Growing Projects in Canada Enhanced Exploration Targeting at Hope Brook, Newfoundland: November 21, 2013 Application of Multi-Disciplinary Industry Academic Investigations Forward Looking Statements and Technical Disclosures The information presented contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; and limitations on insurance coverage. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws. Dr. Bill Pearson, P.Geo. who is a Qualified Person as defined by NI 43-101 and reviewed and approved the scientific and technical information contained in this presentation. Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources. The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. 2 Using Science to Advance Exploration COASTAL GOLD EXPLORATION TEAM UNIVERSITY RESEARCH PARTNERS Bill Pearson, Ph.D., P.Geo., President & CEO Western University Dave Copeland, M.Sc., P. Geo., Chief Geologist Blake Hylands, Staff Geologist Jeff Burke, Staff Geologist Dr. Neil Banerjee, Assistant Professor Erika Cayer, Geology Student Memorial University Dr. Steve Piercey, Associate Professor Noah Rowsell, Project Manager Chris Hale, Ph.D., P.Geo., Chief Geophysicist John Gilliatt, P.Geo., Consulting Geophysicist 3 GROUND GEOPHYSICS QUANTEC TITAN 24 COD IP TEAM Overview of Presentation Geological Setting of Hope Brook Use of Geophysics to outline Mineralized Zones Application of 3-D Inversion Models Nature & Distribution of Mineralization Isotopic Composition of Mineralization; what it tells us about fluid source and origin Lithogeochemistry and Alteration; tie-in to Geophysics and how to vector to higher grade areas Working Exploration Model for Hope Brook 4 Hope Brook Gold: The Flagship Project 100% ownership in 1,005 claims covering 25,125 ha Historical production (1987 – 1997) of 752,163 ounces gold plus copper concentrate from 1993-1997 Current Mineral Resource – Indicated: 12.3 million tonnes @ 1.48 g Au/t for 590,000 oz – Inferred: 8.3 million tonnes @ 2.07 g Au/t for 548,000 oz Deposit hosted in SW part of Late Proterozoic Avalon Zone 5 Geology of Avalon Zone Late Neo-Proterozoic (760-540Ma) assemblage of active plate margin sequences (O’Brien et al. 1998) Sequences accumulated prior to development and closure of the Lower Proterozoic Iapetas Ocean Most significant magmatic activity from 640-560Ma Volcanic and plutonic rocks in this period evolved in back-arc or continental arc settings Broad association with terrestrial or marine siliciclastic sequences Related in time to develop of Gold mineralized systems in Avalon Zone of which Hope Brook is a major example Intense post mineral deformation 6 Published Models for Hope Brook 1985 to 1990 – BP-Selco (Colin McKenzie, Alan Yule) – Identification of Pre-shearing, synvolcanic/intrusive Acid Sulphate Hydrothermal Alteration Developed atop the Roti Intrusive Suite. 1992 – Peter Stewart Ph.D. Thesis – Major Descriptive Study of the Hope Brook Deposit and Characterization of Alteration - Postulated Importance of Chetwynd Granite. 1996 to 1998 – Dr. Benoit Dube (GSC) and Dr. Sean O’Brien (NLGS) – Description of Deposit as a High-Sulphidation Epithermal System within the Neoproterozoic Avalon Zone. 2010 – present – Coastal Gold - Further Identification as High-Sulphidation Mesothermal to Epithermal Deposit Developed within a Neoproterozoic Arc System – de-mystification of the Chetwynd Granite. Commonalities with younger world class high sulphidation systems globally. 