Daily Letter | 1 22 August 2014______

Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX | CF. : LSE)

The recommendations and opinions expressed in this research report accurately reflect the Investment Analyst’s personal, independent

and objective views about any and all the Designated Investments and Relevant Issuers discussed herein. For important information,

please see the Important Disclosures section in the appendix of this document.

Castle Mountain Mining Company Joe Mazumdar - Canaccord Genuity Corp. (Canada)

jmazumdar@canaccordgenuity.com 1.604.643.0272

Lee Edwards - Canaccord Genuity Corp. (Canada)

l.edwards@canaccord.com 1.604.643.7785

CMM : TSX-V : C$0.77

SPECULATIVE BUY

Target: C$1.30

COMPANY STATISTICS:

52-week Range: 0.35 - 1.10

Return to target %: 69%

Avg. Daily Vol. (000s): 157.8

Market Cap (M): C$57.5

Shares Out (M): 71.9

Shares out fully diluted:

(M): 81.5

LT Debt (M): 4.3

Working Capital (M): 8.19

FYE: Dec

Website: castlemountainmining.com

EARNINGS SUMMARY:

FYE Dec 2013A 2014E 2015E

Production 000oz: - - -

Revenue (M): - - -

Op CF (M): (6.2) (7.0) (7.3)

Inv CF (M): (0.1) (0.1) (62.3)

Fin CF (M): 4.9 5.2 161.8

Cash (M): 4.8 2.9 95.0

SHARE PRICE PERFORMANCE:

Source: Interactive Data Corporation

COMPANY DESCRIPTION: CMM is focused on the development of a permitted OP,

predominantly HL gold project in California that was a

former producer (1992-2001, Viceroy Resources). They

have progressed on a de-risking path with a resource

update (Q4/13) and a PEA (Q2/14). We anticipate further

de-risking (geotech, metallurgy, hydrogeology) leading to

a feasibility study by Q1/15. All amounts in C$ unless otherwise noted.

Metals and Mining -- Exploration and Development

SITE VISIT CONFIRMS WORK

PROGRAM FOR UPCOMING

FEASIBILITY STUDY (Q1/15)

Investment recommendation

We completed a site visit to the Castle Mountain Mine in San Bernardino

County, California to confirm the Phase 2 work program going forward

that seeks to resolve some of the opportunities and de-risk some of the

drawbacks with the various scenarios from the April 2014 PEA. The

Phase 2 program including a 30-hole (10,000 m) drill program will

inform the upcoming feasibility study due in Q1/15 and include

metallurgical samples (5 PQ holes in zones targeted early in the mine

plan) that will incorporate new ore domains previously unexploited. We

maintain our Speculative Buy rating and our C$1.30 target price.

Investment highlights

Results from three holes of Phase 2 targeting areas of known

mineralization for the metallurgical test program were released

including 102.1 m grading 7.46 g/t Au (downhole depth of 94.2 m)

drilled at the JSLA pit, which is considered to be part of the initial

phase of potential mining. Cyanide solubility tests on the high grade

results indicate the potential for good recoveries with the high grade

samples.

We expect that their infill drill program will also advance the

geological interpretation while attempting to lower the strip ratio.

Geotechnical test work, we believe, will support a higher angle

(>48º) which may lower strip ratio. A hydrology study is critical to

gauge the water capacity to meet the demand of the planned

throughput. Finally, work will also include mine infrastructure

(power, access roads), environmental, permitting and mine closure

with an EPCM schedule.

Daily Letter | 2 22 August 2014

Valuation

Our one-year, risk-adjusted target of C$1.30 is derived predominantly from the Castle

Mountain open pit, heap leach project (C$1.31, NPV@7%, ~C$235 M, P/NPV 0.9x) where

the company completed a PEA (April 2014, RPA) and is working towards a feasibility study

(Q1/15). We continue to model the company as a takeover option that is fully financed to

begin production at a 6.4 Mt/y rate at the open pit, heap leach Castle Mountain gold

project. We model the option to be triggered (2017) after it comes into production

(H2/16E).

