dalradian corporate presentation sept 10 2013 final

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Patrick F. N. Anderson Chief Execu8ve Officer Sample from the T17 vein 188 g/t of gold 103 g/t of silver 5.07% of copper HighGrade Gold LowCost LowRisk Development Europe September 2013

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Page 1: Dalradian corporate presentation sept 10 2013 final

Patrick  F.  N.  Anderson  Chief  Execu8ve  Officer  

Sample  from  the  T17  vein  188  g/t  of  gold    103  g/t  of  silver  5.07%  of  copper  

High-­‐Grade  Gold  │  Low-­‐Cost  │  Low-­‐Risk    │  Development  │  Europe  │  September  2013  

Page 2: Dalradian corporate presentation sept 10 2013 final

Forward-­‐Looking  Informa;on  and  Qualified  Person  

This  presenta8on  contains  “forward‑looking  informa8on”  which  may  include,  but  is  not  limited  to,  statements  with  respect  to  the  comple8on  of  the  acquisi8on  (the  “Acquisi8on”)  by  the  Company  from  a  group  of  private  vendors  of  approximately  1.3  million  hectares  of  mineral  rights  over  four  greenstone  belts  and  a  historic  silver  mining  camp  in  Norway,  future  financial  or  opera8ng  performance  of  the  Company  and  its  mineral  projects,  the  future  price  of  metals,  the  es8ma8on  of  mineral  resources,  the  realiza8on  of  mineral  resource  es8mates,  the  8ming  and  amount  of  es8mated  future  produc8on,  costs  of  produc8on,  capital,  opera8ng  and  explora8on  expenditures,  costs  and  8ming  of  the  development  of  new  deposits,  costs  and  8ming  of  future  explora8on,  requirements  for  addi8onal  capital,  government  regula8on  of  mining  opera8ons,  environmental  risks,  reclama8on  expenses,  8tle  disputes  or  claims  and  limita8ons  of  insurance  coverage.  O^en,  but  not  always,  forward‑looking  statements  can  be  iden8fied  by  the  use  of  words  and  phrases  such  as  “plans,”  “expects,”  “is  expected,”  “budget,”  “scheduled,”  “es8mates,”  “forecasts,”  “intends,”  “an8cipates,”  or  “believes”  or  varia8ons  (including  nega8ve  varia8ons)  of  such  words  and  phrases,  or  state  that  certain  ac8ons,  events  or  results  “may,”  “could,”  “would,”  “might”  or  “will”  be  taken,  occur  or  be  achieved.  

Forward-­‐looking  statements  are  based  on  the  opinions  and  es8mates  of  management  as  of  the  date  such  statements  are  made  and  are  based  on  various  assump8ons,  such  as  the  con8nued  poli8cal  stability  in  Northern  Ireland  and  Norway,  that  permits  required  for  the  Company’s  opera8ons  will  be  obtained  in  a  8mely  basis  in  order  to  permit  the  Company  to  proceed  on  schedule  with  its  planned  explora8on  and  development  programs,  that  skilled  personnel  and  contractors  will  be  available  as  the  Company’s  opera8ons  con8nue  to  grow,  that  the  price  of  gold  will  be  at  levels  that  render  the  Company’s  mineral  projects  economic,  that  the  Company  will  be  able  to  con8nue  raising  the  necessary  capital  to  finance  its  opera8ons  and  realize  on  mineral  resource  es8mates,  and  that  the  assump8ons  contained  in  the  PEA  are  accurate  and  complete.  

