Slide 1: Creating Value: September 2016 Corporate Presentation
CREATING VALUE September 2016 Corporate Presentation
Slide 2: Cautionary Notes
Cautionary Notes Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking information within the meaning of Canadian securities laws and forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “f
Slide 3: High-Quality Intermediate Precious Metals Producer
High-Quality Intermediate Precious Metals Producer Three mining operations with Production prospective land positions Growth and Producing 400,000 oz AuEq in 2016 Scale (on annualized basis) Generating Operating cash flow totaled $43M in H1 2016 Free Cash Net income of $15M in H1 2016 Flow
Slide 4: Strong H2 2016 with Investment Catalysts
Strong H2 2016 with Investment Catalysts Marigold Production 5-year average annual production increases by ~35,000oz Growth H2 2016 gold production 100,000 to 110,000 oz Seabee Performance Operational Excellence program update Q4 2016 Excels Resources to Reserves conversion drilling at Seabe
Slide 5: Delivering Scale and Margin
Delivering Scale and Margin 98.9 100 97.3 97.8 $1,200 93.2 98Koz Gold Equivalent Production (Koz) and Realized Gold Price (green) ($/oz) 83.7 Gold Equivalent Cash Costs (orange) 82.6 $1,000 80.7 76.0 75 Gold Eq. Production in 2Q16 $926 $906 $800 $768 $765 53.7 $719 $746 $715 $695 $702 50 $669 $600 2
Slide 6: Creating Value with Operational Excellence
Creating Value with Operational Excellence Marigold: Moving 80Mt of Material per Year, a 50% Increase since 2014 DRILL BLAST LOAD HAUL Reduced drills to four Improved blasting pattern / Used most effective shovel Implemented a ‘hot shift from six products and loading operator to train others change’
Slide 7: 2016 Consolidated Full-Year Guidance
2016 Consolidated Full-Year Guidance Production and Cash Costs Marigold Pirquitas Seabee Silver Standard Gold Silver Gold Gold Equivalent Production 200K – 210K oz 9M – 10M oz 70K – 73K oz 385K – 415K oz Cash Costs $650/oz – $700/oz $9.00/oz – $10.00/oz $610/oz – $640/oz $660/oz – $710/oz (US$/oz) A
Slide 8: Marigold: Growth in Nevada
MARIGOLD GROWTH IN NEVADA SSRI:NASDAQ │SSO:TSX │ September 2016 8
Slide 9: Track Record of Performance and Growth
Track Record of Performance and Growth Open pit, run-of-mine heap leach gold operation Continuous production since 1988 Strong safety and environmental practices Twin Creeks Goldstrike Excellent infrastructure Maverick MARIGOLD Springs Phoenix Cortez Q2 2016 Gold production results: Carlin
Slide 10: Marigold Operating Outlook
Marigold Operating Outlook 2017 2018 2019 2020 2021 Gold production (Koz) 205 – 215 200 – 210 225 – 235 205 – 215 230 – 240 Cash costs ($/oz) $655 – $705 $830 – $880 $740 – $790 $660 – $710 $550 – $600 Capital investment ($M) $30 $35 $25 $20 $25 Capitalized deferred $18 $15 $15 $30 $70 stripping ($M
Slide 11: Increased Production and Reduced Cash Costs
Expanded Margins Increased Production and Reduced Cash Costs 250 Gold Production (Koz) 200 150 100 50 0 2017 2018 2019 2020 2021 2016 Production and Cash Costs Outlook 2014 Technical Report $900 Cash Costs ($/oz) $800 $700 $600 $500 2017 2018 2019 2020 2021 Notes: Please refer to our news release da
Slide 12: Lower Operating Cost Profile
Lower Operating Cost Profile Focus and Discipline for Long Term Value $9.00 Operating Costs 8% ($/tonne ore) 13% 8% $6.00 13% Mining Costs 79% $3.00 Processing Costs 79% G&A Costs $0.00 2014 Technical Report 2016 5-year Outlook Labor Labor Other 29% Other 31% 40% 42% Fuel Royalties 17% Fuel 15% Roya
Slide 13: Mining Cost per Tonne
