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2011 – Focused on Growth
EUROPEAN GOLD FORUM
                           TSX:P
April 2011
Cautionary Statement                                                                                                                                   TSX:P


This presentation may contain “forward-looking” statements within the meaning of Canadian securities legislation and the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements relate to future events or the anticipated performance of the Company and reflect
management’s expectations or beliefs regarding such future events and anticipated performance. In certain cases, forward-looking statements can be
identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, ”estimates”, ”forecasts”, ”intends”, ”anticipates” or
“believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, ”could”, “would”, ”might”, or “will be
taken”, “occur” or “be achieved”, or the negative of these words or comparable terminology. By their very nature forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any
anticipated performance expressed or implied by the forward-looking statements. Such factors include various risks related to the Company’s operations,
including, without limitation, fluctuations in spot and forward markets for gold, silver and other metals, fluctuations in currency markets, changes in
national and local governments in Mexico and the speculative nature of mineral exploration and development, risks associated with obtaining necessary
exploitation and environmental licenses and permits, and the presence of laws that may impose restrictions on mining. A complete list of risk factors are
described in the Company’s preliminary prospectus and will be detailed from time to time in the Company’s interim and annual financial statements and
management’s discussion and analysis of those statements, all of which are, or will be available, for review on SEDAR at www.sedar.com.

This presentation uses the terms “measured resources”, “indicated resources” and “inferred resources”. The Company advises readers that although these
terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI43-101”)),
the United States Securities and Exchange Commission does not recognize them. Readers are cautioned not to assume that any part or all of the mineral
deposits in these categories will ever be converted in to reserves. In addition, “inferred resources” have a great amount of uncertainty as to their existence,
and 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 pre-feasibility studies, or economic studies, except for
a Preliminary Assessment as defined under NI43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically
or legally mineable.

Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward-
looking statements, there may be other factors that cause its performance not to be as anticipated. The Company neither intends nor assumes any
obligation to update these forward-looking statements or information to reflect changes in assumptions or circumstances other than required by applicable
law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from
those currently anticipated. Accordingly, readers should not place undue reliance on forward-looking statements.

Unless otherwise indicated, all dollar values herein are in US$.




                                                                                                                                                                  2
Why Primero?            TSX:P




               San Dimas
               Gold-Silver Mine
               DURANGO MEXICO




                                  3
Disciplined Strategy                                                                                        TSX:P

                                                                            GROWTH OBJECTIVE
                                                          Gold Eq. ounces (000)                        LEADING MID-TIER
1                                                                                                       GOLD PRODUCER
                                                          400
       Double San Dimas production by 2013            1


       Additional exploration opportunity                                         LATIN AMERICAN
                                                                                   ACQUISITIONS
                                                          300

2
                                                                     SAN DIMAS                      ACQUISITIONS
       Cash costs trending below $450 per AuEq oz1                  OPTIMIZATION
                                                          200                                       EXPLORATION
       Reduce taxes
                                                                                                   OPTIMIZATION
3
                                                          100
       Maintain balance sheet strength                                                                 SAN DIMAS
                                                                                          (GOLD EQUIVALENT OUNCES)
       Americas pro-mining jurisdictions only
       Committed to leading CSR programs
                                                            0
                                                             2010                 2011E            2012E         2013E
1.   See Primero Press Release of January 17, 2011.                                                                      4
Operating Results
           Quarterly Improvement                                                                                                                               TSX:P

                                                                                                                                           1
                                                                                         Q4 2010                         Q3 2010

 Throughput                                                                                                                                                   14%
                                                                                                1,840                            1,578
 (tonnes per day)


 Gold equivalent production                                                                  24,800                           21,800
 (gold equivalent ounces)

 Gold production                                                                             21,200                           18,400
 (ounces)

 Silver production                                                                                1.21                              1.01
 (million ounces)

 Gold grade                                                                                       4.01                              4.03
 (grams per tonne)

 Silver grade                                                                                       236                              227
 (grams per tonne)
                                                                                                                                                               $8
                      2
 Cash cost                                                                                       $645                             $653
 ($ per gold equivalent ounce)
                      2
 Cash cost – by-product                                                                          $524                             $552
 ($ per gold ounce)

1. The San Dimas mine was acquired by Primero on August 6, 2010. Operating data for Q3 2010 comprises results during Goldcorp’s ownership (July 1 – Aug 5).
2 .Cash cost is a non-GAAP measure. Refer to the 2010 fourth quarter MD&A for a reconciliation of cash costs to operating expenses.
                                                                                                                                                                       5
Strong Financial Position
  Solid Platform for Growth                                                                                                TSX:P




       $58                          Increased                                        Exchange                             TSX:P
                                                                                     BALANCE SHEET at Dec 31, 2010
        million                     Cash Balance                                     Cash                            $58 million
                                                                                     Promissory     note1             $50 million
                                                                                     Convertible note2                $60 million
        $90                         Strong                                           OWNERSHIP
        million3                    Operating Cash Flow Goldcorp                                                           36%
                                                                                     Management & insiders                 ~3%
                                                                                     Institutional & float                ~61%
          $5                        Prudent
      million                                                                        CAPITAL STRUCTURE
  repayment per                     Level Of Debt                                    Shares outstanding               88 million
       year                                                                          Fully Diluted                   117 million
1. Goldcorp: 5 year, 6% note repaid $5M/yr with balloon payment at end of year 5
2. Goldcorp: 1 year, rolling, 3% note convertible at CDN$6
3. Estimated 5 year average after-tax cash flow based on Primero’s five-year plan.
                                                                                                                                    6
San Dimas Growth Profile
        Cash Flow Funded                                                                                                                                                                                                    TSX:P



        200
                     Estimated San Dimas Gold Equivalent Production1
                     (thousand gold equivalent ounces)

        180                                                                                                                                                                                              Sinaloa
                                                                                                                                                                                                         Graben

