Development - Torex Gold Resources Inc.

TSX: TXG; TXG.WT.A
Morelos Project Development
Jason Simpson, P.Eng.
March, 2013

Safe Harbour Statement
2
This presentation contains "forward-looking information" within the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to, information regarding future exploration and development plans
concerning the Morelos gold project, including expected drilling results, updated mineral resource and reserve estimates,
completion of the 2012 drill program and technical studies, obtaining permits and licenses, project commissioning, executing
land agreements and negotiating road allowances, and the Company’s feasibility study (including realization of estimated mineral
reserves; expectation that the Morelos gold project will be profitable with positive economics; recoveries; grades; annual
production; receipt of all approvals; parameters and assumptions underlying mineral resource and reserve estimates and
financial analysis; and gold prices). Generally, forward-looking information can be identified by the use of terminology such as
"plans", "expects", "estimates", "intends", "anticipates", or "believes" or variations of such words or state that certain actions,
events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is
subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of
activity, performance or achievements to be materially different from those expressed or implied by such forward-looking
information, including, without limitation, risks related to: unexpected events and delays impacting completion of the 2013 drill
program, technical studies and updated mineral resource and reserve estimates; exploration results not being consistent with
expectations; required permits, licenses and approvals not being obtained on a timely basis; estimated mineral reserves and
annual production not being realized; parameters and assumptions underlying mineral resource and reserve estimates and
financial analysis being incorrect; and risk factors disclosed in the Company’s annual information form and management’s
discussion and analysis for the year ended October 31, 2012. Forward-looking information is based on reasonable assumptions,
estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions
and expected developments, as well as other factors that management believes to be relevant and reasonable in the
circumstances at the date such statements are made. Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in forward-looking information, there may be other factors
that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place
undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
Additional technical information is contained in the Company’s feasibility study entitled “Morelos Gold Project, Feasibility Study,
Form 45-106F1 Technical Report, Guerrero, Mexico”, dated September 4, 2012 (the “Feasibility Study”). The technical
information contained in this presentation is based upon the information contained in the Feasibility Study and prepared by or
under the supervision of the authors of the Feasibility Study, who are each qualified persons for the purposes of National
Instrument 43‐101.

Site Tour Presentation
Goal
To give you an overview of Project Development
work; the plan and the path forward
Agenda
‣ Project overview
‣ Construction Plan
3

A look at what we will build
• Video
4

Overview – Morelos Development
‣Feasibility Study completed
‣Work continues
‣ EIA permit submitted
‣ Detailed engineering underway
‣EPCM and Owners Team in place
‣Preparation for construction underway
‣Long Lead time items ordered
5

Where we have been- Work Completed
Morelos Development
‣ March 2011 - Scoping studies completed on mining
method for El Limon, Open Pit Mining selected
‣ April 2011 – Internal update of resource model
completed, model incorporated all resource drilling to
February 2011
‣ June 2011 – Preliminary designs of the pits, dumps and
mine haul roads completed using internal resource
model
‣ August 2011 – Decision made to complete full feasibility
6

Decisions Made - Work Completed
Morelos Development
‣ January 2012 – Trade off study on El Limon ore
haulage, Rope Con vs Truck - Rope Con selected
‣ June 18 th 2012 – Technical Report released for updated
resource for Guajes and El Limon deposit
‣ July 2012 – Received water concession from CONAGUA
‣ 5 million m 3 per year
‣ 3 wells developed
‣ Sept 4 th 2012 – Feasibility Results released
‣ October 23 rd 2012 - C$380 Million Bought Deal Financing
7

Decisions Made - Work Completed
Morelos Development
‣ January 15 th 2013 - Appointment of Senior Operations
Team
‣ February 25 th 2013 - Torex Executes Engagement Letter
for US$250 Million Project Finance Facility
8

9
El Limon and Guajes Resource
effective date June 11, 2012

Notes to accompany Mineral Resource table
• Mineral Resources are not Mineral Reserves until they have demonstrated
economic viability
• Mineral Resources are reported above a 0.5 g/t Au cut-off grade
• Mineral Resources are reported as undiluted; gold grades are contained grades
• Mineral Resources are reported within a conceptual open pit shell
• Mineral Resources were developed in accordance with CIM (2010) guidelines
• Mineral Resources are reported using a long-term gold price of $1,400/oz and
silver price of $26/oz
• Mining costs used are estimated at $1.65 per tonne and processing costs are
estimated at $11.51 per tonne. General and administrative costs were
estimated at $0.98 per tonne
• Gold recoveries are dependent on grade and rock type and have a weighted
average recovery of 87.33%.
• Silver metallurgical recoveries by rock type show a weighted average of 33%.
• Assumed pit slope angles range from 32° to 51°
• QP for El Limon is Edward J. C. Orbock III, RM SME and QP for Guajes is Mark
Hertel, RM SME
10

