CIBC Made in Canada Report

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and ResearchCentral.cibcwm.com CIBC World Markets Inc., P.O. Box 500, 161 Bay Street, Brookfield Place, Toronto, Canada M5J 2S8 (416) 594-7000

Institutional Equity Research

Estimate Revision

June 12, 2012 Precious Metals

Made In Canada Gold Mines A Short Bus Tour Through Quebec & Ontario

From June 4 to June 8, CIBC organized a bus tour to see mining camps

along the Abitibi Gold Belt. We visited AEM's LaRonde, OSK's Canadian

Malartic, KGI's Macassa, QMI's Kirkland Lake area projects, AUQ's Young-

Davidson, and LSG's Bell Creek mill and Timmins West mine.

Key factors observed during our trip: 1) Competition for labor is high but

manageable; 2) The use of new vs. old infrastructure can impact start-ups;

3) Equipment selection is a key factor in the success of start-ups and

expansions; 4) the Abitibi camp still has a lot of gold in it.

Almost all of the operations we visited were in some form of construction or

expansion, illustrating the revitalization of the Abitibi belt. With so much

construction and expansion in the area, labour and expertise shortages

were first and foremost in managements' minds.

Following this mine tour, we are lowering our price target for Osisko from

$15.50 to $13.50 as we lower multiples to reflect ongoing commissioning

issues. Our Kirkland Lake price target also moves from $24 to $22 after

slightly altering some financial assumptions.

All figures in Canadian dollars, unless otherwise stated. 12-116812 © 2012

CIBC World Markets does and seeks to do business with companies covered in

its research reports. As a result, investors should be aware that the firm may

have a conflict of interest that could affect the objectivity of this report.

Investors should consider this report as only a single factor in making their investment decision.

See "Important Disclosures" section at the end of this report for important

required disclosures, including potential conflicts of interest.

See "Price Target Calculation" and "Key Risks to Price Target" sections at the

end of this report, or at the end of each section hereof, where applicable.

Sector Weighting: Overweight

Cosmos Chiu, CFA 1 (416) 594-7106 [email protected]

Alec Kodatsky 1 (416) 594-7284 [email protected]

Kevin Chiew 1 (416) 594-7457 [email protected]

Robert Hales, CFA 1 (416) 594-7261 [email protected]

Brian Quast 1 (416) 956-3725 [email protected]

Jeff Killeen 1 (416) 956-6218 [email protected]

Chitimukulu Musonda 1 (416) 594-7462 [email protected]

Made I

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Precious Metals Industry Earnings Outlook

Earnings per Share 12-18 Month Annual Earnings per Share Quarterly Earnings per Share

Price Target Rating Year One Year Two Year Three Year One Year Two

Company Ticker Price Prior Current Prior Curr FYE Year Prior Current Prior Current Prior Current Qtr Prior Current Prior Current

Agnico-Eagle Mines Limited (2f, 2g, 7)

AEM US$41.25 -- US$42.00 -- SU Dec 2011 -- US$1.75A -- US$1.31E -- US$2.45E Q2-11 -- US$0.42A -- US$0.24E

AuRico Gold Inc. (2g) AUQ 8.84 -- 14.50 -- SO Dec 2011 -- US$0.68A -- US$0.76E -- US$1.41E Q2-11 -- US$0.17A -- US$0.15E

Kirkland Lake Gold Inc. (2g) KGI 12.68 24.00 22.00 -- SO Apr 2011 -- 0.29A -- 0.51E 1.57E 1.22E Q4-11 -- 0.06A -- 0.13E

Lake Shore Gold Corp. (2g) LSG 1.14 -- 2.00 -- SP Dec 2011 -- -0.03A -- 0.04E -- 0.16E Q2-11 -- -0.02A -- 0.00E

Osisko Mining Corporation (2g) OSK 8.45 15.50 13.50 -- SO Dec 2011 -- 0.04A 0.70E 0.43E 1.28E 1.22E Q2-11 -- -0.04A 0.06E 0.04E

Queenston Mining Inc. (2g) QMI 4.02 -- 7.75 -- SP Dec 2011 -- -0.11A -- -0.07E -- -0.04E Q1-11 -- -0.07A -- -0.03E

Source: Company notes and CIBC World Markets Inc.

All figures in Canadian dollars, unless otherwise stated.

Important disclosure footnotes that correspond to the footnotes in this table may be found in the "Key to Important Disclosure Footnotes" section of this report.

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Precious Metals Industry Earnings Outlook (Continued)

Cash Flow per Share 12-18 Month Annual Cash Flow per Share Quarterly Cash Flow per Share

Price Target Rating Year One Year Two Year Three Year One Year Two

Company Ticker Price Prior Current Prior Curr FYE Year Prior Current Prior Current Prior Current Qtr Prior Current Prior Current

Agnico-Eagle Mines Limited (2f, 2g, 7)

AEM US$41.25 -- US$42.00 -- SU Dec 2011 -- US$4.07A -- US$3.13E -- US$4.46E Q2-11 -- US$0.95A -- US$0.64E

AuRico Gold Inc. (2g) AUQ 8.84 -- 14.50 -- SO Dec 2011 -- US$1.10A -- US$0.97E -- US$1.74E Q2-11 -- US$0.26A -- US$0.21E

Kirkland Lake Gold Inc. (2g) KGI 12.68 24.00 22.00 -- SO Apr 2011 -- 0.39A -- 0.89E 2.12E 1.81E Q4-11 -- 0.09A -- 0.24E

Lake Shore Gold Corp. (2g) LSG 1.14 -- 2.00 -- SP Dec 2011 -- 0.03A -- 0.14E -- 0.32E Q2-11 -- 0.00A -- 0.00E

Osisko Mining Corporation (2g) OSK 8.45 15.50 13.50 -- SO Dec 2011 -- 0.15A 1.22E 0.79E 1.84E 1.76E Q2-11 -- -0.02A 0.11E 0.08E

Queenston Mining Inc. (2g) QMI 4.02 -- 7.75 -- SP Dec 2011 -- -0.06A -- -0.07E -- -0.04E Q1-11 -- -0.01A -- -0.02E

Source: Company notes and CIBC World Markets Inc.

All figures in Canadian dollars, unless otherwise stated.

Important disclosure footnotes that correspond to the footnotes in this table may be found in the "Key to Important Disclosure Footnotes" section of this report.

Made In Canada Gold Mines - June 12, 2012

4

Made In Canada Mine Tour From June 4 to June 8, 2012, CIBC organized a mine tour to visit several mining

camps in the Abitibi region. We visited Agnico-Eagle’s (AEM-SU) LaRonde mine,

Osisko’s (OSK-SO) Canadian Malartic mine, Kirkland Lake Gold’s (KGI-SO)

Macassa mine, Queenston’s (QMI-SP) Kirkland Lake area projects, Aurico’s

(AUQ-SO) Young-Davidson mine, and Lake Shore Gold’s Bell Creek Mill and

Timmins West Mine. We show below a map of our tour.

Exhibit 1. CIBC Short Bus Tour

Source: Company reports and CIB C World Markets Inc.

Agnico-Eagle – LaRonde, The Aging Cornerstone

As Agnico Eagle has progressed from a single asset company to a multi-national,

multi-asset gold producer, LaRonde has been relied upon for cash flow to fund

Agnico-Eagle’s growth. The recent shaft extension has allowed access to higher

grade ores and deeper reserves so that the mine will continue to produce for

many years to come. Our visit to the mine encompassed a ride in the new

internal shaft and a visit to the mill. General impressions were of a well run, first

world operation. Much of the discussion revolved around the likelihood of

LaRonde’s ability to beat guidance this year, which we explore in more detail

below.

Agnico-Eagle’s flagship LaRonde mine has undergone several upgrades over its

24-year operating history, including the expansion of throughput capacity to

7,200 tonnes per day (tpd) completed in 2002. Through early 2010, the mine

performed to nameplate capacity, after which throughput levels persisted lower.


5

The 7,087 tpd achieved during Q1/12 may signal a rebound to 7,000 tpd plus

levels. We currently forecast production of 155,000 ounces on average grades

of 2.3 g/t.

Exhibit 2. LaRonde Gold Production And Cash Cost

0

20

40

60

80

100

120

140

160

180

2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012E-FY

Pro

du

cti

on

(0

00

oz)

0

200

400

600

800

1,000

1,200

Ca

sh

Co

st

($/o

z)


Over the past three years, the company has invested in a 2.8 km internal shaft

for access to the deeper ore of the LaRonde Extension, which represents the

next avenue of growth. With commercial production up this shaft declared in

Q4/11, this year’s production will benefit from grades 30-35% higher.

The company has guided to full-year production of 150,000 to 165,000 ounces,

on approximately 60% ore volume contribution from LaRonde Deep, with overall

throughput expected at sub-7,000 tpd over this transition period. We think that

the top end of production guidance is achievable if normal throughput levels can

be maintained at average grades of 2.2 g/t or higher.

