New Leader in Precious Metals
Corporate Presentation
January 2016
New Leader in Precious Metals
Safe Harbour Disclaimer
Cautionary Language on Forward‐Looking Information
This presentation contains “forward‐looking information” within the meaning of applicable Canadian securities legislation, and “forward‐looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively referred to as “forward‐looking statements”). All statements, other than statements of historical fact, are forward‐looking statements. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intend", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions or statements identify forward‐looking statements. Forward‐looking statements in this presentation include, but are not limited to, statements and/or information related to: (i) the Company’s 2016 goals, (ii) 2016 outlook related to gold and silver mineral reserves and mineral resources, production, total cash cost per ounce, all‐in sustaining cost per ounce, capital expenditures, corporate general and administration expenses and exploration expenses, (iii) estimated production over the life of the Escobal and La Arena mines, (iv) estimates of royalties and taxes paid in Guatemala and Peru (v) the timing of the anticipated commencement of commercial production at Shahuindo; and (vi) the advancement of exploration projects, including the Sulfide Project at La Arena and the El Alizar Oxide Project adjacent to La Arena (vi) estimated mill and leach pad recoveries, smelter payables and doré and silver concentrate details over the first ten years of mine life. Forward‐looking statements are based on management’s reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things: the Company’s ability to implement operational improvements at the Escobal and La Arena mines; the Company’s ability to carry on exploration and development activities, including construction; the timely receipt of required approvals; the price of silver, gold and other metals; prices for key mining supplies, including labor costs and consumables, remaining consistent with the Company’s current expectations; production meeting expectations and being consistent with estimates; plant, equipment and processes operating as anticipated; there being no material variations in the current tax and regulatory environment; the Company’s ability to operate in a safe, efficient and effective manner; the exchange rates among the Canadian dollar, Guatemalan quetzal, Peruvian nuevo sol and the United States dollar remaining consistent with current levels; and the Company’s ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Tahoe’s actual results, programs and financial position could differ materially from those anticipated in such forward‐looking statements as a result of numerous factors, risks and uncertainties, many of which are beyond the Company’s control. These include, but are not necessarily limited to, the Company’s dependence on the Escobal and La Arena mines; the fluctuation of the price of silver, gold and other metals; changes in national and local government legislation, taxation and controls or regulations; social unrest, and political or economic instability in Guatemala and/or Peru; the availability of additional funding as and when required; the speculative nature of mineral exploration and development; the timing and ability to maintain and, where necessary, obtain necessary permits and licenses; the uncertainty in the estimation of mineral resources and mineral reserves; the uncertainty in geologic, hydrological, metallurgical and geotechnical studies and opinions; infrastructure risks, including access to water and power; the impact of inflation; changes in the administration of governmental regulation, policies and practices; environmental risks and hazards; insurance and uninsured risks; land title risks; risks associated with illegal mining activities by unauthorized individuals on the Company’s mining or exploration properties; risks associated with competition; risks associated with currency fluctuations; contractor, labor and employment risks; dependence on key management personnel and executives; the timing and possible outcome of pending or threatened litigation; the risk of unanticipated litigation; risks associated with the repatriation of earnings; risks associated with negative operating cash flow; risks associated with the Company’s hedging policies; risks associated with dilution; and risks associated with effecting service of process and enforcing judgments. For a further discussion of risks relevant to the Company, see the Company’s Annual Information Form available on SEDAR under the heading “Description of Our Business – Risk Factors”. There is no assurance that forward‐looking statements will prove to be accurate. Actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward‐
looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward‐looking statements will transpire or occur, or if any of them do so, what benefits may be derived there from. Accordingly, readers should not place undue reliance on this information. Tahoe does not undertake to update publicly or revise any forward‐looking statements, except as, and to the extent required by, applicable securities laws. For more information about the risks and challenges of Tahoe’s business, investors should review Tahoe’s current Annual Information Form available at www.sedar.com. All prices in U.S. Dollars unless otherwise stated.
Revised February 2016
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2015 Tahoe Highlights
 Record production of 20.4 moz silver at Escobal; completed 4500 tpd






