April 2015

Nordgold Investor Day

Gross Project

Oleg Pelevin, Head of Strategy

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Gross – Project Background

Gross – Brief Overview Gross project location

Gross project located in Russia, southwestern Yakutia,

125 km northeast of the Ikabya station on the BAM railway

Gross is 5 km from Neryungri operating mine with access

by all-season road

The project is 100% owned by Nordgold

Gross mining license was granted in May 2013 and pilot

stage mining permit in November 2013

Feasibility study completed in February 2014

The latest R&R audit confirmed

- 4.5 Moz of gold at 0.73 g/t in P & P Reserves

- 8.6 Moz of gold at 0.67 g/t at M,I & I Resources

Open-pit mining with heap leach processing technology

Start of pilot stage operation at the end of February 2014

– processing of Gross ore on existing facilities of

Neryungri mine

Gross Ore Reserve has been approved by Russian state

authority GKZ in November 2014

Obtaining formal project construction permit from Russian

authorities expected in H2 2015

2 year construction time to reach full capacity

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Gross - Major Challenges and Solutions

Gross major technical challenges to overcome…

• Large but low grade deposit for heap leach technology

only

• High seasonality of heap leaching in arctic climate, sharp

slowdown of the process at low temperatures

• Difficult hilly landscape and lack of flat space for large

leach pads

• No access to electric power grid

… and solutions suggested

Dynamic leach pad with stacking ore and removing it

to ore dump after leaching cycle. Only one flat space is

required for life of mine volume of ore processing instead

of three of similar size

Cyanide solution heating to reach high and stable

recovery and eliminate seasonality

Onsite steam coal power plant to supply low cost electric

power and heat

Power plant capacity should be minimized due to

relatively high capital costs and steaming coal supply

volumes

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Feasibility Study - Main Parameters

2014 Feasibility Study main technical solutions and parameters

Open pit mining

Dynamic heap leach processing technology for low grade ore

Ore crushing and conveyor system

Cyanide solution heating to reach stable high recovery

Steam coal power plant to supply electric power and heat. Plant capacity is balanced to provide sufficient electric power for

processing facilities and heat for cyanide solutions

Main technical parameters:

• Total minable Reserve 192 Mt at 0.73 g/t gold, 140 tons or 4.5 Moz of gold

• Average annual ore throughput 12.0 Mtpa

• Average stripping ratio 3.25 t/t

• Recovery 82.5%

• Average annual production 222 kOz

• Life of mine 17 years

• Mining fleet, main equipment 5 Shovels Komatsu PC 3000 15 m3, 40 Trucks Komatsu HD1500 141 tons

• Ore crushing Two stage crushing to -65 mm and -40 mm, 2000 tph

• Ore transportation 5km conveyors from Crusher to Leach pad and to Ore dump

• Heap stockpiling Mobile stacker, Mobile reclaimer, 2000 tph

• Heap design: Dynamic leach pad, 150 days irrigation cycle, 12 m heap height

• Leaching process Steam heated cyanide solution, absorption to activated carbon

• Power and Heat supply Coal power plant, 16 MWt, coal consumption up to 140 000 tons per year

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2014 Pilot Stage Operation Results

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0 10 20 30 40 50 60 70 80 90 100 110 120

Days

Gross 2014 pilot stage ore processing Gross 2014 pilot stage -40mm ore recovery dynamics

Expected

Actual

Excellent 2014 Gross pilot stage results fully confirmed Feasibility Study assumptions for gold recovery

1.8 Mt ore was processed in 2014, about 400 Kt of -40mm and -170mm crushed size ore at metallurgical test level

Gold recovery of 83.7% after 90 days irrigation was achieved for -40mm ore and 82.9% after 140 days for -170mm

This exceeds Feasibility Study parameters – recovery of 82.5% after irrigation period of 150 days for -40mm ore

