Newmont Corporation · NYSE:NEM
Newmont — Newmont Mining — Merger or Acquisition (February 2011)
20 slides from Newmont's merger presentation, Feb 3, 2011
Slide 1: Newmont and Fronteer Gold, February 3, 2011
meee Fronteergold February 3, 2011
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such laws, incl
Slide 3: Newmont's Strong Balance Sheet and Free Cash Flow Provide Flexibility to Build our Business
Newmont’s Strong Balance Sheet and Free Cash Flow Provide Flexibility to Build our Business Over $6.7 Billion in Available P P Equity Liquidity? Build the Business - Execute our advanced projects - Discoveries and reserve additions Cash and Strong across aur globaldistricts Cash Cash Flow _ Sy ~ MR,
Slide 4: Strong Gold Price Environment
Strong Gold Price Environment Is Gold in a Bubble? Factors Supporting Gold SS Loose monetary policy suggests inevitable inflation Sovereign debt crisis remains unresolved Political risk heightened Central banks buying Investment demand remains strong Negative real interest rate environment
Slide 5: Newmont's History of Discovery and Reserve Additions Provides the Foundation for Further Potential Growth
Newmont’s History of Discovery and Reserve Additions Provides the Foundation for Further Potential Growth oF Tavita Porte tll ea Py Ss er, g %, ¥ % { Innovate \ J west outs |} 40 i sues oy <7 Fy = a 2 s = satis 3S AuPrice Op g oS 3 8 e 0 Relractory 4 ws 3 s E née suite Leach ts \ 0 1985, 1987 1988 1
Slide 6: Our Nevada Portfolio Has Produced Million Ounces to Date
Our Nevada Portfolio Has Produced 54 Million Ounces to Date 1966 = Gold reserves: 3.5 Mozs Today = Gold reserves: 28.5 Mozs' Production: 260 Kozs = 2010 Production: 1.7 = Employment: 100 Mozs2 = 1—-—Open pit mine = Employment: 3,400 = 1—- Oxide mill = 6—Open pit mines = 5 — Underground mines = 9- Pr
Slide 7: We are Expanding our Nevada Portfolio with the Strategic Acquisition of Fronteer Gold
We are Expanding our Nevada Portfolio with the Strategic Acquisition of Fronteer Gold (TSX: FRG) Acquisition Overview = Newmont to acquire Fronteer Gold for cash consideration of Cdn $2.3 billion (excl. Pilot Gold) via a Plan of Arrangement = Fronteer Gold’s main asset is the multi-million ounce, hi
Slide 8: Carlin-Type Trends Have Shown Large Growth Potential Over Time
Carlin-Type Trends Have Shown Large Growth Potential Over Time; Similar Growth Expected At Long Canyon Potential New Trend = Long Canyon is a major discovery in a == Twin Creel Sandman, eeville moreng eters Gold Long new district Coy Basin | Phoonin canyon Greater 150 Phoenix + oe i] et Carlin s < ©
Slide 9: Our Experience at Carlin Gives Us Confidence in Similar Growth at Long Canyon
Our Experience at Carlin Gives Us Confidence in Similar Growth at Long Canyon <— Long Canyon roy a District Yc West [> mo Pequop’ Long JV Claims ss South es [ Pequop fol = Jv Resources & Upside Current Resource: 2.2 Moz' Near Term Expansion Potential: ~2X 2 Identified Target Potential: ~3X oO Trend
Slide 10: We also Predict Additional Potential at Sandman and Northumberland
We also Predict Additional Potential at Sandman and Northumberland Sandman ‘ - Open-pit Development Near Existing Infrastructure with potential of up to ~1Moz 5 _ King River Rift Prefeasibility completion expected in 2012 Potential to leverage Twin Creeks infrastructure Competitive operating cost wi
Slide 11: Building a Sustainable and Profitable Mining Business
Building a Sustainable and Profitable Mining Business Fiberting Mike: ‘Basin Copper Greater Phoenix Greater Gold Quarry Tut Phoenix Copper Leach OORT iver en Taney Jjundee [iatacon [Kalgoortie S.A. Land Position = 3,954 sq,
Slide 12: Fronteer Gold
ae Fronteergold
Slide 13: Transaction Details
Transaction Details Consideration Offered Cdn.$14.00 in cash and one share of Pilot Gold per Fronteer Gold share — Premium of approx. 37% to the closing price as of February 2, 2011 (excl. Pilot Gold) — implies a value of approximately Cdn.$2.3 billion for Fronteer Gold (excl. Pilot Gold) Structure
Slide 14: Cautionary Note Regarding Fronteer Gold Estimates
Cautionary Note Regarding Fronteer Gold Estimates Certain information in this document, including information in this Appendix, is based on Fronteer Gold’s public disclosures. Newmont assumes no responsibility for Fronteer Gold’s estimates and historical reporting reflected or summarized in this doc
Slide 15: Long Canyon Resource Disclosure
Long Canyon Resource Disclosure Measured Indicated Measured & Indicated Inferred Tonnes Grade Ounces Grade Ounces| Tonnes Grade Ounces Grade (000s) (git) __(000s) (git) (000s) | (000s) (g/t) _(000s) (git) 0.2 762 291 71 17,609 234 1,324 18,371 236 1,396 11,170 224 803 1.0 458 451 66 9,286 398 1,187
Slide 16: Sandman Resource Disclosure
Sandman Resource Disclosure Grade —_Containex 2007 Resource Tonnes Au (git) Au (oz) Measured 1,550,000 1.65 82,100 Indicated 5,736,000 1.03 189,800 Total Mal 7,286,000 1.16 271,900 Inferred 1,287,000 0.92 38,000 Resources are reported at a different cut-off grade for material above (0.01 oz Auton, o
Slide 17: Northumberland Resource Disclosure
Northumberland Resource Disclosure Fat Tonnes Au (git) Ag(git) __ Au (oz) Indicated Gold 36,518,000 1.92 2,259,000 2,259,000 Indicated Silver 36,518,000 112 9,062,000 130,000 Total Indicated 36,518,000 1.92 7.12 2,259,000 9,062,000 2,388,000 Inferred Gold 6,926,000 3.49 776,000 776,000 Inferred Silv
Slide 18: Pilot Gold Projects
Pilot Gold Projects Nevada Anchor Baxter Spring Brik Buckskin North Cold Springs Easter Gold Springs 2 New Boston Regent Stateline Viper Turkey Halilaga TV Tower Peru Rae Wallace Rights
Slide 19: Statement Regarding Newmont Reserve Estimates and Cautionary Statement Regarding Potential
Statement Regarding Newmont Reserve Estimates and Cautionary Statement Regarding Potential lan Douglas, Newmont's Group Executive of Reserves and Geostatistics, is the qualified person responsible for the preparation of the Reserve and non-reserve mineralization estimates in this presentation. The r
Slide 20: Cautionary Statement About Preliminary 2010 Results
Cautionary Statement About Preliminary 2010 Results We caution you that, whether or not expressly stated, all measures of Newmont’s 2010 financial results and condition contained in this presentation are preliminary and reflect our expected 2010 results. Actual reported 2010 results are subject to m
Newmont Mining — Merger or Acquisition (February 2011) on 6ix