new leader in precious metals - tahoe resources leader in precious metals ... aisc/oz produced $8.00...

New Leader in Precious Metals


Denver Gold Forum

September 18 – 21, 2016


Safe Harbour Disclaimer

This presentation contains “forward-looking information” within the meaning of applicable Canadian securities legislation, and “forward-looking statements” within the meaning of

the United States Private Securities Litigation Reform Act of 1995 (collectively referred to as “forward-looking statements”). All statements, other than statements of historical fact,

are forward-looking statements. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intend", "continue", "budget", "estimate", "may", "will", "schedule" and

similar expressions or statements identify forward-looking statements. Forward-looking statements in this presentation include, but are not limited to, statements and/or

information related to: (i) the Company’s 2016 outlook and production guidance, including estimates related to gold and silver mineral reserves and mineral resources,

production, total cash cost per ounce, all-in sustaining cost per ounce, capital expenditures, corporate general and administration expenses and exploration expenses, (ii)

estimated production over the life of the Escobal, La Arena, Timmins West and Bell Creek mines, (iii) estimates of royalties and taxes paid in Guatemala, Peru and Canada, (iv)

the timing of the anticipated commencement of commercial production at Shahuindo and the 144 Gap Deposit, (v) the advancement of exploration and development projects in

Guatemala, Peru and Canada, (vi) estimated mill and leach pad recoveries, smelter payables and doré and silver concentrate details over the first ten years of mine life, and (vii)

estimated production rates, grades, recoveries and costs at the Company’s operations in Guatemala, Peru and Canada. Forward-looking statements are based on

management’s reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management’s experience and perception of trends, current

conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect.

Assumptions have been made regarding, among other things: the Company’s performance and ability to implement operational improvements at the Escobal, La Arena, Timmins

West and Bell Creek mines; the Company’s ability to carry on exploration and development activities, including construction; the timely receipt of required approvals; the price of

silver, gold and other metals; prices for key mining supplies, including labor costs and consumables, remaining consistent with the Company’s current expectations; production

meeting expectations and being consistent with estimates; plant, equipment and processes operating as anticipated; there being no material variations in the current tax and

regulatory environment; the Company’s ability to operate in a safe, efficient and effective manner; the exchange rates among the Canadian dollar, Guatemalan quetzal, Peruvian

sol and the United States dollar remaining consistent with current levels; and the Company’s ability to obtain financing as and when required and on reasonable terms. Readers

are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. The Company’s actual results, programs and financial position

could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, risks and uncertainties, many of which are beyond the

Company’s control. These include, but are not necessarily limited to: the fluctuation of the price of silver, gold and other metals; changes in national and local government

legislation, taxation and controls or regulations; social unrest, and political or economic instability in Guatemala and/or Peru; the availability of additional funding as and when

required; the speculative nature of mineral exploration and development; the timing and ability to maintain and, where necessary, obtain necessary permits and licenses; the

uncertainty in the estimation of mineral resources and mineral reserves; the uncertainty in geologic, hydrological, metallurgical and geotechnical studies and opinions;

infrastructure risks, including access to water and power; the impact of inflation; changes in the administration of governmental regulation, policies and practices; environmental

risks and hazards; insurance and uninsured risks; land title risks; risks associated with illegal mining activities by unauthorized individuals on the Company’s mining or exploration

properties; risks associated with competition; risks associated with currency fluctuations; contractor, labor and employment risks; dependence on key management personnel

and executives; the timing and possible outcome of pending or threatened litigation; the risk of unanticipated litigation; risks associated with the repatriation of earnings; risks

associated with negative operating cash flow; risks associated with the Company’s hedging policies; risks associated with dilution; and risks associated with effecting service of

process and enforcing judgments. For a further discussion of risks relevant to the Company, see the Company’s Annual Informat ion Form available on SEDAR at

www.sedar.com under the heading “Description of Our Business – Risk Factors”. For a discussion of risks and uncertainties affecting the Company’s Canadian operations, see

Lake Shore Gold’s most recent Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are available on SEDAR under Lake

Shore Gold’s issuer profile. There is no assurance that forward-looking statements will prove to be accurate. Actual results, performance or achievement could differ materially

from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking

statements will transpire or occur, or if any of them do so, what benefits may be derived there from. Accordingly, readers should not place undue reliance on this information.