7 Hope Brook Stratigraphy and Age After Dube et al., 1998 8 Major Gold Mineralized Structure more than 8 km in Length This is an extensive mineralized system that is very underexplored 9 Airborne Magnetics Strongly silicified gold mineralized zone in late Proterozoic rocks are marked by a prominent magnetic low (in blue) 10 Property Geology 11 Large Scale Mineralized System High sulphidation gold deposit formed from a long lived magmatichydrothermal system Mineralized zone open along strike and at depth Alteration pattern similar to large scale epithermal systems Considerable upside for outlining additional higher grade mineralization within extensive lower grade mineralization 12 Helicopter for scale Open Pit (behind hill) Altered & Mineralized Shear Zone 500+m wide Exploration Drill Targets at Hope Brook 13 General Lithostratigraphy Pyrite Zone – Felsic Fragmental, highly siliceous with 2-15% stringer Pyrite. 30-80 metres thick Silicified Mineralized Zone Massive v. fine grained silica, vuggy, microbrecciated with 24% Py and up to 4% Cp, Bn. Cut by unaltered mafic dykes. 15-80 metres thick Advanced Argillic Zone Variably textured, white to grey, pyrophyllite, alunite, kaolinite; 2-5% diss. Py. Blue Qtz crystals, occasional preserved felsic fragments and quartz porphyry. Up to 300 m thick 14 Gold Mineralization at Hope Brook Gold mineralization hosted in silicified zones within Late Proterozoic Whittle Hill Sandstone – Third Pond Tuff succession Two major gold-bearing stages: – Earlier pervasive buff coloured silicification with lower grade mineralization (~0.5 – 1.0 g Au/t) 15-80m thick – Later vuggy grey silicification with local siliceous breccia (>2.0 – 5.0+ g Au/t and significant Cu) 5-25m thick 15 Mine Zone Geological Section 11400E Extensive mineralized system that is very underexplored 16 New Structural Model with Major Folds 240 - Connector Zone Target extends for 1,200m along strike Drilling and geophysics have identified a major fold structure that closes below surface in the Connector Zone. This explains why the silicified horizon doesn’t come to surface southwest of the existing mine where historical drilling failed to intersect the mineralized silicified zone. Section 10500 E 17 Hope Brook Gold Resource Model (Being Updated) 590,000 Indicated and 548,000 Inferred ounces of gold are located within this model* Newly Identified Major Near Surface Target Zone Mine Zone open open open open *For full Mineral Resource Estimate, please refer to the table and technical disclosures found on slide 11 240 Zone Developing Improved Vectors for Exploration Key Questions: How to efficiently trace mineralized zones and outline areas with strongest and most extensive silicification. Are two stages of mineralization the result of different events or evolution of the same hydrothermic system? How to better target areas of higher grade mineralization within the mineralized structure. What is the potential size and scale of the Hope Brook gold mineralized system? How to best integrate new information into an enhanced model to direct further exploration efficiently. 19 Section How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification Titan 24 Survey at Hope Brook Former HB Mine Major Target Zone 20 Extensive Resistivity Low Marks Footwall Conductor (Blue) How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification (Cont’d) Resistivity 21 How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification (Cont’d) 3D Inversion Model: UBC DCIP3D Conductivity 22 How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification (Cont’d) Footwall Pyrite Conductor Geosoft 3D Voxel Model DC Conductivity Resistive Silicified Mineralized Zone 23 Fall 2012 Drill Program Confirmed Major Strike Extent Completed 5,951 meters of reconnaissance diamond drilling in 21 holes Drill program identified a major new near surface target zone in the “Connector Zone” just 900m southwest of the former mine Mineralized silicified zones were intersected over a strike length of 3.4km demonstrating continuity of the system