mcewen mining corporate presentation

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1 1 MUX May 14, 2013

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Page 1: McEwen Mining Corporate Presentation

1 1

MUX

May 14, 2013

Page 2: McEwen Mining Corporate Presentation

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Ignore History at Your Risk

*As of May 14, 2013

Page 3: McEwen Mining Corporate Presentation

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Gold vs Shares

*As of May 14, 2013

Huge Divergence

Page 4: McEwen Mining Corporate Presentation

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White House Effect

-40%

0%

40%

80%

*As of May 14, 2013

84 88 92 96 00 04 08 12

Presidential Election Year Post Election Year

Bre-X

/85 /89 /93 /97 /01 /13 /09 /05

7 8

8 8

Performance of XAU

Page 5: McEwen Mining Corporate Presentation

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MUX

Page 6: McEwen Mining Corporate Presentation

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Cautionary Statement This presentation contains certain forward-looking statements and information, including "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed, as at the date of this presentation, McEwen Mining Inc.'s (the "Company") estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, technical, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, risks related to the cost of transferring or otherwise allocating funds between operating jurisdictions, factors associated with fluctuations in the market price of precious metals, mining industry risks, political, economic, social and security risks associated with foreign operations, risks associated with mining operations, the construction of mining operations and commencement of production and the projected costs thereof, risks related to litigation, property title, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves and other risks. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See McEwen Mining's Annual Report on Form 10-K for the fiscal year ended December 31, 2012 and other filings with the Securities and Exchange Commission, under the caption "Risk Factors", for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information regarding the Company. All forward-looking statements and information made in this presentation are qualified by this cautionary statement.

Page 7: McEwen Mining Corporate Presentation

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Qualify For S&P 500

Our Goal

Page 8: McEwen Mining Corporate Presentation

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Key Assets Gold Bar Gold Permitting El Gallo 2

Silver Permitting

Los Azules Copper Copper Exploration

San José Mine (49%) Silver / Gold

Production

El Gallo 1 Mine Gold

Production

Page 9: McEwen Mining Corporate Presentation

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Resource Base

*See resource table, M&I= Measured & Indicated, B=Billions

M&I Inferred M&I Inferred Indicated Inferred

111 M oz

128 M oz 4.4 M oz

3.6 M oz

5.4 B lbs

Inferred GOLD SILVER COPPER

14.3 B lbs

Page 10: McEwen Mining Corporate Presentation

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Ownership

25% $125 M Cost

Page 11: McEwen Mining Corporate Presentation

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Finances

$50 M No Debt

*As of May 14, 2013

Page 12: McEwen Mining Corporate Presentation

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Revenue

2 Mines San José El Gallo 1

Page 13: McEwen Mining Corporate Presentation

13 *Gold Equivalent

Forecast Annual Production Growth 2015 Est. Cash Cost $750 / oz

2015 Est. Total Sustaining Cost $1,000 / oz

105,000 oz

290,000 oz

130,000 oz 180,000 oz

San José El Gallo 1 El Gallo 2 Gold Bar 2012A 2013E 2014E 2015E

Page 14: McEwen Mining Corporate Presentation

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Contingency, $18.8

Owners Cost, $8.8

Final Engineering, $8.5

Construction Management, $12.0

Spares, $2.0

Construction Labour, $22.0 Plant Equipment,

$57.0

Cement/Steel, $37.0

Construction Equipment, $10.0 Other, $5.0

El Gallo 2 Capex Breakdown $180 Million

Page 15: McEwen Mining Corporate Presentation

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Development Economics

Silver Price / oz

NPV 5% (Millions)

Payback After Tax

IRR

$30.00 $212 2.0 39% $27.50 $165 2.2 33% $25.00 $118 2.6 26% $22.50 $71 3.0 18% $20.00 $23 4.1 10%

El Gallo 2

Page 16: McEwen Mining Corporate Presentation

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MUX Cost of Capital

Page 17: McEwen Mining Corporate Presentation

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Alternatives

-200

-150

-100

-50

0

50

100

Wor

king

Cap

ital (

$ M

illio

ns)

