Fully funded, permitted, and in construction. First gold pour on target for Q4 2015. Our strategy is disciplined. Determined. Focused on exploring, developing and operating mines. With low cost of entry. Low capital expenditures. And simple technical operations. Our Karma Project in Burkina Faso, West Africa, perfectly reflects this disciplined approach. Open-pittable, freedig deposits. A proposed centralized, low-cost, heap-leach processing facility. Karma Project Advancing The Karma Project is fully funded and permitted, and is one of a select few gold mines under construction globally. It is scheduled to be the next gold mine to go into production in Burkina Faso. The Karma Project Feasibility Study1 supports a technically simple, open-pit heap leach operation that offers high-margins, low capital and operating costs, rapid payback and strong financial performance at the current gold price. Currently in construction, True Gold has spent and committed approximately US$51.5 million, or more than 39% of the US$131.5-million initial capex, and is on track to pour gold by Q4 2015. The mine will produce an average of 97,000 ounces of gold per year over 8.5 years, at direct cash operating costs of US$550 an ounce. A centralized heap leach processing facility will process leachable material from five pits. The two pits with the highest-grade ore would be mined first, providing True Gold with strong cash flow at production launch. True Gold recently completed a PEA on the North Kao Deposit, which provides a blueprint on how the Company can expand mine life and the production profile at Karma. North Kao will have a production rate of 118,000 oz Au/year on average over a 2.5 year mine life. It has an after-tax IRR of 213% and a NPV @ 5% of $69.6 million. There are plans to integrate the North Kao Deposit into the current Karma mine plan. Exploration is ongoing, with more than 40 high-priority exploration targets over the 856-square-kilometre property. Exploration will be focused on discovering new domains of open-pit, leachable materail that could be incorporated into a future mine plan. (1) See Technical Report, Updated Resource Estimate and Feasibility Study on the Karma Gold Project prepared by P&E Mining Consultants Inc. dated effective December 17, 2013, available on the Company’s www.Sedar.com profile. Karma Project Feasibility Study Highlights2: • Gold price: Base case economic evaluation: US$1,250/oz Au • Probable Mineral Reserves: 33.2 Mt @ 0.89 g/t containing 949,000 oz Au • Production: 97,000 oz Au/ yr over an 8.5-year mine life • Initial Capex: US$131.5 million (includes working capital and contingency) • NPV @ 5%3: US$198.8 million (after tax) • IRR: 46.3%3 (after tax) • Payback: 1.33 years (after tax) • Resilience: 26%3 IRR at US$1,000/oz Au • Direct cash operating costs4: US$550/oz • Total cash costs5: $630/oz • All-in sustaining cash costs6: US$678 (After-tax economic highlights represent True Gold’s anticipated 90% interest in the Karma Project, taking into account Burkina Faso’s 10% carried interest and all government and contractual royalties). (2) Reflects cost-savings of the long-term cement contract procured. (3) Compared to metrics disclosed in the Technical Report. (4) Includes all mining costs, processing costs, on-site G&A. (5) Includes all direct operating cash costs plus refining cost and royalties. (6) Includes all total cash costs plus sustaining capex. Karma Project Attributes • Fully financed, permitted, and in construction • Key partners: Franco-Nevada, Sandstorm Gold, Liberty, and Teck • Up to US$120M financing secured from FrancoNevada/Sandstorm • After-tax IRR of 46.3%, NPV (5%) US$198.8 million @ US$1,250/oz gold • Excellent existing infrastructure (water, roads, labour, off-site accommodation) • Exceptional gold jurisdiction (nine mines permitted in past eight years) • Proven mine builders/operators team in place • Engineered by design for flexible, adaptable and incremental scale-up potential • ~C$46 M cash on hand to meet project equity requirements. • Resilient at $1,000 gold: 26% IRR Karma Project Growth • ~856km² land package with +100km aggregate strike corridor • More than 40 high-priority targets with 100% hit rate to date • Three major gold trends: Kao Gold Trend: 10km long corridor and open; 410,000 ounces Probable Mineral Reserves* (leachable) to date. The Golden Arch: 28km long corridor and up to 3kms wide; 539,000 ounces of Probable Mineral Reserves* (leachable) to date. The Rounga Domain: Multiple NE trending splays off country-scale shear zone. TSX.V: TGM www.truegoldmining.com PRODUCTION Directors & Management Analyst coverage Key Financial Statistics True Gold is led by a team of proven mine-builders with global experience in operations and mine development, exploration, project finance and capital markets. • BMO Capital Markets (as at November 19, 2014) • CIBC • Shares outstanding: 397.57 million • Clarus Securities • Cash: ~$46 million • Cormark Securities • Edgecrest Capital • Stock options outstanding: 20.66 million • Haywood Securities • Major shareholders: • Jennings Capital • National Bank Financial • RBC Capital Markets • Scotia Capital Markets Directors: Mark O’Dea, Executive Chairman Dwayne Melrose, Director Michael McInnis, Director Donald McInnes, Director Nolan Watson, Director Rick Bailes, Director Robert Martinez, Director Robin Merrifield, Director Stephan Theron, Director Directors, management & associates: ~10% Mark O’Dea: 2.41% Total strategic: ~31% Liberty: 19.5% Teck: 11.5% Total institutional: ~16% Management Mark O’Dea, Executive Chairman Dwayne Melrose, President and Chief Executive Officer Peter Carter, Chief Operating Officer and Vice President Engineering Ryan Torvik, Chief Financial Officer Scott Heffernan, Vice President, Exploration Alex Holmes, Vice President, Business Development Blaine Monaghan, Director of Investor Relations Tel: 604-801-5020 Email: [email protected] www.truegoldmining.com Suite 1900 - 1055 West Hastings Vancouver, BC Canada V6E 2E9 Cautionary language *See NI 43-101 Technical Report, Updated Resource Estimate and Feasibility Study on the Karma Gold Project, prepared by P&E Mining Consultants Inc. dated effective December 17, 2013, available on our website at truegoldmining.com or on SEDAR at www.sedar.com. Scott Heffernan, M.Sc., P. Geo., Vice-President Exploration for True Gold and a “qualified person” within the meaning of National Instrument 43-101., has approved the technical content of this fact sheet. All statements, other than statements of historical fact, set forth herein including statements relating to True Gold’s future operating or financial performance, development and projected production timeline for the Karma Project and True Gold’s other projects and other statements not supported by fact are forward-looking statements within the meaning of applicable securities laws. Forward-looking statements involve various risks and uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements are based on certain assumptions which the Company believes are reasonable, including that: all necessary government and third party permits, approvals and licences necessary for the planned exploration and development of the Company’s mineral projects will be obtained in a timely manner and on terms acceptable to the Company; key management and directors will continue to be retained by the Company; any proposed future development of the Company’s mineral projects will be viable operationally and economically and proceed as expected; that the company will be able to access required financing; and the other assumptions listed in the section entitled “Cautionary Statement Regarding Forward-Looking Statements” in the Company’s annual information form which is available under the Company’s profile on the SEDAR website at www.sedar.com. United States investors are cautioned that the requirements and terminology of Canadian NI 43-101 and the CIM Standards on Mineral Resources and Reserves – Definitions and Guideline differ significantly from the requirements and terminology of the United States Securities and Exchange Commission (“SEC”) set forth in the SEC’s Industry Guide 7 (“SEC Industry Guide 7”). Accordingly, the Company’s disclosures regarding Probable Mineral Reserves may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. This fact sheet and the disclosure contained therein DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES OF TRUE GOLD MINING INC.
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