2. LEGAL DISCLAIMER
SAFE HARBOR: Some statements in this presentation are forward looking in nature. The United
States Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain
forward-looking statements. Such statements include statements as to the potential of the
Esperanza Gold Project property and other exploration properties. The forward-looking
statements involve risks and uncertainties and other factors that could cause actual results to
differ materially, including those relating to permitting, availability of equipment, exploration
results and bringing properties into production. Please refer to a discussion of these and other
risk factors in Esperanza’s public filings with the Canadian regulators and Form 20-F filed with
the US Securities and Exchange Commission.
The forward-looking statements contained in this presentation constitute management’s current
estimates as of the date of this presentation with respect to the matters covered herein. We
expect that these forward-looking statements will change as new information is received and
that actual results will vary, possibly in material ways. While we may elect to update this
forward-looking information at any time, we do not undertake to do so.
This presentation is not, and under no circumstances is to be construed as, a solicitation or an
offer of any kind. The matters set forth in this presentation do not constitute an agreement or
offer that may be accepted. Accordingly, no person may bring a claim or action against another
for a failure to negotiate, agree or enter into any agreement with respect to matters contained in
the presentation.
TSX.V: EPZ
OTCQX: ESPZF
2
3. HIGHLIGHTS
STRONG MANAGEMENT TEAM
Proven mine builders, led by former Minefinders
executive and operating team.
ESPERANZA GOLD PROJECT
Accelerating to production and positive cash flow.
$42 MILLION IN CASH AND SECURITIES
Well funded to advance the development ready
flagship asset.
LONG-TERM OBJECTIVE
Building a multi-mine precious metals producer.
3
4. RECENT DEVELOPMENTS
SEPTEMBER 2011 SEPTEMBER 2012
Updated Esperanza Gold Project Preliminary Economic M&I Resources Increased by 61% at the Esperanza Gold
Assessment Project
• Average gold production of 103 koz/year at operating • September 2012 resource of 1.47 Moz M&I @ 0.91 g/t
costs of $499/oz (net of silver by-products) gold and inferred of 170 koz @ 0.66 g/t gold
• PEA mine life of 6 years was based on September 2010
resource statement of 913 koz M&I @ 0.83 g/t gold and
MAY 2012 Inferred of 230 koz @ 0.83 g/t gold
Significant Additions to the Management Team • Mineralization remains open in several directions
• Addition of an executive and operating team with
experience permitting, building, and operating in Mexico
brought in to fast track the Esperanza Gold Project to OCTOBER 2012
production
Esperanza Signs Surface Rights Agreement at the
$10M Private Placement Announced (Increased to $34M) Esperanza Gold Project
• Overwhelming demand resulted in a substantial increase • 15 year agreement with the communal landowners to
to the financing provide for the construction and operation of a mine at
the project
• Represents the equity component of the Esperanza Gold
Project capital requirements • Confirms the local community’s support for the
Esperanza Gold Project
• Key step in the permitting process
4
5. THE NEW TEAM
MANAGEMENT NON EXECUTIVE DIRECTORS
GREG D. SMITH WILLIAM J. PINCUS
President & CEO Chairman
Former CFO Minefinders, Chartered Accountant Former CEO of Esperanza with over 30 years experience as a
certified professional geologist
DANIEL O’FLAHERTY
Executive VP ANDREW SWARTHOUT
Former Director, Investment Banking at Scotia Capital Director
CEO of Bear Creek Mining Corp. and former officer of Southern
ANDREW POOLER Peru Copper
COO
Former COO of Abacus Mining and Exploration Corp MARCEL DE GROOT
Senior Vice President, Mine Operations for Pan American Director
Silver Founder and President of Pathway Capital Ltd.
KYLIE DICKSON BRIAN E. BAYLEY
CFO Director
Former Controller of Minefinders Resource Lending Advisor for Sprott Resource Lending Corp.