Exhibit 3. LaRonde Mill Throughput And Average Gold Grade

6,200

6,300

6,400

6,500

6,600

6,700

6,800

6,900

7,000

7,100

7,200

2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012E-FY

Mill T

hro

ug

hp

ut

(to

nn

es p

er

day)

0.0

0.5

1.0

1.5

2.0

2.5G

rad

e (

g/t

Au

)



6

Price Target Calculation Our $42 price target is derived from using a cash flow multiple of 9.5x our 2013

estimate of $4.46/share based on a gold price of $2,000/oz. The 9.5x cash flow

multiple represents our expectations that AEM’s valuation should compress

slightly from 11.2x 2012 CFPS currently, but hold at premium levels relative to

average group multiples. We felt that AEM’s ability to deliver on its recently

revised production outlook would dictate the extent to which the company could

regain the premium multiple it once enjoyed, and think the solid Q1 results are

likely an initial building block towards restoring investor confidence. The 9.5x

target multiple would see AEM trade at a discount to higher growth Goldcorp

(GG-SO), given its flatter production profile, but still at a premium to Newmont

(NEM-SP) and Barrick (ABX-SP). We think many investors believe the worst is

over in terms of negative surprises, and we would tend to agree. At some point,

however, we still think relative valuation should still come in to play for

investors, tempering upside potential for the stock.

Our price target implies a P/NAV multiple of 2.0x our $21.22/share NAV estimate

using a $1,500/oz. gold price and 5% discount rate. This NAV multiple represents

the highest multiple afforded any of our coverage universe due to the low political

risk associated with the jurisdictions in which AEM operates. There is some

potential for this multiple to contract, particularly if production falters.

Key Risks To Price Target

The greatest risk to our price target is our forecast for bullion prices to average

$2,000/oz. in 2013. Our price target is based on mine operations continuing

without interruptions. Mining is an inherently risky business, where technical,

political, and human issues can influence operations. In some cases, these can

be significant, such as ground condition failure, changes in foreign regulations,

or labor unrest. For AEM, Canadian dollar exchange rates play a significant role

in the cost structure of the operations, as do by-product base metals credits.

Movements in these elements could affect our price target for the shares .

Osisko Mining Corporation – Fighting Fires

Our visit to the Canadian Malartic site was well timed following the re-

commencement of full scale operations within the previous week following the

mill fire that temporarily disabled the #4 cyclone bank. We had expected to see

operations running at full steam and we were particularly looking forward to

seeing the first secondary crusher in operation. However, a tear in the conveyor

belt had temporarily stopped the first secondary crusher.

We found that it is one thing to hear about a mill construction through press

releases and analyst calls, but it is another to be in the mill and listen to

operations staff discuss the challenges of construction. The number of times we

heard “Largest in the world…..”, “Serial number 001….”, “Never been used

commercially before……”, was somewhat disturbing. While we believe that

eventually all the commissioning issues will be ironed out, it will take longer than

our (and management’s) initial estimates. The installation of the second

secondary crusher has been delayed until later in July, and management does

not expect to release updated guidance until after this second secondary crusher

has been installed. The second pebble crusher installation will follow in

September. For now, we are revising our 2012 production estimates lower, but

we recognize the capability for a “barn-burner” quarter at some point in the near

future as higher grade ore (from near the old workings) can be fed to the mill.

We had originally modeled this “barn-burner” in Q4/12, but we are now adopting

a more cautious approach. Exhibit 4 illustrates the trajectory of production

estimates over the past eight months.


7

Exhibit 4. The Trajectory Of CIBC Estimates Over The Past Eight Months

Q1/12* Q2/12 Q3/12 Q4/12 2012

OSK original est. 33,165 50,000 60,000 60,000 50,842

CIBC est May/12 32,582 26,374 48,913 53,804 40,418

CIBC est June/12 32,582 26,374 39,130 43,478 35,391

OSK original est. 1.28 1.35 1.26 1.28 1.29

CIBC est May/12 1.05 1.10 1.20 1.35 1.20

CIBC est June/12 1.05 1.00 1.03 1.10 1.05

OSK original est. 88% 85% 85% 85% 86%

CIBC est May/12 91% 89% 87% 86% 88%

CIBC est June/12 91% 89% 87% 86% 88%

OSK original est. 109,112 168,532 189,810 193,721 661,175

CIBC est May/12 91,178 75,541 151,044 184,769 502,532

CIBC est June/12 91,178 68,674 103,717 121,658 385,227

* - CIBC numbers represent actual Q1/12 numbers achieved

Ore Milled

(tonnes per day)

Head Grade (g/t

Au)

Recovery

Gold produced

(oz)


It is very important to note that, with the exception of higher power costs as

more effort is brought to bear on the ore, the Canadian Malartic depos it remains

structurally sound. Recoveries have been proven, and the block model is

reconciling well with current mine experience. It is our belief that a few years

from now, Canadian Malartic will be producing >500 kozpa consistently and

start-up difficulties will disappear into the annals of Canadian mining lore. We

are enthused by the long term prospects for Canadian Malartic, but we believe

that there is still some downside risk to the stock, particularly when Q2/12

production figures are announced. Positive production guidance (particularly if

higher grade ore is fed to the mill in 2013) could provide an updraft to the stock,

but this will only happen after the second secondary crusher is brought on-line,

and this will likely only happen after Q2/12 results are published.

During the tour, we also had the opportunity to watch a blast. Discussions while

waiting for the blast reinforced the challenges of operating near a town, even a

mining-friendly town like Malartic. There is a very limited window for blasting to

ensure that the nearby population is not unduly disturbed. After waiting for

confirmation that the wind was coming from the right direction and that all

personnel were clear of the pit, 650,000 tonnes were blasted, and a slight

murmur was about the only sound that we heard in the administration building.

In all, we would assert that Osisko has done a good job in balancing the needs

of the local community (where one in three households contain a mine

employee) and the production of gold.

In addition to our lowered estimates for 2012, we are slightly more conservative

in 2013 with estimated production now at 600K oz. vs. our previous estimate of

625K oz. which ultimately reduces our cash flow forecast. Furthermore, we are

reducing our target cash flow multiple from 8.5x to 8x to account for increased

downside risks from the continued delay in stabilizing operations at Malartic. We

are reducing our price target from C$15.50 to C$13.50 but retaining our Sector

Outperformer rating.


8

Exhibit 5. The World's Biggest Loader At Canadian Malartic

Source: CIB C World Marke ts Inc.

Price Target Calculation Our $13.50 price target (down from $15.50) is derived using a P/CF

methodology. A multiple of 8x is applied to our 2013 CFPS estimate of C$1.76 and then net debt of $0.51 is subtracted. On a P/NAV basis, a $13.50 price

target represents a multiple of 1.3x the operating assets less net debt. The cash

flow multiple reflects our expectation of a pure gold multiple for a sizeable single-asset operation in a mining-friendly jurisdiction, offset by the risks around

the ongoing challenges with the start-up of Malartic. We continue to rate Osisko Sector Outperformer.

Key Risks To Price Target The greatest risk to our price target is that gold bullion prices do not average

our forecast of US$2,000/oz. for 2013. Our price target is based on mine

operations continuing without interruptions. Mining is an inherently risky

business, where technical, political, and human issues can influence operations.

In some cases, these can be significant, such as ground condition failure,

changes in foreign regulations or labor unrest.

Kirkland Lake Gold – Upgrading Infrastructure

We visited the Macassa mine for Kirkland Lake Gold, spending a significant

amount of time underground while taking a quicker tour of the mill at surface.

The one factor that sets Macassa apart from the other assets visited on the trip

is that the expansion at Macassa revolves extensively around the upgrade of

older infrastructure at the mine, as opposed to the strategy taken by other

companies that use a more capital intensive approach by constructing

significantly more new infrastructure. A key part of the upgrade of older


9

infrastructure at Macassa is the increase in hoisting capacity. The mine is

currently skipping ore at approximately 900 tpd, while the company’s goal is to

eventually increase the hoisting capacity to 3,000 tpd by May 2013 (or the start

of F2014), to support an expansion of the mill capacity to 2,200 tpd also by May

2013.

Kirkland Lake Gold is aiming to increase production to between 180,000-

200,000 ounces in F2013 (or year beginning May 2012), from ~100,000 ounces

of production in F2012. The increase will be dependent on the company meeting

several deliverables, including a significant increase in the hoisting capacity by

August 2012. From our discussions with management, since the installation of

the Maryanne Hoist, several issues have had to be further investigated, including

prevention of overheating of the sizable AC hoist.

Another key deliverable, in part due to older ventilation infrastructure at the

mine, is the switch-over to battery-powered trucks and mining equipment

underground (from diesel-powered equipment), which will help lessen the load

on the older ventilation system, which can be costly if an upgrade is needed.

Given that Macassa will be one of the first mines to fully utilize battery-powered

equipment underground, we could expect some teething issues to surface. While

on site, we were informed that the first battery-powered truck should be arriving

shortly.

Another key discussion point during the trip was the cut-off grade used for the

reserve/resource update released at the end of May 2012. Noticeably, the cut-

off grade for reserves had been revised from 0.15 oz/t (from the previous 0.30

oz/t) resulting in a accompanying decrease in the reserve/resource grade of the

Macassa/South Mine Complex (SMC). For example, the reserve grade at the

SMC decreases from 0.74 oz/t in C2010 to 0.64 oz/t in C2011. There are a

number of reasons for the decrease in the cut-off grade, to better reflect the

economics of the deposit given a higher gold price assumption. All in all, we are

not concerned about the slight decrease in overall grade: 1) the reserve grade

continues to support the long term goal of achieving a head grade at the mill of

0.30-0.40 oz/t; 2) Macassa/SMC continues to be one of the highest grade gold

deposits in Canada; 3) The inclusion of some of the lower grade mineralization

corresponds to the expected decrease in cost per tonne as throughput increases.

We show Kirkland Lake’s gold production and total cash cost sensitivity to

throughput and grade below.