Tahoe does not undertake to update publicly or revise any forward-looking statements, except as, and to the extent required by, applicable securities laws. For more information

about the risks and challenges of Tahoe’s business, investors should review Tahoe’s current Annual Information Form available at www.sedar.com. All prices in U.S. Dollars

unless otherwise stated.

2

http://www.sedar.com/


Tahoe – New Leader in Precious Metals

3

Responsible, low-cost production

Long-lived precious metals mines

Substantial free cash flow

Strong balance sheet with net cash

Large portfolio of growth assets

Experienced management team

Delivering shareholder value


Record Half-Year Cash Flow/Share

4

Solid financial and operating results in Q2 YTD 2016

Operating cash flow(1) $185.3 or $0.69/share (Q2: $116.0M or $0.38/share)

Adjusted earnings(2) $93.4M or $0.35/share (Q2: $57.9M or $0.19/share)

Operating cash flow of $128.5M or $0.42 per share

36,000 tpd Shahuindo expansion underway

Bell Creek shaft project advancing, Goldcorp 2.25% NSR royalty acquired

Reorganization completed for long-term project development

Silver Gold

Q2 YTD Q2 YTD

Production 5.7 moz 11.4 moz 109.7 koz 167.2 koz

Total cash cost/oz(2)(3) $6.07 $5.29 $647 $645

AISC/oz(2)(3)(4) $8.16 $7.06 $973 $930

(1) Cash flow provided by operating activities before changes in working capital

(2) Non-GAAP measures, see endnote for disclosures related to Non-GAAP measures

(3) Based on ounces produced net of byproduct credits

(4) Refers to all-in sustaining costs


2016 Corporate Guidance – Silver Guidance Improved

5

2016 Production Silver Gold

New Previous

Production 18 – 21 moz 18 – 21 moz 370 – 430 kozs

Total cash cost/oz $5.50 – $6.50 $7.50 – $8.50 $675 – $725

AISC/oz produced $8.00 – $9.00 $10.00 – $11.00 $950 – $1,000

Corporate Guidance ($ Millions)

Sustaining Capital $115 - $135 million

Project Capital $80 - $105 million

Total Capital $195 - $240 million

Corporate G & A (includes non-cash compensation) $45 - $50 million

Exploration expenses $15 - $20 million


Financial Strength

6

$152M

Cash & equivalents

$35M

Debt

Returning capital to shareholders - $0.02/month dividend

Shares O/S 311 million

Price (Sept. 14, 2016) C$17.77

Market Capitalization $4.2 billion

52 Week High/Low C$22.13/9.45

3M av. Daily Volume 3,358,000

Tahoe Resources: TSX:THO

$117M

Net cash

1-Year Price Change: +80%


Accountability

• Conducts business to highest international CSR standards:

Good Governance

Transparency

• GRI-compliant sustainability reporting

Awards

• CSCS: Best Sustainability, Ethics and Governance Program

• BWI: TopGun Company, BOD and CEO

Social Responsibility

7

UN Guiding Principles on

Business & Human Rights

Voluntary Principles on

Security & Human Rights

IFC Performance

Standards

Equator Principles

CSR PolicyHuman Rights Policy


Grow low-cost gold production to >550 koz/year

Gold production in Peru to 300 koz/year by 2018

Gold production in Timmins to >250 koz/year by 2020

Silver production at Escobal mine steady at ~20.0 moz/year

Grow mine life at all operations

>20 years in both Guatemala and Peru

Reserve/Resource growth in Timmins 2.0 to 4.0 moz

Tahoe By 2020(1)

8

(1) Contains Forward-looking Information

(2) 2015 gold production pro forma to include full-year results from Rio Alto

(3) Q2 YTD 2016 results pro forma to include six-month results for Lake Shore Gold Division

230 204(Q2 YTD)

370 – 430

>550

2015 2016 2020

Projected Gold Production(2)(3)

(000's of Ounces)

Actual Target Range


Escobal: World’s Third Largest Silver Mine

9

Low-cost production

11.4 moz silver produced H1/16, 5.7 moz Q2/16

Total cash costs: $5.29/oz H1/16; $6.07/oz Q2/16

AISC: $7.06/oz H1/16; $8.16/oz Q2/16

Op. cost/tonne: $95.80 2014, $79.11 2015, $73.24 Q2 YTD 2016

Strong profitability and cash flow Mine operating earnings: $81.6M in H1/16, $49.9M in Q2/16

