent association between the presence of quartz-vein fragments and higher gold grades was noted. Gold mineralization along Gold Ridge is structurally controlled, with interbedded limestone and black mudstone folded into an anticline overlying a thrust fault. Mineralization also appears to occur as multiple zones along the west limb of the fold; more drilling is required to determine the geometry and distribution of gold-silver mineralization along the limbs and within the hinge zone of the fold. Rye Patch has approximately $4 million in cash and is waiting for weather conditions to improve before returning to Gold Ridge for further drilling sometime during H1/16.

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TerraX Minerals Inc. (TXR-V, $0.29)

Share Price: (52-week high/low: $0.44/$0.23) Daily Average Volume for the Week: 242,100 Market Capitalization: $20.2 million

Shares Outstanding: 67.5 million

Working Capital: ~$4 million (November 2015) Date of Release: January 5, 2016

Event: TerraX Minerals released final results from its summer surface exploration program at its Yellowknife City gold project in the Northwest Territories. Exploration work focused on the Core Gold Area, which contains the Barney Zone and Crestaurum project.

Results: Rock-chip sampling from several areas within the Core Gold Area returned significant anomalous gold values, highlights of which include the following:

 At the Pinto Structure, rock-chip assay results included 108.00 g/t gold, 65.7 g/t gold, and 35.2 g/t gold from a newly discovered vein 200 metres southeast of Pinto.

 JED (west of Barney Shear) returned rock-chip assay results including 133.5 g/t gold, 30.4 g/t gold, and 20.6 g/t gold.

 At the Ryan Lake Pluton, rock-chip assay results returned polymetallic assays up to 12.35 g/t gold, 45 g/t silver, 3.23 g/t lead, and 1.31 % zinc.

 In addition, structural and alteration mapping identified three new areas that exhibit similar characteristics to the Hebert-Brent area. They include the Hebert-Brent Southern Fault Offset (up to 19.7 g/t gold), Sericite Zone (up to 1.24 g/t gold), and Townsite Formation (up to 6.57 g/t gold, 1.00%

copper, and 25 g/t silver).

Implications: Early stage exploration work by TerraX continues to demonstrate widespread alteration and gold mineralization within the Core Gold Area, and a number of high-priority targets have now been identified that will be followed-up in 2016, in addition to the more advanced early stage projects including the Hebert-Brent Shear target. In addition, TerraX plans on continuing its drill program at Crestaurum in readiness for the anticipated resource estimate due in 2016. Drilling is expected to commence in early 2016.

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Performance of Companies Included in Junior X and Notable News Flow

Source: Capital IQ and Haywood Securities

Key Catalysts for Companies Featured in the Last Junior Exploration Report

Close

Price Market Capitalization

Cash at Quarter

End Weekly Performance QTD Performance

QTD Performance vs. TSXV Index

Company Ticker (C$) (C$M) (C$M)