Forward‑looking  statements  involve  known  and  unknown  risks,  uncertain8es  and  other  factors  which  may  cause  the  actual  results,  performance  or  achievements  of  the  Company  to  be  materially  different  from  any  future  results,  performance  or  achievements  expressed  or  implied  by  the  forward‑looking  statements.  Such  factors  include,  among  others,  general  business,  economic,  compe88ve,  poli8cal  and  social  uncertain8es;  the  actual  results  of  current  and  future  explora8on  ac8vi8es;  actual  results  of  reclama8on  ac8vi8es;  conclusions  of  economic  evalua8ons;  changes  in  project  parameters  and/or  economic  assessments  as  plans  con8nue  to  be  refined;  future  prices  of  metals;  possible  varia8ons  of  mineral  grade  or  recovery  rates;  the  risk  that  actual  costs  may  exceed  es8mated  costs;  failure  of  plant,  equipment  or  processes  to  operate  as  an8cipated;  accidents,  labour  disputes  and  other  risks  of  the  mining  industry;  poli8cal  instability;  delays  in  obtaining  governmental  approvals  or  financing  or  in  the  comple8on  of  development  or  construc8on  ac8vi8es,  as  well  as  those  factors  discussed  in  the  sec8on  en8tled  “Risk  Factors”  in  the  Company’s  Annual  Informa8on  Form.  

Although  the  Company  has  acempted  to  iden8fy  important  factors  that  could  cause  actual  ac8ons,  events  or  results  to  differ  materially  from  those  described  in  forward‑looking  statements,  there  may  be  other  factors  that  cause  ac8ons,  events  or  results  to  differ  from  those  an8cipated,  es8mated  or  intended.  Forward‑looking  statements  contained  herein  are  made  as  of  the  date  of  this  presenta8on  and  the  Company  disclaims  any  obliga8on  to  update  any  forward‑looking  statements,  whether  as  a  result  of  new  informa8on,  future  events  or  results,  except  as  may  be  required  by  applicable  securi8es  laws.  There  can  be  no  assurance  that  forward‑looking  statements  will  prove  to  be  accurate,  as  actual  results  and  future  events  could  differ  materially  from  those  an8cipated  in  such  statements.    Accordingly,  readers  should  not  place  undue  reliance  on  forward‑looking  statements.  

Some  technical  data  in  this  presenta8on  was  taken  from  the    technical  report  en8tled  “A  Preliminary  Economic  Assessment  of  the  Curraghinalt  Gold  Deposit,  Tyrone  Project,  Northern  Ireland” dated  September  6,  2012,  prepared  by  B.  Terrence  Hennessey,  P.Geo.,  Mr.  Barnard  Foo,  P.ENG.,  Mr.  Bogdan  Damjanovic,  P.ENG,  Mr.  Andre  Villeneuve,  P.ENG.,  and  Mr.  Christopher  Jacobs,  CEng  MIMMM  of  Micon  Interna8onal  Limited  (the  “PEA”).  

Michele  L.  Cote,  MSc.,  P.  Geo.,  VP  Explora8on,  Dalradian  Resources  Inc.,  is  the  Qualified  Person  who  supervised  the  prepara8on  of  the  explora8on  technical  data  in  this  presenta8on.  

2

Page 3: Dalradian corporate presentation sept 10 2013 final

OVERVIEW  AND  CORPORATE  

Page 4: Dalradian corporate presentation sept 10 2013 final

Capital  Structure  

STOCK  PRICE  

All  dollars  quoted  in  $  CAD  

TSX:   DNA  

Shares  outstanding:  Fully  diluted:  (August  30,  2013)  

89.5  million  97.0  million  

Market  cap:  (September  11,  2013)   $71.6  million  

Average  30  day  volume:  (September  3,  2013)   138,326  

52  Week  Range:   $1.90  -­‐  $0.48  Insider  ownership:  (approximate)   7%  

Cash  balance:  (as  at  June  30,  2013)   $12.6  million  

Analyst  coverage:  (targets  range  from    

$1.90-­‐$1.30)      

Jamie  Sprac                Steve  Parsons  

 

 Michael  Curran                                  Laurie  Cur8s  

 

 

John  Hayes                                            Bart  Jaworski  

4  

$1,400.00  

$1,500.00  

$1,600.00  

$1,700.00  

$1,800.00  

$1,900.00  

$2,000.00  

$0.00  

$0.50  

$1.00  

$1.50  

$2.00  

$0.80 September 11, 2013

DNA  

Gold  Price  

$  CAD  

Page 5: Dalradian corporate presentation sept 10 2013 final

The  Board:  A  Track  Record  of  Discovery,  Development  &  Produc;on  

5  

PATRICK  F.  N.  ANDERSON  CHIEF  EXECUTIVE  OFFICER  Founder  &  Former  CEO  of  Aurelian  Resources  

‘08  –  PDAC  Interna;onal  Mineral  Discovery  

‘08  –  Northern  Miner  Man  of  the  Year    

JONATHAN  A.  RUBENSTEIN  Director  of  Eldorado  Gold  Corpora;on  Director  of  Detour  Gold  

Chairman  &  Director  of  MAG  Silver  Corp.  

