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THEMATIC RESEARCH

October 11, 2

GOLD/COPPER DEPOSITS "The New Darlings"

The purpose of this report is to review the major gold/copper deposits

around the world as these assets have become "in vogue." Gold companies

are looking to acquire these types of deposits as they provide exposure to

gold (and significant size to reserves and resources), add to mine life as

they generally have longer mine lives than gold only projects, and also come

with low cash costs (especially if by-product accounting is used with coppe

revenue deducted from the operating costs). Furthermore, these types of

deposits provide gold companies with some commodity diversification.

Turning to these gold/copper deposits, it is important to first highlight that themajority are located in Chile, Canada, Australasia and Asia. A closer look a

these deposits shows that their average gold production is in excess of

350,000 oz, with copper production averaging 300 mln pounds per annum

Operating costs are generally under $400/oz for gold (GFMS global cash

cost is currently at $535/oz) or under $0.85/lb for copper. Mine lives of these

deposits are usually greater than 20 years. Capital costs to build these

assets are extensive, commonly more than $2 billion.

These significant deposits are lower grade in nature, with the average gold

grade under 0.5 g/t gold (1.3 g/t gold equivalent) and copper under 0.5% fo

reserves. Looking at the ratio of the gold value to copper value (at current

metal prices of $1,300/oz and $3.50/lb copper), the average for these

deposits is 0.71x for reserves and 0.67x for resources.

The top five senior producers have stated that part of their growth strategy

includes acquiring or adding further exposure to gold/copper deposits. These

companies have already been active in acquiring exposure to these types o

deposits. In general, purchase prices have been about $45/oz for gold

equivalent reserves and $25/oz for gold equivalent resources in 2010 (based

on gold/copper prices at the time of acquisition announcement).

This report focuses on the technical/geological characteristics of these

deposits; however, location, infrastructure support, political jurisdictions and

environmental permitting are also important in determining the ultimate

economic value of these deposits.

All dollar amounts in US$ unless otherwise noted.Industry Rating (Precious Metals): Overweight (NBF Economics & Strategy Group)

Tanya Jakusconek, M.Sc. Applied 416.869.6766 [email protected]

Associate: Joanne van Ballegooie 416.869.6767 [email protected]

Associate: Christopher Martino 416.869.6517 [email protected]

Associate: Greg Chu, CFA 416.869.8042 [email protected]



GOLD/COPPER DEPOSITS "THE NEW DARLINGS" OCTOBER 11, 2010

TANYA JAKUSCONEK 1

TABLE OF CONTENTS

All NBF research mentioned in this document is available at www.nbfinancial.com

THE FRENZY FOR GOLD ASSETS 2

“Gold/Copper Deposits in Vogue” 2

THE LATEST PURCHASES 3

WHAT TO LOOK FOR… 6

CONCLUSION 13




TANYA JAKUSCONEK 2

THE FRENZY FOR GOLD ASSETS

“Gold/Copper Deposits in Vogue”

Gold companies are having a difficult time replacing reserves. This has especially been

the case for the senior gold producers over the last decade. Despite significant dollars

being spent in exploration, fewer and fewer discoveries are being made.

The senior gold companies today, with their significantly higher production levels than a

decade ago, are looking to replace and grow reserves annually. Concurrently, these

companies are attempting to maintain or grow their annual production profiles. Where

pure gold assets were the initial targets, gold companies are now focusing on gold/

copper deposits. The appeal of these deposits is that they not only provide exposure to

gold (with significant gold reserves and resources), have long mine lives (greater than

gold only deposits), the copper exposure also provides companies with lower cash

costs. Furthermore, the copper revenue provides some commodity diversification; with

gold companies generally keeping gold revenues greater than 70% (due to gold assets

being higher valued than non-gold).

Table 2 on page 4 shows the top 40 gold/copper deposits around the world. The table

is divided into producing assets, feasibility stage projects and earlier stage projects. It is

important to first highlight that the majority are located in Chile, Canada, Australasia and

Asia.

A closer look at these deposits shows that the average annual gold production is in

excess of 350,000 oz of gold and 300 mln pounds of copper. Operating costs are

generally under $400/oz for gold (GFMS global cash cost is currently at $535/oz) or

under $0.85/lb for copper. Mine lives of these deposits are greater than 20 years (versus

the average gold mine life of approximately 15 years). Capital costs to build these assets

are extensive, generally more than $2 billion. Looking at this number on a gold

equivalent basis (based on $1,300/oz gold price and $3.50/lb copper price), the average

capital cost is about $85/oz for gold equivalent reserves and $50/oz for gold equivalent

resources.

These significant deposits are lower grade in nature, with the average gold grade under

0.5 g/t gold (1.3 g/t gold equivalent) and copper under 0.5% for reserves. For overall

resources, the average grade is 0.4 g/t gold (1.2 g/t gold equivalent) and copper at

0.43%. Looking at the ratio of the gold value to copper value (at current metal prices of

$1,300/oz gold and $3.50/lb copper), the average for these deposits is 0.71x for reserves

and 0.67x for resources.