expansion on‐time and on‐budget
Record 230,436 ounces gold at La Arena (Tahoe 174,025 oz)
Completed Rio Alto merger in Q2
Shahuindo‐Increased reserves from 1 moz to 1.9 moz—Poured first gold and commissioning commenced in Q4
Repaid $50 million in debt
Returned $49.7 million in shareholder dividends
Established $150 million revolving credit facility
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Tahoe – New Leader in Precious Metals
 Large-Scale, low-cost production
 450,000 oz gold & 20M oz silver per year (700,000 – 750,000 oz gold equivalent)
 Gold equivalent cash costs <$700/oz, AISC <$900/oz
 Large portfolio of growth assets
• Growing gold production in Peru and Canada
• Attractive exploration targets in all regions
 Industry-Leading free cash flow
 Peer leading free cash flow yield of 5.4% over 2016-2018
 Strong balance sheet
 >$150m of cash, zero net debt
 Returning capital to shareholders
 Strong free cash flow supporting monthly dividend of $0.02 per share per month ($0.24/share/yr.)
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Transaction Highlights

A premier Americas focused precious metals producer



Diversified operating platform with three low‐cost precious metal operations across Guatemala, Peru and Canada
Anchored by the Escobal mine, one of the largest and highest grade silver mines globally
Significant low‐cost production and low‐risk growth
2016E Combined Guidance1,2
Gold
Silver
Gold Equivalent3
Production
370 - 430kozs
18 - 21mozs
600-700kozs
Cash Costs
$675 - $725/oz
$7.50 - $8.50/oz
$640 - $700/oz
$950 - $1,000/oz
$10.00 - $11.00/oz
$885 - $950/oz
All-in Sustaining Costs




Exciting exploration potential




All operations generate free cash flow in the current commodity price environment
Significant built‐in growth driven by Shahuindo expansion to 36,000 tpd rate and the advancement of a number of growth initiatives in Timmins, including the ramp up of the 144 Gap deposit
Growth in Peru and Canada targeted to increase gold production to >500,000 ounces in 2018
Over 3.4 mozs of M&I gold and 6.0 mozs of inferred gold across eight exploration projects in Peru and Ontario
Strong near‐mine potential to add additional gold resources Large unexplored land package across all regions
Superior financial performance and strong balance sheet 