Former  Director  of  Aurelian  Resources,  Suaon  Resources,  Canico  Resource  Corp  &  Cumberland  Resources  

RONALD  P.  GAGEL  Former  SVP  and  CFO  of  FNX  Mining  

THOMAS  J.  OBRADOVICH  CHAIRMAN    Founder  &  Former  CEO  of  Young-­‐Davidson  Mines  

Former  Director  of  Aurelian  Resources  

SEAN  E.  O.  ROOSEN  Founder  &  CEO  OF  Osisko  Mining  Corpora;on  Also  Director  of  Astur  Gold  

‘06  –  Prospector  of  the  Year  -­‐  Quebec  

‘08  –  Prospector  of  the  Year  -­‐  Canada  

‘09  –  Northern  Miner  Man  of  the  Year    

 

Founder  &  CEO  OF  CONTINENTAL  GOLD  LIMITED  ARI  B.  SUSSMAN  

GRENVILLE  THOMAS  Founder  &  Chairman  of  Strongbow  Explora;on  Inc.  Founder  &  Former  Chairman,  President  &  Director  of  Aber  Resources  (Harry  Winston  Diamond  Corp.)  now  Dominion  Diamond  

‘99  –  PDAC  Prospector  of  the  Year    

‘01  –  Northern  Miner  Man  of  the  Year  

‘09  –  Canadian  Mining  Hall  of  Fame  

Page 6: Dalradian corporate presentation sept 10 2013 final

Development  of  a  High-­‐Grade  Deposit    in  a  Low  Risk  Jurisdic;on  

6  

§  Gold  resource  covers  a  frac8on  of  known  mineraliza8on  

§  High-­‐grade  2.7M  ounce  gold  resource  (all  categories)1  

−  Measured:  0.02  MT  grading  21.51  g/t  Au  for  10,000  contained  ounces  

−  Indicated:    1.11  MT  grading  12.84  g/t  Au  for  460,000  contained  ounces  

−  Inferred:    5.45  MT  grading  12.74  g/t  Au  for  2.23  million  contained  ounces  

§  Posi8ve  PEA  shows  a  high  margin  and  low  capex  producer  

NORTHERN  IRELAND  

1  Refer  to  press  release  dated  Nov.  30,  2011  en8tled  “Dalradian  Announces  Resource  Increase  at  Curraghinalt”  at  www.dalradian.com  

