t immin S w e S t m ine A nd Be LL c reek m i LL Pro P er ty oV er V iew Key projects driving the Company towards net free cash fow by the fourth quarter of 2013 are the development of T immins W est Mine and the completion of a 50 mill expansion at the Company s Bell Creek Mill The advancement of these two projects is positioning the Company for strong production growth in 2013 and further growth to at least 140000 ounces in 2014 T immins W est Mine The T immins W est Mine is comprised of two deposits the T immins and Thunder Creek deposits which are located approximately 800 metres apart Production activities are carried out from a shaft and ramp In March 2013 an updated reserve estimate for T immins W est Mine w a s r e l e a s e d including probable reserves of 798000 ounces 4811000 t o n n e s 5 2 g p t The reserve estimate meets the Company s objective of maintaining 3 to 5 years of reserves ahead of production For the year 2012 T immins W est Mine produced approximately 64000 ounces of gold The average grade for the year was 39 gpt below the reserve grade largely refecting signifcant development during the year limited fexibility and the deferral of mining in some higher grade areas of T immins Deposit in order to complete closer spaced drilling In 2013 T immins W est Mine is expected to account for approximately 80 85 of the Company s target production of 120000 to 135000 ounces Entering 2014 the Mine is expected to contribute the majority of production with the Company expected to produce at least 140000 ounces at cash operating costs below US700 per ounce including royalties Bell Creek Mill The Bell Creek Mill is a conventional gold milling circuit involving crushing and grinding gravity and leaching followed by CarboninPulp and CarboninLeach processes for gold recovery The mill along with the Bell Creek Mine was acquired from the Porcupine Joint V enture in December 2007 A 50 expansion of the Bell Creek Mill was launched during the second half of 2011 The expansion involves major upgrades to both the front crushinggrinding end and back solution end of the mill The frst stage of the expansion which increased capacity to 2500 tpd was completed in December 2012 The frst phase of the expansion mainly involved the solution side of the circuit The second stage of the expansion to reach 3000 tonnes per day involves the completion of a new front end to the circuit specifcally the ore receiving crushing ore storage and grinding facilities W ork on this part of the expansion is well advanced with completion expected during the third quarter of 2013 T immins W est Mine Advancing towards full production Bell Creek Mill 50 expansion on track for completion during third quarter 2013