Policy Perception Index

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3 Policy Perception Index Location Score 1 Ireland Wyoming Sweden Saskatchewan Finland NEVADA Vs. Prior Year Source: Fraser Institute Survey of Mining Companies (2015) and Applied Analysis

4 Best Practices Mineral Potential Index Location Score 1 Western Aus Alaska Indonesia Yukon NEVADA 0.80 Vs. Prior Year Source: Fraser Institute Survey of Mining Companies (2015) and Applied Analysis

5 Investment Attractiveness Index Location Score 1 Western Aus Saskatchewan NEVADA Ireland Finland Vs. Prior Year Source: Fraser Institute Survey of Mining Companies (2015) and Applied Analysis

6 Nevada s Top 5 Qualities

7 Source: Fraser Institute Survey of Mining Companies (2015) and Applied Analysis

8 Increasing importance Rank the following policy factors relative to how they will influence your company s decisions to make future investments in Nevada: Source: NVMA Member Survey (2015 and 2016) Policy Factors Influencing Nevada Mining Score Policy Factor Political stability on a national level Infrastructure Duplication/inconsistencies in regulatory environment Political stability on a state level Environmental regulation uncertainty Regulatory uncertainty Availability of labor/skilled workforce Uncertainty about state tax structure Socioeconomic or local community development conditions or agreements Labor/employment agreements Trade barriers Uncertainty about future protected areas Uncertainty about national tax structure

9 Policy Perception Index Location Score 1 Wyoming NEVADA Utah Arizona Michigan Vs. Prior Year Source: Fraser Institute Survey of Mining Companies (2015) and Applied Analysis

10 Best Practices Mineral Potential Index Location Score 1 Alaska NEVADA Utah Minnesota Arizona 0.69 Vs. Prior Year Source: Fraser Institute Survey of Mining Companies (2015) and Applied Analysis

11 Investment Attractiveness Index Location Score 1 NEVADA Alaska Utah Wyoming Arizona Vs. Prior Year Source: Fraser Institute Survey of Mining Companies (2015) and Applied Analysis

12 Increasing importance Economic Factors Influencing Nevada Mining Rank the following economic factors relative to how they will influence your company s decisions to make future investments in Nevada: Source: NVMA Member Survey (2015 and 2016) Score Policy Factor Mineral price trends North America economy Cost of capital Availability of capital U.S. economy Nevada economy Global economy South America economy Europe economy Stock market performance Asia Pacific economy Middle East economy Africa economy

13 Nevada s Strengths Source: NVMA Member Survey (2016)

14 Source: Tax Foundation and Applied Analysis

15 Nevada s Weaknesses Source: NVMA Member Survey (2016)

16 60% of respondents in 2015 believed gold prices would increase Were you correct? Source: NVMA Member Survey (2015)

17 Daily Gold Price $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Aug Average Price: $1,118 Aug Average Price: $1,346 Annual Growth: +20.7% Source: London Bullion Market Association

18 Daily Gold Price $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Peak: $1,895 Present: $1,346 Change: -29.0% Source: London Bullion Market Association

19 Daily Gold Price $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Forecast 53% 29% 18% Source: London Bullion Market Association and NVMA Member Survey (2016)

20 NVMA Members Gold Price Predictions Will the price of gold go up, down, or stay the same in the next 12 months? Up 48% Stay the Same 48% Down 4% Up 60% Stay the Same 35% Down 5% Up 53% Down 18% Stay the Same 29% Source: NVMA Member Survey (2014, 2015, 2016)

21 55% of respondents in 2015 believed silver prices would increase Were you correct? Source: NVMA Member Survey (2015)

22 Daily Silver Price $60 $50 Aug Average Price: $14.90 Aug Average Price: $19.72 Annual Growth: +32.0% $40 $30 $20 $10 $0 Source: London Bullion Market Association

23 Daily Silver Price $60 $50 $40 $30 Peak: $48.70 Present: $18.78 Change: -61.4% $20 $10 $0 Source: London Bullion Market Association

24 Daily Silver Price $60 Forecast $50 $40 $30 $20 $10 53% 35% 12% $0 Source: London Bullion Market Association and NVMA Member Survey (2016)

25 40% of respondents in 2015 believed copper prices would increase Were you correct? Source: NVMA Member Survey (2015)

26 Daily Copper Price $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Aug Average Price: $5,090 Aug Average Price: $4,855 Annual Growth: -4.6% Source: London Metal Exchange

27 Daily Copper Price $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Forecast 41% 35% 24% Source: London Metal Exchange and NVMA Member Survey (2016)