Zero net debt, modest capital requirements and strong free cash flow generation provide industry‐leading financial strength and flexibility
Tahoe plans to continue monthly dividend policy of $0.02 per share
1. See Tahoe press release dated January 14, 2016; 2. See Lake Shore press release dated January 8, 2016; 3. Using Gold price of $1,175/oz and Silver price of $15.00/oz
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Transaction Summary
Proposed
Transaction
Consideration
Conditions
Anticipated
Timing
Other Terms
•
•
•
Business combination with Lake Shore via Plan of Arrangement
•
Implied equity value of approximately C$945 million1
•
Pro forma ownership: 74% Tahoe / 26% Lake Shore1 •
0.1467 of a Tahoe common share per Lake Shore common share, representing total consideration of CAD$1.71 per common share1
•
14.8% premium over the closing price of Lake Shore on February 5th and a 28.6% premium to the closing price of Lake Shore on February 4th
•
25.7% premium based on each company’s 20‐day volume weighted average price (“VWAP”)2 to February 5, and 30.4% to February 4
•
Lake Shore shareholder vote (66 2/3% of shareholder votes cast)
•
Tahoe shareholder vote (majority of shareholder votes cast)
•
Customary regulatory and court approvals
•
Mailing of meeting materials by early March
•
Shareholder meetings by early April
•
Closing expected in April
•
Customary non‐solicitation covenants, subject to normal fiduciary outs
•
Right to match in favor of Tahoe
•
Break fee of CAD$37.8 million payable to Tahoe; break fee of CAD$20.0 million payable to Lake Shore
•
Officers and directors of Lake Shore and Tahoe intend to enter into voting support agreements, pursuant to which they will vote their common shares held in favor of the Transaction
•
Alan Moon to join Tahoe Board of Directors and Tony Makuch to join Tahoe as President of Canadian Operations 1. At market closing on February 5, 2016. Equity value and pro forma ownership on a fully diluted in the money basis assuming the conversion of in the money convertible debentures
2. VWAP based on TSX trading only
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Diversified Operating Platform in the Americas
2016E Prod.
Escobal
18-21Moz Ag
Cash Costs
$7.50-$8.50/oz
Reserves Ag
310Moz @ 332g/t
M&I Res. Ag
389Moz @ 332g/t
Timmins West
Bell Creek
2016E Prod.
170-180koz Au
Cash Costs
<$650/oz
Reserves Au
0.5Moz @ 4.30g/t
0.3Moz @ 4.57g/t
M&I Res. Au
0.7Moz @ 4.76g/t
0.7Moz @ 4.36g/t
Other Lake Shore Assets
La Arena Oxides
Shahuindo Oxides
2016E Prod.
200-250koz Au
Cash Costs
US$700-$750/oz
Resources
M&I (Moz)
Inferred (Moz)
144 Gap Zone
0.3 @ 5.41g/t
0.3 @ 5.19g/t
Whitney
0.7 @ 6.85g/t
0.2 @ 5.34g/t
Reserves Au
0.9Moz @ 0.36g/t
1.9Mozs @ 0.53g/t
Gold River
0.1 @ 5.29g/t
1.0 @ 6.06g/t
M&I Res. Au
1.2Moz @ 0.32g/t
2.3Mozs @ 0.50g/t
Juby
1.1 @ 1.28g/t
2.9 @ 0.94g/t
La Arena Sulfides
Vogel
0.1 @ 1.75g/t
0.2 @ 3.60g/t
Shahuindo Sulfides
Marlhill
0.1 @ 4.52g/t
-
Fenn-Gib
1.3 @ 0.99g/t
0.8 @ 0.95g/t
Total
3.7 @ 2.77g/t
5.4 @ 2.41g/t
Reserves Au
0.6Moz @ 0.31g/t
Inf. Res. Au 2.0Moz @ 0.71g/t
Reserves Cu
0.6Blbs @ 0.43%
Inf. Res. Ag 59Moz @ 21g/t
M&I Res. Au
2.1Moz @ 0.24g/t
M&I Res. Cu
2.0Blbs @ 0.33%
Note: M&I resources reported inclusive of mineral reserves; See endnotes 1,2,3
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LSG, Tahoe Business Combination Agreement
Unlocking Immediate Value Accelerating Future Value Creation Benefits for LSG shareholders
 Premium bid provides immediate value to shareholders
 Stronger balance sheet unlocks value from growth
opportunities sooner, without dilution or financial risk
 Participation in industry-leading dividend
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LSG: Quality Operations Driving Financial Strength Solid Production & Sales
Strong Growth in Cash
Cash and Bullion
Gold Sales
Ounces
200,000
183,300
160,000
120,000
183,300
$M
100
100
135,600
62
61
83,800
50
80,000
34
40,000
0
0
2012
2013
2014
2012
2015
Low Unit Costs 2000
2014
2015
Reduced Debt Levels Cash Operating Costs(1)
US$/oz
2013
$M
80
1,813
1500
Senior Secured Debt
68
60
52
1,139
1000
872
870
592
580
40
966
766
500
20
7
0
0
0
2012
2013
2014
2015
(1) Non‐GAAP Measure (see Slide 28); (2) All‐in sustaining cost 13‐Feb
13‐Dec
2014
2015
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LSG: Three‐Year Outlook

Production 170,000 to 180,000 oz per year

Cash operating costs better than US$650/oz

AISC below US$950/oz

Strong free cash flow (at current prices)

Improved balance sheet

Advance growth opportunities

Significant exploration upside
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LSG: Portfolio of Well‐Built, Low‐Cost Assets
Well Built Infrastructure Supports Low Cost Growth
TIMMINS WEST MINE

Large-scale underground mining complex – two
deposits (Timmins Deposit & Thunder Creek Deposit)

2,770 tpd at 4.4 gpt in 2015

509.7k oz reserves (3.7M tonnes at 4.3 gpt) Dec. 2014 100,000

BELL CREEK MINE
BELL CREEK COMPLEX – MILL
M&I resources 695.0 oz (4.5M tonnes at 4.8
Inferred resources 206.0k oz (1.6M tonnes at 5.0 gpt)
at Dec. 2014
2012