JOHANNES J. MILLER
VP Operations
Former Operations Manager and
Acting VP Operations for Minefinders
5
6. THE ESPERANZA
GOLD PROJECT
100% ownership
• 15,025 hectares
• Gold oxide deposit
Excellent infrastructure and easily
accessible
Planned conventional open-pit heap-leach
operation with short construction lead-time
& manageable capital requirements
Updated PEA completed in September 2011
6
8. PEA HIGHLIGHTS: SEPTEMBER 2011
TWO-STAGES OF CRUSHING
AVERAGE ANNUAL GOLD PRODUCTION (KOZS) 103
OPERATING COSTS (NET OF BY-PRODUCTS) ($/OZ AU) 499
INITIAL CAPITAL COST ($MM) 114
PRODUCTION RATE (KTPD) 20
GOLD RECOVERY 75%
SILVER RECOVERY 25%
OVERALL STRIP RATIO (WASTE:ORE) 2.2:1
NSR ROYALTY 3%
SEPTEMBER 2010 RESOURCE (USED AS THE BASIS FOR THE PEA)
Based on Sept. 2010 Resource including 41,500 meters of drilling (does not include positive 2011 & 2012 drilling of 22,000 meters)
GOLD SILVER
TONNAGE GOLD SILVER
GRADE GRADE
(000’S) (KOZS) (KOZS)
(G/T) (G/T)
M&I 34,406 0.83 1.8 913 1,951
INFERRED 8,596 0.83 6.9 230 1,904
Note: Totals may not sum to 100% due to rounding
8
9. $15 million
Crusher
$6 million
CAPITAL COST Heap Leach Phase II
ESTIMATE
New management to review
and optimize capital costs from
PEA
PEA Operating Costs: <$500/oz
+3% NSR
$65 million
TOTAL PEA CAPITAL Currently Infrastructure
under Leach Pad
$114 million revision Mine Development
+ Owner Costs
$15 million working capital Working Capital
Potential to pay
$25 million for out of cash
Support Equipment flow
Potential for
contract mining
$20 million
Truck Fleet
9
10. FINANCING OPTIONS
Esperanza currently has $36M in cash on hand
Multiple alternatives provide flexibility to choose most attractive method in 2013
Project Convertible
Silver Stream Equity
Debt Debentures
• No shareholder • NAV accretive • Sale of equity at a • Low risk
dilution • Retain 100% of gold premium • Increases liquidity
• Low cost and full control of the • No financial covenants • Strengthens
• Several banks have asset • Quick to complete shareholder base
been to site • Third party validation • Quick to complete
& marketing overlap
• Quick to complete
• Financial covenants • Increases cash costs by • Selling optionality • Dilutive
• Asset security required decreasing silver • Encourages short • Market dependent
• Long time frame to byproduct credit selling • Transaction costs
acquire credit approval • LOM deals sell upside • Transaction costs • Valuation
• Debt instrument to silver price and • Debt instrument considerations EPZ
silver exploration is currently
• Market perception significantly
undervalued
10
12. Production
ESPERANZA GOLD PROJECT MOVING FORWARD
Obtain All Permits
Feasibility Study
Surface Land
Agreement Construction
INAH Completes
Appointed Project Archaeological Review Resource Update
Finance Advisor
Completed $34M
Initiation of Equity Placement Submit Permit Application
Feasibility Study
Prepare Permit Application
Addition of Experienced Operating Team
Expansion Drilling
Q1 2012 Q2 2012 Q3 2012 Q4 2012 2013–2014
12
13. ESPERANZA GOLD PROJECT HIGHLIGHTS
WELL DEFINED GOLD RESOURCE
LOW CAPITAL REQUIREMENTS
STRONG ECONOMICS
FAVOURABLE LOCATION IN MEXICO
LOW RISK CONVENTIONAL OPERATION (OPEN-PIT HEAP-LEACH)
SILVER BYPRODUCT CREDIT
EASY ACCESS TO INFRASTRUCTURE
EXPLORATION UPSIDE
STRONG COMMUNITY SUPPORT
EXPERIENCED MINE BUILDERS
QUICK TIMELINE TO PRODUCTION
13
14. OTHER ASSETS
Operator
Biricu
Project Strieborna San Luis El Canario
Gallos Blancos
Location Slovakia Peru Mexico
Commodity Ag, Cu Ag, Au Au
M&I INFERRED
290 koz Au Reserves
Resources 14.3 Moz Ag 13.5 Moz Ag Exploration Stage
7.2 Moz Ag Reserves
48.1 Mlbs Cu 29.8 Mlbs Cu
EPZ Interest 26% equity interest 1% NSR 100% owned
14
15. VALUE CONSIDERATIONS
As per Esperanza Gold Project 2011 Preliminary Economic Assessment
$350 70%
After-Tax Net Present Value (US$M)
IRR
$300 60%
5% NPV
Internal Rate of Return (%)
$250 50%
7% NPV
$200 40%
$150 30%
$100 20%
$50 Based on initial 6 year mine life does not include 0.5 Moz Au resource increase 10%
$0 0%
$1,000
$1,450
$1,150
$1,550
$1,250
$1,300
$1,050
$1,400
$1,600
$1,100
$1,500
$1,700
$1,200
$1,350
$1,650
Price of Gold (US$/oz)(1)
$1,250/oz Au $1,550/oz Au
After-Tax NPV5% of $165M After-Tax NPV5% of $270M
(1) Silver price based upon a Ag:Au price ratio of 55:1 IRR of 35% IRR of 53%
15
16. AFTER TAX NPV VS. ENTERPRISE VALUE
Based on initial 6 year mine life does not include 0.5 Moz Au resource increase
VALUE
CONSIDERATIONS
$300
As per Esperanza Gold $270 million
Project 2011 Preliminary
Economic Assessment
$250
After-Tax NPV 5% vs.