        160

        140

        120
                                                                                                                                                                                                          Central
                                                                                                                                                                                                           Block
        100

          80

          60

          40

                                                                                                                                                                                                        Sta. Lucia
          20                                                                                                                                                                                             Sta. Rita

                                                                                                                                                                                                         Tayoltita
            0
                                         2010                                                2011E                                                2012E                                                 2013E
1. Forecast production figures were calculated using the following metal prices: 2011: gold $1,400 per ounce; silver $24 per ounce; silver price received from Silver Wheaton $4.04 per ounce. 2012: gold $1,450 per ounce; silver $25 per
ounce; silver price received from Silver Wheaton $4.08 per ounce. 2013: gold $1,270 per ounce; silver $21 per ounce; silver price received from Silver Wheaton $4.12 per ounce.                                                              7
2011 Production Guidance
               Focused on Growth                                                                                                                                                                                                   TSX:P
                                                                                                                                                                                                                                                     3
                                                                                                                                                                                                                                      2011E
             Production: 15% increase
                                                                                                                                 Gold equivalent production                                                  110,000 - 120,000
                                                                                                                                 (gold equivalent ounces)
             Targeting gold reserves: 1 million oz
                                                                                                                                 Gold production                                                                90,000 - 100,000
                                                                                                                                 (ounces)
             Targeting throughput of 1,900 tpd
                                                                                                                                 Silver production                                                                                 4.5 - 5.0
                                                                                                                                 (million ounces)
             Grades expected to increase
                                                                                                                                 Gold grade                                                                                                    4.8
                                                                                                                                 (grams per tonne)
             Development up 50%:
                                                                                                                                 Silver grade                                                                                                250
              $11.4 million or 8,900 metres                                                                                     (grams per tonne)
                                                                                                                                                      1
                                                                                                                                 Cash cost – gold equivalent                                                               $550 - $570
             Exploration doubled to $12 million:                                                                                 ($ per gold equivalent ounce)

              54,000 metres diamond drilling – 30% more                                                                         Cash cost
                                                                                                                                                      1,2
                                                                                                                                                            – by-product                                                   $350 - $370
               than 2010 levels                                                                                                  ($ per gold ounce)

              3,800 metres exploration drifting – Ten-fold                                                                      Capital Expenditures
               increase over 2010 levels                                                                                                                                                                                                     $31
                                                                                                                                 (millions)
1.   Cash cost is a non-GAAP measure.
2.   Cash costs (by-product) per gold ounce reported for San Dimas by Goldcorp Inc. are not comparable to Primero cash cost numbers due to certain inter-company transactions that are reversed for Goldcorp Inc.’s consolidated reporting.
3.   2011 forecasts assume an average gold price of $1,400 per ounce; an average silver price of $6.63 per ounce, as according to the silver purchase agreement the first 3.5 million ounces and 50% of the excess of silver are sold at $4.04 per   8
ounce and the balance is sold at spot, which is assumed to be $24 per ounce.
Improved Silver Agreement
          Increased Revenue, Reduced Costs
                                                                                                Old Agreement
         To 25 Years                         All silver sold at ~$4 for 25 years (19 years remaining)
                                                                     Amended Agreement – Anniversary August 6
                                             First 3.5 million oz annual Ag production plus 50% of excess sold to SLW at ~$4
          2010-2014
                                             50% of annual Ag production above 3.5 million oz sold at spot
                                             First 6 million oz annual Ag production plus 50% of excess sold to SLW at ~$4
          2015-LOM
                                             50% of annual Ag production above 6 million oz sold at spot

                            Increased Revenue1                                                                                        Decreased Cash Costs1




1.   BMO Capital Markets Research., August 2010. Gold Prices 2010: $1,188, 2011: $1,300, 2012: $1,250, 2013: $1,150, Silver Prices: 2010: $18.50, 2011: $21.00, 2012: $20.00, 2013: $17.00   9
Improved Silver Agreement
          Tax Impact , Quarterly Volatility Remains
        Tax Impact                                                                                                                Estimated Quarterly Variation In Revenues1
                 Primero currently pays tax on silver at spot
               Gold price inc. 10%, 2011E after-tax cash flow inc. ~18-20%
               Silver price inc. 10%, 2011E after-tax cash flow dec. ~4-6%
               Gold & Silver price inc. 10%, 2011E after-tax cash flow inc.~14%

        Quarterly Volatility
                 Silver threshold based on agreement anniversary
                 August 6, not calendar year
        Silver:Gold Ratio
                 30 year historical silver:gold ratio 55:1




      1 Increase San Dimas production: 2010: 4.5 million oz Ag, 2013E: 8.0 million oz Ag

      2 Investigate all tax planning alternatives: Silver call options purchased as short term protection

      3 Acquisition of additional operations
1.   UBS Research, “Higher sales leads to a strong Q4 result”, February 2011. Assumes flat gold ($1,400/oz) and silver ($30/oz)                                            10
San Dimas
Solid Platform with expansion & exploration potential                                                             TSX:P

 QUICK FACTS

SAN DIMAS               Durango, Mexico
OWNERSHIP               100%
                                                                               Dolores
METALS                  Gold & Silver                                       Mulatos
                                                                            Pinos Altos
MINING                  Underground, cut and fill                              Ocampo

MILL CAPACITY           2,100 tpd                                                 El Sauzal

MINE LIFE               20+ years                                                         La Cienega       Penasquito

                                                                                                       Durango
                                                                                  Mazatlan


 RESERVES & RESOURCES                   (as at December 31, 2010)           San Dimas
                                                                            Gold-Silver Mine
                                                                            DURANGO MEXICO
Proven & Probable Reserves
Tonnes (millions) Grade (g/t) Silver (g/t) Gold (Moz) Silver (Moz)          Ventanas
                                                                            Exploration Property
5.9                   4.7            332             0.9            62.9    DURANGO MEXICO

Inferred Resources (exclusive of reserves)
Tonnes (millions) Grade (g/t) Silver (g/t) Gold (Moz) Silver (Moz)
16.9                  3.7            330             2.0            178.8
                                                                                                                          11
San Dimas
Large Area, Rich History                              TSX:P


                           QUICK FACTS
                           DEPOSIT   High-grade, gold-silver
                                     epithermal veins,
                                     characterized by low
                                     sulphidation
                           LAND      25,000 ha




                                                               12
District Wide Potential
       Longitudinal Section                                                                                                        TSX:P



            San Antonio        Sinaloa Graben       Central Block             Tayoltita Block       Arana
           Mined 1987-2002                         Mined 2002-Current         Mined 1975-2002
                                2011 EXPLORATION                                                 Hanging Wall
            West Block               PRIORITY

SW                                                                                                                                       NE
3,000 m.                                                                                                                             3,000 m.