Page 7: Dalradian corporate presentation sept 10 2013 final

NORTHERN  IRELAND  

Page 8: Dalradian corporate presentation sept 10 2013 final

Metal  Produc;on  in  Ireland  &  the  UK  

§  Our  flagship  asset:  Curraghinalt  high-­‐grade  lode  gold  deposit  

§  Excellent  regional  infrastructure  

§  Over  84,000  hectares  under  license  

§  Recent  surge  in  gold  sector  

8  

Gor8n  

Omagh  

Curraghinalt  

BELFAST  

NORTHERN  IRELAND  

Galantas  Gold  

Conroy  Diamonds  &  Gold  

Lonmin  

Irish  Salt  Mining  

Underground  Salt  Mine  

Clon;bret  

Croagh  Patrick  Parys  Mountain  

Gwynfynydd  Galmoy   Avoca  

Pallas  Green  Silvermines  

South  Crohy  

Curraghinalt  Gold  Deposit  

Gold  Base  Metals  Salt  Mine  

Allihies  Copper  Mines  

Galantas  Gold  In  produc8on  

Scotgold  Permiced  

Vedanta  Resources  In  produc8on  

Boliden  In  produc8on  

IMC  Explora;on  354  g/t  gold  over  1.5m  

Lundin  In  produc8on  

Conroy  +1M  ounce  resource  

Lisheen  

Cononish  

Tara  

Cavanacaw  

Xstrata  Feasibility  

Gold  Mines  of  Wales  U/G  grab  sample  -­‐  263  g/t  gold    

Clogau  

Page 9: Dalradian corporate presentation sept 10 2013 final

2009  • Project  Acquisi8on  -­‐  December  

• 600  k  ounce  gold  resource1  

2010  • Increased  to  1.5  M  ounce  gold  resource1  

• IPO  -­‐  August  

2011  • 7  rigs  onsite  • Increased  to  2.7  M  ounce  gold  resource1  

2012  • Robust  PEA  announced    

• New  discovery  -­‐  Alwories  

2013  • Underground  explora8on  development  permits  submiced    

In  Three  Years  We  Have:  

1  Refer  to  appendix  or  press  release  dated  Nov.  30,  2011  en8tled  “Dalradian  Announces  Resource  Increase  at  Curraghinalt”  at  www.dalradian.com   9  

Page 10: Dalradian corporate presentation sept 10 2013 final

DG3  

Gor;n  

County  Tyrone  is  Resource  Friendly  

10  

Curraghinalt  

Alwories  Quarry  

kilometres 0 1 2

Curraghinalt  

Clear  Cut  Logging  at  Gor8n  Glen  Forest  Park  

125  Metres

Greencastle  Quarry  

Cavanacaw  Open  Pit  Approx  30  km  SW  

Page 11: Dalradian corporate presentation sept 10 2013 final

Social  License  

11  Dalradian  supports  the  local  MS  Society    

Awarded  in  Top  30  Irish-­‐North  American  Companies  for  2012  &  2013  

“Dalradian  makes  every  effort  to  maintain  good  community  rela8ons,  protect  the  environment  and  work  with  all  local  people  providing  employment  and  training.”  

”The  company  communicates  with  local  land  owners  on  a  daily  basis  and  holds  public  mee8ngs  with  the  wider  community  in  a  nearby  hall  regularly.”  

“The  employment  produced  from  this  venture  is  cri;cal  to  local  work  forces  at  this  ;me.    I  urge  you  to  grant  approval.”  

“As  someone  who  has  worked  with  DGL  and  been  on  site,  I  have  experienced  and  been  fully  impressed  with  their  environmental  mi8ga8on  measures  and  health  &  safety  procedures.”  

“It  makes  economic  sense  to  allow  DGL  to  determine  whether  a  future  mining  project  is  viable.  Not  giving  planning  permission  would  be  to  send  out  a  clear  signal  that  Northern  Ireland  is  not  open  for  investment  from  outside  companies.”  

“It  is  incomprehensible  that  our  local  youth  are  having  to  travel  12,000  miles  to  work  in  explora;on  and  extrac;on  of  mineral  resources  when  we  have  poten;al  similar  opportuni;es  a  mile  away.    Every  effort  should  be  made  to  expedite  this  project  safely  and  effec;vely.”  

Epicdocs.planningni.gov.uk. 2011. Public Access. Available at: http://epicdocs.planningni.gov.uk/ShowCaseFile.aspx?appNumber=K/2013/0072/F Accessed: 19 Aug 2013.  

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CURRAGHINALT  

Page 13: Dalradian corporate presentation sept 10 2013 final

Intercept in hole 11-CT-99 projected up dip to 170m mSL

A  12km  Gold  Trend  

GLACIATED TERRAIN WITH MINIMAL OUTCROP

12 km

1700m

Curraghinalt Deposit

Curraghinalt Trend

13  

Curraghinalt Trend Veins in Current Resource Intersected Veins

Historical Findings Geochem Anomaly

Curraghinalt Deposit Resource as at Nov 2011 – Measured: 0.01 Moz Au (0.02MT @ 21.51 g/t) Indicated: 0.46 Moz Au (1.11MT @ 12.84 g/t) Inferred: 2.23 Moz Au (5.45 MT @ 12.74 g/t)

