You are on page 1of 32

TSX-V: TREK

JDL Gold and Luna Gold Merger


On the Path to Creating a Leading Mid-Tier Gold Producer
Cautionary Statements
This presentation does not constitute an offering of securities and the information contained herein is subject to the information contained in To the extent any forward-looking statements constitute future-oriented financial information or financial outlooks, as those terms are
the Company's continuous disclosure documents at www.sedar.com. defined under applicable Canadian securities laws, such statements are being provided to describe the current anticipated potential of the
Company and readers are cautioned that these statements may not be appropriate for any other purpose, including investment decisions.
Forward-looking Statements Forward-looking statements speak only as of the date those statements are made. Except as required by applicable law, we assume no
This presentation includes certain statements that constitute "forward-looking statements", and "forward-looking information" within the obligation to update or to publicly announce the results of any change to any forward-looking statement contained herein to reflect actual
meaning of applicable securities laws ("forward-looking statements" and "forward-looking information" are collectively referred to as results, future events or developments, changes in assumptions or changes in other factors affecting the forward- looking statements. If we
"forward-looking statements", unless otherwise stated). These statements appear in a number of places in this presentation and include update any one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to
statements regarding our intent, or the beliefs or current expectations of our officers and directors. Such forward-looking statements involve those or other forward-looking statements. You should not place undue importance on forward-looking statements and should not rely upon
known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from these statements as of any other date. All forward-looking statements contained in this presentation are expressly qualified in their entirety
any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this presentation by this cautionary statement.
words such as "will", "will be", "to create", "creating", "intends", "expects", "expected to", "anticipated", "objective", "targeting", "targeted",
"advance", "build", "building", "increasing", and similar expressions are intended to identify these forward-looking statements. Forward- Technical Information
looking statements made herein include statements regarding the proposed Transaction, the proposed Concurrent Financing, and other David Laing, BSc, MIMMM, Luna Gold's COO, and Scott Heffernan, MSc, P.Geo. Luna Gold's EVP Exploration are the Qualified Persons under NI
statements derived from the pre-feasibility on the Aurizona Project, including, without limitation: estimated construction costs, operating cost, 43-101 for Luna Gold and have reviewed, approved and verified the technical content of this presentation as it relates to Luna Gold's Aurizona
cash costs, all-in sustaining cost ("AISC") per ounce, initial and sustaining capex and other costs, estimated net present value ("NPV"), initial Project. See the Company's latest technical report relating to the Aurizona Gold Project for additional information with respect to the key
rate of return ("IRR"), anticipated construction period, expected life of mine ("LOM"), estimated reserves and resources, expected sensitivity to assumptions, parameters and risks relating to the mineral resource and reserves estimates and other technical and scientific information
gold prices, expected production and other economic and operational parameters inherent to a pre-feasibility study for a mineral project; presented herein. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The mineral resource and
statements with respect to targeted milestones going forward, including, without limitation, the expected timing for a definitive feasibility mineral reserve estimates contained herein may be subject to legal, political, environmental or other risks that could materially affect the
study, commencement of construction, gold pour and restart of operations and the timing of commencement of exploration activities at Piaba potential development of such mineral resources.
West, Tatajuba and Piaba North. In addition, this presentation may include forward-looking statements relating to the Companies' ability to
complete the proposed Transaction; the Companies' ability to secure the necessary shareholder, legal and regulatory approvals required to J. David Lowell, JDL's Chairman, is the Qualified Person under NI 43-101 for JDL and has reviewed, approved and verified the technical content
complete the Transaction; JDL's ability to complete the Concurrent Financing; Trek's financial position following the Transaction; the of this news release as it relates to the Warintza, Ricardo and Elk Gold projects.
anticipated results of the feasibility study for the Aurizona Project; the anticipated Board of Directors decision to approve construction of the
Aurizona Project; the ability to raise the capital required to fund construction and development of the Aurizona Project; the estimated costs Cautionary Note to U.S. Investors Concerning Estimates of Mineral Resources. These estimates have been prepared in accordance with the
associated with construction of the Aurizona Project; the ability to restart production at the Aurizona Project; the timing of the anticipated requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. The terms "mineral resource",
restart of production; the ability to achieve the gold production rates and costs outlined in the Aurizona pre-feasibility study; the ability to "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in NI 43-101 and recognized by
increase throughput and production levels at the Koricancha Mill; the ability to advance exploration efforts at Aurizona, Warintza, Ricardo and Canadian securities laws but are not defined terms under the U.S. Securities and Exchange Commission ("SEC") Guide 7 ("SEC Guide 7") or
Elk Gold; the results of exploration efforts at Aurizona, Warintza, Ricardo and Elk Gold; and the companies' ability to achieve the synergies recognized under U.S. securities laws. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories
expected as a result of the Transaction. This presentation also contains statements regarding future outlook, guidance and anticipated events will ever be upgraded to mineral reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great
or results and may include statements regarding the companies' future financial position, future exploration and development of mineral uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever by
properties, business strategy, budgets, litigation, projected costs, financial results, taxes, plans and objectives, and the timing of targeted upgraded to a higher category. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility
components of the strategic plan outlined in this presentation. We have based these forward-looking statements largely on our current or pre-feasibility studies. U.S. investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is
expectations and projections about future events and financial trends affecting the financial condition of our business. These forward-looking economically or legally mineable. Accordingly, these mineral resource estimates and related information may not be comparable to similar
statements were derived utilizing numerous assumptions regarding expected project parameters, results of operations, performance and information made public by U.S. companies subject to the reporting and disclosure requirements under the U.S. federal securities laws and
business prospects and opportunities that could cause actual results to differ materially from those in the forward-looking statements. While the rules and regulations thereunder, including SEC Guide 7.
the companies consider these assumptions to be reasonable, based on information currently available, they may prove to be incorrect.
Accordingly, you are cautioned not to put undue reliance on these forward-looking statements. Forward-looking statements should not be Non-GAAP Measures
read as a guarantee of future performance or results. Forward-looking statements are based on information available at the time those This presentation refers to expected AISC and other financial measures which are non-GAAP measures. These measurements have no
statements are made and/or management's and/or its qualified persons' good faith belief as of that time with respect to future events, and are standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. These measurements are
subject to known and unknown risks and uncertainties, including, without limitation: the risks and uncertainties inherent to an economic study intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared
such as the pre-feasibility study, fluctuation in commodity prices, variations in costs of supplies and labour, the availability of financing on in accordance with IFRS.
acceptable terms, the risks of operating in foreign countries such as Brazil, Ecuador, Chile and Peru, the risks inherent to the restart of mining
operations, the effect of any non-compliance with debt covenants and other financing arrangements, uncertainties with respect to servicing All amounts are in US$ unless otherwise stated. Exchange rate assumed 0.76 USD:CAD. All references to share
debt and those risks and uncertainties outlined in the companies' corporate disclosure and other documents filed on www.sedar.com, that
prices are as of close of market on January 31, 2017.
could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.
1
On the Path to Creating a Mid-Tier Producer
Experienced team
Decades of exploration, project finance, construction and operations experience