After further adjusting for positive balance sheet items (Dec 2015, C$0.04) and negative

Corporate adjustments for G&A and interest expense (C$0.04, we arrive at our target price

of C$1.30. Our financially diluted share count is 161.2 M after accounting for future

modeled financing assumptions and in the money option and warrants.

Risks

All other factors being equal: Our sensitivity analysis to exogenous risks such as gold price

and discount rate indicates at the generic NPV@5% level (200 bps lower), our target price

would be 32% higher (C$1.72) and at a higher long-term price (+10%, LT US$1586), our

target would increase by 60% to C$2.07. The combination of a lower discount rate and a

higher LT gold price would lift our target 102% to C$2.63. On the downside, a 10% drop in

our long-term gold price (LT US$1298) would drop our target by 60% to C$0.52, hence the

company is very sensitive to gold price assumptions.

On the execution and technical side, the principal risks of the April 2014 PEA (RPA) include

the high strip ratio (6.8:1, geotechnical studies and more drilling required), hydrogeology

(water availability for the throughput range envisaged 6.4 to 8.1 Mt/y which is higher than

the previous throughput rate of 3.6 M short tons per year) and metallurgical recoveries

(78%) as 50% of ore domains are less well understood with respect to potential recoveries.

Although the company has the key Mining and Reclamation permit required for operation

but other permits are still required including emissions and water. Our modeled mine plan

requires extending the permit for disturbance beyond its current boundaries but within the

approved EIS limits.

Financing risk has been mitigated somewhat with the July 2014 financing (C$5.75 M of

gross proceeds) which provides the funds to advance the test work leading to a feasibility

study (Q1/15E). Also a significant amount of financing (debt and equity) needs to be

sourced for the development of the plan of operations (beginning at 6.4 Mt/y in H2/16). We

continue to model additional equity financings (2 tranches, C$0.80-0.90, 2015) for gross

proceeds for C$70 M combined with a debt (C$65 M, 5 years, 7%, H1/15) and a lease

(C$30 M, 5 years, 6%, H2/15) facility.

Daily Letter | 3 22 August 2014

Figure 1: Castle Mountain Mining Co. – Tear sheet

Castle Mountain Mining Co. (CMM : TSX-V | Speculative buy, C$1.30)

Last $0.77 per share

August 22, 2014

Company summary

Abridged financial statements (C$, million) & production (koz)

2013A 2014E 2015F 2016F 2017F

Payable gold (koz) - - - 38.7 98.7

Revenue - - - 57.5 145.8

Operating expenses - - - (49.3) (113.1)

EBITDA (9.4) (7.5) (5.0) 2.4 28.7

Depreciation (0.0) (0.0) - (17.2) (28.5)

Interest - - (2.3) (6.7) (6.4) CG metal price and FX assumptions

Net income (9.4) (7.5) (7.3) (21.5) (6.2) Dec 31 FYE 2014F 2015F 2016F 2017F L-T

Operating CF (6.2) (7.0) (7.3) (4.2) 22.3 Gold Price (US$/oz, rounded) 1,308 1,331 1,356 1,367 1,442

Investing CF (0.1) (0.1) (62.3) (66.7) (12.4) FX (C$/US$) 0.91 0.93 0.92 0.93 0.93

Financing CF 4.9 5.2 161.8 2.3 (4.7)

Net CF (1.4) (1.9) 92.1 (68.7) 5.2 Capital structure

Cash & equiv 4.8 2.9 95.0 26.4 31.5 Shares O/S (mln) @ Jun-14 71.8

Valuation Ops & Wts O/S

Development Asset (C$M) p/s, C$ Multiple p/s, C$ Warrants

Castle Mtn. Mine NPV @ 7% (2016 start-up) 235.1 1.45 0.9x 1.30 Options 9.7

Balance Sheet December 31, 2014 (C$M) p/s, C$ p/s, C$ Dilution from options and warrants 9.7