2,000 m.                                                                                                                              2,000 m.




1,000 m.                                                                                                                              1,000 m.




                                                                                                Source: San Dimas Geology Office




           Mineralization – Ore Bodies                  Extension of the Favorable Horizon                        0            1                 2

           Favorable Horizon                             Potential
                                                                                                                   K I L O M E T E R S


                                                                                                                                                13
Sinaloa Graben: Higher Grade & Wider
    Plan View
                Sinaloa             Central Block       Tayoltita Block   Arana Hanging Wall
San Antonio
 West Block     Graben                                                                                  Dev      Ag g/t Au g/t     m
                 Block                                                                               1. RAMP7-129W 1,115 10.30    2.75
                                                                                                        RAMP8-129E 2,054 22.8     3.20
                                                                                                        RAMP8-129E 1,449 14.0     4.20
                                                                              7
                                                                                                        DDH        Ag g/t    Au g/t m
                                                                                                     2. TGS-S-22    958      6.81 8.56
            SAN                                                                                         TGS-S-15    403      8.08 7.52
          VICENTE                                                                                    3. PIL 7-01    508     16.0 2.90
                                                                                                     4. SOL-9-02    549     10.67 1.81
                                                                                                     5. MAR-9-17    514     8.86 2.45
                                                    6                                   Santa Rita   6. RO-20-05    514     4.23 1.27
                                                                                          mine       7. A-25-217(1) 778      7.9 0.80
                                                                                                        HW-4G-01B 302        8.7 0.60
                                                    5
                                3                   4



                                                                           TAYOLTITA                               LEGEND
                                          2                               TOWN & MILL
                                              1                                                            Ag-Au High
                                                                                                           Grade Trend
                            San Antonio                                                                    Proposed Tunnel
                               mine
                                                                                                           Tunnel 2011
                                                                                                           Tunnel done

                                                                                                           Vein                   N
                                                                                                           Fault

                                                                                                           Town
                                                                                                       0       1       2 km

                               Piaxtla River


 (Source: San Dimas Geological Office)
                                                                                                                                 14
Significant Exploration Upside
      Sinaloa Graben Key to Growth                                               TSX:P




             Sinaloa Graben million ounce resource potential1
                90% of resources added in 2010 from Sinaloa Graben (340,000 ounces)

             Higher Grade:
                Average reserve grades of 4.8 g/t Au, 339 g/t Ag
                Sinaloa Graben results show ~6.0 – 10.0 g/t

             Wider:
                Current average mining width ~1.5m
                Sinaloa Graben results show ~3.0 – 8.0m



1. San Dimas NI 43-101 Technical Report, March 2011                                      15
Reserves & Resources
               Proven 90% Resource to Reserve Conversion Ratio                                                                 TSX:P

               2010 Results                                                           2011 Objectives
                     Gold & Silver Reserves up 3%                                        Increase Gold Reserves to 1 million ounces
                     Gold Resources up 23%, Silver up 16%                                Increase Central Block resources at depth
                     High-grade confirmed at depth in Central Block                      Double resources in Sinaloa Graben
                     New high-grade discoveries in Sinaloa Graben                        Identify economic widths in Arana

                                                           San Dimas Gold Reserve Replacement (2003-2010)
         1,000,000
                                Reserve Additions   Production
           900,000

           800,000

           700,000

           600,000
Ounces




           500,000

           400,000

           300,000

           200,000

           100,000

                 0
                      Initial              2003          2004       2005       2006      2007       2008     2009       2010           End

         1. San Dimas NI 43-101 Technical Report, March 2011                                                                            16
Infrastructure
Optimization & Expansion Plan           TSX:P


 INCREASE MINE DEVELOPMENT
Key to production growth

 OPERATE MILL AT DESIGN CAPACITY
Current:~1,800 tpd, Design: 2,100 tpd

EXPAND MILL TO 2,500 TPD BY 2013
Mill: 2,100 tpd, Leach: 2,500 tpd

 POTENTIAL EXPANSION BEYOND 2,500 tpd
2011 review




                                                17
The Value Proposition
Superior Production & CFPS Growth                                                                                                               TSX:P

                2010 to 2013E Production Growth1                                                          2010 to 2013E CFPS Growth 2
     160%
                                                                                              450%

     140%                                                                                     400%


     120%                                                                                     350%


                                                                                              300%
     100%

                                                                                              250%
      80%

                                                                                              200%
      60%
                                                                                              150%

      40%
                                                                                              100%

      20%
                                                                                              50%


        0%                                                                                     0%
                                             Jaguar




                                                                                                                             Jaguar
                                                          Gammon



                                                                       Alamos




                                                                                                                                      Alamos


                                                                                                                                               Gammon
                                  Primero




                                                                                                     Primero
                                                                                   New Gold




                                                                                                                                                          New Gold
                    Minefinders




                                                                                                               Minefinders
1.   Estimates based on street estimates (Primero based on company estimates);
2.   BMO Capital Markets Research (Jaguar based on consensus), January 31, 2011.                                                                                     19
     Note: As of Jan 31, 2011
2011 Objectives
                  TSX:P