Multi-asset growth company


~C$300 M
Aurizona feasibility nearing completion with gold pour targeted by year-end 2018 MARKET CAP 1
Gold production ramping up from the Koricancha Mill
Portfolio of exploration-stage gold and copper projects

Strong financial position with ~C$66 million in cash and no cash debt ~C$66 M
Strengthened balance sheet improves Aurizona project finance flexibility CASH (~US$50 M) 2
Strategic shareholder base and enhanced share liquidity
Broad and supportive shareholder base

Near-mine and district-scale exploration focus at Aurizona


+150,000 oz
Multiple drill-ready targets identified along strike from existing reserves GOLD/YEAR 3
Diversified asset base creates platform for growth
Vision to create a leading mid-tier gold producer by 2020
1. Based on the assumption of ~149 M common shares outstanding and JDL's trading price of C$1.99 on January 31, 2017. 2. Following closing of the Transaction, including marketable securities and C$27 million (~$20 million) financing. 3. Average 2
annual gold production from Aurizona for first five years based on the "Pre-feasibility Study on Aurizona Mine Project, Maranho, Brazil, NI 43-101 Technical Report" with an effective date of Sept 12, 2016, plus Koricancha gold production.
Experienced Leadership Team
MANAGEMENT TEAM BOARD OF DIRECTORS
Christian Milau, CEO and Executive Director Rob Pease, Chairman
Luna Gold, True Gold, Endeavour Mining, New Gold Sabina Gold & Silver, Terrane Metals, Richfield Ventures, Placer Dome

Greg Smith, President and Executive Director Christian Milau, CEO and Director
JDL Gold, Esperanza Resources, Minefinders, Goldcorp, KPMG Luna Gold, True Gold, Endeavour Mining, New Gold

David Laing, COO Greg Smith, President and Director


Luna Gold, True Gold, Quintana Resources, Endeavour Mining JDL Gold, Esperanza Resources, Minefinders, Goldcorp, KPMG

Peter Hardie, CFO Dan Wilton, Director


Luna Gold, True Gold, Nevsun Pacific Road Capital, National Bank Financial, General Electric

Scott Heffernan, EVP Exploration Felipe Alves, Director


Luna Gold, True Gold, Wealth Minerals, Equity Exploration Frontera Minerals Group, Rand Merchant Bank