28 Nevada Gold Production (in Millions of Troy Ounces) World '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 ' Source: Nevada Division of Minerals and U.S. Geological Survey 0

29 Gold Production Nevada as a Percent of World Total 8.6% 8.0% 7.9% 7.8% 6.6% 6.5% 6.5% 6.5% 6.0% 5.1% 5.5% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Source: Nevada Division of Minerals and U.S. Geological Survey

30 Nevada Silver Production (in Millions of Troy Ounces) World '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 1, Source: Nevada Division of Minerals and U.S. Geological Survey 0

31 Silver Production Nevada as a Percent of World Total 1.60% 1.30% 1.26% 1.16% 1.02% 0.99% 0.95% 1.04% 1.04% 1.27% 1.08% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Source: Nevada Division of Minerals and U.S. Geological Survey

32 Nevada Copper Production (in Millions of Pounds) World 41, ,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Source: Nevada Division of Minerals and U.S. Geological Survey 0

33 Copper Production Nevada as a Percent of World Total 0.52% 0.38% 0.38% 0.42% 0.42% 0.37% 0.35% 0.39% 0.34% 0.33% 0.43% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Source: Nevada Division of Minerals and U.S. Geological Survey

34 Greatest Business Threats Source: NVMA Member Survey (2016)

35 Reasons to Remain Optimistic Source: NVMA Member Survey (2016)

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37 Millions Nevada Population '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Source: Nevada State Demographer and United States Census Bureau

38 1.4% 1.1% 0.6% 1.0% 1.8% 1.5% 1.9% 2.3% 4.0% 4.4% 5.6% 5.3% 5.5% 4.5% 4.0% 4.0% 3.7% 3.4% 3.4% 4.1% 3.6% 3.6% 3.1% 6.3% 6.7% 6.6% Nevada Population Annual Growth '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

39 Source: United States Census Bureau

40 Nevada Population Growth by County Population Growth: 1.0% or More Growth CLARK +2.2% STOREY +2.0% LYON +1.6% WASHOE +1.5% EUREKA +1.4% 2.0% or More 1.0% to 1.9% 0.0% to 0.9% Less than 0.0% Population Growth: Less than 1.0% Growth WHITE PINE -1.7% LINCOLN -1.6% ELKO -1.5% LANDER -1.4% HUMBOLDT -1.2% Source: United States Census Bureau

41 Nevada Private Establishments 90,000 80,000 77,517 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Source: United States Bureau of Labor Statistics

42 Millions 1.35 Nevada Employment Trailing 12-Month Averages Peak to Present: -16,683 (-1.3%) '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: United States Bureau of Labor Statistics

43 Nevada Employment Annual Growth 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0% -12.0% 67 Consecutive Months of Annual Growth '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: United States Bureau of Labor Statistics

44 Nevada Employment Growth by Sector Past 12 Months Trade, Transportation & Utilities Leisure & Hospitality Construction Education & Health Services Professional & Business Services Financial Activities Manufacturing Other Services Mining and Logging Government Information ,200 5,500 5,300 7,100 6,400 10,700 Net Job Growth: +33,800 Source: United States Bureau of Labor Statistics, July 2016 vs. July 2015

45 Nevada Employment Growth by Sector May 2007 to Present Education & Health Services Trade, Transportation & Utilities Net Job Growth: -18,800 16,900 34,400 Leisure & Hospitality 9,700 Professional & Business Services 8,600 Mining & Logging 1,700 Other Services 0 Information -3,200 Financial Activities -4,200 Manufacturing -8,000 Government -14,000 Construction -60,700 Source: United States Bureau of Labor Statistics, July 2016 vs. May 2007

46 Unemployment Rate Comparison 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% Variance United States Nevada '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 6.5% 5.1% Variance 1.4 pts. Source: United States Bureau of Labor Statistics, Not Seasonally Adjusted

47 Average Weekly Hours per Employee 48 United States Nevada Metal Ore Mining '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: United States Bureau of Labor Statistics, Not Seasonally Adjusted

48 Average Weekly Wages per Employee $1,700 United States Nevada Metal Ore Mining $1,500 $1,486 $1,300 $1,100 $900 $700 $500 $878 $747 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: United States Bureau of Labor Statistics, Not Seasonally Adjusted

49 Billions Nevada Personal Income $140 $120 $126 $100 $80 $60 $40 $20 $ '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: United States Bureau of Economic Analysis, Seasonally Adjusted

50 Thousands Nevada Residential Units Permitted Trailing 12-Month Totals Peak to Present: -34,143 (-68.8%) '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: UNLV CBER and Applied Analysis