1

2

3

4

5

6

7

8

                          20
Why Primero?                                                                      TSX:P


Established Mexican gold and silver producer
      Doubling San Dimas production by 20131
      Located in pro-mining jurisdiction

Proven management team & board

Long life, low cost asset
      20+ year mine life
      Cash costs trending below $450 AuEq oz1

Cash flow funded growth platform
      ~$90 million after-tax cash flow2

Attractive valuation – re-rating opportunity

1.   See Primero Press Release of January 17, 2011.                                            21
2.   Estimated 5 year average after tax cash flow based on Primero’s five year plan.
APPENDICES
Transaction Overview
                                                                                                     TSX:P




1. $489 million structured as:
 $220 million in cash
 $159 million in shares of Primero (~36% ownership)
 $50 million 5-year 6% note ($5 million annually plus final balloon payment at the end of year 5)
 $60 million 1-year 3% note convertible at C$6.00 per share
Note: Transaction structure reflects the working capital adjustment completed during Q4 2010.                23
Strong Management & Board                                                               TSX:P

Wade Nesmith | Executive Chairman               Robert A. Quartermain
 Founder of Mala Noche                            Former President, Silver Standard
                                                  Director of Vista Gold Corp. and Canplats Resources
 Founding and current director of Silver
 Wheaton, Chairman of Geovic Mining and         Grant Edey
 Selwyn Resources                                 Director of Breakwater Resources and former
                                                  director of Queenstake Resources, Santa Cruz Gold
                                                  Former CFO, IAMGOLD
Joseph F. Conway | President & C.E.O.
  Former CEO, President and Director of         Timo Jauristo
 IAMGOLD from 2003 to 2010                        EVP, Corporate Development, Goldcorp

                                                Rohan Hazelton
Eduardo Luna | President, Mexico                   VP, Finance, Goldcorp
 Former Chairman and CEO of Silver Wheaton,     David Demers
 Executive VP of Goldcorp and Luismin S.A. de     Founder, CEO and Director Westport Innovations
 C.V. (San Dimas) and President of Mexican        Director of Cummins Westport and Juniper Engines
 Mining Chamber and the Silver Institute
                                                Michael Riley
                                                  Chartered accountant with more than 26 years of
                                                  accounting experience
                                                  Audit committee chair B.C. Lottery Corporation


                                                                                                  24
2010 Results
                                                                                                                                                        TSX:P



1

2

3

4

5

6

7

8

1. Primero raised $285 million on July 20, 2010, currency exchange fluctuation resulted in $292 million in proceeds being delivered on August 6, 2010           25
2010 Financial Results
      First Full Quarter of Production Generated a Profit                                                                                                                                   TSX:P


        (US$ thousands, except per share amounts)                                      Q4 2010                       Q4 2009                              2010                         2009

        Revenues                                                                           41,425                                     -              60,278                                     -

        Earnings from Operations                                                           13,250                                     -              14,145                                     -

        Net earnings                                                                         1,827                          (333)                 (34,487)                            (783)

        Earnings (loss) per share                                                               0.02                      (0.11)                       (0.93)                        (0.36)

                            1
        Adjusted net earnings (loss)                                                         3,069                          (333)                    (7,357)                          (783)
                            1
        Adjusted earnings (loss) per                                                                                      (0.11)                       (0.20)                        (0.36)
                                                                                                0.03
        share

        Operating cash flow before
                                1                                                          14,044                           (318)                    11,697                           (660)
        working capital changes
1. Adjusted net earnings, adjusted net earnings per share and operating cash flow before working capital changes are non-GAAP measures. Refer to the 2010 fourth quarter MD&A for a reconciliation
to GAAP.
                                                                                                                                                                                                     26
Sinaloa Graben
Higher Grade and Wider Widths

               Sinaloa Graben Tunnel: Julieta - Sinaloa Norte vein (San Salvador system)
       Sinaloa Mine                  Sinaloa Graben                                San Salvador ( Central Block )
    (San Antonio Area)
                                                             7-660 L                                                                         NE
  SW                                                   Ag g/t Au g/t  m
                                                       189     3.13 1.24
  1,000 m                                                                                                                                  1,000 m




  500 m                                                                                                                                     500 m
                                                                                       San Luis Tunnel Elev
                                                                                                                      San Luis Tunnel
                                                                                                                  Santa Anita Tunnel
  0m                                                                                                                                          0m




              DDH TGS-S-22                   DDH TGS S-15               DDH TGS 7-17
          Sinaloa Norte Intercept       Sinaloa Norte intercept        Julieta intercept
          Ag g/t Au g/t        m          Ag g/t Au g/t m             Ag g/t Au g/t m
           958      6.81     8.56m        403      8.08 7.52           481       3.73 2.22

                                                                                                              0          500         1000
       Explanation                             Drilling Plan 2011
          Proven Ore                           Drifting Plan                                                      M   E T    E   R     S
          Probable Ore                         Drifting Plan 2011
          Probable Ore by Drilling             Drifting Done


                                                                                                                                                  27
Sinaloa Graben, Robertita and
Nancy Vein Systems
               Sinaloa Graben                              Robertita Vn               Nancy Vein System
                Robertita Vn
  W                                                                                    DDH        Ag gr/t Au gr/t m
                                                                                                                                    E
                                                                                      ROB 12-03   160      5.81 3.50
                                                                                      ROB 7-34    344      6.80 3.64
                                                                                      ROB 7-36    472      8.04 2.09
            Sinaloa Graben                                                            ROB 16-03   519      8.67 1.81
               Cross Cut                                                              ROB 16-07   649     13.25 1.60