Sebastian DAmici, SVP Finance Marcel de Groot, Director


Luna Gold, True Gold, CHC Helicopters, Clarus Securities, PwC Pathway Capital

Rhylin Bailie, VP Investor Relations David Lowell, Director


Luna Gold, Sandspring Resources, Eagle Hill, NovaGold, Placer Dome Discovered more than 15 large-scale mines, American Mining Hall of Fame

Cesar Torresini, VP Operations Jim ORourke, Director


MGM for Amapari Gold Mine, Brazil Country Manager for Newmont Copper Mountain Mining, Canadian Mining Hall of Fame

3
Transaction Overview
All Share 23% Premium
1.105 JDL Share per Luna Gold Share C$2.20 per Luna Gold Share to Spot
Consideration
(16% to 20-day VWAP)

Cash Debt No Cash Debt


Pacific Road Debt Repaid + Sandstorm Debt Facility Converted to Equity
Extinguished Outstanding

Pacific Road
Concurrent C$27 million (~$20 million) Private Placement at C$2.00 per unit
Backstopped
Financing (unit: 1 share + 1 listed warrant at C$3.00 1)
Financing
Lock-ups:
Supportive All Management, Directors and Strategic Shareholders
68% Luna Gold
Shareholder Base (Pacific Road, Sandstorm, Zebra & Lorito (Lundin), KCR/KCO, Ross Beaty, David Lowell)
30% JDL
Shares - Basic M 148.9 Cash - Basic C$ M 66.0
Warrants (W. Avg. Ex. C$2.38) M 87.0 Cash - FD C$ M 282.0 ~C$300 M
Pro-Forma Capital Options/RSUs M 6.0 Cash Debt C$ M - Market Cap 5
Structure 2,3,4
Shares - FD M 241.9 Conv. Debt C$ M 43.0
~C$66 M in Cash
Market Cap. C$ M 300.0
1. Financing warrants will have the same terms as JDL Gold currently listed warrants which trade on the TSX Venture Exchange under the ticker symbol JDL.WT and expire on October 6, 2021. 2. Includes securities issued as part of C$27 M (~$20 M) Concurrent
Financing. Concurrent Financing cash net against existing non-convertible debt. 3. Includes an adjustment for estimated transaction costs of $2 million. Includes marketable securities where applicable. 4. Cash FD includes warrants as part of units in
4
Sandstorm Debt Facility settlement. 5. Based on the assumption of ~149 M common shares outstanding and JDL's trading price of C$1.99 on January 31, 2017
Growth Platform with Pipeline of Projects

Elk Gold Project, Canada


Exploration Aurizona Gold Mine, Brazil
Commodity: Gold FS Underway, Production in 2018
Status: Past producing mine, Commodity: Gold
2010 PEA, 2016 resource estimate
Resources: M&I 212 koz @ 6.32 g/t,
Status: Past producing mine, FS underway,
Inf 210 koz @ 5.94 g/t 1 gold pour targeted for end of 2018
Reserves/Resources: P&P 969 koz @ 1.62
g/t, M&I 1.6 Moz @ 1.67 g/t 2
Avg. Production: 150 koz for first 5 years,
Warintza Cu-Mo Project, Ecuador 136 koz LoM 3
Advanced Exploration
Avg. AISC: $708/oz 3
Commodity: Cu-Mo porphyry
Location: Proximate to Mirador Cu-Au
project and contiguous with San Carlos
Panantza Cu-Mo project
Resources: Inf 1.8 Blbs Cu @ 0.42% and Koricancha Mill, Peru
132 Mlbs Mo @ 0.031% (0.61% CuEq) 1 Increasing Gold Production
Commodity: Gold
Status: Operating processing facility with 350
Ricardo Claim Block, Chile tpd capacity; currently ramping up
Grassroots Exploration Business Model: Purchase mineralized feed
Size: 16,000 ha at a market discount from small-scale and
1. See JDL Resource Estimates and Cautionary Notes. Target: Porphyry mineralization artisanal miners to produce Au and Ag for its
2. See Aurizona Reserve & Resource Estimate and Cautionary Notes.
3. Based on the "Pre-feasibility Study on Aurizona Mine Project, Maranho, Location: 30 km south of own account
Brazil, NI 43-101 Technical Report" prepared by Lycopodium Minerals Chuquicamata, one of the world's
Canada Ltd. with an effective date of September 12, 2016, a copy of which
is available on Luna Gold's website and on SEDAR at www.sedar.com.
largest known Cu deposits
5
Strengthened Balance Sheet
Pre Transaction (Luna + JDL) Pre Transaction Balance Sheet
Post Transaction (Luna + JDL)
(Trek Mining)