Underground ramp mining operations
Ounces
50,000

810 tpd at 4.4 gpt in 2015
40,000

263.6k oz reserves (1.8M tonnes at 4.6 gpt) Dec. 2014 30,000
gpt)(1),
M&I resources 687.0k oz(4.9M tonnes at 4.4
Inferred resources 685.0k oz (4.4M tonnes at 4.8 gpt)
Dec. 2014
64,000
0
Exploration drift from Thunder Creek to 144 Gap

Conventional gold mill circuit, involving crushing and
grinding, gravity and leaching, followed by CIL and
CIP processes for gold recovery
• Recoveries of 96.6% in 2015 (consistently above
95%)
Processed 1,307,200 tonnes (3,580 tpd) at 4.4 gpt in
2015, 4,270 tpd in Dec. 2015
2013
2014
2015
Bell Creek Production
43,300
22,500
20,000
39,700
27,500
10,000
0
2012
Significant resource potential at depth

139,000
142,200
50,000


(1) M&I resources inclusive of reserves 150,000
110,000
gpt(1),

Timmins West Production
Ounces
2013
2014
2015
Tonnes Processed
1,500,000
1,245,900 1,307,200
952,700
1,000,000
719,300
500,000
0
2012
2013
2014
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11
LSG: Growth Opportunities Near Existing Infrastructure
Bell Creek Mill capable of >4000 tpd and expandable to 5500 tpd
144 Gap
Zone
First resource released; Development, test stoping to follow
144 SW/N/S
Continuing drilling along 144 Trend – focus on 144 South in 2016
Gold River
> 1.0M oz inferred resources; Drilling of GR Extension in 2016
BC Deep
Completing study for deepening of shaft to access deep resources
Whitney
Resource confirmation/expansion using open-pit model in 2016
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Timmins West Complex
Potential for Multiple Gold Deposits 144 Gap Deposit
Indicated: 1,734,000 tonnes @ 5.41 gpt (301.7k oz)
Inferred: 1,914,000 tonnes @ 5.19 gpt (319.2k oz)
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144 Gap Deposit Encouraging New Drill Results
1. The 144 Gap resource was estimated using the Inverse Distance to the power 2 (ID2) interpolation method with capping of gold assays evaluated by zone and ranging between 70 and 120 gpt, and an
assumed long‐term gold price of US$1,100 per ounce with an average exchange rate of $0.90 $US/$CAD. The cut‐off grade for the base case is 2.6 gpt.
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144 Gap Deposit
Encouraging New Drill Results

Confirms existing results
Intersections in defined resource (but not included in resource estimate) 49.92gpt/22.7m
31.27gpt/18.5m
10.56gpt/7.8m
5.41gpt/36.0m