51 Nevada Housing Price Index '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: Federal Housing Finance Agency

52 Source: Federal Housing Finance Agency Q vs. Q2 2015

53 Source: CoreLogic Q Equity Report

54 Nevada Homeowner s Equity Under Water Under 18.7% 17.5% Water Under Water 24.2% 30.4% Under Water Under 52.4% Under Water Under Water 64.8% Water 68.3% 72.5% Positive Positive 27.5% Positive 31.7% 35.2% Positive 47.6% Positive Positive Positive 69.6% 81.3% 75.8% 82.5% Source: CoreLogic

55 Hawaii Oregon Washington Montana South Dakota North Dakota Colorado California Nevada Minnesota Alaska Dist. of Columbia Arizona Idaho Utah Vermont Nebraska Wisconsin Iowa New Hampshire Virginia Massachusetts Florida Wyoming Illinois New Mexico New Jersey Connecticut New York Maine Rhode Island Kansas Delaware Michigan Kentucky Missouri Maryland North Carolina Arkansas Ohio Pennsylvania South Carolina Texas Tennessee Oklahoma Georgia Indiana Alabama West Virginia Louisiana Mississippi Mortgage Delinquencies: 30+ Days As a Percent of Loans Outstanding 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% United States: 2.39% Nevada: 1.67% 43 out of 51 Source: Mortgage Bankers Association, Q National Delinquency Survey

56 Colorado Wyoming Nebraska Arizona Minnesota Utah Alaska California Virginia Montana Michigan North Dakota Idaho South Dakota Texas Tennessee Missouri New Hampshire North Carolina Georgia West Virginia Alabama Arkansas Iowa Kansas Washington Mississippi Wisconsin Oregon South Carolina Louisiana Kentucky Indiana Pennsylvania Maryland Oklahoma Massachusetts Illinois Ohio Nevada Rhode Island Vermont Delaware Connecticut New Mexico Florida Dist. of Columbia Hawaii Maine New York New Jersey Mortgage Delinquencies: In Foreclosure As a Percent of Loans Outstanding 7% 6% 5% Nevada: 2.15% 12 out of 51 4% 3% 2% United States: 1.64% 1% 0% Source: Mortgage Bankers Association, Q National Delinquency Survey

57 Nevada No. of Mortgages Past Due + In Foreclosure 160, , , , ,000 80,000 60,000 40,000 20, ,633 I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: Mortgage Bankers Association

58 Millions Visitor Volume Clark County Washoe County Total Currently at Peak: $50.7 Million '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Note: Trailing 12-month totals ending in July of each year. Source: Las Vegas Convention & Visitors Authority; Reno-Sparks Convention & Visitors Authority

59 Billions $14 $13 $12 $11 $10 $9 $8 $7 $6 $5 $4 Nevada Gross Gaming Revenue Trailing 12-Month Totals Peak to Present: -$1.8B (-14.9%) '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: Nevada Gaming Control Board

60 Nevada s Tourism Economy Annual Growth (Trailing 12 Months) Visitor Volume +3.9% Occupancy Rate +1.5% Airport Traffic +6.8% Highway Traffic +0.7% Convention Attendance +13.9% Gaming Revenue +1.6% Source: Nevada Commission on Tourism, Nevada Gaming Control Board and Applied Analysis

61 $30.3 Billion+ Major Projects In Nevada Source: Third-party Media and Applied Analysis

62 $5.0 Billion Under Construction 10 Million+ SF Battery Manufacturing Facility (Gigafactory) Phase I Recently Completed on July 29 th

63 $4.0 Billion $3.0 Billion Northern Nevada Data Center $1.0 Billion Las Vegas Expansion Under Construction 500 Mile Superloop Once Complete, NV Campuses will Total 8.8 Million SF Source: Switch; Las Vegas Review-Journal

64 $4.0 Billion Under Construction +3,000 Rooms 3,500 Slot Machines and Table Games Est. Completion: 2018 (Phase I)

65 Las Vegas Sands/Majestic Stadium $1.9 Billion Proposed 65,000 Seats 62 Acres on Russell Road Est. Completion: 2022

66 Wynn Paradise Park $1.6 Billion Planned 1,000 Rooms 260,000 SF Meeting Space 38-Acre Lagoon Est. Completion: 2020

67 Las Vegas Convention Center District Expansion $1.4 Billion Proposed $810 Million Annual Economic Impact 7,850 Permanent Jobs Est. Completion: 2022