Cash
SSL C$12 M
Convertible
C$43 M

SSL
Convertible
Cash Debt
C$43 M
C$61 M

Cash
C$66 M

Cash
C$56 M
~C$66 M CASH 2 ~C$95 M CASH 2
Basic Fully Diluted In-the-Money
(~$50 M) (~$72 M)
6
1. Number includes marketable securities. 2. Trek balance sheet numbers include marketable securities and C$27 M (~$20 M) Concurrent Financing.
Supportive Shareholder Base
Pre Transaction Ownership (Luna + JDL) 1 Post
Pre Transaction
Transaction Ownership
Balance Sheet(Trek
(LunaMining)
+ JDL) 1

Float
26%

Management
9%
Management
Float
8%
42%
Pacific Road
Institutional &
49%
HNWI
Sandstorm 14%
17%

Sandstorm Pacific Road


Float 19% 16% 2
54%

Management Invested Market Awareness


Institutional
& HNWI
Management 32% Supportive
14% Increased Float
Shareholders
7
1. Based on basic issued and outstanding and excluding unvested RSUs to current management 2. Excludes backstop participation in the Concurrent Financing. Assumes Sandstorm Debt Facility settled as 100% equity.
Capital Intensity vs IRR Sweet Spot
3,500

Low capital
3,000 intensity
Capital intensity ($Capex / oz Annual Production)

Midas
Eldorado
2,500
Orezone
LOWER CAPITAL INTENSITY

Torex Golden Queen $146 million


2,000
Lundin Gold initial capex 1
Lydian Int'l Almaden
Sabina Gold
Belo Sun Continental
1,500
Asanko
Dalradian Victoria Roxgold
Atlantic AISC in lowest
TMAC
1,000
Guyana Goldfields Troy 1/3 of industry 2

500

43% margin at
0
5 10 15 20 25 30 35 40 45 50
$1,250 Au/oz 1
After Tax IRR (%)

HIGHER IRR
8
1. As per the "Pre-feasibility Study on Aurizona Mine Project, Maranho, Brazil, NI 43-101 Technical Report" with an effective date of Sept 12, 2016. 2. 2016 Wood Mackenzie AISC data provided by BMO Capital Markets.
Scarcity of Single-asset Near-term Producers
Est. Time to Production
3+ Years 2 Years 1 Year Producers
400 378 16
370

350 14

300 12
253
Annual Production (koz)

250 10

Grade (g/t)
205
200
200 8
160
150
150 6
116
100
100 4

50 2

0 0

Annual Production
Grade
9
Near-term Production, Exploration Upside
Production targeted for year-end 2018
Past producing mine in northern Brazil with the Aurizona processing
majority of infrastructure still in place plant, January 2017

PFS in 2016 outlined low-cost, high-margin gold mine 1


Feasibility underway with completion expected
around the end of Q1-2017
Capex estimated at $146 million for 8,000 tpd
operation 1
AISC of $708/oz puts Aurizona in lower third of
industry average 1
Gold production estimated at 150,000 oz/year for first Piaba pit,
five years 1 January 2017

Exploration potential
Over 100,000 metres of drilling to date
Significant potential to extend initial 6.5-year mine life
with near-mine exploration success
JV with AngloGold Ashanti to explore 2,000 km2
greenfields property

1.Based on the "Pre-feasibility Study on Aurizona Mine Project, Maranho, Brazil, NI 43-101 Technical Report" prepared by
Lycopodium Minerals Canada Ltd. with an effective date of September 12, 2016, a copy of which is available on Luna Gold's
website and on SEDAR at www.sedar.com. 10
Past-producing Mine with Existing Infrastructure
Open-pit mine, produced from 2010-2015
North Waste
Storage Facility
Most major mine elements in place
Ven Tailings Permitting in place, being updated for
Storage Facility
8,000 tpd processing plant
Piaba Pit Improved water management plan
Combined contract and owner mining
Excellent infrastructure:
- Plant replacing front end
Primary crusher/related facilities
ROM Pad Surge bin with temporary stockpile
SAG mill, ball mill, pebble crusher
- Mining fleet to be replaced
Plant Site
- Grid power to site upgrade substation
- Road accessible
- Experienced local workforce
- Offices and camp
- Water
- Communications
Aurizona Mine, January 2017

11
Exceptional Exploration Upside
~2,500 km2 Land Package
Near-mine exploration
Luna Gold planning 2017 exploration program
to test near-mine drill ready targets on strike
with existing reserves

450 km2 brownfields exploration


Limited surface work and drilling has identified
a number of drill targets, including Touro which
has a footprint >6 km2

Open to depth
High-grade "root" to the mineralized system
tested up to 500m below surface; current PFS
mine plan contemplates mining to only 220 m