Highlights potential to expand resource Intersections outside defined resource
6.43gpt/12.5m
5.97gpt/18.8m
8.09gpt/9.9m
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Gold River
New Exploration Program in 2016
Gold River Trend – East  Two highly prospective deposits
within 4 kms of Timmins West
mine shaft – East and West
deposits
 Resource contains high-grade
core consisting of 310,900 oz at
9.81 gpt
 Drilling to date focused on
shallow targets in East Deposit
 2016 drilling largely focused on
Gold River Extension
1,700 m
800 m
986,000 tonnes @
9.81 gpt for 310,900
ozs (between 400 and
800 metres)
3D View –
Conceptual
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Bell Creek Mine Growth Potential Reserves
P&P: 1,792,000 tonnes @ 4.6 gpt 263,600 oz
Resources
M&I: 4,904,000 @ 4.29 gpt 687,000 oz
Inferred: 4,399,000 @ 4.84 gpt 685,000 oz
775 mL
925 mL
1050 mL
Bottom of current reserve at 1165 L
1250 mL
1625 mL
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Bell Creek Mine: Growth Potential Reserves
P&P: 1,792,000 tonnes @ 4.6 gpt 263,600
oz
Conceptual shaft extension and development plan 775 mL
Resources
M&I: 4,904,000 @ 4.29 gpt 687,000 oz
Inferred: 4,399,000 @ 4.84 gpt 685,000 oz
925 mL
1050 mL
Bottom of current reserve at 1165 L
1250 mL
1625 mL
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Temex Transaction
Whitney Project: In‐Market Acquisition Whitney Project JV – Resources(1)(2)
Tonnes
Grade*
Ounces Measured 966,000
7.02
218,100
Indicated
2,253,000
6.77
490,500
Total M&I
3,219,000
6.85
708,600
995,000
5.34
170,700
Inferred
* Grams per tonne, at 3.0 gpt
cut-off
(1) Lake Shore Gold has not verified the
mineral resources disclosed in the technical
report for the Whitney Project. To the best
of Lake Shore Gold’s knowledge,
information, and belief, there is no new
material scientific or technical information
that would make the disclosure of the
mineral
resources
inaccurate
or
misleading.
(2) 60% Interest
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Whitney Project: Open-Pit Potential
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Timmins West Mine - Canada
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Bell Creek Complex - Canada
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Escobal Mine - Guatemala
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La Arena Mine - Peru
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Shahuindo Mine - Peru
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Guatemala Exploration
Sept 2015
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Peru Exploration
SHAHUINDO
51,130 has
LA ARENA
El Alizar
Agua
Blanca
La
Florida
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Upside Potential Across All Regions
EXPLORATION UPSIDE
IN DEVELOPMENT
PRODUCTION
NEAR-TERM
EXPANSION
144 Gap
Escobal
• 20mozs Ag / yr
La Arena Oxide
• 170kozs Au / yr
Shahuindo Phase 1
• Commencing production
in H2 2016
• Implement long-range
development plans
Bell Creek Mill
• 75kozs Au / yr
• Expansion to 5500 tpd
for ~$30M by 2017
Timmins/Bell Creek
Shahuindo Phase 2
• 175kozs Au / yr
La Arena Sulfide
• Scoping in 2016 and
Feasibility in 2017
Bell Creek Shaft
• Deepen shaft to 1,225m
Whitney
• High-grade U/G resource
• 5km from Bell Creek mill
El Alizar
• Look for potential to
extend La Arena oxide
144 Trend
• Drilling of SW, North and
South Zones
Gold River
• >1mozs high-grade U/G
resource near Timmins
West mine
Fenn-Gib
Regional Exploration
• 36ktpd expansion in
2018 (170 kozs / yr)
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Growing Low-Cost Production, Strong Margins
Gold Production (kozs)
Au - THO
Au - LSG
458
476
175
175
176
$621
$622
$628
254
283
2016E
2017E
429
Ag Production - THO
Silver Production (Mozs)
PF Cash Cost (US$/oz)
$7.57
$7.10
Strong
Growth
Potential
300
2018E
Cash Cost (US$/oz Ag)
$7.06
Stable
Prodution
20.4
20.3
20.3
2016E
2017E
2018E
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2016E
2017E
2018E
Tahoe
2019E
2020E
LakeShore
Source: Available analyst estimates Note: EBITDA as per Bloomberg consensus estimates
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Pro Forma Capitalization
As at February 5, 2016
Units
Tahoe
Lake Shore (at offer)
Pro Forma2
TSX Share Price
CAD$
$11.66
$1.71
$11.66
Basic Shares Outstanding1
Million
227.3
463.2
295.3
FD Shares Outstanding1
Million
228.5
552.2
309.5
FD Market Capitalization
USD$
Million
$1,925
$683
$2,607
Cash and Cash Equivalents1
USD$
Million
$92
$70
$162
Total Debt1
USD$
Million
$51
$14
$65
Note: Assumes a CAD$:US$ FX rate of 0.7223. Source: Bloomberg, company disclosure
1. Share capital and balance sheet items as of September 30, 2015 adjusted for reported subsequent events. Cash excludes proceeds from in‐the‐money options and warrants and excludes transaction related expenses. Lake Shore convertible debenture is included in the FD ITM shares outstanding and excluded from debt. Conversion price is C$1.40
2. Pro forma figures calculated based on Tahoe’s closing price on the TSX on February 5th 2016
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Delivering Long-Term Shareholder Value
High Margin, Low Cost
Operations
Responsible
Management
Organic Growth
Geographic Diversity
Operations
Focus
Strong
Balance
Sheet
Monthly
Dividend
Focused on Growing Free Cash Flow Per Share
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Endnotes & Appendices
Tahoe Resources Investor Relations investors@tahoeresources.com 775.448.5807
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