Gryphon Gold — Investor Presentation (May 2011)
25 slides from Gryphon Gold's investor presentation, May 26, 2011
Slide 1: Gryphon Gold Corporation
Kt GRYPHON GOLD [CORPORATION] GGN:TSX | GYPH:OTC.BB May 26, 2011
Slide 2: Cautionary Note
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Slide 3: Introduction
=e SSE Do ee ————————————————————————— Gryphon Gold Corporation Introduction * Gryphon Gold Corporation is a US corporation focused on mine development and gold exploration in Nevada. Gryphon completed its IPO in December of 2005 TSX and * There is currently a total of 193,769,882 shares issued and
Slide 4: The Management Team
Gryphon Gold Corporation The Management Team Mow Gryphon’s experienced and successful management team having built and operated world class mines John Key (President, CEO, Director) - Project Manager for ‘Teck-Cominco and General Manager at the Red Dog, Polaris and Magmont mines. Graduate mining eng
Slide 5: The Independent Directing Team
eee ey Gryphon Gold Corporation The Independent Directing Team HON’GOLD The Board of Directors is a seasoned group, very experienced in all aspects of mining totaling over 100 years of mining experience with Teck Cominco, Uranium Resources, PolyMet, Amax Gold and The Doe Run Company Don Gentry - Ret
Slide 6: Borealis History
Gryphon Gold Corporation Borealis History Borealis was owned and operated in the 1980's by Echo Bay Mines, and produced a total of 600,000 oz. of gold over a 10 year period The mine was closed and reclaimed in 1990 with gold at $383 per ounce") and subsequently returned to lease holders in 1995 Unde
Slide 7: Borealis and the Walker Lane Trend
Gryphon Gold Corporation Borealis and the Walker Lane Trend
Slide 8: Borealis Reserves/Resources
Gryphon Gold Corporation Borealis Reserves/Resources® April 25, 2011 Pre-Feasibility Gold Grade Gold Oz. Tons (0z./ton) Contained Proven and Probable Gold Reserves” 17,197,000 0.021 368,800 Oxide/Mixed Resources"! Measured 29,031,000 0.014 401,900 Indicated 9,028,000 0.018 165,100 Inferred 37,669,00
Slide 9: April 2011 Pre-Feasibility Study
Gryphon Gold Corporation April 2011 Pre-Feasibility Study * Canadian Securities Administration NI 43-101 compliant report * Independent report completed by a Nevada Engineering Firm ¢ Projected Production * 368,800 oz. Gold mined © 238,504 oz. Gold recovered * 40,000 oz. average annual Gold sales *
Slide 10: Cash Cost Economics at $1500 Gold
Gryphon Gold Corporation , Cash Cost Economics at $1500 Gold Year | LOM Ounces Gold produced 46,130 246,966 Total Cash Cost per Gold Ounce $397.64 $858.99 Net per Gold Ounce $1,102.36 $641.01 $50.9 $158.3 Total Net (millions) Ee
Slide 11: Borealis Phased Start-up
Gryphon Gold Corporation Borealis Phased Start-up The “Borealis Phased Start-up” plan is an engineered approach to bring the Borealis Oxide Heap Leach Mine, as published in the April 2011 Independent Pre-Feasibility Study, into production in a phased manner. * While total capital required is expecte
Slide 12: Oxide Heap Leach Opportunity
Gryphon Gold Corporation Oxide Heap Leach = Opportunity Proven and Probable Reserve = 368,800 oz. Au Inferred Resource = 406,900 oz. Au Full Oxide Heap Leach Production of Project Reserves is expected to: * Generate Positive Operating Revenue") * Provide the funds” for Borealis * Oxide reserve expan
Slide 13: Production Phase
Gryphon Gold Corporation 44 Production Phase 1 * Construct Leach Pad * Process Freedom Flats Heap * Recover Gold and Silver to carbon initially and bullion upon completion of the ADR Production Phase 2 * Expand Leach Pad ¢ Mine and Process Borealis Pit Ore * Recover Gold and Silver to bullion
Slide 14: Phase 1 - Capital Requirements
