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TSUMEB SMELTER SITE VISITFebruary 10, 2016

Can we put picture of the Ausmelt!

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FORWARD LOOKING STATEMENTS

This presentation contains “forward looking information” or "forward looking statements" that involve a number of risks and uncertainties.Forward looking information and forward looking statements include, but are not limited to, statements with respect to the future prices ofgold and other metals, the estimation of mineral reserves and resources, the realization of mineral estimates, the timing and amount ofestimated future production and output, costs of production, capital expenditures (including sustaining capex, non-discretionary capexand discretionary capex), costs and timing of the development of new deposits, success of exploration activities, permitting time lines,currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipatedreclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation.Often, but not always, forward looking statements can be identified by the use of words such as “plans”, “expects”, or “does not expect”,“is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, or variationsof such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or beachieved. Forward looking statements are based on the opinions and estimates of management as of the date such statements aremade, and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance orachievements of the Company to be materially different from any other future results, performance or achievements expressed or impliedby the forward looking statements. Such factors include, among others: the actual results of current exploration activities; actual results ofcurrent reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; futureprices of gold; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated;accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in thecompletion of development or construction activities, fluctuations in metal prices, as well as those risk factors discussed or referred to inthis presentation under and in the Company’s annual information form under the heading "Risk Factors" and other documents filed fromtime to time with the securities regulatory authorities in all provinces and territories of Canada and available at www.sedar.com. Althoughthe Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from thosedescribed in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimatedor intended. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future eventscould differ materially from those anticipated in such statements. Accordingly, readers are cautioned not to place undue reliance onforward looking statements.

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SAFETY

• Best Smelter safety record ever achieved in 2015 (AIFR & LTIFR).

• Good trend on safety performance for all sites comparing well to North American metrics.

• The next Phase is to focus more specifically on behavioral safety to prevent the performance from flattening out.

3.14 3.07

2.16

1.52

1.15

0.65 0.69 0.66

0.45 0.43

0.00 0.05 0.120.27 0.20

2.492.34

1.37

0.800.52

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2011 2012 2013 2014 2015

DPM – Frequency Rate Results

AIFR

LTIFR

RWDIFR

MTIFR

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DPM’S GLOBAL PORTFOLIO OF ASSETS

Krumovgrad 100%

Chelopech 100%

Kapan 100%

Sabina 12%

Avala 50.14%

Tsumeb Smelter 100%

Operating assets

Development assets

Exploration assets

Chelopech Mine, Bulgaria

• Ownership: 100%

• Stage: Producing

• Mine Life: 10 + years

• 2015 Production: 153 koz Au; 39.7 Mlbs Cu

Kapan Mine, Armenia

• Ownership: 100%

• Stage: Producing

• Mine Life: 9 + years

• 2015 Production: 25 koz Au; 2.7 Mlbs Cu

Tsumeb Smelter, Namibia

• Ownership: 100%

• Stage: Expanding

• Technology: Ausmelt

• 2015 Concentrate Smelted: 196,107 tonnes

Krumovgrad Project, Bulgaria

• Ownership: 100%

• Stage: Detailed Design

• Mine Life: 8 years

• Production: H2 2018

• Avg. Production: 85.7 koz Au/yr

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2015 EBITDA Generation

DIVERSE PORTFOLIO OF ASSETS IN PRO MINING JURISDICTIONS

2015F Revenue Diversification(as of 2015.Q3)

Sept 2015 Asset Diversification

Bulgaria44% Namibia

45%

Armenia12%

• Credit Rating: Baa2 (Moody’s), BBB- (Fitch), BB+ (S&P)

• Corporate Tax Rate: 10%

• GDP Forecast: +2.0% in 2015, +2.5% in 2016 (IMF)

• Overview:− Bulgaria is a member of the European Union (since

2007)

− Mining industry has grown significantly since 1998 and currently employs ~120,000 Bulgarians in the country

− Bulgaria is the 4th largest gold producer and 6th largest coal producer in Europe

• Credit Rating: Baa3 (Moody’s), BBB- (Fitch), NR (S&P)

• Corporate Tax Rate: 0% as Tsumeb has been granted Export Processing Zone status

• GDP Forecast: +4.5% in 2015, +4.6% in 2016 (IMF)

• Overview:

− Ranked as Africa’s most attractive country on Fraser Institute’s Investment Attractiveness Index (ranked #10 globally)

− World’s 5th largest producer of uranium and 9th largest producer of diamonds

− Mining companies in the country include Glencore, Rio Tinto, Anglo American, Paladin Energy, etc.