Exhibit 6. Gold Production (In Thousands Of Ounces) Sensitivity To

Throughput And Grade

Throughput (tpd)

170.00 1,000 1,200 1,400 1,600

0.34 119 143 167 191

0.36 126 152 177 202

0.38 133 160 187 213

0.40 140 168 196 225Gra

de

(g/t

)



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Exhibit 7. Total Cash Cost (US$ Per Ounce ) Sensitivity To Throughput

And Grade

Throughput (tpd)

796.62 1,000 1,200 1,400 1,600

0.34 $979 $918 $857 $795

0.36 $925 $867 $809 $751

0.38 $876 $821 $767 $712

0.40 $832 $780 $728 $676Gra

de

(g/t

)


Given the smaller stopes, and the relatively sensitive ground conditions in areas

of the mine, Kirkland Lake will need to maintain a sizable and skilled work force

to support its expansion plans. As of April 30, 2012, Kirkland Lake had a work

force of 906 employees, with the goal of increasing that number to >1,200 to

support the expansion. The high grade nature of the deposit allows the company

to pay its employees competitively, and indeed in our conversations with miners

along the Abitibi, we gather that in some cases Kirkland Lake could be paying as

much as a ~20% premium compared to competitors. The miners are needed to

support a planned doubling of the active working faces from the current level of

between 20 and 30.

Price Target Calculation We have lowered our price target to $22 (from $24) after changes to our

financial assumptions. Our price target is derived by applying a cash flow

multiple of 7x to our F2014 estimate of $3.14/share, us ing our forecast gold

price of US$2,000/oz. for that period. The $22 price target is supported by a

P/NAV multiple of 1.5x to our $14.70/share net asset value (NAV) calculated

using a gold price of US$1,500/oz. and a 5% discount rate.

Key Risks To Price Target Our price target is based on mine operations continuing without interruptions.

Mining is an inherently risky business, where technical, political and human

issues can influence operations. We consider the following as risks to our derived

price target:

Commodity Prices: All mining companies are impacted to varying degrees by

changes in commodity prices. Rising or falling commodity prices have a direct

impact on earnings, cash flow, and NAV. Commodity prices also impact

operating, capital spending, and exploration decisions, which may have longer-

term impacts. The greatest risk to our price target is our forecast for bullion

prices to average US$2,000/oz. for 2014.

Development Risk: During a project’s development phase, certain events can

lead to unforeseen delays or cost overruns, which could drastically change a

project’s economics. Macassa and the SMC are ongoing developments for

Kirkland Lake Gold (KGI–SO).

Operational Risk: Operating issues are inherent to all mining activities.

Unstable ground conditions, as an example, can lead to production shortfalls,

cost increases, and/or resource reductions (temporary or permanent). The

impact on our estimates would depend on the nature, as well as the severity, of

the operating issue.


11

Exchange Rate Risk: Kirkland Lake Gold is exposed to C$ movements against

a product that is sold in US$, which, depending on fluctuations, could affect our

price target.

Permitting Risk: Permits are essential for all development projects and mining

operations. Delays in obtaining or refusal of critical permits can have significant

ramifications on the valuation of a project or operation.

Financing: While Kirkland Lake Gold is well funded for its current plans, there

can be no guarantee that financing will be available to complete building a mine.

Markets for both equity and debt financing have been better for gold companies

than almost any other sector, but this may not be true in the future. Capital

requirements for ongoing development at Macassa and the SMC will be high but

so far the company has basically been able to self-fund its expansion plans. We

expect that as production moves above 150,000 oz. and the expansion nears

completion, the prospect for free cash flow will increase significantly. A

requirement for outside funding could jeopardize our price target.

Queenston Mining – Moving Forward

On our mine tour, we observed an increasing number of questions on the

expected sinking of the shaft at Upper Beaver, and costs related to the

preliminary economic assessment. As Queenston moves forward with the

project, we believe the engineering aspects will become increasingly more of a

focus area.

As an exploration company, Queenston is conducting advanced exploration on a

number of targets within the Kirkland Lake and Cadillac mining camps of Ontario

and Quebec, respectively. QMI holds rights to the largest continuous land

package along the Porcupine-Destor/Cadillac-Larder Lake fault zones that

collectively have produced over 40M oz. of gold in the past. The company has 3

primary targets for advanced exploration all within the Kirkland Lake project,

namely the Upper Beaver, Upper Canada and Bidgood properties (see Exhibit 8).

With each of the primary deposits being open for expansion in several directions,

we expect resource growth within the primary deposits will reach at least

700,000 oz. in 2012.

Exhibit 8. Queenston's Kirkland Lake Project Land Package

Source: Company reports.

The company’s primary focus is advancing the Upper Beaver project to

production. A Preliminary Economic Assessment was completed for the project in

Q1 that indicated the project has robust economics and the company intends to


12

begin development of an exploration shaft in 2013. The project hosts several

targets including the two porphyry zones that comprise the current 1.5M gold

equivalent ounces. We expect a revised resource for the project in H2 that will

include nearly 2 years of drilling and will expand the total resources by at least

30%. The company also discovered a new zone of near-surface mineralization in

late 2011 that could significantly increase total ounces at site in the future and

improve overall economics. To date both the deeper porphyry and the near-

surface zones remain open for expansion and we expect addition to resources to

continue.

The company is also expected to produce a revised resource estimate for the

Upper Canada project in H2. The project hosts a combination of open pit and

underground targets that remain open for expansion. The Upper Canada site is

approximately 8km to the southwest of Upper Beaver and we expect that future

ore extracted from Upper Canada could be processed at Upper Beaver reducing

the overall capital cost to develop the asset.

Price Target Calculation We calculate our price target of $7.75 for Queenston by applying a 0.8x multiple

to our 5% discounted NAV calculated at US$1,500/oz. gold. Our NAV is

comprised of a DCF component from the Upper Beaver, Upper Canada, and

McBean-Anoki deposits combined with the EV/oz. value applied to the resources

estimated at the AK and Bidgood properties. In addition, we incorporate a value

of $150 million for further exploration upside from potential resource expansion

at all properties and for the potential sale of assets in the Cadillac project in

Quebec. Finally, we add net cash and cash equivalents into our valuation.

Key Risks To Price Target We highlight a number of factors that could affect our projected price target.

Resource Expansion: There is a significant risk that our estimates for the

number of ounces and grade defined in future resource estimates may not be

realized. Our valuation is based on expansion of the current resource estimates

and the amount of ounces extracted through open-pit and underground mining.

If either of these assumptions vary from what may be realized in the future, our

NAV may be negatively affected.

Gold Price Movements: We have demonstrated that our valuation is

significantly influenced by the gold price. Although we expect the Kirkland Lake

area projects could generate positive cash flow even at gold prices below

US$1,200/oz., our NAV estimate could be substantially lowered with a reduction

in the price of gold.

Capital Requirements: We have established capital expenditure estimates for

a number of projects based on the evaluation of similar-size projects in a similar

geographic area and incorporating an estimate for inflation over several years.

We believe that our estimate accurately reflects the actual requirements that will

be incorporated into development of the Kirkland Lake area projects; however,

the early stage of the projects could lead to unforeseen costs that negatively

affect our valuation.

Financing: Queenston has sufficient funding to continue exploration for the next

two to three years based on our exploration spending assumptions. If the

development of an exploration shaft at Upper Beaver is delayed, current

finances would allow exploration to continue beyond two years. We also expect

that Queenston will be able to sufficiently finance development of the project to


13

production by means of a share issue and securing debt. As we expect

Queenston will need to secure debt to develop the project, there is no guarantee

that financing will be available through debt in the future. We also cannot

guarantee that there will be sufficient demand to warrant a substantial issue of

shares in the next two to three years. We have assumed that equity financing

will be available within a specific price range.

AuRico Gold – Eureka?

By far the most impressive asset we visited was the Young Davidson mine.

Putting valuation aside for the moment, this was a mine where the work

environment was relatively comfortable, all the equipment was new, and more

importantly, everything was working well.

Although production is still pre-commercial, the mill is already above planned

tonnage (over 7,000 tpd on occasion), and recoveries are above 80% already.

Recoveries are expected to be a little over 90% when the flotation circuit and

regrind circuit are brought on-line, and the achievement of >80% recoveries

without these circuits bodes well for this property. While it is still too early to say

for sure, there is a distinct possibility that Young Davidson could beat 2012

guidance, and this asset is already shaping up to be one of the better start-ups

for this year.

Most tour participants were impressed by the stage wise approach to the

underground mining. This approach has conserved capital but maintains

development several years ahead of mining to ensure a (relative ly)

uninterrupted mining plan. There is a short six week interruption in a couple

years to connect the final portion of the shaft into the existing infrastructure, but

there will be sufficient stockpiled open pit ore to ensure that the mill remains

full. Underground ore will start to be trucked out of the mine from the UBZ

mining block in late 2012. This is a 1,000 m haulage and will not significantly

impede development work being carried out below. This gives higher grade and

boosts underground experience without introducing significant risk.

Exhibit 9. Long Section Showing Location Of UBZ Mining Block


Much of the underground operation has been open for decades with little to no

ground support. There have been no significant ground control issues during


14

this time. Combining the competent rock with paste backfill should ensure that

there is no fall of ground, similar to what happened at Goldex.

One of the challenges still being faced by AuRico is staffing the underground

mine. As can be seen in this report, there is a huge demand for skilled

underground workers in the Abitibi. There are still less than 200 workers at

Young Davidson, and a full complement of employees at this facility will be over

300 people. While pay will be an important consideration when attracting

talented employees, we believe that a well-ventilated large operation with

relatively simple mining and solid management will be a strong draw,

particularly in the longer term.