*Gold $1,350 Silver $23.00

Stop all work El Gallo 2 on hold Finish Mill Engineering Stop Gold Bar work

Projects Maintaining Timeline

Q2-13 Q4-14 Q2-14 Q4-13

Cash Scenarios

Page 18: McEwen Mining Corporate Presentation

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Sale / JV Los Azules

Lease / Debt / Equity

Possible Financing Sources

Page 19: McEwen Mining Corporate Presentation

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Los Azules: Possible Source of Funding Asset Sale or JV

For Sale

Page 20: McEwen Mining Corporate Presentation

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Los Azules vs Lumina Copper 50% Resource

Growth Since PEA Los Azules(1)

(McEwen) Taca Taca(2)

(Lumina) Production 375,000 535,000

Capex $2.8 Billion $3.0 Billion Cash Cost Net by-product

$0.96 $1.11

Copper Grade 0.50% 0.45% Strip Ratio 1.3:1 1.6:1 Mine Life 26 Yrs 28 Yrs

1) June 2012. 2) April 2013

Argentina Copper Development Projects

Page 21: McEwen Mining Corporate Presentation

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Los Azules - Copper

Copper Cut-off

Tonnage (Mt) Copper Grade

Contained Copper (B lbs)

Indicated Resource 0.35% 389 0.63% 5.4

Inferred Resource 0.35% 1,397 0.46% 14.3

50% Resource Growth Since PEA

$25 Million Exploration

New PEA Q3

Page 22: McEwen Mining Corporate Presentation

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Comparing Market Caps

McEwen Mining Lumina Copper

*As of May 14, 2013

$640 Million $315 Million

Page 23: McEwen Mining Corporate Presentation

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San José Mine: Forecast 2013

*Silver : Gold ratio (52:1)

Gold & Silver Production, Gold Eq. 102,700 oz

Annual

12 Yr Mine Life

$750 / oz Cash Cost

$1,300 / oz Total Cost

23

High-Grade Gold + Silver

Argentina

Page 24: McEwen Mining Corporate Presentation

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San José: High Grade Comparison of High-Grade Deposits

0

4

8

12

16

20

0 2 4 6 8 10 12 14

HOC / McEwen San José

Size (Million Au Eq. oz)

Gra

de (A

u gp

t Eq.

)

Rubicon Phoenix

Pretium Valley of Kings

Goldcorp Red Lake

Goldcorp Elenore

Goldcorp Cerro Negro

Yamana El Penon

Mine Development Exploration

Page 25: McEwen Mining Corporate Presentation

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El Gallo 1: Forecast 2013 Gold Production 27,300 oz Au

Annual

8 Yr Mine Life

$750 / oz Cash Cost 2013

$1,250 / oz Total Cost

25

Open-Pit Heap Leach

Mexico

Page 26: McEwen Mining Corporate Presentation

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El Gallo 1: Central Zone - Growth

Page 27: McEwen Mining Corporate Presentation

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El Gallo 1: Central Zone - Growth

Page 28: McEwen Mining Corporate Presentation

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El Gallo 1 Expansion

3,000 to 4,500 tpd $5 Million

Page 29: McEwen Mining Corporate Presentation

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El Gallo 1 & 2

+ 500,000 acres 5 Km Apart

Mexico

Page 30: McEwen Mining Corporate Presentation

30 *Silver price assumption $23.50

Plans for 2013 25% Production Growth Start Construction El Gallo 2 Exploration

New Trend @ Los Azules New Approach in Nevada Expanding Resource in Mexico

Finance Completion El Gallo 2 (Equity, Debt, Asset Sale) $150 Million

Page 31: McEwen Mining Corporate Presentation

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El Gallo Twin Domes - Growth

Page 32: McEwen Mining Corporate Presentation

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El Gallo 2: Feasibility Study