• Credit Rating: Ba3 (Moody’s), B+ (Fitch), NR (S&P)

• Corporate Tax Rate: 20%

• GDP Forecast: +3.5% in 2015, +3.7% in 2016 (IMF)

Smelter21%

Gold48%

Copper25%

Silver and Zinc 6%

Tsumeb8%

Kapan4%

Chelopech88%

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FOCUS ON BECOMING A MID TIER GOLD PRODUCER

Optimize Existing Operations

Execute New Growth Projects

Establish Growth Pipeline Through Exploration and M&A

• Build Krumovgrad Gold Project

Maintain a Solid Balance Sheet and Low-Cost Position

Conceptual Illustration of Krumovgrad Gold Project

Newly commissioned acid plant at Tsumeb

Kapan Underground

• Generate brownfield and greenfield exploration opportunities

• Mining operations

• Pursue margin/cost improvement opportunities

• Extend life of existing mines through exploration

• Deliver sustained operating improvements at Kapan to support underground expansion

• Tsumeb smelter

• Robust Cash flow through the price cycles.

• Increase margins through higher throughput and cost improvements

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137151 153

46 44 40

230

293314

2013 2014 2015

Au (Koz)

Cu (Mlbs)

$ cost/oz Au sold

$cost/T ore processed

CHELOPECH MINEPRODUCTION PROFILE AT LOW COST

Outlook Production and Cost Profile

Asset Overview

• Maintain low cost operations

• Perform targeted exploration to replace depletion and maintain mineral reserves

• Continue to implement cost/margin improvements

• Increase ore throughput

Location Grade

Reserves(at Dec 31, 2014)

Gold (Moz)

(3.14 g/t) 2.3

Copper (Mlbs)

(0.93%) 467

Mine Type Underground

Deposit TypeHigh

sulphidation epithermal

Estimated Mine Life 10+ years

2015 Adjusted EBITDA (US$) 101 M

Payable Au in pyrite sold (Koz)

Value

• Quadrupled ore production to 2 mtpa andachieved one of the lowest cost underground Auand Cu mines, globally

• Pyrite gold project has improved Au recoveries by25-35% increasing overall gold recoveries toconcentrates to between 70 and 80%

• Continually extending LOM by replacing minedreserves through exploration programs

40.08 39.90 36.46

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KAPAN MINE: OPTIMIZING THE ASSET

24 21 25

2 2.7

964863

709

2013 2014 2015

Production and Cost Profile

Au (Koz)Cu (Mlbs)$ cost/oz Au sold

• Continued improvements to ground control practices

• Progress improvements in mine and mill production

• Changes in mine and maintenance management

• Focus on operational improvements and cost reductions

• Favourable PEA adds to organic growth potential for underground expansion to 1 Mtpa of run of mine material

Outlook

Asset Overview

Location Grade Metal content

Resources

Indicated(at Dec. 31, 2014)

Gold 2.90g/t 0.418 Moz

Copper 0.49% 49 Mlbs

Resources

Inferred(at Dec. 31, 2014)

Gold 2.55 g/t 0.934 Moz

Copper 0.50% 137 Mlbs

Mine Type Underground

Deposit TypePolymetallic vein

(Au, Cu, Ag, Zn)

Estimated Mine Life 9+ years

2015 Adjusted EBITDA (US$) 4.9 M

Tonnes mined 7.6 Mt

Gold 2.44 g/t

Silver 37.60 g/t

Copper 0.33%

Zinc 1.00%

Cash cost per oz of Au sold, net of by-product credits

US$336/oz

Total Net Revenue US$874.7M

Site EBITDA US$417.1M

Average Annual EBITDA US$52.1M

NPV @ 5% Discount US$141.7M

Total Expansion Capital US$30.1M

Kapan Expansion PEA Project Summary

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Conceptual Illustration of Krumovgrad Gold Project

KRUMOVGRAD GOLD PROJECT: POTENTIAL HIGH RETURN PROJECT

Deposit TypeLow sulphidation epithermal

Au

Proposed Mine Type Open Pit

Gold Recoveries 85%

Gold Grade 4.04 g/t

Annual ore tonnage production 775,500 tpy

Annual gold production 85,700 ounces

Mine Life 8 years

Capital Costs to complete ~US$164 m

Total cash cost per oz.AuEq $389

Construction / Production 2016 / 2018

Average Annual EBITDA $64.9 M

After-Tax NPV @ 7.5% $143.9 M

IRR 26%

• Secure final local approvals required to proceed to construction

• Land re-designation; Land purchase; Approval of technical packages

• Expect receipt of construction permit in H1 2016

• Estimated commercial production in the late 2018

Project Economics

Value

Outlook

• Adds to the organic growth potential

• Low capital and low operating costs

• Best practices allow us to maintain our social license

Sensitivity Analysis*

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Source: Brook Hunt – Wood Mackenzie, Company filings, DPM estimates