Golan Burn Outcropping veins including 60cm @ 61.43 g/t Au

Alwories Discovery Holes 4.72m @ 14.82 g/t Au 2.22m @ 14.10 g/t Au 1.47m @ 23.6 2g/t Au

400 m Step-out 3.2m @ 5.34 g/t Au

Attagh Burn 2.47m @ 18.99 g/t Au

A

A’

Page 14: Dalradian corporate presentation sept 10 2013 final

Curraghinalt:  A  Growing  Resource  

14  

2.22  m  @  14.1  g/t  Au  

1.47  m  @  23.6  g/t  Au  

Alwories

3.6 km

Curraghinalt

2007  Resource  

2010  Resource  

2011  Resource  

2012  Interpreted  vein  extents  

Drilling  post  2011  Resource  

4.72  m  @  14.82  g/t  Au  

0m  asl  

-­‐500m  asl  

-­‐1000m  asl  

257500E  

258000E  

258500E  

259000E  

259500E  

A A’

3.20  m  @  5.34  g/t  Au  

2.47  m  @  5.19  g/t  Au  

8.34  m  @  5.84  g/t  Au  

Page 15: Dalradian corporate presentation sept 10 2013 final

PRELIMINARY  ECONOMIC  ASSESSMENT  

Page 16: Dalradian corporate presentation sept 10 2013 final

Preliminary  Economic  Assessment  

16 16

KEY  PEA  DATA*  3  YEAR  TRAILING  

AVERAGE  GOLD  PRICE:  $1378/ounce  

5  YEAR  TRAILING  AVERAGE  GOLD  PRICE:  

$1,166/ounce  

NPV  with  8%  discount  rate  (A^er-­‐tax)   $467  million   $331  million  

IRR  (A^er-­‐tax)   41.9%   33.4%  

Average  Annual  Produc8on   145,000  ounces/year  

Processing  Rate   1,700  tonnes/day  

Life  of  Mine   15  years  

Ini8al  Capex  ($38M  con8ngency)   $192  million  

Cash  Costs   $532/ounce  or  $125/tonne  

Diluted  Grade   8.1  g/t  Au  

Gold  Recovery   92%  

Payback   2  years  

All  dollars  quoted  in  $  USD  unless  stated  otherwise  

PEA  results  released  on  July  25,  2012.    The  PEA  is  preliminary  in  nature.    It  includes  inferred  mineral  resources  that  are  considered  too  specula8ve  geologically  to  have  the  economic  considera8ons  applied  to  them  that  would  enable  them  to  be  categorized  as  mineral  reserves.    There  is  no  certainty  that  the  results  of  the  PEA  will  be  realized.  

*  Prepared  by  Micon  Interna8onal  Limited  

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DEVELOPMENT  

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Curraghinalt  Adit  

18

Working  off  exis8ng  infrastructure,  we  plan  to  begin  

advancing  on  the  veins    

Page 19: Dalradian corporate presentation sept 10 2013 final

Underground  Explora;on  Development  

Proposed  Access  Ramp  to  Sub-­‐Level  

Proposed  Tunnel  Extensions  at  Sub-­‐Level  

Proposed  Tunnel  Extensions  at  170  M  Level  

Exis;ng  Explora;on  Tunnel  

T17

No.  1

106 -­‐ 16

Bend

Crow

Road

Sheep  Dip

Mullan

§ Dalradian  has  requested  planning  permission  to  complete  approximately  2,000  m  of  underground  explora8on  development  

§  Extend  the  exis8ng  adit  by  approximately  260  m  to  intersect  all  known  veins;  

§  Dri^  along  several  of  the  known  veins  &  demonstrate  vein  con8nuity;  

§  Install  a  ramp  to  access  150  m  level,  approximately  20  m  below  exis8ng  workings;  

§  Removal  of  large  bulk  sample  for  metallurgical  test  work.  