W/C 91.7 0.57 0.57

Cash from ITM warrants & options 7.0 0.04 0.04 Price Date Shares Issued

Cash from future financing 0.0 0.00 0.00 Equity Financing 0.80 Mar-15 25.0

Long term debt (92.0) (0.57) (0.57) Equity Financing 0.90 Dec-15 55.6

Total Balance Sheet Items 6.7 0.04 0.04

Corporate Adjustments Fully Financially Diluted Shares 162.1

Corporate G&A and Interest Expense (7.2) (0.04) (0.04)

Target Value 1.30 Heap leach development gold companies

Management

Top holders

Investor % Out

Van Eck Associates Corporation 5%

Buchan (Fraser Alexander) 4%

Buchan (Robert Mackay) 4%

Resource estimate

Capital markets profile 2014 PEA Canaccord Genuity Resource Estimate

Market Capitalization ($ mln) 57.5 20 Day VWAP 0.38 Base Case Resource Grade Mineable Resource Grade

Enterprise Value (CG est, $ mln) 56.7 52-week high 1.10 (Moz, Au) (g/t) (Moz, Au) (g/t)

Average Daily Trading Volume (k) 141.7 52-week low 0.35 3.59 0.85 3.65 0.86

(RPA, 2014) cut-off grade 0.24-0.31 g/t Au

Catalysts

Castle Mountian - Phase II drilling Castle Mountain Mine

Castle Mountian - Feasibility study

Castle Mountian - Early works

Castle Mountian - Financing (equity/debt/lease)

Target sensitivity to gold price & discount rate

H2/14

Q1/15

H1/15

H1/15

CMM is focused on the development of a permitted OP, predominantly HL gold project in California that was

a former producer (1992-2001, Viceroy Resources). They have progressed on a de-risking path with a

resource update (Q4/13) and a PEA (Q2/14). We anticipate further de-risking (geotech, metallurgy,

hydrology) leading to a FS (Q1/15E). Our current assumptions and forecasts drive an IRR of 15-17% and a

payback of 8 years versus a 17 year mine life based on an annual production profile of 165-170 koz/y at an

AISCe of US$1,140 requiring an upfront capex of US$110 M.

Amt Held (000's)

30-Jun-14

30-Jun-14

2-May-14

As of:

3,428

3,201

2,758

Shares Issued

Robert Buchan, Chairman - Mr. Buchan founded Kinross Gold Corp. in 1993 and served as its President

and CEO until 2005, he is also the Chairman of Allied Nevada Gold Corp. Mr. Buchan has over 35 years

of mining industry experience and received a Masters in Mining Engineering from Queens University in

1972.

Gordon A. McCreary, President CEO & Director - Mr. McCreary brings over 30 years mining experience

to Castle Mountain Mining Co. He has had roles at both major producers and Jr developers alike over

his career including CEO of Baffinland Iron Mines Corp., VP of investor relations at Kinross Gold Corp

and President of Dundee BanCorp. Mr. McCreary received a B.Sc. in Mining Engineering and an MBA

both from Queens University.

0.75 Nov-17

Avg. Strike Price Avg. Maturity

$0

$40

$80

$120

$160

$200

Ev/

oz

Au (

M&

I)

0.00

0.40

0.80

1.20

1.60

2.00

0.00

0.25

0.50

0.75

1.00

1.25

Volu

me (m

illion)S

hare

Price

, C$

volume closing price 50 Day MA

L-T US$/oz Au1,153 1,225 1,298 1,370 1,442 1,514 1,586 1,658 1,730

-20% -15% -10% -5% 0% 5% 10% 15% 20%

0% 0.63 1.34 2.06 2.77 3.49 4.20 4.91 5.63 6.34

5% - 0.34 0.80 1.27 1.72 2.17 2.63 3.08 3.53

6% - 0.22 0.65 1.08 1.50 1.91 2.33 2.74 3.16

7% - 0.12 0.52 0.91 1.30 1.69 2.07 2.45 2.84

8% - 0.03 0.41 0.77 1.13 1.49 1.84 2.20 2.55

10% - - 0.22 0.54 0.85 1.16 1.47 1.77 2.08

Dis

count ra

te

Source: Bloomberg, Thomson, Company reports and Canaccord Genuity estimates

Daily Letter | 4 22 August 2014

SITE VISIT CONFIRMS WORK PROGRAM FOR UPCOMING

FEASIBILITY STUDY (Q1/15)