High recovery of 82.5% for heap leaching assumed in FS is valid based on extensive metallurgical tests

programme

All metallurgical tests conducted to date produced consistently high recoveries in excess of 80%

Recovery

, %

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Inflation and Costs Change Assumptions

The Gross economic model was done in February 2014

In February 2015 the model was adjusted for significant changes in Rouble and USD prices and RUB/USD exchange rate

There is no reliable external forecast for medium-term inflation in Russia and RUB/USD exchange rate in the market

Conservative estimates were done internally

The calculations of project Capex and Opex were done for different exchange rate scenarios,

in particular 50 and 60 RUB/USD

RUB and USD price change assumptions

A B C

1 Currency

2015 price change

estimates

Price change factor for

economic model

2 Imported equipment USD -10% -20% -10% -20%

3 Imported spare parts USD -10% -30% -10%

4 Imported materials USD -10% -30% -10%

5 Cianide USD -17% -10%

6 Russian equipment RUB +5% +20% +20% +30%

7 Russian spare parts RUB +5% +20% +20% +30%

8 Russian materials RUB +10% +20% +20% +30%

9 Diesel fuel RUB -8% +20%

10 Steam coal RUB +5% +20%

11 Service works RUB +10% +20%

12 Labor RUB +10% +20%

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Excellent 2014 Gross pilot stage results fully confirmed Feasibility study assumptions

Gross main economic parameters

A B C D

1 1250 $/Oz gold scenario 2014 FS 2015 Update

2 Exchange rate, RUB/$ 33 50 60

3 Capital to first production, $ mln 303 262 239

4 Average Total Cash Costs, $/Oz 790 679 586

5 Average All-In Sustaining Costs, $/Oz 880 760 667

6 Average EBITDA, $ mln 107 136 152

7 NPV 10%, $ mln 181 425 531

8 Payback period, years * 6,5 3,8 3,3

9 IRR, % 19% 38% 47%

10 NPV 10% =0 breakeven gold price, $/Oz 1 095 885 795

* - from the start of main stage construction

2015 project economic

assessment update

Gross economic parameters have

significantly improved due to

Ruble devaluation

Economic model update was done

with assumptions for medium term

Rouble inflation in Russia and

USD price change for imported

equipment and materials

Calculations were done for two

exchange rate scenarios – 50 and

60 RUB/USD

Conclusions:

With new economic situation in Russia Gross demonstrates excellent economic efficiency with

IRR above 25% at gold price $1,100 and higher

Gross is still the largest project in Nordgold portfolio - with construction works start in the end of 2015

Gross can be put into production in 2017

2015 Project Update Summary

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Gross Resource estimate as of the end of 2013 (SRK), 0.3 g/t cut-off grade

• M+I+I Resources 747 Mt at 0.56 g/t, 13.3 Moz of gold

Ore Reserve and mining schedule has been optimised by Nordgold.

Mining part of Hatch project is prepared in order to meet Russian Reserve

requirements

Single open pit has been optimised for Gross orebody at 0.4 g/t cut-off grade

Open pit parameters

• Total rock movement 836 M tons

• Ore reserve 192 M tons at 0.73 g/t, 2.3 g/t silver

• Gold 140 tons or 4.5 Moz

• Stripping ratio 3.25 t/t

• Pit slope angle 45 degrees

Three stages of pit development with two cut-backs and increases in waste

volumes. Lowest stripping ratio in the first years of production

Final open pit and waste dumps

Final open pit design and transport system

Gross Reserve and Open Pit Model

Gross ore body model and open pit, North-south cross section

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Gross processing facilities location map

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Gross main production facilities