Price Target Calculation Our C$14.50 price target (unchanged) is derived using a P/CF methodology. A

multiple of 8x is applied to our 2013 CFPS estimate of $1.74 and then net cash of $0.12 is added. A 1.00 US$/C$ exchange rate is then applied. On a P/NAV

basis, a C$14.50 price target represents a multiple of 1.4x the operating assets

plus net cash. We continue to rate AuRico Sector Outperformer.

Key Risks To Price Target The greatest risk to our price target is that silver and gold bullion prices do not

average our forecast of $35/oz. and $2,000/oz., respectively, for 2013. Our

price target is based on mine operations continuing without interruptions. Mining

is an inherently risky business, where technical, political and human issues can

influence operations. In some cases, these can be significant, such as ground

condition failure, changes in foreign regulations, or labor unrest.

Lake Shore Gold – Turning Around?

We had a chance to tour the Bell Creek Mill and the Timmins West Mine, both in

the Timmins area. Ore mined at Timmins West is processed at the Bell Creek

Mill, which is located approximately 40 kilometers to the east. The Timmins West

Complex consists of the Timmins mine and the Thunder Creek mine, each

contributing about half of the total tonnage.

Our visit started at the Bell Creek mill, which is currently undergoing an

expansion to increase mill throughput from 2000 tpd to 3000 tpd, while

improving on ore handling. Given the level of construction activity at the mill,

some investors argued that it might not have been the best time to visit the mill.

Indeed, the company is currently embarking on several projects at the mill,

including the installation of a new SAG mill to replace a secondary crusher, the

installation of new leach tanks, and a future realignment of the existing ball

mills. The mill expansion project should be completed by Q4/2012.


15

Exhibit 10. The New SAG Ball (Converted From A Ball Mill)


During our site tour of the Timmins West Mine, we had a chance to visit stopes

at both the Timmins mine and the Thunder Creek deposit. The company’s goal is

to have 3 active stopes at each deposit at any given time. Using mainly long

hole stoping mining methods, the stopes can reach sizable proportions with one

test stope we visited in the Thunder Creek deposit reaching ~65,000 tonnes,

showcasing rock competency at the mine. That said, future stopes will likely be

in the range of ~25,000 tonnes to further improve on stability.

From our observations and consistent with previous information disclosed by

management, starting in Q2 the head grade at the mill is expected to improve

from the Q1/2012 head grade of 3.4 g/t, which was in part impacted by a

significant amount of development work in the quarter. We expect head grade to

better the reserve grade of the deposits, or at ~5 g/t, in coming quarters.

Given the large land package of Lake Shore Gold, we also spent a significant

amount of time on the exploration potential of the company. Areas of focus

included the Gold River Trend, where recent exploration results highlight the

potential for additional mineralized trends to north and south of Gold River

Trend. The other key highlight is that deposits in the Gold River Trend are

located approximately 4 km from south of the Timmins West Mine shaft,

creating possibilities for operational synergies.

Beyond the mine, one of the key questions on Lake Shore Gold lies on the

financial front, as 2012 is expected to be a year of significant capex

investments, including $93 million for the development of the Timmins West

Mine and $67 million for a 50% mill expansion and other improvements. We

show below the expected cash outflows and inflows for the company in 2012.


16

Exhibit 11. Expected Cash Outflows And Inflows For LSG In 2012

Sources of Cash $ millions

Cash and bullion inventory (January 1, 2012) $66.2

Franco-Nevada royalty & equity investment $50.0

Gold Loan $35.0

Standby Line $35.0

Operating Cash Flow $75.5

Total sources of cash $261.7

Uses of Cash $ millions

Timmins West Mine expansion, including mine & mill $160.0

Advancement of Bell Creek Mine $18.0

Exploration $15.0

Corporate G&A $10.5

Financing costs $5.0

Total uses of cash $208.5


Price Target Calculation Our $2.00 price target is derived by applying a cash flow multiple of 6x to our

2013 cash flow estimate of $0.32/share. Our price target implies a cash-

adjusted P/NAV multiple of 1.1x our $1.76/share NAV estimate using a

US$1,500/oz. gold price and 5% discount rate.

Key Risks To Price Target

Our price target is based on mine operations continuing without interruptions.

Mining is an inherently risky business, where technical, political, and human

issues can influence operations. We consider the following as risks to our derived

price target:

Commodity Prices: All mining companies are impacted to varying degrees by

changes in commodity prices. Rising or falling commodity prices have a direct

impact on earnings, cash flow, and NAV. Commodity prices also impact

operating, capital spending, and exploration decisions, which may have longer-

term impacts. The greatest risk to our price target is our forecast for bullion

prices to average US$2,000/oz. for 2013.

Development Risk: During a project’s development phase, certain events can

lead to unforeseen delays or cost overruns, which could drastically change a

project’s economics. LSG has plans to increase throughput at its Bell Creek mill

and has a number of development and exploration-stage projects in Thunder

Creek, Bell Creek, Fenn-Gib, and Thorne (GRT).

Operational Risk: Operating issues are inherent to all mining activities.

Unstable ground conditions, as an example, can lead to production shortfalls,

cost increases, and/or resource reductions (temporary or permanent). The

impact on our estimates would depend on the nature, as well as the severity, of

the operating issue.

Exchange Rate Risk: LSG is exposed to C$ movements against a product that

is sold in US$, which, depending on fluctuations, could affect our price target.


17

Permitting Risk: Permits are essential for all development projects and mining

operations. Delays in obtaining or refusal of critical permits can have significant

ramifications on the valuation of a project or operation.

Financing: While LSG is well funded for its current plans, there can be no

guarantee that financing will be available to complete building a mine. Markets

for both equity and debt financing have been better for gold companies than

almost any other sector, but this may not be true in the future. We have

assumed that not only is financing available, but also that it is equity financing

(to avoid the problems of hedging requirements associated with debt financing)

and at specific prices that may not be realized.

The CIBC analysts covering these companies visited the mines between June 5

to June 8. CIBC paid for the airfare from Toronto to Val d’Or and also from

Timmins back to Toronto. CIBC also paid for all local transportation and

accommodations.


18

Agnico-Eagle Mines Sector UnderPerformerAEM-NYSE 6/12/12 $41.14 Alec Kodatsky, (416-594-7284) [email protected]

12- To 18- Month Price Target: $42.00 Chitimukulu Musonda, (416-594-7462) [email protected]

Precious Metals Terry Tsui, (416-956-3287) [email protected]

Sector Weighting: Overweight Barry Cooper, (416-956-6787) [email protected]

All figures in US$ million, unless otherwise stated. Gold price assumption in yr 2011 @ $1575, yr 2012 @ $1800, and yr 2013 @ $2000

Risk adjusted discount rates vary from 8% to 15% depending on the location of the asset and its technical challenges

Multiples EV/NAV* EV/NAV^ 2012 PCF 2013 PCF

Agnico - Eagle 1.8x 2.4x 14.2x 10.0x

North American Average 0.8x 1.2x 9.1x 5.8x

Large Cap Average (>$10B) 1.3x 2.2x 8.4x 6.1x

Mid Cap Average ($2B-$10B) 1.1x 1.5x 12.7x 7.9x

Small Cap Average (<$2B) 0.6x 0.9x 5.5x 3.4x

* Using: $1500/oz And 5% ^ Using: $1500/oz @ Risk Adjusted Discount Rates

P/NAV Sensitivity $1,200 $1,400 $1,600 $1,800

Agnico - Eagle 3.8x 2.2x 1.5x 1.2x





Key Financial Metrics EV ($mln) EV/Prod+ EV/2P* EV/R&R^ Production Profile

Agnico - Eagle $7,626 $8,282 $358 $275

North American Average $6,503 $330 $172

Large Cap Average (>$10B) $9,445 $440 $298

Mid Cap Average ($2B-$10B) $5,944 $284 $149

Small Cap Average (<$2B) $3,561 $243 $131

+ 2012E Production * Current Proven & Probable Reserves ^ Current Reserves and Resources

Income Statement 2010A 2011A 2012E 2013E

Gold Price Assumption 1225 1575 1800 2000

Zinc Price 0.94 1.00 1.00 1.00

Copper Price 3.21 4.00 4.00 3.75

Silver Price 18 35 35 35

CDN$/US$ 0.97 1.02 1.00 0.95

Production (000s ounces) 988 985 921 1000

Total Cash Costs/oz (by-p) 451 593 625 604 Production (2012E)/Modeled Resource Detail

Total Cash Costs/oz (co-p) 657 714 760 716 Asset Production* Cash Costs^ 2P M & I

Capital Expenditures 482 445 555 Pinos Altos 182 314 3103 840

Meadowbank 286 965 2201 1317

Revenues 1517 1817 1828 2118 LaRonde 155 193 4891 6504

Expenses Goldex 0 0 0 2091

Operating Expenses 678 876 952 979 Lapa 100 765 502 258

D,D&A 193 262 244 252 Kittila 145 782 5177 1026

S,G & A 114 108 125 125 Total 921 625 15,874 12,037

Exploration 55 76 105 105 * Gold (000s oz) 2P: Proven & Probable Reserves (000s oz)

Other Expenses 63 64 61 52 ^ Net of by product credits (if applicable) M & I: Measured and Indicated Resources (000s oz)