Reserves
85% of M&I Resource was converted to reserve...
11
...more can be converted with additional engineering

Financial Outcomes
All $ Are
U.S. Millions
Net Cumulative
Cash Flow
After Tax NPV
@ 5% DCF
US$ 1276 / oz.
Base Case
US$ 1500 / oz. US$ 1750 / oz. US$ 2000 / oz.
$1,558 $2,121 $2,747 $3,374
$900 $1,262 $1,679 $2,096
After Tax IRR (%) 24.2% 28.9% 34.6% 39.8%
Capex Payback
(Years)
3.6 3.2 2.8 2.5
2017 EBITDA $276 $336 $417 $497
12

Capital Costs
Capex required up to
Commercial Production
US$
Capex required after
commercial production
US$
Expenditures (With Contingency)
Plant & Infrastructure 452 M 15 M
Mine Access Roads 27 M 2 M
Initial Mine Equipment Fleet 48 M 46 M
Mining Ore & Waste
65 M
Processing Ore includes G&A
38M
Royalties, and Treatment
3 M
Owner’s Cost
42 M
Sub-total 675 M 63 M
Credits
Metal Value Produced
(includes 81,000 oz Au)
(123 M)
Total net of revenue credits
Sustaining Capex
Total Capex after commercial
production
552 M
23 M
86 M
13

Production Summary
Summary of the annual mine production plan
Ore
mined
Ore
milled
Head
Grade
Gold
Production
Head
Grade
Silver
Production Waste Strip
Years (Mt) (Mt) (Au g/t) (k oz) (Ag g/t) (k oz) (Mt) ratio
2013 4.53 NA
2014 0.26 1.43 1 2.50 1 11.00 41.9
2015 2.13 2.28 2.01 128 4.58 110 13.01 6.1
2016 3.66 3.75 2.32 246 6.63 267 25.57 7
2017 5.19 5.04 2.36 333 6.3 345 29.07 5.6
2018 4.88 5.04 2.22 316 5.54 293 32.46 6.7
2019 5.20 5.04 2.33 324 3.69 185 31.33 6
2020 5.06 5.04 2.43 345 3.48 183 31.06 6.1
2021 5.04 5.04 2.34 332 3.08 163 31.14 6.2
2022 4.94 5.04 3.07 434 3.74 191 26.50 5.4
2023 5.12 5.04 3.47 494 3.96 204 19.51 3.8
2024 4.97 5.04 2.97 424 3.23 168 12.99 2.6
2025 2 1.22 1.31 2.9 107 2.79 38 2.07 1.7
2026 2 0.12 - - - - - 0.71 6.1
2027 2 0.41 0.52 3.68 54 7.64 49 0.88 2.1
2028 2 0.57 0.58 2.44 39 4.35 30 0.59 1
Total 48.77 48.77 2.61 3,573 4.35 2,227 272.40 5.6
14

Operating Costs
Cash costs net of Ag revenue
(Includes 2.5% royalty to the government)
Mining cost per tonne (ore and waste)
Mining cost per tonne to the Mill
(((Strip ratio 5.4 avg.) + 1) X $1.90)
Milling cost per tonne milled
G&A per tonne milled
(Includes land lease payments)
$421 / oz
$1.90 / tonne
$12.16 / tonne
$14.19 / tonne
$2.92 / tonne
(Cost estimates for all of the above start at the declaration of
commercial production and go through to the end of mine life,
excluding the tail)
15

Pit Slope Design Parameters
Sector
Max. Slope
Height (m)
Max. Stack
Height (m)
Max.
Interramp
Slope Angle
(°)
Max.
Overall
Slope
Angle
(°)
Bench
Face
Angle
(°)
Bench
Height
(m)
Berm
Width
(m)
El Limón – NW,
East and South
El Limón - La
Flaca Fault Zone
380 126 (6x21)* 55 51 75 21 9.0*
150 126 (6x21)* 47 42 65 21 9.8*
El Limón – NN 250 84(6x14)* 47 40 70 14 8.0*
Guajes- La
Amarilla Footwall
Guajes - La
Amarilla Hanging
Wall
400 126 (6x21)* 55 51 75 21 9.0*
150 84 (6x14)* 38 35 58 14 9.2*
*A minimum 20 m stepout or “geotechnical berm” should be designed between bench stacks. The 20 m
minimum width includes the normal 9 m berm width
16

Post Feasibility work completed
‣ Senior Operation Management team in place
o Chief Operating Officer – Jason Simpson
o General Manager – Felipe Martinez
o Mill Manager – David Alduenda
o Mine Manager – Alfonso Alvarez
‣ M3 selected as EPCM
o Detailed engineering underway
o 20+ years building in Mexico
‣ Pit haul road and access road contractors selected
17