Long reserve life (~18 years currently)

P&P reserves: 29.1M tonnes @ 332 gpt for 310.4 moz


La Arena: Low-Cost Gold Production

10

Open-pit heap leach gold mine

Two deposit types: oxide and sulfide (currently mining oxides)

Solid operating performance

Production: 97.5 koz H1/16, 50.9 koz Q2/16

Total cash costs: $645/oz H1/16, $645/oz Q2/16

AISC: $859/oz H1/16, $880/oz Q2/16

Operating earnings: $41.1M H1/16, 18.2 M Q2/16

Significant growth potential from Au/Cu Sulfide Deposit


Shahuindo: Near-Term Growth

11

(1) Example of forward-looking information

Shallow open-pit heap leach project

Phase 1 commercial production effective May 1, 2016 10,000 tpd, @ 75 koz/year

Q2 2016 production: 16.9 koz (11.1 koz commercial oz)

Q2 2016 total cash costs: $684/oz, AISC: $997/oz

Operating earnings: $8.1M (May 1 to June 30/16)

Phase 2 in 2018 – 36,000 tpd, approximately 170 koz/year(1)

Ongoing exploration potential


Timmins Mines: Quality Assets in Low-Risk Jurisdiction

12

Two underground mines with central milling facility

Multiple growth projects in close proximity to infrastructure

Production: 39.2 koz Q2/16 (acquired April 1/16)

Total cash costs: $634/oz Q2/16

AISC: $1,087/oz Q2/16

Operating earnings: $5.9M Q2/16


Timmins Mines: Focused on Growth

13

Objective 1. – Grow production to >250 koz/year by 2020(1)

Deepen shaft at Bell Creek – increase production, extend mine life

Advance Whitney open-pit/underground project

Bring 144 Gap Deposit to full-production


Objective 2. – Increase reserves/resources 2.0 to 4.0 moz by 2020(1)

Drilling at depth – Timmins West & Bell Creek Mine

Accelerate drilling at Whitney and along 144 Trend

New drilling at Gold River, potential new programs at Fenn-Gib/Juby


2,050

3,000

5,350

7,500

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Base Case Expected Case Likely Upside Additional Upside

Go

ld P

rod

uc

tio

n (

00

0's

ou

nc

es

)

14

40% Production Growth by 2020 and Accelerated Exploration(1)

~2.05Mozs production

Timmins West

Bell Creek

144 Gap Deposit

~1Mozs additional ounces

Bell Creek Deep

144 Gap

144 SW

Whitney Open Pit

~2.45Mozs additional ounces

Whitney Underground

Fenn-Gib

Marlhill

Vogel

~2.1Mozs additional ounces

Gold River

Juby

1. Bell Creek shaft project

2. Accelerated development of 144 Gap

3. Increased exploration drilling

4. Advancing Whitney


Longer term projects

Timmins Growth Potential: Unlocking Value


Timmins West Mine – Developing 144 Gap

910mL

Exploration

Drift

Exploration Drift

off TC Ramp

~TC850mL

Could test down-

plunge extension

approx. 425m

Could test down-

plunge extension

approx. 250m

South-West Zone

Timmins Deposit Thunder Creek 144 Gap

TC395mL

650mL

270mL

TC765mL

HWY 144 Drift

144 Gap DepositIndicated: 1,734,000 tonnes @ 5.41 gpt (301.7k oz)

Inferred: 1,914,000 tonnes @ 5.19 gpt (319.2k oz)

Exploration

Drift

off TM Ramp

~1230mL

15


Bell Creek Complex: Near-Term Growth

16


Bell Creek – Shaft Project – US$80 Million

Double annual production

Achieve >80,000 oz/year

Maintain lower mining cost

Cash costs <US$650/oz

AISC <US$850/oz

Improve productivity

Man travel down shaft

Material via ramp

Extend mine life

Add 5 – 10 years

Unlock exploration potential

Provide deeper exploration platforms

Target Completion: End of 2018

17


Whitney – Potential for Open Pit & U/G Operations(1)