Total Expenses 1102 1386 1487 1513

NAV Breakdown Using Gold Price of: $1,500

Income Before Tax 415 431 341 605 Ownership Discount Rate US$ Millions Per Share

Income and Mining Tax 127 116 78 138 Cash 221 1.32

Deferred Taxes 48 49 42 53

Net Income 240 266 222 415 Operations

LaRonde 100% 5% 838 4.98

EPS 1.48 1.75 1.31 2.45 Goldex 100% 5% 0 0.00

CFPS 3.43 4.07 3.13 4.46 Kittila 100% 5% 967 5.74

Lapa 100% 5% 211 1.26

Shares Outstanding 162 169 169 169 Meliadine 100% 5% 513 3.05

Pinos Altos 100% 5% 1,083 6.44

Asset Locations Meadowbank 100% 5% 512 3.04

Creston 100% 5% 192 1.14

Other Exploration 100 0.59

Total Assets 4,638 27.55

Debt 920 5.47

Reclamation 145 0.86

Total Liabilities 1,065 6.33

NET ASSET VALUE 3,573 21.22

Agnico-Eagle's growth profile has been impaired by the Goldex incident for this year but continues in

the out years. Its development projects in safe jurisdictions however start-ups have been difficult and

thus past trading multiples are likely to compress significantly . Multiple contraction has been occurring

as the growth transforms from dream to reality of real cash flow but may accelerate as a management

premium is removed from the share price. In part the multiple compression will be partly offset by

increased financial performance for the company and thus a softer landing might be predicted. AEM

remains a core holding within a broad gold portfolio and an excellent way to mitigate some of the

inherent risk associated with companies that are active in regions of the world where there is

uncertainty . The company may have some rebuilding to do with investors who may have felt the

technical risks associated with the company's development projects were being minimized.

Investment Thesis

LaRonde

Lapa

Goldex

Pinos Altos

Kittila

Meadowbank

0

200

400

600

800

1,000

1,200

2008A 2009A 2010A 2011A 2012E 2013E 2014E

Pro

du

cti

on

000s O

un

ces

100

200

300

400

500

600

700

800

$/o

z C

ash

Co

st

Total Production Cash Costs Total Co-product costs


19

AuRico Gold Inc. Sector OutperformerAUQ-TSX 6/12/12 $8.64 Brian Quast (416-956-3725) [email protected]

12- To 18- Month Price Target: C$14.50 Barry Cooper (416-956-6787) [email protected]

Precious Metals Rob Hales, CFA (416-594-7261) [email protected]


All figures in US millions, unless otherwise stated.

Multiples (USD) EV/NAV 2011A P/CF 2012E P/CF 2013E P/CF

AuRico Gold Inc. 0.9x 7.9x 9.0x 5.0x




P/NAV Sensitivity (USD) $1,200 $1,500 $1,800 $2,000

AuRico Gold Inc. 1.3x 0.8x 0.6x 0.5x




Key Financial Metrics EV EV/Prod EV/2P EV/M&I&I

AuRico Gold Inc. $2,643 $14,105 $364 $162




Income Statement 2010A 2011A 2012E 2013E Project Locations

Revenues 238 402 637 877

Operating Expenditures 101 128 207 230

S,G&A 23 32 38 24

D,D&A 47 53 73 90

Other Expenses 5 18 7 4

Total Expenses 175 232 325 348

Tax Expense (Recovery) 4 53 65 132

Net Income 60 117 247 397

EPS $0.43 $0.68 $0.76 $1.41

CFPS $0.78 $1.10 $0.97 $1.74

Shares Outstanding 139 182 282 282

Net Asset Value Discount Rate Ownership Value Per Share Reserves & Resources Tonnes Grade (g/t) Gold ('000 oz) Silver ('000 oz)

Ocampo 5% 100% $1,083 $3.84 Ocampo 105,994 0.5 1,621 70,727

El Cubo 5% 100% $0 $0.00 El Chanate 64,342 0.6 1,324 na

Guadalupe Y Calvo 5% 100% $0 $0.00 Young-Davidson 61,254 2.4 4,789 na

El Chanate 5% 100% $273 $0.97 Kemess UG 136,500 0.6 2,458 na

Orion 5% 100% $50 $0.18

Young-Davidson 5% 100% $1,360 $4.82

Kemess UG 5% 100% $125 $0.44 CIBC Forecast 2010A 2011A 2012E 2013E

Fosterville 5% 100% $0 $0.00

Stawell 5% 100% $0 $0.00 Gold ($/oz) $1,227 $1,575 $1,800 $2,000

$2,891 $10.25 Silver ($/oz) $20 $35 $35 $35

Production & Costs 2010A 2011A 2012E 2013E

Cash $368 $1.31

Debt ($333) ($1.18) Gold Production (000 oz.) 114 187 245 353

Total $2,926 $10.38 Gold Eq. Production (000 oz.) 196 295 350 438

Cash Costs - Gold ($/oz.) ($42) ($107) $68 $166

Cash Costs - Gold Eq.($/oz.) $488 $506 $523 $525

Company Profile

AuRico Gold Inc. is a mid-tier gold and silver producer operating in Mexico and Canada. The company

has two operating assets: Ocampo, and El Chanate, and three development properties: Young-

Davidson, Kemess, and Orion.

Investment Thesis

We believe new management has done reasonably well bringing Ocampo up to potential, but the

market remains cautious due to problems of the past. A series of good quarters is needed to establish

confidence again. With the addition of El Chanate and the recently acquired Young-Davidson project,

Aurico has built a solid production growth profile. Commissioning of Young-Davidson will be the key

challenge for the company. If successful, we believe the stock will re-rate to a valuation in-line with

intermediate producers.

0

100

200

300

400

500

2010A 2011A 2012E 2013E

(000

oz.

)

($200)

($100)

$0

$100

$200

$300

$400

$500

$600

Gold Production (000 oz.) Gold Eq. Production (000 oz.)

Cash Costs - Gold ($/oz.) Cash Costs - Gold Eq.($/oz.)

El Chanate

Ocampo

Young-Davidson

Kemess

AGI

AEM

ABX

EGO

GG

KGI

CG

IAG

TGZ

KGC

LSG

NEM AUY

FNV

RGLD

OSK

SMF

NGD

SGR

ARZ

GSS

CGA

ANV

BAA

CRJ

PRU

RIC

AUQ

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

0.2x 0.4x 0.6x 0.8x 1.0x 1.2x 1.4x 1.6x 1.8x 2.0x

P/NAV (Cash-Adjusted)

P/C

F (

2013

E)



20

KIRKLAND LAKE GOLD INC Sector OutperformerKGI-TSX 6/12/12 $12.66 Cosmos Chiu, CFA (416-594-7106) [email protected]

12- To 18- Month Price Target: $22.00 Barry Cooper, (416-956-6787) [email protected]

Precious Metals Kevin Chiew, (416-594-7457) [email protected]


All figures in C$ millions, unless otherwise stated.

Multiples 2011 PCF 2012 PCF 2013 PCF

Kirkland Lake 13.2x 6.2x 3.8x

North American Average 11.0x 8.7x 5.7x

Large Cap Average (>$10B) 9.5x 8.2x 6.0x

Mid Cap Average ($2B-$10B) 12.8x 12.1x 7.7x

Small Cap Average (<$2B) 9.0x 5.2x 3.3x

P/NAV @ Gold Price US$/oz $1,200 $1,300 $1,400 $1,500

Kirkland Lake 1.5x 1.2x 1.0x 0.8x





Key Financial Metrics EV ($mln) EV/Prod EV/2P EV/R&R

Kirkland Lake $839 $8,369 $601 $352





Income Statement F2011A F2012E F2013E F2014E

Gold Price Assumptions US$ $1,225 $1,575 $1,800 $2,000

Production (000s ounces) 82 100 170 243

Cash Costs US$/oz $811 $855 $797 $730

Revenues $105 $167 $307 $487

Expenses

Operating Expenses $66 $88 $135 $177

D,D&A, Reclamation $8 $13 $23 $33 Reserves/Resources Category Tons* (oz/ton) (g/tonne) Ounces*

S,G&A $3 $6 $8 $9 South Mine Complex 2P 1,273 0.64 22.0 816

Exploration $9 $13 $18 $18 M&I** 1,242 0.63 21.5 780

Inferred 1,000 0.66 22.7 662

Total Expenses $86 $120 $184 $237 Main Zones And Others 2P 1,611 0.41 14.0 657

M&I 2,192 0.38 13.2 843

Income Before Tax $19 $48 $122 $250 Inferred 971 0.35 12.1 342

Income Taxes -$1 $12 $37 $87 * in thousands

Net Income $20 $36 $86 $162 ** includes 50% of resources estimated in South Claims JV property

EPS $0.29 $0.51 $1.22 $2.32 Production And Costs F2011A 2012E 2013E 2014E

CFPS $0.39 $0.89 $1.81 $3.14 Production ('000 oz)

SMC and Main Zone 82 100 170 243

Shares Outstanding 69 70 70 70 Total Cash Costs/oz

Capital Expenditures $60 $52 $72 $40 SMC and Main Zone $842 $855 $797 $730

Scattergram: 2012E Cash Flow Multiples And Cash-adj. NAV Multiples NAV Breakdown Using US$ Gold Price Of: $1,500

Mining Assets Ownership Discount Rate $ Millions Per Share

SMC and Main Zone 100% 5% $947 $13.51

Exploration 100% 5% $110 $1.57

Subtotal $1,057 $15.08

Balance Sheet

Cash + ST Investiments $28 $0.39

Remaining Payments To QMI -$50 -$0.71

LT Debt $0 $0.00

Reclamation -$4 -$0.06

Subtotal -$27 -$0.38

Net Asset Value $1,031 $14.70

Production Profile

Company Profile

Investment Thesis

Kirkland Lake Gold is an operating gold mining company located in Canada. The company's flagship mine is the

Macassa Mine located in Kirkland Lake, Ontario.