68 West 2 nd District (Downtown Redevelopment Project) $1.2 Billion Planned 17-Acre Multi-Building Est. Completion: 2026

69 $1.0 Billion Under Construction 3 Million SF Located in Apex Industrial Park Est. Completion: 2017

70 Apple Data Center Expansion $1.0 Billion Under Construction 14 Buildings 412,000 SF Est. Completion: Late 2016 (Project Mills)

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72 Billions $55 Nevada Taxable Retail Sales Trailing 12-Month Total Currently at Peak: $52.8 Billion $50 $45 $40 $35 $30 $25 $20 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: Nevada Department of Taxation

73 20% 15% 10% Nevada Taxable Retail Sales Year-over-Year Growth 67 Consecutive Months of Annual Growth 5% 0% -5% -10% -15% -20% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: Nevada Department of Taxation

74 Nevada Taxable Retail Sales Notable Sector Growth Source: Nevada Department of Taxation and Applied Analysis

75 Consolidated Tax Revenue (in Millions) $1,206 $1,317 $1,321 $1,255 $1,094 $989 $1,032 $1,080 $1,137 $1,196 $1,276 $1,331 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 FY '13 FY '14 FY '15 FY '16 Source: Nevada Department of Taxation

76 Sales Tax Revenue (in Millions) $1,081 $1,098 $1,047 $1,090 $1,132 $987 $980 $1,028 $911 $823 $874 $927 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 FY '13 FY '14 FY '15 FY '16 Source: Nevada Department of Taxation

77 Government Services Tax Revenue (in Millions) $137 $147 $153 $152 $139 $128 $120 $117 $119 $128 $142 $154 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 FY '13 FY '14 FY '15 FY '16 Source: Nevada Department of Taxation

78 Real Property Transfer Tax Revenue (in Millions) $70.5 $63.1 $51.4 $36.7 $28.2 $22.8 $22.0 $20.7 $23.5 $25.7 $27.4 $32.4 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 FY '13 FY '14 FY '15 FY '16 Source: Nevada Department of Taxation

79 Nevada Assessed Values Billions$160 $140 $120 $100 $114 $144 $106 $80 $60 $40 $20 $0 Source: Nevada Department of Taxation, Redbook

80 Property Tax Revenues Total (in Billions) Projected Tax Revenue Projected Tax Abatement $0.81 $2.73 $1.13 $3.06 $1.10 $3.40 $0.54 $3.25 $0.16 $2.71 $0.10 $2.50 $0.10 $0.15 $2.36 $2.35 $0.55 $0.70 $0.37 $2.48 $2.58 $2.64 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 Source: Nevada Department of Taxation, Redbook

81 Nevada Commerce Tax The Commerce Tax is an annual tax passed by the Nevada Legislature during the 2015 Legislative Session. The tax is imposed on businesses with a Nevada gross revenue exceeding $4 million in the taxable year. $119.8 M Fiscal Year 2016 Forecasted Commerce Tax Revenue for the General Fund Source: Nevada Department of Taxation

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83 Existing Mining Activity 119 Active Mining Operations Source: NVMA and Nevada Department of Taxation

84 Number of Active Mining Operators '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Nye Elko Churchill Humboldt Pershing Lander Eureka Washoe Lyon Esmeralda Clark Mineral White Pine Storey Lincoln Douglas Source: Nevada Department of Taxation

85 Mining Presence in Nevada In what year was your company established in Nevada? Average Year Established: 1989 Oldest Respondent Company: 1931 Youngest Respondent Company: 2015 Source: NVMA Member Survey (2016)

86 Nevada GDP Growth by Sector Compound Annual Growth Rate Mining Education Health Care/Social Assistance Transportation/Warehousing Arts/Entertainment/Recreation Agriculture Management of Companies Admin/Waste Management Nondurable Goods Government Durable Goods Retail Trade Wholesale Trade Other Accommodation/Food Prof/Scientific/Tech Services Real Estate/Rental/Leasing Utilities Information Finance/Insurance Construction -38.6% -4.8% 60.9% 60.5% 58.6% 51.4% 42.5% 38.3% 36.9% 35.7% 28.6% 22.9% 22.9% 20.8% 18.8% 17.9% 17.5% 14.0% 11.5% 109.9% 104.1% All Industry Total: +21.0% Source: United States Bureau of Economic Analysis