and effectiveness of targeting using geophysics Thickness of the Connector Zone alteration is interpreted to be similar to that of the former mine and 240 Zone Drill Results included: – Hole HB12-100: 1.51 Au g/t over 14m, 2.03 Au g/t over 8m, and 1.07 g Au/t over 18.1m – Hole HB12-101: 1.04 g Au/t over 8.5m, 1.44 g Au/t over 2.9m, and 1.35 g Au/t over 5.6m 24 Collaborative Research Project Are two stages of mineralization the result of different events or evolution of the same hydrothermal system? How to better target areas of higher grade mineralization within the mineralized structure Collaborative research project in progress with University of Western Ontario and Memorial University Focus is to better understand nature, distribution and origin of higher grade mineralization to aid further exploration Samples selected from a fence of holes covering range of lithologies and mineralization Initial results are very encouraging 25 Hope Brook: Mineralogy of High Grade Au 1 Scanning Electron Microscope • 1 Indicates elements present include Sn, Hg, As, Pb, Fe, Si, Cu, Au 2 Au cp mw Mineral Liberation Analysis: 2 50 m Epithermal Mineral Assemblage • 3 Mawsonite, Cassiterite (Both Sn minerals) 3 Au Gold Grain Mapping • • 26 mw Fine grained 2-3 microns within sulphide grains Typically on margins of chalcopyrite (cp), mawsonite (mw) and bornite (bn) 50000 m 0 m bn Au cp 0 m 200 m Hope Brook: Mineralizing Fluids Hole HB11-023 included the highest grade returned at Hope Brook 204g/t Au and 7.98% Cu over 1.5m Core Length Analysis of samples from major silicified zones across deposit; grades from 0.5 g Au/t to 204 g Au/t ALL the samples with elevated gold are restricted to a very narrow d18O range Gold mineralization at Hope Brook was likely deposited from a single fluid source 27 Au Grade (ppm) for HB 11-023 Outlier 0 50 100 150 200 250 13 12 Hole HB 10-003 11 Hole HB 11-013 10 δ18O (‰ VSMOW) Wallrock has wide range of O isotopic values typical of volcanic-sedimentaryintrusive rocks Au Grade (ppm) Vs. δ18O (‰ VSMOW) Hole HB 11-023 Hole HB 11-029 9 Hole HB 11-031 Hole HB 11-033 8 Hole HB 11-034 7 Hole HB 11-060 Hole HB 11-061 6 Hole HB 11-023 Au Outlier 5 4 0 1 2 3 4 5 Au Grade (ppm) 6 7 8 9 10 Primary Lithogeochemistry Tectonic Discrimination Diagrams Barrett and MacLean 1999 Hope Brook Deposit hosted within calc-alkaline to transitional arc volcanic and intrusive suite; Change in tectonism/magmatic chemistry key to mineralization? 400 350 Calc-Alkaline 300 Transitional 250 Calc-alkaline to Transitional Zr 200 Tholeiitic 150 100 All rocks (Siliceous, Pyrite and Argillic Alteration Zones, Roti Intrusive Suite) lie along the same fractional crystallization trend and have a common magmatic source => unified stratigraphy Immobile trace element geochemistry similar to worldclass high sulphidation and porphyry Au-Cu deposits (e.g. Yanacocha, Peru and Lepanto, Phillippines) 50 0 0 10 20 30 40 50 Y 60 70 80 90 100 Pearce et al. 1984 1000 Volcanic Arc (I-type setting) within plate (A-type) 100 syn-collisional (S-type) volcanic arc (I-type) Nb Yanacocha data from Longo et al. (2010) Lepanto data from Hedenquist et al. (1997) 10 ocean ridge (OR-type) 1 1 10 100 1000 Y Legend Yanacocha Lepanto Hope Brook Pyrite Zone Argillic Siliceous Roti Primary Lithogeochemistry Primitive Mantle Normalized Trace Element Plots Expanded trace element geochemistry very similar to other world-class highsulphidation and porphyry Au-Cu deposits (e.g. Yanacocha, Peru; Lepanto, Phillippines) Flat HREE (right side of plot) indicative of melting at shallow crustal levels = HIGH HEAT FLOW The right tectonic environment, same chemistry and formation conditions for causative intrusions = LARGE SYSTEM!! Rock/Extended PM 2 1000 Extended-PM-2-Sun