Estimated Capacity for Complex Material  

Horne SmelterOperated by XstrataCapacity: ~50kt

Tsumeb SmelterOperated by Dundee Precious MetalsCapacity: 240kt

Operating Smelters – Require Blending

Closed Smelters

La Oroya SmelterShut down in 2010

Kosaka SmelterShut down in Q1 2008

San Luis de Potosi SmelterShut down in 2012

XGC SmelterCapacity: ~60kt

AltonorteOperated by XstrataCapacity: ~50kt

TSUMEB – A STRATEGIC ASSET

• Purchased to secure processing of Chelopech concentrate

• Limited global capacity to process complex concentrate

• 0.5% arsenic import limit in China requires blending (at current levels blending would exceed 10:1)

• Tsumeb is the only specialty smelter that can handle large volumes of high arsenic concentrate without blending

• Assessing potential to expand smelter to 370,000 tpy to process additional 3rd

party concentrate

Ausmelt Offgas Bag-House Ausmelt Scrubber Area Heat Exchangers and converterAcid storage tanks

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TSUMEB SMELTER TOURFebruary 10, 2016

OPERATIONS HISTORY AND REVIEW

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• Built in 1960-62. Commissioned 1963.

• Designed to treat complex ores from TsumebMine containing high levels of copper, lead, zinc, arsenic and cadmium.

• Environmental and health challenges during ‘80s and ‘90s; Pb, As and SO₂ emissions above international standards for years.

• New furnace (Ausmelt) built and commissioned in 1996 to treat Lead.

• Namibia’s copper mines closed in 2008.

• Ausmelt re-commissioned 2008 for Copper treatment.

• DPM purchased the Smelter from Weatherly Mining in March 2010.

• Production capacity increased from 147,000 t concentrate in 2010 to a current capacity of 240,000 tpa.

STATUS UPON ACQUISITION

DPM Ownership 100%

Location Namibia

Acquisition March 2010 $50M

Technology / Product Ausmelt

Product Blister copper

Emissions, dust-capture upgrades $110 M

2015 concentrate throughput 196 000 t

Sulphuric acid capture plant ~$243 million

Expanding smelter capacity 370 ktpy

Old converters

Old reverb furnace (till Q3’2013)

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COPPER SMELTING OVERVIEW

Feed preparation

Offgascleaning

As2O3

production

Slag millingCopper making

(converting)

Concentrate

Reverts

Fluxes

Fuels

Cu Dusts

Matte55% CuSlag

2.5% Cu

Feed20% Cu

Offgas

Dust

Copper98.5% Cu

Sulphuric acid plant SO2H2SO4

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Secondaries200t/d15% Cu

Copper160t98.5% Cu

Matte

Concentrate700t/d23% Cu

Secondaries100t/d15% Cu

Concentrate800t/d23% Cu

Secondaries100t15% Cu

Cur

rent

With

New

Con

vert

ers

TSUMEB – RESOLVING CONVERTER CONSTRAINTS

Copper180t98.5% Cu

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• Acid Plant Construction

• This project will reduce sulphurdioxide emissions by >98%

• Illustration of Completed Acid Plant and Smelter Complex

• Sulphur dioxide emissions will be captured and converted to sulphuricacid, which will be sold in the local market

ACID PLANT - A SIGNIFICANT ENVIRONMENTAL UPGRADE

The project included:

• Gas Capture and conversion to H2SO4

• Environmental systems upgrade

• High Efficiency Scrubbing

• Dispatch by rail and road

• Water reclamation

• Pearce-Smith Converter Replacement

• Operational readiness

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ACID PLANT SIMPLIFIED PROCESS

Process Gases

Drying Tower Converter AbsorptionTower

Clean & Dry SO2

Conversion of SO2 to SO3

SO3

SulphuricAcid Product (98%) 

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SMELTER Business Proposition

Enablers

Additional discretionary upgrades to increase capacity and lower costs

• Successful occupational exposure controls with hygiene installations

• New dust management systems

• Acid Plant and Copper Converter Installations Curb SO2 emissions

• Oxygen and Acid Plant capacity installed for 370kt/a Smelting rate

• Installation of upgraded Ausmelt Cooling

• Installation of a Rotary Holding Furnace to release operational constraints with Continuous Ausmelt and Batch Copper Converters.