18

- 500m

Surface

Broulan Reef C Zone Bonetal Hallnor

Lower

Hallnor250

m

Legend

Drillhole

CurrentDrillhole

Block Grade

3-5 g/t Au

5-8 g/t Au

+8 g/t Au

- 1000m

- 1500m

TW08-77w78.0g/2.0m

TW08-77w418.9g/0.8m

TW08-77w7141.5g/0.5m

TW08-77w621.0g/2.3m

TW08-7721.1g/6.6m

(270.6g/0.5m)30.7g/0.95m

BR18-17771.9g/4.8m

(228.0g/1.52m)

BR25-23235.9g/1.1m

BR25-2969.4g/7.5m

(89.1g/0.46m)

15709342.9g/0.2m

(1) Select historic intersections shown

Historic

Hallnor

Shaft

Historic Broulan Reef

Shaft

New Leader in Precious Metals 19

Fenn-Gib @ 60 km east of Bell Creek Complex

Large, near-surface resource, potential open-pit

1.3 moz M&I resources, 0.8 moz inferred

Major extensions in multiple directions

Juby @ 100 km south of Timmins, Ontario

Large resource, open-pit potential

1.1 moz of indicated, 2.9 moz Inferred

La Arena Potential large-scale Cu/Au sulfide project

Reserves: 0.6 moz Au, 0.6 blbs Cu

Resources: 2.1 moz Au, 2.0 blbs Cu

Long-Term Project Pipeline(1)

(1) See Slide 25 for more information on reserves and resources at these projects


Tahoe – New Leader in Precious Metals

20

Low-cost production – strong FCF 370 – 430 koz gold & 18 – 21 moz silver per year

Silver cash costs $5.50 to $6.50/oz, AISC $8.00 to $9.00/oz

Gold cash costs $675 to 725/oz, AISC $950 to $1,000/oz

$185.3M cash flow from operating activities in first half 2016

Strong net-cash balance sheet $152M cash and equivalents at June 30, 2016

$35M in debt

Untapped $150M credit facility

Large portfolio of growth assets Growing gold production in Peru and Canada

Attractive exploration targets in all regions

Responsible, experienced management team

Delivering shareholder value Peer-leading and sustainable monthly dividend

Share price up over 200% since 2010 IPO


Appendices

21


Guatemala Resources & Reserves – January 2016

22

ESCOBAL

Measured & Indicated Mineral Resources

Tonnes (M)

Silver (g/t)

Gold (g/t)

Lead (%)

Zinc (%)

Silver (koz)

Gold (koz)

Lead (ktonnes)

Zinc (ktonnes)

36.5 332 0.33 0.71 1.18 389,437 385.0 260.2 430.5

Inferred Mineral Resources

Tonnes (M)

Silver (g/t)

Gold (g/t)

Lead (%)

Zinc (%)

Silver (koz)

Gold (koz)

Lead (ktonnes)

Zinc (ktonnes)

1.4 205 1.11 0.24 0.45 9,320 50.4 3.4 6.3

Proven & Probable Mineral Reserves

Tonnes (M)

Silver (g/t)

Gold (g/t)

Lead (%)

Zinc (%)

Silver (koz)

Gold (koz)

Lead (ktonnes)

Zinc (ktonnes)

29.1 332 0.33 0.73 1.19 310,418 304.6 211.9 346.9


Peru Resources & Reserves – January 2016

23

LA ARENA


Material Type

Tonnes (M)

Gold (g/t)

Copper (%)

Gold (koz)

Copper (Mlbs)

Oxide 120.8 0.32 - 1,241 -

Sulfide 274.0 0.24 0.33 2,124 2,014

Total M&I 394.8 0.26 0.23 3,365 2,014

Totals may not add due to rounding


Material Type

Tonnes (M)

Gold (g/t)

Copper (%)

Gold (koz)

Copper (Mlbs)

Oxide 2.5 0.32 - 25 -

Sulfide 5.4 0.10 0.19 18 22

Total Inferred 7.9 0.17 0.13 43 22



Material Type

Tonnes (M)

Gold (g/t)

Copper (%)

Gold (koz)

Copper (Mlbs)

Oxide 80.3 0.36 - 919 -

Sulfide 63.1 0.31 0.43 633 580

Total P&P 143.4 0.34 0.19 1,552 580


SHAHUINDO


Material Type

Tonnes (M)