*Silver : Gold ratio (52:1), **Silver price assumption $22.50

Construction Forecasted to Begin Q4 2013

105,000 oz Au Annual

$620/oz Cash Cost

$700/oz Total Cost

Mid-2014 Production Starts

Capex $180 Million

Payback** After Tax 3.0 Yrs

32

Mexico

7 Yr Mine Life

Page 33: McEwen Mining Corporate Presentation

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Gold Bar – Cortez Trend, Nevada Next to World’s Largest Gold Mine

Page 34: McEwen Mining Corporate Presentation

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50,000 oz Au Annual

$700/oz Cash Cost

$850/oz Au Eq Total Cost

2015 Production Starts

Gold Bar Production Forecast

*Gold $1,450

Construction Forecasted to Begin 2014 Capex

$55 Million Payback Period*

After Tax 2.1 Yrs

34

Nevada

8 Yr Mine Life

Page 35: McEwen Mining Corporate Presentation

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Development Economics

Gold Price / oz

NPV 5% (Millions)

Payback After Tax

IRR

$1,750 $134 1.6 56% $1,550 $100 1.9 45% $1,350 $65 2.5 33% $1,150 $30 3.8 19%

Gold Bar

Page 36: McEwen Mining Corporate Presentation

36 *Gold Equivalent

Forecast Annual Production Growth 2015 Est. Cash Cost $750 / oz

2015 Est. Total Sustaining Cost $1,000 / oz

105,000 oz

290,000 oz

130,000 oz 180,000 oz

San José El Gallo 1 El Gallo 2 Gold Bar 2012A 2013E 2014E 2015E

Page 37: McEwen Mining Corporate Presentation

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McEwen Mining Management Team ROBERT MCEWEN Executive Chairman and CEO 30 years experience Founder of Goldcorp Honorary Doctor of Law MBA

PERRY ING Chief Financial Officer 15 years experience Controller Goldcorp Consultant Barrick PwC

WILLIAM FAUST Chief Operating Officer 34 years experience COO Crystallex VP Ops Nevada Pacific Gold President Mexico Ops Pan American Silver

IAN BALL Senior Vice President 9 years experience Discovered El Gallo Deposit McEwen Capital Goldcorp

Page 38: McEwen Mining Corporate Presentation

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FERNANDO AGUILAR Operations Manager, Mexico 20 years experience Peñasquito Goldcorp El Sauzal Goldcorp Alamo Dorado Pan American Silver

McEwen Mining Management Team EURIDICE GONZALEZ Country Manager, Mexico 10 years experience Completed land acquisition of El Gallo Complex

NIGEL FUNG Director, Mine Planning 13 years experience Consulting Mine Engineer Tetatech Rosebel Gold Mine IAM Gold

LUKE WILLIS Director, Resource Modelling 13 years experience Red Lake Goldcorp Hemlo Mine Barrick

Page 39: McEwen Mining Corporate Presentation

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NILS F. ENGELSTAD Vice President, Corporate Affairs Hon BA (international relations) Bachelor of Laws (LL.B) Master of Laws (LL.M) Member of Law Society of Upper Canada

McEwen Mining Management Team

SIMON QUICK Vice President - Projects Degree in Economics with Distinction

CARLOS LIGGESMEYER Country Manager, Argentina 15 years experience Certified Public Accountant MBA

ANDREW ELINESKY Vice President – Argentina Corporate Controller Minera Andes

Page 40: McEwen Mining Corporate Presentation

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McEwen Mining Capital Structure

*As of May 14, 2013

Shares Issued & Outstanding MUX (NYSE, TSX) 258.5 Million MAQ (TSX) 38.5 Million Fully Diluted 301.5 Million

Price 52 Week High – Low $4.94 – 1.67

Market Cap Average Daily Vol (12 month)

297.0 Million

$2.15

$640 Million 3.0 Million

Page 41: McEwen Mining Corporate Presentation

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Contact Information Jenya Meshcheryakova Investor Relations