• Robust Cash flow generation through the commodity cycle (TC vs price linked).

• Able to Treat high Arsenic concentrates directly vs blended

Ongoing Activities

TRANSFORMATION OF A UNIQUE SMELTER EQUIPPED TO TREAT COMPLEX COPPER CONCENTRATES

• PFS Completed in 2015 for the Rotary Holding Furnace

• FS commenced in January

• Optimization of existing facilities

Value Proposition

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Bulk Smelting Market

• Global copper concentrate sales have transparent benchmarks.

• These typically range from $90 to 130/t between contract and spot tonnage.

• Contract durations are normally 1-year and therefore negotiated annually.

• Concentrates need to be free of deleterious materials or face being rejected or attract penalties.

• Treating complex elements requires blending with clean concentrates.

TREATMENT AND PENALTY CHARGES

0 1 2 3 4 5 6 7

rev

enu

e s

ens

itiv

ity

to m

eta

l p

ric

es

periods

minesmeltersmelter with metal gain

for illustration purposes

Complex Concentrates Market

• Tsumeb is a niche complex concentrate treatment facility with core arsenic capability.

• Multi-year agreements attract premiums to the clean market of $30 to $50/t.

• Thresholds for core arsenic penalties vary but generally start above 0.5%

• Charges are on a $ per 0.1% increment over 0.5%.

• In some cases the $ per 0.1% penalty will increase as the arsenic level increases.

• Additional Penalties possible - Lead, Zinc, Se, Te, Bi, moisture, etc.

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TSUMEB: Smelting Performance

198 196

215-250

320-370

120

180

159 152

268

293

374

433

351

377

2010 2011 2012 2013 2014 2015 2016F 2020F

• Until Q3 2013 the smelter had 2 furnaces.

• Decommissioning of the Reverb furnace in 2013 significantly curbed emissions but exacerbated in-process inventories.

• EBITDA of $18.3M in 2014 was reduced to $8.7M in 2015 as a consequence of inefficiencies during construction and transitioning to a Toll Smelter.

• Completion of construction is expected to debottleneck production and improve EBITDA.

• Opportunities include improving smelter availability and reducing in-process recycles.

Context

Anticipated Future Capacity

Ausmelt Furnace Availability

Third Party con supplied to smelter (000s)

Chelopech concentrate supplied to smelter (000s)

Cash cost per tonne of concentrate smelted

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15

(%)

Furnace Availability

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OPERATIONAL EXPENSES & EBITDA OPPORTUNITY

Fixed cost Variable cost

8,820

6,108

9,281

6,200

10,284

12,000

4,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2011 2012 2013 2014 2015 2016(guidance)

tho

us

an

d U

SD

Capital expenditures - Sustaining

17,051

56,926

130,528121,148

30,058

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2011 2012 2013 2014 2015

tho

us

an

d U

SD

Capital expenditures - Growth

• The smelter fixed costs are current about 78% of the total

• There remains significant upside from optimization within 215-250kt targeted for 2015 (a 10% to 28% increase in smelting) and further potential to 265kt (a 30% increase) before running into Aisle logistics constraints.

• At the same time only $4M growth capital remains to spend in 2016 of the $350M for the acid plant, converter and occupational exposure controls.

• Sustaining capital is expected to continue at an estimated $12M rate going forward.

Financial Impact of increasing Efficiency

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Mobile EquipmentGateway

UG Crusher&ConveyorsOther UG Fixed Plant Process Control

Mining Execution Management(CMCS)

Technical Services(Design Planning, Survey, MRM, etc.)

Maintenance Management(CMMS)

Materials Mgt /Inbound Logistics

Collision avoidance

Access Control/ Time & Attendance

Operations Information Management(Reporting, Performance Management, Analysis)

Central Blasting

Mobile Equipment(Unit Automation)

Personnel Tracking

Asset Tracking

Fuel & Lubricant Dispensing

BusinessIntelligence

Operations Control / Asset Management

ProductionControl

EquipmentIntelligence

Business Planning Systems (ERP)

Min

ing

Op

era

tion

sM

ana

ge

men

t

TelecommunicationInfrastructure

Enterprise Resource Planning (ERP)

Wireless Communication Network

Mobile Personal Communication Devices

Wired Communication Devices

Mobile Personal Communication Devices

In place Partially in place Not in place

Management Operating Model

Differentiating DPM with management practices

• Chelopech is the prime example of successful change between the 2003 purchase and the current operation.