TANYA JAKUSCONEK 3

THE LATEST PURCHASES

The main senior producers have stated that part of their growth strategy includes acquiring

or adding further exposure to gold/copper deposits. These include Barrick, Goldcorp,

Newmont, Gold Fields and AngloGold Ashanti.

These companies have already been active in acquiring exposure to these types of deposits.In general, the purchase price has been about $30-$55/oz for gold equivalent reserves

and $20-$40/oz for gold equivalent resources in 2010 (based on gold/copper prices at

time of the acquisition announcement). Some of the acquisitions in this space are

included in Table 1 below.

September 2010: Far Southeast (Philippines) GFI has the right to purchase a 60%

interest in this deposit for a total purchase price of $340 mln (gold price at $1,274/oz

and copper at $3.50/lb at time of announcement). Based on these prices, GFI paid $49/

oz equivalent reserves and $19/oz for equivalent resources.

September 2010: Xietongmen (China) Continental Minerals is being acquired by

Jinchuan for its Xietongmen project for $418 mln or Cdn$432 mln (gold price at $1,274and copper price at $3.50/lb). Based on these prices, Jinchuan paid $49/oz for equivalent

reserves and $17/oz for equivalent resources.

July 2010: Mount Milligan (Canada) Thompson Creek acquired a 100% interest in

the Mount Milligan deposit by acquiring Terrane Metals for $626 mln or Cdn$650 mln

(gold price at $1,208/oz and copper at $3.02/lb). Based on these prices, Thompson

Creek paid $55/oz for equivalent reserves and $42/oz for equivalent resources.

March 2010: Cerro Casale (Chile) Kinross sold its 25% interest in Cerro Casale to

Barrick for $474 mln (gold price $1,119/oz and copper at $3.22/lb). Based on these

prices, ABX paid $47/oz for equivalent reserves and $35/oz for equivalent resources.

January 2010: El Morro (Chile) Goldcorp acquired a 70% interest in the El Morro

deposit from Xstrata for $513 mln (gold price at $1,130/oz and copper at $3.40/lb).

This sale is being contested by Barrick Gold. Based on these prices, G paid $31/oz for

equivalent reserves and $24/oz for equivalent resources.

TABLE 1: PURCHASE PRICE FOR GOLD/COPPER ASSETS

Source: Company reports, NBF

DateProject

Name

Purchase

Price

($ mln)

Interest

(%)

Gold

Price

($/oz)

Copper

price

($/lb)

AuEq Reserve -

company share

(mln oz)

AuEq Resource -

company share

(mln oz)

Purchase Price

per AuEq

Reserve ($/oz)

Purchase Price

per AuEq

Resource ($/oz)

Sep-10 Far Southeast 340 60% 1,274 3.50 6.96 18.10 48.84 18.79

Sep-10 Xietongmen 418 100% 1,274 3.50 8.59 25.07 48.64 16.67Jul-10 Mount Milligan 626 100% 1,208 3.02 11.34 14.89 55.23 42.04

Mar-10 Cerro Casale 474 25% 1,119 3.22 9.98 13.69 47.48 34.63

Jan-10 El Morro 513 70% 1,130 3.40 16.79 21.66 30.56 23.69

Average 46.15 27.16




TANYA JAKUSCONEK 6

WHAT TO LOOK FOR…

On the following pages, we have charted various important characteristics of these gold/

copper deposits that gold companies are likely to focus on when considering acquisition

targets. This includes gold and gold equivalent reserves, overall resources, grade, capital per

ounce to build and gold content value versus copper value. Location, of course, is another

criterion as both political risk (although individual companies hold varying views on politicalrisk and their own political risk profiles) and infrastructure availability play a role.

Environmental permitting is also another parameter of importance when considering the

ultimate economics of a project, but it is hard to quantify. The following can be highlighted:

Based on proven and probable gold reserves, Grasberg stands out as having the largest

gold reserves at more than 70 mln oz. KSM is second at just over 30 mln oz and Cerro

Casale third at more than 20 mln oz.

Based on gold equivalent reserves, Grasberg again stands out with reserves over 200 mln

oz gold. Sarcheshmeh and Los Pelambres have over 50 mln oz of gold equivalent.

Reserve gold grade shows the Far Southeast Project having the highest grade at about

1.5 g/t and Grasberg at 0.86 g/t. The average reserve gold grade is about 0.45 g/t.

Gold equivalent reserve grade shows the Far Southeast having the highest grade at

almost 3.0 g/t. Grasberg is second at 2.7 g/t. The average gold equivalent grade is 1.29

g/t.

Based on overall gold resources (2P, M&I and Inferred), Grasberg again stands out

having the largest gold resources followed by Pebble and KSM.