Gryphon Gold Corporation * Phase 1 - May 2011 Capital Requirements Capital Equipment, ADR, and. Leach Pad Projected Costs"? $7,450,000 Working Capital? $1,552,000 Bonding") $3,000,000 Contingency $750,000 Phase 1 Subtotal? $12,652,000 Phase 2 - September 201113? $4,000,000 Full Production (06/2012 -
Slide 15: Gold Production Plan
Gryphon Gold Corporation Gold Production Plan Recoverable"” Gold Gold Ounces Ounces Placed Recovered” 2011 13,632 8,197 2012 49,970, 43,149 2013 40,851 43,166 2014 32,958 87,014 2015 49,013 47,204 2016 41,164 39,792 2017 19,377 28,443 Total 246,965 246,965 AO eh Fees Fo ce 2 ee ecb ested mcrae ea NT
Slide 16: Life of Mine Economics ($ Millions)
Gryphon Gold Corporation Life of Mine Economics ($ Millions) $1,100/0z Au $1,200/oz Au $1,500/oz Au Cash Flow (After Tax) $25. $46.7 $107.2 IRR 2319 380% 1174% Project Payback (months) 13 10 8 Net Revenue (Less 5% Royalty) $277.1 $302.4 $378.5 Mining/Leaching $112.8 S112.8 S112.8 Processing 888.4 58
Slide 17: Estimated Timeline
Gryphon Gold Corporation Estimated Timeline * 06/2011 - Initial Pad/Service/Support/ADR Construction ¢ 08/2011 - Initial Pad Completion Process Releach Ore * (8/2011 - Process Fluid Return ¢ 10/2011 - Loaded Carbon Sales ¢ 11/2011 - Secondary Pad Construction * (2/2012 - ADR Commissioning start of B
Slide 18: The Borealis Property Exploration Potential
n Gold Corpora The Borealis Property ploration Potential One of the best targets in Nevada Confirmed by: F Exploration Di Geophysics, Successful Mining History The Histori Prolific Walker Lane Gold Belt Past Success, Identified Targets - Fertile Ground for Discoveries
Slide 19: 23.5 Square Miles of Potential Gold Discoveries
Gryphon Gold Corporation 23.5 Square Miles of Potential Gold Discoveries Opportunity to... * Expand Oxide Proven and Probable Gold Ounces * Expand Graben sulfide Gold Resource * Identify new, potentially large, deposits in the unexplored Western Pediments We believe we have the opportunity to build
Slide 20: Borealis Oxide Gold Targets
Gryphon Gold Corporation Borealis Oxide Gold Targets * The areas outlined are the prime targets for expanding the oxide gold resource e All defined areas are on major controlling structures and — contain mineralized silicified host rock ¢ Some targets contain mineralized drill holes that currently d
Slide 21: Main Borealis Sulfide Gold Targets
Gryphon Gold Corporation Main Borealis sulfide Gold Targets — Graben area exploration — Infill drilling — Structural extension drilling outside the identified deposit — Four other Target Areas — Drilling below existing pit floors — Drilling on structural projections from existing pits
Slide 22: Gold Resources: Longitudinal View
Gryphon Gold Corporation Gold Resources: Longitudinal View Diagrammatic Longitudinal Section (Looking northeast) Current infill and step out drilling i Middle Freedom | Flats Pit Ridge la jeep Ore East SOldview 7000" Crocodile Flats Ridge His & Ridge jorealis Extension [I Coat vatioy Fen 000" Graben
Slide 23: Future Western Pediments
Gryphon Gold Corporation Future Western Pediments Gold Targets ¢ Lucky Boy Target — Positive structural and geophysical signatures — Drill holes in area show strong sulfide silica alteration * Sunset Wash Target — Similar in size, structure, and signature to Lucky Boy (Although targets have limited
Slide 24: CSAMT Survey Results
Controlled source audio- frequency magnetotelluric survey (CSAMT) was calibrated over the known Graben resource CSAMT results in Graben showed a +90% correlation to drill results CSAMT identified 3 new strong anomalies Each anomaly is significantly larger and. shallower than the Graben ‘These target
Slide 25: Conclusion
Gryphon Gold Corporation Conclusion ¢ Near-term production ° Low start-up cost ¢ Initial construction financing funds generate cash flow for project completion * Large, mostly unexplored land base ——E