• That change included the introduction of new management practices and specifically better planning and scheduling of activities.

• This forms the core of our current “operational excellence” activity

• We are currently implementing our work management practices at Tsumeb with good success

• We have similarly seen success at Kapan with Capital Development rates

• These activities together with our organizational development practices improve productivity, costs and efficiencies

• Progressing this across the organization increases our capacity to implement at other or new sites

27,990 24,720

36,877

45,221

-

10,000

20,000

30,000

40,000

50,000

2012 2013 2014 2015

ton

ne

s b

lis

ter

Blister produced

TSUMEB SMELTER TOURFebruary 10, 2016

SUSTAINABILITYGovernment relations, environment, health and community relations

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• About 500 permanent employees - 98% Namibian nationals.

• Additionally, about 350 contract employees currently employed (over 1,600 at peak of project work)

• 76% of manager & above levels held by Namibian nationals

• 2.9% of gross wage costs spent on training & development

• 80% of discretionary spending on goods & services awarded to Namibian suppliers in 2015

• Preferential procurement strategy being developed to support development of local businesses.

• NAD12 million invested in community since 2010 through independent Community Trust – focus areas = education, social services, small-medium sized enterprises (SMEs)

• Over 80 SMEs funded, providing employment throughout community

• NAD15 million spent to build employee-owned affordable housing in partnership with NHE – 67 houses built-to-date and an additional 50 to be built in 2016- 2017

ECONOMIC IMPACT BEYOND SMELTER GATE

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• Current Impact monitoring –Five Air Quality Stations, US EPA certified

– Dust and Arsenic (As2O3) measurements are within international limits

– SO2

• Groundwater

• Surface water

• Legacy Soil contamination

• Biodiversity & ecological indicators

– Small mammal sampling as indicators of environmental health

• Phytoremediation

• Fruit and vegetable quality

ENVIRONMENT SUMMARYCONTROL & MONITORING

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• Entire workforce biological monitoring, Arsenic (As), Lead (Pb) trends, and general occupational health metrics

• Assess, track and treat minor exposures such as dermatitis and provide general health advice

• Wellness and occupational health programs, full time DPM Tsumeboccupational health specialist

• Annual employee medicals done by external occupational health practitioner

• Integral part of OHS reporting to government

HEALTH SUMMARY

175 178

143151

8973

0

50

100

150

200

2010 2011 2012 2013 2014 2015

g/g

Measuring Arsenic Occupational Exposureall smelter employees

HIV and nutrition workshop

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• Active engagement with media

• Active advisory council at national and local levels

• Fully-staffed information centre in town of Tsumeb

• Regular “town-hall” meetings to update media and community on smelter progress and plans

• Stakeholder grievance mechanisms in place

• Environmental monitoring with real-time data displayed in town and at smelter

• Regular meeting with local municipality and regional governor

STAKEHOLDER ENGAGEMENT & PUBLIC RELATIONS

Employee housing initiative in partnership with NHE

65 houses built in Phase 1 / Phase 2: +100 houses

Stakeholder engagement

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TSUMEB COMMUNITY INVESTMENT

43%

5%14%

5%

Spending Breakdown - Tsumeb CommunityTrust - NAD 12 million since 2010

Education

Arts & Culture

Social Services

SMEs

Other

Nomtsoub Primary –classroom improvements

Great Hope Namibia – Social ServicesSME – Beauty Salon

SME – Solar ovens

33%

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Winding Down Projects:

• Mechanical completion and Hot commissioning of new converters – February 2016

• Demobilization to be completed by April 2016 with site back to normal operations

• Storm water reticulation and road upgrades to commence during 2016

• Contractors camp to be decommissioned during Q2 2016

– Busy investigating future utilization of infrastructure

– Awaiting proposals from different organizations

– Good potential to be developed as an externally operated training facility

Short term:

• Complete converters upgrade.

• Stabilization of the acid plant production.

• Stabilize transportation of the acid at full production.

Industry forum, best practice case study Longer term:

• Optimize Smelter production and productivity utilizing excess capacity built into the oxygen and acid plants.

• Identify Arsenic production options beyond current permitting.

• Continue the partnership with the Government of Namibia and other Stakeholders.

GOING FORWARD

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TSUMEB SMELTER TOURFebruary 10, 2016

Corporate Head Office:One Adelaide Street East, Suite 500

Toronto, Ontario M5C 2V9+1 416 365-5191

TSX:DPM – Common Shares

www.dundeeprecious.com

Thank You