Based on overall gold equivalent resources (2P, M&I and Inferred), Grasberg is the

largest, followed by Pebble and Oyu Tolgoi.

Resource gold grade shows the Far Southeast project at over 1.6 g/t and Silangan and

Skouries at just over 0.80 g/t. The average resource gold grade is about 0.39 g/t. Gold equivalent resource grade shows the Far Southeast deposit at over 3.0 g/t with the

Silangan deposit the second highest at about 2.36 g/t. The average gold equivalent grade

is about 1.19 g/t.

Looking at the ratio of gold value to copper value in reserves, Boddington stands out at

3.35x, followed by KSM and Cerro Casale. The average gold to copper ratio average is

about 0.71x.

Looking at the ratio of gold value to copper value in the total resource, Boddington

stands out at 3.17x, followed by Snowfield and Caspiche. The average gold to copper

ratio average being about 0.67x.

Looking at the initial capital cost to build a project, the average is about $85/oz gold

equivalent reserve. The highest development cost per equivalent ounce is Golpu, followed

by Schaft Creek.

Looking at the initial capital cost to build a project, the average is about $50/oz gold

equivalent resource. The highest development cost per equivalent ounce is Galore Creek,

followed by Conga both over $100/oz.




TANYA JAKUSCONEK 7

0 50 100 150 200 250

Saindak

Golpu

Red Chris

Xietongmen

SkouriesFar Southeast

Mount Milligan

Aitik

Bingham Canyon

Casino

Schaft Creek

Conga

El Morro

Prosperity

Esperanza

Boddington

Agua Rica

Bozschekul

Batu Hijau

Cerro Casale

Cadia East

KSM

Salobo

Cobre Panama

Los Pelambres

Sarcheshmeh

Grasberg

AuEq Reserves (Mln oz)

0 10 20 30 40 50 60 70 80

Saindak

Golpu

Los Pelambres

Red Chris

Aitik

Xietongmen

Skouries

Esperanza

Bingham Canyon

Cobre Panama

Schaft Creek

Far Southeast

Agua Rica

Mount Milligan

El Morro

Bozschekul

Casino

Batu Hijau

Sarcheshmeh

Prosperity

Conga

Salobo

Cadia East

Boddington

Cerro Casale

KSM

Grasberg

Gold Reserves (Mln oz)

GOLD RESERVE (MLN oz)


GOLD EQUIVALENT RESERVES (MLN oz)





TANYA JAKUSCONEK 8

0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60

Los Pelambres

Cobre Panama

AitikBozschekul

Schaft Creek

Esperanza

Agua Rica

Batu Hijau

Bingham Canyon

Casino

Red Chris

Sarcheshmeh

Mount Milligan

Prosperity

AVERAGE

Salobo

El Morro

Saindak

KSM

Cerro Casale

Cadia East

GolpuXietongmen

Conga

Boddington

Skouries

Grasberg

Far Southeast

Au Grade (g/t)

The average reserve gold

grade is 0.45 g/t

RESERVE GOLD GRADE (g/t)


RESERVE GOLD EQUIVALENT GRADE (g/t)


0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50

Aitik

Casino

Mount Milligan

Schaft Creek

Cobre Panama

Prosperity

Bozschekul

Boddington

Red Chris

KSM

Batu Hijau

Cerro Casale

Bingham Canyon

Conga

Agua Rica

Cadia East

Los Pelambres

Esperanza

AVERAGE

Saindak

Xietongmen

El Morro

Sarcheshmeh

Skouries

Salobo

Golpu

Grasberg

Far Southeast

AuEq Grade (g/t)

The average reserve

gold equivalent grade is

1.29 g/t




TANYA JAKUSCONEK 9

0 20 40 60 80 100 120 140

NamosiEsperanza

Cerro ColoradoCloncurrySilanganSaindak

Kemess NorthXietongmen

Los PelambresMount Milligan

BozschekulBingham

Schaft CreekAitik

SkouriesEl Morro

Galore CreekCasino

Tujuh BukitAgua Rica

SarcheshmehCobre Panama

Batu HijauRed ChrisProsperity

SaloboFrieda River

CongaGolpu

Far SoutheastTampakanCaspiche

Cerro Casale

BoddingtonCadia EastSnowfieldReko Diq

Oyu TolgoiKSM

PebbleGrasberg

Gold Resources (Mln oz)

GOLD RESOURCES (ALL CATEGORIES)


GOLD EQUIVALENT RESOURCES (ALL CATEGORIES)


0 50 100 150 200 250 300 350 400

Kemess North

Mount MilliganSilanganSaindak

SkouriesTujuh BukitXietongmen

Cloncurry

CasinoConga

Prosperity

El MorroFar Southeast

Schaft Creek

BozschekulRed Chris

Aitik

EsperanzaNamosi

Bingham

Galore Creek

GolpuBoddington

CaspicheSnowfield

Batu HijauCerro Casale

Agua RicaSalobo

Sarcheshmeh

Frieda River

Cadia EastCerro Colorado

KSMTampakan

Cobre PanamaReko Diq

Los Pelambres

Oyu TolgoiPebble

Grasberg

AuEq Resources (Mln oz)