                                  Krc        L15-826W
                                                                San Fernando                                        Favorable
                                                                   Tunnel                                             Zone
                                                                                                                              Krc
   Pilar
   Mine
                                                                                         Kpa
             Kpa
                                                                                                                              600 m
   600 m
                                                                                                                    San Luis Tunnel Elev
                                                San Luis
                                                                                                                              400 m
  400 m                                          Tunnel                                    ROB 7-34
                                                                                             & 36
                                                                                                      Santa Anita
                            Kpr                        Krs
                                                                                                                              200 m
  200 m                                                                                               Guamuchil Tunnel
  DDDH TGS-S-07                                                                                          (Project)
                                          Piaxtla
 Robertita Vein Cut                     Granodiorite                            Kpr                                  Piaxtla
  Ag      Au     m                                                                                                 Granodiorite
 191     4.17 2.24
             Explanation                Drilling Plan
            Proven Ore                  Drilling Plan 2011      DDH ROB 16-08                  L21-843E
            Probable Ore                Drifting Plan          Robertita Vein Cut
                                        Drifting Plan 2011     Ag      Au     m                   0              500          1000 m
            Probable Ore by Drilling
                                        Level Done             607     4.18 0.96
            Stope                                                                                                                          28
NW                                                                                                                       Santa Lucia SE
                              DDH TGS-S-22                   TGS-S-15                            Zacatera-                           Rosario
                            Sinaloa Norte Vn             Sinaloa Norte Vn                        Julieta
                              Ag    Au m                  Ag     Au m                                     San Salvador
                           958 6.81 8.56m                403 8.08 7.52
            1,000m                                                                                                                             1,000m



                                                                   Limoncito
                                                                     Ramp


                                                                                                                   S Graben Tunnel
                500m                                                                                                                             500m
DDH TGS-S-07
 Robertita Vn
 Ag Au m
191 4.17 2.24
                                                                                                                    DDH TGS-7-17




                                                                               San Dimas Creek
                         Roberta




                                                                                                                     Julieta Vn
                                                                                                                    Ag Au m
                                                       TGS-S-02 y 03                                               481 3.73 2.22

                                                              Limoncito
                                                              Ramp

                                               Pilar
                         TGS-
                       S-04 & 05
                                               Mine                                                                                     Scale
                   TGS-S-07
                                                                                                            TGS-7-17                  0    500m
                                                                                                         Sinaloa
                                                                                                          Mine

                  Cumbres Rhyolite (Trc)                                                                            Faults
                  Cumbres Rhyolite (Trc)
                  Productive Andesite (Kpa)                      TGS-S-22         TGS-S-15                          Drilling Plan      Drifting Plan 2011
                  Rhyoilite (Kpr)
                                                                                                                    Drifting Plan
                  Buelna Andesite (Kba)
                  Socabon Rhyiolite (Krs)                                                                           Drifting Done
                  Piaxtla Intrusive (Ktpcg)
                                                                                                                                                            29
PRIMERO MINING CORP.
                  Richmond Adelaide Centre               INVESTOR RELATIONS
                  120 Adelaide Street West, Suite 1202   Tamara Brown
                  Toronto, ON M5H 1T1                    Vice President, Investor Relations
                  T 416 814 3160 F 416 814 3170          T 416 814 3168
                  TF 877 619 3160                        tbrown@primeromining.com




2011 – Focused on Growth

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Primero corporate presentation european gold forum 2011