We completed a site visit to the Castle Mountain Mine in San Bernardino County,

California, Figure 2, to confirm the Phase 2 work program going forward that seeks to

resolve some of the opportunities and de-risk some of the drawbacks with the various

scenarios. The Phase 2 program will inform the upcoming feasibility study due in Q1/15

and include metallurgical samples for bottle roll and importantly column testing (5 PQ

holes in zones targeted early in the mine plan including Oro Belle and JSLA) that will

incorporate new ore domains previously unexploited. We expect that their infill drill

program (30 hole, 10,000 m) will advance the geological interpretation while attempting to

lower the strip ratio via testing areas currently untested. Geotechnical test work, we

believe, will support a higher angle (>48º) which may lower strip ratio. As the planned

throughput is higher than the historic operation, a hydrology study is critical to gauge the

water capacity to meet the demand. Finally, work will also include mine infrastructure

(power, access roads), environmental, permitting and mine closure with an EPCM

schedule.

Figure 2: Castle Mountain Mine (San Bernardino County, CA) – Geology plan with structure

illustrating a strong NNE trend and localized rhyolite flow domes (pink) at Oro Belle and Big

Chief

Source: Castle Mountain Mining

Daily Letter | 5 22 August 2014

Well-funded to complete Phase 2 program

According to the company’s recently released Q2/14 financials, they ended the June

quarter with cash and working position of US$7.9 M and US$8.1 M, both of which were in

line with our estimates.

Static case scenario (6.4 Mt/y) or a hybrid thereof will form the basis of the

feasibility study (Q1/15)

After the company delivered their PEA (April 28, 2014 note) on the Castle Mountain open

pit, heap leach project, they highlighted the number of opportunities available that

required resolution and the risks that needed mitigation. The risks and opportunities are

based on three scenarios: the least risky is the static case with a small footprint (556 ha)

where plan of operations remains within the current mine permit to be mined at a rate of

6.4 Mt/y, whereas both the base case (6.4 to 8.1 Mt/y) and unconstrained case (up to 18

Mt/y) require an amendment of the current mining permit but their footprints remain

within the EIS boundary (1582 ha), Figure 3.

Figure 3: Castle Mountain Mine (San Bernardino County, CA) – Heap leach and waste facilities in the static (LHS) and the base

case (RHS) proposed in the April 2014 PEA with existing open pits and heap leach pad shown

Source: Castle Mountain Mining Co. Ltd.

We have assumed an intermediate case that ramps up from 6.1 Mt/y (2017) to 6.9-7.1 Mt/y

(2019). Our forecasts (3.6 Moz grading 0.86 g/t Au) and estimates drive an annual

production profile of 165-170 koz/y over a 17-year mine life at a C2 cash cost of

US$930/oz requiring US$110 M in upfront capital with an additional US$175 M in

expansion capital and US$260 M in life-of-mine sustaining capital (AISCe US$1130-

1140/oz).

Resurrecting the geology – Low sulphidation epithermal gold deposit hosted in

Miocene volcanics proximal to flow domes

The low sulphidation epithermal gold mineralization at Castle Mountain, Figure 2, is

hosted within a Miocene-aged (14-17 Ma) volcanic package of rhyolites and andesites that

overlay a Precambrian basement (gneiss/schist), which has been observed beneath the Oro

Belle open pit (1300 ft). The volcanics are intruded by inter-mineral rhyolite domes and

post mineral dykes of compositions ranging from dacite to rhyolite. The final recorded

event is a lahar that is best observed filling an erosion channel in the Jumbo open pit. The

Static Case Base Case

Daily Letter | 6 22 August 2014

gold mineralization (fine grained gold and electrum) occurs within and peripheral to the

rhyolite flow domes, a cross section of which is provided by the highwall of the northern

part of the Oro Belle open pit, as quartz stockwork and disseminated within brecciated and

silicified volcanics, Figure 4.