TANYA JAKUSCONEK 10

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50

AitikKemess North

CasinoSchaft Creek

Cobre PanamaMount Milligan

SnowfieldCaspiche

BoddingtonProsperity

BozschekulXietongmen

Cerro CasaleKSM

Batu HijauNamosiPebble

Cadia EastAgua RicaEsperanza

Reko DiqConga

Los PelambresBingham

Galore CreekTujuh BukitAVERAGE

CerroRed ChrisTampakanCloncurry

SaindakFrieda River

El MorroSarcheshmeh

SkouriesSaloboGolpu

Grasberg

Oyu TolgoiSilangan

Far Southeast

AuEq Grade (g/t)

The average resource

AuEq grade is 1.19 g/t

0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80

Los PelambresCobre PanamaCerro Colorado

AitikNamosi

EsperanzaSchaft Creek

Agua RicaBozschekul

BinghamReko Diq

TampakanCasino

Batu HijauXietongmen

Galore CreekSarcheshmeh

CloncurryKemess North

PebbleFrieda River

Mount MilliganOyu TolgoiAVERAGEProsperity

Cadia EastRed Chris

El MorroSalobo

CaspicheSaindak

Cerro CasaleTujuh Bukit

SnowfieldKSM

CongaBoddington

GrasbergGolpu

SkouriesSilangan

Far Southeast

Au Grade (g/t)

The average resourcegold grade is 0.39 g/t

RESOURCE GOLD GRADE (g/t)


RESOURCE GOLD EQUIVALENT GRADE (g/t)





TANYA JAKUSCONEK 11

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50

Los Pelambres

Cerro

Cobre Panama

Namosi

Esperanza

Tampakan

Sarcheshmeh

Oyu Tolgoi

Agua Rica

BinghamReko Diq

Frieda River

Cloncurry

Galore Creek

Aitik

Bozschekul

Salobo

Batu Hijau

Schaft Creek

Xietongmen

El Morro

Grasberg

Pebble

Red Chris

Silangan

Golpu

Saindak

Casino

AVERAGE

Skouries

Cadia East

Tujuh Bukit

Prosperity

Mount Milligan

Kemess North

Far Southeast

CongaCerro Casale

KSM

Caspiche

Snowfield

Boddington

The average ratio of gold

value to copper value in

resources is 0.67x

RATIO OF Au VALUE TO Cu VALUE IN RESERVES (X)

Note: the ratio is based on $1300/oz gold and $3.50/lb copper Source: Company reports, NBF

RATIO OF Au VALUE TO Cu VALUE IN TOTAL RESOURCE (X)

Note: the ratio is based on $1300/oz gold and $3.50/lb copper Source: Company reports, NBF

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00

Los Pelambres

Cobre Panama

Sarcheshmeh

Esperanza

Agua Rica

Bingham Canyon

Golpu

Aitik

Bozschekul

Salobo

Batu Hijau

Schaft Creek

Red Chris

El Morro

Grasberg

Saindak

Casino

AVERAGE

Xietongmen

Skouries

Prosperity

Cadia East

Far Southeast

Mount Milligan

Conga

Cerro Casale

KSM

Boddington

The average ratio of gold

value to copper value in

reserves is 0.71x




TANYA JAKUSCONEK 12

0 20 40 60 80 100 120 140

Red Chris

Kemess North

Skouries

Oyu Tolgoi

Reko Diq

Xietongmen

Cadia EastProsperity

Golpu

Salobo

Cobre Panama

Agua Rica

KSM

Frieda River

AVERAGE

Tampakan

Bozschekul

Mount Milligan

Esperanza

Snowfield

Cerro Casale

Casino

El Morro

Schaft CreekConga

Galore Creek

US$/oz

The average CapitalExpenditure per AuEqResource is $50/oz

CAPITAL EXPENDITURES / AuEq oz OF RESERVE ($/oz)


CAPITAL EXPENDITURES / AuEq oz OF RESOURCE ($/oz)


0 50 100 150 200 250

Red Chris

Salobo

Skouries

Prosperity

Cadia East

Bozschekul

KSM

Xietongmen

Agua Rica

Mount Milligan

Cobre Panama

AVERAGE

Casino

Cerro Casale

Esperanza

El Morro

Conga

Schaft Creek

Golpu

US$/oz

The average CaptialExpenditure per AuEqReserve is $85/oz




TANYA JAKUSCONEK 13

CONCLUSION

Many of the senior producers have stated that part of their growth strategy includes

acquiring or adding further exposure to gold/copper deposits. From our analysis the

following can be noted:

Size:Gold companies want large gold reserves and resources.

Target is over 5 mln oz

gold equivalent with the average content value of gold higher than copper.