Gold (g/t)

Silver (g/t)

Gold (koz)

Silver (koz)

Oxide 143.1 0.50 6.7 2,282 30,679

Sulfide - - - - -

Total M&I 143.1 0.50 6.7 2,282 30,679



Material Type

Tonnes (M)

Gold (g/t)

Silver (g/t)

Gold (koz)

Silver (koz)

Oxide 2.6 0.42 7.4 36 626

Sulfide 87.7 0.71 21.1 2,002 59,441

Total Inferred 90.3 0.70 20.7 2,038 60,067



Material Type

Tonnes (M)

Gold (g/t)

Silver (g/t)

Gold (koz)

Silver (koz)

Oxide 111.9 0.53 6.8 1,906 24,541

Sulfide - - - - -

Total P&P 111.9 0.53 6.8 1,906 24,541



Canada Resources & Reserves – January 2016

TIMMINS WEST

Indicated Mineral Resources

Deposit Tonnes

(M) Gold (g/t)

Gold (koz)

Timmins 1.8 5.08 296

Thunder Creek 2.2 4.27 306

144 Gap 1.7 5.41 302

Total Indicated 5.8 4.87 903



Deposit Tonnes

(M) Gold (g/t)

Gold (koz)

Timmins 0.6 4.75 93


144 Gap 1.9 5.19 319

Total Inferred 2.7 5.00 429


Probable Mineral Reserves

Deposit Tonnes

(M) Gold (g/t)

Gold (koz)

Timmins 1.4 4.4 196


144 Gap - - -

Total Probable 2.9 4.2 392


BELL CREEK


Tonnes (M)

Gold (g/t)

Gold (koz)

4.8 4.4 680


Tonnes (M)

Gold (g/t)

Gold (koz)

4.1 4.4 584


Tonnes (M)

Gold (g/t)

Gold (koz)

2.1 4.5 309


Quality Mines & Growth Projects(1)(2)

25

(1) Includes examples of forward-looking information

(2) M&I resources reported inclusive of mineral reserves

La Arena Sulfides

Reserves Au 0.6 moz @ 0.31gpt

Reserves Cu 0.6 blbs @ 0.43%

M&I Res. Au 2.1 moz @ 0.24gpt

M&I Res. Cu 2.0 blbs @ 0.33%

Shahuindo Sulfides

Inf. Res. Au 2.0 moz @ 0.71gpt

Inf. Res. Ag 59 moz @ 21gpt

Timmins West Bell Creek

2016E Prod. 170-180 koz Au

Cash Costs <$650/oz

AISC <$950/oz

Reserves Au 0.4 moz @ 4.20gpt 0.3 moz @ 4.50gpt

M&I Res. Au 0.9 moz @ 4.87gpt 0.7 moz @ 4.39gpt

Inferred Res. Au 0.4 moz @ 5.00gpt 0.6moz @ 4.40gpt

Americas-Based Precious Metals Producer – Canada, Guatemala, Peru

Other Lake Shore Assets

Resources M&I (moz) Inferred (moz)

Whitney 0.7 @ 6.85g/t 0.2 @ 5.34g/t

Gold River 0.1 @ 5.29g/t 1.0 @ 6.06g/t

Juby 1.1 @ 1.28g/t 2.9 @ 0.94g/t

Fenn-Gib 1.3 @ 0.99g/t 0.8 @ 0.95g/t

Escobal

2016E Prod. 20-21 moz Ag

Cash Costs $5.50-$6.50/oz

AISC $8.00-$9.00/oz

Reserves Ag 310 moz @ 332g/t

M&I Res. Ag 389 moz @ 332g/t

La Arena Oxides Shahuindo Oxides

2016E Prod. 200-250 koz Au

Cash Costs $700-$750/oz

AISC $950-$1,050/oz

Reserves Au 0.9 moz @ 0.36g/t 1.9 mozs @ 0.53g/t

M&I Res. Au 1.2 moz @ 0.32g/t 2.3 mozs @ 0.50g/t


Shahuindo Mine Expansion Targets

26


El Alizar project – Drill target


Canada: Abitibi Greenstone Belt

28

>200 km2 land position prolific mining camp

Two operating mines and central mill

Attractive growth projects near existing infrastructure

Significant exploration potential in favourable geology

Low-risk jurisdiction, long tradition of mining

Approx. 140M oz Au mined from Timmins to Val d’Or


Timmins West: Potential for Multiple Deposits

29


Timmins West – Exploration Objectives

30

Timmins Deposit Thunder Creek 144 Trend Gold River Trend

Deep drill hole completed in

Feb 2012 intersects Timmins

Deposit Fold Nose 1.9 km down

plunge from deepest level

Strong similarities in rock type,

alteration and veining to

Timmins Mine near 650 level

Near-term drilling targeting

500m vertical interval below

current resource (1300 -1800

Levels)