18
Path Forward
Project De-risking
‣ Completed project de-risking
o Land leases obtained
o Water concession granted
o Positive Feasibility
o Agreement for village relocation
‣ Next items
o Schedule
o Cost
• EIA (MIA) and ETJ permits expected
• Dozer access trails
• Haul road/access roads
• Scope, unit cost, and schedule management process established
• Experienced construction management team in place
o Village relocations
• Urban concept design complete and tender to begin
o Completion of Environmental Social Impact Assessment
• Baseline field work well underway

19
What we will build

Complete Project Map
Main Project
Area
Note: Figure courtesy of M3, August 2012.
20

Last day of operation
Looking South East
El Limon Pit
Guajes Pit
Tailings Dry Stack
Rope Con
Load out
Waste Rock
Process Plant
Water Control
Structures
Rope Con
Dump
21

22
Guajes Early Mining Phases

23
Guajes Ultimate Pit

El Limon Ultimate Pit
NN Pit cause of
production tail
24

25
Rope Con – View along center line

26
Rope Con

27
Rope Con

28
Mill Design (A simplified flow sheet)
Cyanide Leach , Carbon-in-Pulp Recovery

29
Mill Design (The actual Flow Sheet)
Cyanide Leach , Carbon-in-Pulp Recovery

Metallurgical Recoveries
Ore Type
Average
Au grade
g/t
Extraction Equation
Extraction
%
Prograde (Skarn)(+Gouge) 2.93 y= 2.2771*ln(x) + 87.057 89.48
Retrograde (skarn) (+Mass Sulfides) 3.55 y= 5.4671*ln(x) + 77.314 84.24
Oxides (Oxide + Marble) 2.78 y= 3.1185*ln(x) + 82.235 85.42
Breccia 3.43 y= 15.453*ln(x) + 48.282 67.33
Hornfels (+Vein Material) 1.42 y= 90 90
Intrusive 1.61 y= 1.3912*ln(x) + 82.376 83.04
Total 2.61
Weighted Average on
Contained Gold =
87.40
30

Relocation of villages of
La Fundicion and El Limon
31

Village Relocation
Current Status
‣ Compensation agreement
‣ Location selected
• Urban concept completed
• Individual lots selected
‣ Design complete
• 3 Home styles
• Community buildings
• Community services
‣ Tender Package
‣ Completion date of Dec 2014
32

Overview - Morelos Development
Summary
‣Mining Methods
• All Open Pit
• Guajes and El Limon deposits
• Ore haulage for El Limon via Rope Con
‣Process Plant
• Cyanide Leach , Carbon-in-Pulp Recovery
‣Tailings Disposal
• Dry Stack Tailings
33

Overview - Morelos Development Team
Feasibility Study
• Work lead by Dawson Proudfoot, Project Manager Morelos Development
• M3 Engineering of Tucson, Arizona
– Lead consultant, responsible for overall document
– Directly responsible for process and infrastructure design
• AMEC Mining & Metals Consulting of Sparks, Nevada
– Responsible for Geology and Resource
• SRK Canada of Toronto, Ontario
– Mine design
• AMEC Earth and Environment Consulting Mississauga, Ontario.
– Responsible for Waste Management design
• Golder Associates
– Environmental Social Impact Assessment
• IDEAS, Hidrogeologos Consultores of Hermosillo, Sonora
– Water Supply, confirm and secure
34

Timelines to Production
Task
2012 2013 2014 2015
Resource update for El Limon and Guajes
South of river drilling
Exploration/Resource drilling across Property
Long term lease agreements
Bankable Feasibility Study
Permitting
Construction decision
Construction
Initial Production
35

36
Development Area
Looking South

Development Area
Looking South East
El Limon
Guajes
Plant
37

Project General Arrangement
Design Consideration
Nuevo Balsas
El Caracol Reservoir
Rio Cocula
Communities
• Nuevo Balsas
• La Fundicion
• El Limon
• Balsas Sur
Terrain
• Front Ridge Line
• El Limon Ridge
La Fundicion
Water Bodies
• Rio Balsas
• Rio Cocula
• El Caracol Reservoir
El Limon
Balsas Sur
Rio Balsas

Project General Arrangement
Pit locations
Guajes Pit
El Limon Pit

Project General Arrangement
Dump Locations
Tailings
Disposal
Guajes East
Disposal
Guajes North
Disposal
Guajes West
Disposal
El Limon Disposal
Guajes South
Disposal

Project General Arrangement
Infrastructure Locations
Power Line
Existing &
Project
Plant Site
East Service
Road and water pipeline
Camp along East Service
Road
Well field located in Atzcala

TSX: TXG, TXG.WT.A
For further information:
Gabriela Sanchez, VP Investor Relations
email: gabriela.sanchez@torexgold.com
Mobile: (416) 357-6673
www.torexgold.com