Grade: Average gold reserve grade in these deposits are 0.45 g/t and about 1.29 g/t

equivalent. On the resource front, it is 0.39 g/t and 1.19 g/t, respectively. We believe

companies are looking at grades above 0.5 g/t on a reserve basis.

Capital Cost: Capital to build these deposits is extensive, generally more than $2 billion.

We think a minimum cost target of at least $100/oz equivalent reserve is required

to build a project.

Acquisition Cost: In this environment, about $45/oz for gold equivalent reserves

is being paid for these assets. Intangible factors are hard to quantify: These include political risk (different

companies have different risk profiles based on the jurisdiction in which they operate).

In general, deposits in Canada, Chile and Australia bode well on the political risk front.

Permitting represents another factor with various deposits facing permitting challenges.

Finally, infrastructure and regional challenges are other factors that individual companies

will need to assess.

In short; the following projects stand out:

Grasberg (Freeport McMoRan Copper & Gold) stands out as one of the worlds

largest gold/copper deposits. Although it contains a lot of gold, its value is greater incopper.

Pebble (Northern Dynasty), KSM (Seabridge) and Oyu Tolgoi (Ivanhoe) deposits

stand out with significant resources. However, the gold equivalent resource grades are

below average for Pebble and KSM. Oyu Tolgoi has more copper value than gold (Rio

Tinto owns about 34% of Ivanhoe). Rio Tinto also owns almost 20% of Northern

Dynasty (Pebble Project).

Overall, the Skouries deposit (European Goldfields) shows well in grade and value of

gold versus copper; and it is of a large size at over 8 mln oz gold equivalent.

Of note, Mount Milligan (Thompson Creek) and Prosperity (Taseko Mines) haveboth sold gold streams to Royal Gold and Franco-Nevada, respectively. As a result they

are less likely to be of interest to gold companies.

Agua Rica (Yamana Gold) has made public statements that it would like to surface

value in its Agua Rica gold/copper project in Argentina. It is open for joint venturing,

sale or partial sale of the asset.

With the recent acquisition of Red Back by Kinross, we believe Kinross will likely sell

its remaining 25% interest in Cerro Casale (joint venture ABX). The likely buyer is

ABX with its right of first refusal.




TANYA JAKUSCONEK 14

Several deposits in British Colombia (Canada) stand out in size. This includes KSM

(Seabridge), Snowfield (Silver Standard Resources), Galore Creek (Nova Gold/

Teck), Schaft Creek (Copper Fox) and Red Chris (Imperial Metals), which are

located within 150km-200km of each other. Infrastructure costs are high.

Casino (Western Copper) is located in the Yukon (about 100 km from White Gold

which was recently acquired by Kinross). Its grade is below average for both gold and

gold equivalent grade (reserve and resources) but average on gold value to copper value.

Caspiche (Exeter) has over 25 mln oz in gold resources and close to 50 mln in gold

equivalent resources. It has a lower than average gold equivalent resource grade but the

project is located close to other company projects (Cerro Casale ABX/K;

Maricunga K).

Tujuh Bukit (Intrepid Mines) deposit is in Indonesia. Its inferred resources show 10

mln oz of gold or 22 mln oz gold equivalent with an above average gold resource grade

and has an average gold equivalent grade. In addition, it has above average gold to

copper value.




TANYA JAKUSCONEK 15

DISCLOSURES

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TANYA JAKUSCONEK 16

ADDITIONAL COMPANY RELATED DISCLOSURES

If a company specific disclosure is not found herein for a listed company, NBF at this time does not provide research coverage

or stock rating for the company in question

CG

In the past 12 months NBF acted as financial advisor, fiscal agent, or underwriter to the company that is the subject of this report andreceived remuneration for its services.

NBF is an indirect wholly owned subsidiary of the National Bank of Canada. From time to time the National Bank of Canada may enter into lending or financia l arrangements with companies that are the subject of NBF Research Reports. At the date of this report, National

Bank of Canada is not a lender to the company which is the subject of this report.

NBF and/or its Affiliates may have a position in the securities mentioned herein and may make purchases and/or sales of these securities

from time to time in the open market or otherwise. On the last day of the month preceding the date of this report, NBF and its Affiliates

held in the aggregate less than 1% of the outstanding shares (of any class of equity securities) of this issuer.

NBF is a Registered Trader on the Toronto Stock Exchange for the company that is the subject of this report. (1)

RGL

In the past 12 months NBF acted as financial advisor, fiscal agent, or underwriter to the company that is the subject of this report and

received remuneration for its services.

NBF is an indirect wholly owned subsidiary of the National Bank of Canada. From time to time the National Bank of Canada may enter

into lending or financia l arrangements with companies that are the subject of NBF Research Reports. At the date of this report, National

Bank of Canada is not a lender to the company which is the subject of this report.


from time to time in the open market or otherwise. On the last day of the month preceding the date of this report, NBF and its Affiliatesheld in the aggregate less than 1% of the outstanding shares (of any class of equity securities) of this issuer. (2)

AEM, FNV

In the past 12 months NBF has not acted as financial advisor, fiscal agent or underwriter for the company that is the subject of this report.