AngloGold Ashanti district-scale exploration


In August 2016 AngloGold commenced
exploring ~2,000 km2 of greenfields permits to
earn 70% interest
12
Brownfields Exploration Potential
> 10 DRILL READY TARGETS
> 50 km CUMULATIVE STRIKE
Piaba and Boa Esperana deposits
remain open along strike and to depth
- Piaba West with potential to
extend the deposit over 400 m
- Tatajuba structure with ~4 km
strike application underway to
convert to mining permit
Touro target ~15 km to SW has similar
scale footprint to Piaba
> 10 drill ready targets in immediate
vicinity of Piaba
> 50 km cumulative strike with
anomalous to high-grade soil and rock
geochemistry
AngloGold geophysics data will greatly
help to focus exploration 13
13
Koricancha Mill
In production and ramping up
Custom built 350 tpd gold ore processing facility
Mineralized feed is purchased at a market discount
from legally operating small-scale and artisanal
miners throughout Peru: the material is processed to
produce gold and silver that is sold at spot prices
Average throughput grade to date of more than
20 g/t gold
Recommenced gold production in Q4-2016 and is
working to increase throughput toward its 350 tpd
capacity Koricancha ball mills and
leach tanks, January 2017

Strategic Location
Excellent location and infrastructure, located less
than 10 minutes from Pan American Hwy
Strong government and community support

14
Project Pipeline
Warintza Project
Copper-Molybdenum deposit in southeast Ecuador
22,676 hectares, ~6,500 metres of drilling to date
40km north of Mirador Cu-Au development project and near contiguous to San Carlos Panantza
exploration-stage deposit
2013 resource estimate: Inf 1.808 Blbs Cu @ 0.42% and 132.3 Mlbs Mo @ 0.031% (0.61% CuEq) 1

Elk Gold Project


Past-producing high-grade gold mine in British Columbia, Canada
Produced 51,500 ounces of gold from 1992-1995
6,597-tonne bulk sample in 2014 produced 3,531 ounces @ 16.65 g/t gold
More than 125,000 metres of drilling to date
2016 resource estimate: M&I 211.9 koz @ 6.32 g/t gold and Inf 209.6 koz @ 5.94 g/t gold 1

Ricardo Claim Block


"Right address" for copper and molybdenum mineralization in Chile
16,000 hectares strategically located along West Fissure fault
West Fissure fault hosts numerous large porphyry copper deposits, including Escondida and
Chuquicamata

1. See JDL Resource Estimates and Cautionary Notes.


15
Starting the Journey
Strong leadership team
Strong cash position and simplified balance sheet
Near-term production from the past-producing Aurizona gold mine in Brazil
Increasing production from the Koricancha gold milling operation in Peru
Exceptional exploration upside: Aurizona, Warintza, Ricardo
Diversified portfolio

Information Circular Shareholder Meetings Complete Transaction


Late February Mid-March By end of March

CREATING A LEADING MID-TIER GOLD PRODUCER


16
Contact Details

Christian Milau Greg Smith


CEO & Director CEO & Director

Tel: 604-558-0560 Tel: 604-628-1164


Email: ir@lunagold.com Email: greg@jdlgold.com
www.lunagold.com www.jdlgold.com

Rhylin Bailie
VP Investor Relations

Tel: 604-260-0516
Email: ir@lunagold.com
www.lunagold.com

17
Appendix
Transaction Overview
Form of Transaction Plan of Arrangement whereby JDL acquires all of the outstanding securities of Luna Gold
Consideration Share Exchange Ratio of 1.105 JDL shares for each Luna Gold share held
Implied premium of 16% on 20-day VWAP and 23% as of Jan 31, 2017
Each Luna Gold warrant, option and restricted share unit to be converted at the Exchange Ratio
No Shop Non-solicitation of other acquisition proposals. Exclusion for responding to a bona fide unsolicited acquisition
proposal that is or could reasonably lead to a Superior Proposal
Termination Fee C$6.5M (~4% of transaction value basic equity + SSL convertible debenture)
Voting Support Agreements All Officers, Directors and certain other shareholders
Board Recommendation Unanimous
Conditions Precedent Standard
Luna Debt Pacific Road's debt repaid in cash following closing
Sandstorm Debt Facility converted into equity
Concurrent Equity Financing C$27M (~US$20M) (effectively offsetting Pacific Road's debt repayment) of subscription receipts ("SR") @ C$2.00 per
SR (each SR ultimately converts into 1 JDL share and 1 JDL warrant)
Concurrent Financing fully backstopped by Pacific Road
Size may be increased, depending on demand
Approvals Luna Gold shareholder approval of the Transaction: 66 2/3% of votes cast by securityholders, 66 2/3% of votes cast by
shareholders, 66 2/3% of votes cast by restricted share unit holders, and a majority of votes cast by shareholders
Luna Gold shareholder approval of the debt exchange and debt settlement: majority of the minority of votes cast
JDL shareholder approval: majority vote
Customary regulatory and court approvals
Indicative Timeline Joint Information Circular sent to shareholders in February 2017
Special Shareholder meetings to take place in March 2017, with Completion expected by end of March 2017 19
Trek Mining Capital Structure