87 Nevada GDP Growth by Sector Compound Annual Growth Rate Admin/Waste Management Real Estate/Rental/Leasing Construction Arts/Entertainment/Recreation Finance/Insurance Transportation/Warehousing Health Care/Social Assistance Durable Goods Education Prof/Scientific/Tech Services Wholesale Trade Other Information Retail Trade Utilities Management of Companies Nondurable Goods Accommodation/Food Government Agriculture Mining -15.3% All Industry Total: +5.4% -8.4% 12.2% 10.8% 10.4% 10.2% 8.8% 8.6% 7.4% 7.4% 6.6% 5.4% 5.3% 4.6% 4.2% 4.2% 4.0% 3.8% 3.0% 2.8% 2.4% Source: United States Bureau of Economic Analysis

88 Billions Nevada Mining GDP $9 $8 $7 $6 10-Year Growth: % $5 $4 $3 $2 $1 $0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Source: United States Bureau of Economic Analysis

89 Billions Nevada Mining GDP $9 $8 $7 $6 Peak to Present: -41.3% $5 $4 $3 $2 $1 $0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Source: Untied States Bureau of Economic Analysis

90 2014 Industry GDP as Share of Total Accommodation/Food Real Estate/Rental/Leasing Government Retail Trade Health Care/Social Assistance Construction Finance/Insurance Professional/Scientific/Tech Transportation/Warehousing Wholesale Trade Mining Durable Goods Admin/Waste Management Arts/Entertainment/Recreation Management of Companies Information Other Utilities Nondurable Goods Education Agriculture 5.7% 4.9% 4.8% 4.7% 4.2% 4.2% 4.1% 3.3% 3.3% 3.0% 2.6% 2.3% 2.0% 1.4% 1.3% 0.4% 0.3% 7.7% By Sector 11.6% 14.7% 13.5% Source: United States Bureau of Economic Analysis

91 2015 Industry GDP as Share of Total Accommodation/Food Real Estate/Rental/Leasing Government Retail Trade Health Care/Social Assistance Construction Finance/Insurance Professional/Scientific/Tech Transportation/Warehousing Wholesale Trade Admin/Waste Management Durable Goods Mining Arts/Entertainment/Recreation Management of Companies Information Other Utilities Nondurable Goods Education Agriculture 5.8% 5.1% 5.0% 4.7% 4.3% 4.2% 3.5% 3.4% 3.3% 3.2% 2.5% 2.3% 2.0% 1.4% 1.2% 0.4% 0.3% 7.6% By Sector 11.3% 14.3% 14.2% Source: United States Bureau of Economic Analysis

92 Mining GDP as Share of Total 6.2% 6.3% 4.9% 5.1% 3.3% 3.7% 4.1% 3.3% 2.6% 2.7% 1.9% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Source: United States Bureau of Economic Analysis

93 New Projects and Investments Long Canyon, Nevada is under Pumpkin construction Hollow Project and expected to achieve commercial production in first half of 2017 Investing in technology to improve the accuracy of aerial surveys completed by drones Ongoing exploration at Gold Rush Purchas of office building in Elko for county-specific operations Northwest Exodus, Nevada is an underground extension in the Carlin North Area that is expected to extend mine life by 7 years $50 million exploration costs in 2015 Installed new capacity in processing plants $18 million projected exploration expenditures Identification of 4-mile zone north of Gold Rush orebody near Cortez (ongoing exploration) Construction of twin underground declines for exploration of Gold Rush orebody near Cortez Commercial production achievement at Arturo near Goldstrike Source: NVMA Member Survey (2016)

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95 Thousands Mining Employment in Nevada ,700 Jobs (+75.0%) '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 Source: United States Bureau of Labor Statistics

96 Thousands Mining Employment in Nevada 14-1,200 Jobs (-8.9%) '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 Source: United States Bureau of Labor Statistics

97 Mining Employment in Nevada Annual Growth 20% 15% 10% 5% 0% -5% -10% -15% -20% '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 Source: United States Bureau of Labor Statistics

98 Diversity in Nevada Mining What percentage of your full-time workforce do minority groups comprise? 20.0% Of full-time workers in the Nevada mining industry were classified as being of racial or ethnic minority Source: NVMA Member Survey (2016)

99 Racial/Ethnic Minorities in Nevada Mining What percentage of workers employed at your company in the following positions are of a racial or ethnic minority? 17% 21% 28% 29% Mining Professionals Field Operations Mill-Related Mining Support Source: NVMA Member Survey (2016)

100 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Nevada Mining vs. Total Employment 10-Year Growth Metal Ore Mining Employment Total Nevada Establishment-based Employment Total +0.4% Mining +20.7% '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 ' Millions Source: United States Bureau of Labor Statistics