Junior Exploration Names

Balmoral Resources Ltd TSX:BAR 0.40 49.40 5.61 (7.0)% (7.0)% (4.7)%

Barsele Minerals Corp. TSXV:BME 0.10 10.33 0.70 (13.0)% (13.0)% (10.8)%

Calibre Mining Corp. TSXV:CXB 0.08 17.83 1.02 14.3% 14.3% 16.6%

Columbus Gold Corp. TSXV:CGT 0.36 51.00 4.85 (1.4)% (1.4)% 0.9%

Gold Standard Ventures Corp TSXV:GSV 0.91 159.38 14.72 (4.2)% (4.2)% (1.9)%

Kennady Diamonds Inc. TSXV:KDI 2.81 131.34 14.24 (6.6)% (6.6)% (4.4)%

Marathon Gold Corporation TSX:MOZ 0.15 14.46 2.35 0.0% 0.0% 2.3%

NGEx Resources Inc. TSX:NGQ 0.63 120.14 3.96 (3.1)% (3.1)% (0.8)%

North American Nickel Inc. TSXV:NAN 0.10 20.19 2.53 0.0% 0.0% 2.3%

Plateau Uranium Inc. TSXV:PLU 0.36 15.24 2.28 (4.0)% (4.0)% (1.7)%

Reservoir Minerals Inc. TSXV:RMC 4.10 195.88 10.38 0.5% 0.5% 2.8%

TerraX Minerals Inc. TSXV:TXR 0.29 20.24 4.51 5.5% 5.5% 7.7%

Tinka Resources Ltd. TSXV:TK 0.13 19.47 9.01 8.3% 8.3% 10.6%

Other Companies in the News

Rye Patch Gold Corp. TSXV:RPM 0.15 20.93 4.08 11.5% 11.5% 13.8%

Company Ticker Catalysts

Junior Exploration Names

Balmoral Resources Ltd TSX:BAR • Assay results from summer/fall drilling program

• NI 43-101 compliant resource estimate for Martiniere - Q2/16

• NI 43-101 compliant resource estimate for Martiniere -Q1/16

Barsele Minerals Corp. TSXV:BME • Mobilization of 3-rig drill program underway - results expected from October 2015

Calibre Mining Corp. TSXV:CXB • Exploration results from B2Gold joint venture

• Details on drill program from Centerra joint venture program - starting Q4/15 Columbus Gold Corp. TSXV:CGT • Paul Isnard Project:

Infill drill results - through H1/16 Updated resource estimate - H2/16 FS - Q4/16

• Eastside Project:

Metallurgical results - 2016 Drill results - through 2016

Gold Standard Ventures Corp TSXV:GSV • Bottle-roll metallurgical test results - end Q4/15 - start Q1/16

• Budget of $2.08 million - drilling at Pinion and Dark Star and 5 holes at North Bullion

Kennady Diamonds Inc. TSXV:KDI • Kelvin:

• Maiden resource estimate - Q4/15

• Bulk Sample results (caustic fusion) from Kelvin North Lobe, Faraday 2 qand Faraday 1 - Q4/15

• Start of bulk-sample collection on Kelvin and Faraday Marathon Gold Corporation TSX:MOZ • 10,000 to 12,000 metre drill program

• Updated resource estimate - Q4/15

• PEA - estimated late 2016

NGEx Resources Inc. TSX:NGQ • Updated Los Helados/Josemaria PEA expected H1/16

• Regional exploration results (drilling)

North American Nickel Inc. TSXV:NAN Remaining drill results from Maniitsoz exploration program (Spotty Hill, Imiak Hill and other regional targets_ - H2/15

Orex Minerals Inc. TSXV:REX • Coneto:Maiden resource from JV partner (Fresnillo PLC) and plan for 2016 exploration program

• Sandra Escobar: Initial exploration program to be mobilized in mid-October with drill program expected to commence by end 2015

Plateau Uranium Inc. TSXV:PLU • Updated PEA integrating consolidated resources (Q4/15)

• Results of further metallurgical testwork, and exploration results (2015-2016)

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Haywood Research: The Week in Review

Publications from the Haywood Research team for the week included the following:

 Q4/15 production results from Lake Shore Gold Corp. (LSG-T)

 An amended agreement and debt-settlement agreement for Talon Metals Corp. (TLO-T)

 An amended senior secured debt facility for Trevali Mining Corporation (TV-T)

Radar Flashes

Lake Shore Gold Corp. (LSG-T, $1.30) – Lake Shore Delivers another Good Year

Kerry Smith, MBA, PEng[email protected], Ardem Keshishian[email protected]

Q4/15 production results released…another solid year in line with our forecast - This morning Lake Shore reported Q4/15 production of 42,500 ounces, versus our estimate of 44,800 ounces, slightly lower due to lower grades in one secondary stope which is now mined out. During the fourth quarter, total mill throughput was well above nameplate of 3,000 tonnes per day, averaging 355,600 tonnes (3,897 tonnes per day) at an average grade of 3.9 g/t gold and average recoveries of 96.6%. This mill has consistently exceeded nameplate capacity and continues to operate well. Gold sales during the quarter were 42,000 ounces at an average selling price of US$1,100 ($1,473) per ounce.

2015 production slightly shy of guidance - For 2015, Lake Shore reported production of 178,700 ounces versus our estimate of 181,000 ounces. Total mill throughput averaged 1,307,200 tonnes (3,581 tonnes per day) at an average grade of 4.4 g/t gold, in line with their full year budget and average recoveries of 96.6%. Gold sales for the year were 183,300 ounces at an average selling price of US$1,164 ($1,481) per ounce. The Company's cash and bullion at December 31, 2015 totalled approximately $100.0 million, again in line with our model. Overall the mill continues to perform well above the nominal throughput of 3,000 tonnes per day and based on December throughput of 4,270 tonnes per day, Lake Shore has milling capacity for additional tonnage over time.