At the Macassa mine, the high-grade nature of the South Mine Complex (SMC) offers up interesting prospects for

grade enhancement at the mine. The company is currently targeting a production rate of 2,200 tpd by May 2013 for

annual gold production of 250,000 to 300,000 ounces. KGI continues to intersect gold mineralization that is among the

highest concentrations in the world, and we believe that as production is realized the market will recognize that this

camp is worthy of similar premium multiples afforded operations in Red Lake.

AEM

ABX

EGOGG

KGI

AGI

CG

IAG

TGZKGC

LSG NEM

AUY

FNV

RGLD

OSK

AUQ

SMF

NGD

SGR

ARZ

GSS

CGA

ANV

CRJ

PRU

RIC

BAA

0x

2x

4x

6x

8x

10x

12x

14x

16x

18x

20x

22x

24x

0.0x 0.3x 0.5x 0.8x 1.0x 1.3x 1.5x 1.8x 2.0x 2.3x

Cash-adjusted NAV Multiples

CF

Mu

ltip

les

Cash Adjusted NAV multiples calculated

using gold price of $US1,500 per ounce and

5% discount rate

Cash flow multiples calculated at

$US1,800 gold price for 2012 estimates

0

50

100

150

200

250

300

F2

01

0

F2

01

1

F2

01

2

F2

01

3E

F2

01

4E

Pro

du

ctio

n 0

00

s O

un

ces

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

To

tal C

ash

Co

st (

$/o

z)

Production Total Cash Costs

Source: Thomson One, c ompany reports and CIB C World Markets Inc.


21

LAKE SHORE GOLD Sector PerformerLSG-TSX 6/12/12 $1.12 Cosmos Chiu, CFA (416-594-7106) [email protected]

12- To 18- Month Price Target: $2.00 Barry Cooper, (416-956-6787) [email protected]

Precious Metals Kevin Chiew, (416-594-7457) [email protected]


All figures in C$ millions, unless otherwise stated.

Multiples 2011 PCF 2012 PCF 2013 PCF

Lake Shore N/A 7.0x 3.0x

North American Average 11.0x 8.7x 5.7x

Large Cap Average (>$10B) 9.5x 8.2x 6.0x

Mid Cap Average ($2B-$10B) 12.8x 12.1x 7.7x

Small Cap Average (<$2B) 9.0x 5.2x 3.3x

P/NAV @ Gold Price US$/oz $1,200 $1,300 $1,400 $1,500

Lake Shore 1.9x 1.1x 0.8x 0.5x





Key Financial Metrics EV ($mln) EV/Prod EV/2P EV/R&R

Lake Shore $339 $6,610 $418 $104





Income Statement 2010A 2011A 2012E 2013E

Gold Price Assumptions US$ $1,225 $1,575 $1,800 $2,000

Reported Production (000 oz) 44 84 89

Commercial Production (000 oz) 55 89 133

Cash Costs US$/oz $811 $875 $776

Reserves And Resources Category Tonnes* Grade (g/t) Ounces*

Revenues $0 $68 $162 $282 Timmins 2P 2,250 5.61 406

Expenses M&I 2,949 6.34 601

Operating Expenses $0 $36 $77 $109 Inferred 1,579 5.54 282

D,D&A, Reclamation $1 $17 $30 $44 Bell Creek M&I 4,249 4.73 646

S,G&A $12 $17 $19 $20 Inferred 6,089 4.87 954

Exploration $1 $10 $10 $10 Thunder Creek M&I 2,673 4.86 418

Total Expenses $14 $79 $136 $183 Inferred 2,693 5.89 510

Fenn-Gib M&I 40,800 0.99 1,300

Income Before Tax -$14 -$10 $26 $99 Inferred 24,500 0.95 750

Income Taxes -$1 $1 $9 $35 Marlhill M&I 395 4.52 47

Net Income -$12 -$11 $17 $64 Vogel M&I 2,219 1.75 125

Inferred 692 1.43 32

EPS -$0.03 -$0.03 $0.04 $0.16 Vogel UG Inferred 767 5.56 137

CFPS -$0.03 $0.03 $0.14 $0.32 Gold River Trend Deposits M&I 690 5.29 117

Inferred 5,273 6.06 1,028

Shares Outstanding 358 389 410 410 * in thousands, M&I inclusive of 2P

Capital Expenditures $127 $119 $168 $90 Production And Costs 2010A 2011A 2012E 2013E

Production ('000 oz)

Scattergram Of 2012E Cash Flow Multiples And Cash-adjusted NAV Multiples Timmins 51 74 115

Bell Creek 18

Total Cash Costs/oz

Timmins $813 $875 $763

Bell Creek $856

NAV Breakdown Using US$ Gold Price Of: $1,500

Mining Assets Ownership Discount Rate $ Millions Per Share

Timmins 100% 5% $444 $1.08

Bell Creek 100% 5% $91 $0.22

Fenn-Gibb 100% 5% $74 $0.18

Exploration 100% 5% $100 $0.24

Subtotal $709 $1.73

Balance Sheet

Cash + ST Investiments $66 $0.16

LT Debt -$49 -$0.12

Reclamation -$5 -$0.01

Subtotal $12 $0.03

Net Asset Value $721 $1.76

Production Profile

Company Profile

Investment Thesis

Lake Shore Gold Corp. is a mining company that declared commercial production at its Timmins mine in

January 2011. The company is currently developing two other deposits in the Timmins area, Thunder

Creek and Bell Creek.

Lake Shore Gold has experienced some operational challenges since declaring commercial production at

the Timmins mine. However, with the potential of three operating mines and a centralized mill in the

Timmins area, LSG could have one of the highest production growth rates in our universe. We believe

valuation is also backstopped by LSG's large resource base, which is one of the biggest among Canadian

peers. Execution of plans will be key in regaining confidence in the market.

0

50

100

150

200

250

300

20

11

A

20

12

E

20

13

E

20

14

E

20

15

E

Pro

du

ctio

n 0

00

s O

un

ces

$500

$550

$600

$650

$700

$750

$800

$850

$900

$/o

z C

ash

Co

st

Bell Creek Timmins Total Cash Costs

AEM

ABX

EGOGG

KGI

AGI

CG

IAGTGZ

KGC

LSG NEM

AUY

FNV

RGLD

OSK

AUQ

SMF

NGD

SGRARZ

GSS

CGA

ANV

CRJ

PRU

RIC

BAA

0x

2x

4x

6x

8x

10x

12x

14x

16x

18x

20x

22x

24x

0.0x 0.3x 0.5x 0.8x 1.0x 1.3x 1.5x 1.8x 2.0x 2.3x

Cash-adjusted NAV Multiples

CF

Mul

tiple

s

Cash Adjusted NAV mult iples calculated

using gold price of $US1,500 per ounce and

5% discount rate

Cash f low mult iples calculated at

$US1,800 gold price for 2012 est imates

Source: Thomson One, c ompany reports and CIB C World Markets Inc.


22

Osisko Mining Corp. Sector OutperformerOSK-TSX 6/12/12 $8.37 Brian Quast (416-956-3725) [email protected]

12- To 18- Month Price Target: C$13.50 Barry Cooper (416-956-6787) [email protected]

Precious Metals Rob Hales, CFA (416-594-7261) [email protected]


All figures in US millions, unless otherwise stated.

Multiples (USD) EV/NAV 2011A P/CF 2012E P/CF 2013E P/CF

Osisko Mining Corp. 0.9x 62.1x 11.5x 5.2x




P/NAV Sensitivity (USD) $1,200 $1,500 $1,800 $2,000

Osisko Mining Corp. 1.7x 0.8x 0.5x 0.4x




Key Financial Metrics EV EV/Prod EV/2P EV/M&I&I

Osisko Mining Corp. $3,454 $19,085 $322 $144




Income Statement 2010A 2011A 2012E 2013E Project Locations

Revenues 3 263 706 1,199

Operating Expenditures 0 161 317 322

S,G&A 34 20 20 20

D,D&A 0 22 54 81

Other Expenses 1 16 0 6

Total Expenses 35 219 391 429

Tax Expense (Recovery) (4) 3 96 253

Net Income (28) 15 165 470

EPS ($0.08) $0.04 $0.43 $1.22

CFPS ($0.04) $0.15 $0.79 $1.76

Shares Outstanding 358 384 386 386

Net Asset Value Discount Rate Ownership Value Per Share Reserves & Resources Tonnes Grade (g/t) Gold ('000 oz) Silver ('000 oz)

Canadian Malartic 5% 100% $3,380 $8.76 Canadian Malartic 372,900 1.02 12,230 -

Hammond Reef 5% 100% $764 $1.98

$4,144 $10.74

Cash $144 $0.37

LTD ($342) ($0.89)

Total $3,946 $10.23 CIBC Forecast 2010A 2011A 2012E 2013E

Gold ($/oz) $1,227 $1,575 $1,800 $2,000

Silver ($/oz) $17 $32 $35 $35

Production & Costs 2010A 2011A 2012E 2013E

Gold Production (000 oz.) 0 181 385 600

Gold Eq. Production (000 oz.) 0 181 385 600

Cash Costs - Gold ($/oz.) $0 $955 $834 $537

Cash Costs - Gold Eq.($/oz.) $0 $955 $834 $537

Company Profile

Osisko Mining Corporation is on track to become the newest Canadian intermediate gold producer with

its flagship 100% owned Canadian Malartic gold deposit in Quebec.