Esperanza Total Enterprise
$200
Value (1)
$165 million
$150
$100
Esperanza Total
Enterprise Value (1)
$50
$0
$1,250/OZ GOLD PRICE $1,550/OZ GOLD PRICE
(1) As at October 12, 2012 16
17. PEER BENCHMARKING
Open-Pit Heap Leach Mines / Projects in Mexico
1.00
Producing Esperanza Gold Project
Development
Size of bubble denotes
est. annual production
0.80
M&I RESOURCE GOLD GRADE (g/t)
San Antonio
La Colorada
0.60
Cerro del Gallo
Caballo Blanco
La India San Francisco
0.40
El Castillo
0.20
0 500 1,000 1,500 2,000
MEASURED & INDICATED GOLD RESOURCE (koz)
Source: Scotia Capital, Company Reports 17
Resource grades may not be diluted for mining
18. CONCLUSION
New Management Team Rapidly Moving Towards Significant Upside at the Attractive Value / Low
Has Skill Set to Deliver Production at the Esperanza Gold Project Risk Equation
Esperanza Gold Project
Recent experience • Drilling since September • Esperanza is trading at a
permitting, building, and • Permitting, surface 2010 resource substantial discount to
operating in Mexico rights negotiation and statement suggests its net asset value
detailed engineering substantial opportunity
• Trading at the low end
concurrent with for resource expansion
of $ / oz metrics
preparation of feasibility and mine life extension
study • Particularly with low risk
• Capital costs can be
heap leachable ounces
• Strong balance sheet reduced and
including $36 million in restructured (staged
cash leach pads, ROM,
contract mining)
TSX.V: EPZ
OTCQX: ESPZF
www.epzresources.com
18
20. APPENDIX: CORPORATE INFORMATION
ESPERANZA RESOURCES CORP.
TSX.V LISTING (SINCE AUGUST 2003) EPZ
OTCQX LISTING ESPZF
CURRENT PRICE (13-MARCH-13) C$1.15
HIGH – LOW (12 MONTH) C$1.70 — $0.99
AVERAGE DAILY VOLUME (3 MONTHS) 120,000
SHARES OUTSTANDING 78.8 M
MARKET CAP (ISSUED/OUTSTANDING) C$90 M
CASH C$35 M
VALUE OF SHARES IN GLOBAL MINERALS LTD. C$7.0 M
WEBSITE www.epzresources.com
20
21. APPENDIX: ESPERANZA GOLD PROJECT
CAPITAL COST ESTIMATE
PEA PREPRODUCTION CAPITAL (US$M) TWO-STAGE CRUSH RUN-OF-MINE
MINE DEVELOPMENT (PRE-STRIP) $10.5 $10.5
MINING EQUIPMENT/INFRASTRUCTURE $52.0 $52.0
PLANT/INFRASTRUCTURE $32.1 $18.1
LEACH PAD $17.4 $17.4
OWNER COSTS $1.6 $1.6
TOTAL PEA PREPRODUCTION CAPITAL $113.6 $99.6
WORKING CAPITAL $13.6 $10.0
LOM SUSTAINING CAPITAL $7.0 $7.0
The PEA Preproduction capital INCLUDED IN PREPRODUCTION CAPITAL
includes several components that TRUCK FLEET $19.5
can be leased, replaced with SUPPORT EQUIPMENT (E.G. DOZERS) $12.3
contract mining, or staged later in LOADERS $8.9
ROTARY DRILL $4.1
the mine life
HEAP LEACH PAD PHASE II $5.7
PEA Operating Costs: <$500/oz + SUB-TOTAL FLEXIBLE CAPITAL $50.5
3% NSR
21
22. APPENDIX: LIFE CYCLE OF A MINE
Start Up
Reality Sets In
HIGHER RISK:
Confirm Deposit
LOWER RISK:
SHARE PRICE
Production Decision
$0
DISCOVERY DEVELOPMENT PRODUCTION
SPECULATION INVESTMENT ANALYSIS REVALUATION
1–2 YEARS 2–3 YEARS 2–3 YEARS
SOURCE: U.S. Global Research
22
23. APPENDIX: THE ESPERANZA GOLD PROJECT
EXPLORATION TARGETS
10 Target Areas Warrant Further
Exploration:
4 target areas adjacent to the known
resource (DRILL READY)
• Southwest Extension
• Colotepec
• Northern Contact
• NE Intrusive Contact
6 other target areas, in order of priority
(DRILL READY)
• Coatetelco
• Alpuyeca
• Pluma Negra
• Mercury Mines
• La Vibora
• Jasperoid de Toros
23
24. APPENDIX:
RESOURCE
EXPANSION
POTENTIAL Esperanza Gold
Project 2012
• Mineralization remains open Drill Hole
in several directions Location Map
• 5000 meter program
expected for 2013 to pursue
the Southwest Extension
DHE-12-74
25.5 meters containing 1.65 g/t Au
DHE-12-74
DHE-12-77
DHE-12-77
31.5 meters containing 2.8 g/t Au DHE-12-81
DHE-12-81 DHE-12-90
45 meters containing 1.9 g/t Au
DHE-12-90
Two separate intervals, 27 meters
containing 1.1 g/t Au and another
interval with 121.5 meters containing
1.1 g/t Au
24