  • 1. 2011 – Focused on Growth EUROPEAN GOLD FORUM TSX:P April 2011
  • 2. Cautionary Statement TSX:P This presentation may contain “forward-looking” statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, ”estimates”, ”forecasts”, ”intends”, ”anticipates” or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, ”could”, “would”, ”might”, or “will be taken”, “occur” or “be achieved”, or the negative of these words or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Such factors include various risks related to the Company’s operations, including, without limitation, fluctuations in spot and forward markets for gold, silver and other metals, fluctuations in currency markets, changes in national and local governments in Mexico and the speculative nature of mineral exploration and development, risks associated with obtaining necessary exploitation and environmental licenses and permits, and the presence of laws that may impose restrictions on mining. A complete list of risk factors are described in the Company’s preliminary prospectus and will be detailed from time to time in the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, all of which are, or will be available, for review on SEDAR at www.sedar.com. This presentation uses the terms “measured resources”, “indicated resources” and “inferred resources”. The Company advises readers that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI43-101”)), the United States Securities and Exchange Commission does not recognize them. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted in to reserves. In addition, “inferred resources” have a great amount of uncertainty as to their existence, and 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 pre-feasibility studies, or economic studies, except for a Preliminary Assessment as defined under NI43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward- looking statements, there may be other factors that cause its performance not to be as anticipated. The Company neither intends nor assumes any obligation to update these forward-looking statements or information to reflect changes in assumptions or circumstances other than required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those currently anticipated. Accordingly, readers should not place undue reliance on forward-looking statements. Unless otherwise indicated, all dollar values herein are in US$. 2
  • 3. Why Primero? TSX:P San Dimas Gold-Silver Mine DURANGO MEXICO 3
  • 4. Disciplined Strategy TSX:P GROWTH OBJECTIVE Gold Eq. ounces (000) LEADING MID-TIER 1 GOLD PRODUCER 400 Double San Dimas production by 2013 1 Additional exploration opportunity LATIN AMERICAN ACQUISITIONS 300 2 SAN DIMAS ACQUISITIONS Cash costs trending below $450 per AuEq oz1 OPTIMIZATION 200 EXPLORATION Reduce taxes OPTIMIZATION 3 100 Maintain balance sheet strength SAN DIMAS (GOLD EQUIVALENT OUNCES) Americas pro-mining jurisdictions only Committed to leading CSR programs 0 2010 2011E 2012E 2013E 1. See Primero Press Release of January 17, 2011. 4
  • 5. Operating Results Quarterly Improvement TSX:P 1 Q4 2010 Q3 2010 Throughput 14% 1,840 1,578 (tonnes per day) Gold equivalent production 24,800 21,800 (gold equivalent ounces) Gold production 21,200 18,400 (ounces) Silver production 1.21 1.01 (million ounces) Gold grade 4.01 4.03 (grams per tonne) Silver grade 236 227 (grams per tonne) $8 2 Cash cost $645 $653 ($ per gold equivalent ounce) 2 Cash cost – by-product $524 $552 ($ per gold ounce) 1. The San Dimas mine was acquired by Primero on August 6, 2010. Operating data for Q3 2010 comprises results during Goldcorp’s ownership (July 1 – Aug 5). 2 .Cash cost is a non-GAAP measure. Refer to the 2010 fourth quarter MD&A for a reconciliation of cash costs to operating expenses. 5
  • 6. Strong Financial Position Solid Platform for Growth TSX:P $58 Increased Exchange TSX:P BALANCE SHEET at Dec 31, 2010 million Cash Balance Cash $58 million Promissory note1 $50 million Convertible note2 $60 million $90 Strong OWNERSHIP million3 Operating Cash Flow Goldcorp 36% Management & insiders ~3% Institutional & float ~61% $5 Prudent million CAPITAL STRUCTURE repayment per Level Of Debt Shares outstanding 88 million year Fully Diluted 117 million 1. Goldcorp: 5 year, 6% note repaid $5M/yr with balloon payment at end of year 5 2. Goldcorp: 1 year, rolling, 3% note convertible at CDN$6 3. Estimated 5 year average after-tax cash flow based on Primero’s five-year plan. 6
  • 7. San Dimas Growth Profile Cash Flow Funded TSX:P 200 Estimated San Dimas Gold Equivalent Production1 (thousand gold equivalent ounces) 180 Sinaloa Graben 160 140 120 Central Block 100 80 60 40 Sta. Lucia 20 Sta. Rita Tayoltita 0 2010 2011E 2012E 2013E 1. Forecast production figures were calculated using the following metal prices: 2011: gold $1,400 per ounce; silver $24 per ounce; silver price received from Silver Wheaton $4.04 per ounce. 2012: gold $1,450 per ounce; silver $25 per ounce; silver price received from Silver Wheaton $4.08 per ounce. 2013: gold $1,270 per ounce; silver $21 per ounce; silver price received from Silver Wheaton $4.12 per ounce. 7