See Haywood Securities for the full report

Talon Metals Corp. (TLO-T, $0.13) – Cornerstone Interest Formally Secured in High-Grade Tamarack Nickel Project

Stefan Ioannou, PhD[email protected], Jenny Lemberg[email protected]

The decreased Tamarack interest is underpinned by a similar earn-in cost (including sunk cost and land option payment considerations), now pegged at ~US$25.6 million for 18.45%, versus ~US$41.5 million for 30%. Hence, the restructuring itself is essentially net neutral to the Company ’s fully financed after- tax corporate NAV12% in our model (based on a modelled 100% project interest).

However, Talon will still likely need to raise additional funds to support general working-capital purposes. Given current market conditions, we have decreased our equity-financing price assumptions, adding dilution to our fully financed valuation, in turn prompting a revised target price of $0.25 (from

$0.35).

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We look to ongoing exploration efforts through +2016 to further test Tamarack’s high-grade nickel sulphide potential, which remains open in multiple directions. We also remain intrigued by the intrusion’s (untested) ‘bowl’ geometry to the southeast indicated by geophysics.

Trevali Mining Corporation (TV-T, $0.36) – Senior Secured Debt Facility Amendment Provides Near-Term Lifeline

Stefan Ioannou, PhD[email protected], Jenny Lemberg[email protected]

Trevali has amended (expanded and extended) its $52.5 million senior secured notes debt facility with an additional $8.4 million in new notes and has received a waiver to August 30, 2017, for the Company’s

$7.5 million amortization payment, originally scheduled on August 30, 2016 (increasing total 2017 principal repayments to $15.0 million). The senior notes are underpinned by a 12.5% interest rate and are secured against Trevali’s Canadian assets, which include the Company’s 100% owned Caribou mine in New Brunswick (refer to Radar Screen, December 9, 2015).

6,468,000 warrants issued in connection with the original senior secured note offering (May 2014) have been repriced at $0.475 (a 15% premium to Trevali’s 5-day volume-weighted average price (VWAP) ending December 24, 2015; from $1.260), and the underlying term has been extended to a new 5-year term. In addition, 1,034,880 new 5-year warrants exercisable at $0.475 have also been issued (~2.7%

fully diluted).

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Market Essentials

Companies in the News

 Samarco Mineração SA, the joint venture between BHP Billiton (BHP-ASX) and Vale SA (VALE- NYSE), has started to pay compensation to the victims of the November 2015 tailings dam disaster in Brazil’s Minas Gerais state, where 17 people were killed and 2 remain missing, according to reports. Each family who lost a member is believed to be entitled to 100,000 Brazilian reals as preliminary compensation. Meanwhile, it has also been reported that damage caused by the tailings dam collapse reached 663 kilometres of rivers and resulted in the destruction of 1,469 hectares of vegetation, including permanent preservation areas, according to a preliminary report by the Brazilian Institute of Environment and Renewable Natural Resources. Later in the week, BHP stated that the dam breach at its Brazilian Samarco iron ore joint venture with Vale SA spilled about 32 million cubic meters of sludge into the Rio Doce river — much less than some initial estimates of over 50 million cubic meters.

 Imperial Metals Corp. (III-T) has suspended pit operations at its 50% owned Huckleberry copper mine in British Columbia, affecting some 100 out of the mine’s 260-person workforce. Imperial will retain the balance of its workforce to continue milling stockpiled ore. The news comes despite efforts by the Company to reduce operating costs.

 A feasibility study for the Kaminak Gold Corporation (KAM-V) wholly owned Coffee gold project in Canada’s Yukon Territory outlined a post-tax net present value of C$455 million, at a 5%

discount rate, and an internal rate of return of 37% using a gold price of US$1,150 per ounce and exchange rate of C$1.00 to US$0.78, resulting in a payback period of 2 years after the commencement of first commercial gold production. The study is based on a 10-year mine life, with peak annual production of 228,000 ounces and average annual gold production of 193,000 ounces. A total of 2.157 million ounces at a head grade of 1.45 g/t gold will be mined, with 1.862 million ounces recovered at a rate of 86.3%. The all-in sustaining cost is estimated at US$550 per ounce. The feasibility study proposed four open pits mined by shovel and truck methods at 5 million tonnes per annum. Run-of-mine ore will be crushed and placed onto a heap-leach pad, with gold extracted from the leachate by an adsorption, desorption, and recovery (ADR) carbon plant.

