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MEMs Conference Presentation Gold Industry M&A

Paul Brink Director, Newmont Capital April, 2007

Gold Industry M&A

Gold Industry Overview Gold Market Valuation M&A Transactions Transaction Challenges Newmont M&A Approach

Slide 2

Gold Price

Net Long/(Short) Positions & Gold Price


180,000 150,000 120,000 90,000 60,000 30,000 0 (30,000) (60,000) (90,000) (120,000) 1/00 Net Long / (Short) Position Gold Price (Spot FR) $750 $700 $650 $600 $550 $500 $450 $400 $350 $300 $250 1/01 1/02 1/03 1/04 1/05 1/06 1/07
Slide 3

Market Capitalization

$10,000

$15,000

$20,000

$25,000

$30,000

$5,000

Senior Gold Producers

$0

Ba rr i Ne c wm k G on old tM in in An g G ol gl dc oG or ol p d As ha G nt ol i d Fi Ki el ds nr os Ne s wc G ol re d st M Ha i rm nin g on y Po G lyu ol d s M in in g

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Senior Gold Producers 5yr trading

Slide 5

Market Capitalization

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Intermediate Gold Producers

$0

Ag Ya ni ma co n -E a G ag ol d le M in es Li hi M er r G ol id d ia n G o IA M ld Ce G nt OL e D El rra Ra G d nd ora ol go do d ld R Go ld e Pe sou rc te r H es DR DG amb r O LD o Lt d.

Slide 6

Market Capitalization
$1,000 $1,200 $200 $400 $600 $800 $0

Junior Gold Producers

re C w ry s t M Go al i ra l d l G ex m a Co ab In r rp rie ter Mi . l R n a ni n e tio g R sou na Al io N rc l am a es rc H Mi n os G ea ig e o h Pe Ri fin d l d C um a ve e be Au k G r G rs D K rl an ri zo old ol d un i r d n L de k la R M td e nd es ine . Pr L ou s e R ci o ak e rce Et ed u G s ru sc B s M ol d a an Se ck eta R M l G J a e s m a in s BS g ou fo in g u G ar rc e Inc N old M s . ev in In su Int ing c . n ern In R a c es tio . AX ou na C Gl la en M rce l ud c IN s e air In O Ce R n c ly n e m tu P s o Go . pu ry a ur ld s M ci ce Q Ne Pa ini fi c s ue v a ci ng Ri m e d fic St ns a P M Cor A tak ac i ne p. nd e ifi ra re Re c G ls w s o G ou l d o l rc df e ie s ld s

Slide 7

Exploration Companies

Company Silver Standard Resources NovaGold Resources Aurelian Resources Inc. Fronteer Development Palmarejo Gold Corp. Gold Eagle Mines Ltd. Seabridge Gold Osisko Exploration Metallica Resources Arizona Star International Minerals Banro Corporation Guyana Goldfields Aquiline Resources Rusoro Mining Ltd Anatolia Minerals U.S. Gold Corporation Southwestern Resources Minera Andes Inc. Greystar Resources

Market Cap.
$2,447 $1,627 $1,046 $949 $740 $707 $605 $585 $504 $494 $479 $419 $413 $410 $408 $393 $327 $323 $316 $316

Company Gold Reserve Inc. Bear Creek Mining Moto Goldmines Ltd Orezone Resources Fortuna Silver Mines Chesapeake Gold New Gold Inc. Andina Minerals Petaquilla Minerals Lake Shore Gold San Anton Resource Detour Gold Corporati Rubicon Minerals Carpathian Gold San Gold Corporation Solitario Resources Linear Gold Corp. Dynasty Metals & Mini Mansfield Minerals Inc Marathon PGM Corp.

Market Cap.
$307 $291 $283 $283 $187 $183 $180 $179 $178 $177 $171 $155 $153 $137 $135 $131 $129 $126 $125 $105

Company Acadian Gold Northern Mining Alexis Minerals YGC Resources Ltd. Atna Resources Ltd. Keegan Resources Inc. Exeter Resource Corp. Pelangio Mines Kimber Resources Inc. Capital Gold Corp. StrataGold Corporation Mines Management Inc Queenston Mining Goldbelt Resources Reunion Gold Corp. Plexmar Resources Gold-Ore Resources Royal Standard Minerals Klondex Committee Bay Resources

Market Cap.
$104 $98 $88 $88 $87 $85 $81 $81 $79 $73 $73 $68 $63 $61 $60 $56 $52 $52 $45 $45

Company Canarc Resource Corp. African Gold Group Cassidy Gold Merrex Gold Inc. IMA Exploration Inc. SearchGold Resources Sulliden Exploration North Atlantic Resources Radius Gold Gateway Gold Temex Resources Robex Resources Trade Winds Ventures Maximus Ventures Ltd. Tagish Lake Gold Goldcrest Resources Portal Resources Alturas Minerals Corp. Pacific Comox Goldrush Resources

Market Cap.
$43 $43 $41 $40 $39 $32 $31 $28 $25 $22 $20 $18 $18 $17 $17 $15 $15 $14 $14 $14

Slide 8

M&A Universe
175

150 31-Dec-2005 Reserve Ounces (millions oz)