  • 8. 2011 Production Guidance Focused on Growth TSX:P 3 2011E Production: 15% increase Gold equivalent production 110,000 - 120,000 (gold equivalent ounces) Targeting gold reserves: 1 million oz Gold production 90,000 - 100,000 (ounces) Targeting throughput of 1,900 tpd Silver production 4.5 - 5.0 (million ounces) Grades expected to increase Gold grade 4.8 (grams per tonne) Development up 50%: Silver grade 250  $11.4 million or 8,900 metres (grams per tonne) 1 Cash cost – gold equivalent $550 - $570 Exploration doubled to $12 million: ($ per gold equivalent ounce)  54,000 metres diamond drilling – 30% more Cash cost 1,2 – by-product $350 - $370 than 2010 levels ($ per gold ounce)  3,800 metres exploration drifting – Ten-fold Capital Expenditures increase over 2010 levels $31 (millions) 1. Cash cost is a non-GAAP measure. 2. Cash costs (by-product) per gold ounce reported for San Dimas by Goldcorp Inc. are not comparable to Primero cash cost numbers due to certain inter-company transactions that are reversed for Goldcorp Inc.’s consolidated reporting. 3. 2011 forecasts assume an average gold price of $1,400 per ounce; an average silver price of $6.63 per ounce, as according to the silver purchase agreement the first 3.5 million ounces and 50% of the excess of silver are sold at $4.04 per 8 ounce and the balance is sold at spot, which is assumed to be $24 per ounce.
  • 9. Improved Silver Agreement Increased Revenue, Reduced Costs Old Agreement To 25 Years All silver sold at ~$4 for 25 years (19 years remaining) Amended Agreement – Anniversary August 6 First 3.5 million oz annual Ag production plus 50% of excess sold to SLW at ~$4 2010-2014 50% of annual Ag production above 3.5 million oz sold at spot First 6 million oz annual Ag production plus 50% of excess sold to SLW at ~$4 2015-LOM 50% of annual Ag production above 6 million oz sold at spot Increased Revenue1 Decreased Cash Costs1 1. BMO Capital Markets Research., August 2010. Gold Prices 2010: $1,188, 2011: $1,300, 2012: $1,250, 2013: $1,150, Silver Prices: 2010: $18.50, 2011: $21.00, 2012: $20.00, 2013: $17.00 9
  • 10. Improved Silver Agreement Tax Impact , Quarterly Volatility Remains Tax Impact Estimated Quarterly Variation In Revenues1 Primero currently pays tax on silver at spot  Gold price inc. 10%, 2011E after-tax cash flow inc. ~18-20%  Silver price inc. 10%, 2011E after-tax cash flow dec. ~4-6%  Gold & Silver price inc. 10%, 2011E after-tax cash flow inc.~14% Quarterly Volatility Silver threshold based on agreement anniversary August 6, not calendar year Silver:Gold Ratio 30 year historical silver:gold ratio 55:1 1 Increase San Dimas production: 2010: 4.5 million oz Ag, 2013E: 8.0 million oz Ag 2 Investigate all tax planning alternatives: Silver call options purchased as short term protection 3 Acquisition of additional operations 1. UBS Research, “Higher sales leads to a strong Q4 result”, February 2011. Assumes flat gold ($1,400/oz) and silver ($30/oz) 10
  • 11. San Dimas Solid Platform with expansion & exploration potential TSX:P QUICK FACTS SAN DIMAS Durango, Mexico OWNERSHIP 100% Dolores METALS Gold & Silver Mulatos Pinos Altos MINING Underground, cut and fill Ocampo MILL CAPACITY 2,100 tpd El Sauzal MINE LIFE 20+ years La Cienega Penasquito Durango Mazatlan RESERVES & RESOURCES (as at December 31, 2010) San Dimas Gold-Silver Mine DURANGO MEXICO Proven & Probable Reserves Tonnes (millions) Grade (g/t) Silver (g/t) Gold (Moz) Silver (Moz) Ventanas Exploration Property 5.9 4.7 332 0.9 62.9 DURANGO MEXICO Inferred Resources (exclusive of reserves) Tonnes (millions) Grade (g/t) Silver (g/t) Gold (Moz) Silver (Moz) 16.9 3.7 330 2.0 178.8 11
  • 12. San Dimas Large Area, Rich History TSX:P QUICK FACTS DEPOSIT High-grade, gold-silver epithermal veins, characterized by low sulphidation LAND 25,000 ha 12
  • 13. District Wide Potential Longitudinal Section TSX:P San Antonio Sinaloa Graben Central Block Tayoltita Block Arana Mined 1987-2002 Mined 2002-Current Mined 1975-2002 2011 EXPLORATION Hanging Wall West Block PRIORITY SW NE 3,000 m. 3,000 m. 2,000 m. 2,000 m. 1,000 m. 1,000 m. Source: San Dimas Geology Office Mineralization – Ore Bodies Extension of the Favorable Horizon 0 1 2 Favorable Horizon Potential K I L O M E T E R S 13
  • 14. Sinaloa Graben: Higher Grade & Wider Plan View Sinaloa Central Block Tayoltita Block Arana Hanging Wall San Antonio West Block Graben Dev Ag g/t Au g/t m Block 1. RAMP7-129W 1,115 10.30 2.75 RAMP8-129E 2,054 22.8 3.20 RAMP8-129E 1,449 14.0 4.20 7 DDH Ag g/t Au g/t m 2. TGS-S-22 958 6.81 8.56 SAN TGS-S-15 403 8.08 7.52 VICENTE 3. PIL 7-01 508 16.0 2.90 4. SOL-9-02 549 10.67 1.81 5. MAR-9-17 514 8.86 2.45 6 Santa Rita 6. RO-20-05 514 4.23 1.27 mine 7. A-25-217(1) 778 7.9 0.80 HW-4G-01B 302 8.7 0.60 5 3 4 TAYOLTITA LEGEND 2 TOWN & MILL 1 Ag-Au High Grade Trend San Antonio Proposed Tunnel mine Tunnel 2011 Tunnel done Vein N Fault Town 0 1 2 km Piaxtla River (Source: San Dimas Geological Office) 14
  • 15. Significant Exploration Upside Sinaloa Graben Key to Growth TSX:P Sinaloa Graben million ounce resource potential1  90% of resources added in 2010 from Sinaloa Graben (340,000 ounces) Higher Grade:  Average reserve grades of 4.8 g/t Au, 339 g/t Ag  Sinaloa Graben results show ~6.0 – 10.0 g/t Wider:  Current average mining width ~1.5m  Sinaloa Graben results show ~3.0 – 8.0m 1. San Dimas NI 43-101 Technical Report, March 2011 15
  • 16. Reserves & Resources Proven 90% Resource to Reserve Conversion Ratio TSX:P 2010 Results 2011 Objectives Gold & Silver Reserves up 3% Increase Gold Reserves to 1 million ounces Gold Resources up 23%, Silver up 16% Increase Central Block resources at depth High-grade confirmed at depth in Central Block Double resources in Sinaloa Graben New high-grade discoveries in Sinaloa Graben Identify economic widths in Arana San Dimas Gold Reserve Replacement (2003-2010) 1,000,000 Reserve Additions Production 900,000 800,000 700,000 600,000 Ounces 500,000 400,000 300,000 200,000 100,000 0 Initial 2003 2004 2005 2006 2007 2008 2009 2010 End 1. San Dimas NI 43-101 Technical Report, March 2011 16
  • 17. Infrastructure Optimization & Expansion Plan TSX:P INCREASE MINE DEVELOPMENT Key to production growth OPERATE MILL AT DESIGN CAPACITY Current:~1,800 tpd, Design: 2,100 tpd EXPAND MILL TO 2,500 TPD BY 2013 Mill: 2,100 tpd, Leach: 2,500 tpd POTENTIAL EXPANSION BEYOND 2,500 tpd 2011 review 17