 NGex Resources Inc. (NGQ-T) announced the results of a Preliminary Economic Assessment (PEA) for the Company’s Los Helados and Josemaria (all costs are in $US). Both deposits were assessed as one project and returned a post-tax net present value (8%) of 2.09 billion and an internal rate of return of 14.5% using metal price assumptions including $3.00 per pound copper, $1,275 per ounce gold and 20.00 per ounce silver. The project has a projected mine life of 48 years and an after-tax payback period of 4.6 years. Initial capital expenditure requirements for the project is estimated at $3.08 billion and additional sustaining costs are $1.28 billion. The PEA contemplates sequential production from an open pit mine at Josemaría followed by a block cave, underground mine at Los Helados. The two deposits are located approximately 10 kilometres apart, and material from both deposits would be processed at a centralized facility. Life-of-mine annual metal production is expected to average 150,000 tonnes copper, 180,000 ounces gold and 1.18 million ounces silver over the 48-year mine life.

 Cameco Corp. (CCO-T) announced its 2016 production outlook for its Cigar Lake operation joint venture with AREVA (37.1%), Idemitsu Canada Resources (7.87%), and TEPCO Resources (5.0%).

Cigar Lake, located in Saskatchewan, is expected to produce 16 million pounds of uranium concentrate in 2016, with approximately 8 million pounds attributable to Cameco. The McClean Lake mill’s operating licence has a current annual production limit of 13 million pounds. AREVA

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plans to submit an application to the Canadian Nuclear Safety Commission to increase the mill’s licensed annual production limit.

 First Quantum Minerals Ltd. (FM-T) announced that it intends to lay off 730 workers and may also shelve plans to hire another 360 at its Sentinel copper mine in Zambia, citing insufficient electricity to keep the project operational. Power is in short supply in the country as the water levels at the world’s largest dam reach critical levels, with the power deficit expected to increase to 1,000 megawatts from the current 700 megawatt shortage. Low copper prices, which accounts for more than 70% of Zambia’s exports, as well as a ballooning budget deficit, and the lack of electricity mean the economy may grow at its slowest pace in 17 years in 2016. The kwacha has lost almost half its value against the dollar since January, making it the worst performer out of 155 currencies.

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Completed Equity Financings 2013 to Date (C$ million and average transaction size)

Source: Capital IQ

Announced Equity/Debt Raisings and Streaming Deals for the Week (> $500,000)

Source: Capital IQ and Haywood Securities

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$0

$2,000

$4,000

$6,000

$8,000

$10,000

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Average Size (C$ Million)

Value (C$ Million)

Monthly ($millions) Cumulative ($millions) Average Size ($millions)

Date Company Ticker Value Price 20 Day VWAP

Prem / Disc Details Equity Raisings

7-Jan-16 CB Gold Inc. (TSXV:CBJ) TSXV:CBJ C$1.9 M $0.05 $0.06 (9.3)% 51.7M sh at C$0.05/sh

6-Jan-16 Sojourn Ventures Inc. (TSXV:SOJ) TSXV:SOJ C$1.0 M NA $0.02 NA Best efforts for $1 million

5-Jan-16 Southern Sun Minerals Inc. (TSXV:SSI) TSXV:SSI C$0.8 M $0.05 $0.06 (9.1)% 16M sh at C$0.05/sh plus warr at $0.10/sh for 2 years 4-Jan-16 Southern Arc Minerals Inc. (TSXV:SA) TSXV:SA C$1.0 M $0.24 $0.33 (27.8)% 4.16M sh at C$0.24/sh plus warr at $0.32/sh for 5 years

4-Jan-16 Canadian Orebodies Inc. (TSXV:CO) TSXV:CO C$0.8 M $0.02 NA NA 40M sh at C$0.02/sh