Targeting 500mVertical Interval

Exploration Drift off TC Ramp ~TC850mL

Key target is the down plunge

extension of the Rusk and

Porphyry zones below 900 level

Drilling to commence in early

2017 from new platform being

developed near 850 level

Testing to cover minimum of

300m along strike and 300m to

depth

Highly prospective mineralized

trend with 2.5 km strike length

Over a million ounces in

resource, majority within 400 m

from surface

High-grade core includes

310,900 oz @ 9.81 gpt (between

400 and 800 m)

Excellent potential for resource

expansion, new discoveries

New exploration to evaluate zone

extensions planned to

commence in Q3

Metallurgical results encouraging

1700m

Large scale alteration and

structural corridor with potential

for multiple gold deposits

Key targets include 144 Gap,

144 North and 144 South

Current focus on infill and

extension drilling at 144 Gap

Drilling to test new targets to SW

of 144 Gap commencing in late

Q2


Bell Creek & Whitney – Exploration Objectives

31

Bell Creek Whitney

Key exploration targets at Bell Creek include extensions of current resource to

west and to depth

Deep drilling planned for 2017 to test to 1775m level to be carried out from new

underground platforms at 1250 level

Exploration at Whitney focused on near surface mineralization

located within 3km strike length between Hallnor and Broulan

Reef

Results of drilling to date show excellent potential for increasing

open pit and underground resource

Historic Drill Intercepts:

BC-08-06: 4.15//3.10m

BC-08-08: 5.02gpt/4.80m

BC-08-06

BC-08-08

Recent Drilling 500m to west:

BC-15-106

3.96gpt Au/4.00m

3.92gpt Au/4.10m

Key Target West of Mine

Target at depth requires drill platform near 1,250 Lvl


Non-GAAP Measures

32

The Company has included certain non-GAAP financial measures throughout this presentation which include total cash costs and all-in

sustaining costs per silver and per gold ounce (“all-in sustaining costs”). These measures are not defined under IFRS and may be calculated

differently by other companies depending on the underlying accounting principles and policies applied. As such, these Non-GAAP should not

be considered in isolation. These non-GAAP financial measures. The Company’s Escobal mine produces primarily silver in concentrates with

other metals (gold, lead and zinc), produced simultaneously in the mining process, the value of which represents a small percentage of the

Company’s revenue and is therefore considered “byproduct”. The Company’s La Arena, Timmins West and Bell Creek mines produces

primarily gold with other metals (primarily silver), produced simultaneously in the mining process, the value of which represents a small

percentage of the Company’s revenue and is therefore considered byproduct. The Company believes these measures will provide investors

and analysts with useful information about the Company’s underlying earnings, cash costs of operations, the impact of byproduct credits on

the Company’s cost structure and its ability to generate cash flow, as well as providing a meaningful comparison to other mining companies.

These measures are intended to provide additional information and should not be substituted for GAAP measures.

The Company reports total cash costs and total production costs on a silver ounce and a gold ounce produced basis. The Company follows

the recommendation of the cost standard as endorsed by the Silver Institute (“the Institute”) for the reporting of cash costs (silver) and the

generally accepted standard of reporting cash costs (gold) by precious metal mining companies. The Institute is a nonprofit international

association with membership from across the silver industry. The Institute serves as the industry’s voice in increasing public understanding of

the many uses and values of silver. This remains the generally accepted standard for reporting cash costs of production by precious metal

mining companies. Total cash costs and total production costs are divided by the number of silver ounces contained in concentrate or gold

ounces recovered from the leach pads to calculate per ounce figures. When deriving the production costs associated with an ounce of silver

or gold, the Company deducts byproduct credits from sales which are incidental to producing silver and gold.