Operational Excellence is Fundamental Long-term Cost Savings $1.92 $1.74 Mining Cost per Tonne $1.70 $1.65 $1.62 $1.61 $1.57 $1.55 $1.54 $1.48 $1.45 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Lowering Costs Savings of 1¢ cost per tonne mined = $800,000 annua
Slide 14: Exploration Success and Resource Conversion
Exploration Success and Resource Conversion N 8N 8D 8SX HideOut Valmy and Mud Pits A’ Reserve Pits 2015 Resource Additions A 2016 Drill Areas Deep Core Holes Basalt Pit 1 km Terry Zone Valmy Pit Valmy Pit Higher-grade discoveries since 2014 8SX: 91.4 m at 2.48 g/t Au 8D: 164.6 m at 1.67 g/t Au
Slide 15: Seabee Gold Operation: High-Grade Gold Mine
SEABEE GOLD OPERATION HIGH-GRADE GOLD MINE SSRI:NASDAQ │SSO:TSX │ September 2016 15
Slide 16: Seabee Gold Operation Overview
Seabee Gold Operation Overview High-margin Underground Operation in a Stable Jurisdiction High-grade, underground mine in Saskatchewan, Canada Mill operating since 1991 with current capacity of 850 tpd Strong safety and environmental practices H2 2016 Guidance: 32,000 to 35,000 oz Au produ
Slide 17: Improved Operating Profile
Improved Operating Profile Higher Gold Grade and Lower Costs with Santoy Discovery 100 $954 $1,000 76 $757 70 - 73 75 $800 Production (Koz Au) Cash Cost ($/oz Au) 63 $610 - $640 $525 $600 50 44 $400 25 38 H1 2016 $200 (Actual) 0 $0 2013 2014 2015 2016 Guidance Notes: 2016 cash costs guidance of $610
Slide 18: Well-Positioned for Discovery with $2M Spend in 2016
Well-Positioned for Discovery with $2M Spend in 2016 ~25 km Underexplored Total exploration spend from 2013 to 2015 of $2.5 million Notes: Exploration spend for Claude Resources includes actual spend in 2013, 2014, and 2015. SSRI:NASDAQ │SSO:TSX │ September 2016 18
Slide 19: Santoy Mine Complex: Key Value Driver
Santoy Mine Complex: Key Value Driver Focus on Resource to Reserve Conversion 66.8g/t at 1.1m 52.8g/t at 2.1m 29.16g/t 6.3m 23.5g/t at 1.7m 15.4g/t at 6.0m 28.6g/t at 4.9m 39.1g/t at 2.7m Santoy Gap 9A, 9B & 9C Infill Drillholes 100 meters Santoy 8A Drillholes Measured & Indicated Mineral Resources
Slide 20: Pirquitas: Large Open-Pit Silver Mine
PIRQUITAS LARGE OPEN-PIT SILVER MINE SSRI:NASDAQ │SSO:TSX │ September 2016 20
Slide 21: Proven Capability and Delivery
Proven Capability and Delivery Free cash flow in 2016 100%-owned and operated open pit silver-zinc mine In commercial production since 2009 Good safety record and solid stakeholder relations Improved flotation plant processes: +5,000 tpd in August 2016 Pirquitas Mine Jujuy, Argentina 10.3M
Slide 22: Pirquitas Cash Costs Trending Down
Pirquitas Cash Costs Trending Down Lowered 2016 Cash Costs Guidance $19.70 Cash Costs per payable $16.88 ounce of silver sold $12.87 $12.08 $10.68 $9.00 - $10.00 $8.93 $8.87 2011 2012 2013 2014 2015 Q1 2016 Q2 2016 2016 Guidance Lowering Costs Achieved record low cash costs again Q2 2016 Notes: Cash
Slide 23: Chinchillas Project
Chinchillas Project Potential to Extend Pirquitas Operating Life Silver-lead-zinc deposit located 30 km from Pirquitas mine +15,000 meters resource infill drilling completed since Q4 2015 49 meters at 673 g/t silver 30 meters at 637 g/t silver 66 meters at 278 g/t silver Increased budget
Slide 24: Chinchillas Mineral Resources
Chinchillas Mineral Resources Potential to Extend Pirquitas Operating Life Chinchillas Indicated Mineral Resources Cut-off AgEq Ag Pb Zn AgEq Ag Pb Zn Mt AgEq (g/t) (g/t) (g/t) (%) (%) (Moz) (Moz) (Mlbs) (Mlbs) 45 34.2 142 91 0.82 0.57 155 100 618 431 90 21.9 183 123 1.06 0.62 129 86 510 301 110 17.