Debt Raisings

No Debt Financings for the week

Premium/discount based on closing price one day prior to announcement Premium/discount based on common shares (where applicable) or quoted security E = equity; D = Debt; sh = shares; FT = flow through; warr = warrant

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Weekly Commodities / Indices / Exchange Rates

Metal and Currency Prices for the Week

Source: Haywood Securities 12,400

12,900

1/4 1/8

S&P/TSX Composite Index

Last: 12,445 130

150

1/4 1/8

S&P/TSX Global Gold Index Last: 141.7

16,400 16,900

1/4 1/8

Dow Jones Industrial Average Last: 16,346

510 520 530

1/4 1/8

S&P/TSX Venture Comp Index Last: 515

58 68

1/4 1/8

S&P/TSX Global Base Metals Index Last: 59.47

1,920 1,970 2,020

1/4 1/8

S&P 500 Index Last: 1,922

Name Close 1Wk Δ % 5 Day Trend 52W H/L 1W H/L

Gold Spot 1,103 42.35 3.84% 1,308 1,109

US$/oz 1,046 1,075

Silver Spot 13.93 0.11 0.80% 18.49 14.31

US$/oz 13.65 13.82

Platinum Spot 879 (12.20) (1.39)% 1,289 891

US$/oz 824 877

Palladium Spot 494 (68.00) (13.76)% 833 562

US$/oz 485 494

Copper Future 2.03 (0.06) (2.79)% 2.94 2.11 US$/lb 2.03 2.03 Nickel Spot 3.87 0.03 0.70% 7.00 3.89 US$/lb 3.70 3.84 Lead Spot 0.73 (0.06) (7.81)% 0.97 0.79 US$/lb 0.70 0.73 Zinc Spot 0.68 (0.02) (3.14)% 1.10 0.71 US$/lb 0.66 0.68 Aluminum Spot 0.67 0.01 2.15% 0.89 0.67 US$/lb 0.65 0.66 Iron Ore Spot 41 1.04 2.56% 140 79

US$/t 78 78

Newcastle Coal 51 0.75 1.48% 67 52

US$/t 50 50

CAAP Coal 43 0.10 0.23% 53 44

US$/t 41 43

Uranium Spot 34.50 0.10 0.29% 37 35

US$/lb 34 34

WTI 33 (4.13) (12.55)% 66 37

US$/bbl 32 33

Brent 33 (3.94) (11.82)% 73 37

US$/bbl 32 33

Henry Hub 2.48 0.14 5.61% 3.62 2.48 US$/MMBtu 1.80 2.27 ENERGYBASE METALSPRECIOUS METALS Name Close 1Wk Δ % 5 Day Trend 52W H/L 1W H/L TSX 12,445 (565) (4.54)% 15,525 12,927 12,432 12,445 TSXV 515 (10.99) (2.14)% 708 526

494 514

Canadian Dollar 1.42 0.03 2.16% 1.42 1.42 1.18 1.39 Euro 1.09 0.01 0.60% 1.19 1.09 1.05 1.07 China Renminbi 6.59 0.10 1.53% 6.60 6.59 6.18 6.52 Mexican Peso 17.95 0.68 3.81% 17.98 17.95 14.44 17.26 Peruvian New Sol 3.43 0.01 0.36% 3.44 3.43 2.98 3.41 S. African Rand 16.31 0.75 4.60% 16.31 16.31 11.26 15.56 Australian Dollar 0.70 (0.03) (4.67)% 0.83 0.73 0.69 0.70 Japanese Yen 117.6 (2.98) (2.53)% 125.9 120.6 115.9 117.6 Chilean Peso 728 19.16 2.63% 728 728

593 714 British Pound 1.45 (0.02) (1.51)% 1.59 1.47

1.45 1.45 Swiss Franc 0.99 (0.01) (0.66)% 1.03 1.01

0.74 0.99

Norwegian Krone 8.87 0.00 0.05% 8.99 8.96

7.29 8.87 Turkish Lira 3.02 0.10 3.34% 3.08 3.02

2.27 2.92 Indian Rupee 66.64 0.50 0.74% 67.13 66.93

61.30 66.14

EXCHANGE RATESINDICIES

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Commodities and ETFS: A Week in Action

Gold - 1-Year US$/oz (left) and Total ETF Holdings (right)

 Spot: Gain (+3.8%) for the week

 ETF Holdings:

47,139,467 ounces, up 149,267 ounces for the week

Silver - 1-Year US$/oz (left) and Total ETF Holdings (right)

 Spot: Gain (+0.8%) for the week

 ETF Holdings:

604,803,816 ounces, down 2,409,390 ounces for the week

Platinum - 1-Year US$/oz (left) and Total ETF Holdings (right)

 Spot: Loss (-1.4%) for the week

 ETF Holdings:

2,385,739 ounces, down 5,852 ounces for the week

Palladium - 1-Year US$/oz (left) and Total ETF Holdings (right)

 ETF Holdings:

2,335,294 ounces, down 9,046 ounces for the week

Copper - 1-Year US$/lb (left) and LME Inventory (right)

 Futures: Loss (-4.7%) for the week

 LME Copper: 236,650 tonnes, up 425 tonnes for the week

Nickel - 1-Year US$/lb (left) and LME Inventory (right)

 LME Nickel: 438,576 tonnes, down 2,718 tonnes for the week

$1,000

$1,100

$1,200

$1,300

$1,400

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16

Gold ($/oz) Price 100D MA

46 47 48 49 50 51 52 53 54 55

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15

Gold ETF Holdings (Moz)

$13.00

$16.00

$19.00

Silver ($/oz) Price 100D MA

600 610 620 630

Silver ETF Holdings (Moz)

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

Platinum ($/oz) Price 100D MA

2.3 2.4 2.5 2.6 2.7 2.8 2.9

Platinum ETF Holdings (Moz)

$530

$580

$630

$680

$730

$780

$830

$880

Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15

Palladium ($/oz) Price 100D MA

2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 3.1 3.2

Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15

Palladium ETF Holdings (Moz)

$2.00

$2.20

$2.40

$2.60

$2.80

$3.00

$3.20

Copper ($/lb) Price 100D MA

130,000 180,000 230,000 280,000 330,000 380,000

LME Copper Inventories (t)

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

$6.50

$7.00

$7.50

$8.00

Nickel ($/lb) Price 100D MA

380,000 390,000 400,000 410,000 420,000 430,000 440,000 450,000 460,000 470,000 480,000

LME Nickel Inventories (t)

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Lead - 1-Year US$/lb (left) and LME Inventory (right)

 LME Lead: 191,175 tonnes, down 475 tonnes for the week

Zinc - 1-Year US$/lb (left) and LME Inventory (right)

 LME Zinc: 455,200 tonnes, down 9,200 tonnes for the week

Iron – 1-Year US$/t 58% Fe (left) and 62% Fe (right)

 58% Fe Ore: Gain (+3.1%) for the week

 62% Fe Ore: Gain (+2.6%) for the week

Thermal Coal – 1-Year US$/t Central Appalachian (left) and Newcastle (right)

 CAPP Futures: Gain (+0.2%) for the week

 Newcastle Thermal Futures: Gain (+1.4%) for the week

Uranium – 1-Year US$/lb Short-Term (left) and Long-Term (right)

 Uranium Spot:

unchanged for the week

 Uranium Long-term:

Unchanged

Source: Bloomberg, UxC Consulting and Haywood Securities

$0.70

$0.75

$0.80

$0.85

$0.90

$0.95

$1.00

Lead ($/lb) Price 100D MA

120,000 140,000 160,000 180,000 200,000 220,000 240,000

LME Lead Inventories (t)

$0.65

$0.70

$0.75

$0.80

$0.85

$0.90

$0.95

$1.00

$1.05

$1.10

$1.15

Zinc ($/lb) Price 100D MA Price

400,000 500,000 600,000 700,000

LME Zinc Inventories (t)

$30

$40

$50

$60

$70

58% Iron Ore ($/t) Price 100D MA

$35

$40

$45

$50

$55

$60

$65

$70

$75

$80

$85

62% Iron Ore ($/t) Price 100D MA

$40

$42

$44

$46

$48

$50

$52

$54

$56

$58

Central App Coal ($/t) Price 100D MA

$35

$40

$45

$50

$55

Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16

Newcastle Coal (AUD/t) Price 100D MA

$33

$38

$43

Uranium Spot ($/lb) Price 100D MA

$44

$48

Uranium Long-Term ($/lb) Price 100D MA