NBF may act in such a capacity in the future and receive, or expect to receive, compensation for such activities. NBF is an indirect wholly

owned subsidiary of the National Bank of Canada. From time to time the National Bank of Canada may enter into lending or financialarrangements with companies that are the subject of NBF Research Reports. At the date of this report, National Bank of Canada is a

lender to the company which is the subject of this report.



held in the aggregate less than 1% of the outstanding shares (of any class of equity securities) of this issuer. (14)

LGG



owned subsidiary of the National Bank of Canada. From time to time the National Bank of Canada may enter into lending or financial

arrangements with companies that are the subject of NBF Research Reports. At the date of this report, National Bank of Canada is not a




held in the aggregate less than 1% of the outstanding shares (of any class of equity securities) of this issuer.

NBF is a Registered Trader on the Toronto Stock Exchange for the company that is the subject of this report. (9)

GOLD,HW, ELD, IMG, RBI, YRI



owned subsidiary of the National Bank of Canada. From time to time the National Bank of Canada may enter into lending or financial

arrangements with companies that are the subject of NBF Research Reports. At the date of this report, National Bank of Canada is not a




held in the aggregate less than 1% of the outstanding shares (of any class of equity securities) of this issuer. (10)



RESEARCH ANALYSTS

METALS & MINING

Senior GoldsTanya Jakusconek 416.869.6766 Associate: Joanne van Ballegooie 416.869.6767 Associate: Christopher Martino 416.869.6517

Junior GoldsTara Hassan 416.869.7118 Associate: Brian Szeto 416. 869.6538

REAL ESTATE & HOSPITALITY

Jimmy Shan 416.869.802 Associate: Tanya Bouchard 416.869.793

Heather Kirk 514.390.786 Associate: Marco Giurleo 514.390.798

SPECIAL SITUATIONS

Hugues Bourgeois 514.879.257 Associate: Frederic Tremblay 514.879.249

Trevor Johnson 416.869.851 Associate: Keegan McCormick 416.869.780

TECHNOLOGY

Clean TechRupert Merer 416.869.8008 Associate: Jeremy Mersereau 416.869.6768

Comm Equipment, Broadband & Wireless

Kris Thompson 416.869.8049 Associate: Manik Verma 416.869.749

Software & IT Services

Kris Thompson 416.869.8049 Associate: Nikhil Thadani 416.869.793

TELECOMMUNICATIONS & CABLE

Greg MacDonald 416.869.6775 Associate: Kevin Krishnaratne 416.869.6585

Ihor Danyliuk 416.869.7522Director of Research

Caroline Jukes, 416.869.8039Administrative Manager

ECONOMICS AND STRATEGYStéfane Marion, 514.879.3781Chief Economist & Strategist

Yanick Desnoyers, 514.879.3140 Assistant Chief Economist

Benoit Mayer-Godin 514-879-2378Quantitative Strategist

Paul-André Pinsonnault, 514.879.3795Senior Fixed Income Economist

Marc Pinsonneault, 514.879.2589Senior Economist

Marco Lettieri, 514.879.3195

Economist Matthieu Arseneau, 514.879.5149Economist

DERIVATIVES & STRUCTURED PRODUCTSPat Chiefalo 416.869.7931 Associate: Daniel Straus 416.869.8020

TECHNICAL ANALYSISDennis Mark 416.869.7427

BIOTECH & PHARMACEUTICALSHari Sambasivam 416.869.7801 Associate: Jing Feng 416.869.6515

ENERGY

Energy ServicesBrian Purdy 403.290.5448 Associate: Ian Thies 403.290.5628

Energy Infrastructure, Pipelines & UtilitiesPatrick Kenny 403.290.5451 Associate: Anthony Sze 403.290.5445 Associate: Scott Russell 403.290.5102

Oil and Gas Seniors/IntergratedsPeter Ogden 403.290.5629 Associate: Steve Murray 403.290.5621

Research Publications

Vanda BrightManager, Publishing Services 416.869.7141

Publishing Associate: Maria Cojan 514.879.5357

National Bank Financial (the Firm) is an indirect wholly owned subsidiary of National Bank of Canada.The particulars contained herein were obtained from sources which we believe reliable but are not guaranteed by us and may be incomplete. The opinions expressed are based upon our analysis andinterpretation of these particulars and are not to be construed as a solicitation or off er to buy or sell t he securities mentioned herein. The Firm may act as financial advisor, fiscal agent or underwriterfor certain of the companies mentioned herein and may receive a remuneration for its services. The Firm and/or its officers, directors, representatives, associates, may have a position in the securitiesmentioned herein and may make purchases and/or sales of these securities from time to time in the open market or otherwise.To U.S. residents: NBF Securities (USA) Corp., an affiliate of the Firm, accepts responsibility for the contents of this report, subject to any terms set out above. Any U.S. person wishing to effecttransactions in any security discussed herein should do so only through NBF Securities (USA) Corp.This report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever nor may the information, opinions or conclusions contained in it bereferred to without in each case the prior express consent of National Bank Financial.