Figure 4: Oxidized, silica-adularia altered felsic volcanics that are subsequently brecciated from CMM-031 (127 m grading 3.1

g/t Au and 109 g/t Ag)

Source: Canaccord Genuity site visit and Castle Mountain Mining

Late stage northeast trending faults have been observed that dip moderately to steeply to

the southeast offsetting and segmenting the stratigraphy while not introducing a significant

amount of displacement according to the company. The intersections of the NE trending

structures with NW trending faults/fractures appear to host the majority of the

mineralization. The previously exploited centers of mineralization from north to south are

known as Jumbo South and Leslie Ann (JSLA), Jumbo and Oro Belle (including Hart

Tunnel) deposits, Figures 2 and 4.

Paucity of core drilling makes it difficult to correlate geology between sections

There are currently approximately 7 ore domains informing the resource estimate. We

note that the company geologists have spent 3-4 months re-mapping open pits and

correlating the information with the drilling logs (361,487 m in 1,762 historic holes which

were predominantly RC) while resurrecting the database. The paucity of core drilling and

the pervasive silica-clay alteration has made it difficult to correlate lithological packages

between sections. Also, the lack of multi-element geochemistry downhole makes it more

difficult to ascertain changes in the gold mineralization to depth. Their Phase 2 drill

program (30 holes, 10,000 m) should progress the knowledge base.

Opportunities to reduce strip ratio and process historic heap leach and waste

The opportunities highlighted in the April 2014 PEA include converting the tonnage

currently classified as waste, due to lack of drilling to ore, which would reduce the forecast

strip ratio (4.3:1 for static case, 6.9:1 for base case and 3.9:1 for unconstrained vs. our

estimate of 6.8:1), Figure 6. Results from the initial holes of Phase 2 program returned

above cut-off grade (0.40-0.45 g/t Au) results in areas currently categorized as waste in the

April 2014 PEA.

Daily Letter | 7 22 August 2014

Also in support of a lower potential strip ratio the pit slope angles have been modeled to be

48º in the April 2014 PEA which are shallower than the high walls observed at the Oro

Belle open pit, Figure 5. The company has planned a 30 hole, 10,000 m program (drill

arriving on site) to test this opportunity.

Figure 5: Castle Mountain Mine (San Bernardino County, CA) – Looking SSE at high wall at Oro Belle open pit illustrating high angle

(55-60º) versus 48 º proposed in April 2014 PEA (LHS); looking east at reclaimed leach pad indicating the amount of space available

for new material (centre); looking NNE at high wall of Oro Belle open pit to east ridge in background (RHS)

Source: Canaccord Genuity site visit

Also, the historic cut-off grade (0.50 g/t Au) exceeds the current cut-off grade (0.24 g/t Au)

making some of the material (40 M short tons) used to backfill the JSLA open pit, which is

also classified as waste, potentially economic. And there is an opportunity to recover

additional gold from the existing leach pad with a focus on areas early in the mine plan

that are higher grade but did not go to the small mill facility.

Figure 6: Castle Mountain Mine (San Bernardino County, CA) – Long section from southwest to northeast through the Jumbo and

Oro Belle open pits with the current topography and the US$1300 pit shell showing areas that have been undrilled and currently

categorized as waste (some outlined in red)

Source: Castle Mountain Mining and Canaccord Genuity estimates

Daily Letter | 8 22 August 2014

Metallurgy needs resolution while higher throughput rate needs more water

The company also highlighted a number of risks which include the metallurgical

performance of all the ore domains not previously mined currently classified as heap leach

feed in the April 2014 PEA (76.9% to 83.8% vs. our estimate of 77.6%). We note that the

oxidation level is down to 395-400 m within the volcanic pile of rhyolites and andesites

that overlay a Precambrian basement.

Results from three holes (CMM-012, 013 and 014) targeting areas of known mineralization

at JSLA and Jumbo pits for the metallurgical test program were released including 102.1 m

grading 7.46 g/t Au from a downhole depth of 94.2 m drilled at the JSLA pit, which is

considered to be part of the initial phase of potential mining due to the low strip ratio and

above average grade. Cyanide solubility tests on the high grade results indicate the

potential for good recoveries with the high grade samples.