101 Mining as a Share of Total Employment 2.0% 1.5% 1.0% 0.9% 0.5% 0.0% '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 Source: United States Bureau of Labor Statistics

102 4.9% 5.0% 5.5% 5.7% 5.9% 6.0% 6.3% 6.3% 6.4% 6.5% 6.7% 6.7% 6.7% 6.8% 8.1% 8.3% 9.6% Unemployment Rate Comparison Nevada Counties; July 2016 Counties with Major Mining Interests Source: United States Bureau of Labor Statistics and Applied Analysis

103 Nevada Mining Workforce Growth Current and Projected Excluding replacements due to attrition, did you hire new employees in 2015? Have you hired and/or will you hire new employees in 2016? Do you expect to hire new employees in the next five years? No 65% Yes 35% No 53% Yes 47% No 35% Yes 65% Source: NVMA Member Survey (2016)

104 Future Workforce Reductions Do you expect to reduce your workforce in the next year? No Do you expect to reduce your workforce in the next five years? No All survey respondents said they do not expect a reduction in the next year All survey respondents said they do not expect a reduction in the next five years Source: NVMA Member Survey (2016)

105 Millions Nevada Salaries and Wages Metal Ore Mining $1, Year CAGR: +7.2% $1,000 $800 $600 $400 $200 $0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Source: United States Bureau of Labor Statistics

106 Billions Nevada Mining Vs. Total Salaries & Wages $1.2 $1.1 $1.0 $0.9 $0.8 $0.7 $0.6 $0.5 $0.4 $0.3 Metal Ore Mining Total Nevada Establishment-based Employment 10-Year Growth Total +23.0% Mining % '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 Billions Source: United States Bureau of Labor Statistics

107 '15 '14 '13 '12 '11 '10 '09 '08 '07 '06 '05 Nevada Average Annual Wages Metal Ore Mining vs. Total $45,760 $96,668 Metal Ore Mining Nevada Average +111% compared to average $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 Source: United States Bureau of Labor Statistics

108 Benefits Paid by Nevada Mining Workers Compensation, Life Insurance and Accident Insurance FICA and Unemployment Insurance $16.0 M $47.1 M $ K/ Pension / Retirement / Other Health / Dental / Vision Insurance $52.5 M $131.2 M Million Source: NVMA Member Survey (2016)

109 Health Insurance Cost as a Percent of Wages Mining Government Leisure and Hospitality Transportation and Warehousing Utilities Manufacturing Financial Activities Wholesale Construction Agriculture Information Education and Health Services Professional and Business Other Retail 4.7% 4.5% 4.2% 6.7% 6.5% 6.4% 6.2% 6.0% 5.9% 10.0% 9.8% 9.0% 8.5% 8.2% All Nevada Employers: 7.2% 10.9% Source: Nevada Department of Taxation, Modified Business Tax Quarterly Statistics (December 2015)

110 Healthcare Coverage Percent of private sector establishments that offer health insurance to employees: Nevada mining industry-wide health care coverage rate: 53% 81% Source: Kaiser Family Foundation and NVMA Member Survey (2016)

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116 Employment Impacts Nevada Mining Industry Operations (2015) 28,927 10,801 7,871 10,255 Direct Indirect Induced Total Source: United States Bureau of Labor Statistics; Nevada Department of Taxation; IMPLAN; Applied Analysis

117 Mining Employment Impacts as Share of Total Nevada Employment (2015) 2.3% 0.8% 0.6% 0.8% Direct Indirect Induced Total Source: United States Bureau of Labor Statistics; Nevada Department of Taxation; IMPLAN; Applied Analysis

118 Mining Total Employment Impacts Historical Trend 33,720 36,076 34,475 29,423 28, Source: United States Bureau of Labor Statistics; Nevada Department of Taxation; IMPLAN; Applied Analysis

119 Wages/Salaries Impacts Nevada Mining Industry Operations (2015) $2.4 B $1.4 B $0.6 B $0.4 B Direct Indirect Induced Total Source: United States Bureau of Labor Statistics; Nevada Department of Taxation; IMPLAN; Applied Analysis

120 Mining Wages/Salaries Impacts As Share of Total Nevada Wages/Salaries (2015) 4.2% 2.4% 1.0% 0.8% Direct Indirect Induced Total Source: United States Bureau of Labor Statistics; Nevada Department of Taxation; IMPLAN; Applied Analysis

121 Mining Total Wages/Salaries Impacts Historical Trend $2.8 B $2.6 B $2.7 B $2.3 B $2.4 B Source: United States Bureau of Labor Statistics; Nevada Department of Taxation; IMPLAN; Applied Analysis

