Pretivm Reports Second Quarter 2016 Results - Seite 2

Construction of the mill building continues to progress with the pouring of the concrete slab for the surge bin and footings and pedestals for the SAG and ball mills and other mill equipment.

The standing of the mill building structural steel and the installation of roof decking and cladding is underway. The enclosure of the mill building remains on schedule and is expected to be completed in the third quarter. Prior to enclosure of the building, internal structural steel and mechanical equipment installation will commence. The SAG and ball mills are scheduled to arrive in August.

The prefabricated modules for the 330-person camp have been installed and structural interconnection work, electrical installation, communication wiring, and water and sewer piping continue throughout the complex. The first two dorms and kitchen facility have been completed while work progresses on the third dorm.

Collaring of the main portal access for the Valley of the Kings has commenced and earth works for the portal building foundations are underway. The portal will serve as the primary access point to convey the gold ore from the underground crusher to the mill.

Underground development remains on schedule and crews are advancing at a rate of over 25 meters a day. Current underground activity at the Valley of the Kings includes excavation of the main access ramp, and development of the 1260, 1290, 1300, 1320, 1350 and 1380-meter levels.

Underground work is also focused on the excavation of headings for infrastructure including the conveyor ramp, conveyor transfer tower, paste fill booster pump station and Vent Raise #2.

Transmission line construction is ongoing with the first series of towers erected using a high-capacity air crane helicopter. The connection of the transmission line to the BC Hydro power grid is expected in the fourth quarter.

With the US$540 million construction financing, available cash on hand and the completion of the equity offering of US$146.2 million, the US$696.8 million estimated development cost of the Brucejack Project is fully funded.

2015/2016 Underground Infill Drill Program Completed

The Valley of the Kings underground infill drill program, which had commenced in 2015, was completed in May 2016. The program was designed to target stope areas in years 1 through 3 of the current mine plan (1320-meter level to 1200-meter level) and was subsequently expanded to include extensions of Domain 20 which are adjacent to areas planned to be mined in the early years of the 2014 Feasibility Study Mine Plan.