Also, historically the Castle Mountain mine operated their facilities at a lower throughput

3.6 M short tons/y than the company plans to operate at (6.4 up to 8.1 Mt/y). The company

requires more water usage than the previous operation and needs to prove that enough is

available.

Permitting the last hurdles

As mentioned previously because the operation was placed on care and maintenance, it

continues to be permitted to operate at a rate of 6.4 Mt/y within the operating permit

boundary. If the company selects the static case, the lowest risk scenario from a permitting

perspective, the only remaining permits to be obtained revolve around emissions and

water. There are no assurances that the company will be able to permit areas outside of

the current operating limits but which lie within the EIS boundary and at a higher

throughput rate as is planned for the base and unconstrained cases. Hence, these

scenarios are higher risk.

Daily Letter | 9 22 August 2014

APPENDIX: IMPORTANT DISCLOSURES

Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby

certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research. Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity Inc. and therefore may not be subject to the NASD Rule 2711 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Compendium Report: If this report covers six or more subject companies, it is a compendium report and Canaccord Genuity and its affiliated companies hereby direct the reader to the specific disclosures related to the subject companies discussed in this report, which may be obtained at the following website (provided as a hyperlink if this report is being read electronically) http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx; or by sending a request to Canaccord Genuity Corp. Research, Attn: Disclosures, P.O. Box 10337 Pacific Centre, 2200-609 Granville Street, Vancouver, BC, Canada V7Y 1H2; or by sending a request by email to disclosures@canaccordgenuity.com. The reader may also obtain a copy of Canaccord Genuity’s policies and procedures regarding the dissemination of research by following the steps outlined above.

Site Visit: An analyst has visited the issuer’s material operations located in California. Partial payment was received for

the related travel costs.

Price Chart:*

Distribution of Ratings:

Global Stock Ratings (as of 3 July 2014)

Coverage Universe IB Clients Rating # % %

Buy 602 61.2% 38.2%

Speculative Buy 49 5.0% 55.1%

Hold 290 29.5% 13.1%

Sell 41 4.2% 7.3%

984* 100.0%

*Total includes stocks that are Under Review

Daily Letter | 10 22 August 2014

Canaccord Genuity

Ratings System:

BUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months. HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months. SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months. NOT RATED: Canaccord Genuity does not provide research coverage of the relevant issuer. “Risk-adjusted return” refers to the expected return in relation to the amount of risk associated with the designated investment or the relevant issuer.

Risk Qualifier: SPECULATIVE: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the stock may result in material loss.

Canaccord Genuity Research Disclosures as of 22 August 2014

Company Disclosure Castle Mountain Mining Company 1A, 2, 7

1 The relevant issuer currently is, or in the past 12 months was, a client of Canaccord Genuity or its affiliated companies. During this period, Canaccord Genuity or its affiliated companies provided the following services

to the relevant issuer:

A. investment banking services.

B. non-investment banking securities-related services.

C. non-securities related services.

2 In the past 12 months, Canaccord Genuity or its affiliated companies have received compensation for Corporate Finance/Investment Banking services from the relevant issuer.

3 In the past 12 months, Canaccord Genuity or any of its affiliated companies have been lead manager, co-lead manager or co-manager of a public offering of securities of the relevant issuer or any publicly disclosed offer of securities of the relevant issuer or in any related derivatives.

4 Canaccord Genuity acts as corporate broker for the relevant issuer and/or Canaccord Genuity or any of its affiliated companies may have an agreement with the relevant issuer relating to the provision of Corporate Finance/Investment Banking services.

5 Canaccord Genuity or one or more of its affiliated companies is a market maker or liquidity provider in the securities of the relevant issuer or in any related derivatives.

6 In the past 12 months, Canaccord Genuity, its partners, affiliated companies, officers or directors, or any authoring analyst involved in the preparation of this research has provided services to the relevant issuer for

remuneration, other than normal course investment advisory or trade execution services.