122 Value-Added Impacts Nevada Mining Industry Operations (2015) $6.5 B $4.6 B $1.1 B $0.8 B Direct Indirect Induced Total Note: Value-added represents the additional value in the Nevada economy created by the mining industry Source: U.S. Bureau of Economic Analysis; Nevada Department of Taxation; IMPLAN; Applied Analysis

123 Mining Value-Added Impacts As Share of Nevada Total GDP 4.6% 3.3% 0.8% 0.6% Direct Indirect Induced Total Note: Value-added represents the additional value in the Nevada economy created by the mining industry Source: U.S. Bureau of Economic Analysis; Nevada Department of Taxation; IMPLAN; Applied Analysis

124 Mining Total Value-Added Impacts Historical Trend $10.1 B $10.6 B $9.0 B $7.4 B $6.5 B Note: Value-added represents the additional value in the Nevada economy created by the mining industry Source: U.S. Bureau of Economic Analysis; Nevada Department of Taxation; IMPLAN; Applied Analysis

125 Economic Output Nevada Mining Industry Operations (2015) $10.3 B $6.9 B $2.1 B $1.4 B Direct Indirect Induced Total Source: U.S. Bureau of Economic Analysis; Nevada Department of Taxation; IMPLAN; Applied Analysis

126 Mining Total Economic Output Historical Trend $14.5 B $15.6 B $14.5 B $10.6 B $10.3 B Source: U.S. Bureau of Economic Analysis; Nevada Department of Taxation; IMPLAN; Applied Analysis

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128 Net Proceeds of Minerals Tax Paid by Nevada Mining (in Millions) $216.7 $239.8 $151.1 $159.4 $79.1 $97.6 $94.1 $ Source: Nevada Department of Taxation

129 Net Proceeds of Minerals Tax Paid by Nevada Mining (2015) Source: Nevada Department of Taxation

130 $2.28 $1.58 $0.58 $0.56 $0.53 $0.37 $0.22 $0.12 $0.09 $0.01 $0.00 $6.23 $5.15 $18.22 $25.70 $30.17 Net Proceeds Tax Generated by County (2015; in Millions) Source: Nevada Department of Taxation

131 Share of Net Proceeds Tax Generated by Specific Minerals (2015) Geothermal 1.03% Gypsum 0.30% Oil 0.22% Other 2.95% $87.9 M Gold/Silver 95.51% Net Proceeds Tax generated by Gold/Silver in 2015 Source: Nevada Department of Taxation

132 Estimated Direct Sales/Use Tax Paid by Nevada Mining Estimated direct sales/use tax paid by Nevada mining: Millions $160 $140 $131 $135 $134 $120 $109 $96 $99 $100 $91 $80 $69 $60 $40 $20 $ Source: NVMA Member Survey ( ); Natural Resource Industry Institute ( ), NV Dept of Taxation and industry surveys

133 Millions $400 $350 Nevada Taxable Retail Sales Mining/Mining Support (Trailing 12-Month Total) -29.3% $300 $250 $200 $150 $100 $50 $0 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: Nevada Department of Taxation

134 50% Nevada Taxable Retail Sales Mining/Mining Support Annual Growth 40% 30% 20% 10% 0% -10% -20% -30% -40% '09 '10 '11 '12 '13 '14 '15 '16 Source: Nevada Department of Taxation

135 Estimated Direct Property Tax Paid by Nevada Mining Estimated direct property tax paid by Nevada mining: Millions $40 $35 $32 $33 $35 $35 $33 $34 $33 $32 $30 $25 $20 $15 $10 $5 $ Source: NVMA Member Survey ( ); Natural Resource Industry Institute ( ), NV Dept of Taxation and industry surveys

136 Source: Nevada Department of Taxation

137 Source: Nevada Department of Taxation

138 Source: Nevada Department of Taxation

139 Source: Nevada Department of Taxation

140 Source: Nevada Department of Taxation

141 Source: Nevada Department of Taxation

142 Source: Nevada Department of Taxation

143 Source: Nevada Department of Taxation

144 Estimated Modified Business Tax Paid by Nevada Mining Estimated modified business tax paid by Nevada mining: Millions $13 $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 $4.0 $3.7 $7.4 $7.6 $7.8 $9.5 $9.6 $ Source: NVMA Member Survey ( ); Natural Resource Industry Institute ( ), NV Dept of Taxation and industry surveys Note: Historical figures may be adjusted to reflect the latest available information.