and McD 89 100 Roti Intrusive Suite, Hope Brook 10 1 .1 Nb Ce Nd Zr Eu Gd Dy Er Lu V T h La Pr Sm Hf T i T b Y Yb Al Sc Rock/Extended PM 2 1000 100 Intrusive Rocks Yanacocha, Peru Extended-PM-2-Sun and McD 89 Data from Longo et al. (2010) 10 1 .1 Nb Ce Nd Zr Eu Gd Dy Er Lu V Th La Pr Sm Hf Ti Tb Y Yb Al Sc Primary Lithogeochemistry Primitive Mantle Normalized Trace Element Plots Pyrite Zone and Siliceous Mineralized Zone show alteration but same REE plot as Roti Intrusive. Shows that the Silicified and Pyrite Zones Developed from a similar parent magma to the Roti Intrusive Suite. Provides a linkage between conductive Pyrite Zone and Mineralized Silicified Zone. i.e. conductors act as a good proxy for mineralized zones. Rock/Extended PM 2 1000 Extended-PM-2-Sun and McD 89 100 Pyrite Zone, Hope Brook 10 1 .1 Nb Ce Nd Zr Eu Gd Dy Er Lu V T h La Pr Sm Hf T i T b Y Yb Al Sc Rock/Extended PM 2 1000 Extended-PM-2-Sun and McD 89 100 Silicified Zone, Hope Brook 10 1 .1 Nb Ce Nd Zr Eu Gd Dy Er Lu V T h La Pr Sm Hf T i T b Y Yb Al Sc Lithogeochemistry and Alteration Intense alteration zone outlined between the Main Zone and 240 Zone. Near-surface Target Zone Alteration typified by Nadepletion and elevated major element alteration indices (e.g. CCPI – Chlorite-Carbonate-Pyrite Index). Gold Resource <0.5% Na surface marking zone of Nadepletion 0.5 g Au/t cut-off Alteration zone tracks SW towards the 240 Zone and its up dip extension. Near-surface Target Zone Large untested, nearsurface Exploration Target. Gold Resource Models in Target-ARCGIS 0.5 g Au/t cut-off CCPI>80 marking zone of Au proximal Alteration Key Points Lithogeochemistry and alteration support and enhance the geophysical interpretation Lithogeochemistry confirms linkage between mineralized silicified zone and conductive pyrite zone Validates use as geophysical marker REE patterns, clay mineralogy and isotopic data indicate a dynamic mesothermal to epithermal environment Comparable REE and alteration patterns to world class high sulphidation systems in similar tectonic environments Potential size and scale of the Hope Brook mineralized system is much greater than previously recognized 32 Hope Brook Deposit Model After Dube et al., 1998 High-Sulphidation Mesothermal to Epithermal 33 Hope Brook Origin – Working Hypothesis Fluids responsible for all gold mineralization had a similar geochemical composition and are likely the result of a single large system Overall low d18O values suggests the possibility of hotter fluids than might be expected at the top of the system i.e. mesothermal – epithermal level Mineralogy is epithermal in character but textures and isotopes indicate deeper level in system 34 Implications for Hope Brook Exploration Mineralization likely formed by major magmatichydrothermal system Mineralizing system likely initially mesothermal then became emergent to more epithermal but not shallow Age of mineralization possibly correlative with Roti Intrusion – 563+/-4 Ma (Dunning et al., 1988) Pyrite zone confirmed as effective geophysical marker Lithogeochemistry appears to provide best vector to areas of potential higher grade mineralization 35 Conclusions Geological, geophysical, geochemical and isotopic data have better characterized overall mineralizing system Collaborative research project enhanced knowledge of mineralogy, alteration and likely fluid source Hope Brook is a far bigger system than previously believed Exploration has just scratched the surface – vectors have been developed for more efficient targeting 3-D technology for geophysics, geology and alteration are valuable tools to aid interpretation and develop predictive models for exploration Use of Science and 3D Technology has Greatly Enhanced Exploration Efficiency 36