Investment Thesis

OSK is developing one of the largest resources of gold in Canada and has started production at its

Canadian Malartic mine in Quebec. With more than 600,000 ounces of production, OSK will bypass the

junior producer status and advance right to an intermediate gold producer. We think that this size of

production enjoys a sweet spot amongst investors who see it large enough to be liquid and meaningful

yet small enough to provide future growth. Osisko has already made a move to fulfill the growth aspect

by taking on the Hammond Reef deposit. With delivery from its flagship Canadian Malartic project we

expect that investors will afford decent multiples to the cash generation from the mine. An always

hungry sector for big deposits, the potential for a take out is also good and perhaps enhanced as

technical de-risking has taken place.

0

100

200

300

400

500

600

700

2010A 2011A 2012E 2013E

(000

oz.

)

$0

$200

$400

$600

$800

$1,000

$1,200

Gold Production (000 oz.) Gold Eq. Production (000 oz.)

Cash Costs - Gold ($/oz.) Cash Costs - Gold Eq.($/oz.)

Hammond Reef

Canadian Malartic

AGI

AEM

ABX

EGO

GG

KGI

CG

IAG

TGZ

KGC

LSG

NEM AUY

FNV

RGLD

OSK

SMF

NGD

SGR

ARZ

GSS

CGA

ANV

BAA

CRJ

PRU

RIC

AUQ

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

0.2x 0.4x 0.6x 0.8x 1.0x 1.2x 1.4x 1.6x 1.8x 2.0x

P/NAV (Cash-Adjusted)

P/C

F (

2013

E)



23

Queenston Mining Inc. Sector PerformerQMI-TSX 6/12/12 C$3.92 Jeff Killeen (416-956-6218) [email protected]

12- To 18- Month Price Target: C$7.75

Precious Metals


All figures in US$ million, unless otherwise stated. Gold price assumption in yr 2012@ $1800, and yr 2013 @ $2000

Risk adjusted discount rates vary from 8% to 15% depending on the location of the asset and its technical challenges

Key Multiples EV/NAV* EV/NAV^ 2011 PE 2012 PE 2011 PCF 2012 PCF

Queenston 0.3x 2.9x NA NEG NEG NEG

North American Average 0.8x 1.2x 18.9x 14.8x 11.0x 08.8x

Large Cap Average (>$10B) 1.2x 2.2x 14.3x 11.2x 09.5x 08.2x

Mid Cap Average ($2B-$10B) 1.1x 1.5x 22.3x 19.7x 12.8x 12.4x

Small Cap Average (<$2B) 0.6x 0.9x 15.8x 10.5x 09.0x 05.2x

Large Cap Average > 1M oz 0.8x 1.2x 23.7x 17.6x 13.2x 11.0x

Intermediate Producers 0.2-1 M oz 1.0x 1.5x 19.2x 15.0x 11.5x 09.3x

Small Producers < 0.2M oz 0.8x 1.1x 16.7x 11.2x 10.8x 07.9x

P/NAV Sensitivity P/NAV P/NAV P/NAV P/NAV P/NAV P/NAV Production Profile

Avg. Gold Px - US$ $1,300 $1,400 $1,600 $1,300 $1,400 $1,600

Queenston 2.2x 1.9x 1.4x 3.2x 2.8x 2.1x

North American Average 1.2x 0.9x 0.7x 1.8x 1.5x 1.0x

Large Cap Average (>$10B) 1.6x 1.4x 1.1x 2.9x 2.5x 1.9x

Mid Cap Average ($2B-$10B) 1.4x 1.2x 0.9x 2.1x 1.8x 1.3x

Small Cap Average (<$2B) 0.9x 0.7x 0.5x 1.5x 1.1x 0.7x

Large Cap Average > 1M oz 1.1x 0.9x 0.8x 1.6x 1.4x 1.1x

Intermediate Producers 0.2-1 M oz 1.4x 1.1x 0.9x 2.2x 1.8x 1.3x

Small Producers < 0.2M oz 1.2x 0.9x 0.6x 0.7x 0.6x 0.9x

Income Statement 2010A F2011A F2012E F2013E

Gold Price Assumptions US$ $1,227 $1,575 $1,800 $2,000 Asset Prodution Cash Costs 2P M & I & I

Underground (All Properties) 0 0 0 2,985

Production (000s ounces) 0 0 0 0 Open Pit (All Properties) 0 0 0 269

Cash Costs US$/oz 0 0 0 0 Total 0 $0 0 3,254

Capital Expenditures 0 0 0 50 * Gold (000s oz) 2P: Modeled Proven & Probable Reserves (000s oz)

Revenues 0 6 0 0 ^ Net of by product credits (if applicable) M & I & I: Measured & Indicated & Inferred Resources (000s oz)

Expenses

Operating Expenses 0 0 0 0 Ownership Discount Rate US$ Millions Per Share

D,D&A, Reclamation 0 0 0 0 Current Assets

S,G&A 6 4 6 6 Cash and Equiv. $118 $1.42

Exploration 0 0 0 0 Mining Assets

Other Expenses 0 0 0 0 Upper Beaver (U/G) 100.0% 5.0% $352 $4.27

Total Expenses 6 4 6 6 McBean-Anoki (U/G) 100.0% 5.0% $29 $0.35

Upper Canada (O/P) 100.0% 5.0% $65 $0.79

Income Before Tax -6 -3 -6 -6 Upper Canada (U/G) 100.0% 5.0% $25 $0.30

Income Taxes -2 6 0 0

Net Income -4 -9 -6 -6 Other EXPL Assets $185 $2.25

Total Assets $774 $9.38

EPS -0.05 -0.11 -0.07 -0.04 Liabilities

CFPS -0.05 -0.06 -0.07 -0.04 Other Liabilities $8 $0.10

Reclamation $0 $0.00

Shares Outstanding 74 78 83 142 Total Liabilities $8 $0.10

Net Asset Value (CAD) $766 $9.28

EV Statistics - US$ EV ($mln) EV/Prod EV/2P* EV/R&R^ Asset Locations

Queenston $259 NA NA $79





Large Cap Average > 1M oz $7,733 $248 $180

Intermediate Producers 0.2-1 M oz $7,265 $350 $211

Small Producers < 0.2M oz $5,726 $640 $142

* Proven & Probable Reserves ^ Reserves and Resources

Production (2011E) Modeled Resource Detail

NAV Breakdown - US$ Gold Price of: $1,500

^ Using: $1500/oz @ Risk Adjusted Discount Rates

* Cash Adjusted NAV Multiples Using: $1500/oz Gold Pricing And 5% Discount Rates

5% Discount Risk Adjusted Discount

Investment Thesis

QMI is conducting exploration on new and previously discovered deposits in the two historic mining camps of Kirkland Lake in

Ontario and Cadillac in Quebec. The company has the largest land package in the Kirkland Lake Camp at over 230 square

kilometers and has compliant resources on 7 separate deposits. They offer a blend of open pit and underground targets that

are close to major infrastructure and mining support services. Over 3.2 million oz. of gold have been identified to NI 43-101

standards and an additional 0.9 million oz. of historic resources are within the Kirkland Lake project alone. Past production on

the collective properties exceeds 3.5 million oz. at approximately 10.5 g/t. With an extensive exploration program underway

that is both well financed and can operate uninterrupted year-round, we expect that QMI will be successful in adding

approximately 700,000 oz. to their resource inventory within the next 12 months and provide continuous news flow over the

coming months. We expect resource expansion, particularly at the Upper Beaver deposit, will drive the stock in 2012.

KIRKLAND

LAKE

CADILLAC

0

50

100

150

200

250

2015E 2016E 2017E 2018E 2019E

Pro

du

cti

on

000s

Ou

nces

$440

$460

$480

$500

$520

$540

$560

$/o

z C

ash

Co

st

Underground Open Pit Total Cash Costs



24

IMPORTANT DISCLOSURES:

Analyst Certification: Each CIBC World Markets research analyst named on the front page of this research report, or

at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein

accurately reflect such research analyst's personal views about the company and securities that are the subject of this

report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii)

no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific

recommendations or views expressed by such research analyst in this report.

Potential Conflicts of Interest: Equity research analysts employed by CIBC World Markets are compensated from

revenues generated by various CIBC World Markets businesses, including the CIBC World Markets Investment Banking

Department. Research analysts do not receive compensation based upon revenues from specific investment banking

transactions. CIBC World Markets generally prohibits any research analyst and any member of his or her household from

executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets

generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that

such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report,

CIBC World Markets may have a long position of less than 1% or a short position or deal as principal in the securities

discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures

set forth below, may at times give rise to potential conflicts of interest.