Pro-forma Ownership (Basic) Pro-forma Capital Structure (US$) 1


Consolidated LGC JDL New Trek Trek
Summary Equity 2 C$
PF Outstanding (Basic) M 67.9 67.5 13.5 148.9
JDL PF Outstanding (FDIM) M 96.2 71.5 13.5 181.2
Luna
45.3%
45.6% PF Outstanding (FD) M 108.6 106.2 27.0 241.9
Ownership (Basic) % 45.6 45.3 9.1 100.0
Ownership (FDIM) % 52.4 40.0 7.6 100.0
Ownership (FD) % 45.0 43.9 11.2 100.0

Cash (Basic) 3 M $9.1 $42.2 $50.0 C$66.0


New Equity
9.1% Cash (FDIM) 3 M $27.8 $46.2 $72.0 C$95.0
Cash (FD) 3,4 M $53.9 $131.0 $30.8 $214.0 C$282.0
Convertible Debt M $32.7 $- $32.7 C$43.0

1. Numbers may not add due to rounding.


2. New shareholders from C$27 M (~$20 M) Concurrent Financing securities. Concurrent Financing cash net against existing non-convertible debt.
3. Includes an adjustment for estimated transaction costs of $2 million. Includes marketable securities where applicable.
4. Luna Gold cash FD includes warrants as part of units in Sandstorm Debt Facility settlement. 20
Low-cost High-margin Gold Mine
2016 PFS Highlights 1 Cost Summary (LOM) 1
Gold price (Base case) $1,250/oz All-in Sustaining Cost: $708/oz
M&I Resource 2 1.6 Moz/ 29.9 Mt @ 1.67 g/t 43% Royalties
$49
Sustaining
Capex $50
Reclamation &
Closure $3

P&P Reserve 969 koz/ 18.6 Mt @ 1.62 g/t MARGIN AT Refining &
Transport $13
$1,250/OZ AU
Mine Life 6.5 years Mining

47%
G&A $60 $301
Annual Production Avg. 150,000 oz (Years 1-5)
Strip Ratio / Recovery 6.2:1 / 91% MARGIN AT Processing
$1,350/OZ AU $232
Construction Period 18 months *Mining - $2/t mined

Initial Capex $146M (includes new mine fleet) Aurizona in the lower third of the industry AISC average

Sustaining Capex $47M


Cash Cost (after tax) $606/oz
Aurizona AISC $708/oz
AISC (after tax) $708/oz
NPV5% (after tax) $201M ($256M at $1350/oz gold)
IRR (after tax) 34% (40% excluding C&M costs, including mine fleet lease)
Payback (after tax) 2.6 years
2016 Wood Mackenzie AISC curve provided by BMO Capital Markets.

1. Based on the "Pre-feasibility Study on Aurizona Mine Project, Maranho, Brazil, NI 43-101 Technical Report" prepared by Lycopodium Minerals Canada Ltd. with an effective date of September 12, 2016, a copy of which is available on Luna Gold's website and 21
on SEDAR at www.sedar.com. 2. Mineral resources are inclusive of mineral reserves.
Leading the Developers: Operating & Financial Metrics 1
Open-pit Developers: Reserve Grade Capex ($M)
$500
1.80
1.60
Reserve Grade (g/t gold)

$400
1.40

Initial Capex ($M)


1.20 $300
1.00
0.80 $200
0.60
0.40 $100
0.20
0.00 $0

Average Annual Production After-tax IRR @ $1250 Gold


250,000 40% *
35%
200,000
30%
Ounces of Gold

150,000 25%
20%
100,000 15%
10%
50,000
5%
- 0%

1. Data sourced from company websites, presentations and technical reports. * PFS IRR of 34% increases to 40% when care and maintenance costs are excluded and a 22
mining fleet lease is included.
W. Africa / S. America: World-class Deposits
South American deposits analogous
to the prolific gold belts of
West Africa

Underexplored greenstone belts


hosting orogenic gold systems

Aurizona is situated in a highly


prospective emerging district

Brazil has long mining history and


strong mining culture (iron ore)

23
Aurizona: Good Site Access, Mining-friendly Brazil

Good paved road access to site


from So Luis, capital of
Maranho state (370 km) or
Belm, capital of Para state
(440 km)
International flights to Belm
Airstrip in nearby Godofredo
Viana (18 km)
Dedicated power to site
Majority of employees from
local communities