145 Non-Industry Specific Estimated Major Taxes Paid by Nevada Mining Millions $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 Modified Business Tax Property Tax Sales/Use Tax Column2 $131.8 $4.0 $32.0 $95.8 $106.1 $3.7 $33.0 $69.4 $151.0 $7.4 $35.0 $108.6 $171.4 $175.8 $178.5 $7.6 $7.8 $9.5 $33.0 $33.0 $35.0 $130.7 $135.0 $134.0 $142.6 $9.6 $34.4 $133.9 $11.7 $31.7 $98.6 $ Source: NVMA Member Survey ( ); Natural Resource Industry Institute ( ), NV Dept of Taxation and industry surveys Note: Historical figures may be adjusted to reflect the latest available information.

146 Total Estimated Major Taxes Paid by Nevada Mining Millions $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 Net Proceeds of Minerals and Royalties Modified Business Tax Property Tax Sales/Use Tax $417.2 $204.7 $213.6 $72.9 $107.5 $325.9 $174.9 $431.4 $245.8 $255.6 $349.5 $171.0 $245.8 $103.2 $214.4 $ Source: NVMA Member Survey ( ); Natural Resource Industry Institute ( ), NV Dept of Taxation and industry surveys Note: Historical figures may be adjusted to reflect the latest available information.

147

148 Charitable Giving by Nevada Mining What is the approximate amount of charitable gifts donated by your company in calendar year 2015? Monetary donations to nonprofit/ charitable organizations: $9.0 Million Educational scholarships: $1.5 Million Higher education: $1.2 Million Capital improvements in local communities: $3.5 Million $15.2 Million Total Source: NVMA Member Survey (2016)

149 Charitable Giving by Nevada Mining What is the approximate amount of volunteer hours tracked by your company in calendar year 2015? Volunteer time: 930+ Hours Source: NVMA Member Survey (2016)

150 Environmental Accomplishments by Nevada Mining Formalized the Bank Enabling Agreement with the Department of Interior for sage grouse habitat conservation, restoration and mitigation. The Nature Conservancy s Landscape Conservation Forecasting methodology is being utilized for planning. Reduced electrical demand with the installation of variable speed drives. Installed replacement high-efficiency furnace to replace old technology. Worked with the Bureau of Land Management (BLM) to restore wetlands and mine sites Collects waste oil, anti-freeze and waste water. Supply drums to Nevada customers to recycle oil filters so they do not end up in a landfill. Suppling the most environmentally friendly chemicals for each application. Aluminum and plastic container recycling program. Recycling program Source: NVMA Member Survey (2016)

151

152 In 2015, the Nevada mining industry Experienced an 8.1% increase in gold production, making it the fastest increase in the past 10 years Had the largest GDP growth over the past 10 years than any other sector Nearly 90 percentage points higher than Nevada s industry total Barrick Gold and Newmont were once again in the top ten assessed taxpayers Generated a combined $14.3 billion

153 In 2015, the Nevada mining industry Donated over $15.1 million to nonprofit/charitable organizations A combined $2.7 million in educationrelated donations Gave in excess of 930 hours to volunteer work Made green initiatives to help soften the industry s impact on the environment

154 In 2015, the Nevada mining industry Had a lower unemployment rate in areas with major mining influences 6.2% vs 6.8% Metal ore mining average annual wages were over double those of Nevada s industry average $96,669 vs $45,760 Anticipated workforce growth over the next five years None of the surveyed companies are anticipating workforce reductions

155 With the approaching election, political stability on a national level appears to be the primary policy factor influencing Nevada mining Mineral prices are once again the most influential economic factor for the mining industry The price of both gold and silver increased this past year Nevada s population and taxable retail sales are all all-time highs Nevada s employment will reach peak by 2017

156 FISCAL COMMUNITY EMPLOYMENT $91.8 Million Net Proceeds of Mineral Taxes Paid $15.2 Million Non-profit/Charitable Donations $1.1 Billion Metal Ore Mining Salary & Wages $133.9 Million Non-industry Specific Taxes 930+ Hours Volunteer Time 28,927 Jobs Total Mining Employment Impact ECONOMIC IMPACT $6.5 Billion Total Value-Added $10.3 Billion Total Economic Output 119 Active Mines

157 Bottom Line: The Role of the State s Mining Industry % 4.2% 3.3% 4.9% Employment Salaries and Wages Gross Domestic Product Taxes Generated for the State General Fund

158 Bottom Line: The Role of the State s Mining Industry % 4.2% 3.3% 4.9% Employment Salaries and Wages Gross Domestic Product Taxes Generated for the State General Fund

159