WHY CANDENTE COPPER?

DNT:TSX

CANDENTE HIGHLIGHTS:

• Canariaco Included in Goldman Sachs 84 Top Copper Projects Worldwide
• Cañariaco in Lowest Quartile of Copper Industry Production Costs
• 10th largest late-stage copper resource in the world and 6th highest in grade
• Higher grade throughput of 0.54% CuEqMill Feed Grade during first 3 years
• Rising Copper and Gold Prices Impacting 2011 PFS
• Fortescue Metals Group Ltd. owns 19.92% interest
• Joint technical committee created to identify optimum strategy for Cañariaco development
• Engaged Leading Engineering firm Ausenco to Develop Small, High Grade Start Up
• NPV of US$1.01B with CapEx of $1.04
• Cash operating cost of US$1.28/lb of copper, Payback of pre-production capital in 7.1 years
  • The NPV increases to US$1,833 M, with an IRR of 21.9% and payback of 4.5 years when using a copper price of US$4.50/lb, US$1,650/oz Au and US$21.50/oz Ag

Project Highlights:

Cañariaco Norte is a 100% owned feasibility-stage porphyry copper deposit

• A single, contiguous, open-pit mineable deposit of 7.5B pounds Measured and Indicated,
• 1.4B pounds Inferred Porphyry Copper Deposit
• Annual production of 262,000,000lbs of copper, 39,000 oz gold & 911,000 oz silver over initial mine life of 22 yrs(@ 95,000 tpd)

2022 PEA

2022 PEA:

Based on projected average annual metal production of 173 million (“M”) pounds (“lb”) (78,543 tonnes) copper, 31,395 ounces (“oz”) gold (“Au”), and 703,588 oz silver (“Ag”) for 28 years and an initial capital cost estimate (“CapEx") of $1.04 B, the Cañariaco Norte project has an after-tax net present value (“NPV”) of US$1,010 M, and after-tax internal rate of return (“IRR”) of 16.3% using a copper price of US$3.50 /lb, US$1,650/oz Au, US$21.50/oz Ag and a discount rate of 8%.

The NPV increases to US$1,833 M, with an IRR of 21.9% and payback of 4.5 years when using a copper price of US$4.50/lb, US$1,650/oz Au and US$21.50/oz Ag. The C1 cash operating cost (*see below under Operating Costs) is estimated to be US$1.28/lb of copper.   The forecast strip ratio is 0.66.

Pre-Feasibility Study

• NPV of US $922M and IRR of 17.3% (using US$2.25 copper and an 8% discount rate)
• Payback of preproduction capital in 4.4 years (after-tax)
• Copper Production of 262,000,000 pounds per year
• Initial Mine life of 22 years+
• Throughput rate of 95,000 tonnes per day
• Operating costs of US$0.988 per pound of copper (including onsite/offsite costs, taxes and byproduct credits)
• Minimal infrastructure required, excellent locations for all site facilities, close to existing highway (42km away) and power grid (57km away) & abundant water at site
• Very strong community & regional support

The Cañariaco Norte Copper Project

• Canariaco in Top 80 Deposits slated for Development according to Goldman Sachs
  • 42 in South America –Cañariaco Included
  • Cañariaco in Lowest Quartile of Copper Industry Production Costs
• Large scale porphyry copper–gold-silver deposit in Northern Peru
• 7.5B pounds Measured and Indicated, plus 1.4B pounds Inferred Porphyry Copper Deposit
• Deposit and Scope of Project Development well defined by Pre-Feasibility Studies in 2011
• Annual production of 262,000,000lbs of copper, 39,000 oz gold & 911,000 oz silver over initial mine life of 22 yrs(@ 95,000 tpd)
• Operating costs of US$0.988 per pound of copper (including onsite/offsite costs, taxes and byproduct credits
• Strong Government support

Resource and Mine Plan

123 Million tonnes @ 0.58% Cu Eq (0.4% Cu cutoff) Measured

752 Million tonnes @ 0.52% Cu Eq (0.3% Cu cutoff) M & Indicated

1.0 Billion tonnes @ 0.46% Cu Eq(0.2% Cu cutoff) M & I

Current Mine Plan 728.2 Million tonnes @ 0.46% CuEqMill Feed Grade

• Higher grade throughput of 0.54% CuEqMill Feed Grade during first 3 years

Canariaco Price Sensitivities Chart

• Rising Copper and Silver Prices dramatically Project Economics
• Based on 2011 Pre-Feasibility Progress Report

Canariaco Sur, Quebrada Verde and Canariaco Norde all within 5km trend and share infrastructure

Cañariaco Sur - A New Cu Au Porphyry System

• New, large porphyry copper-gold-silver deposit
• Open in three directions and to depth
• Management is confident that Sur has excellent potential to become a mineable deposit

Exploration drilling at Cañariaco Sur has confirmed the presence of a large copper-gold-silver porphyry system with long intercepts of economic type grades within open pittable depths.

The mineralization is open in three directions and at depth. Thirteen wide spaced holes(200-300 metres) have Cu/Au/Ag mineralization from surface to 500 meters depth.

These holes, along with five holes from previous drilling confirm the presence of a large system. Interestingly, based on the drilling completed to date at Sur, there is extremely low arsenic in the system.

Due to the close proximity of Sur to Cañariaco Norte(less than 2 kms) and the possibility to share use of facilities planned for Cañariaco Norte, management is confident that Sur has excellent potential to become a mineable deposit, thereby increasing the potential size and scope of the overall project.

Quebrada Verde - 3rd Porphry Exploration target

• Excellent copper-gold soil geochemistry and
• strong coincident geophysical anomalies

Located 3.5km south of the Cañariaco Norte deposit and immediately south-southwest of Cañariaco Sur, Quebrada Verde is the third porphyry target with excellent copper-gold soil geochemistry and strong coincident geophysical anomalies, such as large IP chargeability high centered on a resistivity anomaly over area of 0.8km by 2.0km.

Candente Copper Links:

• Cañariaco Norte Copper Project Pre-Feasibility Study Progress Report
• NI 43-101 Technical Report for the Cañariaco Norte Copper Project Pre-Feasibility Study Progress Report