Tel: 1.866.441.0690 x.410

Email: [email protected]

facebook.com/mcewenrob

twitter.com/mcewenmining

store.mcewenmining.com

Page 42: McEwen Mining Corporate Presentation

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San José Mine (49%) (1)

Tonnes (MM*) (100%) Ag Grade (g/t) Au Grade (g/t) Ag (MMoz*)

(100%) Au (MMoz*)(100%)

Proven 0.83 470 6.73 12.54 0.18

Probable 0.94 471 6.19 14.26 0.19

Measured (inclusive of P+P) 1.3 559 8.2 23.17 0.34

Indicated (inclusive of P+P) 3.1 453 6.56 45.12 0.65

Inferred 2.1 476 7.37 32.1 0.5

El Gallo Complex Silver (2)

Tonnes (MM*) (100%) Ag Grade (g/t) Ag (MMoz*)

(100%)

Measured 21.4 71.1 48.8

Indicated 2.6 51.3 4.3

Inferred 27.4 35.1 31

Resource Table: Combined resources calculated using the following.

Page 43: McEwen Mining Corporate Presentation

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El Gallo Complex Gold(2)

Tonnes (MM*) (100%) Au Grade (g/t) Au (MMoz*)

(100%)

Measured 28.3 0.46 0.41

Indicated 6.1 0.78 0.15

Inferred 27.6 0.31 0.27

Gold Bar(3) Tonnes (MM*) (100%) Ag Grade (g/t) Au Grade (g/t) Ag (MMoz*)

(100%) Au (MMoz*)(100%)

Measured 0.7 1.19 0.03

Indicated 18.8 0.94 0.57

Resource Table: Cont’d

Limo (5) Tonnes (MM*) (100%) Ag Grade (g/t) Au Grade (g/t) Ag (MMoz*)

(100%) Au (MMoz*)(100%)

Measured 5.9 0.89 0.17

Indicated 3.7 0.61 0.07

Inferred 2.2 0.7 0.05

Page 44: McEwen Mining Corporate Presentation

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Los Azules(6) Tonnes (MM) Cu Grade (%) Au Grade (g/t) Ag Grade (g/t) Cu (B lbs)

Indicated 389 0.63 0.07 1.8 5.4

Inferred 1,397 0.46 0.06 1.9 14.3

Limo(5) Tonnes (MM*) (100%) Ag Grade (g/t) Au Grade (g/t) Ag (MMoz*)

(100%) Au (MMoz*)(100%)

Measured 5.9 0.89 0.17

Indicated 3.7 0.61 0.07

The cumulative resource and reserve figures set forth above is comprised of the following: (1) The resources and reserves figures on this page were derived from McEwen Mining Inc.’s news release titled “McEwen Mining Announces Record Resource Estimate at the San José Mine in Argentina” released on March 18, 2013 by McEwen Mining. (2) See the El Gallo Report. (3) See the Gold Bar Report. (4) Tonkin resources information was derived from the report “Technical Report on the Tonkin Project” with an effective date of May 16, 2008 prepared by Alan C. Noble, P.E., Ore Reserves Engineering, Richard Gowans, Micon International and Steven Brown, US Gold Corporation. Mr. Noble and Mr. Gowans are independent of US Gold Corporation and a Qualified Person as defined by NI 43-101. (5) Limo resources were derived from the report “NI 43-101 Technical Report for the Limousine Butte Project, White Pine County, Nevada” with an effective date of July 1, 2009 prepared by John Welsh, P. Eng., Kim Drossulis, Senior Engineer, Jonathan Brown, M.B.A., C.P.G., Doug Willis, Geologist, Christine Ballard, Project Geotechnical Engineer, Eric Haddox, P. Eng. (the “Limo Report”). Each of the Limo report authors is independent of US Gold Corporation and a Qualified Person as defined by NI 43-101. (6) Los Azules resources were derived from the news release titled “McEwen Mining's Los Azules Copper Project Continues to Grow!” released on May 15, 2013 by McEwen Mining.

Resource Table: Cont’d