1 Open pit

2 Crushers

3 Conveyor system

4 Leach pad

5 Solution ponds

6 Processing plant

7 Maintenance shops

8 Power plant

9 Camp

10 Spent ore dump

11 Precipitation pond

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Due to difficult landscape and the lack of flat

terrain location of facilities has been selected

primarily to minimise rock movement for

construction

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Dynamic Leach Pad Design

Dynamic leach pad technology

Due to hilly landscape around Gross we choose a dynamic

leach pad design

Leach pad is divided into 5 segments. At any time of the

cycle 2 segments are irrigated, 1 is prepared to irrigation, 1

is loaded with fresh ore and 1 is unloaded to ore dump

Dynamic leach pad main parameters

• Annual capacity 12 Mt of ore

• Total size 1200 x 600 m

• 5 segments each of 2.4 Mt of ore

• Heap height 12 m

• Stacker, reclaimer capacity of 2000 tph

• Irrigation cycle 150 days

• Cyanide solution is heated to +30 C degrees

Dynamic pad is implemented on a number of mines:

• 3 copper mines of Codelco (Chile), dynamic pads with

capacity 8,000-10,000 tph

• Copper mine of Barrick (Chile), capacity 5,000 tph

• Nickel mine of Talvivaara (Finland), capacity 2,000 tph

Current leach pad design was done with reserve in capacity

• Smaller pad with 4 segments instead of 5 and shorter

irrigation cycle, i.e. considerable Capital and Operating

costs reduction

• The decision was based on pilot stage metallurgical test

results

Dynamic leach pad and ore handling system

1200

60

0

Mobile

reclaimer

Conveyor

Conveyor

From

crusher

Mobile reclaimer

Mobile stacker

Main ore handling equipment

Mobile feeder

Mobile feeder

Heap

Heap

Irrigated

heap

Irrigated

heap

Heap

stockpiling Heap

unloading

To ore

dump

Mobile

stacker

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Crushing circuit design

Gyration crusher design Dynamic leach pad technology

Two stage crushing circuit has been suggested for

Gross ore processing by Hatch

First stage crushing

• Gyration crusher is considered as the most cost

effective

• One crusher 2000 tph capacity

• Crushing size -65 mm

Second stage crushing

• Cone crushers

• Two crushers 1000 tph capacity each

• Crushing size -40 mm

Based on metallurgical tests it is expected that target

recovery can be achieved with one stage crushing

during first 5 years of Life of mine when the ore is more

oxidised

Second stage crushing will be included into technology

scheme from the sixth year of production

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Gross Life of Mine Parameters

Our base case scenario assumes

gold price of US$1,250/oz and

exchange rate at RUR50/US$

Life of Mine, years 20

Initial Capex, US$ million 260

LOM Average Parameters

Ore mined, kt 12,000

Ore processed, kt 12,000

Strip ratio, t/t 3.3

Grade mined, g/t 0.70

Recovery, % 82.5

Annual production, koz 234

TCC, $/oz 679

AISC, $/oz 760

Annual sustaining Capex, $mln 18.5

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Gross - Current Status and Next Steps

Current status

Hatch completed Feasibility study in February 2014

Pilot stage operation started in April 2014. Excellent results fully confirmed assumptions for gold

recovery

Gross ore Reserve has been approved by Russian state authority GKZ in November 2014

Feasibility study has been submitted in December 2014 and Environmental permit has been granted

in February 2015

Next steps

Continuing pilot stage operations in 2015

Obtaining formal project Construction permit in H2 2015

Detailed design works can be started in Q2-Q3 2015 and construction in 2015, subject to approval of

2015 budget and Construction permit receiving

With construction works start in the end of 2015 Gross can be put into production in 2017

Consider different options for Gross project financing

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Project Summary

World class ore body: 4.5 Moz at 0.73 g/t at P&P Reserves and 8.6 Moz at 0.67 g/t

M,I&I Resources

Straightforward low cost heap leach metallurgy with excellent recovery rate at above

82.5%

Located just 5 km from Nordgold’s Neryungri mine with all necessary infrastructure

Feasibility study indicates very strong project economics with IRR above 25% at gold

price US$1,100/oz and higher

The successful pilot production confirms the project recovery, low cost and robust

economics. Decreases execution risk