Slide 25: Pirquitas Underground
Pirquitas Underground Focused on Mine Life Extension Potential small-scale, high-grade ore feed from the Chocaya, Oploca and Cortaderas veins Positive drill results from 2015 drill program: 3.16 meters at 1,436 g/t silver 1.93 meters at 1,890 g/t silver 0.83 meters at 2,670 g/t silver To
Slide 26: Perdito Project
Perdito Project High-grade, Carlin-type sediment-hosted gold deposits in California Multiple, ready-to-drill targets $1.5M planned for drilling/field work in 2016; drill program to begin Q4 2016 Gold grades of up to 10.9 g/t confirmed by duplicate surface sampling Large land package of 5,780
Slide 27: Properties, Projects and Production
Properties, Projects and Production Over $570M Cash from Divestments since 2010 12 3 8 1 10 9 9. Candelaria 1. Marigold 11 10. Maverick 4. San Luis 5 Springs 6. Diablillos 13 8. Amisk 3. Seabee 11. San Marcial 2. Pirquitas 7. Berenguela 12. Sunrise Lake 5. Pitarrilla 4 7 13. Parral 2 6 Maximizing Va
Slide 28: Delivering Long-Term Value for our Shareholders
Delivering Long-Term Value for our Shareholders Portfolio Strength to Last and … … Growth for Scale Three precious metals mines H2 2016 production of 180,000 to located in the Americas 210,000 oz AuEq Producing 400,000 oz AuEq at Marigold 5-year outlook adds 20% $685/oz cash costs (pro forma
Slide 29: Value & Growth
Value & Growth SSRI:NASDAQ │SSO:TSX │ September 2016 29
Slide 30: San Luis Project
San Luis Project High-Grade Gold Development Option Ancash Region, Peru High grade mineralization with N M+I Mineral Resources of 9.0M oz Ag at 578.1 g/t 0.35M oz Au at 22.4 g/t Ecash Community Already Secured EIA Ayelén Vein Feasibility Study Going forward San Simon Vein Pursuing communit
Slide 31: Pitarrilla Project
Pitarrilla Project Large Mineral Resource Development Option Development stage silver-lead-zinc deposit Open pit / UG project with potential for long life Conventional flotation and leaching Pitarrilla Project Durango, Mexico Measured and Indicated Mineral Resources Open pit: 497M oz Ag at
Slide 32: Q2 2016 Highlights
Q2 2016 Highlights Strong Production 97,759 oz AuEq, 17% higher Q-on-Q (pro-forma 2016) Low Cash Costs $669/oz AuEq, 6% lower Q-on-Q Free Cash Flow Increased cash balance to $233M, up by $15M Operating Cash Flow $35.7M cash generated by operating activities (before interest & taxes) Net Income $12.5
Slide 33: Marigold Mine: Assay Program
Marigold Mine: Assay Program Increases Contained Gold by 13% Pit Outline as of Original Topography December 2015 Pit Outline at YE 2016 Pit Outline at YE 2019 Mineralized Ore as at December 2014 Additional Ore Tonnage and Ounces 100 meters W E Notes: See news releases dated July 6, 2015 and August 1
Slide 34: Mineral Reserves
Mineral Reserves (as at December 31, 2015) Mineral Reserves Location Tonnes Silver Gold Zinc Silver Gold millions g/t g/t % million oz million oz Proven Mineral Reserves San Luis Peru 0.06 604.5 28.3 1.1 0.05 Total 1.1 0.05 Probable Mineral Reserves Marigold U.S. 140.30 0.45 2.04 Marigold Leach Pad
Slide 35: Mineral Resources: Measured and Indicated
Mineral Resources: Measured and Indicated (as at December 31, 2015) Mineral Resources Location Tonnes Silver Gold Lead Zinc Copper Silver Gold millions g/t g/t % % % million oz million oz Measured Mineral Resources (Inclusive of Proven Mineral Reserves) Pitarrilla Mexico 10.13 91.7 29.8 San Luis Per
Slide 36: Mineral Resources: Inferred
Mineral Resources: Inferred (as at December 31, 2015) Mineral Resources Location Tonnes Silver Gold Lead Zinc Copper Silver Gold millions g/t g/t % % % million oz million oz Inferred Mineral Resources Marigold U.S. 38.80 0.44 0.55 Pirquitas Argentina 0.79 87.3 1.88 2.2 Pirquitas UG Argentina 0.94 20
Slide 37: Reserves and Resources: Notes to Tables
Reserves and Resources Notes to Tables All estimates set forth in the Mineral Reserves and Mineral Resources table have been prepared in accordance with NI 43-101. The estimates of Mineral Reserves and Mineral Resources for each property other than the Marigold mine have been reviewed and approved b
Slide 38: Seabee Gold Operation Reserves and Resources
Seabee Gold Operation Mineral Reserves and Mineral Resources as at December 31, 2015 Tonnes Gold Grade Contained Gold g/t ounces Proven Mineral Reserves 518,100 7.48 124,700 Probable Mineral Reserves 458,200 7.78 114,600 Proven and Probable Mineral Reserves 976,400 7.62 239,300 Measured Mineral Reso
Slide 39: Strong Technical and Commercial Experience
Strong Technical and Commercial Experience Board of Directors Management Team Peter Tomsett Paul Benson Chairman President, CEO and Director Michael Anglin Gregory Martin SVP and CFO Paul Benson Alan Pangbourne Brian Booth COO Gustavo Herrero John DeCooman VP, Business Development and Strategy Bever
Slide 40: Ownership and Capitalization Summary
Ownership and Capitalization Summary Top 10 Shareholders % of Shares Outstanding Institutional Holdings by Country Van Eck Value 15.1% 7% Renaissance Technologies 4.0% 12% United States Sun Valley Gold 2.7% Connor Clark & Lunn Canada 2.3% Deutsche Bank Trust Company 1.8% 16% United Kingdom The Vangu
Slide 41: Notes
Notes SSRI:NASDAQ │SSO:TSX │ August 2016 41
Slide 42: Notes
Notes SSRI:NASDAQ │SSO:TSX │ August 2016 42
Slide 43: Notes
Notes SSRI:NASDAQ │SSO:TSX │ August 2016 43
Slide 44: Silver Standard Resources Inc. Contact
Silver Standard Resources Inc. Website: www.silverstandard.com Email: invest@silverstandard.com Toll-free: 1.888.338.0046 Telephone: 1.604.689.3846