The Company has adopted the reporting of all-in sustaining costs as a non-GAAP measure of a precious metals mining company’s operating

performance and the ability to generate cash flow from operations. This measure has no standardized meaning and the Company has utilized

an adapted version of the guidance released by the World Gold Council, the market development organization for the gold industry. The

World Gold Council is not a regulatory industry organization and does not have the authority to develop accounting standards or disclosure

requirements. All-in sustaining costs include total cash costs incurred at the Company’s mining operation, sustaining capital expenditures,

corporate administrative expense, exploration and evaluations costs, and reclamation and closure accretion. The Company believes that this

non-GAAP measure represents the total costs of producing silver and gold from its operation, and provides additional information of the

Company’s operational performance and ability to generate cash flows to support future capital investments and to sustain future production.

For additional information regarding these non-GAAP measures (including reconciliations to IFRS measures and by-product credit

calculations, as applicable), see Tahoe’s management’s discussion and analysis for the three and six months the quarter ended June 30,

2016 and its press release August 9, 2016, both available at www.tahoeresources.com and on SEDAR at www.sedar.com. For information on

how Lake Shore Gold has historically disclosed these non-GAAP measures (including reconciliations to IFRS measures, as applicable), see

Lake Shore Gold’s management’s discussion and analysis for the year ended December 31, 2015, also available on SEDAR.

http://www.tahoeresources.com/

http://www.sedar.com/


Reserves and Resources; QP Statement

33

Reserves and Resource DisclosureEscobal Mineral Reserves at January 1, 2016 as calculated by subtracting mine depletion volumes from the Mineral Reserve estimate

as reported in Escobal Mine Guatemala NI 43-101 Feasibility Study, November 5, 2014, prepared by M3 Engineering & Technology

Corporation for Tahoe Resources Inc.

La Arena oxide Mineral Reserves at January 1, 2016 as calculated by subtracting mine depletion volumes from the Mineral Reserve

estimate as reported in La Arena Project, Peru Technical Report (NI 43-101), February 27, 2015, prepared by Mining Plus Peru

S.A.C. for Rio Alto Mining Limited.

Shahuindo oxide Mineral Reserves at November 1, 2015 as reported in Technical Report on the Shahuindo Mine, Cajabamba, Peru,

January 25, 2016, prepared by Tahoe Resources Inc.

Timmins West Mine and 144 Gap Mineral Resources and Mineral Reserves at December 31, 2015 as reported in 43-101 Technical

Report, Updated Mineral Reserve Estimate For Timmins West Mine and Initial Resource Estimate For The 144 Gap Deposit,

Timmins, Ontario, Canada, February 29, 2016, prepared by Lake Shore Gold Corp.

Bell Creek Mine Mineral Resources and Mineral Reserves at December 31, 2015 as reported in news release Lake Shore Gold

Announces Updated Resources and Reserves, March 10, 2016, prepared by Lake Shore Gold Corp.

Whitney Mineral Resources at January 14, 2014 as reported in Technical Report and Resource Estimate on the Upper Hallnor, C-

Zone, and Broulan Reef Deposits, Whitney Gold Property, Timmins Area, Ontario, Canada, February 26, 2014, prepared by P&E

Mining Consultants Inc. for Temex Resources Corp.

Gold River Mineral Resources at January 17, 2012 as reported in Technical Report on the Update of Mineral Resource Estimate for

the Gold River Property, Thorneloe Township, Timmins, Ontario, Canada, April 5, 2012, prepared by J. Samson, R. Kusins, and D.

Powers for Lake Shore Gold Corp. and West Timmins Mining Inc.

Juby Mineral Resources at February 24, 2014 as reported in Technical Report on the Updated Mineral Resource Estimate for the

Juby Gold Project, Tyrrell Township, Shining Tree Area, Ontario, February 24, 2014, authored by GeoVector Management Inc. for

Temex Resources Corp.

Fenn-Gib Mineral Resources at November 17, 2011 as reported in Fenn-Gib Resource Estimate Technical Report, Timmins Canada,

November 17, 2011, authored by SGS Canada Inc. for Lake Shore Gold Corp.

Qualified Person StatementTechnical information in this presentation has been approved by Tahoe’s Vice President Technical Services, Charles Muerhoff, a

Qualified Person as defined by NI 43-101.

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