24
Aurizona: New Front End of the Processing Plant
Mine will deliver all ore types to the mill: saprolite
(14%), hard saprolite + transition (29%), fresh rock (57%)
Increase processing capacity to 8,000 tpd for all rock
types
Dedicated 69 kV powerline to site, upgrading substation
to handle 15 MW
Installation of primary crusher
Significantly increased grinding power from 1.4MW to
9.1MW SAG and ball mills to be installed
Use large run-of-mine pad to improve early grade feed
Improved gold recovery system increased capacity
with three additional leach tanks
Better carbon recovery and treatment process
intensive leach reactor, pressure elution vessel, carbon
regeneration kiln, improved electrical system and
automation
91% recovery
25
Aurizona: Underground Potential
SW Viewing Az 340 NE

OPEN OPEN

OPEN ~160m

OPEN
~175m
OPEN
~1,500m
~140m

Material Cutoff Tonnes Au g/t Au Oz 2 g/t shell outside Reserve Pit and within
Au g/t US$1400 Resource Pit

Measured1 2.0 477,000 5.02 77,000 2 g/t shell outside US$1400 Resource Pit
Below Reserve Pit and
within US$1400 Indicated1 2.0 1,516,000 5.01 244,900
Resource Pit 1 Included in US$1400 open pit Mineral Resources.
Inferred1 2.0 14,000 3.58 1,600 2 Included in Inferred Mineral Resources outside US$1400 open pit. Underground
resources were evaluated using a 2 g/t Au shell and edited to account for reasonable
Below US$1400 Inferred2 2.0 3,721,000 3.47 415,300
mineable geometries. Tonnages rounded to the nearest 1,000 and ounces rounded to
nearest 100. Differences may be present due to rounding.
Resource Pit 26
Aurizona: AngloGold Joint Venture
AngloGold Ashanti to spend $14M over
4 years to earn 70% interest on
greenfields properties (~2,000 km2) 1,2,3
commenced August 2016, on track to
exceed $2M commitment in year one
AngloGold planning greenfields drill
program, and undertaking airborne
geophysical surveys over the entire land
package Trek will get all data
Should AngloGold earn and decide to
sell its interest in the JV, Trek can
purchase AngloGold's interest in any NI
43-101 compliant resources for $10/oz
- If AngloGold's exploration is successful,
Trek could hold 30% of a major deposit
or 100% of an interesting discovery

1. Aurizona Mine area including Piaba West and Tatajuba, and brownfields project areas
such as Touro, are excluded from the AngloGold JV (~450 km2).
2. Greenfields properties also subject to a 2% NSR royalty to Sandstorm, subject to
Trek's right to reduce the NSR to 1% for US$10M prior to commercial production. Mine
permit and brownfields properties are subject to a gold price dependent sliding scale 3-
5% NSR royalty to Sandstorm.
3. Once AngloGold earns in, Trek would fund future activities on a pro-rata basis. 27
27
Aurizona: Feasibility Study & Drilling Underway
Lycopodium Canada engaged to lead Feasibility Study
completion around end of Q1-2017
- Condemnation and geotechnical drilling
- Enhancing geo-metallurgical model
- Resource model update to include recent drilling and
geologic modelling
- Mine design and production schedule update
- Review and update of existing plant repair and
refurbishment program
- Capital and operating cost inputs update
Feasibility Study drilling and geology
- Two RC drills completed 8,610 m program results
pending
2,420 m Boa Esperana Infill
2,920 m Piaba Infill
3,270 m Condemnation
- Detailed logging and database update complete
- Geologic modelling nearing completion
- Additional ICP analyses underway
1,370 samples from Boa Esperana
3,502 samples from Piaba