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20

Conceptual  Sublevel  Development

2,000  m  Planned  with  the  Goal  to:  

•  Demonstrate  con8nuity  of  thickness  and  grade  of  mineralized  veins.  •  Convert  addi8onal  resources  to  Measured  and  Indicated.  

•  Test  mining  and  backfill  methods.  •  Inves8gate  geotechnical  and  hydrogeological  condi8ons.  •  Produce  a  bulk  sample  for  metallurgical  test  work.  •  Test  the  permiwng  process.  

ROAD

 

SHEEPD

IP  

MULLAN

 

T17  No.  1  

106_16  

BEND  

CROW  

EXISTING  DEVELOPMENT  PLANNED    DEVELOPMENT  

PLANNED    DEVELOPMENT  

PLANNED    STOPING  

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Page 21: Dalradian corporate presentation sept 10 2013 final

Where  We’re  Headed    

21

§  Deposit  re-­‐evalua8on        Ongoing  §  Drill  results  finalized      Ongoing  §  Historic  sampling  program  comple8on    Ongoing  §  Historic  sampling  interpreta8on  &  results    Ongoing  §  EIA  Requirement  Determina8on    Not  Required  §  Underground  permit      Ongoing  §  Underground  Program  Planning    Ongoing          

NORTHERN  IRELAND  

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Next  Stop  

Underground  Tour  of  Curraghinalt  Deposit  

Page 23: Dalradian corporate presentation sept 10 2013 final

The European Explorer

Patrick F. N. Anderson Chief Executive Officer

Investor Relations

Shae-Lynn Mathers Director, Investor Relations

[email protected] 416.583.5622

Trading Symbol:

DNA on TSX DRLDF on OTCQX

Corporate Office:

Dalradian Resources Inc. 155 Wellington Street West

Suite 2920 Toronto, Ontario

Canada M5V 3H1

www.dalradian.com

Page 24: Dalradian corporate presentation sept 10 2013 final

Oslo  

Kongsberg

SOUTHERN  NORWAY  

NORWAY  

FINLAND  SWEDEN  

RUSSIA  

Land  Posi;on  

Northern  Norway  §  Four  concessions  over  three  greenstone  belts  and  a  

basement  window  §  10  gold-­‐in-­‐+ll  anomalies  iden+fied  

Southern  Norway  §  Kongsberg  concession  hos8ng  an  historic  silver  mining  district  

§  Five  silver  targets  iden+fied    

Rombak

NORTHERN  NORWAY  

Greenstone  Belts  

Volcanic  Belts  &  Metasediments  

Kautokeino Kiwlä   Sakawlampi  

Bidjovagge  

Pasvik

Karasjok

Pechenga  NORWAY  

FINLAND  SWEDEN  

RUSSIA  

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43-­‐101  Resource  

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§  High-­‐grade  1.5M  ounce  gold  resource  (all  categories)1  

−  Indicated:    0.95  MT  grading  13.24  g/t  Au  for  400,000  contained  ounces  

−  Inferred:    2.46  MT  grading  14.64  g/t  Au  for  1.16  million  contained  ounces  

2010  RESOURCE  

Northern  Ireland  

Norway  

1  Refer  to  press  release  dated  Nov.  30,  2011  en8tled  “Dalradian  Announces  Resource  Increase  at  Curraghinalt”  at  www.dalradian.com  

2011  RESOURCE  §  High-­‐grade  2.7M  ounce  gold  resource  

(all  categories)1  

−  Measured:  0.02  MT  grading  21.51  g/t  Au  for  10,000  contained  ounces  

−  Indicated:    1.11  MT  grading  12.84  g/t  Au  for  460,000  contained  ounces  

−  Inferred:    5.45  MT  grading  12.74  g/t  Au  for  2.23  million  contained  ounces  

2007  RESOURCE  §  High-­‐grade  600  k  ounce  gold  resource  

(all  categories)1  

−  Indicated:    0.57  MT  grading  13.95  g/t  Au  for  250,000  contained  ounces  

−  Inferred:    0.64  MT  grading  17.15  g/t  Au  for  350,000  contained  ounces