25

Important Disclosure Footnotes for Companies Mentioned in this Report that Are Covered by CIBC World Markets Inc.:

Stock Prices as of 06/12/2012:

Agnico-Eagle Mines Limited (2f, 2g, 7) (AEM-NYSE, US$41.25, Sector Underperformer)

Alamos Gold Inc. (2g) (AGI-TSX, $17.85, Sector Performer)

Allied Nevada Gold Corp. (2g) (ANV-AMEX, US$29.27, Sector Performer)

AuRico Gold Inc. (2g) (AUQ-TSX, $8.84, Sector Outperformer)

Aurizon Mines Ltd. (2g) (ARZ-TSX, $5.06, Sector Performer)

Banro Corporation (2a, 2c, 2e, 2g) (BAA-TSX, $4.65, Sector Outperformer)

Barrick Gold Corporation (2a, 2b, 2d, 2e, 2f, 2g, 7) (ABX-NYSE, US$38.54, Sector Performer)

Centerra Gold Inc. (2g) (CG-TSX, $11.96, Sector Outperformer)

CGA Mining Limited (2g, 7) (CGA-TSX, $1.98, Sector Outperformer)

Claude Resources Inc. (2g) (CRJ-TSX, $0.67, Sector Performer)

Eldorado Gold Corporation (2g, 7) (EGO-NYSE, US$12.13, Sector Performer)

Franco-Nevada Corporation (2a, 2c, 2e, 2g, 4a, 4b) (FNV-TSX, $47.42, Sector Outperformer)

Goldcorp Inc. (2f, 2g, 7) (GG-NYSE, US$39.39, Sector Outperformer)

Golden Star Resources Ltd. (2g) (GSS-AMEX, US$1.24, Sector Performer)

IAMGOLD Corporation (2a, 2e, 2g, 7) (IAG-NYSE, US$12.43, Sector Outperformer)

Kinross Gold Corporation (2a, 2c, 2d, 2g, 7) (KGC-NYSE, US$8.34, Sector Performer)

Kirkland Lake Gold Inc. (2g) (KGI-TSX, $12.68, Sector Outperformer)

Lake Shore Gold Corp. (2g) (LSG-TSX, $1.14, Sector Performer)

New Gold Inc. (2g) (NGD-TSX, $10.52, Sector Performer)

Newmont Mining Corporation (2a, 2c, 2e, 2g) (NEM-NYSE, US$50.52, Sector Performer)

Osisko Mining Corporation (2g) (OSK-TSX, $8.45, Sector Outperformer)

Perseus Mining Limited (2a, 2c, 2e, 2g) (PRU-TSX, $2.86, Sector Outperformer)

Richmont Mines Inc. (2g) (RIC-TSX, $6.45, Sector Performer)

Royal Gold, Inc. (2g) (RGLD-NASDAQ, US$80.19, Sector Performer)

San Gold Corporation (2g) (SGR-TSX, $1.26, Sector Performer)

Semafo Inc. (2g) (SMF-TSX, $5.64, Sector Outperformer)

Teranga Gold Corp. (2g) (TGZ-TSX, $2.01, Sector Performer)

Yamana Gold Inc. (2a, 2e, 2g, 7) (AUY-NYSE, US$16.12, Sector Performer)

Important disclosure footnotes that correspond to the footnotes in this table may be found in the "Key to

Important Disclosure Footnotes" section of this report.


26

Key to Important Disclosure Footnotes:

1 CIBC World Markets Corp. makes a market in the securities of this company.

2a This company is a client for which a CIBC World Markets company has performed investment banking services

in the past 12 months.

2b CIBC World Markets Corp. has managed or co-managed a public offering of securities for this company in the

past 12 months.

2c CIBC World Markets Inc. has managed or co-managed a public offering of securities for this company in the

past 12 months.

2d CIBC World Markets Corp. has received compensation for investment banking services from this company in

the past 12 months.

2e CIBC World Markets Inc. has received compensation for investment banking services from this company in the

past 12 months.

2f CIBC World Markets Corp. expects to receive or intends to seek compensation for investment banking services

from this company in the next 3 months.

2g CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services

from this company in the next 3 months.

3a This company is a client for which a CIBC World Markets company has performed non-investment banking,

securities-related services in the past 12 months.

3b CIBC World Markets Corp. has received compensation for non-investment banking, securities-related services

from this company in the past 12 months.

3c CIBC World Markets Inc. has received compensation for non-investment banking, securities-related services

from this company in the past 12 months.

4a This company is a client for which a CIBC World Markets company has performed non-investment banking,

non-securities-related services in the past 12 months.

4b CIBC World Markets Corp. has received compensation for non-investment banking, non-securities-related

services from this company in the past 12 months.

4c CIBC World Markets Inc. has received compensation for non-investment banking, non-securities-related

services from this company in the past 12 months.

5a The CIBC World Markets Corp. analyst(s) who covers this company also has a long position in its common

equity securities.

5b A member of the household of a CIBC World Markets Corp. research analyst who covers this company has a

long position in the common equity securities of this company.

6a The CIBC World Markets Inc. fundamental analyst(s) who covers this company also has a long position in its

common equity securities.

6b A member of the household of a CIBC World Markets Inc. fundamental research analyst who covers this

company has a long position in the common equity securities of this company.

7 CIBC World Markets Corp., CIBC World Markets Inc., and their affiliates, in the aggregate, beneficially own 1%

or more of a class of equity securities issued by this company.

8 An executive of CIBC World Markets Inc. or any analyst involved in the preparation of this research report has

provided services to this company for remuneration in the past 12 months.

9 A senior executive member or director of Canadian Imperial Bank of Commerce ("CIBC"), the parent company

to CIBC World Markets Inc. and CIBC World Markets Corp., or a member of his/her household is an officer,

director or advisory board member of this company or one of its subsidiaries.

10 Canadian Imperial Bank of Commerce ("CIBC"), the parent company to CIBC World Markets Inc. and CIBC

World Markets Corp., has a significant credit relationship with this company.

11 The equity securities of this company are restricted voting shares.

12 The equity securities of this company are subordinate voting shares.

13 The equity securities of this company are non-voting shares.

14 The equity securities of this company are limited voting shares.


27

CIBC World Markets Inc. Price Chart

For price and performance information charts required under NYSE and NASD rules, please visit CIBC on the web at

http://apps.cibcwm.com/sec2711 or write to CIBC World Markets Inc., Brookfield Place, 161 Bay Street, 4th Floor, Toronto, Ontario M5J 2S8, Attn: Research Disclosure Chart Request.

CIBC World Markets Inc. Stock Rating System

Abbreviation Rating Description

Stock Ratings

SO Sector Outperformer Stock is expected to outperform the sector during the next 12-18 months.

SP Sector Performer Stock is expected to perform in line with the sector during the next 12-18 months.

SU Sector Underperformer Stock is expected to underperform the sector during the next 12-18 months.

NR Not Rated CIBC World Markets does not maintain an investment recommendation on the stock.

R Restricted CIBC World Markets is restricted*** from rating the stock.

Sector Weightings**

O Overweight Sector is expected to outperform the broader market averages.

M Market Weight Sector is expected to equal the performance of the broader market averages.

U Underweight Sector is expected to underperform the broader market averages.

NA None Sector rating is not applicable.

**Broader market averages refer to the S&P 500 in the U.S. and the S&P/TSX Composite in Canada.

"Speculative" indicates that an investment in this security involves a high amount of risk due to volatility and/or liquidity issues.

***Restricted due to a potential conflict of interest.

Ratings Distribution*: CIBC World Markets Inc. Coverage Universe

(as of 12 Jun 2012) Count Percent Inv. Banking Relationships Count Percent

Sector Outperformer (Buy) 154 41.8% Sector Outperformer (Buy) 151 98.1%

Sector Performer (Hold/Neutral) 170 46.2% Sector Performer (Hold/Neutral) 167 98.2%

Sector Underperformer (Sell) 29 7.9% Sector Underperformer (Sell) 27 93.1%

Restricted 14 3.8% Restricted 13 92.9%

Ratings Distribution: Precious Metals Coverage Universe

(as of 12 Jun 2012) Count Percent Inv. Banking Relationships Count Percent

Sector Outperformer (Buy) 17 32.7% Sector Outperformer (Buy) 17 100.0%

Sector Performer (Hold/Neutral) 29 55.8% Sector Performer (Hold/Neutral) 29 100.0%

Sector Underperformer (Sell) 5 9.6% Sector Underperformer (Sell) 5 100.0%

Restricted 1 1.9% Restricted 1 100.0%

Precious Metals Sector includes the following tickers: ABX, AEM, AGI, ANV, ARZ, AUQ, AUY, BAA, BSX, CAN, CDE, CG, CGA, CRJ,

DGC, EDR, EGO, FNV, FR, FVI, GBU, GCU, GG, GSS, HL, IAG, KGC, KGI, KGN, LSG, NEM, NGD, NSU, ORE, OSK, PAAS, PG, PLG, PRU,

PVG, QMI, RGLD, RIC, RR, SGR, SLW, SMF, SSRI, SVM, TGZ, THO, TRR.

*Although the investment recommendations within the three-tiered, relative stock rating system utilized by CIBC World Markets Inc.

do not correlate to buy, hold and sell recommendations, for the purposes of complying with NYSE and NASD rules, CIBC World

Markets Inc. has assigned buy ratings to securities rated Sector Outperformer, hold ratings to securities rated Sector Performer, and

sell ratings to securities rated Sector Underperformer without taking into consideration the analyst's sector weighting.

Important disclosures required by IIROC Rule 3400, including potential conflicts of interest information, our system for rating investment opportunities and our dissemination policy can be obtained by visiting CIBC World Markets on the web

at http://researchcentral.cibcwm.com under 'Quick Links' or by writing to CIBC World Markets Inc., Brookfield Place, 161 Bay Street, 4th Floor, Toronto, Ontario M5J 2S8, Attention: Research Disclosures Request.

http://apps.cibcwm.com/sec2711

http://researchcentral.cibcwm.com/


28

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This report is provided, for informational purposes only, to institutional investor and retail clients of CIBC World

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