125

Agnico-Eagle Meridian

Barrick

100
Bem a Gold Fields Polyus Harm ony

New m ont

75
Lihir

Anglo Gold

50

New crest Goldcorp

25
Kinross IAMGold

BUBBLE SIZE DENOTES MARKET CAP

0 0.0

Randgold

2.0

4.0

6.0

8.0

10.0

2007E Production (millions ozs)

Slide 9

Gold Industry M&A

Gold Industry Overview Gold Market Valuation M&A Transactions Transaction Challenges Newmont M&A Approach

Slide 10

Valuation Factors

Financials NAV CF Free Cash Flow

Growth CFPS Reserves/Share Production/Share Quality Management Premium deposits Margins Reserve Life
Slide 11

Option Value Leverage Reserves/Share Production/Share

NAV Premiums Spot Gold

NAV premiums - Senior and Intermediate Producers


160% 140% 120% 100% 80% 60% 40% 20% 0% -20% 1/97

1/98

1/99

1/00

1/01

1/02

1/03

1/04

1/05

1/06

1/07
Slide 12

Price to Cash Flow

Price to Cash Flow - Senior Producers


25.0x
Sr Cur Yr Sr 1 Yr Out Sr 2 Yr Out

20.0x

15.0x

10.0x

5.0x
1/97 1/98 1/99 1/00 1/01 1/02 1/03 1/04 1/05 1/06 1/07
Slide 13

Gold Industry M&A

Gold Industry Overview Gold Market Valuation M&A Transactions Transaction Challenges Newmont M&A Approach

Slide 14

Gold Industry Transactions

Compiled by: BMO Capital Markets

Slide 15

Premium to NAV

Slide 16

NAV Accretion

Slide 17

Total Acquisition Cost

Slide 18

US/Canada Deal Structure Considerations

Tender Offer Cash


In the market for min. 40-50 days Ability to control the transaction documentation and transaction timing Ability to respond fast to competing bid 90% threshold for compulsory acquisition of remainder or 2nd stage squeeze-out transaction (additional 45 days) In the market for min. 40-50 days Ability to control the transaction documentation and transaction timing Ability to respond fast to competing bid Tax free roll for shareholder 90% threshold for compulsory acquisition of remainder or 2nd stage squeeze-out transaction (additional 45 days) SEC review and 43-101 compliance required Fairness opinion valuing acquiror

Plan of Arrangement
66.7% threshold, single process In the market for min. 50-60 days Target controls transaction documentation and timing to a greater degree

Shares

66.7% threshold, single process May be exempt from SEC review In the market for min. 60-70 days Target controls transaction documentation and timing to a greater degree 43-101 compliance required Fairness opinion valuing acquirer

Slide 19

Gold Industry M&A

Gold Industry Overview Gold Market Valuation M&A Transactions Transaction Challenges Newmont M&A Approach

Slide 20

Scarcity of Large Deposits

Frequency

Slide 21

Scarcity of Large Deposits

Industry Data from Schodde (1985-2003) 190 deposits > 1 Moz containing 895 Moz discovered Discovery rate is about 10 deposits > 1Moz per year Approximately 5 of 10 are >3Moz Only 14 of the total 190 deposits are >10 Moz

Slide 22

ETF Double Edged Sword

18000

750

16000

700

14000

650

12000

600

New Gold (JSE)


10000

GBS (ASX) Lyxor GBS (LSE) GLD(NYSE) Barclays iShares Gold Price

550

8000

500

6000

450

4000

400

2000

350

0
2003 Source: Murenbeeld 2004 2005 2006

300

Slide 23

Intermediates at Senior Multiples

Gold Price Discounted by Intermediates

Gold Price Discounted by Seniors

Source: BMO Nesbitt Burns

Slide 24

Life Cycle of a Project

10 8 6 4 2
Greenfields ~4 - 5 Years

Competitive High Risk Potentially High Value

Sponsorship Opportunities Few Competitors and lower Risk

Full Value

Relative Value

Exploration Focus
Speculative Stock Ahead Of Known Value Orphan Period

Corporate Focus
Speculators Leave Institutional Investing Begins 2 Years Development 1 Year Start-Up Depletion

Pre-Discovery

1 - 2 Years Discovery

2-3 Years Feasibility & Permitting

Years

Early Mover Advantage Limited Information Portfolio Approach

5 7 10 Development Projects Permitting Issues Lack of Operating/Technical Skills Capital Constraints

12 13 Mergers/Acquisitions: Strategic, Synergistic

Slide 25

Gold Industry M&A

Gold Industry Overview Gold Market Valuation M&A Transaction Valuation Transaction Challenges Newmont Growth Strategies

Slide 26

Reserve Additions and Depletions


Gold Majors 2001-2005
89%

99%

17% 68% 0% -15% -51% 0% 4% 127% 65% -100% 484% 484% 264% 213%

Slide 27

Exploration Spend Gold Majors


200 180 160

Barrick
Diamond Explorers 2006 Diversified Miners 2006

Exploration Budgets (US$ Millions)

Newmont
140 120 100 80 60 40 20 0 2001 2002 2003 2004 2005 2006

AngloGold

Gold Fields

Source: Corporate Exploration Strategies (Metals Economics Group, October 2006)

Slide 28

Growth Strategies

Core Operations Regional Operating Units Partnering Strategy Stake in future large deposits Investment/Diversification Non-core assets

Slide 29

Gold Industry M&A

Thank You

Slide 30