28
Aurizona: Reserve & Resource Estimates
Proven Probable Total
Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
Ore Type (kt) (g/t) (oz) (kt) (g/t) (oz) (kt) (g/t) (oz)
Laterite/Saprolite 721 1.59 37,000 1,852 1.04 62,000 2,573 1.19 99,000
Hard Saprolite/Transition 2,320 1.60 119,000 3,049 1.22 119,000 5,369 1.38 238,000
Fresh Rock 3,328 1.98 212,000 7,372 1.77 420,000 10,700 1.84 632,000
Total 6,369 1.80 368,000 12,273 1.52 601,000 18,642 1.62 969,000
Tonnes Gold Grade Gold The Mineral Reserve estimate has an effective date of June 21, 2016 and is based on
Area Type Class (kt) (g/t) (oz) the Mineral Resource estimate effective on April 30, 2016. The Mineral Reserve
calculation was completed under the supervision of Gordon Zurowski, P.Eng of AGP
Mining Consultants Inc., who is a Qualified Person as defined under NI 43-101.
Measured 8,910 1.77 508,000 Mineral Reserves are stated within the final design pit based on a $1,104 per ounce
gold price pit shell with a $1,200 per ounce gold price for revenue. The cutoff grade
Indicated 20,264 1.64 1,071,700 was 0.38 g/t Au for all pit areas. The mining cost averaged $2.32 per tonne mined,
Pit Constrained
processing averages $11.30 per tonne milled and G&A was $2.84 per tonne milled.
Piaba M&I 29,174 1.68 1,579,700 The process recovery averaged 90.5%. The exchange rate assumption applied was
R$3.50 equal to $1.00. The PFS scope only considers the Piaba and Boa Esperana
Inferred 2,584 0.72 60,000 open pit mineralized zones. The Mineral Resource and Mineral Reserve estimates
contained herein may be subject to legal, political, environmental or other risks that
Outside Pit Inferred 3,721 3.47 415,300 could materially affect the potential development of such Mineral Resources. See
the Company's press release dated September 12, 2016 and the Company's latest
Boa Esperana Pit Constrained Indicated 682 0.90 19,700 technical report relating to the Aurizona Gold Project for additional information with
respect to the key assumptions, parameters and risks relating to the mineral
Inferred 66 0.75 1,600 resource and reserves estimates and other technical and scientific information
presented herein. The Mineral Resource estimate has an effective date of April 30,
Measured 8,910 1.77 508,000 2016 and was prepared by Mr. Brett R. Marsh, C.P.G. of Phoenix Geoscience, LLC,
who is a qualified person under NI 43-101. Mineral Resources are inclusive of
Mineral Reserves. Mineral Resources that are not included within the Mineral
Indicated 20,946 1.41 1,091,400 Reserves do not have demonstrated economic viability. Mineral Resources are
Pit Constrained
stated at the following cutoff grades for open pit: Piaba: Laterite and Saprolite at
Total M&I 29,856 1.67 1,599,400 0.30 g/t Au; Hard Saprolite/Transition/Fresh Rock at 0.40 g/t Au. Piaba: Outside open
pit at 2.0 g/t Au. Boa Esperana cutoff grade: 0.44 g/t Au. Piaba topography is
Inferred 2,650 0.72 61,600 current as of February 28, 2015. Tonnes are rounded to the nearest 1,000; ounces
are rounded to the nearest 100. Small tonnage and grade differences may be found
Outside Pit Inferred 3,721 3.47 415,300 due to rounding.
29
JDL: Resource Estimates
Warintza March 2013 Resource Estimate 1

Resource Tonnes CuEq% Cu% Copper Copper Mo% Mo Mo CuEq


(tonnes) (M lbs) (tonnes) (M lbs) (M lbs)
Inferred 194,994,000 0.61 0.42 820,000 1,807 0.031 60,000 132 2,072

Elk Gold 2016 Resource Estimate 2

Resource Tonnes Grade Oz


M&I 1,042,600 6.32 211,900

Inferred 1,096,900 5.94 209,600

1. The Mineral Resource estimate has an effective date of December 21, 2012 as reported in the "Technical Report, Warintza Project, Ecuador" completed by Peter Ronning, P.Eng. and
Steven Ristorcelli, C.P.G. with an effective date of December 21, 2012 and a completion date of March 27, 2013. The Mineral Resource calculation was completed under the supervision
of Peter Ronning, P.Eng. and Steven Ristorcelli , C.P.G., who are Qualified Persons as defined under NI 43-101. The reported resource is at a cut-off of 0.3 CuEq. Copper equivalent
calculations were made for reporting purposes. The copper equivalent grade for copper plus molybdenum was calculated as CuEq(%) = Cu(%) = (6*Mo(ppm)/10000). Copper-equivalent
calculations reflect gross metal content and have not been adjusted for metallurgical recoveries or relative processing and smelting costs. The copper equivalent grades were used only
for establishing cut-off grades for reporting.

2. The Mineral Resource estimate has an effective date of August 22, 2016 as reported in the "Technical Report on Resources of the Elk Gold Project" completed by Robert Wilson, P.Geo.,
Gary Giroux, P.Eng. and Antonio Loschiavo, P.Eng. with an effective date of August 22, 2016. The Mineral Resource calculation was completed under the supervision of Gary Giroux,
P.Eng., who is a Qualified Person as defined under NI 43-101. The potential open pit resources were evaluated using the Maptek Vulcan v9.1.1 Lerchs-Grossman algorithm software. The
constrained resource was calculated using a gold price of US$1232/oz. Any blocks within the constrained shell were reported using a 1.0 g/t cut-off and any blocks below the LG shell
surface were reported using a 5.0 g/t cut-off. The grade reported is the average grade of the resource both in and below the pit.
30
Contact Info
604-558-0560 604-628-1164
ir@lunagold.com info@jdlgold.com
www.lunagold.com www.jdlgold.com
TSX: LGC TSX-V: JDL

You might also like