Oil and GasGrant Hofer 403.290.5436 Associate: Dale Lewko 403.290.5446

Dan Payne 403.290.5441

Matthew Taylor 403.290.5625

Oil and Gas Intermediates/TrustsMenal Patel 403.290.5622 Associate: Jeremy McCrea 403.290.5627 Associate: Gilbert Bong 403.290.5624

FERTILIZERS

Hari Sambasivam 416.869.7801 Associate: Jing Feng 416.869.6515

FINANCIAL SERVICES

Banking & InsurancePeter Routledge 416.869.7442 Associate: Grant Connor 416.869.6420

Diversified FinancialsShubha Rahman Khan 416.869.6425 Associate: Sunny Singh 416.869.8045

INFRASTRUCTURE AND ENGINEERING

Benoit Caron 514.879.5230 Associate: Andrew Moussa 514.879.2543

COMMUNICATIONS & MEDIA

Adam Shine 514.879.2302 Associate: Peter Stusio 514.879.2564

MERCHANDISING & CONSUMER PRODUCTS

James Durran 416.869.7930 Associate: Robert McKee 416.869.7572 Associate: Hussein Sunderji 416.869.7116

Marie-Noël KorcazFrench Translation 514.879.2492

Zuhair (Kash) KashmeriChief Research Editor 416.869.7535



Arborg315 Main StreetArborg MB R0A 2A0204.376.2673

Baie-Comeau337, boulevard LasalleBaie-Comeau QC G4Z 2Z1418.296.8838

Beauce11505, 1re Avenue estBureau 100St-Georges de Beauce QCG5Y 7X3418.227.0121

BrandonUnit B-1212 18th StreetBrandon MB R7A 5C3204.725.3933

Burnaby206-3815 Sunset StreetBurnaby BC V5G 4W4604.541.8500

CalgarySuite 2800, 450 - 1 St SWCalgary AB T2P 5H1403.531.8400

Chatham380 St. Clair StreetChatham ON N7L 3K2519.351.7645

Chicoutimi1180, boulevard Talbot, Ste 201Chicoutimi QC G7H 4B6418.549.8888

Drumheller365 Centre StreetDrumheller AB T0J 0Y0403.823.6857

Drummondville150, rue Marchand, Bureau 401Drummondville QC J2C 4N1819.477.5024

EdmontonManulife Place10180-101st Street, Ste. 3500Edmonton AB T5J 3S4780.412.6600

Gatineau920 St-Joseph, Bureau 100Gatineau, QC J8Z 1S9

819.770.5337Granby150, rue St-JacquesBureau 202Granby QC J2 G 8V6450.378.0442

Grand-Mère602, 6e AvenueGrand-Mère QC G9T 2H5819.538.8628

Greenfield Park2120, rue Victoria, Bureau 150Greenfield Park QC J4V 1M9450.923.8255

HalifaxPurdys Wharf Tower II1969 Upper Water StreetSuite 1601Halifax NS B3J 3R7902.496.7700

Joliette40, rue Gauthier sudBureau 3500

Joliette QC J6E 4J4450.760.9595

Kelowna1632 Dickson Avenue, Ste 500Kelowna BC V1Y 7T2250.717.5510

Kentville402 Main StreetKentville NS B4N 3X7902.679.0077

Laval2500, boulevard Daniel-JohnsonBureau 610Laval QC H7T 2P6450.686.5700

Lethbridge404, 6th Street SouthLethbridge AB T1J 2C9403.388.1900

London333 Dufferin AvenueLondon ON N 6B 1Z3519.439.6228

Longueuil101, boulevard Roland-TherrienBureau 100Longueuil QC J4 H 4B9450.646.9900

Medicine Hat548 2nd Street SEMedicine Hat AB T1A 0C6403.488.5695

Mississauga350 Burnhamthorpe Road WestSuite 603,Mississauga ON L5B 3J1905.272.2799

Moncton735 Main Street, Suite 300Moncton NB E1C 1E5506.857.9926

Montréal1, Place Ville-Marie, Bureau1805Montréal QC H3B 4A9514.879.5200514.871.9000