  • 19. Superior Production & CFPS Growth TSX:P 2010 to 2013E Production Growth1 2010 to 2013E CFPS Growth 2 160% 450% 140% 400% 120% 350% 300% 100% 250% 80% 200% 60% 150% 40% 100% 20% 50% 0% 0% Jaguar Jaguar Gammon Alamos Alamos Gammon Primero Primero New Gold New Gold Minefinders Minefinders 1. Estimates based on street estimates (Primero based on company estimates); 2. BMO Capital Markets Research (Jaguar based on consensus), January 31, 2011. 19 Note: As of Jan 31, 2011
  • 20. 2011 Objectives TSX:P 1 2 3 4 5 6 7 8 20
  • 21. Why Primero? TSX:P Established Mexican gold and silver producer Doubling San Dimas production by 20131 Located in pro-mining jurisdiction Proven management team & board Long life, low cost asset 20+ year mine life Cash costs trending below $450 AuEq oz1 Cash flow funded growth platform ~$90 million after-tax cash flow2 Attractive valuation – re-rating opportunity 1. See Primero Press Release of January 17, 2011. 21 2. Estimated 5 year average after tax cash flow based on Primero’s five year plan.
  • 23. Transaction Overview TSX:P 1. $489 million structured as:  $220 million in cash  $159 million in shares of Primero (~36% ownership)  $50 million 5-year 6% note ($5 million annually plus final balloon payment at the end of year 5)  $60 million 1-year 3% note convertible at C$6.00 per share Note: Transaction structure reflects the working capital adjustment completed during Q4 2010. 23
  • 24. Strong Management & Board TSX:P Wade Nesmith | Executive Chairman Robert A. Quartermain Founder of Mala Noche Former President, Silver Standard Director of Vista Gold Corp. and Canplats Resources Founding and current director of Silver Wheaton, Chairman of Geovic Mining and Grant Edey Selwyn Resources Director of Breakwater Resources and former director of Queenstake Resources, Santa Cruz Gold Former CFO, IAMGOLD Joseph F. Conway | President & C.E.O. Former CEO, President and Director of Timo Jauristo IAMGOLD from 2003 to 2010 EVP, Corporate Development, Goldcorp Rohan Hazelton Eduardo Luna | President, Mexico VP, Finance, Goldcorp Former Chairman and CEO of Silver Wheaton, David Demers Executive VP of Goldcorp and Luismin S.A. de Founder, CEO and Director Westport Innovations C.V. (San Dimas) and President of Mexican Director of Cummins Westport and Juniper Engines Mining Chamber and the Silver Institute Michael Riley Chartered accountant with more than 26 years of accounting experience Audit committee chair B.C. Lottery Corporation 24
  • 25. 2010 Results TSX:P 1 2 3 4 5 6 7 8 1. Primero raised $285 million on July 20, 2010, currency exchange fluctuation resulted in $292 million in proceeds being delivered on August 6, 2010 25
  • 26. 2010 Financial Results First Full Quarter of Production Generated a Profit TSX:P (US$ thousands, except per share amounts) Q4 2010 Q4 2009 2010 2009 Revenues 41,425 - 60,278 - Earnings from Operations 13,250 - 14,145 - Net earnings 1,827 (333) (34,487) (783) Earnings (loss) per share 0.02 (0.11) (0.93) (0.36) 1 Adjusted net earnings (loss) 3,069 (333) (7,357) (783) 1 Adjusted earnings (loss) per (0.11) (0.20) (0.36) 0.03 share Operating cash flow before 1 14,044 (318) 11,697 (660) working capital changes 1. Adjusted net earnings, adjusted net earnings per share and operating cash flow before working capital changes are non-GAAP measures. Refer to the 2010 fourth quarter MD&A for a reconciliation to GAAP. 26
  • 27. Sinaloa Graben Higher Grade and Wider Widths Sinaloa Graben Tunnel: Julieta - Sinaloa Norte vein (San Salvador system) Sinaloa Mine Sinaloa Graben San Salvador ( Central Block ) (San Antonio Area) 7-660 L NE SW Ag g/t Au g/t m 189 3.13 1.24 1,000 m 1,000 m 500 m 500 m San Luis Tunnel Elev San Luis Tunnel Santa Anita Tunnel 0m 0m DDH TGS-S-22 DDH TGS S-15 DDH TGS 7-17 Sinaloa Norte Intercept Sinaloa Norte intercept Julieta intercept Ag g/t Au g/t m Ag g/t Au g/t m Ag g/t Au g/t m 958 6.81 8.56m 403 8.08 7.52 481 3.73 2.22 0 500 1000 Explanation Drilling Plan 2011 Proven Ore Drifting Plan M E T E R S Probable Ore Drifting Plan 2011 Probable Ore by Drilling Drifting Done 27
  • 28. Sinaloa Graben, Robertita and Nancy Vein Systems Sinaloa Graben Robertita Vn Nancy Vein System Robertita Vn W DDH Ag gr/t Au gr/t m E ROB 12-03 160 5.81 3.50 ROB 7-34 344 6.80 3.64 ROB 7-36 472 8.04 2.09 Sinaloa Graben ROB 16-03 519 8.67 1.81 Cross Cut ROB 16-07 649 13.25 1.60 Krc L15-826W San Fernando Favorable Tunnel Zone Krc Pilar Mine Kpa Kpa 600 m 600 m San Luis Tunnel Elev San Luis 400 m 400 m Tunnel ROB 7-34 & 36 Santa Anita Kpr Krs 200 m 200 m Guamuchil Tunnel DDDH TGS-S-07 (Project) Piaxtla Robertita Vein Cut Granodiorite Kpr Piaxtla Ag Au m Granodiorite 191 4.17 2.24 Explanation Drilling Plan Proven Ore Drilling Plan 2011 DDH ROB 16-08 L21-843E Probable Ore Drifting Plan Robertita Vein Cut Drifting Plan 2011 Ag Au m 0 500 1000 m Probable Ore by Drilling Level Done 607 4.18 0.96 Stope 28
  • 29. NW Santa Lucia SE DDH TGS-S-22 TGS-S-15 Zacatera- Rosario Sinaloa Norte Vn Sinaloa Norte Vn Julieta Ag Au m Ag Au m San Salvador 958 6.81 8.56m 403 8.08 7.52 1,000m 1,000m Limoncito Ramp S Graben Tunnel 500m 500m DDH TGS-S-07 Robertita Vn Ag Au m 191 4.17 2.24 DDH TGS-7-17 San Dimas Creek Roberta Julieta Vn Ag Au m TGS-S-02 y 03 481 3.73 2.22 Limoncito Ramp Pilar TGS- S-04 & 05 Mine Scale TGS-S-07 TGS-7-17 0 500m Sinaloa Mine Cumbres Rhyolite (Trc) Faults Cumbres Rhyolite (Trc) Productive Andesite (Kpa) TGS-S-22 TGS-S-15 Drilling Plan Drifting Plan 2011 Rhyoilite (Kpr) Drifting Plan Buelna Andesite (Kba) Socabon Rhyiolite (Krs) Drifting Done Piaxtla Intrusive (Ktpcg) 29
  • 30. PRIMERO MINING CORP. Richmond Adelaide Centre INVESTOR RELATIONS 120 Adelaide Street West, Suite 1202 Tamara Brown Toronto, ON M5H 1T1 Vice President, Investor Relations T 416 814 3160 F 416 814 3170 T 416 814 3168 TF 877 619 3160 tbrown@primeromining.com 2011 – Focused on Growth