7 Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Corporate Finance/Investment Banking services from the relevant issuer in the next six

months.

8 The authoring analyst, a member of the authoring analyst’s household, or any individual directly involved in the preparation of this research, has a long position in the shares or derivatives, or has any other financial

interest in the relevant issuer, the value of which increases as the value of the underlying equity increases.

9 The authoring analyst, a member of the authoring analyst’s household, or any individual directly involved in the preparation of this research, has a short position in the shares or derivatives, or has any other financial

interest in the relevant issuer, the value of which increases as the value of the underlying equity decreases.

10 Those persons identified as the author(s) of this research, or any individual involved in the preparation of this research, have purchased/received shares in the relevant issuer prior to a public offering of those shares, and

such person’s name and details are disclosed above.

11 A partner, director, officer, employee or agent of Canaccord Genuity or its affiliated companies, or a member of his/her household, is an officer, or director, or serves as an advisor or board member of the relevant issuer and/or one of its subsidiaries, and such person’s name is disclosed above.

12 As of the month end immediately preceding the date of publication of this research, or the prior month end if publication is within 10 days following a month end, Canaccord Genuity or its affiliated companies, in the aggregate, beneficially owned 1% or more of any class of the total issued share capital or other common equity securities of the relevant issuer or held any other financial interests in the relevant issuer which are

significant in relation to the research (as disclosed above).

13 As of the month end immediately preceding the date of publication of this research, or the prior month end if publication is within 10 days following a month end, the relevant issuer owned 1% or more of any class of the

total issued share capital in Canaccord Genuity or any of its affiliated companies.

14 Other specific disclosures as described above.

“Canaccord Genuity” is the business name used by certain wholly owned subsidiaries of Canaccord Genuity

Daily Letter | 11 22 August 2014

Group Inc., including Canaccord Genuity Inc., Canaccord Genuity Limited, Canaccord Genuity Corp., and Canaccord Genuity (Australia) Limited, an affiliated company that is 50%-owned by Canaccord Genuity Group Inc.

The authoring analysts who are responsible for the preparation of this research are employed by Canaccord Genuity Corp. a Canadian broker-dealer with principal offices located in Vancouver, Calgary, Toronto, Montreal, or Canaccord Genuity Inc., a US broker-dealer with principal offices located in New York, Boston, San Francisco and Houston, or Canaccord Genuity Limited., a UK broker-dealer with principal offices located in London (UK) and Dublin (Ireland), or Canaccord Genuity (Australia) Limited, an Australian broker-dealer

with principal offices located in Sydney and Melbourne.

The authoring analysts who are responsible for the preparation of this research have received (or will receive) compensation based upon (among other factors) the Corporate Finance/Investment Banking revenues and general profits of Canaccord Genuity. However, such authoring analysts have not received, and will not receive, compensation that is directly based upon or linked to one or more specific Corporate

Finance/Investment Banking activities, or to recommendations contained in the research.

Canaccord Genuity and its affiliated companies may have a Corporate Finance/Investment Banking or other relationship with the issuer that is the subject of this research and may trade in any of the designated investments mentioned herein either for their own account or the accounts of their customers, in good faith or in the normal course of market making. Accordingly, Canaccord Genuity or their affiliated companies, principals or employees (other than the authoring analyst(s) who prepared this research) may at any time have a long or short position in any such designated investments, related designated investments or in

options, futures or other derivative instruments based thereon.

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Canaccord Genuity Inc., a US registered broker-dealer, accepts responsibility for this research and its dissemination in the United States. This research is intended for distribution in the United States only to certain US institutional investors. US clients wishing to effect transactions in any designated investment discussed should do so through a qualified salesperson of Canaccord Genuity Inc. Analysts employed outside the US, as specifically indicated elsewhere in this report, are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity Inc. and therefore may not be subject to the NASD Rule 2711 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

For United Kingdom and This research is distributed in the United Kingdom and elsewhere Europe, as third party research by

Daily Letter | 12 22 August 2014

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Additional information is available on request.

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