1, Place Ville-MarieBureau 2201Montréal QC H 3B 3M4514.879.2509

Édifice Sun Life1155, rue MetcalfeMontréal QC H3B 4S9514.879.2222

Mont-St-Hilaire279, boul. Laurier Mont-St-Hilaire QC J3H 3N8450.467.4770

North Bay680 Cassells Street, Suite 101North Bay ON P1B 4A2705.476.6360

Oak Bay211-2186 Avenue Oak BayVictoria BC V8R 1G3250.953.8400

OttawaMetLife Centre50 OConnor StreetSuite 1602Ottawa ON K1P 6L2613.236.0103

360 Albert Street,Suite 1020Ottawa ON K1R 7X7613.235.3303

Penticton305 - 399, Main StreetCity Center BuildingPenticton BC V2A 5B7250.487.2600

Pointe-Claire1, rue Holiday, Tour estBureau 145Pointe-Claire QC H9R 5N3514.426.2522

Portage La Prairie2 - 602, Saskatchewan Ave E.Portage la Prairie MB R1N 0K5204.857.4749

Québec900, boul. René Lévesque estBureau 640Québec QC G1R 2B5418.649.2525

5500, boul. des Galeries,bureau 105Québec QC G2K 2E2418.627.5777

Québec - Everest2875, boul. Laurier Bureau A 515Québec QC G1V 2M2418.651.0680

Repentigny534, rue Notre-DameBureau 201Repentigny QC J6A 2T8450.582.7001

Rimouski180, rue des GouverneursBureau 004Rimouski QC G5L 8GL418.721.6767

Rivière-du-Loup10, rue BeaubienRivière-du-Loup QCG5R 1H7418.867.7900

Saskatoon410-22nd Street EastSuite 420Saskatoon SK S7K 5T6306.683.1400

Sherbrooke455, rue King ouestBureau 600Sherbrooke QC J1H 6E9819.566.7212

Sidney2537, Beacon Ave. Suite 205Sidney BC V8L 1Y3

250.657.2200Sorel26, Pl. Charles-de-MontmagnySorel QC J3P 7E3450.743.8474

St-Bruno1307, rue RobervalSt-Bruno QC J3V 5J1(450) 441-3300

St-Hyacinthe1355, rue Johnson Ouest, Ste 4100St-Hyacinthe QC J2S 8W7450.774.5354

Ste-FoyPlace de la Cité2600, boulevard Laurier, Ste 700Ste-Foy QC G1V 4W2418.654.2323

St-Lambert - Everest594, rue Victoria, 1er étageSt-Lambert QC J4P 2J6450.465.1393

St-Sauveur-des-Monts11, rue Robert,St-Sauveur-des-Monts QC J0R 1R6450.227.2777

Steinbach102-344 Main StreetSteinbach MB R5G 1Z1204.320.9536

Sudbury10 Elm Street, 5th Floor Sudbury ON P3C 1S8705.671.1160

TorontoThe Exchange Tower 130 King St. W., 4th Floor Podium,Toronto, Ontario M5X 1J9416.869.3707

121 King Street WestSuite 600

Toronto ON M5H 3T9416.865.7400

The Exchange Tower 130 King Street WestSuite 3030Toronto ON M5X 1J9416.869.8840

Toronto - Aquilon280 King Street EastToronto ON M5A1K7416.363.3050

Trois-Rivières7200, rue MarionTrois-Rivières QC G9A 0A5819.379.0000

Val d’Or647, 3e AvenueVal dOr QC J9P 1S7819.824.3687

VancouverPark Place666 Burrard Street, Suite 3300Vancouver BC V6C 2X8

604.623.6777Vernon3100 - 30th Avenue, Suite 101Vernon BC V1T 2C2250.260.4580

Victoria700-737 Yates StreetVictoria BC V8W 1L6250.953.8400

Victoriaville650, rue Jutras EstBureau 150Victoriaville QC G6S 1E1819.758.3191

WaterlooAllen Square180 King Street SouthSuite 340Waterloo ON N2J 1P8519.742.9991

Whistler8649 Forest Ridge Drive RR8Whistler BC V0N 1B8604.649.4510

White Rock1688 - 152nd StreetSuite 108South Surrey BC V4A 4N2604.541.4925

Windsor1 Riverside Drive WestSuite 600Windsor ON N9A 5K3519.258.5810

Winnipeg801-400 St. Mary AvenueWinnipeg MB R3C 4K5204.946.0297

International New York65 East 55th Street, 31st Floor New York, NY 10022Tel.: 212.632.8610

London (NBF Securities UK)(Regulated by The Financial Services Authority)71 Fenchurch Street, 11th floor London, England EC3M 4HDTel.: 44 (0) 20.7680.9370

Geneva (NBF INTERNATIONAL S.A.)15 rue du Cendrier CH-1201 Geneva, SwitzerlandTel.: 41.22.716.4747

Member Investment Dealers Association of Canada Canadian Investor Protection Fund

Winnipeg Commodities Exchange Securities Industry Association

Montreal Exchange Toronto Stock Exchange

National Bank of CanadaFinancial Inc.

New York65 East 55th Street, 34th Floor New York, NY 10022Tel.: 212.546.7500

Boston1 Federal Street, 25th Floor Boston, MA 02110Tel.: 617.357.5757

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